CORPORATE PRESENTATION. September 2017

Transcription

1 CORPORATE PRESENTATION September

2 Cautionary statements ALL AMOUNTS IN U.S. DOLLARS UNLESS OTHERWISE STATED CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain information contained in this presentation, including any information relating to New Gold s future financial or operating performance are forward looking. All statements in this presentation, other than statements of historical fact, which address events, results, outcomes 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, targeted, 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 presentation include the statements made under Projects Update, as well as other statements elsewhere in this presentation, including, among others, statements with respect to: guidance for production, operating expense and all-in sustaining costs, and the factors contributing to those expected results, as well as expected capital and other expenditures; planned development activities for 2017 at the Rainy River project, including the completion and commissioning of the processing facilities; planned preparations for operations at the Rainy River project, including the mining rate, removal of overburden and waste, and storage of water; the expected production, costs, economics, grade and other operating parameters of the Rainy River project; the capacity of the starter dam; targeted timing for permits, including the amendment to Schedule 2 of the Metal Mining Effluent Regulations; targeted timing for commissioning, start-up, production and commercial production; and targeting timing for development and other activities related to the Rainy River project. 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 risk factors and uncertainties, many of which are beyond New Gold s ability to control or predict. Certain material assumptions regarding such forward-looking statements are discussed in this presentation, New Gold s latest annual management s discussion and analysis ( MD&A ), Annual Information Form and Technical Reports filed at and on EDGAR at In addition to, and subject to, such assumptions discussed in more detail elsewhere, the forward-looking statements in this presentation are also subject to the following assumptions: (1) there being no significant 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 mineral 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) equipment, labour and materials costs increasing on a basis consistent with New Gold s current expectations; (7) arrangements with First Nations and other Aboriginal groups in respect of the Rainy River project being consistent with New Gold s current expectations; (8) all required permits, licenses and authorizations, including the amendment to Schedule 2 of the Metal Mining Effluent Regulations, being obtained from the relevant governments and other relevant stakeholders within the expected timelines; (9) the results of the feasibility study for the Rainy River project being realized; and (10) in the case of production, cost and expenditure outlooks at the operating mines and the Rainy River project for 2017, commodity prices and exchange rates being consistent with those estimated for the purposes for 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 and the availability and management of capital resources; additional funding requirements; price volatility in the spot and forward markets for metals and other commodities; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States, Australia and Mexico; discrepancies between actual and estimated production, between actual and estimated mineral reserves and mineral resources and between actual and estimated metallurgical recoveries; fluctuation in treatment and refining charges; changes in national and local government legislation in Canada, the United States, Australia and Mexico 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 Rainy River project; 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 mineral reserves and mineral resources; competition; inherent uncertainties with cost estimates and estimated schedule for the construction and commencement of production at Rainy River as contemplated; loss of key employees; 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 the Rainy River 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; unexpected delays and costs inherent to consulting and accommodating rights of Indigenous groups; 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 amendment to Schedule 2 of the Metal Mining Effluent Regulations 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 hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses and risks associated with the start of production of a mine, such as Rainy River, (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 Annual Information Form, MD&A and other disclosure documents filed on and available at and on EDGAR 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 any forward-looking statements whether as a result of new information, events or otherwise, except in accordance with applicable securities laws. The footnotes, endnotes and appendix to this presentation contain important information. The endnotes and appendix are found at the end of the presentation. All amounts in US dollars unless otherwise indicated. 2

3 New Gold Strategic pillars Focus on long-term shareholder value creation CANADIAN FOCUSED LOW COST GROWTH OPPORTUNITIES 14.7 Moz gold reserves (1), >90% located in Canada H1 17 all-in sustaining costs (2) of $671/oz ~800 Koz annual production potential from growth projects (3) 1. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold s December 31, 2016 MD&A. Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources and Technical Information. 2. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 3. Based on 325 Koz annual production from Rainy River and ~485 Koz annual production from Blackwater, as outlined in the feasibility studies for the projects. 3

4 2017 key objectives Streamline organizational structure and strengthen Rainy River Team Deliver operationally and pursue opportunities for further cash flow optimization Enhance Financial Flexibility Execute on updated Rainy River plan Advance organic growth projects 4

5 Experienced, significantly invested team Directly aligned with shareholders Executive Management Team Hannes Portmann Paula Myson Cory Atiyeh Peter Woodhouse President & Chief Executive Officer Executive Vice President & Chief Financial Officer Vice President, Operations Vice President, Projects Board of Directors Ian Pearce David Emerson James Estey Vahan Kololian Chair of the Board, New Gold Former Canadian Cabinet Minister Chairman, PrairieSky Royalty Founder, TerraNova Partners Martyn Konig Chief Investment Officer, T Wealth Management Randall Oliphant Former Executive Chairman, New Gold Hannes Portmann President & Chief Executive Officer Kay Priestly Former Chief Executive Officer, Turquoise Hill Resources Marilyn Schonberner Raymond Threlkeld Chief Financial Officer Nexen Energy, ULC Director Kirkland Lake Gold 5

