Corporate presentation june 22 2012 - original na version

Corporate Presentation June 2012

2 Corporate Presentation | June 2012 2

Cautionary statement

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

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain information contained in this presentation, including any information relating to New Gold's future financial or operating performance may be deemed "forward looking". All statements

in this presentation, other than statements of historical fact, that address events 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", "estimates", "forecasts", "intends", "anticipates", “projects”, “potential”, "believes" or variations of such words and phrases or statements that certain actions, events or results

"may", "could", "would", “should”, "might" or "will be taken", "occur" or "be achieved" or the negative connotation. All such forward-looking statements are based on the opinions and estimates

of management as of the date such statements are made and are subject to important risk factors and uncertainties, many of which are beyond New Gold's ability to control or predict.

Forward-looking statements are necessarily based on estimates and assumptions (including that the business of various transactions will be integrated successfully in the New Gold

organization) that are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to be

materially different from those expressed or implied by such forward-looking statements. Such factors include, without limitation: significant capital requirements; fluctuations in the international

currency markets and in the rates of exchange of the currencies of 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 and estimated metallurgical recoveries; changes in national and local government legislation in 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 and maintaining the validity and enforceability of the necessary licenses and

permits and complying with the permitting requirements of each jurisdiction that New Gold operates, including, but not limited to, Mexico, where New Gold is involved with ongoing challenges

relating to its environmental impact statement for the Cerro San Pedro Mine and to Chile where there are challenges related to the environmental permit for the El Morro Project; the lack of

certainty with respect to the Mexican, Chilean and other foreign 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 to current and future legal challenges the company is or may become a party to, as well as the third party claim related to the El

Morro transaction with respect to New Gold's exercise of its right of first refusal on the El Morro copper-gold project in Chile and its partnership with Goldcorp Inc., which transaction and third

party claim were announced by New Gold in January 2010; 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; 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 the risk of inadequate insurance or inability to obtain insurance to 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 of future performance,

and actual results and future events could materially differ from those anticipated in such statements. All of the forward-looking statements contained in this presentation are qualified by these

cautionary statements. New Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, events or

otherwise, except in accordance with applicable securities laws.


Cautionary statement (cont’d)

CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES

Information concerning the properties and operations discussed in this presentation 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.

TECHNICAL INFORMATION

The scientific and technical information in this presentation has been reviewed by Mark Petersen, a Qualified Person under National Instrument 43-101 and employee of New Gold.

TOTAL CASH COST

“Total cash cost” per ounce 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 widely accepted as the 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-IFRS measure. Total cash cost presented does not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures

presented by other mining companies. It should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and is not necessarily indicative

of operating costs presented under IFRS. A reconciliation will be provided in the MD&A accompanying the quarterly financial statements.


Overview

Leading intermediate gold producer

Three producing assets

Three fully-funded growth projects

C$4.5 billion market capitalization

$326 million in cash(1)

Strong Board and Management

History of accretive growth

Notes: 1. Cash balance as at March 31, 2012 adjusted for net proceeds of $300 million notes offering after redemption of senior secured notes and related costs.


Management and Board of Directors

EXECUTIVE MANAGEMENT TEAM BOARD OF DIRECTORS

• Board and Management hold 15 million

shares of Company

– ~$145 million investment

Randall Oliphant, Executive Chairman

Robert Gallagher, President & CEO

Brian Penny, Executive VP and CFO

James Estey, Former Chairman UBS Securities Canada

Robert Gallagher, President & CEO

Vahan Kololian, Founder Terra Nova Partners

Martyn Konig, Former Executive Chairman European Goldfields

Pierre Lassonde, Chairman Franco-Nevada

Randall Oliphant, Executive Chairman

Raymond Threlkeld, CEO Rainy River Resources


Operating assets

Diversified asset portfolio(1)

Gold Reserve

7.9 Moz

Development projects

Notes: 1. Refer to Appendix 6 for detailed disclosure on Reserve and Resource calculations. Measured and Indicated Resources inclusive of Reserves, and Capoose Indicated Resources of 384koz.

2. Represents New Gold’s attributable 30% share of Reserves and Resources.

Peak Mines

Cerro San Pedro

El Morro(2)

New Afton

Blackwater

Mesquite

M&I Resource(1)

18.8 Moz


$566

$465$418

$446$410-430

$0

$100

$200

$300

$400

$500

$600

233

302

383 387405-445

0

50

100

150

200

250

300

350

400

450

Operational execution

Notes: 1. Refer to Cautionary Statement and note on Total cash cost.

2. 2009 and 2008 costs shown based on Canadian GAAP.

Gold production(1) (000s ounces)

Total cash cost(1)(2) ($/oz)

2008

Actual

2009

Guidance

2009

Actual

2010

Guidance

2010

Actual

2008

Actual

2009

Guidance

2009

Actual

2010

Guidance

2010

Actual

2011

Guidance

2011

Actual

2011

Actual

2011

Guidance

2012

Guidance

2012

Guidance


$566

$465

$418

$446

$410-$430

$464$478

$557

$643

2008 2009 2010 2011 2012E

Cost trends: New Gold versus industry(1)(2)

Notes: 1. Industry data per GFMS reports calculated net of by-product credits.

