Highlights about New Gold's Minera San Xavier-Cerro San Pedro MIne

Minera San Xavier’s Cerro San Pedro MineDecember 2009

www.newgold.com TSX/NYSE AMEX US: NGD 2

New Gold – A Responsible International Mining Company

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

New Gold – A Significant International Mining Company

Gold producer headquartered in Canada

Portfolio of mining assets in the United States, Mexico, Australia, Canada, Brazil and Chile

Employs latest technology to assure maximum value to all stakeholders

Committed to operating in a socially responsible and sustainable manner

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Total 2009 YTD revenue US $192 million; US$81 million from Cerro San Pedro


New Gold - A Canadian Company with International Standards

Member of UN Global Compact

Member of CBSR – Canadian Business for Social Responsibility

Supporter of Clinton Giustra Sustainable Growth Initiative

Achieved ISO 14001:2004 certification of environmental management systems in 2008 and recertification in 2009 at Cerro San Pedro

Received Orica World Prize for operating best practices with the use of explosives

Obtained the Casco de Plata, CAMIMEX’s national award for best safety performance in 2007and 2008

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New Gold - Management & Board of Directors

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EXECUTIVE MANAGEMENT TEAM

BOARD OF DIRECTORS

Randall Oliphant, Executive Chairman (Former President & CEO, Barrick Gold Corporation )

Robert Gallagher, President and CEO (Former Vice President, Newmont Mining Corp)

Brian Penny, Executive VP and CFO (Former VP Finance, Kinross Gold Co.)

James Currie, Executive VP and COO (Former VP Operations Miramar Mining)

James Estey, Director, Chairman (Former President, UBS Securities Canada Inc.)

Robert Gallagher, CEO & Director

Vahan Kololian, Director (Chairman, Precinda Corporation)

Martyn Konig, Director (Board Director of NM Rothschilds and Sons Ltd and CEO European Goldfields)

Pierre Lassonde, Director (Founder and Chairman, Franco-Nevada)

Craig Nelsen, Director (Former Executive VP Exploration at Gold Fields Limited)

Randall Oliphant, Executive Chairman and Director

Ian Telfer, Director (Chairman, Goldcorp)

Raymond Threlkeld, Director (Former President & CEO, Western Goldfields)


New Gold - Vision and Mission Statements

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Vision: To become a million ounce, low cost gold producer

Mission:

Achieve our vision by:

- Delivering on operational targets (safety, cost, production and environment & social responsibility)

- Growing internally through project development and continuous improvement at our existing operations

- Growing externally through continued consolidation

- Maintaining a strong financial position

WHERE THE COMPANY IS GOING, HOW IT WILL GET THERE


New Gold - Employee Values

Integrity – do what’s right

Creativity – lead with innovation

Commitment - deliver

Develop our employees – commit to personal development

Teamwork – leverage our collective skills

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EMPLOYEES COMMITMENT ON HOW THEY WILL GO ABOUT THEIR WORK


GLOBALLY DIVERSIFIED IN MINING-FRIENDLY JURISDICTIONS

• Diversified gold production base

• Market capitalization C$1.5 billion

• Total assets (as at September 31, 2009) US$2.5 billion

• Total production (9 months ended September 31, 2009)

• Gold 190,000 ounces

• Silver 1.2 million ounces

• Copper 11 million pounds

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New Gold - Principal Assets

Producing Mines

Development Projects

Undergoing Strategic Review

Peak

Australia

2009 Production

•Gold (K oz) 90-100

•Copper (m lb) 13-15

El Morro

Chile

LOM Annual Production

•Gold (K oz) 95

•Copper (m lb) 105

Cerro San Pedro

Mexico

2009 Production

•Gold (K oz) 90-100

•Silver (m oz) 1.1 – 1.3

New Afton

Canada

LOM Annual Production

•Gold (K oz) 85

•Copper (m lb) 75

Mesquite

United States

2009 Production

•Gold (K oz) 140-150

Amapari

Brazil

Suspended

operation


New Gold - Operating Assets

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Cerro San Pedro

Location Mexico

Mine Type Open Pit

Commenced Production 2008

Estimated Mine Life ~ 9 years

Gold Production ‘09 Guidance oz 90,000 -100,000

Future UpsideCompleted sulfide exploration program with 30 drill holes

Mesquite

Location United States

Mine Type Open Pit


Estimated Mine Life 13 years


Future Upside

1 million ounce sulfide resource below current pit –exploring processing alternatives


