Desjardins Mining Conference December 2013

Transcription

1 Desjardins Mining Conference December 2013

2 Cautionary statements All monetary amounts in U.S. dollars unless otherwise stated Total cash costs shown net of by-product sales 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 as well as information respecting Rainy River and its assets 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, projec ts, 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. Forward-looking statements in this presentation include, among others, statements with respect to: guidance for production, cash costs and all -in sustaining costs (and its components); the potential difference between gold price and cash and all-in sustaining costs, including relative to other companies; potential modifications to operations (and the cost of any such modifications) and potential opportunities to increase throughput at New Afton exploration potential and the results of future exploration activities; expected future mining activities; the expected or potential annual production, expected cash costs and expected development cost of New Gold s projects; the estimation of mineral reserves and resources and the realization of such estimates; the expected life of New Gold s mines and projects; the timing of completion of feasibility studies or updates, reserve updates and other technical work or reports; the adequacy of capital resources; and expected capital expenditures and exploration expenditures. All forward-looking statements in this presentation are based on the opinions and estimates of management as of the date such statements are made and are subject to important ri sk factors and uncertainties, many of which are beyond New Gold s ability to control or predict. Material assumptions regarding our forward looking statements are discussed in this presentation, the annual MD&A, the AIF and our Technical Reports. 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 gov ernment 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 Blackwater and the Rainy River Gold Project; 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 had temporarily suspended the approval of the environmental permit for El Morro; the lack of certainty with respect to foreig n 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 PEA for Blackwater and the Feasibility Study for the Rainy River Gold Project; 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; uncertainties with respect to the successful integration of the business of Rainy River within the business of New Gold; unexpected delays and costs inherent to consulting and accommodating rights of First Nations; and uncertainties with respect to obtaining all necessary surface rights for the Rainy River Project. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental events and h azards, 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 (and, in respect to information related to the Rainy River Gold Project, in Rainy River s) disclosure documents filed on and available at 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 an y forward-looking statements whether as a result of new information, events or otherwise, except in accordance with applicable securities laws. All endnotes can be found at the conclusion of the presentation and should be reviewed. 2

3 New Gold investment thesis Portfolio of assets in top-rated jurisdictions Invested and experienced team Among lowest-cost producers with solid track record Peer-leading growth pipeline A history of value creation 3

4 Portfolio of assets in top-rated jurisdictions Mining investment country rankings (1) # 2 CANADA Blackwater New Afton Rainy River Mine Life: 15+ years Mine Life: 14 years Mine Life: 15+ years # 6 UNITED STATES Mesquite Mine Life: 10+ years # 5 MEXICO Cerro San Pedro Mine Life: 4+ years # 3 CHILE El Morro Mine Life: 17 years # 1 AUSTRALIA Peak Mines Mine Life: 8 years OPERATING DEVELOPMENT (1) Rankings based on 25 countries evaluated in 2013 Behre Dolbear Report 2013 Ranking of Countries for Mining Investment: Where Not to Invest. 4

5 Portfolio of assets in top-rated jurisdictions Growing gold resource base in Canada GOLD RESERVES (Moz) (4) GOLD M&I RESOURCES (Moz) (1)(4) = +44% per share 2.9 Chile 1.7 Mexico 0.9 Australia New Gold New Gold & Rainy River (3) 5.7 USA GOLD M&I RESOURCES (Moz) (1)(2)(4) = +20% per share 18.0 Canada New Gold New Gold & Rainy River (3) 18 million ounces of M&I resources in Canada 84% increase in M&I resources per share since 2009 Canada = +62% (1) Measured and Indicated Resources inclusive of Reserves. 5

6 Invested and experienced team Significantly invested team EXECUTIVE MANAGEMENT TEAM BOARD OF DIRECTORS Randall Oliphant Executive Chairman David Emerson Former Canadian Cabinet Minister Robert Gallagher Brian Penny Ernie Mast President & CEO Executive VP & CFO VP Operations James Estey Robert Gallagher Vahan Kololian Former Chairman, UBS Securities Canada President & CEO Founder, Terra Nova Partners Martyn Konig Former Executive Chairman, European Goldfields Pierre Lassonde Chairman, Franco-Nevada Randall Oliphant Executive Chairman Raymond Threlkeld Mining Consultant Collectively ~$70 million invested in New Gold 6

7 Among lowest-cost producers with solid track record Lower costs driving margin expansion $150 - $200 per ounce lower all-in sustaining costs (1) results in incremental margin (2) ~$100 per ounce decrease in cash costs (3) from 2009 to 2013E Copper and silver create effective hedge 2013 GUIDANCE ALL-IN SUSTAINING COSTS ($/OZ) (1) ~$900 ~$1,050 ~$1,100 New Gold Mid-Tier Average (4) Senior Average (5) 7

8 Among lowest-cost producers with solid track record 2013 outlook Gold production (1) Koz Copper production Mlbs Silver production ~1.3 Moz 2013 Total cash costs (2) ~$375/oz 2013 All-in sustaining costs (2)(3) ~$900/oz Assumptions for the fourth quarter of 2013: Gold - $1,300 per ounce; Copper - $3.25 per pound; Silver - $20.00 per ounce; AUD/USD and CDN/USD parity. 8

