New Gold Announces 2013 Financial Results Finishing the Year with Highest Quarterly Cash Flow

  New Gold Announces 2013 Financial Results Finishing the Year with Highest
                             Quarterly Cash Flow

PR Newswire

VANCOUVER, Feb. 27, 2014

(All figures are in US dollars unless otherwise indicated)

VANCOUVER, Feb. 27, 2014 /PRNewswire/ - New Gold Inc. ("New Gold") (TSX:NGD)
and (NYSE MKT:NGD) today announces fourth quarter and full-year 2013 financial
and operational results, delivering the lowest annual total cash costs^(1) in
the company's history. The company previously released its preliminary
operational results on February 6, 2014.

                  Fourth Quarter and Full-Year 2013 Overview
  *Fourth quarter 2013

       *Adjusted net cash generated from operations^(2) of $93 million, or
         $0.19 per share
       *Adjusted net earnings^(3) of $17 million, or $0.04 per share
       *Net loss of $255 million, or $0.51 per share, including an after-tax
         impairment charge of $206 million
       *Highest production quarter of 2013 - 106,520 ounces of gold and 24.0
         million pounds of copper
       *Low total cash costs^(1) of $316 per ounce and all-in sustaining
         costs^(4) of $883 per ounce

  *Full-year 2013

       *Adjusted net cash generated from operations^(2) of $249 million, or
         $0.51 per share
       *Adjusted net earnings^(3) of $61 million, or $0.13 per share
       *Net loss of $191 million, or $0.39 per share, including an after-tax
         impairment charge of $206 million
       *Production - 397,688 ounces of gold, 85.4 million pounds of copper
         and 1.6 million ounces of silver
       *Costs - total cash costs^(1) of $377 per ounce, the lowest in New
         Gold's history, and all-in sustaining costs^(4) of $899 per ounce

  *Successfully completed the acquisition of Rainy River Resources Ltd.

       *Targeted commissioning in late 2016 with first year of full
         production in 2017

  *Cash and cash equivalents of $414 million

"We are proud to have  generated over $90 million of  cash flow in the  fourth 
quarter, bringing  what was  a challenging  year to  a strong  close,"  stated 
Randall Oliphant, Executive Chairman.  "We now look forward  to 2014 where  we 
have targeted a further decrease in costs, from what was already a record  low 
for our company, which will  drive continued cash flow generation.  Currently, 
we feel particularly well  positioned as the  start of the  year has seen  the 
appreciation of the gold price coupled with the continued depreciation of  the 
Canadian dollar which significantly  benefit the value of  both our New  Afton 
Mine and our Canadian-based development projects."

                          Financial Results Overview

     New Gold 2013 Fourth Quarter and Full-Year Summary Financial Results
                                  Three months ended  Twelve months ended
                                        December 31,         December 31,
(in millions of U.S. dollars;     
except per share amounts)                  2013     2012        2013     2012
                                                                     
Revenues                              $198.4   $250.9      $779.7   $791.3
                                                                     
Operating Margin^(5)                    76.7    145.7       344.2    447.0
                                                                     
Net Earnings/(Loss)                  (254.7)    123.9     (191.2)    199.0
Net Earnings/(Loss) per Share         (0.51)     0.26      (0.39)     0.43
                                                                     
Adjusted Net Earnings^(3)               16.7     49.7        61.3    183.5
Adjusted Net Earnings per         
Share^(3)                                  0.04     0.11        0.13     0.40
                                                                     
Net Cash Generated from           
Operations                                 99.7    106.2       171.9    235.8
Adjusted Net Cash Generated       
from Operations^(2)                        93.2    106.2       248.9    235.8

Revenue during the fourth quarter was primarily impacted by the decrease in
the average realized prices of gold, copper and silver. When compared to the
fourth quarter of 2012, the average realized gold price decreased by 22%, the
copper price by 8% and the silver price by 38%. Copper sales volumes increased
when compared to the prior year quarter, however, gold and silver sales
volumes were down slightly. In 2013, the average realized gold price decreased
by 14%, the copper price by 9% and the silver price by 25%, when compared to
2012. For the full year, New Gold's revenue generation remained similar to
2012 despite lower commodity prices as the price impact was offset by
increased copper sales volumes due to a full year of production from the New
Afton Mine.

Operating margin^(5)  in both  the fourth  quarter and  full-year periods  was 
impacted by lower contributions  from Mesquite, the Peak  Mines and Cerro  San 
Pedro when  compared  to the  same  periods of  the  prior year.  New  Afton's 
operating margin^(5) in the fourth quarter remained consistent with the  prior 
year period as  increased gold and  copper sales volumes  and lower  operating 
expenses offset lower realized  gold and copper prices.  In 2013, New  Afton's 
operating margin^(5) increased by  163% as the mine  completed its first  full 
year of operation. During  both the quarter and  full-year periods, the  lower 
contributions from Mesquite and Cerro San  Pedro were due to a combination  of 
lower commodity  prices,  lower gold  sales  volumes and  increased  operating 
expenses. At Cerro San Pedro, a pre-tax  charge of $7 million was included  in 
operating expenses to reduce  the carrying value of  the portion of  long-term 
silver inventory that  is not  expected to  be recovered  during the  residual 
leaching period at  the mine. The  Peak Mines delivered  a strong  operational 
performance during the fourth quarter and full year with gold and copper sales
volumes meeting or  exceeding the  prior year levels;  however, its  operating 
margin^(5) was negatively impacted by lower realized gold and copper prices.

The company reported a net  loss of $255 million, or  $0.51 per share, in  the 
fourth quarter and  a net loss  of $191 million,  or $0.39 per  share, in  the 
full-year period.  The  reported  net  loss  in  both  periods  was  primarily 
attributable to an after-tax impairment charge of $206 million. The impairment
charge at Cerro San Pedro, which accounted for the vast majority of the  total 
charge, primarily related  to bringing down  the value ascribed  to Cerro  San 
Pedro's mineral reserves and resources as  part of the purchase accounting  at 
the time of the  company's three-way merger in  2008. The resources that  were 
most impacted  were those  at  the base  of the  current  open pit.  As  these 
resources  would  require  a  deeper  extension  of  the  open  pit  mine  and 
construction of a  new processing facility  to realize sufficient  recoveries, 
New Gold concluded that the economic returns were not sufficiently  compelling 
and thus opted not to pursue the development of this area.

