New Gold Inc - A Clear Direction - November 2009

www.newgold.com TSX/NYSE AMEX US: NGD

Delivering on GrowthNovember 2009


All monetary amounts in U.S. dollars unless otherwise stated

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This presentation contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within

the meaning of applicable Canadian securities legislation. Forward-looking statements, which are all statements other than statements of historical fact, include, but are not limited to,

statements with respect to the future price of gold, silver and copper the estimation of mineral reserves and mineral resources, the realization of mineral reserve estimates, the timing and

amount of estimated future production, costs of production, capital expenditures, financing requirements, costs and timing of the development of new and existing deposits,

implementation, timing and success of drilling and other exploration activities, permitting time lines, the completion and success of acquisitions, currency exchange rate fluctuations,

requirements for additional capital, government disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of

forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or

“believes”, or variations of such words (including negative variations) and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or

“be achieved”. All forward-looking statements and forward-looking information is based on reasonable assumptions that have been made by New Gold as at the date such statements are

made. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or

achievements of New Gold to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the impact of general business and

economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, that New Gold and

Western Goldfields Inc. (“Western”) will be able to realize the synergies from the business combination completed June 1, 2009; there may be difficulties in integrating the operations and

personnel of the New Gold and Western; New Gold is subject to significant capital requirements; fluctuations in the international currency markets and in the rates of exchange of the

currencies of Brazil, Canada, the United States, Australia, Mexico and Chile; price volatility in the spot and forward markets for commodities; impact of any hedging activities, including

margin limits and margin calls; discrepancies between actual and estimated production, between actual and estimated reserves and resources and between actual estimated metallurgical

reserves; changes in national and local government legislation in Brazil, Canada, the United States, Australia, Mexico and Chile; or any other country in which New Gold currently or may

in the future carry 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 of mineral exploration and development, including the risks of obtaining necessary licenses and permits; diminishing quantities or grades of reserves; competition; loss of key

employees; additional funding requirements; actual results of current exploration or reclamation activities; changes in project parameters as plans continue to be refined; accidents; labour

disputes; and defective title to mineral claims or property or contests over claims to mineral properties. In addition, there are risks and hazards associated with the business of mineral

exploration, development, and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and

risk of inadequate insurance or inability to obtain insurance, to cover these risks) as well as those factors discussed in the section entitled “Risk Factors” in New Gold’s annual information

form and short form prospectus filed on SEDAR. Although New Gold has attempted to identify important factors that could cause actual results to differ materially from those contained in

forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will

prove to be accurate and you should not place undue reliance on forward-looking statements. New Gold does not undertake to update any forward-looking statements that are included

herein, except in accordance with applicable securities laws.

2

Cautionary Statement


Cautionary Statement cont’d

CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED 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 accordance with NI 43-101 under guidelines set out in the Canadian Institute of Mining, Metallurgy and

Petroleum (“CIM”) Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council on December 11, 2005. While the terms “Mineral Resource”, “Measured Mineral

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

States Securities and Exchange Commission. 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 calculation is made. As such, certain information contained in this presentation concerning

descriptions of mineralization and 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. It cannot be assumed that all or any part of an “Inferred Mineral Resource” will ever be upgraded to a higher category. Under Canadian rules, estimates of

Inferred Mineral Resources may not form the basis of feasibility or other economic studies. Readers are cautioned not to assume that all or any part of Measured or Indicated Resources

will ever be converted into Mineral Reserves. Readers are also cautioned not to assume that all or any part of an “Inferred Mineral Resource” exists, or is economically or legally mineable.

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.

TOTAL CASH COST

“Total cash cost” figures are calculated in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and

included leading North American gold producers. The Gold Institute ceased operations in 2002, but the standard is the accepted standard of reporting cash cost of production in North

America. 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 cost on a sales basis. Total cash cost includes mine site operating costs such as mining, processing, administration, royalties and production taxes, but is exclusive of amortization,

reclamation, capital and exploration costs. Total cash cost is reduced by any by-product revenue and is then divided by ounces sold to arrive at the total by-product cash cost of sales.

The measure, along with sales, is considered to be a key indicator of a company’s ability to generate operating earnings and cash flow from its mining operations. This data is furnished to

provide additional information and is a non-GAAP measure and does not have any standardized meaning prescribed by Canadian GAAP. It should not be considered in isolation as a

substitute for measures of performance prepared in accordance with Canadian GAAP and is not necessarily indicative of operating costs presented under Canadian GAAP. The

calculation of “Cash Cost” is consistent with Western’s prior disclosures of “Cost of Sales” ; Western does not have by-product credits.