2. Refer to Cautionary Statement and note on Total cash cost.

Gold price

(US$/oz)

$700

$600

$500

$300

$400 To

tal C

ash

Co

sts

(U

S$/o

z)(

2)

$297 Margin

(US$/oz)

$863

$1,014

$1,460 +69%

+241%

New Gold provides leverage to gold price


32.7

40.8

$0.26

$0.48 $0.53

2009 2010 2011

$0.12

$0.30

$0.44

2009 2010 2011

Track record of per share growth outperforming gold

Adjusted earnings per share Net cash generated from operations per share

Net asset value per share(1)(2) Measured & Indicated gold resource per 1,000 shares(3)

$2.46

$6.68

$11.02

12/31/10 12/31/11 6/1/09 12/31/10 12/31/11

Notes: 1. Net asset value as at June 1, 2009 based on New Gold and Western Goldfields business combination.

2. Based on average of consensus net asset value per share ascribed by analysts covering New Gold.

3. Measured and Indicated gold resource shown inclusive of reserves.

267% 104%

25%

348%

Average gold price increased by 62% from 2009 through 2011


2012 guidance


Gold production(1)

405 - 445Koz

Total cash cost(1)

$410 - $430/oz

2012 cash cost estimate assumes:

• $30.00 per ounce silver

• $3.50 per pound copper

• Parity Australian dollar

• Parity Canadian dollar

Total company cash cost subject to following sensitivities:

• +/- $1.00 per ounce silver ~ +/- $5 per ounce

• +/- $0.25 per pound copper ~ +/- $25 per ounce

• +/- $0.05 AUD FX ~ +/- $10 per ounce

• +/- $0.05 CDN FX ~ +/- $5 per ounce

Gold production (ounces)

Total cash cost(1)

($/oz)

Mesquite 140,000 - 150,000 $710 - $730

Cerro San Pedro 140,000 - 150,000 $250 - $270

Peak Mines 90,000 - 100,000 $640 - $660

New Afton 35,000 - 45,000 ($1,200) - ($1,300)

Total 405,000 - 445,000 $410 - $430

2012 Guidance


New Afton – Underground production started

New Afton(100%)

Location Canada

Mine type Underground

Reserves1 – Gold/Copper (Moz/Mlbs) 1.0/954

Resources1 – Gold/Copper (Moz/Mlbs) 1.7/1,586

Estimate mine life 12 years

2012E production/yr (Au koz/Cu Mlbs)2 35-45k/30-35m

2012E cash cost/oz by-product3 ($1,200)-($1,300)

2012E cash cost/oz co-product (Au/Cu)4 $630-$650/$1.35-$1.45

Remaining Capital(5)

~ $60 million

Commercial Production

August 2012

Average Annual Cash Flow(6)

~ $230 million

• Development capital over 90% spent

• Team with significant block cave experience

• Underground operations running well over 800,000

tonnes stockpiled

• Production to start in June 2012

• Mining and milling rate to reach full 11,000 tpd

capacity in early 2013

• Life-of-mine average co-product costs ~$525 per

ounce and ~$1.15 per pound

• Underground exploration program to start in Q3’12

Notes: 1. Refer to Appendix 6 for detailed disclosure on Reserve and Resource calculations.

2. Production includes all production including the gold and copper produced prior to commercial production.

3. Refer to Cautionary Statement and note on Total cash cost.

4. Co-product cash cost calculated based on relative percentage of gold and copper revenue, respectively.

5. Development capital estimate from April 1, 2012 through commercial production adjusted for offsetting

revenue between production and commercial production.

6. Using spot commodity prices.


El Morro (30%) – A world class project

El Morro (30%)

Location Chile

Mine type Open Pit

Reserves1 – Gold/Copper (Moz/Mlbs) 2.5/1,868

Resources1 – Gold/Copper (Moz/Mlbs) 3.0/2,193

Estimate mine life 17 years

LOM production/yr (Au koz/Cu Mlbs)2 90/85

LOM cash cost/oz co-product (Au/Cu)3 $550/$1.45

Copper Reserve(1)

1.9 Blbs

Gold Reserve(1)

2.5 Moz

• Current Resource entirely within La Fortuna

deposit

• 1.2 Moz inferred gold resource at higher gold

and copper grades in deeper portion of La

Fortuna deposit

• Neighbouring El Morro deposit

underexplored

• Capital fully-funded by 70% partner Goldcorp

• Addressing recent temporary suspension of

environmental permit

Notes: 1. Refer to Appendix 6 for detailed disclosure on Reserve and Resource calculations. Measured and Indicated Resources inclusive of Reserves. El Morro Reserves and Resources shown on attributable 30% basis.

2. Refer to Cautionary Statements.

3. Refer to Cautionary Statements and note on Total cash cost. Life of mine co-product costs based $1,200/oz gold and $2.75/lb copper.


Blackwater – An exciting new discovery

Blackwater

Location Canada

Proposed mine type Open Pit

M&I Resources1 – Gold/Silver (Moz) 5.5/25.8

Inferred Resources1 – Gold/Silver (Moz) 2.3/11.2

Targeted production2 2017

Inferred Gold Resource(1)

2.3 Moz at 0.78 g/t

Indicated Gold Resource(1)

5.5 Moz at 0.98 g/t

• Latest resource included drilling through

December 2011 and is based on total of 261 holes

totaling 89,460 metres

• Currently 17 drills active at site

• Further consolidated land position – over 900km2

• Year-round accessibility for drilling/ development

• Central British Columbia near infrastructure

• Ability to fund continued exploration/development

internally

• Tax synergies with New Afton

Notes: 1. Refer to Appendix 6 for detailed disclosure on Reserve and Resource calculations.

