Corporate presentation may 2016 (baml)

Corporate PresentationMay 2016

Cautionary statements

2

ALL AMOUNTS IN U.S. DOLLARS UNLESS OTHERWISE STATED

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTSCertain information contained in this presentation, including any information relating to New Gold’s future financial or operating performance are “forward looking”. All statements in thispresentation, other than statements of historical fact, which address events, results, outcomes or developments that New Gold expects to occur are “forward-looking statements”.Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the use of forward-looking terminology such as “plans”, “expects”,“is expected”, “budget”, “scheduled”, “targeted”, “estimates”, “forecasts”, “intends”, “anticipates”, “projects”, “potential”, “believes” or variations of such words and phrases or statementsthat certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation of such terms. Forward-lookingstatements in this presentation include, among others, statements with respect to: guidance for production, total cash costs and all-in sustaining costs, and the factors contributing tothose expected results, as well as expected capital and other expenditures; planned activities for 2016 and beyond at the Company’s projects, as well as planned exploration activitiesand expenses; the expected production, costs, economics and operating parameters of the Rainy River project; targeting timing for development and other activities related to the RainyRiver project; expected sequencing for the Blackwater project; and statements with respect to the payment of the remaining $75 million from Royal Gold.

All forward-looking statements in this presentation are based on the opinions and estimates of management as of the date such statements are made and are subject to important riskfactors and uncertainties, many of which are beyond New Gold’s ability to control or predict. Certain material assumptions regarding such forward-looking statements are discussed in thispresentation, New Gold’s annual and quarterly management’s discussion and analysis (“MD&A”), its Annual Information Form and its Technical Reports filed at www.sedar.com. Inaddition to, and subject to, such assumptions discussed in more detail elsewhere, the forward-looking statements in this presentation are also subject to the following assumptions: (1)there being no significant disruptions affecting New Gold’s operations; (2) political and legal developments in jurisdictions where New Gold operates, or may in the future operate, beingconsistent with New Gold’s current expectations; (3) the accuracy of New Gold’s current mineral reserve and mineral resource estimates; (4) the exchange rate between the Canadiandollar, Australian dollar, Mexican peso and U.S. dollar being approximately consistent with current levels; (5) prices for diesel, natural gas, fuel oil, electricity and other key supplies beingapproximately consistent with current levels; (6) equipment, labour and materials costs increasing on a basis consistent with New Gold’s current expectations; (7) arrangements with FirstNations and other Aboriginal groups in respect of the Rainy River and Blackwater projects being consistent with New Gold’s current expectations; (8) all required permits, licenses andauthorizations being obtained from the relevant governments and other relevant stakeholders within the expected timelines; (9) the results of the feasibility study for the Rainy Riverproject being realized; (10) in the case of all-in sustaining cost outlooks at the Rainy River project, the assumed exchange rate being C$1.25/US$; and (11) conditions to the payment ofthe remaining $75 million from Royal Gold being satisfied mid-2016.

Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may causeactual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, withoutlimitation: significant capital requirements and the availability and management of capital resources; additional funding requirements; price volatility in the spot and forward markets formetals and other commodities; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States, Australia and Mexico;discrepancies between actual and estimated production, between actual and estimated mineral reserves and mineral resources and between actual and estimated metallurgicalrecoveries; changes in national and local government legislation in Canada, the United States, Australia and Mexico or any other country in which New Gold currently or may in the futurecarry on business; taxation; controls, regulations and political or economic developments in the countries in which New Gold does or may carry on business; the speculative nature ofmineral exploration and development, including the risks of obtaining and maintaining the validity and enforceability of the necessary licenses and permits and complying with thepermitting requirements of each jurisdiction in which New Gold operates, including, but not limited to: in Canada, obtaining the necessary permits for the Rainy River, New Afton C-zoneand Blackwater projects; and in Mexico, where Cerro San Pedro has a history of ongoing legal challenges related to our environmental authorization; the lack of certainty with respect toforeign legal systems, which may not be immune from the influence of political pressure, corruption or other factors that are inconsistent with the rule of law; the uncertainties inherent tocurrent and future legal challenges New Gold is or may become a party to; diminishing quantities or grades of reserves and resources; competition; loss of key employees; rising costs oflabour, supplies, fuel and equipment; actual results of current exploration or reclamation activities; uncertainties inherent to mining economic studies including the feasibility studies for theRainy River, New Afton C-zone and Blackwater projects; the uncertainty with respect to prevailing market conditions necessary for a positive development decision at Blackwater;changes in project parameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to mineral properties;unexpected delays and costs inherent to consulting and accommodating rights of First Nations and other Aboriginal groups; risks, uncertainties and unanticipated delays associated withobtaining and maintaining necessary licenses, permits and authorizations and complying with permitting requirements, including those associated with the environmental assessmentprocess for Blackwater. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental events andhazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insuranceto cover these risks) as well as “Risk Factors” included in New Gold’s disclosure documents filed on and available at www.sedar.com. Forward-looking statements are not guarantees offuture performance, and actual results and future events could materially differ from those anticipated in such statements. All of the forward-looking statements contained in thispresentation are qualified by these cautionary statements. New Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as aresult of new information, events or otherwise, except in accordance with applicable securities laws.

The footnotes, endnotes and appendices to this presentation contain important information. The endnotes and appendices are found at the end of the presentation.

Portfolio of assets

in top-ratedjurisdictions

Invested and experienced

team

Amonglowest-cost

producers with established track record

Peer-leading growth pipeline

A history of value creation

New Gold investment thesis

15.0 Moz gold

reserves(1), >85%

located in Canada

C$45 million

investment by

Board &

Management

2015 gold production

exceeded guidance,

2015 all-in

sustaining costs(2)

of $809/oz

~800 Koz annual

production

potential from

growth projects(3)

Share price

outperformed

S&P/TSX Global

Gold Index by >250%

since beginning

of 2009

1. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold’s news release dated February 17, 2016 titled “New Gold Announces 2015 financial results with record gold production leading to strong cash flow”. Refer to

Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources” and “Technical Information”.

2. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”.

3. Based on 325Koz annual production from Rainy River and ~485Koz annual production from Blackwater, as outlined in the feasibility studies for the projects.3

Portfolio of assets in top-rated jurisdictions

41. Source: 2015 Behre Dolbear Report – “2015 Ranking of Countries for Mining Investment”.

Blackwater

New Afton

Rainy River

Mesquite

Cerro San Pedro

Peak Mines

Mine Life: 17 years

Mine Life: 12+ years

Mine Life: 14 years

Mine Life: 7 years + residual leach

Mine Life: Final year + residual leach

Mine Life: 6+ years

#1CANADA

#3UNITED

STATES

#5MEXICO

#2AUSTRALIA

OPERATING

DEVELOPMENT

All Assets Ranked in Top 5 Global Mining Jurisdictions(1)Mineral Reserves(2)

5

Experienced and invested team

David Emerson Former Canadian Cabinet Minister

James Estey Chairman, PrairieSky Royalty

Robert Gallagher President & Chief Executive Officer

Vahan Kololian Founder, TerraNova Partners

Martyn Konig Chief Investment Officer, T Wealth Management

Randall Oliphant Executive Chairman

Ian Pearce Partner, X2 Resources

Kay Priestly Former Chief Executive Officer, Turquoise Hill Resources

Raymond Threlkeld Chairman, Newmarket Gold

Randall Oliphant

Executive Chairman

Robert Gallagher

President & Chief Executive Officer

David Schummer

Executive Vice President &

Chief Operating Officer

Brian Penny

Executive Vice President &

Chief Financial Officer

Hannes Portmann

Executive Vice President,

Business Development

Executive Management Team Board of Directors

6

2016 first quarter highlights

90,811oz – Gold $354 per oz

Total cash costs(1)

$758 per oz

All-in sustaining costs(2)

1. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”.