Other elements  leading  to  the  reported net  loss  in  the  fourth  quarter 
included:  a   $7  million   non-cash  accounting   charge  related   to   the 
reclassification of  Other  Comprehensive  Income  to  earnings  as  the  loss 
incurred on the monetization of the company's legacy hedge position in May  of 
2013 is realized into income over the original term of the hedge contracts,  a 
non-cash $14  million pre-tax  loss on  foreign exchange,  and $2  million  in 
redundancy charges from  labour force  reductions at  New Afton  and the  Peak 
Mines. Adjusted net earnings^(3)  in the fourth quarter  were $17 million,  or 
$0.04 per share.

For the full year,  additional factors that  impacted the company's  financial 
results included: an increase in exploration and business development expenses
driven by  the successful  Rainy  River acquisition,  an increase  in  finance 
costs,  a   $19   million   non-cash  accounting   charge   related   to   the 
reclassification of  Other  Comprehensive  Income  to  earnings  as  the  loss 
incurred on the monetization of the company's legacy hedge position in May  of 
2013 is realized into income over the original term of the hedge contracts,  a 
non-cash $26  million pre-tax  loss on  foreign exchange,  and $5  million  in 
non-recurring transaction costs related to  the Rainy River acquisition.  This 
was partially offset by  a non-cash $49  million pre-tax gain  on the mark  to 
market of the company's share purchase  warrants. Adjusted net earnings ^  (3) 
in 2013 were $61 million, or $0.13 per share.

New Gold's fourth quarter net cash generated from operations was the company's
highest of the year  at $100 million  and remained similar  to the prior  year 
quarter despite  the  significant  decline in  commodity  prices.  The  fourth 
quarter net cash generated from operations included a $7 million non-recurring
benefit related to tax refunds from prior year periods. For the full year, net
cash generated from operations was $172 million, which included  non-recurring 
cash expenditures of $66  million related to the  settlement of the  company's 
legacy gold hedge position in May of  2013 and a total of $18 million  related 
to  the  acquisition  of  Rainy  River.  This  was  partially  offset  by  the 
above-noted $7 million of  tax refunds related to  prior periods. Taking  into 
account these one-time items,  adjusted net cash  generated from operations  ^ 
(2) for the full year was $249 million, representing a 6% increase over  2012. 
Beyond the items  noted above,  the increase  in full-year  adjusted net  cash 
generated from operations^(2)  was driven by  a $62 million  decrease in  cash 
taxes paid and a $35 million favourable movement in working capital. New  Gold 
is particularly  proud to  have delivered  an increase  in adjusted  net  cash 
generated from  operations^(2) given  the decline  in prices  of each  of  the 
commodities the company produces during 2013.

                         Production and Cost Results
                                                                             
    New Gold 2013 Fourth Quarter and Full-Year Summary Operational Results
                                  Three months ended  Twelve months ended
                                        December 31,         December 31,
                                       2013     2012       2013      2012
Gold Production (thousand         
ounces)                                                                  
New Afton                               25.2     22.8       87.2      36.8
Mesquite                                34.9     29.2      107.0     142.0
Peak Mines                              24.2     28.8      100.7      95.5
Cerro San Pedro                         22.2     32.1      102.8     137.6
Total Gold Production                  106.5    112.9      397.7     411.9
                                                                     
Total Gold Sales                       104.5    109.8      391.8     395.5
Average Realized Gold Price ($    
per ounce)                               $1,233   $1,578     $1,337    $1,551
                                                                     
Silver Production (thousand       
ounces)                                                                  
New Afton                               54.8     43.1      192.5      82.5
Peak Mines                              31.2     31.9      112.2     136.8
Cerro San Pedro                        297.5    401.3    1,300.6   1,938.5
Total Silver Production                383.5    476.3    1,605.3   2,157.8
                                                                     
Total Silver Sales                     378.9    489.3    1,572.3   2,082.0
Average Realized Silver Price     
($ per ounce)                            $20.10   $32.36     $23.16    $30.87
                                                                     
Copper Production (million        
pounds)                                                                  
New Afton                               20.5     17.3       72.0      28.5
Peak Mines                               3.5      3.6       13.4      14.4
Total Copper Production                 24.0     20.9       85.4      42.8
                                                                     
Total Copper Sales                      23.8     19.8       82.6      35.6
Average Realized Copper Price
($ per pound)                          $3.24    $3.52      $3.24     $3.56
                                                                     
Total Cash Costs^(1) ($ per       
ounce)                                                                   
New Afton                           ($1,428) ($1,067)   ($1,196)  ($1,043)
Mesquite                                $841     $787       $907      $690
Peak Mines                              $778     $743       $850      $764
Cerro San Pedro                         $911     $320       $676      $232
Total Cash Costs^(1)                    $316     $254       $377      $421
                                                                     
All-in Sustaining Costs^(4) ($    
per ounce)                                                               
New Afton                                $12     $168     ($133)      $358
Mesquite                                $988     $920     $1,108      $768
Peak Mines                            $1,106   $1,309     $1,331    $1,360
Cerro San Pedro                       $1,076     $458       $766      $358
All-in Sustaining Costs^(4)             $883     $823       $899      $827

New Afton's co-product costs^(1) were $391 per ounce gold and $1.08 per pound
copper in the fourth quarter of 2013 relative to $601 per ounce gold and $1.28
per pound copper in the prior year quarter. In 2013, the co-product costs^(1)
were $486 per ounce gold and $1.19 per pound copper, down from $656 per ounce
gold and $1.40 per pound copper in 2012.

New Gold previously released its fourth quarter and full-year 2013 operational
results on February 6, 2014.

Gold Production

Consistent with  the  company's  plans,  the fourth  quarter  was  New  Gold's 
strongest of the year, enabling the company to deliver at the high end of  its 
updated  2013  full-year  outlook  of  390,000  to  400,000  ounces  of   gold 
production.

When compared  to the  fourth quarter  of 2012,  production at  New Afton  and 
Mesquite increased due to higher ore tonnes processed and higher grades, while
Cerro San Pedro and the Peak Mines were impacted by a combination of lower ore
tonnes processed and lower grades.

