You are on page 1of 112

Part 1 –

Corporate Overview

Delivering
on Growth
New Gold – Analyst Day
January 25, 2010

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


Schedule of Presentations

Corporate Overview & Strategy – Randall Oliphant, Executive 7:30 – 8:45


Chairman and Robert Gallagher, CEO

15 Minute Break

Overview of Financial Position – Brian Penny, CFO 9:00 – 9:15

Mesquite Mine Overview – Jim Currie, COO 9:15 – 9:45

Cerro San Pedro Overview – Jim Currie, COO 9:45 – 10:15

Peak Mines Overview – Jim Currie, COO 10:15 – 10:45

15 Minute Break

New Afton Overview – Jim Currie, COO 11:00 – 11:30

Exploration Update – Mark Petersen, VP Exploration 11:30 – 11:45

Closing Remarks – Randall Oliphant, Executive Chairman 11:45 – 12:00

Group Lunch

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


Cautionary Statement

All monetary amounts in U.S. dollars unless otherwise stated


CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information contained in this presentation, including any information relating to New Gold‟s future financial or operating performance may be deemed “forward looking”. All
statements in this presentation, other than statements of historical fact, that address events or developments that New Gold expects to occur, are “forward-looking statements”. Forward-
looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “does not expect”, “plans”, “anticipates”, “does not
anticipate”, “believes”, “intends”, “estimates”, “projects”, “potential”, ”scheduled”, “forecast”, “budget” and similar expressions, or that events or conditions “will”, “would”, “may”, “could”,
“should” or “might” occur. All such forward looking statements are 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. Forward-looking statements are necessarily based on estimates and
assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause New Gold‟s actual results, level of activity, performance or
achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, without limitation: significant capital requirements;
fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States, Australia, Brazil, Mexico and Chile; price volatility in the spot
and forward markets for commodities; impact of any hedging activities, including margin limits and margin calls; discrepancies between actual and estimated production, between actual
and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in national and local government legislation in Canada, the United States,
Australia, Brazil, Mexico and Chile or any other country in which New Gold currently or may in the future carry on business; taxation; controls, regulations and political or economic
developments in the countries in which New Gold does or may carry on business; the speculative nature of mineral exploration and development, including the risks of obtaining and
maintaining the validity and enforceability of the necessary licenses and permits and complying with the permitting requirements of each jurisdiction that New Gold operates, including, but
not limited to, Mexico, where New Gold is involved with ongoing challenges relating to its environmental impact statement for Cerro San Pedro Mine; the lack of certainty with respect to
the Mexican and other foreign legal systems, which may not be immune from the influence of political pressure, corruption or other factors that are inconsistent with the rule of law; the
uncertainties inherent to current and future legal challenges the company is or may become a party to, including the third party claim related to the El Morro transaction with respect to
New Gold's exercise of its right of first refusal on the El Morro copper-gold project in Chile and its partnership with Goldcorp Inc., which transaction and third party claim were announced
by New Gold in January 2010; diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or
reclamation activities; changes in project parameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to
mineral properties. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial
accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance, to cover these
risks) as well as “Risks Factors” included in New Gold‟s Annual Information Form filed on March 31, 2009 and Management Information Circular filed on April 15, 2009, both available at
www.sedar.com. Forward-looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such
statements. All of the forward-looking statements contained in this presentation are qualified by these cautionary statements. New Gold expressly disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.

www.newgold.com TSX/NYSE AMEX US: NGD 3


Cautionary Statement (cont‟d)

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”, “Indicated Mineral Resource” and “Inferred Mineral
Resource” used in this presentation are Canadian mining terms as defined in accordance with NI 43-101 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 December 11, 2005. While the terms “Mineral Resource”, “Measured Mineral
Resource”, “Indicated Mineral Resource” and “Inferred Mineral Resource” are recognized and required by Canadian regulations, they are not defined terms under standards of the United
States Securities and Exchange Commission. 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 calculation is made. As such, certain information contained in this presentation concerning
descriptions of mineralization and resources under Canadian standards is not comparable to similar information made public by United States companies subject to the reporting and
disclosure requirements of the United States Securities and Exchange Commission. An “Inferred Mineral Resource” has a great amount of uncertainty as to its existence and as to its
economic and legal feasibility. It cannot be assumed that all or any part of an “Inferred Mineral Resource” will ever be upgraded to a higher category. Under Canadian rules, estimates of
Inferred Mineral Resources may not form the basis of feasibility or other economic 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 differ in certain respects from the standards of the United States Securities
and Exchange Commission.

TOTAL CASH COST


“Total cash cost” per ounce figures are calculated in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold
products and included leading North American gold producers. The Gold Institute ceased operations in 2002, but the standard is widely accepted as the standard of reporting cash cost of
production in North America. 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 cost on a sales basis. Total cash cost includes mine site operating costs such as mining, processing, administration, royalties and production taxes, but is
exclusive of amortization, reclamation, capital and exploration costs. Total cash cost is reduced by any by-product revenue and is then divided by ounces sold to arrive at the total by-
product cash cost of sales. The measure, along with sales, is considered to be a key indicator of a company‟s ability to generate operating earnings and cash flow from its mining
operations. This data is furnished to provide additional information and is a non-GAAP measure. Total cash cost presented do not have a standardized meaning prescribed by GAAP and
may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation as a substitute for measures of performance prepared in
accordance with GAAP and is not necessarily indicative of operating costs presented under GAAP. A reconciliation will be provided in the MD&A accompanying the audited annual
financial statements.

www.newgold.com TSX/NYSE AMEX US: NGD 4


Executing on our Strategy

Disciplined Growth
• Completed 3-way business
combination June 2008
• Completed combination with
Western Goldfields June 2009
• Developing two solid organic
growth assets
• Pursuing accretive external growth
opportunities

Enhancing Value – El Morro


• $50 million upfront payment Operational Execution
• 100% development capital funded • 41% increase in production Q4/09
by Goldcorp versus Q4/08
• Significantly reduced interest rate • 17% decrease in cash cost
• Construction delay penalty Q4/09 versus Q4/08
• Strong strategic partner - Goldcorp • 29% increase in production in 2009
Additional Initiatives versus 2008
• Amapari strategic review • 18% decrease in cash cost in 2009
• New Afton development on versus 2008
schedule for production in 2012

Maintaining a Strong Financial


Position
• $272 million(1) in cash at Dec. 31/09
• Strongest cash flow for 2009
realized in Q4/09
• Additional proceeds of C$50 million
on sale of Asset Backed Notes in
January 2010
www.newgold.com TSX/NYSE AMEX US: NGD 5
1 Includes $9 million in Restricted Cash.
Management & Board of Directors

EXECUTIVE MANAGEMENT TEAM

Randall Oliphant, Executive Chairman

Robert Gallagher, President and Chief Executive Officer

Brian Penny, Executive VP and Chief Financial Officer

James Currie, Executive VP and Chief Operating Officer

BOARD OF DIRECTORS
James Estey, Director

Robert Gallagher, CEO & Director

Vahan Kololian, Director

Martyn Konig, Director

Pierre Lassonde, Director

Craig Nelsen, Director

Randall Oliphant, Executive Chairman

Ian Telfer, Director

Raymond Threlkeld, Director

www.newgold.com TSX/NYSE AMEX US: NGD 6


Capitalization and Liquidity

Basic Shares Outstanding (millions) 389

FDITM Shares Outstanding (millions) 405

TSX Share Price – January 22, 2010 $4.46

Market Capitalization (C$ millions) $1,730

Cash (US$ millions)1 $272

Long-term Investments (Asset Backed Notes US$ millions)2 $46

Debt (US$ millions)3 $238

Insider Ownership (million shares) 16

• Cash and Long-term Investments not reflective of January 2010 sale of C$83 million in face value Asset
Backed Notes for Proceeds of C$50 million
1 Cash position as of December 31, 2009 including $9 million of restricted cash.
2 Represents approximation of fair value of Asset Backed Notes investment at December 31, 2009. Face value of Asset Backed Notes investment was C$104
million at December 31, 2009.
3 Debt position as of December 31, 2009.

www.newgold.com TSX/NYSE AMEX US: NGD 7


Enhancing Value – El Morro Transaction

El Morro Shareholder Agreement Revisions


• On January 7, 2010 New Gold announced the exercise of
its right of first refusal (“ROFR”) to acquire 70% of the El Original Revised
Morro project and formed a new partnership with Goldcorp Agreement Agreement
Inc.
Upfront -- $50 million
• ROFR came into effect on October 12, 2009 when payment
Barrick Gold Corporation announced its offer to
purchase 70% of El Morro from Xstrata for $465 % of New Gold 70% 100%
capital carried
million
Interest charge Xstrata cost of US 7-year
Key Benefits to New Gold
on carried capital + 100 Treasury Rate +
• Maintain 30% interest in a large asset coveted by the funding(1) basis points 187 basis points
largest gold companies (~12.1%) (~5.2%)