3. Refer to Endnote on margin under the heading “Non-GAAP Measures”. Margin per ounce is equal to realized gold price per ounce during the period less costs (being cash costs or all-in sustaining costs, as the case may be) per ounce.

Production Costs Margin

Financial Balance Sheet Rainy River

25.4mlbs – Copper

Overall construction currently

35% complete

Plant site earthworks over 90%

complete and assembly of initial

mine fleet complete

$82 million in capital

expenditures during quarter

$298 million

Cash balance at March 31, 2016

Further enhanced financial

flexibility and increased revenue

certainty with gold option

contracts

$62 million

Cash generated from operations

$0.12Cash flow per share

$852 per oz

Total cash costs margin(3)

$448 per oz

All-in sustaining costs margin(3)

2016 consolidated guidance



GOLD

PRODUCTION (Koz)

360-400• Cerro San Pedro transition

to residual leaching

COPPER

PRODUCTION (Mlbs)

81-93• Lower copper grade at

New Afton

• Peak Mines focusing on

more gold-rich ore bodies

TOTAL CASH

COSTS(1) ($/oz)

$435-$475• In line with 2015 despite

lower by-product revenues

ALL-IN SUSTAINING

COSTS(2) ($/oz)

$825-$865• Lower gross sustaining

costs allocated across a

lower gold production base

SILVER

PRODUCTION (Moz)

1.6-1.8• In line with 2015

KEY INPUT

ASSUMPTIONS

Copper $2.00/lb

Silver $14.00/oz

CDN/USD $1.40

AUD/USD $1.40

MXN/USD $18.00

8

Strong balance sheet

1. Cash and cash equivalents as at March 31, 2016.

2. $122 million of $300 million facility used for Letters of Credit at March 31, 2016.

3. Second instalment of $75 million to be paid when 60% of development capital spent and other customary conditions are satisfied.

4. Refer to Endnote on margin under the heading “Non-GAAP Measures”. Margin per ounce is equal to $1,200 per ounce gold price less mid-point of 2016E all-in sustaining costs per ounce.

$551million

Liquidity Position

$178 million

Undrawn

Credit

Facility(2)

Cash and cash

equivalents(1)

$298 million

$75 million

Remaining proceeds

Rainy River stream(3)

2016E All-in Sustaining Cost Margin(4)

Ongoing Sustaining Free

Cash Flow Generation

~$355 /oz

Reinvesting free cash flow generation

91. Refer to Endnote on margin under the heading “Non-GAAP Measures”. Margin per ounce is equal to $1,200 per ounce gold price less mid-point of 2016E all-in sustaining costs per ounce.


2016E All-in Sustaining Cost Margin(1)

~$355 /oz

+75% of expected 2016 company production

at lower all-in sustaining costs(2)

Rainy River

Opportunity to extend mine life of New Gold’s

most significant cash flow generator

New Afton C-zone

+120% of expected 2016 company production

at lower all-in sustaining costs(2)

Blackwater

Investing in longer-lived, larger-scale, lower-cost assets

10

Rainy River project summary

1. Source: Based on 2015 Behre Dolbear Report – “2015 Ranking of Countries for Mining Investment”.


Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of mineral reserves and mineral resources” and “Technical Information”. Mineral resources are exclusive of reserves.

• 17km tie-in to power and close to

regional infrastructure

• Land package over 190 square

kilometres

• Supportive local government and

community

Ontario, Canada

Gold

Reserves

3.1Moz at 1.0g/tOpen Pit

Underground

0.7Moz at 5.0g/t

3.8 Moz

#1

Gold M&I

Resources

2.0Moz at 0.8g/tOpen Pit

Underground

0.6Moz at 3.7g/t

2.6 Moz

Jurisdiction Resource Scale(2)

Secured low power rates through 2024

Rainy River overview

11

Start-up planned for mid-2017

Overall Construction

35% complete

Through April 2016

Capital Spent Project to Date

$394 million

Through March 2016

2016 Capital Spend Estimate

$500 million

$82 million spent in first quarter 2016

August 2015April 2015

April 2016November 2015

12

Rainy River project economics

1. Net present value discounted to March 31, 2016 and excludes historical project development costs. IRR and payback period inclusive of all project development costs. $100 million initial stream deposit not included as a net reduction to capital costs in

calculating net present value. Assumes second instalment of stream proceeds of $75 million paid in mid-2016.

2. First five years.

3. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. First nine years.

4. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. First nine years.

$670 /oz

ALL-IN SUSTAINING COSTS(4)

Gold Price ($/oz)

Silver Price ($/oz)

CDN/USD ($)

$1,200

$15.00

$1.40

After-tax

5% NPV ($mm) $760

IRR (%) 15.3

Payback (years) 5.2

$570 /oz

TOTAL CASH COSTS(3)

Project Economics(1)

Grade, Production and Cost Profiles

• Capital and operating costs benefit from

a depreciation of Canadian dollar

• ~80% of costs denominated in

Canadian dollars

• In addition, operating costs expected to

benefit from: proximity to infrastructure,

lower power costs, ~1.5 g/t average

head grade(2) and silver by-product

GOLD PRODUCTION (Koz)

325

• $100 per ounce change in gold price equals ~$190 million change

in after-tax NAV and 4.0% change in IRR

• $0.05 change in exchange rate equals ~$55 million change in

after-tax NAV and 1.3% change in IRR

14-year base case mine life

13

New Afton C-zone opportunity

Based on the feasibility study, during the years of full production,

average annual pre-tax cash flow of ~$200 million

• Feasibility Study outlined plan to

mine/process 25 million tonnes of

material from C-zone and potential to

extend mine life by over five years

• Added 583 thousand ounces of gold

and 430 million pounds of copper to

reserves

• Development capital of $402 million,

includes $41 million provision for

capital escalation and $88 million

for contingency

• Additional drilling planned in 2016 to

further expand C-zone

• Resource remains open at depth

and to the west

Feasibility Study Highlights

1,180m

C-zone Block Cave

VolumeOpen to West

Open at depth

Main Zone Extraction

Level

C-zone

Measured Indicated Inferred

Blackwater highlights

14

1. Development capital assumes $1.25 CDN/USD exchange rate.

2. Mineral resources are exclusive of reserves. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold’s news release dated February 17, 2016 titled “New Gold Announces 2015 financial results with record gold production leading to strong cash

flow”. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of mineral reserves and mineral resources” and “Technical Information”.

3. First nine years.

4. Gold revenue at $1,200 per ounce, silver revenue at $15 per ounce.

5. Refer to Endnote on margin under the heading “Non-GAAP Measures”. Margin per ounce equal to $1,200 per ounce less all-in sustaining costs of $590 per ounce. Margin in millions (pre-tax) equal to margin per ounce multiplied by average annual gold production of 485Koz.

2

Flagship asset already in portfolio

Gold Reserves(2)

Annual Production(3)

Sustaining Cost

Margin(5)

Regional Upside ~1,100km

Land Package

$610 /oz

Life-of-Mine

Revenue($B)(4)

Gold Silver

485Koz 1.8Moz

Gold Silver

$8.4 $0.5

8.2Moz

~$295 million

~$1,576 million

Development Capital(1)

• 2016 Plan: Complete Federal

Environmental Assessment

process by late 2016/early 2017

Strong Canadian presence



Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources” and “Technical Information”.

OPERATING

DEVELOPMENT

1.2 Moz Gold Reserve(2)

1.1 Blb Copper Reserve(2)

2015 operating margin:

$187 million

New Afton (production)


9.4 Moz Silver Reserve(2)

>190km2 land package

Rainy River (construction)


60.8 Moz Silver Reserve(2)

>1,100km2 land package

Blackwater (permitting)

Top global mining

jurisdiction(1)

>85% gold reserves(2)

in Canada

Significant Canadian dollar

exposure

~70% of cash flow

generated from Canadian

operations

~25% gold production from

Canadian assets

• >55% with Rainy River

in full production

Our Footprint in Canada

New Gold has multiple organic growth options in its portfolio

16

New Gold looking forward

Organic Growth Projects(2)

Current Portfolio

15+ years ~$620 /oz

Average Annual Gold

Production Per Asset

All-in Sustaining

Costs(3) Weighted

Average

~7 years ~100 Koz ~$845 /oz

Average

Mine Life

Investing in longer-lived, larger-scale, lower-cost assets

~400 Koz

(1)

>2x 4x ($225)/oz

1. Based on 12 years at New Afton (including C-zone), seven years at Mesquite, six years at Peak Mines and one year at Cerro San Pedro.