2. Blackwater start date based on indicative timeline which is dependent on continued exploration success, environmental approvals and the determination that the deposit is economically viable.


Blackwater – Area map

~160km to

Prince George

~100km to

Vanderhoof

Blackwater

Project

50km

80km

Gold/Silver Resources (Moz)

M&I: 0.4/26.6

Inferred: 0.4/29.5

Gold/Silver Resources (Moz)

M&I: 5.5/25.8

Inferred: 2.3/11.2

Capoose

Resource


Blackwater – 2012 exploration program

• $55 million program focused on combined infill and step-out drilling

• Targeting ~500 holes

totaling ~210,000

metres

– 60-70% infill

– 30-40% step-out

• $4 million additional

exploration program at

Capoose

Includes assays received through April 17, 2012

April 17th, 2012 News Release

March 7th, 2012 News Release

2012 PEA Resource


Blackwater – 2012 drill results

April 17, 2012

334 317 310

331

326 344

110 metres at

1.00 g/t

15 metres at

47.49 g/t

137 metres at

1.34 g/t 130 metres at

1.29 g/t

157 metres at

1.36 g/t

210 metres at

1.38 g/t

Notes: 1. For complete summary of 2012 assay results, refer to New Gold website at www.newgold.com.


Blackwater – Overview of potential project parameters

PEA considerations

Conventional open pit truck and shovel

operation

Good existing road access

Several viable options for powerline

access to BC Hydro grid ($0.04/KwH)

Non-refractory ore

Recoveries by conventional direct

cyanidation and/or flotation process

~90%

Process plant capacity of 60,000 tpd

Several viable options identified for

tailings and waste disposal

Targeting completion of PEA in third

quarter 2012

Go

ld g

rad

e (

g/t

)

Go

ld p

rod

uc

tion

(tho

us

an

d o

un

ces)

1

2

3

4

5

6

7

Gold recovery (%)

85% 86% 87% 88% 89% 90%

0.90

0.92

0.94

0.96

0.98

1.00

525

550

575

600

625

60,000 tpd operation

• ~4.6 g/t silver at 50% recovery would yield ~1.7 million ounces silver annually


Development activity

First Nations & Public Consultation

Preliminary Economic Assessment

Base Line Environmental Studies

Feasibility Study

Engineering Procurement

Production Target

H1 H2

Construction

Drilling

Terms of Reference

Environmental Assessment Reports

Provincial Approval

Federal Approval

2015 2016 20172012

H1 H2

2013 2014

H2 H1 H2H1 H2 H1 H2 H1

Blackwater – Indicative timeline

• The below provides a preliminary indicative targeted timeline through exploration,

development and into production(1)

– New Gold will continue to refine this timeline

Notes: 1. Indicative timeline is dependent on continued exploration success, permit approvals and the determination that the deposit is economically viable. There is no assurance this timeline will be achieved nor that

the deposit will ever reach the production stage.

Reflects critical path in timeline


$446 $410 - $430

~$150 - $200

$1,014

$1,180

~450 - 500

387

405 - 445

0

100

200

300

400

500

600

$0

$350

$700

$1,050

$1,400

$1,750

2011A 2012E 2013E

~$1,425

Near-term production and cash flow increases…

Realized gold price

(US$/oz)

Cash Cost(1)

(US$/oz)

Margin

(US$/oz)

$1,460

$1,600 $1,600

US

$/o

z


Go

ld p

rod

uctio

n (th

ou

san

d o

un

ces)

Gold production


…and a future of growth

• El Morro and Blackwater expected to more than double New Gold’s gold production by 2017

at low cost

387405 - 445

~450 - 500

200

400

600

800

1,000

2011A 2012E 2013E 2017E

Go

ld p

rod

ucti

on

(th

ou

san

d o

un

ces)


Net asset value per share appreciation

Source: Broker Reports, Company Estimates and Announcements, Bloomberg.

Notes: 1. Street consensus NAV for Mesquite, Cerro San Pedro and Peak Mines.

2. Current street consensus NAV for El Morro; Includes $50mm cash payment received from Goldcorp as part of transaction consideration.

3. New Gold purchased Richfield for C$480 million and Silver Quest for C$110 million. The deals closed on June 1, 2011 and December 23, 2011, respectively.

6/1/09 Today

Operating Portfolio(1)

New Afton

El Morro(2)

~ $875 $1,971

~ $120 $1,252

~ $40 $754

Net Asset Value

Blackwater(3)

$-- $1,115

Development Projects

~ $160 $3,121

$1.00

$3.00

$5.00

$7.00

$9.00

$11.00

$13.00

$15.00

1-J

un-0

9

3-O

ct-

09

4-F

eb

-10

8-J

un-1

0

10

-Oct-

10

11

-Fe

b-1

1

15

-Jun

-11

17

-Oct-

11

18

-Fe

b-1

2

21

-Jun

-12

Share price

NAVPS

P/NAV

Completed $1.2bn business combination with Western Goldfields

Closing of Richfield acquisition

High~1.5x

High~1.5x

High~1.5x

High~1.5x

Low~0.7x

Current~0.9x

22-J

un-1

2

US

$ N

AV

an

d S

hare

pri

ce

323% increase in NAVPS

219% increase in share price


Near-term value opportunity

$4.5 billion

$0.8 billion

$1.1 billion

$2.6 billion

Enterprise Value

Consensus El Morro NAV

Consensus Blackwater NAV

Enterprise value (ex growth assets)

Consensus 2013E cash flow from operations

$513 million(1)

New Gold trading at ~5.2x 2013E cash flow

Notes: 1. Based on analyst consensus cash flow per share estimate of $1.11 per share times 462 million shares outstanding.