• Well-financed strategic partner in Goldcorp with track Construction -- 60 days from


record of successful mine development Guarantee receipt of
permits (subject
• No additional cash outlay required from New Gold to attain to financial
its share of production and cash flow penalty)
• $50 million upfront payment plus full capital carry
significantly enhances financial flexibility
• Low interest rate leads to faster payback and increased
cash flow
• Construction guarantee and related penalty provide
additional assurance of timely development

NOTE: On January 13, 2010, Barrick filed a Statement of Claim related to the El Morro Transaction and New Gold’s exercise of the Right of First
Refusal. New Gold believes the claim is without merit and intends to respond to this action using all available legal avenues.
1 Both the Xstrata weighted average cost of capital estimate and the US 7-year Treasury rate are sourced from Bloomberg as at January 7, 2010.

www.newgold.com TSX/NYSE AMEX US: NGD 8


El Morro Overview (30%)

Location Chile

Gold (m oz) 2.01


Reserves1,2
Copper (m lbs) 1,715
Gold (m oz) 2.66
Resources1,2
Copper (m lbs) 2,018
Mine type Open Pit
Estimated mine life 15 years
LOM Production/yr (Au oz/Cu lbs)3,4 95k/105m
LOM Cash Cost/oz co-product (Au/Cu)4 $390/$0.92

Future Upside

• Stated intention of Goldcorp to make development of El Morro a priority


• Certain development characteristics similar to those of Goldcorp‟s recently completed Penasquito mine
• Potential to convert and grow resource base
• Large land position with potential for additional gold and copper adjacent to current pit and at depth

1 Refer to Appendix for detailed disclosure on Reserve and Resource calculations.


2 Represents New Gold‟s 30% attributable share of Reserves and Resources
3 Represents New Gold‟s 30% attributable share of gold and copper production.
4 Refer to Cautionary Statement and note on Total cash cost. Life of mine co-product costs based on $850/oz gold and $2.00/lb copper.

www.newgold.com TSX/NYSE AMEX US: NGD 9


Q4 and 2009 Production and Total Cash Cost

Q4 GOLD PRODUCTION (000s OUNCES) Q4 TOTAL CASH COST PER OUNCE (1)

150 $600 567


112 473
100 79 $400
41%
50 $200
17%
0 $0

Q4'08 Q4'09 Q4'08 Q4'09

2009 GOLD PRODUCTION (000s OUNCES) 2009 TOTAL CASH COST PER OUNCE (1)

400 $600 566


302 462
300 233 $400
200 29%
100 $200
18%
0 $0

FY 2008 FY 2009 FY 2008 FY 2009

1 Refer to Cautionary Statement and note on Total cash cost.

www.newgold.com TSX/NYSE AMEX US: NGD 10


Q4 and 2009 Production Highlights

Q4 2009 vs. Q4 2008 2009 vs. 2008


GOLD PRODUCTION (000s OUNCES) GOLD PRODUCTION (000s OUNCES)
150 400
112 302
79 300 233
100
41% Q4'08 200 29% 2008
50 Q4'09 2009
100
0 0

SILVER PRODUCTION (000s OUNCES) SILVER PRODUCTION (000s OUNCES)


400 313 2,000
291 1,497
300 1,500
200 8% Q4'08 1,000 161% 2008
573
100 Q4'09 500 2009
0 0

COPPER PRODUCTION (MILLION POUNDS) COPPER PRODUCTION (MILLION POUNDS)


6.0 20.0 15.6
3.9 15.0
4.0
2.5 56% Q4'08 10.0 8.2 90% 2008
2.0 Q4'09 2009
5.0
0.0 0.0

www.newgold.com TSX/NYSE AMEX US: NGD 11


2009 Gold Reserve Update

Proven and Probable Gold Reserves(1) (Million ounces)


10.0

9.0

1.3 8.2
8.0

7.4

7.0
0.5

6.0

5.0
12/31/2008 Ounces Mined 2009 Ounces Added 2009 12/31/2009

• Updated gold prices at Mesquite, Cerro San Pedro and Peak Mines – $800 per ounce

• Improved mine designs at Mesquite and Cerro San Pedro


1 Refer to Appendix for detailed disclosure on Reserve and Resource calculations.

www.newgold.com TSX/NYSE AMEX US: NGD 12


Mine by Mine Gold Reserve Growth

Proven and Probable Gold Reserves(1) (Million ounces)


MESQUITE NEW GOLD
4.0 3.1 10.0
2.6
8.2
2.0 8.0 7.4
19%

6.0
0.0
YE 2008 YE 2009
4.0 10%
CERRO SAN PEDRO
2.0
2.0
1.3 1.4
0.0
1.0 YE 2008 YE 2009
11%

0.0
YE 2008 YE 2009 • New Afton gold reserves – 1.05 million ounces

PEAK MINES • Calculated at $800 per ounce


1.0 • El Morro gold reserves – 2.01 million ounces
0.6
0.5
0.5 • Calculated at $500 per ounce
12%

0.0
YE 2008 YE 2009
1 Refer to Appendix for detailed disclosure on Reserve and Resource calculations.

www.newgold.com TSX/NYSE AMEX US: NGD 13


Asset Overview

GLOBALLY DIVERSIFIED PORTFOLIO OF ASSETS(1)

• 10% increase in reserves from 2008 to 2009


New Afton
Canada
• 13.5 million ounce M&I gold resource
2P
000s oz Au
1,052 Mesquite
M&I 1,671 United States

• 8.2 million ounce gold reserve Inferred 438


2P
000s oz Au
3,137
M&I 4,865

• Diversified gold production base


Inferred 357

Cerro San Pedro


Mexico
000s oz Au
2P 1,408
M&I 2,252
Amapari
Inferred 4,377
Brazil
000s oz Au
M&I 1,240
Inferred 1,234
Peak Mines
Producing Mines Australia El Morro(2)
000s oz Au Chile
Development Projects 000s oz Au
2P 570
Undergoing Strategic Review 2P 2,013
M&I 850
M&I 2,659
Inferred 302
Inferred 110

1 Refer to Appendix for detailed disclosure on Reserve and Resource calculations. Measured and Indicated Resources inclusive of Reserves.
2 Represents New Gold‟s 30% attributable share of Reserves and Resources.

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


14
Executing with Upside – Mesquite

Location United States

Mine Type Open Pit

Reserves1 Gold (m oz) 3.1

Resources1,2 Gold (m oz) 4.9

Estimate Mine Life3 13 years

Gold Production ’10 Guidance oz4 145k-155k

Total Cash Cost/oz ’10 Guidance5 $540-$560

Proven Execution Current Enhancements Future Upside

• Completed positive feasibility • Continue to optimize leach • Potential to increase


study in 2006 solution to maximize recovery mining rate – add 5 to
while minimizing related costs 10koz of production per
• Mine resumed production on year
time and on budget in 2008 • Declining total cash cost over
the next two years • 1M oz sulfide resource below
• High end of 2009 production current pit – exploring
guidance processing alternatives

1 Refer to Appendix for detailed disclosure on Reserve and Resource calculations.


2 Resources are inclusive of Reserves.
3 11 years of production and 2 years of residual leaching.
4 Refer to Cautionary Statements.
5 Refer to Cautionary Statements and note on Total cash cost.

www.newgold.com TSX/NYSE AMEX US: NGD 15


Executing with Upside – Cerro San Pedro

Location Mexico

Mine Type Open Pit


Gold (m oz) 1.4
Reserves1
Silver (m oz) 52
Gold (m oz) 2.3
Resources1,2
Silver (m oz) 78
Estimated Mine Life ~ 9 years

Gold Production ‘10 Guidance oz3 95k-105k

Total Cash Cost/oz ‘10 Guidance4 $390-$410

Proven Execution Current Enhancement Future Upside

• Achieved full production in • Focus on obtaining • 0.9 Moz of Measured and


2008 permanent solution to Indicated sulphide
continued legal challenges resources and 3.4 Moz of
• Received award as safest Inferred resources
mine of its size in Mexico for • Use of contractor mining
2007 and 2008 provides additional flexibility • Additional evaluation of
to increase production rates potential economics of CSP
• Attained ISO: 14001 underground to be
environmental certification in completed during 2010
2008

1 Refer to Appendix for detailed disclosure on Reserve and Resource calculations.


2 Resources are inclusive of Reserves.
3 Refer to Cautionary Statements.
4 Refer to Cautionary Statements and note on Total cash cost.

www.newgold.com TSX/NYSE AMEX US: NGD 16


Executing with Upside – Peak Mines

Location Australia
Mine Type Underground
Gold (k oz) 570
Reserves1
Copper (m lbs) 67
Gold (k oz) 850
Resources1,2
Copper (m lbs) 127
Estimated Mine Life ~ 8 years
Gold Production ‘10 Guidance oz3 90k-100k
Total Cash Cost/oz ‘10 Guidance4 $360-$380

Proven Execution Current Enhancement Future Upside

• In operation since 1992 • Successfully transitioned to • Potential for additional