3


Executing on our Strategy

4

Disciplined Growth

• Completed 3-way business

combination June 2008

• Completed combination with

Western Goldfields June 2009

• Pursue additional growth

opportunities

Enhancing Value

• El Morro – strategic asset

• Asset Backed Notes

• Amapari strategic review

• New Afton development on

schedule for production in 2012

Operational Execution

• 16% increase in production Q3/09

versus Q3/08

• 17% decrease in cash cost

Q3/09 versus Q3/08

Maintaining a Strong Financial

Position

• $243 million in cash at Sept. 30/09

• $23 million in earnings from mine

operations in Q3/09

• Strongest cash flow from

operations expected in Q4/09


Management & Board of Directors

5

EXECUTIVE MANAGEMENT TEAM

BOARD OF DIRECTORS

Randall Oliphant, Executive Chairman

Robert Gallagher, President and Chief Executive Officer

Brian Penny, Executive VP and Chief Financial Officer

James Currie, Executive VP and Chief Operating Officer

James Estey, Director

Robert Gallagher, CEO & Director

Vahan Kololian, Director

Martyn Konig, Director

Pierre Lassonde, Director

Craig Nelsen, Director

Randall Oliphant, Executive Chairman

Ian Telfer, Director

Raymond Threlkeld, Director


Capitalization and Liquidity

6

Basic Shares Outstanding (millions) 387

FDITM Shares Outstanding (millions) 405

TSX Share Price – November 16, 2009 $4.47

Market Capitalization (C$ millions) $1,730

Cash (US$ millions)1 $243

Long-term Investments (Asset Backed Notes US$ millions)2 $88

Debt (US$ millions)3 $250

Insider Ownership (million shares) 16

1. Cash position as of September 30, 2009.

2. Represents Fair Value of Asset Backed Notes investment at September 30, 2009. Face value of Asset Backed Notes investment is $149 million.

3. Debt position as of September 30, 2009, adjusted for October 2009 term loan repayment which includes $164.7 million in senior secured notes, $36.0 million in convertible debentures, $45.8 million in project financing for the Mesquite mine, and $3.6 million in the El Morro project funding loan. See “Debt and Financing Notes” for details in the appendix on page 32.


Q3 2009 Highlights

EARNINGS FROM MINE OPERATIONS (MILLIONS)

GOLD SALES (000s OUNCES)

7

TOTAL CASH COST PER OUNCE (1)

1. Refer to Cautionary Statements regarding Forward Looking Statements and Total Cash Cost.

17%

NET EARNINGS(MILLIONS)

60

65

70

75

80

Q3 2008 Q3 2009

16%

($200)

($150)

($100)

($50)

$0

$50

Q3 2008 Q3 2009

($148.9)

$4.1

$0

$200

$400

$600

Q3 2008 Q3 2009

17%

$0

$5

$10

$15

$20

$25

Q3 2008 Q3 2009

67%


Q3 and Year-to-Date Production Highlights

GOLD PRODUCTION (000s OUNCES)

8

606570758085

Q3 2008

Q3 2009

16%

0

100

200

300

400

Q3 2008

Q3 2009

21%

0

1

2

3

4

Q3 2008

Q3 2009

50%

SILVER PRODUCTION (000s OUNCES)

COPPER PRODUCTION (MILLION POUNDS)

GOLD PRODUCTION (000s OUNCES)

0

50

100

150

200

YTD 2008

YTD 2009

23%

0

500

1,000

1,500

YTD 2008

YTD 2009

320%

0

5

10

15

YTD 2008

YTD 2009

102%

SILVER PRODUCTION (000s OUNCES)

COPPER PRODUCTION (MILLION POUNDS)

Q3 2009 vs. Q3 2008 YTD 2009 vs. YTD 2009


GLOBALLY DIVERSIFIED IN MINING-FRIENDLY JURISDICTIONS

• 12.1 million ounce M&I(1) gold resource

• 7.4 million ounce gold reserve(4)

• Diversified gold production base

• Politically stable jurisdictions

9

1 Measured and indicated mineral resources are inclusive of mineral reserves. See technical reports, Annual Information Form, Form 10-K, and other filings made on SEDAR by each of New Gold and Western for detailed information with regard to the assumptions, parameters and other information relevant to quantities discussed above. 2P refers to proven and probable reserves, M&I refers to measured and indicated resources

2 Represents Mesquite‟s December 31, 2008 reserves and resources

3 El Morro Project‟s reserves and resources reflect New Gold‟s 30% interest

4 Proven and probable mineral reserves

Asset Overview

Producing Mines

Development Projects

Undergoing Strategic Review

New Afton

Canada

(000s oz Au)

2P 1,028

M&I(1)

1,630

Inferred 225

Mesquite(2)

United States

(000s oz Au)

2P 2,574

M&I(1)

4,101

Inferred 64

Cerro San Pedro

Mexico

(000s oz Au)

2P 1,266

M&I(1)

1,691

Inferred 25

Amapari

Brazil

(000s oz Au)

M&I 1,136

Inferred 1,045

El Morro(3)

Chile

(000s oz Au)

2P 2,013

M&I(1)

2,659

Inferred 110

Peak

Australia

(000s oz Au)

2P 514

M&I(1)

849

Inferred 388


Executing with Upside – Mesquite

10

Proven Execution

• Completed positive feasibility

study in 2006

• Mine brought into

production on time and on

budget in 2008

Current Enhancements

• Production ramped up in

September 2009, expected to

continue on this trend in Q4/09

and going forward

• Declining total cash cost over

the next two years

Future Upside

• Potential to increase

mining rate – add 5k to

10koz of production per

year

• 1M oz sulfide resource below

current pit – exploring

processing alternatives

Location United States

Mine Type Open Pit

Reserves1,4 Gold (m oz) 2.6

Resources1,2,5 Gold (m oz) 4.1

Estimate Mine Life3 13 years

Gold Production ‟09 Guidance oz6 140k-150k

Total Cash Cost/oz ‟09 Guidance6,7 $530-$540

1 Represents December 31, 2008 reserves and resources.2 Mineral resources are inclusive of mineral reserves. 3 11 years of production and 2 years of residual leaching.4 Mesquite Mine mineral reserves have been calculated based on a gold price of US $500/oz. Refer to Reserves Notes.5 Mesquite Mine mineral resources have been estimated based on a gold price of US $650/oz. Refer to Resources Notes.6 Mesquite production and total cash cost guidance for 2009 are for the full year.7 Refer to Cautionary Statements regarding Forward Looking Statements and Total Cash Cost.