Historical cash flow multiple range in industry of 5 to 20 times


2012 – A year of catalysts

Blackwater PEA resource update

New Afton production start

El Morro litigation decision

New Afton commercial production

Blackwater PEA

El Morro engineering/development planning

Blackwater/New Afton exploration


The New Gold investment thesis

EXPERIENCED BOARD AND MANAGEMENT

FULLY FUNDED COMPANY WITH STRONG BALANCE SHEET

DIVERSIFIED ASSET BASE IN MINING FRIENDLY JURISDICTIONS

ORGANIC GROWTH OPPORTUNITIES/METAL OPTIONALITY

PRODUCTION GROWTH/MARGIN EXPANSION

INCREASING UNDERLYING ASSET VALUE

MULTIPLE CATALYSTS

COMPELLING INVESTMENT PROPOSITION


Appendix

Appendices

Page

1. Financial information 25

2. Operating performance 28

3. New Afton 31

4. El Morro 40

5. Blackwater 43

6. Reserves and resource notes 56

7. Commodity price/foreign 61

exchange assumptions


0

1

2

3

4

5

6

7

8

2008 2009 2010 2011

Capitalization and liquidity

Average Daily Trading(3)

Millio

n s

hare

s

~7.3mm ~7.0mm

~5.5mm

~1.0mm

Notes: 1. Cash and debt positions as of March 31, 2012 adjusted for net proceeds of $300 million notes offering after redemption of senior secured notes and related costs.

2. See Appendix 1 for detailed breakdown of components of debt.

3. Averages based on combination of all trading platforms including: TSX, Alpha, Pure and NYSE Amex.

April 2012 Senior Note Financing

• Completed $300 million 7% unsecured note

financing on April 5th and announced

redemption of C$187 million 10% senior

secured notes

• Multiple benefits

– Lower interest rate – 7% vs. 10%

– Extended term – 2020 vs. 2017

– Enhanced flexibility – ability to institute

dividend; notes are unsecured

– Additional $90 million cash on balance

sheet post redemption/costs

Cash and equivalents - $326 million(1)

Debt - $382 million(1)(2)

Appendix 1


Summary of debt

Undrawn Credit

Facility Senior Notes

Convertible

Debentures El Morro Funding Loan

Face Value $150 million(1) $300 million C$55 million $36 million

Maturity 3 years with annual

extensions permitted

April 15, 2020 June 28, 2014 n/a

Interest Rate See ‘Key features’ 7% 5% 4.58%

Payable Revolving credit Semi-annually Semi-annually Upon start of production

Conversion price n/a n/a C$9.35 n/a

Current trading value n/a ~102.1 ~$120 n/a

Key features Normal financial

covenants

Interest Rate

• 3% over LIBOR based

on ratios

• Standby fee of 0.75%

• 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

Redeemable after

January 1, 2012 with

between 30 and 60

days notice provided

shares trading over

C$11.69

New Gold to repay

Goldcorp out of 80% of

its 30% share of cash

flow once El Morro starts

production

Notes: 1. $30 million currently allocated for Letters of Credit.

Appendix 1


Trend of expanding margins continues


Appendix 1

$566

$465$428 $446

$543

$297

$522

$766

$1,014

$1,032

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2008A 2009A 2010A 2011A Q1'12A

Realized gold price

(US$/oz)

$863

Cash Cost(1)

(US$/oz)

Margin

(US$/oz)

$987

$1,194

$1,460

US

$/o

z

$1,575


Mesquite


140,000 - 150,000

Total cash cost ($ per ounce)

$710 - $730

Tonnes processed

(000 tonnes) 11,733 12,500 – 13,500

Tonnes mined

(000 tonnes) 45,973 45,000 – 47,000

Grade - gold (g/t) 0.57 0.50 – 0.55

Capital

($ million) 19 ~14

2011 Actual & 2012 Guidance

Key assumptions and sensitivities

• Diesel comprises ~20% of Mesquite’s total costs

• Rack diesel price most correlated to Brent oil price

− Brent oil price increased by 13% since

beginning of 2011

• Every 10% change in diesel price has ~$15 per

ounce impact on costs

2011A versus 2012E

• Lower strip ratio to result in higher ore tonnes

processed

• Gold grade is expected to decline from 2011

levels

• Increase in costs primarily driven by lower

gold production

2011A 2012E

Notes: 1. Mesquite life-of-mine recovery continues to track at ~75% for oxide; ~35% for sulphides.

Appendix 2


Cerro San Pedro


140,000 - 150,000


$250 - $270

Tonnes processed

(000 tonnes) 16,763 14,000 – 15,000

Tonnes mined

(000 tonnes) 33,276 31,000 – 33,000

Grade - gold (g/t) 0.48 0.55 – 0.60

Grade – silver (g/t) 24 20 – 25

Capital

($ million) 7 ~16


• Silver price - $30 per ounce (2011A - $35.15/oz)

• Mexican Peso: U.S. foreign exchange – 13:1

• $1.00 per ounce change in silver equals ~$15 per

ounce change in Cerro San Pedro cash cost

• 1.0 change in Mexican Peso equals ~$15 per

ounce change in Cerro San Pedro cash cost

2011A versus 2012E

• Expected production of gold and silver consistent

with 2011

• Decrease in tonnes processed offset by

grade and recovery movements

• Increase in costs primarily driven by lower silver

by-product price assumption

Silver production (million ounces)

1.9 - 2.1


2011A 2012E

Notes: 1. Cerro San Pedro life-of-mine recovery continues to track at: Gold – ~60%, Silver – ~30%.