6 New Gold assets On track to meet full-year guidance First Half Guidance CANADA BLACKWATER NEW AFTON 1 Mine Life 17 years (1) Mine Life 11 years (2) 194 Koz Koz RAINY RIVER Mine Life 14 years Gold Production Gold Production USA 3 MESQUITE Mine Life 5 years plus residual leach 50 Mlbs Copper Production Mlbs Copper Production MEXICO 5 CERRO SAN PEDRO Residual leach $616 $/oz $630-$670 $/oz Gold Operating Expense Gold Operating Expense AUSTRALIA 2 PEAK MINES Mine Life 5 years Operating Mines Development Projects $671 $/oz All-in Sustaining Costs (3) $760-$800 $/oz All-in Sustaining Costs (3) 1. Based on 2013 Feasibility Study. 2. Six years of current B-zone reserves plus five years of C-zone. 3. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 6

7 Disciplined management of Capital resources and liquidity position June 30 th $199 million Cash and cash equivalents (1) $174 million Undrawn credit facility (2) $373 million Liquidity Position + Ongoing sustaining free cash flow and increased cash flow certainty with gold/copper contracts in Cash and cash equivalents as at June 30, Undrawn credit facility as at June 30, $126 million of $400 million facility used for Letters of Credit and $100 million drawn at June 30,

8 Short-term and long-term Financial flexibility Short-Term Cash Flow Certainty Gold Option Contracts Upside Floor $1,400 /oz $1,250 /oz 20,000 ounces per month Copper Swaps at at $2.73 /lb 7.3 million pounds per month 120,000 ounces of New Gold s second half 2017 gold production 43.7 million pounds (7.3 million pounds per month from July to December 2017) at $2.73 per pound Option contracts cover 20,000 ounces of gold per month from July to December 2017 Long-Term Balance Sheet Flexibility No debt due until 2022 Recent debt restructuring extended maturity and provides further flexibility Summary of new terms: APRIL 2012 NOTES MAY 2017 NOTES Face Value $300 million $300 million Maturity April 15, 2020 May 15, 2025 Interest Rate 7.00% 6.375% Extended maturity Lowered interest rate Face value $900 million in long-term debt at June 30, $174 million undrawn credit facility as at June 30, $126 million of $400 million facility used for Letters of Credit and $100 million drawn at June 30, Face value $500 million, 6.25% notes due in 2022 Callable at 103.1% after November 2017 Face value $300 million, 6.375% notes due in 2025 Face value $100 million drawn on credit facility (1) 8

9 Rainy River project summary 1 Country Ranking (1) Ontario, Canada Land package over 200 square kilometres Jurisdiction Supportive local government and community Close to regional infrastructure ~550 people currently on operations team >70% from local community, including >30% from Indigenous communities Resource Scale (2) 0.9 Moz at 5.3 g/t Underground 3.0 Moz at 1.0 g/t Open Pit 0.6 Moz at 3.7 g/t Underground 1.7 Moz at 0.8 g/t Open Pit 3.9 Moz Gold Reserves 2.3 Moz Gold M&I Resources 1. Source: Based on 2015 Behre Dolbear Report 2015 Ranking of Countries for Mining Investment. 2. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold s December 31, 2016 MD&A. Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources and Technical Information. 9

10 Rainy River Delivering on key milestones Staged commissioning of processing facilities to commence with primary crusher in March 2017 COMPLETED Mining rate to average approximately 120,000 tonnes per day through production start ON PLAN Complete construction of water management pond and tailings management area start-up cell end of August COMPLETED Production start in mid-september COMPLETED Schedule 2 amendment expected in the fourth quarter of 2017 ON SCHEDULE Commercial production targeted for November 2017 ON SCHEDULE 2017 development capital through November commercial production of $515 million ON PLAN 10

11 Rainy River Current status First Production Capital Spent Project to Date Total Remaining Capital September $1,063 million $229 million 2017 Through June 2017 From July 2017 through targeted November commercial production Mining/Earthworks Mining rate during July averaged over 125,000 tonnes per day and accelerated to an average of over 135,000 tonnes per day in August Earthworks are 95% complete Processing Process plant underwent a successful closed loop mill test run with low grade ore in August; Ball and SAG mill tested successfully up to nameplate capacity Ball mill, SAG mill and the leach carbon-in-pulp process circuits are fully commissioned Permitting Approval for design and construction of creek closures using sheet pile received in August 2017 Schedule 2 amendment expected in the fourth quarter of