2. Based on 325Koz annual production from Rainy River (first nine years) and ~485Koz annual production from Blackwater (first nine years) as outlined in the feasibility studies and all-in sustaining costs for the projects as outlined in the feasibility studies.


17


Performance since beginning of 2009

1. S&P/TSX Global Gold Index includes 35 gold companies in various stages of development/production.

New Gold (NYSE MKT)

216%

Gold Price

44%

S&P/TSX Global Gold Index(1)

(37%)

17.9% 5.3% (6.3%)

Compound

Annual

Growth

Rate

• New Gold/Western Goldfields business combination

announced in March 2009

Catalysts

18

Announce strong 2015 results

Complete New Afton C-zone feasibility study

Advance Rainy River construction

Exploration drilling on C-zone

Peak Mines regional exploration

Rainy River regional exploration

Blackwater permitting

New Gold investment thesis

19

Establishing the

leading intermediate

gold company

Invested and experienced team

Portfolio of assetsin top-ratedjurisdictions

Peer-leading growth pipeline


Amonglowest-cost producers with established track record

Appendices

20

Appendices

Page

1. Corporate 21

2. New Afton 33

3. Other Operations – Mesquite, Peak Mines, Cerro San Pedro 40

4. Rainy River 43

5. Blackwater 50

6. Exploration and Reserves and Resources 52

Summary of debt

21

Undrawn Credit FacilitySenior Unsecured Notes

(April 2012)

Senior Unsecured Notes

(November 2012)

Face Value $300 million(1) $300 million $500 million

Maturity 4 years with annual

extensions permitted

April 15, 2020 November 15, 2022

Interest Rate See ‘Key features’ 7.00% 6.25%

Payable Revolving credit Semi-annually Semi-annually

Conversion price n/a n/a n/a

Current trading value n/a ~97 ~92

Key features • See Credit Facility

overview

• Senior unsecured

• Redeemable after April 15,

2016 at 103.5% down to 100%

of face after 2018

• Unlimited dividends if leverage

ratio below 2:1

• Senior unsecured

• Redeemable after November

15, 2017 at par plus half

coupon, declining ratably to par

• Unlimited dividends if leverage

ratio below 2:1

1. $122 million of $300 million facility used for Letters of Credit at March 31, 2016.

Appendix 1

22

• At current gold, silver and

copper prices, New Gold

remains below the original Net

Debt/EBITDA ratio through the

Rainy River construction period

• Considering the recent volatility

in metal prices, for additional

flexibility New Gold has

negotiated a higher Net

Debt/EBITDA covenant

Credit facility overview

Current covenant terms provide greater flexibility

to access credit facility in the event of lower metal prices

Revolving credit facility (expires August 14, 2019) $300

Letters of credit issued $122

Undrawn credit facility $178

Revolving Credit Facility at March 31, 2016 ($mm)

Prior

TermsCurrent Terms At Mar 31, 2016

EBITDA/Interest > 3.0x > 3.0x 5.0x

Maximum

Net Debt/EBITDA3.5x

Q3 2016 4.0x

Q4’16-Q2’17 4.5x

Thereafter 3.5x

2.3x

Credit Facility Financial Covenants

Appendix 1

2527

20 19

23

Mine-by-mine operating results

Total cash costs(1) ($/oz) All-in sustaining costs(2) ($/oz)



3. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. New Afton co-product cash costs: First quarter: Gold - $487/oz, Copper - $0.87/lb.

4. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. New Afton co-product all-in sustaining costs: First quarter: Gold - $631/oz, Copper - $1.12/lb.

2016 First Quarter

Gold production (Koz)

($641)

$626 $780

$934

($268)

$1,101 $1,024

$952

GOLD

PRODUCTION (oz)

90,811

TOTAL CASH

COSTS(1) ($/oz)

$354

ALL-IN SUSTAINING

COSTS(2) ($/oz)

$758

Appendix 1

Consolidated financial summary

24

Three months ended March 31

(in millions of U.S. dollars, except per share amounts) 2016 2015

Revenues $155 $169

Operating margin(2) 73 69

Adjusted net (loss)(3) nil (5)

Adjusted net (loss) per share(3) nil (0.01)

Net earnings/(loss) 27 (44)

Net earnings/(loss) per share 0.05 (0.09)

Cash generated from operations before changes

in non-cash operating working capital(4) 62 67

Cash generated from operations 62 70

1. Refer to Endnote on average realized prices under the heading “Non-GAAP Measures”.

2. Refer to Endnote on operating margin under the heading “Non-GAAP Measures”.

3. Refer to Endnote on adjusted net earnings under the heading “Non-GAAP Measures”.

4. Refer to Endnote on net cash generated from operations before changes in working capital under the heading “Non-GAAP Measures”.

GOLD ($/oz):

(2%)

COPPER ($/lb):

(17%)

SILVER ($/oz):

(12%)

Average Realized Prices(1) Financial Summary

Appendix 1

$1,229$1,206

$2.59$2.14

$16.65$14.72

Detailed operating results and assumptions

25

Appendix 1

2015A 2015A 2015A

Tonnes processed (000 tonnes) 5,097 5,400 - 5,600 19,987 13,900 - 14,300 723 580 - 600

Total tonnes mined (000 tonnes) 5,255 6,900 - 7,100 58,778 56,500 - 60,500 693 600 - 620

Strip ratio -- -- - -- 1.9 3.1 - 3.2 -- -- - --

Gold grade (g/t) 0.78 0.66 - 0.70 0.34 0.43 - 0.47 4.19 4.80 - 5.00

Silver grade (g/t) -- -- - -- -- -- - -- -- -- - --

Copper grade (%) 0.90% 0.80% - 0.84% -- -- - -- 1.00% 0.60% - 0.70%

Gold recovery(1) (%) 82.5% 79.0% - 81.0% 61.7% 93.0% 91.0% - 93.0%

Silver recovery (%) -- -- - -- -- -- - -- -- -- - --

Copper recovery (%) 84.9% 81.0% - 83.0% -- -- - -- 88.3% 87.0% - 89.0%

Production

Gold production (Koz) 105.5 90.0 - 100.0 134.9 130.0 - 140.0 89.9 80.0 - 90.0

Silver production (Koz) -- -- - -- -- -- - -- -- -- - --

Copper production (Mlbs) 86.0 75.0 - 85.0 -- -- - -- 14.0 6.0 - 8.0

Reserve Grade at December 31, 2015

Gold grade (g/t)

Silver grade (g/t)

Copper grade (%) 1.29%

2.89

6.9

Mesquite

2016E 2016E

New Afton Peak Mines

2016E

~65%

0.82% --

0.62 0.55

2.1 --

1. Represents implied recoveries.

2016 all-in sustaining costs sensitivities

26

Appendix 1

Category Copper Price Silver Price CDN/USD AUD/USD MXN/USD

Base Assumption $2.00 $14.00 $1.40 $1.40 $18.00

Sensitivity +/-$0.25 +/-$1.00 +/-$0.05 +/-$0.05 +/-$1.00

COST PER OUNCE IMPACT

New Afton +/-$210 -- +/-$55 -- --

Mesquite -- -- -- -- --

Peak Mines +/-$20 -- -- +/-$35 --

Cerro San Pedro -- +/-$20 -- -- +/-$30

New Gold Total +/-$55 +/-$5 +/-$20 +/-$10 +/-$5

NEW GOLD 2016 ALL-IN SUSTAINING COSTS(1) - KEY SENSITIVITIES


27

2016 guidance



3. Sustaining capital based on New Gold’s 2016 estimated capital expenditures including capitalized exploration and excluding expenditures related to growth-related initiatives.