For the full  year, production  at New Afton  exceeded the  guidance range  of 
75,000 to 85,000 ounces and the Peak Mines met the guidance range of 95,000 to
105,000 ounces. During 2013, production at Mesquite was impacted by the mining
of lower  than anticipated  grades and  by  the combination  of the  pit  wall 
movement  and  lower  recoveries  at  Cerro  San  Pedro.  After  facing  these 
challenges in the second half of  2013, Mesquite and Cerro San Pedro  combined 
to meet their updated full-year production outlook.

Copper Production

New Gold's consolidated copper production during the fourth quarter  increased 
by 15%  when  compared  to  the  same period  of  the  prior  year.  Full-year 
production was double  that of  the prior  year and met  the high  end of  the 
copper guidance range,  set at  the beginning  of 2013,  of 78  to 88  million 
pounds. The increase in both periods was primarily attributable to New Afton's
strong ramp-up  after  the mine  successfully  commenced production  ahead  of 
schedule in mid-2012.

Silver Production

Silver production in both the fourth quarter  and full year was below that  of 
the same periods of the  prior year due to a  combination of fewer ore  tonnes 
being placed on the pad and lower silver grades.

Total Cash Costs^(1) and All-in Sustaining Costs^(4)

In both  the fourth  quarter  and full-year  periods,  New Gold  continued  to 
deliver its production at among the  lowest costs in the industry. New  Gold's 
2013 total cash costs^(1) of  $377 per ounce were  in line with the  company's 
outlook and represented the lowest full-year cash costs in its history.  Also, 
in the first year of adoption of the new all-in sustaining costs^(4)  measure, 
New Gold is proud to have delivered all-in sustaining costs^(4) below $900 per
ounce, which should position the company as one of the industry leaders.

Total cash costs^(1) in the fourth quarter were $316 per ounce, with increased
copper sales  volumes and  the  depreciation of  the Canadian  and  Australian 
dollars partially offsetting lower gold sales volumes, lower silver by-product
revenue and  lower  realized  copper  prices. Total  cash  costs^(1)  in  2013 
decreased by $44 per ounce when compared to 2012, benefitting from a full year
of operation from the low-cost New Afton Mine.

Fourth quarter all-in sustaining costs^(4)  were above the prior year  quarter 
with lower costs at  New Afton and  the Peak Mines  being offset by  increased 
costs at Cerro  San Pedro and  Mesquite. All-in sustaining  costs^(4) for  the 
full year delivered on  the company's outlook  of $900 per  ounce, led by  New 
Afton where the mine's copper  revenue more than paid  for all of New  Afton's 
operating and  sustaining capital  costs despite  the decrease  in the  copper 
price when compared to 2012.

                              Projects Overview

Rainy River

One of New  Gold's key  2013 achievements  was the  successful acquisition  of 
Rainy River Resources, which  added the Rainy River  project to the  company's 
pipeline  of  exciting  development  projects.  Rainy  River  is  located   in 
northwestern Ontario, and benefits from its proximity to infrastructure.

On January 16, 2014, New Gold  announced the results of its Feasibility  Study 
for the Rainy River project.

                   Rainy River Feasibility Study Highlights
  *First nine years - average annual gold production of 325,000 ounces at
    total cash costs^(1) of $613 per ounce and all-in sustaining costs^(4) of
    $736 per ounce

       *Average mill head grade of 1.44 grams per tonne gold

  *Life-of-mine gold and silver production of 3.4 million ounces and 6.0
    million ounces at total cash costs^(1) of $663 per ounce and all-in
    sustaining costs^(4) of $765 per ounce
  *Spot economics - at $1,330 per ounce gold, $21.50 per ounce silver and a
    0.90 US$/C$ exchange rate, Rainy River has a pre-tax 5% net present value
    ("NPV") of $646 million, an internal rate of return ("IRR") of 17.0% and a
    payback period of 4.4 years
  *Development capital costs of $885 million, inclusive of a $70 million
    contingency, at a 0.95 US$/C$ exchange rate
  *Targeted commissioning in late 2016 with first year of full production in
    2017
  *14-year mine life with direct processing of open pit and underground ore,
    at a rate of 21,000 tonnes per day, for first nine years and processing of
    a combination of stockpile and underground ore thereafter

The recent depreciation  of the Canadian  dollar relative to  the U.S.  dollar 
benefits both  the project  development and  operating costs  which, in  turn, 
positively impacts  the project  economics.  When compared  to the  base  case 
Feasibility  Study  development   capital  costs  shown   above,  the   recent 
depreciation of the Canadian dollar to a 0.90 US$/C$ exchange rate, results in
approximately $45 million of development capital cost savings.

One of New  Gold's key areas  of focus during  2014 will be  on advancing  the 
permitting of the Rainy River project. The project is being reviewed through a
coordinated Federal Environmental Assessment ("EA") - Provincial Individual EA
process. The EA is  currently in the midst  of its second consultation  period 
with the Federal and  Provincial agencies, the local  First Nations and  Métis 
groups and other local communities. In  the month of March, the company  plans 
to submit purchase orders  for the mobile fleet,  the primary crusher and  the 
SAG and Ball mills, and also intends  to engage an EPCM partner who will  then 
begin detailed engineering for the project.

The Rainy  River  project enhances  New  Gold's growth  pipeline  through  its 
manageable capital  costs,  significant  production  scale  at  below  current 
industry average  costs and  good regional  exploration potential  in a  great 
mining jurisdiction. The company looks forward to providing further updates on
the advancement of Rainy River throughout 2014.

Blackwater

The company's  Blackwater  project  is located  approximately  160  kilometres 
southwest of the city of Prince  George in south-central British Columbia.  As 
previously disclosed,  New  Gold plans  to  advance the  project  through  the 
permitting phase in 2014. The company views the potential of having Blackwater
fully permitted as further enhancing the value of the project. In the  current 
commodity price environment, New Gold plans to sequence the development of its
projects with  the near-term  focus  being on  the  advancement of  the  lower 
capital cost  Rainy  River project.  Thereafter,  the timing  of  Blackwater's 
development will be  driven by  prevailing market conditions  over the  coming 
years. With the benefit of the  requisite permits for both projects, New  Gold 
believes it will be best positioned  to maximize its flexibility with  respect 
to any future development decisions.

New Gold completed the Feasibility Study for Blackwater in December of 2013.