9 Among lowest-cost producers with solid track record New Afton hitting its stride GOLD COPPER GRADE (g/t) GRADE (%) Achieved targeted throughput increase to 12,000 tonnes per day three months ahead of schedule 0.96% 0.98% % 0.67 Q Q Q Q Q Q Evaluating potential for further throughput increases in 2014 and beyond 83% RECOVERY (%) RECOVERY (%) 87% 87% 88% 88% 81% Q Q Q Q Q Q PRODUCTION (Koz) PRODUCTION (Mlbs) Q Q Q Q Q Q

10 Peer-leading growth pipeline Evaluating further throughput expansion potential to ~14,000 tonnes per day DRAWBELLS 78 completed to date 85 to be completed by year-end 14 million tonnes, or approximately three years, of broken reserves accessible CRUSHER 20,000 tonne per day design capacity Daily maximum of 18,581 tonnes in August 2013 CONVEYOR 14,500 tonne per day design capacity During third quarter, 52 days over 14,000 tonnes per day conveyed 10

11 Peer-leading growth pipeline Evaluating further throughput expansion potential to ~14,000 tonnes per day During third quarter, ran operation at 14,000 to 15,500 tonnes per day over five day period Mill was able to process higher throughput, however a commensurate decrease in recovery was seen Currently evaluating low capital cost alternatives to process at higher rate and bring recoveries into the high 80 s/low 90 s Potential to include: Addition of a tower mill for tertiary grinding Additional rougher flotation capacity at front end of the flotation circuit Additional cleaner capacity 11

12 Peer-leading growth pipeline New Afton C-Zone exploration program Actively exploring for both near and medium-term resource growth East Cave Extension represents lateral extension of B-Zone currently being mined Added two years to mine life through 2012 exploration efforts C-Zone represents down plunge extension of ore body All 2013 exploration to be incorporated into year-end mineral reserve and resource update C Zone Looking Northwest B Zone Reserve East Cave Extension and Hanging Wall Lens C-ZONE RESOURCE SUMMARY (1) Measured and Indicated Inferred GOLD 0.3 Moz at 0.77 g/t 0.4 Moz at 0.62 g/t COPPER 211 Mlbs at 0.77% 301 Mlbs at 0.68% 12

13 Peer-leading growth pipeline Industry leading organic growth profile Three organic projects +800 Koz (1) Growth projects expected to increase gold production by ~1.75 times over current operations El Morro Blackwater and Rainy River acquisitions increased shares outstanding by 25% for potential +150% increase in production Four current operations Blackwater (2) Projecting below current industry average cash costs at each project Rainy River 2013 Gold Production Annual Production Potential of Growth Assets 13

14 Peer-leading growth pipeline Three world-class projects Rainy River Blackwater El Morro (30%) Significant Gold M&I Resource Base (1)(2) 6.2 Moz 8.6 Moz 2.9 Moz Exploration Potential Intrepid Zone/Multiple Regional Targets Capoose/Multiple Regional Targets El Morro Zone/ Block Cave Potential Jurisdiction Ontario, Canada British Columbia, Canada Chile Robust Production/ Low Cash Costs (3) ~225 Koz at below average cash costs ~500 Koz at below average cash costs ~90 Koz Au/85 Mlbs Cu at ~($700) cash costs (4) RAINY RIVER BLACKWATER EL MORRO 14

15 Peer-leading growth pipeline Control of two underexplored districts +169 km 2 land package RAINY RIVER Multiple targets including recently discovered Intrepid Zone Existing resource Exploration targets Off Lake Western Zone Son of Intrepid Rainy River Intrepid Extension Intrepid 15

16 Peer-leading growth pipeline Control of two underexplored districts +1,000 km 2 land package Initial resource at Capoose ~25 km from main Blackwater resource Multiple regional targets Existing resource Exploration targets Capoose BLACKWATER Van Tine Fawnie Blackwater Auro 10km 16

17 A history of value creation Increasing Net Asset Value drives share price growth March 2009 Net Asset Value (1) December 2013 PRICE PERFORMANCE SINCE BUSINESS COMBINATION WITH WESTERN GOLDFIELDS IN MARCH 2009 (5) Mesquite, Cerro San Pedro, Peak Mines ~$875 $1, % New Afton ~$120 $1,542 El Morro (2) ~$40 $400 35% Blackwater (3) $ $720 Rainy River (4) $ $485 (48%) S&P/TSX Global Gold Index (6) (41%) FTSE Gold Mines Index (7) (29%) HUI Index (8) Gold Price New Gold 17

18 A history of value creation Near-term catalysts 2013 guidance increased resources, production growth and lower costs Blackwater resource update New Afton C-Zone exploration update Completion of Rainy River acquisition New Afton mill to reach 12,000 tonnes per day Resolution of El Morro temporary permit suspension Completion of Blackwater Feasibility Study Rainy River Feasibility Study Update Blackwater/Rainy River/New Afton exploration/resource updates New Afton throughput expansion update 18

19 New Gold investment thesis Portfolio of assets in top-rated jurisdictions Invested and experienced team Among lowest-cost producers with solid track record Peer-leading growth pipeline Track record of value creation Establishing the leading intermediate gold company

20 Appendix Appendices Page 1. Financial information Consolidated operating performance/q3 13 summary New Afton Rainy River Blackwater El Morro Reserves and resource notes Commodity price/foreign exchange assumptions 54 20

21 Appendix 1 Capitalization and liquidity Cash and Equivalents (1) Undrawn Credit Facility (2) Liquidity Position $429mm $100mm $529mm All corporate debt due in 2020 or beyond (3) Two senior unsecured note offerings during 2012 ($300 million at 7.00%, $500 million at 6.25%) Total common shares outstanding of 503 million Paid $66 million to eliminate legacy gold hedges on May 15, Cash and equivalents as at September 30, $50 million of total $150 million currently used for Letters of Credit. 3. See Appendix 1 Summary of debt for detailed breakdown of components of debt. 21