12 Long-term growth opportunities New Afton C-Zone Blackwater Rimfire Five year mine life extension opportunity 8.2 million ounce gold reserve in Canada Earn-in agreement on Fifield Project located in Australia Long-term growth potential in mining friendly jurisdictions Growth portfolio benefits from Projects at different stages of development cycle Projects with varying capital requirements Projects with flexible timelines 12

13 Strong Canadian presence Multiple organic growth options in portfolio Our Footprint in Canada Top global >90% mining jurisdiction (1) gold reserves (2) in Canada Significant Canadian exposure >50% of 2016 operating margin from Canadian operations ~25% gold production from Canadian assets NEW AFTON (production) 1.2 Moz Gold Reserve (2) 1.0 Blb Copper Reserve (2) 2016 operating margin: $182 million RAINY RIVER (commissioning) 3.9 Moz Gold Reserve (2) 10.0 Moz Silver Reserve (2) 204 km 2 land package BLACKWATER (permitting) 8.2 Moz Gold Reserve (2) 60.8 Moz Silver Reserve (2) 1,058 km 2 land package Operating Mines Development Projects 1. Source: 2015 Behre Dolbear Report 2015 Ranking of Countries for Mining Investment. 2. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold s December 31, 2016 MD&A. Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources and Technical Information. 13

14 A history of long-term value creation Performance Since Beginning of 2016 New Gold (NYSE MKT) Gold Price S&P/TSX Global Gold Index 73% 63% 24% Dec 31/15 Today Performance Since Beginning of 2009 (1) Compound Annual Growth Rate 13.0% 5.2% (5.4%) New Gold (NYSE MKT) Gold Price S&P/TSX Global Gold Index (2) Dec 31/08 1. New Gold/Western Goldfields business combination announced in March S&P/TSX Global Gold Index includes 47 gold companies in various stages of development/production, inclusive of dividends. 165% 51% (36%) Today 14

15 Establishing the Leading Intermediate Gold Company Invested and Experienced Team Among Lowest- Cost Producers with Established Operational Track Record Portfolio of Assets in Top-Rated Jurisdictions Peer-Leading Growth Pipeline A History of Value Creation 15

16 Appendices Corporate 17 New Afton 26 Rainy River 29 Blackwater, Exploration, Reserves and Resources 37

17 Summary of debt Appendix 1 CREDIT FACILITY SENIOR UNSECURED NOTES (November 2012) SENIOR UNSECURED NOTES (May 2017) Face Value $400 million (1) $500 million $300 million Maturity August 14, 2019 November 15, 2022 May 15, 2025 Interest Rate See Key features 6.25% 6.375% Payable Revolving credit Semi-annually Semi-annually Conversion price n/a n/a n/a Current trading value n/a ~104 ~104 Key features Interest rate spread varies between 1.00%-3.25% based on leverage ratio Current interest rate spread of 3.25% Senior unsecured Redeemable after November 15, 2017 at par plus half coupon, declining ratably to par Unlimited dividends if leverage ratio below 2:1 Senior unsecured Redeemable after May 15, 2020 at 104.8% down to 100% of face after 2023 Unlimited dividends if leverage ratio below 2:1 1. $174 million undrawn credit facility as at June 30, $126 million of $400 million facility used for Letters of Credit and $100 million drawn at June 30,

18 Credit facility overview Appendix 1 $126 million (1) of the facility was used to issue letters of credit for closure obligations at New Gold s producing mines and development projects Current Revolving Credit Facility ($mm) Revolving credit facility (expires August 14, 2019) $400 Letters of credit issued $126 Drawn $100 Undrawn credit facility $174 Credit Facility Financial Covenants Maximum Net Debt/EBITDA COVENANTS Q2 17-Q3 17 Q4 17-Q1 18 Thereafter 4.5x 4.0x 3.5x June 30, 2017 actual Net debt/ebitda 2.5x 1. $174 million undrawn credit facility as at June 30, $126 million of $400 million facility used for Letters of Credit and $100 million drawn at June 30,

19 2017 second quarter highlights Production 105,064 oz Gold 26.4 mlbs Copper Costs $627 per oz Gold operating expense $737 per oz All-in sustaining costs (1) Financial $80 million Cash generated from operations $0.14 Cash flow per share Balance Sheet $199 million Cash balance at June 30, 2017 Increased financial flexibility with the redemption of 2020 Senior Notes and issuance of 2025 Senior Notes Rainy River Project schedule and capital cost estimate in line with updated plan $160 million in capital expenditures during the second quarter Sale of Peak Mines Initiated process to divest Peak Mines, located in New South Wales, Australia Enables company to focus on its America s centric portfolio 1. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 19