Appendix 2


Peak Mines

Tonnes processed

(000 tonnes) 783 780 – 800

Tonnes mined

(000 tonnes) 755 780 – 800

Grade - gold (g/t) 3.94 4.0 – 4.2

Grade – copper (%) 0.93 0.88 – 0.90

Recovery – gold (%) 89 88 – 90

Recovery – copper (%) 82 85 - 87

Capital

($ million) 50 ~60


• Copper price - $3.50 per pound (2011A - $3.78/lb)

• Australian dollar: U.S. foreign exchange – 1:1

• $0.25 per pound change in copper equals ~$35 per

ounce change in Peak cash cost

• 0.01 change in Australian dollar equals ~$10 per

ounce change in Peak cash cost

2011A versus 2012E

• Increased gold production driven by increases in

tonnes processed, gold grades and recoveries

• Similar copper production a result of increased

tonnes processed and copper recoveries offset

by lower copper grades


90,000 - 100,000


$640 - $660

Copper production (million pounds)

12 - 14


2011A 2012E

Appendix 2


Block cave mines

Appendix 3


$56m

$54m

$40m$174m

$74m

$43m

New Afton development capital cost breakdown

• Total capital spend during 2011 of $291

million, excluding capitalized interest

Surface/Mill

Construction

Underground

Development

Owners Costs/

Construction Indirects

2011A 2012E(1)

• Total remaining development capital of $150

million through start of commercial

production

– Total project capital to be within 8% of

2009 capital estimate of C$700 million

at C$765 million

Notes: 1. As of January 1, 2012, assumes a parity USD/CDN foreign exchange rate and includes offsetting revenue related to pre-commercial production sales of inventory that has been netted against Underground

Development costs.

Appendix 3


Drawbell continuity schedule

Appendix 3


-

10

20

30

End of2011

January February March April May June

Nu

mb

er

of

dra

wb

ells

New Afton – 2012 drawbell development rate

• Currently meeting targeted

drawbell development rate

– 21 drawbells completed

as of April 30, 2012

• On track for 26 drawbells by

the end of June

• ~50 drawbells to support

11,000 tpd mining rate

26 drawbells to

support 6,600 tpd

from underground

2012

On track with 2012 monthly drawbell development

Actual Estimated

Appendix 3


-

100

200

300

400

500

600

700

800

900

1,000

December2011

January February March April May June

New Afton – Build-up of ore stockpile

• Combination of additional

drawbells and commissioning

of conveyor system has led to

exponential increase in ore

stockpile

• 705,000 tonnes stockpiled on

surface at April 30, 2012

• Stockpile to provide additional

flexibility during ramp-up of

mining and milling rates

• Ore grade above reserve

grade and reconciling with

block models

~3 months of

production at full

capacity

2012

Ore

sto

ckp

ile (

tho

usan

d t

on

nes

)

On track with 2012 monthly ore stockpile targets

Actual Estimated

Average grade comparison

Gold

g/t

Copper

%

New Afton

reserves(1)

0.64 0.90

Ore stockpile 0.97 1.04

Notes: 1. As at December 31, 2011. Refer to Reserve and Resource Notes in Appendix 6.

Appendix 3


-

2,500

5,000

7,500

10,000

12,500

15,000

January March May July September November January March

Mine tpd Mill feed tpd

New Afton – 2012 production start-up

Mill reaches 11,000

tpd

Mill starts in June and reaches

6,600 tpd commercial rate in

August

Period of drawdown

of stockpile inventory

Mining/milling rate

reach 11,000 tpd run-

rate level

• The combination of over six months of active underground mining and the existence of the ore stockpile

should lead to an efficient mill start-up

• Mill start-up scheduled for June 2012

• Targeting two month period to reach commercial production rate (6,600 tonnes per day) – August 2012

2012 2013

Tonnes per day

Appendix 3


Production and sales

• Difference between production and sales

a result of pre-commercial production

commodity sales being net against capital

costs and timing of certain concentrate

sales


35,000 - 45,000

Copper production (million pounds)

30 - 35

Gold sales (ounces)

20,000 - 30,000

Copper sales (million pounds)

20 - 25

Tonnes processed (000 tonnes) 1,900 – 2,200

Grade - gold (g/t) 0.75 – 0.85

Grade - copper (%) 0.85 – 0.95

Recovery – gold (%) 88 – 90

Recover – copper (%) 88 – 90

New Afton 2012 Guidance

Appendix 3


Processing Mining G&A

Operating costs

• Operating costs ~$25 per tonne in first five months of commercial production(1)

– Life-of-mine average ~$18 - $22 per tonne

2012 by-product cash cost(2)

($1,200) - ($1,300) per ounce

2012 co-product cash cost(3)

$630 - $650 per ounce,

$1.35 - $1.45 per pound

• Costs expected to be lower in future years as ‘per tonne’ cost reaches steady-state level

– Life-of-mine average by-product cost ~($1,750)(4)

– Life-of-mine average co-product costs(4) of ~$525 per ounce gold and ~$1.15 per pound copper

Notes: 1. Includes treatment and refining charges and assumes parity Canadian/U.S. dollar foreign exchange rate.