22 Appendix 1 Summary of debt Undrawn Credit Facility Senior Unsecured Notes (April 2012) Senior Unsecured Notes (November 2012) El Morro Funding Loan Face Value $150 million (1) $300 million $500 million $76 million Maturity 1 year with annual extensions permitted April 15, 2020 November 15, 2022 n/a Interest Rate See Key features 7.00% 6.25% 4.58% Payable Revolving credit Semi-annually Semi-annually Upon start of production Conversion price n/a n/a n/a n/a Current trading value n/a ~104 ~98 n/a Key features Normal financial covenants Interest Rate % over LIBOR based on ratios Standby fee of % Senior unsecured Redeemable after April 15, 2016 at 103.5% down to 100% of face after 2018 Unlimited dividends if leverage ratio below 2:1 Senior unsecured Redeemable after November 15, 2017 at par plus half coupon, declining ratably to par Unlimited dividends if leverage ratio below 2:1 New Gold to repay Goldcorp out of 80% of its 30% share of cash flow once El Morro starts production 1. $50 million currently allocated for Letters of Credit. 22

23 Appendix and 2013 capital expenditures by site New Gold s 2013 estimated capital expenditures are $315 million Capital includes costs related to ongoing annual sustaining capital as well as investments for future production Capital estimate includes recently acquired Rainy River project Capital estimates by site are shown below: TOTAL 2012 ACTUAL CAPITAL EXPENDITURES: $499 MILLION TOTAL 2013 CAPITAL EXPENDITURE ESTIMATE: $315 MILLION Cerro San Pedro $11mm Mesquite $11mm Peak Mines $47mm Rainy River $25mm Mesquite $20mm Cerro San Pedro $40mm New Afton $110mm Blackwater $128mm New Afton $302mm Peak Mines $60mm Blackwater $60mm 23

24 Appendix capital expenditures by category The below breaks down capital expenditures at each site into two categories annual sustaining capital and direct investments for future production growth and mine life extension New Afton - $110 million 18% 82% Blackwater - $60 million 100% $90 million continued cave and drawbell development as well as related technical services Total of ~90 drawbells expected to be completed by end of 2013 Annual drawbell development to decrease over mine life with commensurate decrease in capital $15 million capitalized exploration $45 million Feasibility and related engineering studies, permitting, camp facilities/operation Peak Mines - $60 million 50% 50% $30 million underground development and capitalized exploration $30 million equipment, mine and mill projects/maintenance Direct investment for future production Annual sustaining capital 24

25 Appendix capital expenditures by category Cerro San Pedro - $40 million 25% 75% $30 million final leach pad expansion and capitalized stripping for phase 5 development $10 million site maintenance/processing improvements Rainy River - $25 million 100% $20 million engineering, studies, environmental and other $5 million ongoing exploration Mesquite - $20 million 40% 60% $12 million two additional trucks and construction of new welding and tire shops $8 million equipment components/site maintenance Direct investment for future production Annual sustaining capital New Gold s 30% share of estimated 2013 El Morro capital cost of $10 million fully carried by Goldcorp Inc. 25

26 Appendix exploration program overview New Gold s estimated exploration budget for 2013 is $50 million Capitalized: $20 million Expensed: $30 million Additional $5 million of exploration at Rainy River post acquisition Capitalized: $5 million Expensed: $5 million Peak Mines 33,000 metres Blackwater 40,000 metres Capitalized: $15 million Expensed: $15 million New Afton 40,000 metres Expensed: $10 million 26

27 Appendix third quarter highlights Gold production 94,038 ounces Total cash costs (1) $280 per ounce sold All-in sustaining costs (2) $779 per ounce New Afton achieved targeted increase in throughput three months ahead of schedule Adjusted earnings per share (3) $0.04/share Lowest cost quarter in company s history Adjusted net cash generated from operations (4) $54 million Completed Rainy River acquisition (5) Cash and cash equivalents of $429 million 1. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. 2. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 3. Refer to Endnote on adjusted net earnings under the heading Non-GAAP Measures. 4. Refer to Endnote on adjusted net cash generated from operations under the heading Non-GAAP Measures % of Rainy River was acquired in Q3, with the remaining 2.5% acquired in Q4. 27

28 Appendix mine-by-mine operating results Gold sales (000s ounces) 2013 THIRD QUARTER Cash costs (1) ($/oz) All-in Sustaining costs (2) ($/oz) Gold sales (000s ounces) 2013 YEAR-TO-DATE Cash costs (1) ($/oz) All-in Sustaining costs (2) ($/oz) New Afton 25 ($1,310) ($365) 62 ($1,104) ($191) Cerro San Pedro 24 $723 $ $605 $674 Mesquite 21 $1,017 $1, $936 $1,162 Peak Mines 24 $856 $1, $874 $1, $280 $ $399 $ THIRD QUARTER 2013 YEAR-TO-DATE New Afton co-product cash costs (1) Gold ($/oz) $454 $526 Copper ($/lb) $1.05 $ Refer to Endnote on total cash costs under the heading Non-GAAP Measures. 2. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 28