– history of success higher gold grade future targets around
Perseverance Zone D ore Peak‟s currently
• Proven ability to body existing underground
replace reserves – ore body and in the
produced two millionth • Continued benefit from surrounding region
ounce in 2008 after increased copper production
starting with one million
• Conventional flotation
ounce in reserves
replacing column flotation

1 Refer to Appendix for detailed disclosure on Reserve and Resource calculations.


2 Resources are inclusive of Reserves.
3 Refer to Cautionary Statements.
4 Refer to Cautionary Statements and note on Total cash cost.

www.newgold.com TSX/NYSE AMEX US: NGD 17


Executing with Upside – New Afton

Location Canada

Gold (m oz) 1.05


Reserves1
Copper (m lbs) 993
Gold (m oz) 1.67
Resources1,2
Copper (m lbs) 1,535
Mine type Underground
Estimated mine life 12 years
LOM Production/yr (Au oz/Cu lbs)3 85k/75m
LOM Cash Cost/oz co-product (Au/Cu)4 $367/$0.88

Proven Execution Current Enhancement Future Upside

• Delivered positive feasibility • Planned underground • Potential for additional blocks


study development advance of over containing similar
3,000 meters in 2010 mineralization below those
• Long lead time equipment currently included in mine plan
ordered and in place • Certain permanent mine services
infrastructure to be put in place in
• Surface infrastructure partially 2010 (electrical, water, air piping)
in place with mill building
exterior completed

1 Refer to Appendix for detailed disclosure on Reserve and Resource calculations.


2 Resources are inclusive of Reserves.
3 Refer to Cautionary Statements.
4 Refer to Cautionary Statements and note on Total cash cost. Life of mine co-product costs based on $850/oz gold and $2.00/lb copper.

www.newgold.com TSX/NYSE AMEX US: NGD 18


Gold Production Outlook

EXCEPTIONAL GOLD PRODUCTION GROWTH PROFILE


Broker Consensus Production Profile 1,2,3
(2009E-2013E)
600 $600
61% Increase in
Production

Total Cash Costs (US$/oz) 4


500 $500
Au Production (koz)

400 $400

300 $300

200 $200

63% Decrease in
Total Cash Costs
100 $100

0 $0
5
2009A 2010E 2011E 2012E 2013E
Gold Production Total Cash Costs
1 Source: Available consensus research estimates.
2 By-product cash cost based on declining consensus silver and copper price with 2013 prices of $15.00/oz and $2.25/lb for silver and copper, respectively.
3 2009 production shown for the period of ownership of Western Goldfields.
4 Refer to Cautionary Statements regarding Forward Looking Statements and Total Cash Cost.
5 2013 production based on 2 equity research analyst estimates, none of which include production from El Morro.

www.newgold.com TSX/NYSE AMEX US: NGD 19


Operating Margin

EXCEPTIONAL CASH FLOW GENERATION AND GROWTH

Operating Margin 1,2,3


$400

$350
~ 158% Increase in
Operating Margin
$300
Operating Margin (US$mm)

$250

$200

$150

$100

$50

$0
4
2009E 2010E 2011E 2012E 2013E
1 Source: Available consensus research estimates.
2 Based on declining consensus gold price from $959/oz in 2009 to $900/oz in 2013.
3 Operating Margin is a non-GAAP measure calculated as production multiplied by the assumed gold price less cash costs net of by-product credits.
4 2013 production based on 2 equity research analyst estimates, none of which include production from El Morro.
Refer to Cautionary Statements regarding Forward Looking Statements and Total Cash Cost.

www.newgold.com TSX/NYSE AMEX US: NGD 20


Copper Leverage

IMPACT OF COPPER ON OPERATING MARGIN AND CASH COST

Assumes average of 90 million lbs of copper per year from 2013-20171,2,3


Incremental Increase in Operating Margin (US$ mm)

200 $300

Total Cash Costs (US$/oz)


150 $150

100 $0

50 ($150)

0 ($300)
$2.25 $2.75 $3.25 $3.75 $4.25
Operating Margin Total Cash Costs
1 Based on declining consensus gold price from $959/oz in 2009 to $900/oz in 2013 and a declining consensus copper price from $2.29/lb in 2009 to $2.25/lb in 2013
2 Assumes an average of 75 million pounds of copper sales per year from New Afton and 15 million pounds of copper sales per year from Peak Mines. It does not include any copper
sales from El Morro.
3 Refer to note regarding Total Cash Costs in Cautionary Statements.

www.newgold.com TSX/NYSE AMEX US: NGD 21


Peer Comparison

Change in 2009E-2013E Broker Consensus Cash Cost 1,2

14%

(2%)
(6%) (7%) (8%)3 (8%) (9%)

(30%)

(63%)

1. Note: Gammon Gold calculated based on gold equivalent cash costs


2. Refer to Cautionary Statements regarding Forward Looking Statements and Total Cash Cost
3. Based on 2009-2011 data due to unavailability of broker estimates

Price/Consensus NAV Price/2010E CF


2.0x
1.7x 1.7x 25.6x
1.6x 24.1x
1.5x
1.3x
1.2x 1.1x 15.9x
1.0x 15.0x 14.4x
12.7x 11.7x
9.0x
7.6x

Note: As at January 22, 2010 Note: As at January 22, 2010

www.newgold.com TSX/NYSE AMEX US: NGD 22


Performance Since Merger

94% share price appreciation since announcement of merger with Western Goldfields in March 2009

NAV multiple increased from 0.7x to 1.0x over the same time period

Increased exposure with 14 analysts now covering NGD

Trading liquidity has tripled

www.newgold.com TSX/NYSE AMEX US: NGD 23


Value Generation

FUTURE UPSIDE

El Morro unlocking incremental value


- Transaction announced on January 7, 2010 provides New Gold with $50 million and significant
economic benefits for its 30% share of the asset
- Maintain flexibility to pursue future swap for gold asset and/or a sale for cash

Amapari strategic review

Have sold a total of C$139 million in Face Value Asset Backed Notes for proceeds of C$81 million (58% of
Face Value realized) – C$21 million Face Value remaining largely illiquid

New Afton development on schedule, expect to commence production second half of 2012

www.newgold.com TSX/NYSE AMEX US: NGD 24


The New Gold Advantage

 Successfully exceeded 2009 guidance of 270,000 to 300,00 oz of gold production at cash cost of
$470 to $490 per oz, net of by-product sales for the period of ownership

 Production growth over the next four years with current portfolio of assets

 Decreasing cash cost over the next four years

 Strong balance sheet – significantly increased cash position during 2009

 Delivering on value enhancements from current portfolio of assets

 Enhanced market presence with increased analyst coverage and trading liquidity

 Proven Board of Directors and management team with track record of delivering on strategic
objectives

www.newgold.com TSX/NYSE AMEX US: NGD 25


Part 2 – Financial
Position, Operations
Overview and
Exploration

Delivering
on Growth
New Gold – Analyst Day
January 25, 2010

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


Schedule of Presentations

Corporate Overview & Strategy – Randall Oliphant, Executive 7:30 – 8:45


Chairman and Robert Gallagher, CEO

15 Minute Break

Overview of Financial Position – Brian Penny, CFO 9:00 – 9:15

Mesquite Mine Overview – Jim Currie, COO 9:15 – 9:45

Cerro San Pedro Overview – Jim Currie, COO 9:45 – 10:15

Peak Mines Overview – Jim Currie, COO 10:15 – 10:45

15 Minute Break

New Afton Overview – Jim Currie, COO 11:00 – 11:30

Exploration Update – Mark Petersen, VP Exploration 11:30 – 11:45

Closing Remarks – Randall Oliphant, Executive Chairman 11:45 – 12:00

Group Lunch

www.newgold.com TSX/NYSE AMEX US: NGD 27


New Gold 2010 Analyst Day

Overview of Financial Position


Brian Penny – Chief Financial Officer
Balance Sheet Overview

US dollar millions

300
272

250 238

200
169

150

100

50 38
27
4
0
Cash & El Morro Funding Mesquite Debt Convertible Senior Notes Total
Restricted Cash Debenture

Debt

• December 31, 2008 Net Debt balance of $29 million


• December 31, 2009 Net Cash balance of $34 million
• Excludes $50 million cash pending successful closing of El Morro transaction
• Excludes C$50 million in additional proceeds from sales of Asset Backed Notes
in January 2010

www.newgold.com TSX/NYSE AMEX US: NGD 29


Change in Cash and Restricted Cash – 2008 to 2009
US dollar millions

400
43
350
103
300 (41)
272
(26)
250 (22)
29
200 186

150

100

50

0
New Gold Merger - Financing - ABCP Debt Purchase of Other (1) New Gold
12/31/08 Western September Settlement & Repayments Senior 12/31/09
Goldfields 2009 Sale 2009 Secured Notes
06/01/08

(1) Includes all capital expenditures during the year 2009 and results of operations.