20 Mine-by-mine operating results Appendix Second Quarter Gold Production (Koz) 105,064 Gold Operating Expense (1) ($/oz) $627 All-in Sustaining Costs (2) ($/oz) $ $426 $703 $715 $1,269 $789 $945 $1, ($358) 1. Operating expense: Silver - $8.31/oz, Copper - $1.26/lb. 2. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 3. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. New Afton co-product all-in sustaining costs: Second quarter: Gold - $769/oz, Copper - $1.53/lb. 4. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. Peak Mines co-product all-in sustaining costs: Second quarter: Gold - $1,032/oz, Copper - $2.33/lb. $417 per ounce of reported all-in sustaining costs at CSP related to cash expenditures incurred in prior periods 20

21 Consolidated financial summary Appendix 1 Average Realized Prices (1) GOLD ($/oz) $1,267 $1,279 1% Financial Summary (in millions of U.S. dollars, except per share amounts) THREE MONTHS ENDED JUNE 30 SIX MONTHS ENDED JUNE Revenues $186 $180 $355 $335 Operating margin (2) COPPER ($/lb) $ % $2.57 Net earnings (loss) 23 (14) Net earnings (loss) per share 0.04 (0.03) Adjusted net earnings (3) SILVER ($/oz) $$17.39 $16.96 Adjusted net earnings per share (3) Cash generated from operations (2%) Cash generated from operations before changes in non-cash operating working capital (4) Refer to Endnote on average realized prices under the heading Non-GAAP Measures. 2. Refer to Endnote on operating margin 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 net cash generated from operations before changes in working capital under the heading Non-GAAP Measures. 21

22 Detailed operating results and assumptions Appendix 1 NEW AFTON MESQUITE PEAK MINES 2016A 2017E 2016A 2017E 2016A 2017E Tonnes processed (000 tonnes) 5,773 5,600 5,800 18,969 18,500 19, Total tonnes mined (000 tonnes) 6,113 6,500 6,700 58,751 54,000 58, Strip ratio Gold grade (g/t) Silver grade (g/t) Copper grade (%) 0.81% 0.87% 0.91% 1.03% 1.00% 1.10% Gold recovery (1) (%) 81.9% 74.0% 76.0% ~60% ~60% 93.3% 92.0% 94.0% Silver recovery (%) Copper recovery (%) 84.4% 82.0% 84.0% 90.1% 83.0% 85.0% PRODUCTION Gold production (Koz) Silver production (Koz) Copper production (Mlbs) ~15.0 Reserve Grade at December 31, 2016 Gold grade (g/t) Silver grade (g/t) Copper grade (%) 0.78% 1.32% 1. Represents implied recoveries. 22

23 2017 All-in sustaining costs sensitivities Appendix 1 Copper sensitivity includes impact of copper hedges CATEGORY COPPER PRICE CDN/USD AUD/USD Base Assumption $2.50 $1.30 $1.35 Sensitivity +/-$0.25 +/-$0.05 +/-$0.05 COST PER OUNCE IMPACT Rainy River +/-$45 New Afton +/-$35 +/-$80 Mesquite Peak Mines +/-$40 +/-$50 New Gold Total +/-$15 +/-$20 +/-$10 1. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 23

24 2017 Capital expenditures by category Appendix 1 ~$640 million Total Capital Expenditures $5 million New Afton $5 million $20 million Mesquite Peak Mines $10 million $30 million Peak Mines ~$105 million Sustaining Capital Blackwater ~$535 million Growth Capital $55 million $515 million New Afton Rainy River (1) 1. Growth capital to November 2017 commercial production. 24

25 2017 Capital expenditures by category (cont d) Appendix 1 Rainy River (1) New Afton Peak Mines Mesquite Blackwater $515 million $60 million $35 million $20 million $10 million $305 million mining, infrastructure and process facilities $170 million owners costs, indirects and other $40 million contingency $55 million mine development, plant and equipment $5 million C-zone exploration $30 million plant and equipment and underground development $5 million future development of Great Cobar $20 million plant and equipment, capital components $10 million permitting, environmental assessment approvals and trade-off studies Growth capital Sustaining capital 1. Growth capital to November 2017 commercial production. 25

26 New Afton C-zone opportunity (1) Appendix 2 Jurisdiction British Columbia, Canada Annual Gold Production 108 Koz Annual Copper Production 81 Mlbs Mine Life 5 years Development Capital (2) $402 mm 1. Based on 2016 Feasibility Study. 2. Includes $41 million provision for capital escalation and $88 million for contingency. 26