29 Appendix 2 Consolidated financial summary 2013 THIRD QUARTER 2012 THIRD QUARTER Revenue ($ million) $196 $196 Earnings from mine operations ($ million) $51 $77 Net earnings ($ million) $12 $18 Net earnings per share ($/share) $0.02 $0.04 Adjusted net earnings (1) ($ million) $20 $43 Adjusted net earnings per share (1) ($/share) $0.04 $0.09 Adjusted net cash generated from operations (2) ($ million) $54 $47 1. Refer to Endnote on adjusted net earnings under the heading Non-GAAP Measures. 2. Refer to Endnote on adjusted net cash generated from operations under the heading Non-GAAP Measures. 29

30 Appendix estimated all-in sustaining costs Total cash costs (1) General and administrative Exploration expense Sustaining capital (2) ~$375/oz ~$70/oz ~$80/oz ~$375/oz ALL-IN SUSTAINING COSTS (3) ~$900/oz 1. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. 2. Sustaining capital based on New Gold s total 2013 estimated capital expenditures excluding expenditures related to growth-related initiatives. 3. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 30

31 Appendix 2 Lower costs driving margin expansion New Gold offers shareholders potential for over $400 per ounce (1) of incremental margin $800 $738 $782 (4) $643 Total Cash Costs (US$/oz) (2) $600 $400 $478 $465 $557 $418 Incremental Margin to New Gold Shareholders $446 $421 $375 $ E 1. Calculated based on H GFMS industry average cash costs less New Gold 2013 cash cost guidance. Assumes no change to industry average cash costs for remainder of Refer to Endnote on total cash costs under the heading Non-GAAP Measures. 3. Industry data per GFMS reports calculated net of by-product credits as at various year-ends 4. Industry data per GFMS reports calculated net of by-product credits at H

32 Appendix 3 Drawbell continuity schedule Copper resource grades Accelerated East Cave development completed June drawbells in production In West Cave East Cave production began June 2013 Planned Draw bells in 2013 Planned Future Drawbells 32

33 Final Concentrate Appendix 3 Mill schematic To Tailings Surface Stockpile Potential New Facilities 33

34 Appendix 3 East Cave Extension and Hanging Wall Lens overview Reserves Replacement East Cave Extension delineation and infill drilling to extend Main Zone reserve laterally to east Hanging Wall Lens drilling to test potential to develop additional resources in hanging wall to Main Zone East Cave Extension Hanging Wall Lens Holes Metres Holes Metres 2013 program 34 8, , program 8 3, Total to date 42 11, ,522 34

35 Appendix 3 Drill program highlights HIGHLIGHTS FROM EAST CAVE DRILL PROGRAM Drill Hole From (m) To (m) Interval (m) Gold (g/t) Copper (%) AF AF AF AF AF AF HIGHLIGHTS FROM HANGING WALL LENS DRILL PROGRAM Drill Hole From (m) To (m) Interval (m) Gold (g/t) Copper (%) EA EA EA EA EA EA EA13-079B EA Refer to news release dated October 21, 2013 New Gold Achieves Targeted Throughput Increase at New Afton Ahead of Schedule as filed on SEDAR for all assay results as well as other disclosure relating to these results. 35

36 Appendix 3 C-Zone overview Resource Expansion C-Zone delineation and infill drilling to expand and upgrade resource to support future engineering design studies Holes Metres 2013 program 41 26, program 26 13,900 Total to date 67 40,700 Exploring potential to expand C-Zone to west and down plunge C-ZONE RESOURCE SUMMARY (1) Measured and Indicated Inferred GOLD 0.3 Moz at 0.77 g/t 0.4 Moz at 0.62 g/t COPPER 211 Mlbs at 0.77% 301 Mlbs at 0.68% Note: Includes all 2012 drilling plus five holes completed in early Refer to appendix 7 for detailed breakdown of resources and other information related to resource estimates. 36

37 Appendix 3 C-Zone highlights 2013 C-ZONE DRILLING HIGHLIGHTS 2013 drilling program has tripled the amount of drill hole data defining the C-Zone resource Drill program has both extended limits and improved classification confidence in C-Zone resource Drill Hole From (m) To (m) Interval (m) Gold (g/t) Copper (%) EA EA EA EA EA EA EA EA EA EA EA Refer to news release dated October 21, 2013 New Gold Achieves Targeted Throughput Increase at New Afton Ahead of Schedule as filed on SEDAR for all assay results as well as other disclosure relating to these results. 37

38 Appendix 4 Rainy River Location Mining friendly Northwestern Ontario 65 km northwest of Fort Frances 80 km south of Kenora Within 25 km of rail and power Local skilled labour force Kenora Rainy River Gold Project Fort Frances Thunder Bay HWY 600 Site Topography 38

39 Appendix 5 Blackwater A robust project Measured and Indicated Gold Resources (1) Direct Processing Material 8.6 Moz Additional Measured and Indicated gold resources stockpile material of 0.9 million ounces Central British Columbia near infrastructure Year-round accessibility for drilling/ development Total 2012 drilling over 270,000 metres project wide Tax synergies with New Afton PEA completed September 2012 Targeting annual gold production of ~500,000 ounces Targeting completion of Feasibility Study by late 2013 Consolidated significant land position 1,000 km 2 1. Refer to Appendix 7 for detailed disclosure on Resource calculations and other information related to resource estimates. 2. Blackwater s potential is not supported by a feasibility study. See Endnote Blackwater PEA Additional Cautionary Note. 39