Executing with Upside – Cerro San Pedro

11

Proven Execution

• Achieved full production in

2008

• Received award as safest

mine of its size in Mexico for

2007 and 2008

• Attained ISO: 14001

environmental certification in

2008

Current Enhancement

• Both silver grades and

recovery continue to improve

• 68% increase in tonnes of ore

mined in comparison to

Q3/2008

• Currently tracking below 2009

cash cost guidance

Future Upside

• Completed sulfide

exploration program with 30

drill holes; results expected

to be released by Q1/10

Location Mexico

Mine Type Open Pit

Reserves1,3Gold (m oz) 1.3

Silver (m oz) 51

Resources2,3,4Gold (m oz) 1.7

Silver (m oz) 63

Estimated Mine Life ~ 9 years

Gold Production „09 Guidance oz 90k-100k

Total Cash Cost/oz „09 Guidance5 $550-$570

1 Cerro San Pedro mineral reserves have been calculated based on a gold price of $750/oz, a silver price of US$10.00/oz and a lower NSR cut-off of US$2.64/t. Refer to Reserves Notes.2 Cerro San Pedro mineral resources have been estimated based on a gold price of US$1000/oz, a silver price of US$21/oz and a lower grade cut-off of 0.2 g/t gold and are constrained within an

economically constrained “mineral resource pit” that uses the same cost and metal recovery parameters used to define mineral reserves as of December 31, 2008. Refer to Resources Notes.3 Reported as of December 31, 20084 Mineral resources are inclusive of mineral reserves5 Cash costs guidance for 2009 have been calculated based on a silver price of US$14.00/lb. Refer to Cautionary Statements regarding Forward Looking Statements and Total Cash Cost


Executing with Upside – Peak Mines

12

Proven Execution

• In operation since 1992

– history of success

• Proven ability to

replace reserves –

produced two millionth

ounce in 2008 after

starting with one million

ounce in reserves

Current Enhancement

• Successfully transitioned to

higher gold grade

Perseverance Zone D ore

body

• Benefitting from increased

copper production

• Currently tracking below

2009 cash cost guidance

Future Upside

• Potential for additional

future targets around

Peak’s currently

existing underground

ore body and in the

surrounding region

Location Australia

Mine Type Underground

Reserves1,3Gold (k oz) 514

Copper (m lbs) 51

Resources2,3,4Gold (k oz) 849

Copper (m lbs) 136

Estimated Mine Life ~ 8 years

Gold Production „09 Guidance oz 90k-100k

Total Cash Cost/oz „09 Guidance5 $370-$390

1 Peak Mines mineral reserves have been calculated based on a gold price of US$750/oz, a copper price of US$2.00/lb and variable lower NSR cut-offs ranging from AUD$112/t to AUD$130/t that vary between individual mines and their proximity to the Peak operation processing facility.. Refer to Reserves Notes.

2 Peak Mines mineral resources have been estimated based on a gold price of US$750/oz, a copper price of US$2.00/lb and variable lower NSR cut-offs ranging from AUD$85/t to AUD$95/t that vary between individual mines and their proximity to the Peak operation processing facility.. Refer to Resources Notes.

3 Reported as of December 31, 2008.4 Mineral resources are inclusive of mineral reserves.5 Cash costs guidance for 2009 have been calculated based on a copper price of US$2.00/lb. Refer to Cautionary Statements regarding Forward Looking Statements and Total Cash Cost.


Executing with Upside – New Afton

13

Proven Execution

• Delivered positive feasibility

study

• Long lead time equipment

ordered and in place

• Surface infrastructure partially

in place with mill building

exterior completed

Current Enhancement

• Achieved break through of the

conveyor decline and main

surface decline in Q3/09

• Increased development rates by

doubling operating crews

• Completing full capital and

operating cost review – results

expected in Q1/10

Future Upside

• Potential to bring some

resources into reserves given

current commodity prices

• Potential for additional blocks

containing similar

mineralization below those

currently included in mine plan

Location Canada


Copper (m lbs) 959

Resources2,3Gold (m oz) 1.63

Copper (m lbs) 1,483

Mine type Underground

Estimated mine life 12 years

LOM Production/yr (Au oz/Cu lbs) 85k/75m

LOM Cash Cost/oz co-product (Au/Cu)4 $305/$1.10

1 New Afton mineral reserves have been calculated based on a gold price of US$475/oz, a copper price of US$1.45/lb and a lower NSR cut-off of CAD$15/t of ore. Refer to Reserves Notes.2 Reported as of September 21, 2006.3 New Afton mineral resources have been estimated based on a gold price of US$450/oz, a silver price of US$5.25/oz, a copper price of US$1.20/lb and a lower NSR cut-off of CAD$10.00/t of

mineralized material. Mineral resources are inclusive of mineral reserves. Refer to Resources Notes.4 Refer to Cautionary Statements regarding Forward Looking Statements and Total Cash Cost.