27 New Afton C-zone Appendix 2 Measured Indicated Inferred Main Zone Extraction Level C-zone C-zone Block Cave Volume 1,180m Open at depth 27

28 New Afton C-zone feasibility study economics Appendix 2 C-zone: Key Sensitivities $0.25 per pound change in copper price ~$34 million in after-tax NPV and 1.9% change in IRR $0.05 change in exchange rate ~$24 million in after-tax NPV and 1.5% change in IRR $100 per ounce change in gold price ~$18 million in after-tax NPV and 1.0% change in IRR C-zone: Project Economics (Long-term consensus commodity prices and foreign exchange rates) 2016 FEASIBILITY STUDY After-tax 5% NPV ($mm) 84 After-tax IRR (%) 10.3 After-tax Payback (years) 3.4 Gold Price ($/oz) Copper Price ($/lb) Foreign Exchange (CDN/USD) $1,200 $2.75 $

29 Rainy River site layout Appendix 3

30 Rainy River Plant site construction photos Appendix 3 April 2015 August 2015 October 2015 November

31 Rainy River Plant site construction photos (cont d) Appendix 3 December 2015 February 2016 building June 2016 July

32 Rainy River Plant site construction photos (cont d) Appendix 3 September 2016 Primary crusher CIP Coarse tank ore installation reclaim Pebble crusher Elevated section from coarse ore to transfer tower 32

33 Rainy River Plant site construction photos (cont d) Appendix 3 October 2016 Piping installation Gold room Mechanical and piping installation Process plant 33

34 Rainy River Plant site construction photos (cont d) Appendix 3 April 2017 Crusher Feed Process Water System Mechanical Tailings and Cell piping installation Open Pit 34

35 Rainy River Plant site construction photos (cont d) Appendix 3 July 2017 Water Management Pond Ariel View of Process Plant Primary Crusher and Conveyor System Open Pit 35

36 Rainy River Plant site construction photos (cont d) Appendix 3 August 2017 Open Pit Ball mill and SAG mill commissioned Construction of TMA start-up cell complete Aerial of TMA start-up cell 36

37 Blackwater Flagship project already in portfolio Appendix 4 Jurisdiction British Columbia, Canada Significant Gold Reserve (1) 8.2 Moz Silver Reserve (1) 60.8 Koz Land Package 1,058 km 2 Environmental Assessment permits expected in For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold s December 31, 2016 MD&A. Refer to Endnotes under the heading Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral Resources and Technical Information. 37

38 2017 Exploration program overview Included in 2017 all-in sustaining costs Appendix 4 $2 million Fifield New Gold has opportunity to earn a 70% interest $4 million New Afton Underground infill drilling to upgrade the lower portion of the C-zone to measured confidence level and reconnaissance drilling on emerging prospects $17 million $8 million Peak Mines $3 million Rainy River Continue to advance district reconnaissance and target identification 38

39 2017 Exploration program overview (cont d) Appendix Program Peak Mines Further extend mine s history of mineral reserve and resource replacement, particular focus on gold-dominant targets in Southern Mine Corridor Pb-Zn Lenses Chronos Perseverance Southern Mine Corridor Main Gold Lens Peak Mill Peak New Occidental Proteus Area Northern Mine Corridor Great Cobar Gladstone Anjea Chesney Jubilee New Cobar Dapville Pb-Zn Lens Copper-Gold Lens 9 kilometres 39

40 Mineral Reserves and resources summary Appendix 4 Mineral Reserves and Resources Summary GOLD Koz AS AT DECEMBER 31, 2016 AS AT DECEMBER 31, 2015 SILVER Moz COPPER Mlbs GOLD Koz SILVER Moz COPPER Mlbs Proven and Probable reserves 14, ,113 14, ,193 New Afton 1, ,033 1, ,112 Mesquite 1,179 1,492 Peak Mines Cerro San Pedro 13 Rainy River 3, ,814 9 Blackwater 8, , Measured and Indicated resources (exclusive of reserves) 6, ,121 6, ,065 Inferred resources 1, , information per Annual Information Form dated March 29,

41 Mineral Reserves Statement as at December 31, 2016 Appendix 4 Proven and Probable METAL GRADE CONTAINED METAL TONNES 000s GOLD g/t SILVER g/t COPPER % GOLD Koz SILVER Koz COPPER Mlbs New Afton Mesquite Peak Mines A&B Zones Proven Probable 34, , C-zone Proven Probable 25, , Total New Afton P&P 60, ,161 3,874 1,033 Proven 7, Probable 63, ,056 Total Mesquite P&P 71, ,179 Proven Southern Mine Corridor Probable Total Southern Mine Corridor P&P 1, Proven Northern Mine Corridor Probable Total Northern Mine Corridor P&P 1, Stockpile Proven Combined P&P Proven 1, Probable 1, Total Peak Mines P&P 2,