40 Appendix 5 Blackwater Project overview Conventional truck and shovel open pit mine with 60,000 tonnes per day processing plant Low grade stockpiling strategy Simple, conventional flowsheet using whole ore leach process Conventional waste rock and Tailings Storage Facility Power supply from the hydroelectric power grid, via 133 kilometre transmission line Minimal off-site infrastructure required Good existing access road; water supply within 15 kilometres Low environmental risk and facility designed for closure 1. Source: September 2012 Preliminary Economic Assessment. 40

41 Appendix 6 El Morro (30%) 2.9 Moz Gold Reserve (1) 2.1 Blbs Copper Reserve (1) Location Mine type Chile Open Pit Goldcorp 70% partner and project operator New Gold s 30% share of capital fully funded by Goldcorp Current resource entirely within La Fortuna deposit Reserves (1) Gold/Copper (Moz/Mlbs) 2.9/2,097 Resources (1) Gold/Copper (Moz/Mlbs) 2.9/2,097 Neighbouring El Morro deposit underexplored Estimate mine life 17 years LOM production/yr (Au Koz/Cu Mlbs) 90/85 LOM cash costs/oz by-product (2) ($700) 2012 year end update added 0.4 million ounces of gold and 229 million pounds of copper to reserves (1) Evaluating various alternatives for a power source to northern Chilean development projects 1. New Gold s attributable 30% share. Refer to Appendix 7 for detailed disclosure on reserve and resource calculations. 2. Refer to Endnote on total cash cost under the heading Non-GAAP Measures. Life of mine co-product costs estimated at $550/oz gold and $1.45/lb copper at commodity price assumptions of $1,200/oz gold and $2.75/lb copper. 41

42 Appendix 6 El Morro overview of updated Feasibility Study El Morro Feasibility Study was updated in December 2011 Key parameters for New Gold include: 30% share of estimated development capital, or $1.2 billion, carried by Goldcorp Receive cash flow from start of production Interest rate fixed at 4.58% Base 17-year mine life 30% share of annual production: ~90,000 ounces of gold and ~85 million pounds of copper Estimated total cash costs (1), net of by-products ($700) per ounce Co-product gold ~$550 per ounce Co-product copper ~$1.45 per pound 1. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. 42

43 Appendix 6 La Fortuna deposit 2012 open pit Proven and Probable reserves and Measured and Indicated resources Underground Inferred resource with block cave potential 500 metres 43

44 Appendix 6 El Morro (30%) Funding structure (1) Total Capital 100% ~ $3.9 billion 100% Average annual cash flow 30% 70% Funded by $1.2 billion interest at 4.58% ~ $2.7 billion 30% 70% 20% 80% Carried funding repayment New Gold s 30% share of development capital 100% carried Interest fixed at 4.58% 1. Capital estimates based on December 2011 Feasibility Study. 44

45 Appendix 6 Selected porphyry gold/copper deposits/mines (1) Au Grade (g/t) 0.80 New Afton El Morro % 0.40% 0.60% 0.80% 1.00% 1.20% Cu Grade (%) Producing Development Chapada Alumbrera New Prosperity Mt. Milligan El Morro Cadia-Ridgew ay (2) New Afton Cobre Panama Cerro Casale Agua Rica 1. Based on disclosure by respective companies. 2. Includes Cadia East Underground and Ridgeway Underground reserves as indicated in Newcrest s February 8, 2013 press release; does not include Other Cadia province reserves. 45

46 Appendix 6 El Morro relative positioning (1) EL MORRO WITHIN GOLDCORP PORTFOLIO Asset Gold Reserves (Moz) Asset Gold Equivalent (2) (Moz) Penasquito 15.7 Penasquito 43.9 Pueblo Viejo 10.0 El Morro 17.4 Los Filos 7.4 Pueblo Viejo 11.7 El Morro 6.7 Los Filos 8.4 Cerro Negro 5.7 Cerro Negro All reserve information taken from Goldcorp s December 31, 2012 year-end resource statements. 2. Gold equivalent calculated based on the following commodity prices: Gold - $1,600/oz; Silver - $30.00/oz; Copper - $3.50/lb; Lead - $0.90/lb; Zinc - $0.90/lb. 46

47 Appendix 7 Reserves and resources summary Mineral Reserves and Resources Summary Year End 2012 (1)(2) Year End 2011 (3) Gold Koz Silver Koz Copper Mlbs Gold Koz Silver Koz Copper Mlbs Proven and Probable Reserves 11,783 41,571 3,282 7,863 34,347 2,888 Measured and Indicated Resources (inclusive of Reserves) 29, ,585 4,223 18, ,268 3,946 Inferred Resources 6,822 88,359 1,187 6,323 76,856 2,202 M&I Resources (inclusive of Reserves) Mesquite 5, , Cerro San Pedro 1,703 57,980-1,812 55,860 - Peak Mines 880 1, , New Afton 2,224 7,292 1,980 1,742 5,470 1,586 Blackwater 9,497 70,128-5,423 25,774 - Capoose 196 9, ,594 - Rainy River 6,167 13,338 - n/a n/a n/a El Morro 2,891-2,097 2,954-2,193 Total M&I 29, ,585 4,223 18, ,268 3, For additional information regarding reserve and resource estimates; refer to: New Gold s Annual Information Form for the Financial Year Ended December 31, 2012 dated March 27, 2013; news release dated April 4, 2013 New Gold Announces Increased Gold Resources at Blackwater Project ; news release dated May 1, 2013 New Gold Announces 2013 First Quarter Results Increases Gold and Copper Resources at New Afton C-Zone by Over 300 Percent ; and news release dated July 31, 2013 New Gold Second Quarter Delivers Increased Production at Lower Costs - Second Half of 2013 Remains on Track to Provide Strong Finish to the Year. 2. Year end 2012 Mineral Resources updated for Blackwater resource updates on April 4, 2013 and New Afton C-Zone update on May 1, Year end 2011 Mineral Resources presented at Investor Day on February 2,