Executing with Upside – New Afton (cont’d)

• Project remains on time and on budget

• Total capital expenditure requirements ~$600m

- 37% complete

• ~ $380 million left to be spent 2010-2012

• Completed the mill building in early 2009 for

storage of mill equipment

• Continuing development of declines to the base

of the ore body

• Re-commence surface construction and start

undercut of the ore body in 2011

• Start stockpiling ore in 2011 to feed the mill in

2012

• Commence production in the second half of

2012 with life-of-mine annual production of:

• 75 m lbs copper

• 85k oz gold

14

PATH FORWARD: TOWARD PRODUCTION

0

50

100

150

200

250

300

350

400

450

500

Q1 2009 Q2 2009 Q3 2009

ADVANCE RATE (METERS)


Gold Production Outlook

EXCEPTIONAL GOLD PRODUCTION GROWTH PROFILE

15

1 Source: Available consensus research estimates.

2 Based on 2009-2013 avg. broker consensus commodity prices of US$948/oz Au, US$2.74/lb Cu, US$14.64/oz Ag.

3 2009 production shown for the period of ownership of Western Goldfields.

4 Refer to Cautionary Statements regarding Forward Looking Statements and Total Cash Cost.

5 2013 production based on 2 equity research analyst estimates, none of which include production from El Morro.

Broker Consensus Production Profile1,2,3

(2009E-2013E)

0

100

200

300

400

500

600

2009E 2010E 2011E 2012E 2013E

Au

Pro

du

cti

on

(ko

z)

$0

$100

$200

$300

$400

$500

$600

To

tal C

ash

Co

sts

(US

$/o

z) 4

Gold Production Total Cash Costs

74% Increase in

Production

62% Decrease in

Total Cash Costs

5


Operating Margin

EXCEPTIONAL CASH FLOW GENERATION AND GROWTH

16

1 Source: Available consensus research estimates

2 Based on 2009-2013 avg. broker consensus commodity prices of US$948/oz Au, US$2.74/lb Cu, US$14.64/oz Ag

3 Operating Margin is a non-GAAP measure calculated as production multiplied by the assumed gold price less cash costs net of by-product credits

4 2013 production based on 2 equity research analyst estimates, none of which include production from El Morro

Refer to Cautionary Statements regarding Forward Looking Statements and Total Cash Cost

Operating Margin 1,2,3

$0

$50

$100

$150

$200

$250

$300

$350

$400

2009E 2010E 2011E 2012E 2013E

Op

era

tin

g M

arg

in (

US

$m

m)

~ 183% Increase in

Operating Margin

4


0

50

100

150

200

$2.00 $2.50 $3.00 $3.50 $4.00

Incr

em

en

tal I

ncr

eas

e in

Op

era

tin

g M

argi

n (

US$

mm

)

($300)

($150)

$0

$150

$300

To

tal C

as

h C

os

ts (U

S$

/oz)

Operating Margin Total Cash Costs

Copper Leverage

IMPACT OF COPPER ON OPERATING MARGIN AND CASH COST

17

1. Assumptions: Silver price $12.00/oz.

2. Assumes an average of 75 million pounds of copper sales per year from New Afton and 15 million pounds of copper sales per year from Peak Mines. It does not include any copper sales from El Morro.

3. Refer to Cautionary Statements regarding Forward Looking Statements and Total Cash Cost.

Assumes average of 90 million lbs of copper per year from 2013-20171,2,3

Cash costs (net of by-products) approach zero at current copper prices.


Peer Comparison

18

Change in 2009E-2013E Broker Consensus Cash Cost 1,2

5%

(5%) (7%) (8%) (9%)(13%) (15%)

(19%)

(62%)

Gam

mon

Cen

terra

Red

Bac

k

Bue

nave

ntur

a

Eldor

ado

IAM

GOLD

Agn

ico-

Eag

le

Ran

dgold

New

Gold

3

1. Note: Gammon Gold calculated based on gold equivalent cash costs2. Refer to Cautionary Statements regarding Forward Looking Statements and Total Cash Cost3. Based on 2009-2011 data due to unavailability of broker estimates

Note: As at November 16, 2009

Price/2010E CF28.7x

24.7x 24.1x

18.6x17.4x

11.9x 11.8x

8.8x 8.6x

Ran

dgold

Eldor

ado

Bue

nave

ntur

a

IAM

GOLD

Agn

ico-

Eag

le

New

Gold

Red

Bac

k

Gam

mon

Cen

terra

Price/Consensus NAV

2.0x 2.0x1.9x 1.8x

1.7x 1.6x 1.6x

1.3x1.2x

Agn

ico-

Eag

le

Ran

dgold

Eldor

ado

IAM

GOLD

Red

Bac

k

Bue

nave

ntur

a

Gam

mon

New

Gold

Cen

terra

Note: As at November 16, 2009


Performance Since Merger

19

Source: BloombergNote: Share price performance based on local currency adjusted for dividends and distributionsIntermediates Index includes: Buenaventura, Lihir Gold, Centerra, IAMGOLD, Gammon, Eldorado, New Gold, Red Back Seniors Index includes: Newmont, Barrick, Goldcorp, Newcrest, Kinross, Yamana Gold and Agnico-Eagle

94% share price appreciation since announcement of merger with Western Goldfields in March 2009

NAV multiple increased from 0.7x to 1.3x over the same time period

Increased exposure with 12 analysts now covering NGD

Trading liquidity has tripled


Value Generation

20

FUTURE UPSIDE

El Morro unlocking incremental value

Amapari strategic review

Asset Backed Notes now trading at approximately C$0.50 on the dollar

New Afton development on schedule, expect to commence production second half of 2012


