ANNUAL GENERAL MEETING April 25, 2018 1
Cautionary statements ALL AMOUNTS IN U.S. DOLLARS UNLESS OTHERWISE STATED CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain information contained in this news release, including any information relating to New Gold s future financial or operating performance are forward looking. All statements in this news release, other than statements of historical fact, which address events, 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 news release include the statements made under 2018 first quarter operational results from continuing operations and projects update, as well as other statements elsewhere in this news release, 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, and timing for approval of the environmental assessment for the Blackwater project. All forward-looking statements in this news release are based on the opinions and estimates of management as of the date such statements are made and are subject to important risk factors and uncertainties, many of which are beyond New Gold s ability to control or predict. Certain material assumptions regarding such forward-looking statements are discussed in this news release, New Gold s latest annual management s discussion and analysis ( MD&A ), Annual Information Form and Technical Reports filed at www.sedar.com and on EDGAR at www.sec.gov. In addition to, and subject to, such assumptions discussed in more detail elsewhere, the forward-looking statements in this news release are also subject to the following assumptions: (1) there being no 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 and U.S. dollar, and to a lesser extent, the Mexican Peso, 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 mine and Blackwater project being consistent with New Gold s current expectations; (8) all required permits, licenses and authorizations being obtained from the relevant governments and other relevant stakeholders within the expected timelines and the absence of material negative comments during the applicable regulatory processes; and (9) in the case of production, cost and expenditure outlooks at the operating mines for 2018, commodity prices and exchange rates being consistent with those estimated for the purposes for 2018. 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 and, to a lesser extent, 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 and, to a lesser extent, 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, 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; 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; 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. 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 www.sedar.com and on EDGAR at www.sec.gov. Forward-looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. All of the forward-looking statements contained in this news release are qualified by these cautionary statements. New Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, events or otherwise, except in accordance with applicable securities laws. 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
2017 organizational priorities One year ago 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 3
2017 A transformative year Reinvigorated Team Corporate Leadership new CFO, VP Projects, VP HR Rainy River strengthened management team Corporate Re-organization +30% reduction in Head Office Renewed Board of Directors Streamlined Portfolio and Enhanced Financial Flexibility Executed on Rainy River Sold El Morro gold stream $65 million Announced sale of Peak Mines $58 million (closed April 2018) Rainy River commercial production achieved per 2017 budget ($515 million) and timeline (October 2017) Delivered Per Share Growth 2017 7% increase in EBITDA per share, 11% increase in cash flow per share 2018 targeting further per share increase in production, EBITDA and cash flow 4
Strong North American presence Footprint in Canada continues to grow RESERVES >90% located in Canada >13.6 Moz gold reserve in Canada 5th largest consolidated gold reserve base in Canada PRODUCTION SCALE ~390 Koz of 2018 gold production from Canadian assets Rainy River 3 rd largest producing gold mine in Canada BLACKWATER PROJECT CANADA GOLD PROJECT MINE LIFE OF 17 YEARS (1) NEW AFTON MINE CANADA GOLD/COPPER PRODUCER MINE LIFE OF 10 YEARS (2) RAINY RIVER MINE CANADA GOLD PRODUCER MINE LIFE OF 14 YEARS Overall production to grow 30% with Rainy River 2018 gold production guidance 310 to 350 Koz Achieved commercial production ahead of plan Achieved 2017 development capital estimate of $515 million CASH FLOW Overall cash flow to significantly increase with Rainy River in operations MESQUITE MINE USA GOLD PRODUCER MINE LIFE OF 5 YEARS 1. Based on 2013 Feasibility Study. 2. Five years of current B-zone plus five years of C-zone. CERRO SAN PEDRO MINE MEXICO GOLD/SILVER PRODUCER RESIDUAL LEACH 5