48 Appendix 7 Reserves and resources summary (cont d) Mineral Reserves statement as at December 31, 2012 (1) Metal grade Contained metal Tonnes 000s Gold g/t Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs Mesquite Proven 13, Probable 114, , Mesquite P&P 127, , Cerro San Pedro Proven 21, ,600 - Probable 26, ,800 - CSP P&P 47, ,400 - Peak Mines Proven 2, Probable 2, Peak P&P 4, New Afton Proven Probable 52, ,100 3,880 1,080 New Afton P&P 52, ,100 3,880 1,080 Rainy River Proven 27, ,015 1,728 - Probable 88, ,017 8,587 - Rainy River P&P 116, ,031 10,315 - El Morro 100% Basis 30% Basis Proven 307, ,705-1,135 Probable 335, , El Morro P&P 643, ,891-2,097 Total Proven 3,759 13,838 1,185 Total Probable 8,025 27,733 2,097 Total P&P 11,783 41,571 3, Year end 2012 Mineral Resources updated for Blackwater Resource update on April 4, 2013 and New Afton C-Zone update on May 1,

49 Appendix 7 Reserves and resources summary (cont d) Measured and Indicated mineral Resource statement (inclusive of Reserves) as at December 31, 2012 (1) Metal grade Contained metal Tonnes 000s Gold g/t Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs Mesquite Measured - oxide 19, Indicated - oxide 274, , Meqsuite M&I - oxide 293, , Measured - non oxide 4, Indicated - non oxide 96, , Mesquite M&I - non oxide 100, , Total Mesquite M&I 394, , Cerro San Pedro Measured - oxide 27, ,100 - Indicated - oxide 49, ,480 - CSP M&I - oxide 76, ,580 - Measured - sulphide 15, ,800 - Indicated - sulphide 60, ,600 - CSP M&I - sulphide 75, ,020 24,400 - Total CSP M&I 151, ,703 57,980 - Peak Mines Measured 2, Indicated 3, Peak M&I 5, , New Afton A&B Zones Measured 33, , Indicated 45, , A&B Zone M&I 79, ,913 6,690 1,769 C-Zone Measured 1, Indicated 11, C-Zone M&I 12, Total New Afton M&I 91, ,224 7,292 1, Year end 2012 Mineral Resources updated for Blackwater Resource update on April 4, 2013 and New Afton C-Zone update on May 1,

50 Appendix 7 Reserves and resources summary (cont d) Measured and Indicated mineral Resource statement (inclusive of Reserves) as at December 31, 2012 (1) Metal grade Contained metal Tonnes 000s Gold g/t Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs Blackwater Direct processing material Measured 116, ,896 21,057 - Indicated 189, ,729 36,467 - M&I (direct processing) 305, ,624 57,524 - Stockpile material Measured 26, ,496 - Indicated 64, ,108 - M&I (stockpile) 90, ,604 - Total Blackwater M&I 396, ,497 70,128 - Capoose Indicated 14, ,497 - Rainy River Measured 27, ,182 1,689 - Indicated 130, ,985 11,649 - Total Rainy River M&I 158, ,167 13,338 - El Morro 100% Basis 30% Basis Measured 307, ,705-1,135 Indicated 335, , El Morro M&I 643, ,891-2,097 Total Measured 9,477 49,005 2,092 Total Indicated 19, ,582 2,131 Total M&I 29, ,585 4, Year end 2012 Mineral Resources updated for Blackwater Resource update on April 4, 2013 and New Afton C-Zone update on May 1,

51 Appendix 7 Reserves and resources summary (cont d) Inferred Resource statement as at December 31, 2012 (1) Metal grade Contained metal Tonnes 000s Gold g/t Silver g/t Copper % Gold Koz Silver Koz Copper Mlbs Mesquite Oxide 35, Non oxide 15, Mesquite Inferred 50, Cerro San Pedro Oxides 53, ,400 - Sulphides 50, ,800 - CSP Inferred 103, ,200 - Peak Mines 1, New Afton A&B-Zone 14, C-Zone 20, New Afton Inferred 35, , Blackwater Direct processing 13, ,821 - Stockpile 3, Blackwater Inferred 17, ,263 - Capoose 64, ,789 - Rainy River 93, ,280 6, % Basis 30% Basis El Morro 137, , Total Inferred 6,822 88,359 1, Year end 2012 Mineral Resources updated for Blackwater Resource update on April 4, 2013 and New Afton C-Zone update on May 1,

52 Appendix 7 Reserves and resources notes Mineral reserves are contained w ithin 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. New Gold reports its Measured and Indicated mineral resources inclusive of its mineral reserves. Inferred mineral resources are not know n w ith 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 Canadian Institute of Mining, Metallurgy and Petroleum ( CIM ) definition standards and guidelines and Canadian National Instrument ( NI ). 1) Mineral Reserves for the company s mineral properties have been calculated based on the follow ing metal prices and low er cut-off criteria: Mineral Property Gold (US$/oz) Silver (US$/oz) Copper (US$/lb) Low er Cut-off Mesquite $1, g/t Au Oxide reserves 0.41 g/t Au Non-oxide reserves Cerro San Pedro $1,300 $ US$4.33 /t NSR Peak Mines $1,300 $24.00 $3.00 A$ /t NSR New Afton $1,300 - $3.00 US$24/t NSR El Morro $1,350 - $ % CuEq Rainy River $1,250 $ g/t AuEq Open Pit 3.5 g/t AuEq - Underground 52