2. Assumes $3.50 per pound copper price and parity Canadian/U.S. dollar foreign exchange rate.

3. Co-product costs calculated on a percentage of revenue basis and assume a gold price of $1,600 per ounce.

4. Based on assumption of $1,600 per ounce gold, $3.50 per pound copper and a parity foreign exchange rate.

~$4.60/t ~$6.20/t

~$9.20/t

Appendix 3


Cross

Section Looking East

Long Section Looking South

• 3 phase underground core drilling program totaling 40,000 meters commencing Q3 2012

• Phase 1: ~15,000 meters to delineate eastern limits of C-zone and assess potential to lower block cave

extraction level for B3 reserve block - estimated completion by end Q1’13

• Phases 2 & 3: ~25,000 meters to explore extensions to west and at depth - estimated completion Q4’13

C Zone Resource (2010)

Tonnes

000’s

Au

g/t

Cu

%

Gold

Koz

Copper

Mlbs

M&I 3,637 0.78 0.96 92 76

Inferred 11,317 0.60 0.75 218 186

New Afton – C Zone exploration

Appendix 3


El Morro (30%) – funding structure(1)

Appendix 4

• New Gold’s 30% share of development capital 100% carried

– Interest fixed at 4.58%

Notes: 1. Based on 2011 Feasibility Study.

Total Capital

100%

~ $3.9 billion

100% Average annual

cash flow

70% 30%

70% ~ $2.7 billion

Funded by

$1.2 billion

interest at 4.58%

30%

80%

20%

Carried funding repayment


Selected porphyry gold/copper deposits/mines(1)

Appendix 4

$51/t

$49/t

$42/t$38/t

$29/t

$27/t

$24/t

$40/t

--

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70%

Source: Company disclosure.

Notes: 1. Circle sizes are representative of contained metal value of the reserves per tonne of reserve. Contained metal value calculated using Street research consensus long-term commodity pricing.

2. Includes “Cadia East Underground” and “Ridgeway Underground” reserves as indicated in Newcrest’s February 10, 2012 press release; does not include “Other” Cadia province reserves.

El Morro

Gold

Grade

(g/t)

Copper

Grade

(%)

Agua Rica Alumbrera Cadia-Ridgeway Cerro Casale

Chapada Cobre Panama El Morro Mt. Milligan

(2)


AssetGold Reserves

(Moz)Asset Gold Equivalent

(2)

(Moz)

Penasquito 16.5 Penasquito 45.2

Pueblo Viejo 10.1 El Morro 15.4

Los Filos 7.8 Pueblo Viejo 11.8

El Morro 5.8 Los Filos 8.7

Cerro Negro 4.5 Cerro Negro 5.2

El Morro relative positioning(1)

Appendix 4

Notes: 1. Based on Goldcorp and Barrick’s December 31, 2011 year-end resource statements.

2. Gold equivalent calculated based on the following commodity prices: Gold - $1,595/oz; Silver - $28.75/oz; Copper - $3.50/lb; Lead - $0.88/lb; Zinc - $0.86/lb.

El Morro within Goldcorp portfolio

• El Morro would represent 4th largest gold equivalent(2) reserve for Barrick


March 2011

Initial Resource

September 2011

Resource update

Year-end 2011

Resource update

March 2012

Resource update

December 31, 2010 77 24,563

July 31, 2011 148 49,223

November 30, 2011 218 67,848

December 31, 2011 261 89,460

March 5, 2012 328 115,950

Assay cut-off date Cumulative number

of holes

Cumulative number

of metres

April 2012

2012 assays received

Blackwater drill program

Appendix 5


Blackwater benchmarking comparable projects

• The below provides high level benchmarking of various other Canadian bulk tonnage operations(1)

Range

Targeted throughput (tpd) 55,000 – 60,000

Strip ratio(2) (waste:ore) 2.27 – 3.89

Development capital per 1,000 tpd(2) (million) $18 - $26

Mining cost (per tonne mined) $1.30 - $1.83

Processing cost(2) (per tonne milled) $5.71 - $6.66

G&A (per tonne milled) $0.72 - $1.22

Power cost (Kwh) ~$0.044

Notes: 1. Benchmark group includes: Canadian Malartic, Detour Lake, and Mount Milligan. Figures from company disclosures including news releases and investor presentations related to project parameters.