                   Blackwater Feasibility Study Highlights
  *First nine years - average annual gold production of 485,000 ounces at
    total cash costs^(1) of $555 per ounce and all-in sustaining costs^(4) of
    $685 per ounce
  *Life-of-mine gold and silver production of 7 million ounces and 30 million
    ounces at total cash costs^(1) of $578 per ounce and all-in sustaining
    costs^(4) of $670 per ounce
  *17-year mine life with direct processing for first 14 years and processing
    of stockpile thereafter
  *Life-of-mine operational strip ratio of 1.88 to 1.00
  *Spot economics - at $1,330 per ounce gold, $21.50 per ounce silver and a
    0.90 US$/C$ exchange rate, Blackwater has a pre-tax 5% NPV of $1.4
    billion, an IRR of 14.0% and a payback period of 5.3 years
  *Development capital costs of $1,865 million, inclusive of a $190 million
    contingency, at a 0.95 US$/C$ exchange rate
  *Conventional truck and shovel open pit mine with 60,000 tonne per day
    whole ore leach processing plant

Similar to Rainy  River, Blackwater  benefits from  the depreciating  Canadian 
dollar. At Blackwater, a $0.05 movement in the US$/C$ exchange, with all other
assumptions  held  constant,   results  in  approximately   $100  million   of 
development capital cost savings.

El Morro

New Gold's share  of the  El Morro  project provides  the company  with a  30% 
fully-carried interest in an  advanced stage, world-class gold-copper  project 
in north-central Chile. Under the terms of New Gold's agreement with  Goldcorp 
Inc. ("Goldcorp"), Goldcorp  is responsible  for funding New  Gold's full  30% 
share of capital costs. The carried  funding accrues interest at a fixed  rate 
of 4.58%. New Gold will repay  its share of capital plus accumulated  interest 
out of 80% of its share of the project's cash flow with New Gold retaining 20%
of its share of cash flow from the time production commences.

As the  project's  environmental  permit is  temporarily  suspended  under  an 
injunction granted by  the Copiapo  Court of Appeals,  activities during  2014 
will continue to focus on gathering information to support permit applications
for submission following  the reinstatement  of the  environmental permit  and 
optimization of the project economics including a focus on the long-term power
supply.

                       2014 Guidance and Sensitivities

New Gold is pleased to reiterate its guidance for 2014.

                                                              
                                 New Gold 2014 Guidance
                  Gold        Copper       Silver       Total       All-in
                                                        Cash      Sustaining
                   Production     Production     Production     Costs^(1)     Costs^(4)
               (thousand     (million    (thousand     ($ per       ($ per
                    ounces)        pounds)        ounces)        ounce)         ounce)
                                                                  
New Afton                                              (1,260) -     (620 -
                   102 - 112       78 - 84       200 - 300       (1,240)        (600)
                                                                  
Mesquite                                                            1,310 -
                   113 - 123          -              -          930 - 950       1,330
                                                                  
Peak Mines                                                          1,065 -
                    95 - 105       14 - 16        50 - 150      630 - 650       1,085
                                                                  
Cerro San                                  1,100 -      1,030 -     1,125 -
Pedro               70 - 80           -            1,300          1,050         1,145
                                                                  
New Gold                                   1,350 -      $320 -       $815 -
Consolidated       380 - 420       92 - 100        1,750          $340           $835

After New Gold delivered the lowest total cash costs^(1) in its history in
2013, costs are expected to decrease by a further $35 to $55 per ounce in
2014. New Afton's 2014 co-product cash costs^(1) are forecast to be $440 to
$460 per ounce of gold and $1.10 to $1.20 per pound of copper.

Consistent with  the  expected  decrease  in cash  costs,  New  Gold  is  also 
targeting a $65 to $85 per ounce decrease in all-in sustaining costs^(4).  The 
anticipated decrease in all-in sustaining costs^(4) is driven by a combination
of the lower total cash costs^(1)  as well as decreases in sustaining  capital 
at New Afton and the Peak Mines.

Under the company's  current plans, the  second half of  2014 is scheduled  to 
have higher gold and copper production, coupled with lower costs, compared  to 
the first half of the year.

Key assumptions used  in the  2014 guidance  include gold,  silver and  copper 
prices of $1,300 per ounce, $20.00 per ounce and $3.25 per pound and  Canadian 
dollar, Australian dollar and Mexican peso exchange rates of $1.11, $1.14  and 
$13.00 to the  U.S. dollar. The  diesel price  assumed for 2014  is $3.25  per 
gallon, which is representative of recent  prices being paid at Mesquite.  The 
following table provides an  overview of the impact  on total cash  costs^(2), 
both by asset and on a consolidated basis, of movements in the above-noted key
assumptions.

                                                           
                        Total Cash Costs^(1) - Sensitivities
Category        Copper    Silver   AUD/USD   CDN/USD   MXN/USD   Diesel
                    Price      Price
Base             $3.25    $20.00    $1.14     $1.11    $13.00    $3.25
Assumption
Sensitivity       +/-      +/-       +/-       +/-       +/-      +/-
                    $0.25      $1.00       $0.05       $0.05       $1.00      $0.25
Total Cash
Costs^(1) -                                                 
Impact
                                                           
New Afton       +/-$200        -         -    +/-$65         -        -
                                                                
Mesquite              -        -         -         -         -   +/-$15
                                                                
Peak Mines       +/-$40        -    +/-$50         -         -        -
                                                                
Cerro San             -   +/-$15         -         -    +/-$50        -
Pedro
                                                                
New Gold         +/-$60    +/-$5    +/-$15    +/-$15    +/-$10    +/-$5
Consolidated

                               Financial Update

At December 31, 2013, the key components of New Gold's balance sheet  included 
$414 million  in cash  and cash  equivalents and  $878 million  of face  value 
long-term debt (book value  - $863 million). The  components of the  long-term 
debt are: $300 million of 7.00% face value senior unsecured notes due in April
2020; $500 million of 6.25% face value senior unsecured notes due in  November 
2022; and $78 million in El Morro funding loans, repayable out of a portion of
New Gold's share  of El  Morro cash  flow upon  the start  of production.  The 
company had 503 million common shares outstanding at December 31, 2013.