www.newgold.com TSX/NYSE AMEX US: NGD 30


El Morro Transaction Adds Financial Flexibility

US dollar millions

300

225
200

100
50

0
Up-front
payment
-100
100% vs.
70% Carry

-200

(225)

-300
1 2

• Over $275 million in added financial flexibility for New Gold

www.newgold.com TSX/NYSE AMEX US: NGD 31


Overview of Debt

• Senior Secured Notes

• C$187 million face value with 10% annual interest rate

• Payable June 2017

• Notes issued by New Gold in 2007 as part of New Afton financing

• Convertible Debentures

• C$55 million face value convertibles with 5% annual interest rate

• Conversion price of C$9.35 per share

• Conversion date – June 28, 2014

• Mesquite Project Term Loan

• $27 million remaining on Term Loan with LIBOR + 4.25% annual interest rate

• Scheduled repayments required through June 30, 2012

• New Gold expects to pay remaining balance in first half of 2010

• New Gold required to maintain gold hedges until loan is repaid in full

www.newgold.com TSX/NYSE AMEX US: NGD 32


Mesquite Loan – Hedge Book

• Predecessor company Western Goldfields Inc. put Term Loan in place to fund
development of the Mesquite mine

• Loan syndicate required the company to hedge a portion of production

• Total of 429,000 ounces at $801 per ounce through 2014

• 5,500 ounces per month

• At December 31, 2009, 330,000 ounces remained hedged at $801 per ounce

• Mark-to-market liability of approximately $110 million

• Full loan repayment would provide New Gold with flexibility to monetize hedge

www.newgold.com TSX/NYSE AMEX US: NGD 33


Asset Backed Notes

• In early 2009 the market for Asset Backed Notes was illiquid

• In the second half of 2009, market began to steadily develop

• At September 30, 2009, New Gold held a total of C$160.0 million in face value Asset
Backed Notes

• September 30, 2009 balance sheet – Investments

• $149.3 million face value

• $88.3 million fair market value representing 59% of face value

• December 23, 2009 – sold C$56.3 million of face value notes for proceeds of C$31.2
million (55% of face value)

• January 2010 – sold C$83.0 million of face value notes for proceeds of C$49.9 million
(60% of face value)

• C$20.8 million of face value notes remaining

• All in classes that remain largely illiquid: B, C, 3 and 13

• Book value less than C$1.0 million

www.newgold.com TSX/NYSE AMEX US: NGD 34


New Gold 2010 Analyst Day

Mesquite Mine
Jim Currie – Chief Operating Officer
Mesquite Mine

www.newgold.com TSX/NYSE AMEX US: NGD 36


Mesquite – 2009 Year in Review

GOLD PRODUCTION (000s OUNCES) TOTAL CASH COST PER OUNCE (1)

200 $800
150 596
150 $600 508
108
38% 18%
100 $400
50 $200
0 $0

FY 2008 FY 2009 FY 2008 FY 2009

• During 2009 Mesquite produced and sold 150koz and 144koz of gold, respectively

• Total cash cost per ounce(1) for the year of $596 per ounce

• Record fourth quarter gold production and sales of 61koz and 56koz of gold, respectively

• Total cash cost per ounce(1) for the fourth quarter of $551 per ounce

1. Refer to note in Cautionary Statement regarding Total Cash Cost.

www.newgold.com TSX/NYSE AMEX US: NGD 37


Mesquite – 2009 Operational Highlights

• Record annual and quarterly production since mine re-start in early 2008

• Strip ratio down to 3.1:1 in 2009 from 5.1:1 in 2008

• Ore tons loaded to the pad increased to 13.1 million tonnes in 2009 from 8.1 million
tonnes in 2008

• Total tonnes mined increased to 54.4 million in 2009 from 49.4 million in 2008

• Contract miner utilized for four months to allow catch-up on stripping

• Current „material moved mining cap‟ of 54.4 million tonnes (60 million tons)
reached on December 23, 2009 – limit set by current permit

• North wall slope angle lowered to improve slope stability factor of safety

• Excavated 440,000 tons from north wall to minimize risk of failure

• Truck simulator purchased and all operators have received two phases of training

• Truck fleet completely outfitted with radial tires in 2009

• Should reduce on going replacement costs and extend tire life

www.newgold.com TSX/NYSE AMEX US: NGD 38


Mesquite Mine Team

ORGANIZATIONAL CHART

General Manager
Cory Atiyeh
Director of Mineral
Processing
Tony Casagranda

HR / Safety Operations Environmental Comm. Relations


Mine Manager Process Manager
Manager Controller Manager Manager
Chuck Geary Arnold DeHerrera
Chet Bate Frank Simms Jerald Hepworth Luis Plancarte

Current Site Personnel

Mining 114
Surface and Maintenance 50
Technical Services 15
Processing 51
Administration 11
Various Contractors 25
Total Site 266

www.newgold.com TSX/NYSE AMEX US: NGD 39


Mesquite – Reserves and Resources

GOLD RESERVES (MILLION OUNCES) TOTAL GOLD RESOURCES (MILLION OUNCES) *

3.5 3.1 6.0


3.0 4.9
2.6 5.0
4.1
2.5
4.0
2.0
3.0
1.5
19% 2.0 19%
1.0
0.5 1.0
0.0 0.0
YE 2008 YE 2009 YE 2008 YE 2009

* Refer to Appendix for detailed disclosure on Reserve and Resource calculations.


• Reserves calculated using $800 per ounce gold in 2009 versus $500 per ounce of gold in 2008.
• Resources calculated using $900 per ounce gold in 2009 versus $650 per ounce of gold in 2008.

www.newgold.com TSX/NYSE AMEX US: NGD 40


Mesquite - Reserve Bridge

Proven and Probable Gold Reserves(1) (Million ounces)

5.0

4.0

0.75 3.14
3.0
2.63

(0.24)
2.0

1.0

0.0
12/31/2008 Ounces Mined 2009 Ounces Added 2009 12/31/2009

1. Refer to Appendix for detailed disclosure on Reserve and Resource calculations.

www.newgold.com TSX/NYSE AMEX US: NGD 41


Mesquite – Reserves and Resources(1)

Grade Contained Metals

2008 2009 2008 2009 2008 2009

Tonnes Tonnes Gold Gold Gold Gold


Classification (Mt) (Mt) (g/t) (g/t) (Moz) (Moz)
Proven and Probable
Reserves 137.5 166.8 0.59 0.58 2.63 3.14
Total Measured and
Indicated Resources 228.9 296.9 0.56 0.51 4.10 4.87

Inferred Mineral Resources 8.9 22.8 0.60 0.49 0.09 0.36

1. Refer to Appendix for detailed disclosure on Reserve and Resource calculations.

www.newgold.com TSX/NYSE AMEX US: NGD 42


Mesquite – Health and Safety

Achieved to Date
 Fully implemented Loss Prevention Program
 Fully implemented Employee Health and Wellness
Program
 498 days without a Lost Time Injury through
12/31/09
 Total Reportable Injury Rate below national
average for both mining and general industry
 Occupational Safety & Health Administration
18002 compliance effort initiated
 All employees are emergency preparedness
trained

Future Deliverables
 Continued reduction of accident/injury rate
 Continued development/expansion of wellness
activities
 Occupational Safety & Health Administration
18002 compliant in 2010

www.newgold.com TSX/NYSE AMEX US: NGD 43


Mesquite – Health and Safety (cont‟d)

REPORTABLE ACCIDENT INCIDENCE RATE


4.5
4.05
4.0
3.65 3.59
3.5
3.13

3.0
3.1 3.1 3.1 3.1 3.1 3.1
2.5 2.64
1.95
2.0

1.5

1.0

0.5

0.0
Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09

Industry Mesquite Mine

Note: Incident Rate calculated per MSHA standards. IR= incidents per 200,000 hrs worked.

www.newgold.com TSX/NYSE AMEX US: NGD 44


Mesquite – Environment and Sustainability

Achieved to Date
 Compliance with local regulations
• California has five levels of government: Federal, State, Regional, County, Local
• Imperial County is lead agency on majority of permits
 Routine air monitoring conducted at four stations, operation is well below regulatory
limits
 36 environmental permits or certificates and reporting mandates
• 1,602 permit stipulations

Future Deliverables
 Energy & climate change – evaluating energy consumption, identified areas for
targeted improvements and began evaluation of greenhouse gas emissions
 Air - evaluating dust suppression technologies in addition to routine roadway
treatments due to arid climate
• Evaluating offsite paving projects to acquire needed particular matter offsets –
long term benefits to the entire region.
 Reclamation – re-sloping all rock dumps as they become inactive

www.newgold.com TSX/NYSE AMEX US: NGD 45


Mesquite – Social Responsibility

COMMUNITY AFFAIRS
Achieved to Date
 Earned well-respected profile within the region
 Retained local public relations firm
• Ensure incidents, inspection information and general events are factually
communicated
 VIP tours given regularly to regional decision makers
 Presentations to community organizations
 Maintain open communication and transparency

www.newgold.com TSX/NYSE AMEX US: NGD 46


Mesquite – 2010 Guidance

GOLD PRODUCTION (000s OUNCES) TOTAL CASH COST PER OUNCE (1)