42 Mineral Reserves Statement as at December 31, 2016 Appendix 4 Proven and Probable continued METAL GRADE CONTAINED METAL Rainy River Direct processing material Stockpile material Combined P&P Open Pit Underground Open Pit TONNES 000s GOLD g/t SILVER g/t COPPER % GOLD Koz SILVER Koz COPPER Mlbs Proven 16, ,353 Probable 45, ,728 4,692 Open Pit P&P (direct processing) 61, ,499 6,045 Proven Probable 5, ,956 Underground P&P (direct processing) 5, ,956 Proven 9, Probable 27, ,540 Open Pit P&P (stockpile) 36, ,002 Proven 26, ,815 Probable 77, ,037 8,188 Total Rainy River P&P 103, ,943 10,003 Blackwater Direct processing material Stockpile material Proven 124, ,790 22,100 Probable 169, ,730 22,300 P&P (direct processing) 294, ,520 44,400 Proven 20, ,300 Probable 30, ,100 P&P (stockpile) 50, ,400 Total Blackwater P&P 344, ,170 60,800 Total P&P 14,704 75,531 1,113 42

43 Mineral Resources Statement as at December 31, 2016 Appendix 4 Measured and Indicated (Exclusive of Reserves) METAL GRADE CONTAINED METAL TONNES 000s GOLD g/t SILVER g/t COPPER % GOLD Koz SILVER Koz COPPER Mlbs New Afton Mesquite Peak Mines A&B Zones C-zone HW Lens Measured 16, , Indicated 10, A&B Zone M&I 26, , Measured 2, Indicated 16, , C-zone M&I 18, , Measured Indicated 10, HW Lens M&I 10, Total New Afton M&I 56, ,158 3, Measured 5, Indicated 65, Total Mesquite M&I 70, ,040 Southern Mine Corridor Northern Mine Corridor Measured Indicated Southern Mine Corridor M&I 1, Measured Indicated 3, Northern Mine Corridor M&I 3, Combined M&I Measured 1, Indicated 3, Total Peak Mines M&I 5, ,

44 Mineral Resources Statement as at December 31, 2016 Appendix 4 Measured and Indicated (Exclusive of Reserves) continued METAL GRADE CONTAINED METAL TONNES 000s GOLD g/t SILVER g/t COPPER % GOLD Koz SILVER Koz COPPER Mlbs Rainy River Direct processing material Stockpile material Combined M&I Open Pit Underground Open Pit Measured 3, Indicated 28, ,079 3,485 Open Pit M&I (direct processing) 32, ,209 3,814 Measured Indicated 5, ,678 Underground M&I (direct processing) 5, ,678 Measured 2, Indicated 34, ,694 Open Pit M&I (stockpile) 37, ,917 Measured 6, Indicated 68, ,163 7,857 Total Rainy River M&I 75, ,322 8,409 Blackwater Direct processing material Stockpile material Measured Indicated 42, ,160 6,277 M&I (direct processing) 42, ,173 6,339 Measured Indicated 14, ,831 M&I (stockpile) 14, ,831 Total Blackwater M&I 57, ,323 8,169 Total M&I Exclusive of Reserves 6,222 21,515 1,121 44

45 Mineral Resources Statement as at December 31, 2016 Appendix 4 Inferred METAL GRADE CONTAINED METAL TONNES 000s GOLD g/t SILVER g/t COPPER % GOLD Koz SILVER Koz COPPER Mlbs New Afton A&B Zones 7, C-zone 6, HW Lens Total New Afton Inferred 15, Mesquite 7, Peak Mines Rainy River Blackwater Southern Mine Corridor Northern Mine Corridor 3, Total Peak Inferred 3, Direct processing material Open Pit 5, Underground 5, Total Direct Processing 10, Stockpile Open Pit 8, Total Rainy River Inferred 19, ,430 Direct processing 10, ,333 Stockpile 2, Total Blackwater Inferred 13, ,606 Total Inferred 1,644 4,

46 Mineral Resources Statement as at December 31, 2016 Appendix 4 Inferred In addition to the Peak Mines inferred resource stated above, the below table summarizes additional inferred resources contained in satellite lead-zinc lenses at the Chronos, Peak and Great Cobar deposits. METAL GRADE CONTAINED METAL TONNES 000s GOLD g/t SILVER g/t COPPER % LEAD % ZINC % GOLD Koz SILVER Koz COPPER Mlbs LEAD Mlbs ZINC Mlbs Southern Mine Corridor 1, , Peak Mines Northern Mine Corridor Peak Pb-Zn Lenses Inferred 1, ,