                         Webcast and Conference Call

A webcast presentation and  conference call to discuss  these results will  be 
held on Friday, February 28, 2014, at 9:00 a.m. Eastern Time. Participants may
access the webcast by registering here or from our website at www.newgold.com.
You may also  listen to the  conference by calling  647-427-7450 or  toll-free 
1-888-231-8191 in North America.  To listen to a  recorded playback after  the 
event, please call 1-416-849-0833 or toll-free 1-855-859-2056 in North America
-  Passcode  49646450.  An  archived   webcast  will  also  be  available   at 
www.newgold.com following the event.

About New Gold Inc.

New Gold is an intermediate gold mining company. The company has a portfolio
of four producing assets and three significant development projects. The New
Afton Mine in Canada, the Mesquite Mine in the United States, the Peak Mines
in Australia and the Cerro San Pedro Mine in Mexico, provide the company with
its current production base. In addition, New Gold owns 100% of the Blackwater
and Rainy River projects, both in Canada, as well as 30% of the El Morro
project located in Chile. New Gold's objective is to continue to establish
itself as a leading intermediate gold producer, focused on the environment and
sustainability. For further information on the company, please visit
www.newgold.com.

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this news release, including any  information 
relating to New Gold's future financial or operating performance are  "forward 
looking". All  statements  in this  news  release, other  than  statements  of 
historical fact, which 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  of  such  terms.   Forward-looking 
statements in this news  release include, among  others, statements under  the 
heading "Project Overview"  and "2014 Guidance  and Sensitivities",  including 
statements with respect  to: guidance  for production, cash  costs and  all-in 
sustaining costs (all related sensitivities);  the results of the Rainy  River 
and Blackwater feasibility studies,  including the expected production,  costs 
(and related sensitivities),  grades, stripping ratio,  mining and  processing 
method and rate,  stockpiling plan, mine  life, NPV, IRR  and payback  period 
associated with  each project;  planned activities  for 2014  at each  of  the 
company's projects;  the timing  of  permitting activities  and  environmental 
assessment  processes;  and  targeted   timing  for  commissioning  and   full 
production at Rainy River and sequencing of Blackwater.

All forward-looking statements in this news release 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.  Certain  material  assumptions 
regarding our forward-looking statements are  discussed in this news  release, 
New Gold's MD&As, its Annual Information Form and its Technical Reports  filed 
at www.sedar.com. In addition to,  and subject to, such assumptions  discussed 
in more detail elsewhere, the forward-looking statements in this news  release 
are  also  subject  to   the  following  assumptions:   (1)  there  being   no 
signification disruptions affecting New  Gold's operations; (2) political  and 
legal developments in  jurisdictions where New  Gold operates, or  may in  the 
future operate, being consistent with New Gold's current expectations; (3) the
accuracy of New Gold's current mineral reserve and resource estimates; (4) the
exchange rate between the Canadian dollar, Australian dollar, Mexican Peso and
U.S. dollar being approximately consistent with current levels; (5) prices for
diesel, natural  gas,  fuel oil,  electricity  and other  key  supplies  being 
approximately consistent with  current levels; (6)  labour and material  costs 
increasing on a  basis consistent  with New Gold's  current expectations;  (7) 
permitting and arrangements with First Nations and other Aboriginal groups  in 
respect of Rainy River and Blackwater being consistent with New Gold's current
expectations; (8)  all environmental  approvals (including  the  environmental 
assessment process  for the  Blackwater and  Rainy River  projects),  required 
permits,  licenses  and  authorizations  being  obtained  from  the   relevant 
governments and other relevant stakeholders within the expected timelines; and
(9) the results of the feasibility studies for the Rainy River and  Blackwater 
projects being realized.

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 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;  price volatility  in the  spot and  forward 
markets for commodities;  fluctuations in the  international currency  markets 
and in the rates of exchange of  the currencies of Canada, the United  States, 
Australia, Mexico  and  Chile;  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 in  which New Gold operates,  including, but not  limited 
to: in Canada, obtaining  the necessary permits for  the Blackwater and  Rainy 
River projects; in  Mexico, where  Cerro San Pedro  has a  history of  ongoing 
legal challenges  related to  our environmental  authorization (EIS);  and  in 
Chile, where  the  courts  have  temporarily suspended  the  approval  of  the 
environmental permit  for El  Morro; the  lack of  certainty with  respect  to 
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  New 
Gold is or may become a party to; diminishing quantities or grades of reserves
and  resources;  competition;  loss  of  key  employees;  additional   funding 
requirements; rising costs  of labour,  supplies, fuel  and equipment;  actual 
results  of  current  exploration  or  reclamation  activities;  uncertainties 
inherent to  mining economic  studies including  the feasibility  studies  for 
Rainy River and Blackwater; changes in project parameters as plans continue to
be refined; accidents; labour disputes;  defective title to mineral claims  or 
property or contests over claims to mineral properties; unexpected delays  and 
costs inherent to  consulting and  accommodating rights of  First Nations  and 
other Aboriginal groups; uncertainties with respect to obtaining all necessary
surface  and  other  land  use  rights  or  tenure  for  Rainy  River;  risks, 
uncertainties  and  unanticipated   delays  associated   with  obtaining   and 
maintaining necessary licenses, permits and authorizations and complying  with 
permitting requirements,  including those  associated with  the  environmental 
assessment processes for Blackwater  and Rainy River.  In addition, there  are 
risks and  hazards  associated  with  the  business  of  mineral  exploration, 
development and mining, including environmental events and 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 news release  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 Note to U.S. Readers  Concerning Estimates of Mineral Reserves  and 
Mineral Resources

Information concerning  the properties  and operations  of New  Gold has  been 
prepared in  accordance  with  Canadian standards  under  applicable  Canadian 
securities laws, and may not be  comparable to similar information for  United 
States companies. The terms  "Mineral Resource", "Measured Mineral  Resource", 
"Indicated Mineral  Resource" and  "Inferred Mineral  Resource" used  in  this 
Report are  Canadian mining  terms as  defined in  the Canadian  Institute  of 
Mining, Metallurgy  and Petroleum  ("CIM")  Definition Standards  for  Mineral 
Resources and Mineral Reserves adopted by CIM Council on November 27, 2010 and
incorporated by reference in National Instrument 43-101 ("NI 43-101").  While 
the terms "Mineral Resource", "Measured Mineral Resource", "Indicated  Mineral 
Resource" and  "Inferred  Mineral Resource"  are  recognized and  required  by 
Canadian securities regulations, they are not defined terms under standards of
the United  States  Securities  and Exchange  Commission.  As  such,  certain 
information contained in this Report 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. Under Canadian rules,
estimates of Inferred Mineral Resources may not form the basis of  feasibility 
or pre-feasibility studies. It cannot be assumed  that all or any part of  an 
"Inferred Mineral  Resource" will  ever  be upgraded  to a  higher  confidence 
category. Readers are cautioned  not to assume  that all or  any part of  an 
"Inferred Mineral Resource" exists or is economically or legally mineable.