2. Includes only Canadian Malartic and Detour Lake as gold-focused projects.

Appendix 5


Blackwater Resource Growth - March 2011

March 2011

Indicated Inferred

Mt Au g/t Mt Au g/t

53.4 1.06 75.4 0.96

1.8 Moz 2.3 Moz

$1000 pit shell

Cumulative Drilling

Holes Metres

77 24,563

Appendix 5


Blackwater Resource Growth - September 2011

Appendix 5

September 2011

Indicated Inferred

Mt Au g/t Mt Au g/t

165.2 1.01 38.8 0.94

5.3 Moz 1.2 Moz

$1200 pit shell

$1000 pit shell

Cumulative Drilling

Holes Metres

148 49,223


Blackwater Resource Growth – Year-end 2011

Appendix 5

Year-end 2011

Indicated Inferred

Mt Au g/t Mt Au g/t

163.6 1.03 69.3 0.84

5.4 Moz 1.9 Moz

$1300 pit shell

$1200 pit shell

$1000 pit shell

Cumulative Drilling

Holes Metres

218 67,848


Blackwater Resource Growth – March 2012

Appendix 5

March 2012

Indicated Inferred

Mt Au g/t Mt Au g/t

174 0.98 92 0.78

5.5 Moz 2.3 Moz

$1000 pit shell

$1200 pit shell

$1300 pit shell

Cumulative Drilling

Holes Metres

261 89,460


Blackwater Resource Growth – April 2012

Appendix 5

April 17th, 2012 News Release

March 7th, 2012 News Release

2012 PEA Resource


Blackwater Block Model – March 2012

Appendix 5


BW Section 5892,800N – March’12 PEA Block Model

Appendix 5

Looking North

$1300/oz Au

pit shell


BW Section 5892,800N – Geology & Drilling

Appendix 5

Volcanic

Breccia

Andesite Andesite

Sediments

Rhyolite

Glacial Till

$1300/oz Au

pit shell


BW Section 375,500E – PEA Block Model

Appendix 5

Looking West


BW Section 375,500E – Geology & Drilling

Appendix 5

Volcanic

Breccia Andesite

2012 holes labeled in

Red


Blackwater regional exploration

Appendix 5

17


Reserves and resource notes

Tonnes

000's

Gold

g/t

Silver

g/t

Copper

%

Gold

Koz

Silver

Koz

Copper

Mlbs

Mesquite

Proven 14,548 0.67 - - 313 - -

Probable 138,796 0.55 - - 2,448 - -

Mesquite P&P 153,345 0.56 - - 2,762 - -

Cerro San Pedro

Proven 23,972 0.58 16.99 - 447 13,091 -

Probable 35,267 0.49 15.30 - 559 17,352 -

Cerro San Pedro P&P 59,239 0.53 15.98 - 1,006 30,443 -

Peak

Proven 1,608 6.33 8.4 0.82 327 434 29

Probable 1,811 4.80 6.7 0.92 279 390 37

Peak P&P 3,419 5.50 7.5 0.87 606 824 66

New Afton

Proven - - - - - - -

Probable 47,900 0.64 2.0 0.90 986 3,080 954

New Afton P&P 47,900 0.64 2.0 0.90 986 3,080 954

El Morro 30%

Proven 308,036 0.58 - 0.57 1,716 - 1,153

Probable 212,167 0.38 - 0.51 787 - 715

El Morro P&P 520,024 0.50 - 0.54 2,503 - 1,868

Metal grade Contained metal

Mineral Reserves statement as at December 31, 2011

100%

Appendix 6


Reserves and resource notes (cont’d)

Appendix 6

Tonnes

000's

Gold

g/t

Silver

g/t

Copper

%

Zinc

%

Lead

%

Gold

Koz

Silver

Koz

Copper

Mlbs

Zinc

Mlbs

Lead

Mlbs

Mesquite

Measured - oxide 19,182 0.51 - - - - 316 - - - -

Indicated - oxide 269,872 0.39 - - - - 3,407 - - - -

Mesquite M&I - oxide 289,054 0.40 - - - - 3,723 - - - -

Measured - non oxide 4,688 0.91 - - - - 137 - - - -

Indicated - non oxide 79,851 0.65 - - - - 1,674 - - - -

Mesquite M&I - non oxide 84,539 0.66 - - - - 1,811 - - - -

Total Mesquite 373,594 0.46 - - - - 5,534 - - - -

Cerro San Pedro

Measured - open pit oxide 25,722 0.44 15.36 - - - 367 12,706 - - -

Indicated - open pit oxide 55,647 0.31 12.28 - - - 546 21,976 - - -

CSP M&I - open pit oxide 81,369 0.35 13.26 - - - 913 34,682 - - -

Measured - open pit sulphide 13,317 0.54 13.60 - 0.64 0.10 232 5,823 - 187 29

Indicated - open pit sulphide 46,697 0.44 10.23 - 0.55 0.08 667 15,355 - 566 77

CSP M&I - open pit sulphide 60,014 0.47 10.98 - 0.57 0.08 899 21,178 - 753 106

Total CSP M&I - open pit 1,812 55,860

Peak

Measured 3,092 4.89 7.3 1.14 - - 486 726 78 - -

Indicated 3,697 3.89 7.1 1.09 - - 462 844 89 - -

Peak M&I 6,789 4.30 7.2 1.11 - - 948 1,570 167 - -

New Afton

Measured 36,500 0.90 2.7 1.24 - - 1,058 3,194 1,002 - -

Indicated 33,300 0.64 2.1 0.80 - - 685 2,276 584 - -

New Afton M&I 69,800 0.78 2.4 1.03 - - 1,742 5,470 1,586 - -

Blackwater

Blackwater Indicated 174,407 0.98 4.6 - - - 5,467 25,794 - - -

Capoose Indicated 31,216 0.38 26.5 - - - 384 26,594 - - -

El Morro

Measured - open pit 343,088 0.55 - 0.54 - - 1,836 - 1,233 - -

Indicated - open pit 333,312 0.35 - 0.44 - - 1,117 - 960 - -

El Morro M&I - open pit 676,400 0.45 - 0.49 - - 2,954 - 2,193 - -

Metal grade

100% 30%

Measured and Indicated mineral Resource statement (inclusive of Reserves) as at December 31, 2011