53 Appendix 7 Reserves and resources notes (cont d) 2) Mineral Resources for the company s mineral properties have been calculated based on the follow ing metal prices and low er cut-off criteria: Mineral Property Gold (US$/oz) Silver (US$/oz) Copper (US$/lb) Low er Cut-off Mesquite $1, g/t Au Oxide resources 0.24 g/t Au Non-oxide resources Cerro San Pedro $1,400 $ g/t AuEq Open pit oxide resources 0.4g/t AuEq Open pit sulphide resources Peak Mines $1,400 $28.00 $3.25 A$97-137/t NSR New Afton $1,400 $28.00 $ % CuEq All resources El Morro $1,500 - $ % Cu Open pit resources 0.20% Cu Underground resources Blackw ater $1,400 $ g/t AuEq Capoose $1, g/t AuEq Rainy River $1,100 $ g/t AuEq Open Pit 2.5 g/t AuEq Underground Mineral resources have been estimated and reported in accordance with CIM definition standards and guidelines and Canadian NI ) Mineral resources are classif ied as Measured, Indicated and Inf erred resources and are reported based on technical and economic parameters consistent with the methods most suitable f or their potential commercial exploitation. Where dif f erent mining and/or processing methods might be applied to dif f erent portions of a mineral resource, the designators open pit and underground hav e been applied to indicate env isioned mining method. Likewise the designators oxide, non-oxide and sulphide hav e been applied to indicate the ty pe of mineralization as it relates to appropriate mineral processing method and expect ed pay able metal recov eries. Additional details regarding mineral resource estimation, classif ication and reporting parameters f or each of New Gold s mineral properties are prov ided in the respectiv e NI Technical Reports which are av ailable on SEDAR. 4) Blackwater April 4, 2013 update: 1. Mineral resources are reported within a conceptual open pit shell based on metal prices of $1,400/oz gold and $28.00/oz silv er. The March 2013 mineral resource estimate utilizes av erage metallurgical recov eries of 88.0% gold and 64.0% silv er f or oxide mineralization, 85.0% gold and 58.0% silv er f or transitional oxide/sulf ide mineralization and 85.0% gold and 44.0% silv er f or sulf ide mineralization. The 2012 y ear-end mineral resource estimate utilizes av erage metallurgical recov eries of 86% gold and 44.9% silv er f or all material ty pes. 2. Total contained metal is calculated based on Tonnes*Grade / grams per troy ounce. 3. Gold-equiv alent cut-of f grade estimates are based on $1,400/oz gold and $28.00/oz silv er and av erage metal recov eries as described in Note 1 abov e. 4. Direct processing material is def ined as mineralization abov e a 0.40 g/t AuEq cut-of f and likely to be mined and processed directly. 5. Stockpile material is def ined as mineralization between a 0.30 g/t AuEq and a 0.40 AuEq cut-of f that is suitable f or stockpiling and f uture processing based on av erage metallurgical recov eries as described in Note 1 abov e. 5) Qualif ied Person: The preparation of New Gold s mineral reserv e and resource statements has been done by or under the superv ision of Qualif ied Persons as def ined under Canadian NI and they were rev iewed and approv ed by Mark Petersen, a Qualif ied Person under NI and an of f icer of New Gold. 6) For additional inf ormation regarding reserv e and resource estimates, ref er to: New Gold s Annual Inf ormation Form f or the Financial Year Ended December 31, 2012 dated March 27, 2013; news release dated April 4, 2013 New Gold Announces Increased Gold Resources at Blackwater Project ; news release dated May 1, 2013 New Gold Announces 2013 First Quarter Results Increases Gold and Copper Resources at New Af ton C-Zone by Ov er 300 Percent ; and news release dated July 31, 2013 New Gold Second Quarter Deliv ers Increased Production at Lower Costs - Second Half of 2013 Remains on Track to Prov ide Strong Finish to the Year. 53

54 Appendix 8 Commodity price/foreign exchange assumptions Guidance assumptions (1) 2013 Gold price ($/oz) ~1,300 Silver price ($/oz) ~20.00 Copper price ($/oz) ~3.25 USD/AUD 1.00 USD/CAD 1.00 USD/MXN Spot: Spot Gold price ($/oz) 1,225 Silver price ($/oz) Copper price ($/oz) 3.20 USD/AUD 0.91 USD/CAD 0.94 USD/MXN Based on year-to-date average realized prices through September 30, 2013 and assumptions for the fourth quarter of 2013: Gold - $1,300 per ounce; Copper - $3.25 per pound; Silver - $20.00 per ounce; AUD/USD and CDN/USD parity. 54