Track record of operational delivery Delivered on 2017 guidance 2017 Operational Highlights 431 Koz 104 Mlbs $646 $/oz $727 $/oz Gold Production Copper Production Gold Operating Expense All-in Sustaining Costs (1) 2017 Financial Highlights $604 $mm $283 $mm $342 $mm $0.61 $/sh Revenues (excludes Peak Mines) Operating Margin (2) (excludes Peak Mines) Operating Cash Flow Cash Flow Per Share 1. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 2. Refer to Endnote on operating margin under the heading Non-GAAP Measures. 6
Rainy River Delivered on key 2017 milestones Production start in mid-september Schedule 2 amendment expected in the fourth quarter of 2017 Commercial production targeted for November 2017 2017 development capital through November commercial production of $515 million COMPLETED (achieved September 14 th ) COMPLETED (received late third quarter) COMPLETED (achieved two weeks ahead of schedule) ACHIEVED 7
2018 consolidated guidance Production to grow 30% with Rainy River 525-595 Koz Gold Production 75-85 Mlbs Copper Production $555-$595 $/oz Gold Operating Expense $860-$900 $/oz All-in Sustaining Costs (1) Key Input Assumptions Copper $3.20/lb Silver $17.00/oz CDN/USD $1.25 MXN/USD $18.00 Copper assumption approximates the mid-point of the Company s collar pricing of $3.00 to $3.37 per pound 1. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 8
Decreasing sustaining capital profile Over coming years Consolidated sustaining capital expenditures to decrease significantly over the coming years Consolidated Sustaining Capital Expenditure Profile ($mm) $245 Rainy River sustaining capital expected to be higher over the first three years of operation and will revert to normal run rate levels of approximately $40 to $50 million per year thereafter 10-Year Normalized Average Run-Rate 9
Rainy River development driving growth 2015 to 2018 2015 Actual 2018 Guidance Production 436 Koz 525-595 Koz Cerro San Pedro Peak Mines Cerro San Pedro +28% Cerro San Pedro Mesquite New Afton Mesquite Rainy River New Afton 2015 2018E Over the first nine years (including 2018), Rainy River s annual gold production should average between 275,000 to 375,000 ounces at all-in sustaining costs (1) of approximately $875 per ounce 1. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 10
Growth in per share metrics Development of Gold Price ($/oz) Production per 1,000 shares Rainy River to drive per share production growth coupled with expanding margins $1,149 13% $1,300 0.86 13% 0.97 Expected to result in strong growth in EBITDA and cash flow per share Total Cash Costs (1) ($/oz) $1,300 $1,149 $706 $920 All-in Sustaining Costs (2) ($/oz) $1,149 $1,300 $420 $340 $880 $809 $443 $380 Gold Price TCC Gold Price TCC Gold Price AISC Gold Price AISC 1. Refer to Endnote on total cash costs under the heading Non-GAAP Measures. 2. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 3. 2018 estimates based on mid-point of guidance ranges. 11
Blackwater value creation opportunity Multiple options exist to unlock value Initiated work streams to de-risk and optimize project in order to further enhance project economics Key focus areas include: Average Analyst Consensus Value ($mm) $1,020 ~75% reduction in Blackwater analyst consensus value Reduce project strip ratio Ore sorting Use of updated flowsheet to reduce capital and operating costs $1,555 Average Canadian Gold Price (C$/oz) (3) $240 (1) (2) $1,635 4.8 Moz M&I Resource Not Started Resource Base (4) Environmental Assessment Status 8.2 Moz Reserve 1.4 Moz M&I Resource Expected Mid-2018 1. Based on average of 15 research analysts. 2. Based on average of 18 research analysts. 3. Average foreign exchange rates (US$/C$): 2011 - $0.99, 2017 - $1.30. 4. M&I resources exclusive of reserves. 12
2018 first quarter highlights Production 96,882 oz Gold 22.2 mlbs Copper Costs $774 per oz Gold operating expense (1) $1,219 per oz All-in sustaining costs (2) Financial $50 million Operating cash flows generated from continuing operations $0.09 Cash flow per share Balance Sheet $191 million Cash balance at Mar 31, 2018 Proceeds from sale of Peak Mines received subsequent to quarter-end 1. Gold operating expense from continuing operations. 2. Refer to Endnote on all-in sustaining costs under the heading Non-GAAP Measures. 13
Disciplined management of Capital resources and liquidity position $34 million Undrawn credit facility (1) $191 million Cash and cash equivalents (2) $225 million Liquidity Position Long-Term Balance Sheet Flexibility No Debt Due Until 2022 CREDIT FACILITY NOVEMBER 2012 NOTES MAY 2017 NOTES Face Value $400 million (1) $500 million $300 million Maturity Aug 14, 2020 Nov 15, 2022 May 15, 2025 Interest Rate 1.00%-3.25% 6.25% 6.375% Callable at 103.1% ~$60 million (3) additional liquidity from completion of sale of Peak Mines in April 2018 1. Undrawn credit facility as at March 31, 2017. $136 million of $400 million facility used for Letters of Credit and $230 million drawn at March 31, 2018. 2. Cash and cash equivalents as at March 31, 2018. 3. Includes net proceeds after working capital adjustment and release of Peak Mines closure Letters of Credit. 14
Establishing the leading intermediate gold company Focus on long-term shareholder value creation Portfolio of Assets in Top-Rated Jurisdictions Established Operational Track Record Enhancing Financial Flexibility Peer-Leading Growth Pipeline 15