New Gold - Operating Assets

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Peak Mines

Location Australia

Mine Type Underground


Estimated Mine Life ~ 8 years


Future Upside

Potential for additionalfuture targets around Peak’s currently existing underground ore body and in the surrounding region


New Gold - Development Projects

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New Afton

Location Canada

Mine type Underground

Estimate Production start-up 2012

Estimated mine life 12 years

LOM Production/yr (Au oz/Cu lbs) 85,000/75million

Future Upside

Potential for additional blocks currently included in mine plan

El Morro (30%)

Location Chile

Mine type Open Pit

Estimated mine life 15 years

LOM Production/yr (Au oz/Cu lbs)4 95,000/105million

Future Upside

Swap New Gold’s stake for a gold producing asset, develop the asset or sell 30% interest



Minera San Xavier’s Cerro San Pedro

1995 – Metallica Resources acquired Minera San Xavier

1999 – Original EIS MIA granted

2004 to 2007 – Development and Construction Stages

2007 (May) – Production commences

2008 (July) – New Gold acquired MSX through business combination with Metallica Resources and Peak Gold

2008 – Cerro San Pedro awarded CAMIMEX’s Plato del Oro for being the safest mine of its size

2008 – Received Orica’s World Prize for best practices in use of explosives in open pit mines

2008 - Achieved ISO14001 certification of its environmental management systems

2009 – Production estimated to be 90,000 – 100,000 ounces gold and 1.1 to 1.3 million ounces silver

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Cerro San Pedro - Economic Impact

MSX’s Cerro San Pedro commenced production in 2008 with an estimated mine life of 10 years

In 2009, Cerro San Pedro will produced 90,000 – 100,000 ounces gold and 1.1 to 1.3 million ounces of silver for exportation, which should bring in excess of US$100 million into the country

MSX employs 509 employees and contractors at the Cerro San Pedro; 60% from the immediate surrounding area with the remainder living in San Luis Potosi. Indirect employment totals more than 1,500 people

MSX expects to spend US$6.5 million on employee wages and benefits at Cerro San Pedro this year

Regional expenditure directly benefitting the surrounding area in 2008 was approximately US$49 million

Corporate income taxes paid in Mexico in 2008 were US $2.5 million and will be approximately US $10 million in 2009 and over the remaining projected life of mine will amount to over US$115 million

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The company has invested in excess of US$105 million in capital expenditures since the project’s inception


Cerro San Pedro - Corporate Social Responsibility

MSX has improved the local environment and preserved the historic character of the town

Local residents appreciate the benefits that the mine brings to them

Cleaned up mining waste abandoned by previous miners

Built new homes and schools for residents

Rehabilitated historic churches that had suffered from many decades of neglect and built a new residence for the priest of San Nicolas church

Provide weekly medical and dental care for 10 villages immediately surrounding MSX

Provided trade skills training

Equipped schools with computers

Supported cultural festivals

The site’s nursery has so far yielded more than 75,000 plants for use in reclamation and agriculture

MSX reforested 52 hectares with 56,000 plants in the Monte Caldera area in 2008

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New Gold – Generating Wealth in a Sustainable Manner

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Committed to excellence in the management of health, safety, environment and sustainability

Ensure health and safety of employees, contractors and visitors

Prevent pollution

Minimize impact that mining operation may cause the environment

Demonstrate our commitment to fostering sustainable communities

Practice the progressive rehabilitation of areas impacted by its activities

Follow recognized international guidelines



New Gold and MSX Contact Information

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New Gold Media and Communications

Christine Marks

Investor Relations and External Communications Coordinator

New Gold Inc.

(604)639-0023

[email protected]


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 words “expects”, “does not expect”, “plans”, “anticipates”, “does not

anticipate”, “believes”, “intends”, “estimates”, “projects”, “potential”, ”scheduled”, “forecast”, “budget” and similar expressions, or that events or conditions “will”, “would”, “may”, “could”,

“should” or “might” occur. All such forward looking statements 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 that are inherently subject to known and unknown risks, uncertainties and other factors that may cause

New Gold’s 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, Brazil, 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, Brazil, 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 Cerro San

Pedro Mine; the lack of certainty with respect to the Mexican 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; 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 “Risks Factors” included in New Gold’s Annual Information Form filed on March 31, 2009 and Management Information Circular filed on April 15, 2009, both

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.

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Cautionary Statement

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Highlights about New Gold's Minera San Xavier-Cerro San Pedro MIne