200 145 - 155 $800


150 596
150 $600 540 - 560
100 $400 8%
50 $200
0 $0

FY 2009 FY 2010 FY 2009 FY 2010

1. Refer to note in Cautionary Statement regarding Forward Looking Statements and Total Cash Cost.

www.newgold.com TSX/NYSE AMEX US: NGD 47


Mesquite – Overview of Operating Metrics(1)

Production 2009 Results 2010 Guidance

Gold (koz) 150 145 - 155

Total Cash Cost per ounce1 596 540 - 560

Strip Ratio 3.1:1 3.4:1

Gold Grade g/t 0.51 0.56

2010 Objectives:

• Staying on schedule in stripping Rainbow 4 to maximize access to ore


in Q4‟10

• Maximize equipment availability to achieve target for tonnes moved

• Ongoing focus on cost reductions

• Conclude investigation on processing alternatives for sulphides


underlying the pit

1. Refer to note in Cautionary Statement regarding Forward Looking Statements and Total Cash Cost.

www.newgold.com TSX/NYSE AMEX US: NGD 48


New Gold 2010 Analyst Day

Cerro San Pedro


Jim Currie – Chief Operating Officer
CSP

www.newgold.com TSX/NYSE AMEX US: NGD 50


CSP – 2009 Year in Review

GOLD PRODUCTION (000s OUNCES) SILVER PRODUCTION (MILLION OUNCES)

150 2.0
1.5
96 1.5
100 85 1.1
13% 1.0 36%
50
0.5
0 0.0
FY 2008 FY 2009 FY 2008 FY 2009

TOTAL CASH COST PER OUNCE (1)

• Average realized gold price of $978 per


$600
399 405 ounce for the year
$400
• Average realized silver price of $14.48
$200 per ounce for the year
$0

FY 2008 FY 2009

1. Refer to note in Cautionary Statement regarding Total Cash Cost.

www.newgold.com TSX/NYSE AMEX US: NGD 51


CSP – 2009 Year in Review (cont‟d)

• During 2009 CSP produced and sold 96koz and 93koz of gold, respectively

• Total cash cost per ounce(1) net of by-products for the year of $405 per ounce

• Realized by-product sales of silver of 1.5 Moz

• Realized silver price of $14.48 per ounce

• Fourth quarter gold production and sales of 26koz and 24koz of gold, respectively

• Total cash cost per ounce(1) net of by-products for the fourth quarter of $438 per ounce

• Realized by-product sales of silver of 0.3 Moz

• Realized silver price of $17.36 per ounce

1. Refer to note in Cautionary Statement regarding Total Cash Cost.

www.newgold.com TSX/NYSE AMEX US: NGD 52


CSP – 2009 Operational Highlights

• Reduced strip ratio from budgeted 2.1 to 1.4 with improved mine planning

• Mined record 11.9 million tonnes of ore and 16.8 million tonnes of waste

• Total tonnes moved increased to 28.7 million in 2009 from 23.0 million in 2008

• Gold recoveries increased to 55% in 2009 from 49% in 2008

• Met and exceeded guidance for gold and silver production, respectively despite two
temporary shutdowns during the year – H1N1 (May) and Environmental Permit
(November – December)

• Substantially improved dore quality, significantly reducing impurities and refinery


penalties

• Strategic cost savings initiatives included:

• Contracting new diesel supplier

• Designed shorter waste hauls

• Improved collection and use of rainfall water for processing and reducing consumption of
expensive ground water

www.newgold.com TSX/NYSE AMEX US: NGD 53


Cerro San Pedro Team

ORGANIZATIONAL CHART

General Director
Jorge Mendizábal
General Manager
Juan Guerrero

Safety & Environmental Finance & Human Mine Process Construction In-House
Processes of Coordinator Administration Resources Manager Manager Coordinator Legal
support Manager Manager Coordinator Counsel
Rogelio Muñoz J. Jorge Gerardo Joel Flores
Jesús Castro Juan Carlos Mario A. Gutierrez Garcia Luis Rodolfo
Chavez Rodríguez Rodriguez

Current Site Personnel


Mining 174
Surface and Maintenance 23
Technical Services 9
Processing 52
Administration 84
Contractors 47
Total Site 389
External Contractors 246
Total General 635
www.newgold.com TSX/NYSE AMEX US: NGD 54
CSP – Reserves and Resources

GOLD RESERVES (MILLION OUNCES) TOTAL GOLD RESOURCES (MILLION OUNCES)*

2 3
1.4 2.3
1.3
2 1.7
1 11% 33%
1

0 0
YE 2008 YE 2009 YE 2008 YE 2009

SILVER RESERVES (MILLION OUNCES) TOTAL SILVER RESOURCES (MILLION OUNCES)*

60 51.4 52.2 100


77.8
63.4
40 1%
50 23%
20

0 0
YE 2008 YE 2009 YE 2008 YE 2009

* Refer to Appendix for detailed disclosure on Reserve and Resource calculations.


• Reserves calculated using $800/ounce gold in 2009 versus $750 /ounce of gold in 2008 and $12/ounce silver versus $10/ounce silver.
• Resources calculated using $900/ounce gold in 2009 versus $1,000/ounce of gold in 2008 and $15/ounce silver versus $21/ounce silver.

www.newgold.com TSX/NYSE AMEX US: NGD 55


CSP – Reserve Bridge

Proven and Probable Gold Reserves(1) (Million ounces)


2.0

1.5 0.31 1.41


1.27

1.0 (0.17)

0.5

0.0
12/31/2008 Ounces Mined 2009 Ounces Added 2009 12/31/2009

1. Refer to Appendix for detailed disclosure on Reserve and Resource calculations.

www.newgold.com TSX/NYSE AMEX US: NGD 56


CSP – Reserves and Resources(1)

Grade Contained Metals

2008 2009 2008 2009 2008 2009 2009 2009 2008 2009 2008 2009 2009 2009

Tonnes Tonnes Gold Gold Silver Silver Zinc(2) Lead(2) Gold Gold Silver Silver Zinc(2) Lead(2)
Classification (Mt) (Mt) (g/t) (g/t) (g/t) (g/t) (%) (%) (Moz) (Moz) (Moz) (Moz) (Mlbs) (Mlbs)

P&P
Reserves 71.7 78.2 0.55 0.56 22.32 20.77 - - 1.27 1.41 51.4 52.2 - -

Total M&I
Resources

Oxides 96.5 92.1 0.54 0.46 20.40 17.38 - - 1.69 1.36 63.4 51.5 - -

Sulphides - 61.0 - 0.46 - 13.42 0.74 0.15 - 0.90 - 26.3 992 203

Inferred
Resources

Oxides 1.7 104.0 0.47 0.28 24.10 7.37 - - - 0.90 1.3 24.6 - -

Sulphides - 231.6 - 0.43 - 8.05 0.52 0.07 - 3.17 59.9 2,637 341
Manto
Sulphides - 4.5 - 1.98 - 114.5 6.17 1.61 - 0.29 16.5 608 159

1. Refer to Appendix for detailed disclosure on Reserve and Resource calculations.


2. There was no Zinc or Lead included in Measured & Indicated or Inferred Resources in 2008.

www.newgold.com TSX/NYSE AMEX US: NGD 57


CSP – Health and Safety

Achieved to Date
 Winners of two “cascos de plata” for best results
in safety in the mining industry in México – 2007
and 2008
 Zero Lost Time Accidents in 1,116 days,
equivalent to 3.6 million man-hours
 Decrease of total accidents from 15 in 2008 to 9
in 2009
 Policy of zero tolerances and focus on operative
discipline

Future Deliverables
 Continue to work on record of zero Lost Time
accidents
 Safe Industry Certification (safety team)

www.newgold.com TSX/NYSE AMEX US: NGD 58


CSP – Health and Safety (cont‟d)

REPORTABLE ACCIDENT INCIDENCE RATE


3.5

3.0 3.1
3.1 3.1 3.1 3.1

2.5 2.24
2.1

2.0

1.5
1.04
1.0
0.59
0.5
0.49

0.0
2008 Q1-09 Q2-09 Q3-09 Q4-09

Industry Cerro San Pedro

Note: Incident Rate calculated per MSHA standards. IR= incidents per 200,000 hrs worked.

www.newgold.com TSX/NYSE AMEX US: NGD 59


CSP – Environment and Sustainability

Achieved to Date
 Maintained legal compliance:
• 100% compliance with the State Government Technical Committee requirements and conditions
• 100% compliance with all SEMARNAT environmental permit requirements and conditions
• Presentation of a new Environmental Impact Statement for all CSP operational phases and closure
 ISO 14001 certification compliant
 Continuous air quality monitoring conducted at five stations - all operational emissions are below
maximum allowable limits
 Constructed new weather station
 Over 79,000 plants and trees growing in nursery and over five hectares re-forested to date