4. General and administrative and other includes stock-based compensation and asset retirement obligation.

All-in

Sustaining Costs(1)

$825-$865 /oz

Total cash

costs(2)

Sustaining

capital(3)

General and

administrative

and other(4)

Sustaining

exploration

expense

$435-$475

~$280

~$80

~$30

Gold Production (Koz)

400

360

Appendix 1

28

2016 capital expenditures by category

Sustaining Capital: ~$105 million Growth Capital: ~$510 million

Mesquite

$55 million

New Afton

$38 million

Peak Mines

$12 million

Rainy River

$500 million

Blackwater

$5 million

New Afton

$5 million

Total Capital Expenditures

~$615 million

Appendix 1

29

2016 capital expenditures by category (cont’d)

Rainy River Mesquite New Afton

• $405 million – mining,

infrastructure and

process facilities

• $95 million – owners’

costs, indirects and

other

• $35 million –

capitalized stripping

• $12 million – plant and

equipment

• $8 million – complete

leach pad expansion

• $38 million – mine

development, plant and

equipment

• $5 million – C-zone

studies, C-zone

capitalized exploration

Sustaining capital

Peak Mines Blackwater

• $12 million – plant and

equipment and

capitalized exploration

• $5 million – permitting,

environmental studies

and site support

$500 million $55 million $43 million $12 million $5 million

Appendix 1

2015 corporate developments

301. Assumes receipt of second instalment of $75 million from Royal Gold. Second instalment of $75 million is to be paid when 60% of development capital spent and other customary conditions are satisfied.

~$330 million improvement in financial position

without equity issuance

• The two transactions collectively increased our liquidity position by ~$235 million and eliminated

$94 million of debt(1)

Sale of $175 million Rainy River stream to Royal Gold

Sale of 30% interest in El Morro to Goldcorp

July 2015

November 2015

Appendix 1

Stream comparison

31

1. Does note include portion of stream attributable to silver. New Gold to deliver 60% of the project's silver production up to a total of 3.1 million ounces of silver, and 30% of the project's silver production thereafter. Royal Gold to pay 25% of the average

silver spot price.

2. M&I resources are exclusive of Reserves. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold’s news release dated February 17, 2016 titled “New Gold Announces 2015 financial results with record gold

production leading to strong cash flow”. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources” and “Technical Information”.

Initial gold stream percentage 4% 6.5%

Average annual stream ounces (Koz) >16 ~16

Total gold reserves(2) (Moz) 8.9 3.8

Reserves subject to stream (Koz) 357 247

Transfer price pre-threshold ($ per ounce) $400 25% of spot gold price

Ounce threshold (Koz) 217 230

Gold stream percentage post-threshold 4% 3.25%

M&I gold resources subject to stream (exclusive) (Koz) 49 85

Inferred resources subject to stream (Koz) 258 24

Transfer price post-threshold ($ per ounce) $400 + 1% inflation factor 25% of spot gold price

El Morro

Stream Retained

Rainy River Stream Sold

(gold portion)(1)

Appendix 1

2016 total liquidity

32

$336

$75

~$135

~$45

$184 ($52)

~($500)

~($10) $213

YE2015 Cash RGLD StreamDeposit

AISC Margin Working Capital Credit Facility Interest Rainy RiverCapital

Other GrowthCapital

YE2016 TotalLiquidity

1. Assumes receipt of second instalment of $75 million from Royal Gold. Second instalment of $75 million is to be paid when 60% of development capital spent and other customary conditions are satisfied.

2. Refer to Endnote on all-in sustaining costs margin under the heading “Non-GAAP Measures”. Based on $1,200 per ounce gold price. Assumes mid-point of production guidance range and all-in sustaining costs guidance range, and commodity price

and exchange rate assumptions used for all-in sustaining costs estimates.

3. $116 million of $300 million facility used for Letters of Credit at December 31, 2015.

(2)

Indicative Cash Continuity Schedule ($mm)

(1)

(3)

Approximately

$100 change in gold price equals ~$38 million change in AISC Margin

Appendix 1

New Afton – 2016 guidance

33

($335)-($295) $95-$135

• Gold and copper production

decreases due to lower gold and

copper grades

• Higher costs due to lower by-product

revenues

• $0.25 per pound change in copper

price equals ~$210 per ounce change

in New Afton all-in sustaining costs(2)

• $0.05 change in Canadian dollar

exchange rate equals ~$55 per

ounce change in New Afton all-in

sustaining costs(2)

1. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. Co-product cash costs guidance: Gold - $505-$545 per ounce, Copper - $0.90-$1.05 per pound.

2. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. Co-product all-in sustaining costs guidance: Gold - $660-$700 per ounce, Copper - $1.20-$1.35 per pound.

• Gold production of ~85,000 ounces

and copper production of ~80 million

pounds

Gold Production (Koz) Copper Production (Mlbs)

Total Cash Costs(1) ($/oz) All-in Sustaining Costs(2) ($/oz)

90-100 75-85

Overview

Key Sensitivities

2017 Outlook

Appendix 2

$219 $246

$305

$432

$596

$793

$333$90

$396

$441

$557

$466

$607

$336

$701

$873

$1,153

$1,259

$940

Early 2010 Mid-2010 Early 2011 Mid-2011 Early 2012 Mid 2012 Mar 2016

New Afton value creation

34

VALUE CREATION ($mm)

Capital Spend ($mm)

$11million

Value Creation(2)

$940 millionCurrent NAV

Net Investment(1)

$607 million/

$333 million

$1.19 per sh.

Significant value creation realized 12-18 months prior to start-up

1. Net investment equal to total development capital of $793 million plus sustaining and growth capital of $322 million (mid-2012 to March 31, 2016) less total operating margin of $782 million (mid-2012 to March 31, 2016). Operating margin calculated as

revenue less operating expenses.

2. Value creation equal to current New Afton analyst consensus net asset value less net investment.

Achieved

commercial

production

Copper Price ($/lb)

Gold Price ($/oz)

Foreign Exchange (CDN/USD)

~$1,100

~$3.25

$1.05

$1,230

$2.25

$1.27

NAV ($mm)

Appendix 2

New Afton C-zone update

35

1,180m

C-zone Block Cave Volume

Open to West

Open at depth

Main Zone Extraction Level

C-zone

Measured

Indicated

Inferred

Appendix 2

361. M&I resources exclusive of reserves. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold’s news release dated February 17, 2016 titled “New Gold Announces 2015 financial results with record gold production

leading to strong cash flow”. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of mineral reserves and mineral resources” and “Technical Information”.