Enhancing Value – El Morro (30%)

21

Future Upside

• On October 12, 2009, Barrick Gold Corporation announced an agreement with Xstrata to acquire its 70%

interest in the project for $465 million cash

• New Gold owns remaining 30% interest and has right of first refusal to purchase Xstrata’s 70% interest

• Research analysts and market beginning to increase inherent value – approximately $200 million based in

Barrick/Xstrata agreement

• Various opportunities are available: swap New Gold’s stake for a gold producing asset, develop the asset

with experienced, gold-focused partner, or monetize 30% interest

Location Chile



Resources1,3Gold (m oz) 2.66


Mine type Open Pit

Estimated mine life 15 years

LOM Production/yr (Au oz/Cu lbs)4 95k/105m

LOM Cash Cost/oz co-product (Au/Cu)5 $370/$0.95

1 El Morro‟s mineral reserves and resources are reported as of March 31, 2008 and reflect New Gold‟s 30% interest.2 Mineral reserves have been calculated based on a gold price of $500/oz, a copper price of US$1.25/lb and a lower cut-off of 0.30% copper-equivalent (“EqCu”) where: EqCu(%) = Cu(%) + 0.592 x Au (g/t) and Cu(%) = percent

copper, Au(g/t) = grams per tonne gold. Qualified person as defined under NI43-101 is Mr. Richard J. Lambert, P.E and formerly Principal Mining Engineer for Pincock, Allen & Holt Inc., currently Executive VP with Scott Wilson Roscoe Postle Associates.

3 Mineral resources have been est. based on US$500/oz gold, US$1.25/lb copper and a lower grade cut-off of 0.3% copper-equivalent (“EqCu”) where: EqCu(%) = Cu(%) + 0.592 x Au (g/t) and Cu(%) = percent copper Au(g/t) = grams per tonne gold. Mineral resources are based on an economically constrained “mineral resource pit” that uses the same cost and metal recovery parameters used to define mineral reserves as described in the May 2008 NI 43-101 technical report for the project. Mineral resources are inclusive of mineral reserves. Qualified person as defined under NI43-101 is Mr. Barton G. Stone, P. Geo and Chief Geologist for Pincock, Allen & Holt Inc.

4 El Morro‟s life of mine gold and copper production represents New Gold‟s 30% interest.5 Refer to Cautionary Statements regarding Forward Looking Statements and Total Cash Cost.


Value Generation

22

FUTURE UPSIDE

1. Amapari strategic review

• Measured and Indicated Mineral Resources1 – gold 1.44 m oz (63% sulfide)

• Inferred Resources2 – gold 1.04 m oz (93% sulfide)

• Asset under strategic review

• Several parties have approached New Gold and are interested in purchasing the asset

2. Asset Backed Notes now trading at approximately $0.50 on the dollar

• Face value of $149 million

• Improvement in global credit market conditions have positively impacted the value of the notes

3. New Afton development on schedule, expect to commence production in second half of 2012

1 Amapari mineral resources have been estimated based on a gold price of US$750/oz and a variable lower grade cut-offs ranging from 0.6 g/t to 0.8 g/t gold for open pit oxide and sulphide resources and 1.7 g/t gold for underground sulphide resources that vary between individual mineral resources and their proximity to the Amapari operation processing facility. Reported as of December 21, 2008. The qualified person as Defined under NI 43-101 is Mr. Rex Berthelsen, Member AusIMM and Principal Geologist for New Gold Inc.

2 Inferred Mineral Resources are not known with the same degree of certainty as Mineral Reserves, do not have demonstrated economic viability and are exclusive of mineral reserves.


The New Gold Advantage

23

On track to achieve 2009 guidance of 270,000 to 300,00 oz of gold production at cash cost of

$470 to $490 per oz, net of by-product sales for the period of ownership

Production growth over the next four years with current portfolio of assets

Decreasing cash cost over the next four years

Strong balance sheet

All assets located in mining-friendly jurisdictions

Enhanced market presence with increased analyst coverage and trading liquidity

Proven Board of Directors and management team


Contact Information

24

Investor Relations

Melanie Hennessey

Vice President Investor Relations

New Gold Inc.

1-888-315-9715

[email protected]

Media and Communications

Christine Marks

Investor Relations and External Communications Coordinator

New Gold Inc.

(604)639-0023

[email protected]


Asset Overview Notes

PRODUCING

ASSETS

MESQUITE CERRO SAN PEDRO PEAK

Location United States Mexico Australia

Ownership 100% 100% 100%

Metal Gold (m oz @ g/t) Gold (m oz @ g/t) Silver (m oz @ g/t) Gold (m oz @ g/t) Copper (m lb @ %)

Reserves1,5,8 2.6 @ 0.58 1.3 @ 0.555 51 @ 22.3 514 @ 4.41 849 @ 0.96

Resources1,2,6,9 4.1 @ 0.56 1.7 @ 0.47 63 @ 15.6 76 @ 3.38 136 @ 1.08

Mine type Open Pit - ROM Heap Leach Open Pit - ROM Heap Leach Underground - Mill

Production Start-up 2008 2007 1992

Estimated Mine Life3 13 ~9 years ~8 years

Production YTD 30/09/09 2009 Guidance LOM Annual

Avg

YTD 30/09/09 2009 Guidance LOM Annual

Avg

YTD 30/06/09 2009 Guidance LOM Annual

Avg

Gold (k oz) 88.7 140-150 150-160 69.7 90-100 95-105 68.6 90-100 90-100

Silver (m oz) 1.2 1.1 – 1.3 2.1 – 2.3

Copper (m lbs) 11.7 13-15 14-16

Total Cash Cost/oz4,10 $624 $530-540 $420-430 $394 $550 - 570 $390 – 410 $332 $370-390 $390 - 410