Future Deliverables
 Clean Industry certification and Technical Committee audit compliance
 Obtain a new environmental permit from SEMARNAT
 Official Certification of the Residue Handling Plan
 Reduce the consumption of ground water through the use of treated wastewater

www.newgold.com TSX/NYSE AMEX US: NGD 60


CSP – Social Responsibility

Achieved to Date
 Approximately $500,000 was invested in public works and projects for the
community, including restoration of Cerro de San Pedro church
 Providing free medical service to the neighboring communities
 Over 50% of the workforce is from the neighboring communities
 Sponsor of multiple educational and cultural events for the town of Cerro de San
Pedro and neighboring communities

 Promotes and facilitates employee participation in volunteer programs in the


neighboring communities
 Open and transparent communications with all stakeholders

www.newgold.com TSX/NYSE AMEX US: NGD 61


CSP – 2010 Guidance

GOLD PRODUCTION (000s OUNCES) SILVER PRODUCTION (MILLION OUNCES)

150 2.0
1.5 1.4 – 1.6
96 95 - 105 1.5
100
4% 1.0
50 0.5
0 0.0

FY 2009 FY 2010 FY 2009 FY 2010

TOTAL CASH COST PER OUNCE (1)


Key Assumptions:
$600 • 2010 Silver price of $15.00 per ounce
405 390 - 410 • 2010 exchange rate $13.00 Mexican
$400
Pesos per US dollar
$200 Sensitivities:
$0 • 10% change in silver price results in
FY 2009 FY 2010 +/-$25/oz change in total cash costs(1)
• Approximately 50% of Cerro San
Pedro‟s costs are in Mexican Pesos
1. Refer to note in Cautionary Statement regarding Forward Looking Statements and Total Cash Cost.

www.newgold.com TSX/NYSE AMEX US: NGD 62


CSP – Overview of Operating Metrics

Production 2009 Results 2010 Guidance

Gold (k oz) 96 95 - 105

Total Cash Cost per ounce1 $407 $390 - 410

Strip Ratio 1.41 1.21

Gold Grade g/t 0.45 0.48

2010 Objectives:
• Resolve ongoing legal issues and establish permanent long-term
solution
• Continue focus on reducing strip ratio, improving leach
recoveries, and optimizing mine plans
• Optimize reagent application to increase Au and Ag recovery and
lower unit costs
• Continue cost savings initiatives through strategic negotiations
with all suppliers and contractors

1. Refer to note in Cautionary Statement regarding Forward Looking Statements and Total Cash Cost.

www.newgold.com TSX/NYSE AMEX US: NGD 63


New Gold 2010 Analyst Day

Peak Gold Mines


Jim Currie – Chief Operating Officer
Peak Mines – 2009 Year in Review

GOLD PRODUCTION (000s OUNCES) COPPER PRODUCTION (MILLION POUNDS)

150 20.0
15.6
100 93 15.0
100
10.0 8.2
90%
50
7% 5.0
0 0.0
FY 2008 FY 2009 FY 2008 FY 2009

TOTAL CASH COST PER OUNCE (1)


• Average realized gold price of $994 per
ounce for the year
$600 477
$400 335 • Average realized copper price of $2.11
per pound for the year
$200
30%
$0

FY 2008 FY 2009

1. Refer to note in Cautionary Statement regarding Total Cash Cost.

www.newgold.com TSX/NYSE AMEX US: NGD 65


Peak Mines – 2009 Year in Review (cont‟d)

• During 2009 Peak produced and sold 93koz and 88koz of gold, respectively

• Total cash cost per ounce(1) for the year of $335 per ounce, net of by-product sales

• Realized by-product sales of copper of 13.9 Mlbs

• Realized copper price of $2.11 per pound

• Fourth quarter gold production and sales of 25koz and 26koz of gold, respectively

• Total cash cost per ounce(1) for the fourth quarter of $339 per ounce, net of by-product
sales

• Realized by-product sales of copper of 4.8 Mlbs

• Realized copper price of $2.54 per pound

www.newgold.com TSX/NYSE AMEX US: NGD 66


Peak Mines – 2009 Operational Highlights

• Highest ever mine production and mill throughput of 794,000 tonnes


• Highest ever copper production of 15.6 million pounds
• Two new ore sources developed and commissioned being Chesney and Perseverance
Zone D – high grade copper zones
• Commissioned a batch plant to produce high quality shotcrete and cemented rock fill
• Commissioned a new refrigeration plant underground
• Implemented a new copper marketing agreement with Trafigura
• Once again replaced ounces mined in 2009 in reserves

www.newgold.com TSX/NYSE AMEX US: NGD 67


Peak Mines Team

ORGANIZATIONAL CHART

General Manager
Peter Lloyd

Commercial Maintenance Geology


Mine Manager Mill Manager Manager HSE
Manager Manager Superintendent
Sean Pearce David Hall Tony Lord
Bruce Kennedy Carl Wilde Manfred
Wimberger

Current Site Personnel


Exploration
Mining 128
Superintendent
Maintenance 57 Ian MacKenzie
Geology / Exploration 15
Processing 43
Commercial 20
Health, Safety & Environment 14
Full Time equivalent Contractors 25
Total Site 302
www.newgold.com TSX/NYSE AMEX US: NGD 68
Peak Mines – Reserves and Resources

GOLD RESERVES (MILLION OUNCES) TOTAL GOLD RESOURCES (MILLION OUNCES)*

0.8 1.0 0.8 0.9


0.6
0.6 0.5
0.4 0.5
0.2
0.0 0.0
YE 2008 YE 2009 YE 2008 YE 2009

COPPER RESERVES (MILLION POUNDS) TOTAL COPPER RESOURCES (MILLION POUNDS)*

100 150 136 127


76
67
100
50
50

0 0
YE 2008 YE 2009 YE 2008 YE 2009

* Refer to Appendix for detailed disclosure on Reserve and Resource calculations.


• Reserves calculated using $800/ounce gold in 2009 versus $750 /ounce of gold in 2008 and $2.00/lb copper consistent with 2008.
• Resources calculated using $800/ounce gold in 2009 versus $750/ounce of gold in 2008 and $2.00/lb copper consistent with 2008.

www.newgold.com TSX/NYSE AMEX US: NGD 69


Peak Mines - Reserve Bridge

Proven and Probable Gold Reserves(1) (Million ounces)


1.0

0.16 0.57
0.51
0.5

(0.10)

0.0
12/31/2008 Ounces Mined 2009 Ounces Added 2009 12/31/2009

1. Refer to Appendix for detailed disclosure on Reserve and Resource calculations.

www.newgold.com TSX/NYSE AMEX US: NGD 70


Peak Mines – Reserves and Resources(1)

Grade Contained Metals

2008 2009 2008 2009 2008 2009 2008 2009 2008 2009

Tonnes Tonnes Gold Gold Copper Copper Gold Gold Copper Copper
Classification (Mt) (Mt) (g/t) (g/t) (%) (%) (Moz) (Moz) (Mlbs) (Mlbs)
Proven and
Probable
Reserves 3.6 3.8 4.4 4.7 0.96 0.80 0.51 0.57 76 67
Total
Measured and
Indicated
Resources 6.1 6.1 4.3 4.4 1.01 0.95 0.85 0.85 136 127
Inferred
Mineral
Resources 2.7 2.0 4.5 4.7 0.90 0.75 0.39 0.30 52 33

1. Refer to Appendix for detailed disclosure on Reserve and Resource calculations.

www.newgold.com TSX/NYSE AMEX US: NGD 71


Peak Mines – Health and Safety

Achieved to Date
 Increased hazard reporting by employees from 2008 to
2009
 Achieved 95% close out rate for corrective preventative
actions
 Continued to reduce Lost Time Injury Severity Rate year on
year
 Implemented Peak Gold Mines Good Health Program
 Completed implementation of InControl event reporting and
action tracking system

Future Deliverables
 Continue to work towards zero Lost Time injuries
 Continue to be a socially responsible employer
 Occupational Safety & Health Administration 18001
compliant or better
 Increase (double) Safe Act Observations performed in
operating areas

www.newgold.com TSX/NYSE AMEX US: NGD 72


Peak Mines – Health and Safety (cont‟d)

REPORTABLE ACCIDENT INCIDENCE RATE

3.5

3.0 3.1
3.1 3.1 3.1 3.1 3.1

2.5 2.4

2.0

1.5
1.2 1.1
1.0 1.0
1.0 1.1

0.5

0.0
Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09

Industry Peak Mines

Note: Incident Rate calculated per MSHA standards. IR= incidents per 200,000 hrs worked.

www.newgold.com TSX/NYSE AMEX US: NGD 73


Peak Mines – Environment and Sustainability

Achieved to Date
 Maintained legal compliance
• Received development consents for batch plant additions, cyanide system and
oxygen plant
• Completed Annual Environmental Management Return
 Routine air, noise and vibration monitoring conducted and operation remains below
regulatory limits
 Zero cyanide related fauna deaths
 Established compliance with Dangerous Goods Transport code for copper
concentrate
 Upgraded access and presentation of the Golden Walk (Historical Mining Areas)
adjacent to the Peak Offices