55 Notes Page 4 1. Rankings based on 25 countries evaluated in 2013 Behre Dolbear Report 2013 Ranking of Countries for Mining Investment: Where Not to Invest. Page 5 1. Measured and Indicated Resources inclusive of Reserves. 2. Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estimates of Measured, Indicated and Inferred Resources and Technical Information. 3. New Gold completed the acquisition of 100% of Rainy River on October 15, Refer to Appendix 7 for detailed breakdow n of reserves and resources and information related to reserve and resource estimates. Page 7 1. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 2. Based on comparison w ith costs published by issuers listed in notes 4 and 5. The manner in w hich costs are determined may vary from one issuer to another. 3. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. 4. Mid-tier average includes: Alamos, Eldorado, Agnico Eagle, Aurico and IAMGOLD. 5. Senior average includes: Barrick, Goldcorp, Kinross and New mont. Page 8 1. Gold sales expected to be in the same general range as production. 2. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. Guidance for total cash costs and all-in sustaining costs incorporates realized prices and foreign exchange rates to September 30, 2013 and assumes commodity price assumptions of: Gold - $1,300/oz; Copper - $3.25/lb; Silver - $20.00/oz for the balance of Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. Page Refer to Appendix 7 for detailed disclosure on Reserve and Resource calculations and information related to reserve and resource estimates. Page Based on ~225Koz from Rainy River, ~500Koz from Blackw ater and ~90Koz from El Morro. Refer to slide 14 for more information. 2. Blackw ater s potential is not supported by a feasibility study. See Endnote Blackw ater PEA Additional Cautionary Note. 55

56 Notes continued Page Refer to Appendix 7 for detailed disclosure on Reserve and Resource calculations. 2. Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estimates of Measured, Indicated and InferredResources and Technical Information. Measured and Indicated Resources are inclusive of Reserves. At Blackw ater, the 8.6 million ounces of Resources referred to above excludes 0.9 million ounces of material to be stockpiled w hich has been classified as Measured and Indicated Resource. 3. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. Cash costs have been compared to industry data per GFMS reports w hich calculated an average, net of by-product credits, cash cost of $738 per ounce for the YE Blackw ater production and cash costs based on September 2012 PEA; Rainy River production and cash costs based on April 2013 Feasibility Study; and El Morro production and cash costs based on updated December 2011 Feasibility Study. Blackw ater s potential is not supported by a feasibility study. See Endnote Blackw ater PEA Additional Cautionary Note. Page 17 Source: Broker Reports, Company Estimates and Announcements, Bloomberg; all amounts in USD. 1. New Gold s average analyst consensus NAV. 2. New Gold s average analyst consensus NAV for El Morro; includes $50 million cash payment received from Goldcorp as part of transaction consideration. 3. New Gold acquired Richfield and Silver Quest on June 1, 2011 and December 23, 2011, respectively. 4. New Gold completed the acquisition of 100% of Rainy River on October 15, New Gold share price appreciation calculated using a base price of US$1.79 from the March 3, 2009 close. 6. S&P/TSX Global Gold Index includes 54 gold companies in various stages of development/production. 7. FTSE Gold Mines Index includes 26 gold producing companies. 8. HUI Index includes 15 of the major global gold producers. 56

57 Endnotes CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES Information concerning the properties and operations of New Gold has been prepared in accordance with Canadian standards under applicable Canadian securities laws, and may not be comparable to similar information for United States companies. The terms Mineral Resource, Measured Mineral Resource, In dicated Mineral Resource and Inferred Mineral Resource used in this presentation are Canadian mining terms as defined in accordance with National Instrument ( NI ) 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 November 2 7, 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. Under United States standards, mineralization may no t 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 ismade. As such, certain information contained in this presentation concerning descriptions of mineralization and resources under Canadian standards is not comparable to similar in formation made public by United States companies subject to the reporting and disclosure requirements of the United States Securities and Exchange Commission. An Inferred Mineral Resou rce 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 wil l ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre -feasibility 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 diffe r in certain respects from the standards of the United States Securities and Exchange Commission. TECHNICAL INFORMATION The scientific and technical information in this presentation has been reviewed and approved by Mark Petersen, a Qualified Person under National Instrument and officer of New Gold. Mineral Reserves and Mineral Resources The estimates of Mineral Reserves and Mineral Resources discussed in this presentation may be materially affected by environmenta l, permitting, legal, title, taxation, sociopolitical, marketing and other relevant issues. In addition to our February 5, 2013, April 4, 2013 and July 31, 2013 presentations, further details regarding Mineral Reserve and Resource estimates, including classifications, key assumptions and parameters used in such estimates and other related information for each of New Gold's mineral properties are provided in the respective NI Technical Reports, which are available at Blackwater PEA Additional Cautionary Note This note regarding the preliminary economic assessment ( PEA ) is in addition to cautionary language already included in this presentation as required under NI The Blackwater PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA based on these mineral resources will be realiz ed. Mineral resources that are not mineral reserves do not have demonstrated economic viability. This presentation includes information on New Gold s PEA with respect to the Blackwater Project, which was outlined in the PEA Technical Report filed on October 10, As disclosed in the presentation, New Gold has, since the date of the PEA, completed several non-material updates of the mineral resource estimate for the Blackwater Project. Although the PEA represents useful, accurate and reliable information based on the information available at the time of its publication, and provides an important indicator as to the economic potential of the Blackwater Project, the PEA is based on mineral resources estimates with an effective date of July 27, 2012, which do not reflect drilling conducted since their effective date, and the PEA does not reflect the latest mineral resource estimate discussed in subsequent presentation. Certa in assumptions used in the PEA, some of which relate to the July 27, 2012 mineral resource estimate, may have changed from those used for the new resource estimate, causing a variation of parameters. Moreover, the updated mineral resource estimate may impact how New Gold intends to develop the deposit, including pit outlines, production rates and mine life. 57