Under United  States standards,  mineralization  may not  be classified  as  a 
"Reserve" unless the determination has been made that the mineralization could
be economically and  legally produced  or extracted  at the  time the  Reserve 
estimation is made. Readers are cautioned not to assume that all or any  part 
of the Measured or Indicated Mineral  Resources that are not Mineral  Reserves 
will ever be converted into Mineral Reserves. In addition, the definitions  of 
"Proven Mineral Reserves" and "Probable Mineral Reserves" under CIM  standards 
differ in certain respects from the standards of the United States  Securities 
and Exchange Commission.

Technical Information

The scientific  and  technical  information  in this  news  release  has  been 
reviewed and approved by Mark A. Petersen, Vice President, Exploration of  New 
Gold.  Mr.  Petersen  is  an  AIPG  Certified  Professional  Geologist  and  a 
"qualified person" under National Instrument 43-101.

Non-GAAP Measures

(1) TOTAL CASH COSTS

"Total  cash  costs"  per  ounce  figures  are  non-GAAP  measures  which  are 
calculated in accordance with  a standard developed by  The Gold Institute,  a 
worldwide association  of suppliers  of  gold and  gold products  that  ceased 
operations in  2002.  Adoption of  the  standard  is voluntary  and  the  cost 
measures presented may not be comparable to other similarly titled measures of
other companies.  New Gold  reports total  cash costs  on a  sales basis.  The 
company believes that certain investors  use this information to evaluate  the 
company's ability to generate liquidity  through operating cash flow and  that 
this measure, along with  sales, is considered  to be a  key indicator of  the 
company's ability to generate operating earnings and cash flow from its mining
operations. Total cash costs include mine site operating costs such as mining,
processing and administration costs, royalties, production taxes, and realized
gains and  losses  on  fuel  contracts, but  are  exclusive  of  amortization, 
reclamation, capital and exploration costs and net of by-product sales.  Total 
cash costs are then divided  by ounces of gold sold  to arrive at a per  ounce 
figure. Co-product cash costs remove the impact of other metal sales that  are 
produced as a by-product  of gold production and  apportion the cash costs  to 
each metal produced on a percentage of revenue basis, and subsequently divides
the amount by the total ounces of gold or silver or pounds of copper sold,  as 
the case may be, to arrive at per ounce or per pound figures. Unless otherwise
indicated, all total  cash cost  information in this  news release  is net  of 
by-product sales. These measures, along with sales, are 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  financial  measure.  Total  cash  costs  and 
co-product cash costs presented do not have a standardized meaning under  GAAP 
and may  not be  comparable  to similar  measures  presented by  other  mining 
companies. It should  not be considered  in isolation or  as a substitute  for 
measures  of  performance  prepared  in  accordance  with  GAAP  and  is   not 
necessarily indicative of cash  flow from operations  under GAAP or  operating 
costs presented under GAAP. Further details  regarding total cash costs and  a 
reconciliation to  the  nearest  GAAP  measures  are  provided  in  our  MD&As 
accompanying  our   financial  statements   filed  from   time  to   time   on 
www.sedar.com.

(2) ADJUSTED NET CASH GENERATED FROM OPERATIONS

"Adjusted net cash generated from operations" and "Adjusted net cash generated
from operations per share" are non-GAAP financial measures. Net cash generated
from operations  has  been  adjusted  for one-time  expenses  related  to  the 
company's acquisition  of Rainy  River in  the third  quarter and  a  one-time 
charge incurred  in  the second  quarter  related  to the  settlement  of  the 
company's legacy gold hedge position.  Because of the non-recurring nature  of 
items removed,  the company  believes the  presentation of  adjusted net  cash 
generated from operations enables investors and analysts to better  understand 
the underlying operating performance of our core mining business and  provides 
an additional manner to compare performance between periods without the impact
of non-recurring  items.  Adjusted  net cash  generated  from  operations  and 
adjusted net cash generated from operations per share are intended to  provide 
additional information and are non-GAAP  financial measures. They do not  have 
any standardized  meaning under  GAAP and  may not  be comparable  to  similar 
measures presented  by  other companies.  They  should not  be  considered  in 
isolation  or  as  a  substitute  for  measures  of  performance  prepared  in 
accordance with GAAP and are not necessarily indicative of operating profit or
cash flow from operations as determined under GAAP.

                                                       
    New Gold 2013 Fourth Quarter and Full-Year Adjusted Net Cash Generated
                        from Operations Reconciliation
                                  Three months ended  Twelve months ended
                                        December 31,         December 31,
(in millions of U.S. dollars)          2013      2012       2013      2012
                                                             
Net cash generated from               $99.7    $106.2     $171.9    $235.8
operations
 Settlement payment of gold             --        --       65.7        --
  hedge contracts
 Rainy River acquisition costs         0.1        --        5.0        --
 Payment of Rainy River                 --        --       12.9        --
  acquisition expenses
 Amended tax returns for Peak        (6.6)        --      (6.6)        --
  Mines
                                                             
Adjusted net cash generated           $93.2    $106.2     $248.9    $235.8
from operations
                                                             

(3) ADJUSTED NET EARNINGS

"Adjusted net earnings"  and "adjusted  net earnings per  share" are  non-GAAP 
financial measures. Net earnings have been  adjusted and tax affected for  the 
group of  costs in  "Other gains  and losses"  on the  condensed  consolidated 
income statement. The adjusted entries are also impacted for tax to the extent
that the  underlying  entries are  impacted  for  tax in  the  unadjusted  net 
earnings from continuing operations. The company uses this measure for its own
internal purposes  and  believes the  presentation  of adjusted  net  earnings 
enables investors and analysts to  better understand the underlying  operating 
performance of  our  core mining  business  through the  eyes  of  management. 
Management periodically  evaluates the  components  of adjusted  net  earnings 
based on an internal  assessment of performance measures  that are useful  for 
evaluating the  operating performance  of our  business and  a review  of  the 
non-GAAP measures used by mining industry analysts and other mining companies.
Adjusted net earnings  and adjusted  net earnings  per share  are intended  to 
provide additional information and  is a non-GAAP  financial measure. They  do 
not have any  standardized meaning  under GAAP and  may not  be comparable  to 
similar measures presented by other  companies. They should not be  considered 
in isolation  or as  a  substitute for  measures  of performance  prepared  in 
accordance with GAAP and are not necessarily indicative of operating profit or
cash flow from operations as determined under GAAP.