Future Deliverables
 Submit new Mine Operations Plan (MOP) and renew Environmental Protection
License
 Complete predicative modeling for blast vibration
 Commence progressive rehabilitation of historical sites (Queen Bee and Occidental)
 Conduct Life of Tails Dam study that includes annual filling plan and options for
extended life

www.newgold.com TSX/NYSE AMEX US: NGD 74


Peak Mines – Social Responsibility

COMMUNITY AFFAIRS

Achieved to Date
 Maintain reputation as socially responsible business within the region
 Support for local tour bus operator involving tours of Peak mine site
 Enterprise Facilitator employed, trained and contributing to business in town
 Sustainability Report completed and annual Community Consultation Meeting held
 Peak Gold Mine Open Day to be held October 17th
 Maintain open communication and transparency
 Urban Landcare group formed in town

www.newgold.com TSX/NYSE AMEX US: NGD 75


Peak Mines – 2010 Guidance

GOLD PRODUCTION (MILLION OUNCES) COPPER PRODUCTION (MILLION POUNDS)

150 18.0
93 90 - 100 17.0
100 15.0 – 17.0
16.0 15.6
50
15.0
0 14.0
FY 2009 FY 2010 FY 2009 FY 2010

TOTAL CASH COST PER OUNCE (1) Key 2010 Assumptions:


• Copper price $2.75 per pound
$600
• 2010 exchange rate $0.85 Australian dollars
333 360 - 380 per US dollar
$400
Sensitivities:
$200
• A 10% change in copper price results in +/-
$0 $45 per ounce change in total cash costs
FY 2009 FY 2010 • Approximately 85% of Peak‟s costs are in
Australian dollars
1. Refer to note in Cautionary Statement regarding Forward Looking Statements and Total Cash Cost.

www.newgold.com TSX/NYSE AMEX US: NGD 76


Peak Mines – Overview of Operating Metrics(1)

Production 2009 Results 2010 Guidance

Gold (k oz) 93 90 - 100

Total Cash Cost/oz1 333 360 - 380

Copper (Mlbs) 15.6 15.0 – 17.0

Gold Grade g/t 4.05 4.13

2010 Objectives:
• Perseverance Zone D provides higher grade feed to the mill
• Construction of a conventional flotation circuit in the mill to replace
column flotation
• Development of a 4.5m diameter ventilation raise from surface to
Perseverance Zone D
• Increase in near mine exploration to continue reserve replacement

1. Refer to note in Cautionary Statement regarding Forward Looking Statements and Total Cash Cost.

www.newgold.com TSX/NYSE AMEX US: NGD 77


New Gold 2010 Analyst Day

New Afton Project


Jim Currie – Chief Operating Officer
New Afton

www.newgold.com TSX/NYSE AMEX US: NGD 79


Overview of Block Caving

• Block caving will involve:


NEW AFTON
• Undercutting the ore body
allowing the ore to collapse and
fragment into underlying draw Conveyor
Portal
points 5677 mRL
Afton
• Ore extraction from draw points -168

by 3 m3 scoops, transfer to the


metres
-188 Block Existing
u/g crusher by 10 m3 scoops,
metres
Cave Afton Pit
then transferred to surface via
-507
conveyor system metres Possible
-587
• New Afton has three blocks -707
metres Afton Pit
• B1 & B2 bottom at approx. 600m
metres
-748 Extension
metres
below surface C-
• B3 bottom at approx. 730m Zone
below surface -1137
metres -1196
• New Afton ore is very amenable to metres

block caving -1350


Deep C
metres
• Capital intensive up-front but low
operating costs
• Lowest cost hard rock underground
mining method

www.newgold.com TSX/NYSE AMEX US: NGD 80


New Afton Team

ORGANIZATIONAL CHART

VP Operations
Canada
Ron Allum

HR Manager Technical Services


Mine Manager Process Manager Finance Manager
Manager
Kurt Keskimaki Craig Lockhart Ann Wallin Dale Found
David Nicholls

Current Site Personnel


Mining 61
Surface and Maintenance 39
Technical Services 11
Administration 23
Various Contractors 20
Total Site 154

www.newgold.com TSX/NYSE AMEX US: NGD 81


Mines Using Block Caving Techniques

Global Block Caving Mines

Pebble

Cassiar
Ekati

New Afton

Resolution Jeffrey
Bingham Canyon
San Manuel Henderson Oyu Tolgoi LEGEND
Questa Bell
Past Producers
Several Projects And
Mines In China Producers

Development Projects

Didipio
Santo Thomas II

Grasberg Ok Tedi

Argyle Wafi
King Shabani
Debswana Mines Palabora
Olympic Dam Northparkes E26
Kimberley Mines Cullihan And E48
Chuquicamata Mt Keith
Finsch
Salvador Koffiefontain Ridgeway Deeps
Andina And Cadia East
El Teniente Mines
Mt Lyall

www.newgold.com TSX/NYSE AMEX US: NGD 82


New Afton – 2009 Year in Review

2009 HIGHLIGHTS ADVANCE RATE (METERS)

• Steady improvement in underground advance rate 700


quarter by quarter

• Continued development of declines to the base of 600


the ore body – achieved breakthrough in Conveyor 2
decline

• Commissioned batch plant for onsite shotcrete and 500


concrete production

• Completed the mill building in early 2009 for storage 400


of mill equipment

• Zero lost time injuries in the underground for 2008 300


and 2009

• Increased from 2 crews/4 days per week to 4


200
crews/7 days per week

• Capital expenditure in 2009 will be in line with the


forecast of $60 million (excluding capitalized interest) 100

0
Q1-09 Q2-09 Q3-09 Q4-09

www.newgold.com TSX/NYSE AMEX US: NGD 83


New Afton – Feasibility Study Update

ASSUMPTIONS AND KEY METRICS

(USD millions) January 2010


unless otherwise noted
43-101 Update
Gold (US$ per ounce) 900 – 800
Copper (US$ per pound) 2.50 – 2.00
Foreign Exchange Rate (CDN/US) 0.90 – 0.85
Total Project Capital Cost 630
Sustaining Capital Cost 146
LOM ore tonnes (millions) 47
Average Au grade (g/t) 0.69
Average Cu grade (%) 0.95
Co-product Cash Cost ($/oz)/($/lb)(1) $367/$0.88
By-product Cash Cost net of Copper Credits($/oz) (1) ($770/oz)
By-product Cash Cost net of Gold Credits($/lb) (1) $0.34/lb

• Capital spent on New Afton through December 31, 2009 of $218 million with ~$410
million remaining

(1) Both Co-product and By-product cash costs calculated using long-term gold and copper prices of $850/oz and $2.00/lb, respectively.
(2) New Gold will file a new 43-101 Technical Report within 45 days.

www.newgold.com TSX/NYSE AMEX US: NGD 84


New Afton – Reserves and Resources

GOLD RESERVES (MILLION OUNCES) TOTAL GOLD RESOURCES* (MILLION OUNCES)

1.50 2.00 1.63 1.67


1.03 1.05 1.50
1.00
1.9% 1.00 2.5%
0.50 0.50
0.00 0.00
YE 2008 YE 2009 YE 2008 YE 2009

COPPER RESERVES (MILLION POUNDS) TOTAL COPPER RESOURCES* (MILLION POUNDS)

1,500 2,000
1,483 1,535
959 993 1,500
1,000
3.5% 1,000 3.5%
500
500
0 0
YE 2008 YE 2009 YE 2008 YE 2009

* Refer to Appendix for detailed disclosure on Reserve and Resource calculations.