New Afton C-zone reserves and resources

Resource remains open at depth and to the west

• Added 583 thousand ounces of

gold and 430 million pounds of

copper

• C-zone originally identified through

limited deep holes drilled from

surface prior to 2007

• Since July 2012 have completed

138 holes totaling 85,585 metres

and continually updated resource

• Additional drilling planned in 2016

to further expand C-zone

Tonnes

(000s)

Gold

(g/t)

Copper

(%)

Gold

(Koz)

Copper

(Mlbs)

Proven - - - - -

Probable 25,040 0.72 0.78 583 430

Total P&P 25,040 0.72 0.78 583 430

Measured 2,230 1.05 1.21 75 59

Indicated 15,462 0.79 0.96 392 326

Total M&I 17,693 0.82 0.99 467 385

Inferred 6,856 0.48 0.54 106 87

2015 Year-End C-zone Reserves and Resources(1)

Appendix 2

New Afton C-zone – Scoping study versus feasibility study

37

2015 Scoping

Study

2016 Feasibility

Study

Total tonnes mined/processed (Mt) 21.5 25.0

Average gold grade (g/t) 0.76 0.72

Average copper grade (%) 0.80 0.78

Contained metal – Gold (Koz) 522 583

Contained metal – Copper (Mlbs) 377 430

Mine life (years) 5 5.5

Average full-year gold production (Koz) 107 108

Average full-year copper production (Mlbs) 77 81

Development capital ($mm) 349 402

Sustaining capital ($mm) 110 107

Average operating cost ($/t) 19.24 19.35

• The below table compares the 2015 scoping study to the current feasibility study results

C-zone: Scoping Study versus Feasibility Study(1)

16% increase in ore tonnes

Increase primarily driven by the

inclusion of a $41 million provision

for capital escalation given six year

development timeline

1. CDN/USD exchange rate of $1.25.

12% increase in contained gold

14% increase in contained copper

Appendix 2

New Afton C-zone indicative timeline

38

Significant capital spending to begin well after Rainy River start-up

Rainy River

start-up+ 1 year + 2 years + 3 years + 4 years + 5 years + 6 years

Targeted

milestones

FIRST PRODUCTION

DEVELOP BLOCK CAVE

PRODUCTION LEVELS

COMPLETE MAIN ACCESS RAMP

Over 70% of $402 million

development capital expected to

be spent in the final 3.5 years

• Based on market conditions and the receipt of permits, development of the C-zone could begin

after the start-up of Rainy River

Appendix 2

New Afton C-zone – Feasibility study economics

39

2015 Scoping

Study

2016 Feasibility

Study

After-tax 5% NPV ($mm) 68 84

After-tax IRR (%) 9.7 10.3

After-tax Payback (years) 3.4 3.4

Gold price ($/oz) $1,200

Copper price ($/lb) $2.75

CDN/USD ($) $1.25

C-zone: Project Economics C-zone: Key Sensitivities

Based on the feasibility study, during the years of full production,

average annual pre-tax cash flow of ~$200 million

$0.25 per pound change in copper

price ~$34 million in after-tax NPV

and 1.9% change in IRR

$100 per ounce change in gold

price ~$18 million in after-tax NPV


$0.05 change in exchange rate

~$24 million in after-tax NPV and

1.5% change in IRR

Appendix 2

Mesquite – 2016 guidance

40

$590-$630 $1,015-$1,055

• 2016 production expected to remain

in line with 2015

• Decrease in costs attributable to

continued operational efficiencies

and lower diesel prices

• Production expected to increase to

over 150,000 ounces as gold grade

should continue to increase

• Higher production is scheduled to be

coupled with lower costs



Gold Production (Koz)


130-140

Overview

2017 Outlook

Appendix 3

Peak Mines – 2016 guidance

41

$800-$840 $1,020-$1,060

• Gold production expected to remain

in line with 2015

• Copper production expected to

decrease as 2016 mine plan

intentionally focuses on mining more

gold-rich ore bodies

• $0.25 per pound change in copper

price equals ~$20 per ounce change

in Peak Mines all-in sustaining costs(2)

• $0.05 change in Australian dollar


ounce change in Peak Mines all-in

sustaining costs(2)



• Gold-copper production mix will be

optimized to maximize cash flow and

profitability for 2017

Gold Production (Koz) Copper Production (Mlbs)


80-90 6-8

Overview

Key Sensitivities

2017 Outlook

Appendix 3

Cerro San Pedro – 2016 guidance

42

$755-$795 $765-$805

• Decrease in production as mine

transitions to residual leaching

• Costs to decrease relative to 2015

• $1.00 per ounce change in silver price

equals ~$20 per ounce change in Cerro

San Pedro all-in sustaining costs(2)

• $1.00 change in Mexican peso


ounce change in Cerro San Pedro

all-in sustaining costs(2)



• Gold production from residual

leaching expected to be

approximately 25 thousand ounces

• Silver production expected to be

approximately one million ounces

Gold Production (Koz) Silver Production (Moz)


60-70 1.3-1.5

Overview

Key Sensitivities

2017 Outlook

Appendix 3

Rainy River site layout

43

Appendix 4

Rainy River plant site construction photos

44

August 2015April 2015

Appendix 4

Rainy River plant site construction photos (cont’d)

45

October 2015 November 2015

Appendix 4

Rainy River plant site construction photos (cont’d)

46

December 2015 February 2016

Appendix 4

47

Rainy River first quarter 2016 update

• Overall construction currently 35% complete

• Plant site earthworks – over 90% complete

• Concrete placement – over 50% complete

• Grinding building fully enclosed with steel

erection in progress on process building

• Installation of mechanical, piping, electrical and

instrumentation in grinding building began in

April

• Power line construction – 85% complete

• Construction of water and tailings management

facilities impacted by ground conditions

• Assembly of initial mine fleet complete

• Material moved for mine development on target

• No Lost Time incidents since New Gold acquired

the project in 2013

Precast foundations for preleach thickener

Aerial view of west side of the mill

Rainy River

Appendix 4

Rainy River 2016 capital expenditures and program

48

• Advance overall construction to 75%

• Ramp-up of pre-production mining activities

• Continued commissioning of mobile fleet

• Process plant construction

• Complete concrete and structural steel work

by mid-year

• Advance mechanical, piping, electrical and

instrumentation installation to 50%

completion

• Water management pond complete;

commence storage of water for start-up

• Transmission line complete and energized

• Advance tailings dam construction to 60%

Description ($mm)

Mining $47

On-Site Infrastructure 59

Process Plant 204

Tailings Facilities 71

Access Corridor 10

Off-Site Facilities 14

Indirect Costs 63

Owners’ Costs 32

Total $500

2016 Capital Expenditure Details 2016 Program

Appendix 4

Rainy River timeline

49

2016 2017

Q1 Q2 Q3 Q4 Q1 Q2

Targeted

milestones

Start-up planned for mid-2017

COMMISSIONING

PRE-STRIP & PIT DEVELOPMENT

TAILINGS & WATER MANAGEMENT

FACILITIES CONSTRUCTION

PROCESS PLANT CONSTRUCTION

POWER LINE CONSTRUCTION

Z

Appendix 4

Blackwater project summary

50

British Columbia,

Canada

#1Country

Ranking(1)

8.2 MozGold Reserves

1.3 MozGold M&I Resources

Complete Federal

Environmental

Assessment

process by late 2016/

early 2017

First nine years:

485 KozAnnual Gold Production

1.8 MozAnnual Silver Production

$590/ozAll-in Sustaining Costs(3)

17-yearMine Life

60.8 MozSilver Reserves

7.8 MozSilver M&I Resources

Jurisdiction and Regional Upside 2013 Feasibility Study

Significant Gold and Silver Resource(4) 2016 Plan

~$1,576 million

Development Capital(2)


2. Development capital assumes $1.25 CDN/USD exchange rate.


4. Mineral resources are exclusive of reserves. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold’s news release dated February 17, 2016 titled “New Gold Announces 2015 financial results with record gold

production leading to strong cash flow”. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of mineral reserves and mineral resources” and “Technical Information”.

~1,100 km2

Land Package

Appendix 5

51

Blackwater – Project economics

• Assumes construction begins in 2018

• $0.05 change in exchange rate equals

~$100 million change in after-tax NAV


• $100 per ounce change in gold price

equals ~$240 million change in

after-tax NAV and 2.3% change in IRR

Gold Price ($/oz)

Silver Price ($/oz)

CDN/USD ($)

$1,200

$15.00

$1.25

After-tax

5% NPV ($mm) $680

IRR (%) 11.9

Payback (years) 5.1

Appendix 5

17-year base case mine life

2016 exploration program overview

52

Rainy River

$4 million

Expensed - $2 million

New Afton

Sustaining exploration Growth exploration

$12 millionCapitalized - $2 million

Peak Mines

Capitalized - $2 million


New Afton


Appendix 6

2016 exploration program overview

53

1,180m

C-zone Block Cave Volume

Open to West

Open at depth

Main Zone Extraction Level

C-zone

Measured

Indicated

Inferred

2016 Program

New Afton

• Test potential to extend

C-zone block cave

resource to west

• Underground and surface

reconnaissance drilling to

test newly identified

satellite targets

• 10,000 metre drill program

Appendix 6

2016 exploration program overview (cont’d)

54

2016 Program

Rainy River

• Continue to advance district reconnaissance and target identification

Peak Mines

• Chronos – underground diamond drilling to expand inferred status and upgrade central gold lens to M&I status

• Anjea – surface diamond drilling to delineate resource to inferred status

• Mine Corridor – surface and underground drilling to test newly identified mine corridor targets at Burrabungie,

Dapville, Gladstone, Mt. Pleasant, Young Australian

Positive results from

initial reconnaissance

drilling2016: 10,000

metres of drilling

2016: 10,000

metres of drilling

Appendix 6

551. 2014 information per Annual Information Form dated March 27, 2015.