                                                              
       New Gold 2013 Fourth Quarter and Full-Year Adjusted Net Earnings
                                Reconciliation
                                  Three months ended  Twelve months ended
                                        December 31,         December 31,
(in millions of U.S. dollars;            2013    2012        2013     2012
except per share amounts)
                                                              
Net earnings/(loss)                  ($254.7)  $123.9    ($191.2)   $199.0
Net earnings/(loss) per share         ($0.51)   $0.26     ($0.39)    $0.43
                                                              
  Adjustments:                                                
                                                              
  Asset impairment                     272.5      --       272.5       --
  Silver inventory write-down            7.3      --         7.3       --
  Ineffectiveness on hedging              --     1.3       (9.5)      2.9
   instruments
  Realized and unrealized gain         (4.5)  (70.2)      (49.3)   (61.1)
   on non-hedged derivatives
  (Gain)/loss on foreign                13.9   (3.4)        25.7      1.3
   exchange
  Loss on disposal of assets             0.9     2.0         2.6      3.3
  Hedge reclassification to              7.0      --        18.7       --
   earnings
  Rainy River transaction                0.1      --         5.0       --
   expenses
  Loss on redemption of senior            --      --          --     31.8
   secured notes
  Redundancy charges                     2.4      --         2.4       --
  Other                                  2.8     0.7         4.5      1.9
  Tax impact of above                 (31.0)   (4.6)      (27.4)      4.4
   adjustments
                                                              
Adjusted net earnings                   $16.7   $49.7       $61.3   $183.5
Adjusted net earnings per share         $0.04   $0.11       $0.13    $0.40
                                                              

(4) ALL-IN SUSTAINING COSTS

Consistent with  guidance announced  in 2013  by the  World Gold  Council,  an 
association of various gold  mining companies from around  the world of  which 
New Gold is a member, New Gold defines "all-in sustaining costs" per ounce  as 
the sum  of total  cash costs,  capital expenditures  that are  sustaining  in 
nature, corporate general and  administrative costs, capitalized and  expensed 
exploration that is sustaining in nature and environmental reclamation  costs, 
all divided by the ounces  of gold sold to arrive  at a per ounce figure.  New 
Gold believes this  non-GAAP financial measure  provides further  transparency 
into costs associated with producing gold and will assist analysts,  investors 
and other stakeholders  of the  company in assessing  the company's  operating 
performance, its ability to  generate free cash  flow from current  operations 
and  its  overall  value.  This  data  is  furnished  to  provide   additional 
information and  is  a non-GAAP  financial  measure. All-in  sustaining  costs 
presented do  not  have a  standardized  meaning under  GAAP  and may  not  be 
comparable to similar measures presented by other mining companies. It  should 
not be considered in isolation or as a substitute for measures of  performance 
prepared in accordance  with GAAP and  is not necessarily  indicative of  cash 
flow from  operations under  GAAP  or operating  costs presented  under  GAAP. 
Further details regarding all-in sustaining costs and a reconciliation to  the 
nearest GAAP measures  are provided  in our MD&As  accompanying our  financial 
statements filed from time to time on www.sedar.com.

(5) OPERATING MARGIN

"Operating margin" is a  non-GAAP financial measure  with no standard  meaning 
under GAAP, which management uses to further evaluate the company's results of
operations in each reporting period. Operating margin is calculated as revenue
less operating  expenses  and  therefore does  not  include  depreciation  and 
depletion. Operating margin is intended to provide additional information  and 
is a non-GAAP  financial measure. It  does not have  any standardized  meaning 
under GAAP and may  not be comparable to  similar measures presented by  other 
companies. It should  not be considered  in isolation or  as a substitute  for 
measures  of  performance  prepared  in  accordance  with  GAAP  and  is   not 
necessarily indicative of  operating profit  or cash flow  from operations  as 
determined under GAAP.

                                                           
 New Gold 2013 Fourth Quarter and Full-Year Operating Margin Reconciliation
                                Three months ended  Twelve months ended
                                      December 31,         December 31,
(in millions of U.S. dollars)         2013     2012       2013      2012
                                                           
Revenues                            $198.4   $250.9     $779.7    $791.3
Operating expenses                ($121.7) ($105.2)   ($435.5)  ($344.3)
                                                           
Operating margin                     $76.7   $145.7     $344.2    $447.0
                                                           

                                                                    
CONSOLIDATED INCOME                                                  
STATEMENTS
                                Three months ended   Years ended December
                                    December 31                             31
                                        $      $           $         $
(In millions of U.S. dollars,          2013    2012        2013      2012
except per share amounts)
                                                                    
                                                                    
Revenues                              198.4   250.9       779.7     791.3
Operating expenses                    121.7   105.2       435.5     344.3
Depreciation and depletion             52.7    46.6       177.4     116.4
Earnings from mine operations          24.0    99.2       166.8     330.6
                                                                    
Corporate administration                5.6     8.9        26.7      25.2
Share-based payment expenses            2.0     2.3         8.5      10.9
Asset impairment                      272.5       -       272.5         -
Exploration and business                5.7     8.6        34.1      20.6
development
(Loss) income from operations       (261.8)    79.3     (175.0)     273.9
                                                                    
Finance income                       1.5     0.4         2.7       1.4
Finance costs                      (8.3)  (11.6)      (40.3)    (16.4)
Rainy River acquisition            (0.1)       -       (5.0)         -
costs
Other (losses) gains             (13.1)    69.6        26.0      19.9
                                                                    
(Loss) earnings before taxes        (281.8)   137.7     (191.6)     278.8
Income tax recovery (expense)          27.1  (13.8)         0.4    (79.8)
                                                                    