Strip Ratio ~3.0 ~3.0 ~2.0 ~1.0

Grade

Gold g/t 0.44 0.54 0.58 0.46 0.55 .0.52 3.99 4.1 4.2

Silver g/t 31.47 23.8 21.4

Copper 1.0% 1.0% 1.1%

Sustaining Capital 7 ~$1.5 m ~$0.5 m/yr ~2.8 m ~$3 m/yr ~$24 m ~$12 m/yr

*For footnotes reference page 31 .

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Asset Overview Notes cont’d

DEVELOPMENT PROJECTS NEW AFTON EL MORRO

Location Canada Chile

Ownership 100% 30 % New Gold / 70% Xstrata Plc

Gold (m oz @ g/t) Copper (m lb @ %) Gold (m oz @ g/t) Copper (m lb @ %)

Reserves 11,13,14, 15, 16 1.03 @ 0.72 959 @ 0.98 2.01 @ 0.46 1,715 @ 0.58

Resources2, 12, 13, 14, 15, 17 1,63 @ 0.77 1,483 @ 1.02 2.66 @ 0.49 2,018 @ 0.55

Mine type Underground - Mill Open Pit - Mill

Status In Development Permitting Stage (6 – 12 months)

Production Start-up Middle of 2012 Construction Timeline 3.5 years

Grade (LOM Average)

Gold g/t 0.72 0.46

Copper 0.98% 0.58%

Capital Expenditures Remaining $380 m n/a

Development Funding Requirements ~$600 m $225 m18

Sustaining Capital (LOM Average) $11 m/year $7 m/year

Estimated Mine Life 12 Years 15 Years

Production (Annual LOM Averages)

Gold (k oz/yr) 85 95

Copper (m lb/yr) 75 105

Total Cash Cost/oz co-product Au4 $305 $370

Total Cash Cost/oz co-product Cu4 $1.10 $0.95

*For footnotes reference page 31.

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www.newgold.com TSX/NYSE AMEX US: NGD 27


• Block caving will involve:

• Undercutting the ore body allowing the ore to collapse

and fragment into underlying draw points

• Ore extraction from draw points by 3 m3 scoops, transfer

to the u/g crusher by 10 m3 scoops, then transferred to

surface via conveyor system

• New Afton has three blocks

• B1 & B2 bottom at approx. 600m below surface

• B3 bottom at approx. 730m below surface

• New Afton ore is very amenable to block caving

• Capital intensive up-front but low operating costs

• Lowest hard rock underground mining method

NEW AFTON



El Teniente Mines

AndinaSalvador

Chuquicamata

San Manuel HendersonQuesta

Jeffrey

Bell

Ekati

Cassiar

Pebble

New Afton

Resolution

Kimberley Mines

Finsch

Koffiefontain Ridgeway Deeps

And Cadia East

Northparkes E26

And E48

Mt Lyall

Argyle

Olympic Dam

Grasberg Ok Tedi

Wafi

Didipio

Santo Thomas II

Oyu Tolgoi

King Shabani

PalaboraDebswana Mines

Several Projects And

Mines In China

Mt Keith

Past Producers

Producers

Development Projects

LEGEND

Cullihan

Bingham Canyon

28

Global Block Caving Mines



CAPITAL AND DEVELOPMENT TO DATE

• US$51.4 million YTD project spend (Sept. 30, 2009)

• Detailed design and engineering 92% complete

• Underground Development

• Achieved break through in Q3/09, connecting the conveyor with

the main surface declines, providing a secondary access to all

development areas

• Recently increased development rates by doubling number of

operating crews to four, enabling continuous 7 day per week

operation

• Over 5,000m of development completed

• Surface Development

• Mill building closed in as of May 2009, provides secure

equipment storage

• Surface infrastructure partially in place with SAG, Ball and

Vertical mills assembled and placed above their foundations

• Surface development will resume in Q1/11

29

NEW AFTON



2009 201220112010

Underground

Development

- Continued

development of

declines to the base of

the ore body

- Conveyor pass

development for

ultimate haulage to

surface

- Completed the mill

building in early 2009

for storage of mill

equipment

BASECompletion/Production

- Create draw bells for

extraction of caved ore

- Production expected in

the second half of 2012

Underground

Development/Surface

Construction

- Re-commence surface

construction

- Undercut the ore body

Underground

Development

- Continued development

of drifts to base of the

ore body

NEW AFTONPATH FORWARD: TOWARD PRODUCTION



Notes to Asset Overview

1. Reported as of December 31, 2008

2. Mineral resources are inclusive of mineral reserves

3. 11 years of production and 2 years of residual leaching

4. Refer to note regarding Total Cash Costs in Cautionary Statements

5. Cerro San Pedro mineral reserves have been calculated based on a gold price of $750/oz, a silver price of US$10.00/oz and a lower NSR cut-off of

US$2.64/t

6. Cerro San Pedro mineral resources have been estimated based on a gold price of US$1000/oz, a silver price of US$21/oz and a lower grade cut-off of 0.2

g/t gold and are constrained within an economically constrained “mineral resource pit” that uses the same cost and metal recovery parameters used to

define mineral reserves as of December 31, 2008

7. Includes both development and sustaining capex

8. Peak Mines mineral reserves have been calculated based on a gold price of US$750/oz, a copper price of US$2.00/lb and variable lower NSR cut-offs

ranging from AUD$112/t to AUD$130/t that vary between individual mines and their proximity to the Peak operation processing facility.