Reserves and resources summaryAppendix 6

Gold

Koz

Silver

Moz

Copper

Mlbs

Gold

Koz

Silver

Moz

Copper

Mlbs

Proven and Probable reserves 14,985 76 1,193 17,646 82 2,821

New Afton 1,228 4 1,112 760 3 781

Mesquite 1,492 - - 1,679 - -

Peak Mines 267 1 82 375 1 89

Cerro San Pedro 13 0 - 215 8 -

Ra iny River 3,814 9 - 3,772 9 -

Blackwater 8,170 61 - 8,170 61 -

El Morro (30%) - Sold interest during 2015 - - - 2,675 - 1,951

Measured and Indicated resources (exclusive of reserves) 6,659 34 1,065 8,094 34 1,728

Inferred resources 1,844 24 194 3,488 21 1,746

MINERAL RESERVES AND RESOURCES SUMMARY TABLE

As at December 31, 2015 As at December 31, 2014

56

Reserves and resources summary (cont’d)Appendix 6

Mineral Reserves estimate as at December 31, 2015

Tonnes

000s

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

NEW AFTON

A&B Zones

Proven - - - - - - -

Probable 36,510 0.55 2.4 0.85 646 2,765 681

C Zone

Proven - - - - - - -

Probable 25,040 0.72 1.8 0.78 583 1,447 430

Total New Afton P&P 61,550 0.62 2.1 0.82 1,228 4,212 1,112

MESQUITE

Proven 8,473 0.51 - - 139 - -

Probable 75,807 0.56 - - 1,353 - -

Total Mesquite P&P 84,280 0.55 - - 1,492 - -

PEAK MINES

Proven 1,520 3.31 7.2 1.30 162 349 44

Probable 1,360 2.42 6.7 1.29 105 291 38

Total Peak Mines P&P 2,870 2.89 6.9 1.29 267 640 82

CERRO SAN PEDRO

Proven 289 0.35 9.7 - 3 90 -

Probable 748 0.41 13.7 - 10 329 -

Total CSP P&P 1,038 0.40 12.6 - 13 419 -

Metal grade Contained metal

57


Mineral Reserves estimate as at December 31, 2015

Tonnes

000s

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

RAINY RIVER

Direct processing material

Open Pit

Proven 17,001 1.40 2.0 - 763 1,075 -

Probable 52,950 1.18 2.8 - 2,003 4,690 -

Open Pi t P&P (direct process ing) 69,952 1.23 2.6 - 2,766 5,765 -

Underground

Proven - - - - - - -

Probable 4,499 5.00 11.8 - 723 1,709 -

Underground P&P (direct process ing) 4,499 5.00 11.8 - 723 1,709 -

Stockpile material

Open Pit

Proven 5,496 0.37 1.5 - 65 259 -

Probable 23,302 0.35 2.3 - 261 1,701 -

Open Pi t P&P (s tockpi le) 28,798 0.35 2.1 - 325 1,959 -

Total P&P

Proven 22,498 1.14 1.8 - 828 1,333 -

Probable 80,752 1.15 3.1 - 2,987 8,100 -

Total Rainy River P&P 103,250 1.15 2.8 - 3,814 9,433 -

BLACKWATER


Proven 124,500 0.95 5.5 - 3,790 22,100 -

Probable 169,700 0.68 4.1 - 3,730 22,300 -

P&P (direct process ing) 294,200 0.79 4.7 - 7,520 44,400 -

Stockpile material

Proven 20,100 0.50 3.6 - 325 2,300 -

Probable 30,100 0.34 14.6 - 325 14,100 -

P&P (s tockpi le) 50,200 0.40 10.2 - 650 16,400 -

Total Blackwater P&P 344,400 0.74 5.5 - 8,170 60,800 -

Total P&P 14,985 75,504 1,193


58


Measured and Indicated Mineral Resource estimate (exclusive of Reserves) as at December 31, 2015

Tonnes

000s

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

NEW AFTON

A&B zones

Measured 16,940 0.69 2.1 0.87 377 1,134 325

Indicated 10,512 0.46 2.2 0.68 156 749 157

A&B Zone M&I 27,451 0.60 2.1 0.80 534 1,878 482

C-zone

Measured 2,230 1.05 2.2 1.21 75 161 59

Indicated 15,462 0.79 2.2 0.96 392 1,075 326

C-zone M&I 17,693 0.82 2.2 0.99 467 1,226 386

HW Lens

Measured - - - - - - -

Indicated 10,560 0.51 2.1 0.44 174 703 102

HW Lens M&I 10,560 0.51 2.1 0.44 174 703 102

Total New Afton M&I 55,704 0.66 2.1 0.79 1,175 3,809 971

MESQUITE

Measured 4,595 0.40 - - 60 - -

Indicated 50,524 0.47 - - 771 - -

Total Mesquite M&I 55,119 0.47 - - 831 - -

PEAK MINES

Measured 2,000 3.56 5.9 0.94 220 370 41

Indicated 2,100 3.20 8.9 1.14 220 610 53

Total Peak Mines M&I 4,100 3.37 7.5 1.04 440 980 94

CERRO SAN PEDRO

Measured - - - - - - -

Indicated - - - - - - -

Total CSP M&I - - - - - - -


59


Measured and Indicated Mineral Resource estimate (exclusive of Reserves) as at December 31, 2015