47 Reserves and resources notes Lower cut-offs for the company s Mineral Reserves and Mineral Resources are outlined in the following table: Appendix 4 1. New Gold s Mineral Reserves and Resources have been estimated in accordance with the CIM Standards, which are incorporated by reference in NI All Mineral Resource and Mineral Reserve estimates for New Gold s properties and projects are effective December 31, New Gold s year-end 2016 Mineral Reserves and Mineral Resources have been estimated based on the following metal prices and foreign exchange rate criteria: GOLD $/oz SILVER $/oz COPPER $/lb LEAD $/pound ZINC $/pound CAD/USD AUD/USD MXN/USD Mineral Reserves $1,250 $15.00 $2.75 N/A N/A $1.25 $1.30 $17.00 Mineral Resources $1,350 $17.00 $3.00 $0.85 $1.00 $1.25 $1.30 $ Lower cut-offs for the company s Mineral Reserves and Mineral Resources are outlined in the following table: MINERAL PROPERTY New Afton Mesquite Blackwater Main Zone B1 & B2 Block: B3 Block & C-Zone: O/P direct processing: O/P stockpile: C$ 17.00/t C$ 24.00/t RESERVES LOWER CUT-OFF g/t AuEq 0.32 g/t AuEq RESOURCES LOWER CUT-OFF All Resources: 0.40% CuEq Oxide & Transitional: 0.16 g/t Au (0.005 oz/t Au) 0.12 g/t Au ( oz/t Au) Sulphide: 0.41 g/t Au (0.012 oz/t Au) 0.24 g/t Au (0.007 oz/t Au) Peak Mines All ore types: A$ 80/t to A$ 146/t A$ 113/t to A$ 150/t Cerro San Pedro All ore types: US$ 6.00/t NA Rainy River O/P direct processing: g/t AuEq g/t AuEq O/P stockpile: 0.30 g/t AuEq 0.30 g/t AuEq U/G direct processing: 3.50 g/t AuEg 2.50 g/t AuEq All Resources: 0.40% AuEq 47

48 Reserves and resources notes (cont d) Appendix 4 5. New Gold reports its Measured and Indicated Mineral Resources exclusive of Mineral Reserves. Measured and Indicated Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Inferred Mineral Resources have a greater amount of uncertainty as to their existence, economic and legal feasibility, do not have demonstrated economic viability, and are likewise exclusive of Mineral Reserves. Numbers may not add due to rounding. 6. Mineral Resources are classified as Measured, Indicated and Inferred based on relative levels of confidence in their estimation and on technical and economic parameters consistent with the methods most suitable to their potential commercial exploitation. Where different mining and/or processing methods might be applied to different portions of a Mineral Resource, the designators open pit and underground are used to indicate the envisioned mining method. The designators oxide, non-oxide and sulphide have likewise been applied to indicate the type of mineralization as it relates to the appropriate mineral processing method and expected payable metal recoveries, and the designators direct processing and stockpile have been applied to differentiate material envisioned to be mined and processed directly from material to be mined and stored in a stockpile for future processing. Mineral Reserves and Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing and other risks and relevant issues. Additional details regarding Mineral Reserve and Mineral Resource estimation, classification, reporting parameters, key assumptions and associated risks for each of New Gold s material properties are provided in the respective NI Technical Reports, which are available at 7. Rainy River Project: In addition to the criteria described above, Mineral Reserves and Mineral Resources for the Rainy River project are reported according to the following additional criteria: Underground Mineral Reserves are reported peripheral to and/or below the open pit Mineral Reserve pit shell, which has been designed and optimized based on an $800/oz gold price. Underground Mineral Resources are reported below a larger Mineral Resource pit shell, which has been defined based on a $1,350/oz gold price. Approximately forty percent (40%) of the gold metal content defined as underground Mineral Reserves is derived from material located between the Mineral Reserve pit shell and the Mineral Resource pit shell; the remaining sixty percent (60%) of the metal content defined as underground Mineral Reserves is derived from material located below the Mineral Resource pit shell. Open pit Mineral Resources exclude material reported as underground Mineral Reserves. 8. Qualified Person: The preparation of New Gold's Mineral Reserve and Mineral Resource estimates has been done by Qualified Persons as defined under NI , under the oversight and review of Mr. Mark A. Petersen, a Qualified Person under NI