Contained metal



Appendix 6

Tonnes

000's

Gold

g/t

Silver

g/t

Copper

%

Zinc

%

Lead

%

Gold

Koz

Silver

Koz

Copper

Mlbs

Zinc

Mlbs

Lead

Mlbs

Mesquite 38,633 0.41 - - - - 512 - - - -

Cerro San Pedro

Inferred - open pit oxide 40,355 0.17 8.55 - - - 214 11,091 - - -

Inferred - open pit sulphide 24,736 0.47 7.40 - 0.50 0.07 374 5,882 - 271 39

588 16,972 - 271 39

Manto Underground sulphides 6,270 1.83 94.51 - 3.09 1.09 368 19,052 - 427 151

Peak 3,147 2.56 4.8 1.54 - - 259 486 107 - -

New Afton 29,200 0.51 1.6 0.61 - - 483 1,478 390 - -

Blackwater

Blackwater 91,566 0.78 3.8 - - - 2,282 11,187 - - -

Capoose 37,256 0.37 24.6 - - - 443 29,518 - - -

100% 30%

El Morro

Open pit 637,495 0.10 - 0.25 - - 605 - 1,045 - -

Underground 128,280 0.97 - 0.78 - - 1,205 - 660 - -

El Morro Inferred 1,810 1,705

Inferred Resource statement as at December 31, 2011

Metal grade Contained metal



Mineral reserves are contained within measured and indicated mineral resources. Measured and indicated mineral resources that are not mineral reserves do not have demonstrated economic

viability as defined by a technical feasibility study. Inferred mineral resources are not known with the same degree of certainty as measured and indicated resources, do not have demonstrated

economic viability, and are exclusive of mineral reserves. Mineral Reserves have been estimated and reported in accordance with the CIM Standards and National Instrument 43-101, or the

AusIMM JORC equivalent.

1) Mineral Reserves for the company’s mining operations and development projects have been calculated based on the following metal prices and lower cut-off criteria:

Mineral Property Gold (US$/oz) Silver (US$/oz) Copper (US$/lb) Lower Cut-off

Mesquite $1,200 - - 0.21 g/t Au – Oxide reserves

0.41 g/t Au – Non-oxide reserves

Cerro San Pedro $1,200 $20.00 - US$3.49/t NSR

Peak Mines $1,300 $25.00 $2.75 A$130 – 184/t NSR

New Afton $1,200 $20.00 $2.50 US$24/t NSR

El Morro $1,200 - $2.75 0.20% Cu

Appendix 6



2) Mineral Resources for the company’s mining operations and development projects have been calculated based on the following metal prices and lower cut-off criteria:

Mineral resources have been estimated and reported in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101, or the

AusIMM JORC equivalent.

Mineral Property Gold

(US$/oz)

Silver

(US$/oz)

Copper

(US$/lb)

Zinc

(US$/lb)

Lead

(US$/lb)

Lower Cut-off

Mesquite $1,300 - - - - 0.11 g/t Au – Oxide resources

0.22 g/t Au – Non-oxide resources

Cerro San Pedro $1,300 $24.00 - $1.00 $1.00 0.1g/t AuEq – Oxide resources

0.4g/t AuEq – Open pit Sulphide resources

2.5g/t AuEq – Underground manto resources

Peak Mines $1,300 $24.00 $2.75 $0.85 $0.65 A$103 - 137/t NSR

New Afton $1,300 $24.00 $2.75 - - 0.40% CuEq – All resources

El Morro $1,350 - $3.25 - - 0.15% Cu – Open pit resources

0.20% Cu – Underground resources

Blackwater $1,300 - - - - 0.40 g/t Au – All resources

Capoose $1,025 - - - - 0.40 g/t AuEq – All resources

3) Mineral resources are classified as measured, indicated and inferred resources and are reported based on technical and economic parameters consistent with the methods most suitable for

their potential extraction and mineral processing. Where different mining and/or processing methods might be applied to different portions of a mineralized system or metal deposit, the

designators ‘open pit’ and ‘underground’ have been applied to indicate likely mining method. Likewise the designators ‘oxide’, ‘non-oxide’ and ‘sulfide’ have been applied to indicate the type of

mineralization as it applies to appropriate mineral processing method and expected payable metal recoveries. Additional details regarding mineral resource estimation, classification and

reporting parameters for each of New Gold’s mines and projects are provided in the respective NI 43-101 Technical Reports and available on SEDAR.

4) Qualified Person: The preparation of New Gold’s mineral reserve and resource statements has been done by Qualfied Persons as defined under Canadian under National Instrument 43-101

under the oversight and review of Mark Petersen, a Qualified Person under National Instrument 43-101 and employee of New Gold.

Appendix 6


Commodity price/foreign exchange assumptions

Guidance/consensus:

Spot:

2012 2013 2014

Gold price ($/oz) 1,600 1,760 1,600

Silver price ($/oz) 30.00 34.38 30.00

Copper price ($/oz) 3.50 3.85 3.50

USD/AUD 1.00 1.01 0.96

USD/CAD 1.00 1.00 1.01

USD/MXN 13.00 12.35 12.50

Spot

Gold price ($/oz) 1,570

Silver price ($/oz) 27.00

Copper price ($/oz) 3.35

USD/AUD 1.00

USD/CAD 0.97

USD/MXN 13.85

Appendix 7


Contact information

Investor Relations

Hannes Portmann

Vice President, Corporate Development

416-324-6014

[email protected]