Tonnes

000s

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

RAINY RIVER


Open Pit

Measured 3,294 1.19 1.8 - 127 185 -

Indicated 37,530 1.15 3.5 - 1,391 4,189 -

Open Pi t M&I (direct process ing) 40,824 1.15 3.3 - 1,518 4,374 -

Underground

Measured - - - - - - -

Indicated 4,834 3.74 12.6 - 581 1,952 -

Underground M&I (direct process ing) 4,834 3.74 12.6 - 581 1,952 -

Stockpile material

Open Pit

Measured 1,244 0.35 1.3 - 14 51 -

Indicated 36,360 0.43 2.5 - 500 2,942 -

Open Pi t M&I (s tockpi le) 37,604 0.43 2.5 - 514 2,993 -

Total M&I

Measured 4,538 0.97 1.6 - 141 236 -

Indicated 78,724 0.98 3.6 - 2,472 9,083 -

Total Rainy River M&I 83,262 0.98 3.5 - 2,613 9,319 -

BLACKWATER


Measured 289 1.39 6.6 - 13 61 -

Indicated 41,128 0.86 4.5 - 1,135 5,950 -

M&I (direct process ing) 41,417 0.86 4.5 - 1,147 6,012 -

Stockpile material

Measured - - - - - - -

Indicated 14,070 0.32 4.0 - 144 1,809 -

M&I (s tockpi le) 14,070 0.32 4.0 - 144 1,809 -

Total Blackwater M&I 55,487 0.72 4.4 - 1,292 7,821 -

CAPOOSE

Indicated 17,671 0.54 22.1 - 308 12,562 -

Total M&I 6,659 34,491 1,065


60


Inferred Resource estimate as at December 31, 2015

Tonnes

000s

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

NEW AFTON

A&B-zones 6,875 0.35 1.3 0.36 77 296 55

C-zone 6,856 0.48 1.5 0.54 106 328 87

HW Lens 969 0.69 1.5 0.46 21 45 10

Total New Afton Inferred 14,702 0.43 1.4 0.45 205 672 145

MESQUITE 4,858 0.37 - - 59 - -

PEAK MINES 2,000 3.14 10.9 1.13 200 690 49

CERRO SAN PEDRO - - - - - - -

RAINY RIVER

Direct processing

Open Pit 10,699 0.84 1.8 - 289 621 -

Underground 2,591 4.21 7.8 - 351 646 -

Total Direct Process ing 13,290 1.50 3.0 - 640 1,267 -

Stockpile

Open Pit 9,876 0.36 1.1 - 113 339 -

Total Rainy River Inferred 23,166 1.01 2.2 - 753 1,606 -

BLACKWATER

Direct process ing 10,378 0.80 3.7 - 266 1,235 -

Stockpi le 2,493 0.33 3.1 - 27 248 -

Total Blackwater Inferred 12,871 0.71 3.6 - 293 1,483 -

CAPOOSE 23,591 0.44 26.3 - 334 19,948 -

Total Inferred 1,844 24,399 194


61


New Gold Interest (4%)

Tonnes

000s

Gold

g/t

Copper

%

Gold

Koz

Copper

Mlbs

Gold

Koz

Mineral Reserves

Proven 321,814 0.56 0.55 5,820 3,877 233

Probable 277,240 0.35 0.43 3,097 2,626 124

Total P&P 599,054 0.46 0.49 8,917 6,503 357

Mineral Resources

Measured 19,790 0.53 0.51 340 223 14

Indicated 72,563 0.38 0.39 880 630 35

Total M&I 92,353 0.41 0.42 1,220 853 49

Inferred 678,066 0.30 0.35 6,453 5,190 258


El Morro Property Mineral Reserves & Resources as at December 31, 2015

(Goldcorp 50% - Teck 50% Joint Venture)

The table below sets out the Mineral Reserve and Mineral Resource estimates, on a 100% basis, for the El Morro project, as well as New Gold’s 4%

stream interest. The El Morro project, together with the Relincho project in Chile, is now held by a 50/50 joint venture between Goldcorp and Teck

Resources Limited. The following information is based on information available to the Company as of February 17, 2016.

62

1. New Gold’s Mineral Reserves and the El Morro Mineral Reserves and Resources have been estimated in accordance with the Canadian Institute

of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards for Mineral Resources and Mineral Reserves, which are incorporated by reference

in National Instrument 43-101 (“NI 43-101”).

2. Year-end 2015 Mineral Reserves and Mineral Resources have been estimated based on the following metal prices and foreign exchange rate

criteria:

Lower cut-offs for the company’s Mineral Reserves and Mineral Resources are outlined in the following table:

Reserves and resources notesAppendix 6

Gold ($/oz) Silver ($/oz) Copper ($/lb) CAD/USD AUD/USD MXN/USD

Mineral Reserves $1,200 $15.00 $2.75 $1.25 $1.35 $17.00

Mineral Resources $1,300 $17.00 $3.00 $1.25 $1.35 $17.00

Reserves Resources

Lower Cut-Off Lower Cut-Off

New Afton Main Zone – B1 Block: C$ 21.00/t

Main Zone – B2 Block: C$ 33.00/t

B3 Block & C-Zone: C$ 24.00/t

Mesquite Oxide & Trans itional : 0.21 g/t Au (0.006 oz/t Au) 0.12 g/t Au (0.0035 oz/t Au)

Sulphide: 0.41 g/t Au (0.012 oz/t Au) 0.24 g/t Au (0.007 oz/t Au)

Peak Mines Al l ore types: A$ 110/t to A$ 156/t A$ 113/t to A$ 150/t

Cerro San Pedro Al l ore types: US$ 6.00/t NA

Rainy River O/P direct process ing: 0.30 – 0.60 g/t AuEq 0.30 – 0.45 g/t AuEq

O/P stockpi le: 0.30 g/t AuEq 0.30 g/t AuEq

U/G direct process ing: 3.50 g/t AuEg 2.50 g/t AuEq

Blackwater O/P direct process ing: 0.26 – 0.38 g/t AuEq Al l Resources : 0.40% AuEq

Mineral Property

Al l Resources : 0.40% CuEq

63

3. Year-End 2015 El Morro Mineral Reserves and Mineral Resources have been estimated using $1,200/oz gold, US$2.75/lb copper, and 550

Chilean Pesos to one United States dollar, and a lower cut-off of 0.20% CuEq.

4. New Gold reports its Measured and Indicated Mineral Resources exclusive of Mineral Reserves. Measured and Indicated Mineral Resources

that are not Mineral Reserves do not have demonstrated economic viability. Inferred Mineral Resources have a greater amount of uncertainty as

to their existence, economic and legal feasibility, do not have demonstrated economic viability, and are likewise exclusive of Mineral Reserves.

Numbers may not add due to rounding.

5. Mineral resources are classified as Measured, Indicated and Inferred based on relative levels of confidence in their estimation and on technical

and economic parameters consistent with the methods most suitable for their potential commercial exploitation. Where different mining and/or

processing methods might be applied to different portions of a Mineral Resource, the designators ‘open pit’ and ‘underground’ have been applied

to indicate envisioned mining method. Likewise the designators ‘oxide’, ‘non-oxide’ and ‘sulphide’ have been applied to indicate the type of

mineralization as it relates to the appropriate mineral processing method and expected payable metal recoveries, and the designators ‘direct

processing’ and stockpile’ have been applied to differentiate between material envisioned to be mined and processed directly and material to be

mined and stored in a stockpile for future processing. Mineral Reserves and Mineral Resources may be materially affected by environmental,

permitting, legal, title, taxation, sociopolitical, marketing and other risks and relevant issues. Additional details regarding Mineral Reserve and

Mineral Resource estimation, classification, reporting parameters, key assumptions and associated risks for each of New Gold’s material

properties are provided in the respective NI 43-101 Technical Reports which are available at www.sedar.com.

6. Rainy River Project: In addition to the criteria described above, Mineral Reserves and Mineral Resources for the Rainy River project are

reported according to the following additional criteria: Underground mineral reserves are reported peripheral to and/or below the open pit mineral

reserve pit shell which has been designed and optimized based on an $800/oz gold price. Underground Mineral Resources are reported below a

larger mineral resource pit shell which has been defined based on a $1300/oz gold price. Approximately 44% of the gold metal content defined as

underground mineral reserves derives from material located between the mineral reserve pit shell and the mineral resource pit shell; the

remaining 56% of mineral reserves derives from material located below the mineral resource pit shell. Open pit mineral resources exclude

material reported as underground mineral reserves.

7. All Mineral Resource and Mineral Reserve estimates for New Gold’s properties and projects are effective December 31, 2015.

8. Qualified Person: The preparation of New Gold's Mineral Reserve and Mineral Resource estimates has been done by Qualified Persons as

defined under NI 43-101, under the oversight and review of Mr. Mark A. Petersen, a Qualified Person under NI 43-101.

Reserves and resources notes (cont’d)Appendix 6

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2016 guidance assumptions

Spot:

2016

Silver price ($/oz) 14.00

Copper price ($/lb) 2.00

AUD/USD 1.40

CDN/USD 1.40

MXN/USD 18.00

Spot

Gold price ($/oz) 1,285

Silver price ($/oz) 17.40

Copper price ($/lb) 2.20

AUD/USD 1.36

CDN/USD 1.29

MXN/USD 17.90

Commodity price/foreign exchange assumptionsAppendix 6

Endnotes

65

CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MINERAL RESERVES AND MINERAL RESOURCES

Information concerning the properties and operations of New Gold has been prepared in accordance with Canadian standards under applicable Canadian securities laws, and may not be

comparable to similar information for United States companies. The terms “Mineral Resource”, “Measured Mineral Resource”, “Indicated Mineral Resource” and “Inferred Mineral Resource”

used in this presentation are Canadian mining terms as defined in the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards for Mineral Resources and Mineral

Reserves adopted by CIM Council on May 10, 2014 and incorporated by reference in National Instrument 43-101. While the terms “Mineral Resource”, “Measured Mineral Resource”,

“Indicated Mineral Resource” and “Inferred Mineral Resource” are recognized and required by Canadian securities regulations, they are not defined terms under standards of the United States

Securities and Exchange Commission. As such, certain information contained in this presentation concerning descriptions of mineralization and mineral resources under Canadian standards

is not comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the United States Securities and Exchange

Commission.