Net (loss) earnings                 (254.7)   123.9     (191.2)     199.0
                                                                    
(Loss) earnings per share                                            
Basic                             (0.51)    0.26      (0.39)      0.43
Diluted                          (0.51)    0.26      (0.39)      0.42
                                                                    
Weighted average number of
shares outstanding (in                                               
millions)
Basic                              503.3   468.1       488.0     463.4
Diluted                           503.3   473.3       488.0     468.4
                                                  

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION                      
                                                      As at December 31
                                                        $          $
(In millions of U.S. dollars)                         2013       2012
                                                                  
Assets                                                             
Current assets                                                     
Cash and cash equivalents                         414.4      687.8
Trade and other receivables                        19.3       46.9
Inventories                                       182.0      163.3
Current income tax receivable                      31.8        6.6
Prepaid expenses and other                         10.5       12.9
Total current assets                                 658.0      917.5
                                                                  
Investments                                            0.5        1.0
Non-current inventories                               31.0       32.4
Mining interests                                   3,336.5    3,134.9
Deferred tax assets                                  171.0      194.1
Other                                                  2.0        3.8
Total assets                                       4,199.0    4,283.7
                                                                  
Liabilities and equity                                             
Current liabilities                                                
Trade and other payables                           90.2      120.7
Current derivative liabilities                        -       56.4
Total current liabilities                             90.2      177.1
                                                                  
Reclamation and closure cost obligations              61.4       68.5
Provisions                                             9.4        9.5
Non-current derivative liabilities                       -       54.1
Non-current non-hedged derivative liabilities         27.8       80.3
Long-term debt                                       862.5      847.8
Deferred tax liabilities                            381.0      322.9
Deferred benefit                                      46.3       46.3
Other                                                  0.5        0.7
Total liabilities                                  1,479.1    1,607.2
                                                                  
Equity                                                             
Common shares                                      2,815.3    2,618.4
Contributed surplus                                   90.0       85.2
Other reserves                                      (17.6)     (50.5)
(Deficit) retained earnings                        (167.8)       23.4
Total equity                                       2,719.9    2,676.5
Total liabilities and equity                       4,199.0    4,283.7
                                                            

CONSOLIDATED STATEMENTS OF CASH                                       
FLOWS
                                     Three months ended        Years ended
                                               December 31         December 31
                                            $        $        $        $
(In millions of U.S. dollars)             2013     2012      2013     2012
                                                                     
Operating activities                                                  
 Net (loss) earnings                  (254.7)    123.9   (191.2)    199.0
 Adjustments for:                                                    
   Realized gains (losses) on            7.0    (2.6)      15.2    (9.9)
     gold contracts
     Realized and unrealized
   foreign exchange losses              13.9    (3.4)      25.7      1.3
     (gains)
     Realized and unrealized
   gains on non-hedged                 (4.5)   (70.2)    (49.3)   (61.1)
     derivatives
   Unrealized (gains) losses on        (0.1)      3.4       1.2      2.4
     concentrate contracts
   Settlement payment of gold              -        -    (65.7)        -
     hedge contracts
   Payment of Rainy River                  -        -    (12.9)        -
     acquistion expenses
   Loss on redemption of senior            -        -         -     31.8
     secured notes
   Reclamation and closure             (0.8)    (0.1)     (2.2)    (8.0)
     costs paid
   Loss on disposal and                273.4      2.0     275.1      3.3
     impairment of assets
     Impairment loss of
   available-for-sale                    3.0        -       3.0        -
     securities
   Depreciation and depletion           53.5     46.7     178.6    116.2
   Equity-settled share-based            2.0      2.0       8.1      8.5
     payment expense
     Realized and unrealized
   (gains) losses on cash flow             -      1.3     (9.5)      2.9
     hedging items
   Income tax (recovery)              (27.1)     13.9     (0.4)     79.8
     expense
   Finance income                      (1.5)    (0.4)     (2.7)    (1.4)
   Finance costs                         8.3     11.5      40.3     16.4
                                         72.4    128.0     213.3    381.2
 Change in non-cash operating            21.4      3.1     (9.7)   (44.8)
  working capital
Cash generated from operations            93.8    131.1     203.6    336.4
 Income taxes recovered (paid)            5.9   (24.9)    (31.7)  (100.6)
Net cash generated from                   99.7    106.2     171.9    235.8
operations
                                                                     
Investing activities                                                  
 Mining interests                      (88.2)  (118.0)   (289.3)  (516.0)
 Proceeds received from                   5.7        -       5.7       -
  government assistance
  Proceeds received from sale of
 pre-commercial production                  -      6.9         -     14.5
  inventory
 Purchase of additional                     -        -         -    (6.0)
  Blackwater mining claims
 Acquisition of Rainy River (net        (5.4)        -   (112.6)        -
  of cash received)
 Recovery of reclamation                    -        -         -      8.9
  deposits
 Proceeds from sale of assets             0.4        -       0.4        -
 Interest received                        1.3      0.3       2.1      1.1
Cash used in investing activities       (86.2)  (110.8)   (393.7)  (497.5)
                                                                     
Financing activities                                                  
  Issuance of common shares on
 exercise of options and                  0.3     67.7       5.5     75.4
  warrants
 Redemption of senior secured               -        -         -  (197.6)
  notes
 Proceeds from issuance of                  -    500.0         -    800.0
  senior notes
 Financing initiation costs                 -    (9.9)     (0.3)   (17.9)
 Interest paid                         (26.0)   (12.4)    (52.3)   (20.0)
Cash (used) generated by                (25.7)    545.4    (47.1)    639.9
financing activities
                                                                     
Effect of exchange rate changes          (2.2)    (0.6)     (4.5)      0.2
on cash and cash equivalents
                                                                     
Change in cash and cash                 (14.4)    540.2   (273.4)    378.4
equivalents
Cash and cash equivalents,               428.8    147.6     687.8    309.4
beginning of the period
Cash and cash equivalents, end of        414.4    687.8     414.4    687.8
the period
                                                                     
Cash and cash equivalents are                                         
comprised of:
 Cash                                   274.4    277.5     274.4    277.5
 Short-term money market                140.0    410.3     140.0    410.3
  instruments
                                        414.4    687.8     414.4    687.8



SOURCE New Gold Inc.

Contact:

Hannes Portmann
Vice President, Corporate Development
Direct: +1 (416) 324-6014
Email:info@newgold.com
 
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