9. Peak Mines mineral resources have been estimated based on a gold price of US$750/oz, a copper price of US$2.00/lb and variable lower NSR cut-offs

ranging from AUD$85/t to AUD$95/t that vary between individual mines and their proximity to the Peak operation processing facility.

10. Cash costs have been calculated based on a copper price of US$2.00/lb for 2009 and $1.70/lb for the LOM

11. New Afton mineral reserves been calculated based on a gold price of US$475/oz, a copper price of US$1.45/lb and a lower NSR cut-off of CAD$15/t of

ore

12. New Afton mineral resources have been estimated based on a gold price of US$450/oz, a silver price of US$5.25/oz, a copper price of US$1.20/lb and a

lower NSR cut-off of CAD$10.00/t of mineralized material

13. Reported as of September 21, 2006

14. Updated reserves and resources expected to be release in Q4 2009

15. El Morro’s mineral reserves and resources are reported as of March 31, 2008 and reflect New Gold’s 30% interest

16. Mineral reserves have been calculated based on a gold price of $500/oz, a copper price of US$1.25/lb and a lower cut-off of 0.30% copper-equivalent

(“EqCu”) where: EqCu(%) = Cu(%) + 0.592 x Au (g/t) and Cu(%) = percent copper, Au(g/t) = grams per tonne gold

17. Mineral resources have been estimated based on a gold price of US$500/oz, a copper price of US$1.25/lb and a lower grade cut-off of 0.3% copper-

equivalent (“EqCu”) where: EqCu(%) = Cu(%) + 0.592 x Au (g/t) and Cu(%) = percent copper, Au(g/t) = grams per tonne gold. Mineral resources are

based on an economically constrained “mineral resource pit” that uses the same cost and metal recovery parameters used to define mineral reserves

as described in the May 2008 NI 43-101 technical report for the project

18. New Gold has an agreement with Xstrata whereby Xstrata will finance 70 percent of New Gold's 30 percent share of El Morro's project development

costs. New Gold will repay the funds advanced by Xstrata through 80 percent of its share of cash flow from the project. New Gold’s share of the

estimated $2.5 billion development cost is $750 million of which cash contribution is $225 million.


Debt and Financing Notes

32

Senior Secured Notes Convertible Debentures Term Loan*

Face Value C$187 million C$55 million US$45.8 million

Maturity 2017 2014 2012

Interest Rate 10% 5% LIBOR + 4.25%

Payable Semi-annually Semi-annually Semi-annually

Conversion price n/a C$9.35 n/a

*New Gold amended the term loan facility on October 7, 2009 and made a prepayment of $15 million. The prepayment reduces the outstanding principal of the loan to $45.8

million. The lending syndicate, lead by Investec, now considers the development of Mesquite complete and has released the guarantee provided by Western Goldfields

Inc. In addition, the remaining available commitment of $18.6 million, which New Gold no longer requires, has been cancelled along with all related costs to the company.

The revised interest rate is US dollar LIBOR plus 4.25%. The term loan facility is now repayable by June 30, 2012 unless the company chooses to repay the loan early or

the sweep mechanism comes into effect. New Gold has increased flexibility in considering its options with respect to the gold hedge program, a required condition

precedent to the loan facility, that now extends two and half years beyond the revised term to December 31, 2014, the original term prior to prepayment. Approximately

165,000 ounces of gold, or approximately half of the program, are hedged beyond June 30, 2012 and may be terminated by New Gold.


Additional Notes on all Mineral Reserves:

• All mineral reserves have been calculated in accordance with the CIM Standards or the JORC Code. The JORC Code has been accepted for current disclosure rules in

Canada under NI 43-101. The mineral reserve & resource Statements are reported as of the following dates:

– Peak Mines – December 31, 2008

– New Afton Project – September 21, 2006

– Cerro San Pedro Mine – December 31, 2008

– El Morro – March 31, 2008

– Mesquite Mine - December 31, 2007

• The Qualified Person(s) (as defined under NI 43-101) or Competent Person(s) (as defined under the JORC Code for the Mineral Reserve & Resource Statements) are as

follows:

– Peak Mines – Mr. Eric Strom, P.Eng. and Technical Services Superintendent for Peak Mines Pty Ltd.

– New Afton Project – Mr. Mike Thomas, Member AusIMM and Principal Mining Consultant for AMC Consultants Pty Ltd.

– Cerro San Pedro Mine – Mr. William L. Rose, P.E. and Principal Mining Engineer for WLR Consulting, Inc.

– El Morro Project – Mr. Richard J. Lambert, P. E. and formerly Principal Mining Engineer for Pincock, Allen & Holt Inc., currently Executive Vice President with

Scott Wilson Roscoe Postle Associates

– Mesquite Mine – Mr. Wes Hanson, P. Geo., VP. Mine Development, Western Goldfields Inc.