49 Commodity price/foreign exchange assumptions Appendix guidance assumptions Spot 2017 Silver price ($/oz) Copper price ($/lb) 2.50 AUD/USD 1.35 CDN/USD 1.30 MXN/USD SPOT Gold price ($/oz) 1,295 Silver price ($/oz) Copper price ($/lb) 2.95 AUD/USD 1.23 CDN/USD 1.25 MXN/USD

50 Endnotes 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 presentation 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 May 10, 2014 and incorporated by reference in National Instrument 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 presentation concerning descriptions of mineralization and mineral 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 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 relating to the construction of and expected operations at New Gold s Rainy River project contained herein has been reviewed and approved by Binsar Sirait, Director, Mine Engineering of New Gold. All other scientific and technical information contained herein has been reviewed and approved by Mark A. Petersen, Vice President, Exploration of New Gold, except for the scientific and technical information relating to the construction of and expected operations at New Gold s Rainy River project, which has been reviewed and approved by Binsar Sirait, Director, Mine Engineering of New Gold. Mr. Sirait is an engineer and a SME Registered Member. Mr. Petersen is a SME Registered Member, AIPG Certified Professional Geologist. Mr. Petersen and Mr. Sirait are "Qualified Persons" for the purposes of NI For additional technical information on New Gold s material properties, including a detailed breakdown of Mineral Reserves and Mineral Resources by category, as well as key assumptions, parameters and risks, refer to New Gold s Annual Information Form for the year ended December 31, 2015 filed on NON-GAAP MEASURES (1) ALL-IN SUSTAINING COSTS All-in sustaining costs per ounce is a non-gaap financial measure. 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 assists 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 IFRS 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 IFRS and is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under IFRS. Further details regarding historical all-in sustaining costs and a reconciliation to the nearest IFRS measures are provided in the MD&A accompanying New Gold s financial statements filed from time to time on Sustaining costs is a non-gaap financial measure. New Gold defines sustaining costs as the difference between all-in sustaining costs and total cash costs, being the sum of net 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. Management uses sustaining costs to understand the aggregate net result of the drivers of all-in sustaining costs other than total cash costs. The line items between cash costs and all in sustaining costs in the tables below break down the components of sustaining costs. Sustaining costs is intended to provide additional information only and does not have any standardized meaning under IFRS 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 IFRS. 50

51 Endnotes (2) TOTAL CASH COSTS Total cash costs per ounce is a non-gaap financial measure which is 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 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 performance and ability to generate liquidity through operating cash flow to fund future capital expenditures and working capital needs. 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 presentation is net of by-product sales. 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 IFRS 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 IFRS and is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under GAAP. Further details regarding historical total cash costs and a reconciliation to the nearest IFRS measures are provided in the MD&A accompanying New Gold s financial statements filed from time to time on (3) AVERAGE REALIZED PRICE Average realized price per ounce or pound sold is a non-gaap financial measure with no standard meaning under IFRS. Management uses this measure to better understand the price realized in each reporting period for gold, silver, and copper sales. Average realized price is intended to provide additional information only and does not have any standardized definition under IFRS; it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate this measure differently and this measure is unlikely to be comparable to similar measures presented by other companies. Further details regarding average realized price and a reconciliation to the nearest IFRS measure is provided in the MD&A accompanying New Gold s financial statements filed from time to time on (4) CASH GENERATED FROM OPERATIONS BEFORE CHANGES IN WORKING CAPITAL Cash generated from operations before changes in working capital is a non-gaap financial measures with no standard meaning under IFRS, excludes changes in non-cash operating working capital. Management uses this measure to evaluate the Company s ability to generate cash from its operations before temporary working capital changes. Further details regarding cash generated from operations before changes in working capital and a reconciliation to the nearest IFRS measure is provided in the MD&A accompanying New Gold s financial statements filed from time to time on (5) ADJUSTED NET (LOSS)/EARNINGS Adjusted net (loss)/earnings and adjusted net (loss)/earnings per share are non-gaap financial measures. Net (loss)/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 (loss)/earnings from continuing operations. The company uses this measure for its own internal purposes. Management s internal budgets and forecasts and public guidance do not reflect fair value changes on senior notes and non-hedged derivatives, foreign currency translation and fair value through profit or loss and financial asset gains/losses. Consequently, the presentation of adjusted net earnings and adjusted net earnings per share 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 and adjusted net earnings per share 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 (loss)/earnings and adjusted net (loss)/earnings per share are intended to provide additional information only and do not have any standardized meaning under IFRS 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 IFRS. The measures are not necessarily indicative of operating profit or cash flows from operations as determined under IFRS. (6) OPERATING MARGIN Operating margin is a non-gaap financial measure with no standard meaning under IFRS, which management uses to evaluate the Company s aggregated and mine-by-mine contribution to net earnings before non-cash depreciation and depletion charges. 51