An “Inferred Mineral Resource” has a great amount of uncertainty as to its existence and as to its economic and legal feasibility. Under Canadian rules, estimates of inferred mineral resources

may not form the basis of feasibility or pre-feasibility studies. It cannot be assumed that all or any part of an “Inferred Mineral Resource” will ever be upgraded to a higher confidence category.

Readers are cautioned not to assume that all or any part of an “Inferred Mineral Resource” exists or is economically or legally mineable.

Under United States standards, mineralization may not be classified as a “Reserve” unless the determination has been made that the mineralization could be economically and legally

produced or extracted at the time the reserve estimation is made. Readers are cautioned not to assume that all or any part of the measured or indicated mineral resources will ever be

converted into mineral reserves. In addition, the definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” under CIM standards differ in certain respects from the standards of

the United States Securities and Exchange Commission.

TECHNICAL INFORMATION

The scientific and technical information in this presentation has been reviewed and approved by Mark A. Petersen, Vice President, Exploration of New Gold. Mr. Petersen is an AIPG Certified

Professional Geologist and a “Qualified Person” as defined under National Instrument 43-101.

For additional technical information on New Gold’s material properties, including a detailed breakdown of Mineral Reserves and Mineral Resources by category, as well as key assumptions,

parameters and risks, refer to New Gold’s Annual Information Form for the year ended December 31, 2014.

Endnotes (cont’d)

66

NON-GAAP MEASURES

(1) ALL-IN SUSTAINING COSTS

“All-in sustaining costs” per ounce is a non-GAAP financial measure. Consistent with guidance announced in 2013 by the World Gold Council, an association of various gold mining companies

from around the world of which New Gold is a member, New Gold defines “all-in sustaining costs” per ounce as the sum of total cash costs, capital expenditures that are sustaining in nature,

corporate general and administrative costs, capitalized and expensed exploration that is sustaining in nature and environmental reclamation costs, all divided by the ounces of gold sold to

arrive at a per ounce figure. New Gold believes this non-GAAP financial measure provides further transparency into costs associated with producing gold and assists analysts, investors and

other stakeholders of the company in assessing the company’s operating performance, its ability to generate free cash flow from current operations and its overall value. This data is furnished

to provide additional information and is a non-GAAP financial measure.

All-in sustaining costs presented do not have a standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies. It should not be

considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS and is not necessarily indicative of cash flow from operations under IFRS or operating

costs presented under IFRS. Further details regarding historical all-in sustaining costs and a reconciliation to the nearest IFRS measures are provided below and in the MD&A accompanying

New Gold’s financial statements filed from time to time on www.sedar.com.

(2) TOTAL CASH COSTS

“Total cash costs” per ounce is a non-GAAP financial measure which is calculated in accordance with a standard developed by The Gold Institute, a worldwide association of suppliers of gold

and gold products that ceased operations in 2002. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measures of other

companies. New Gold reports total cash costs on a sales basis. The company believes that certain investors use this information to evaluate the company’s performance and ability to

generate liquidity through operating cash flow to fund future capital expenditures and working capital needs. This measure, along with sales, is considered to be a key indicator of the

company’s ability to generate operating earnings and cash flow from its mining operations. Total cash costs include mine site operating costs such as mining, processing and administration

costs, royalties, production taxes, and realized gains and losses on fuel contracts, but are exclusive of amortization, reclamation, capital and exploration costs and net of by-product sales.

Total cash costs are then divided by ounces of gold sold to arrive at a per ounce figure. Co-product cash costs remove the impact of other metal sales that are produced as a by-product of

gold production and apportion the cash costs to each metal produced on a percentage of revenue basis, and subsequently divides the amount by the total ounces of gold or silver or pounds of

copper sold, as the case may be, to arrive at per ounce or per pound figures. Unless otherwise indicated, all total cash cost information in this presentation is net of by-product sales. This data

is furnished to provide additional information and is a non-GAAP financial measure. Total cash costs and co-product cash costs presented do not have a standardized meaning under IFRS

and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared in

accordance with IFRS and is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under GAAP. Further details regarding historical total cash costs

and a reconciliation to the nearest IFRS measures are provided below and in the MD&A accompanying New Gold’s financial statements filed from time to time on www.sedar.com.

(3) AVERAGE REALIZED PRICE

“Average realized price per ounce or pound sold” is a non-GAAP financial measure with no standard meaning under IFRS. Management uses this measure to better understand the price

realized in each reporting period for gold, silver, and copper sales. Average realized price includes realized gains and losses from gold hedge settlements up until May 15, 2013 but excludes

from revenues unrealized gains and losses on non-hedged derivative contracts and the revenue reduction related to the non-cash accounting charge as the loss incurred on the monetization

of the company’s legacy hedge position is realized into income over the original term of the hedge contract. Average realized price is intended to provide additional information only and does

not have any standardized definition under IFRS; it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies

may calculate this measure differently and this measure is unlikely to be comparable to similar measures presented by other companies.

Endnotes (cont’d)

67

(4) ADJUSTED NET (LOSS)/EARNINGS

“Adjusted net (loss)/earnings” and “adjusted net (loss)/earnings per share” are non-GAAP financial measures. Net (loss)/earnings have been adjusted and tax affected for the group of costs in

“Other gains and losses” on the condensed consolidated income statement. The adjusted entries are also impacted for tax to the extent that the underlying entries are impacted for tax in the

unadjusted net (loss)/earnings from continuing operations. The company uses this measure for its own internal purposes. Management’s internal budgets and forecasts and public guidance

do not reflect fair value changes on senior notes and non-hedged derivatives, foreign currency translation and fair value through profit or loss and financial asset gains/losses. Consequently,

the presentation of adjusted net earnings and adjusted net earnings per share enables investors and analysts to better understand the underlying operating performance of our core mining

business through the eyes of management. Management periodically evaluates the components of adjusted net earnings and adjusted net earnings per share based on an internal

assessment of performance measures that are useful for evaluating the operating performance of our business and a review of the non-GAAP measures used by mining industry analysts and

other mining companies. Adjusted net (loss)/earnings and adjusted net (loss)/earnings per share are intended to provide additional information only and do not have any standardized meaning

under IFRS and may not be comparable to similar measures presented by other companies. They should not be considered in isolation or as a substitute for measures of performance

prepared in accordance with IFRS. The measures are not necessarily indicative of operating profit or cash flows from operations as determined under IFRS.

(5) OPERATING MARGIN

“Operating margin” is a non-GAAP financial measure with no standard meaning under IFRS, which management uses to evaluate the Company’s aggregated and mine-by-mine contribution to

net earnings before non-cash depreciation and depletion charges.

(6) CASH GENERATED FROM OPERATIONS BEFORE CHANGES IN NON-CASH OPERATING WORKING CAPITAL

“Cash generated from operations before changes in working capital” and “cash generated from operations before changes in working capital per share” are non-GAAP financial measures with

no standard meaning under IFRS, which exclude changes in non-cash operating working capital. Management uses this measure to evaluate the Company’s ability to generate cash from its

operations before temporary working capital changes.

Contact information

68

Investor Relations

Hannes Portmann

Executive Vice President, Business Development

416-324-6014

[email protected]