• Peak Mines mineral reserves have been calculated based on a gold price of US$750/oz, a copper price of US$2.00/lb and variable lower NSR cut-offs ranging from

AUD$112/t to AUD$130/t that vary between individual mines and their proximity to the Peak operation processing facility.

• New Afton mineral reserves been calculated based on a gold price of US$475/oz, a copper price of US$1.45/lb and a lower NSR cut-off of CAD$15/t of ore.

• Cerro San Pedro mineral reserves have been calculated based on a gold price of $750/oz, a silver price of US$10.00/oz and a lower NSR cut-off of US$2.64/t.

• El Morro mineral reserve tonnes and grade are reported on a 100% basis; contained metals are reported on a 30% basis to reflect New Gold’s 30% ownership interest

in the project. Mineral reserves have been calculated based on a gold price of $500/oz, a copper price of US$1.25/lb and a lower cut-off of 0.30% copper-equivalent

(“EqCu”) where EqCu(%) = Cu(%) + 0.592 x Au (g/t) and Cu(%) = percent copper, Au(g/t) = grams per tonne gold

• Mesquite mineral reserves are calculated based on a gold price of US$500/oz

• Inferred mineral resources are not known with the same degree of certainty as mineral reserves, do not have demonstrated economic viability and are exclusive of

mineral reserves

• Numbers may not add due to rounding.

• See technical reports, Annual Information Form, Form 10-K and other filings made on SEDAR by each of New Gold and Western Goldfields for detailed information

with regard to the assumptions, parameters and other relevant information.

33

Reserves Notes


Additional Notes on all Mineral Resources:

• All mineral resources have been calculated in accordance with the CIM Standards or the JORC Code. The JORC Code has been accepted for current disclosure rules in

Canada under NI 43-101. The Mineral Resources have been reported as of the following dates:

– Amapari Mine – December 31, 2008

– Peak Mines – December 31, 2008

– New Afton Project – September 21, 2006

– Cerro San Pedro Mine – December 31, 2008

– El Morro – March 31, 2008

– Mesquite Mine – December 31, 2008

• The qualified person(s) (as defined under NI 43-101) or competent person(s) (as defined under the JORC Code) for the mineral resource estimates are as follows:

– Amapari Mine – Mr. Rex Berthelsen, Member AusIMM and Principal Geologist for New Gold Inc.

– Peak Mines – Mr. Rex Berthelsen, Member AusIMM and Principal Geologist for New Gold Inc.

– New Afton Project – Mr. David Rennie, P. Eng. and Consulting Geological Engineer for Scott Wilson Roscoe Postle Assoc.

– Cerro San Pedro Mine – Mr. William L. Rose, P.E. and Principal Mining Engineer for WLR Consulting, Inc.

– El Morro Project – Mr. Barton G. Stone, P. Geo. and Chief Geologist for Pincock, Allen & Holt Inc.

– Mesquite Mine – Mr. Wes Hanson, P. Geo., VP. Mine Development, Western Goldfields Inc.

• Amapari mineral resources have been estimated based on a gold price of US$750/oz and a variable lower grade cut-offs ranging from 0.6 g/t to 0.8 g/t gold for open pit

oxide and sulphide resources and 1.7 g/t gold for underground sulphide resources that vary between individual mineral resources and their proximity to the Amapari

operation processing facility.

• Peak Mines mineral resources have been estimated based on a gold price of US$750/oz, a copper price of US$2.00/lb and variable lower NSR cut-offs ranging from

AUD$85/t to AUD$95/t that vary between individual mines and their proximity to the Peak operation processing facility.

• New Afton mineral resources have been estimated based on a gold price of US$450/oz, a silver price of US$5.25/oz, a copper price of US$1.20/lb and a lower NSR cut-off

of CAD$10.00/t of mineralized material.

• Cerro San Pedro mineral resources have been estimated based on a gold price of US$1000/oz, a silver price of US$21/oz and a lower grade cut-off of 0.2 g/t gold and are

constrained within an economically constrained “mineral resource pit” that uses the same cost and metal recovery parameters used to define mineral reserves as of

December 31, 2008. The Cerro San Pedro minderal resoucre estimates account for mining extraction from January 1, 2007 through thte end of 2008.

• El Morro mineral resource tonnes and grade are reported on a 100% basis; contained metals are reported on a 30% basis to reflect New Gold’s 30% ownership interest in

the project. El Morro mineral resources have been estimated based on a gold price of US$500/oz, a copper price of US$1.25/lb and a lower grade cut-off of 0.3% copper-

equivalent (“EqCu”) where EqCu(%) = Cu(%) + 0.592 x Au (g/t) and Cu(%) = percent copper, Au(g/t) = grams per tonne gold. Mineral resources are based on an economically

constrained “mineral resource pit” that uses the same cost and metal recovery parameters used to define mineral reserves as described in the May 2008 NI 43-101

technical report for the project.

• Mesquite Mine mineral resources have been calculated based on a gold price of US$650/oz

• Inferred mineral resources are not known with the same degree of certainty as mineral reserves, do not have demonstrated economic viability and are exclusive of mineral

reserves

• Numbers may not add due to rounding.

• See technical reports, Annual Information Form, Form 10-K, and other filings made on SEDAR by each of New Gold and Western Goldfields for detailed information with

regard to the assumptions, parameters and other relevant information.

34

Resources Notes