• Reserves calculated using $800/ounce gold in 2009 versus $475/ounce gold in 2008 and $2.00/lb copper versus $1.45/lb in 2008.
• Resources calculated using $900/ounce gold in 2009 versus $450/ounce gold in 2008 and $2.00/lb copper versus $1.20/lb in 2008.

www.newgold.com TSX/NYSE AMEX US: NGD 85


New Afton – Reserves and Resources (Cont‟d)(1)

Grade Contained Metals

2008 2009 2008 2009 2008 2009 2008 2009 2008 2009
Tonnes Tonnes Copper Copper Gold Gold Copper Copper Gold Gold
Classification (Mt) (Mt) (%) (%) (g/t) (g/t) (Mlbs) (Mlbs) (Moz) (Moz)

Proven and
Probable Reserves 44.4 47.4 0.98 0.95 0.72 0.69 959 993 1.03 1.05

Total Measured and


Indicated Resources 65.7 65.0 1.02 1.07 0.77 0.80 1,483 1,535 1.63 1.67
Inferred Mineral
Resources 7.9 25.2 0.96 0.66 0.88 0.54 168 367 0.23 0.44

1. Refer to Appendix for detailed disclosure on Reserve and Resource calculations.

www.newgold.com TSX/NYSE AMEX US: NGD 86


New Afton – Health and Safety

Achieved to Date
 Functioning Joint Employee/Management Safety
Committee
 Reduced AIFR from 6.95 to 3.69 during 2009
 Mine Rescue Team established and earned top
award at Provincial Mine Rescue Competition
 Gap analysis completed on Health Safety &
Reclamation Code for Mines in British Columbia
 Draft Completed on Site Safety Manual

Future Deliverables
 Continue to work towards zero Injuries
 Compliance in all aspects of the Health Safety &
Reclamation Code for Mines in British Columbia
 Institute internal safety audit standards

www.newgold.com TSX/NYSE AMEX US: NGD 87


New Afton – Health and Safety (cont‟d)

REPORTABLE ACCIDENT INCIDENCE RATE

8.0

6.7 6.8
7.0 6.5

6.0

4.8
5.0

4.0
3.2

3.0

2.0

1.0

0.0
Q4-08 Q1-09 Q2-09 Q3-09 Q4-09

New Afton

Note: Incident Rate = incidents per 200,000 hrs worked.

www.newgold.com TSX/NYSE AMEX US: NGD 88


New Afton – Environment and Sustainability

Achieved to Date
 Compliance with local regulations
 No externally reportable environmental incidents during 2009
 Compliance with British Columbia regulations
 Installed bat and bird habitats
 Cleaned up historical PCB contamination
 Joined the BC Hydro Powersmart Initiative

Future Deliverables
 Adoption of the New Gold Health Safety & Environmental Standards. First step in
integrating an ISO 14001 Emergency Monitoring System into New Afton
 Achievement of permitting obligations on schedule
 Reduced reliance on external consultants by performing monitoring and reporting
duties in-house
 Compilation of a site-wide Aspects and Impacts register to direct future management
requirements

www.newgold.com TSX/NYSE AMEX US: NGD 89


New Afton – Social Responsibility

COMMUNITY AFFAIRS
• Worked successfully with the local bands following the requirements under the
Participation agreement
• Provided Educational Scholarships to three First Nations students from the two
local bands; also provided Educational Scholarships to children of employees who
were pursuing post secondary education
• Assisted the aggregate business at one of the bands develop a good working model
for business development and operation. This included a site tour to another
successfully operating aggregate pit, work with our Finance Manager to organize
books and record-keeping and work with our Materials Manager to develop sound
costing methods
• Held a well attended Family day for employee‟s
and contractors families in July. Included
underground and surface tours and equipment
demonstrations
• Met with various business groups in Kamloops to
build awareness and information; included
Mayors Office and Chamber of Commerce

www.newgold.com TSX/NYSE AMEX US: NGD 90


New Afton – 2010 Outlook

Development schedule:

• Budget of 3,483 meters of underground development in 2010

• Complete Conveyor Decline and Access Decline to the lowest levels of the mine
providing two means of access from all areas

• 805 meters of intake and exhaust raise boring and lining establishing the basic
ventilation flows for future production

• Installation of certain permanent Mine Services including electrical power cabling,


and compressed air, water and discharge piping.

Capital Expenditures:

• Expected 2010 spending of $50 million (excluding capitalized interest)

• $70 million (including capitalized interest)

• 65% of spending on continued underground development

www.newgold.com TSX/NYSE AMEX US: NGD 91


New Afton – 2010 and Beyond

PATH FORWARD: TOWARD PRODUCTION

2010 2011 2012

Underground Underground Completion /


BASE
Development Development/Surfa Production
ce Construction

- Continued - Re-commence - Mill construction


development of surface completion and start-
drifts to base of the construction up
ore body - Initiate Undercut of - Concentrate
the ore body mid Production expected
year in the second half of
- Fire first draw bell 2012
- Production ore to
stockpile

www.newgold.com TSX/NYSE AMEX US: NGD 92


New Gold 2010 Analyst Day

Exploration Update
Mark Petersen– Vice President Exploration
El Morro Overview

La Fortuna Deposit

Contained Metals
Reserves 100% Basis 30% Basis
Tonnes Copper Gold Copper Gold
Classification
000’s (%) (g/t) (Mlbs) (Moz)
Proven 208,473 0.66 0.53 909 1.06
Probable 241,761 0.50 0.41 806 0.95
Total P&P 450,234 0.58 0.46
www.newgold.com 1,715AMEX US: NGD
TSX/NYSE 2.01 94
El Morro Overview

El Morro Deposit

Discovery Hole: DDM-1


0.83 % Cu, 0.26 g/t Au
170 m

306 m @ 600 ppm Cu


> 50 ppb Au
+ + +

+
+ +
+
0 – 76 m Leached Cap 36 m @ 0.512g/t+ Au+
76 – 152 m Secondary +

152 – 500 m Primary


68 m @ 0.57 g/t Au

0 250
www.newgold.com
meters
TSX/NYSE AMEX US: NGD 95
Cerro San Pedro Sulphide 2009 Results

2009 Highlights

• Completed 1st pass drilling program targeting Au-Ag-Zn-Pb sulphide mineralization extending from bottom of
current open pit
 29 core holes totaling 16,829 meters
• New geologic model and resource estimate for Year-end 2009 Reserves & Resources
• Impact:
0.57 Moz Au, 14 Moz Ag, 1.0 Blbs Zn, 0.2 Blbs Pb added to M&I
3.50 Moz Au, 76 Moz Ag, 3.2 Blbs Zn, 0.5 Blbs Pb added to Inferred

Sulphide Resources Grade Contained Metal

Tonnes Gold Silver Zinc Lead GoldEq(1) Gold Silver Zinc Lead
Classification (Mt) (g/t) (g/t) (%) (%) (g/t) (Moz) (Moz) (Mlbs) (Mlbs)
Measured 18.7 0.53 17.10 0.80 0.19 1.54 0.32 10.3 332 79
Indicated 42.3 0.42 11.79 0.71 0.13 1.24 0.58 16.0 660 123
Total M&I 61.0 0.46 13.42 0.74 0.15 1.33 0.90 26.3 992 203
Inferred Resources
Porphyry Sulphides 231.6 0.43 8.05 0.52 0.07 0.99 3.17 59.9 2,637 341
Manto Sulphides 4.5 1.98 114.5 6.17 1.61 9.51 0.29 16.5 608 159
3.46 76.4 3,245 500
1) Refer to mineral resource notes for metal price assumptions used for GoldEq grade calculation

www.newgold.com TSX/NYSE AMEX US: NGD 96


Cerro San Pedro Sulphide Overview

Reserve Pit
Resource Pit

Manto Sulphides
@ > 2.5 g/t AuEq

Heap Leach
Oxides
@ > 0.1 g/t Au

Poryhyry
Sulphides
@ > 0.4 g/t AuEq

1,500 meters

www.newgold.com TSX/NYSE AMEX US: NGD 97


Cerro San Pedro Sulphide Overview (cont‟d)

E-W Section
Reserve Pit INAH
Boundary
Resource Pit

Heap Leach
Poryhyry Oxides
Sulphides @ > 0.1 g/t Au
@ > 0.4 g/t AuEq

www.newgold.com TSX/NYSE AMEX US: NGD 98


Cerro San Pedro Sulphide 2010 Plan

2010 Program

• Complete preliminary metallurgical testing on porphyry sulphide mineralization types in first


quarter

• Preliminary scoping study / economic assessment beginning late in first quarter

• 20,000 meter infill/delineation drilling program to upgrade and expand sulphide resource in
second half of 2010

• Updated mineral reserve and resource estimate at year-end

• Pre-feasibility decision in Q1 2011

www.newgold.com TSX/NYSE AMEX US: NGD 99


Peak Mines 2009 Results

2009 Highlights
Mine Extensions
• Converted 59koz gold & 9Mlbs copper to Ore Reserves
• Replaced 2009 production and added 12koz of gold to reserves
• Extension of New Occidental down plunge

Mine Corridor
• Jubilee: Intersected 8m @ 2.69 g/t Au, 5.26% Cu, 37.5 g/t Ag
• Great Cobar: New target defined below historic Great Cobar mine
 Best previous intersection 16m of 5.65% Cu, 0.79 g/t Au
• Fortitude SE: MIMDAS deep geophysical survey completed
 New drill targets identified along 4 km trend extending from Perseverance

Regional
• Positive results from 3 out of 4 drill targets tested - Follow-up planned for 2010
• Norma Vale: 5m @ 0.13 g/t Au, 0.20% Cu, 0.46%
• Continued generation of new exploration targets along Cobar regional trend

www.newgold.com TSX/NYSE AMEX US: NGD 100


Peak Mines Overview

Perseverance Peak New Occidental Chesney New Cobar Great Cobar


810 Koz Au 1,465 Koz Au 1,465 Koz Au 165 Koz Au 430 Koz Au 45 Koz Au
84 Mlb Cu 115 Mlb Cu 11 Mlb Cu 61 Mlb Cu 43 Mlb Cu Fort 172 Mlb Cu
Bourke

Fortitude
New
Chesney
Cobar Great
Deeps
Deeps Cobar

Comstock
Deeps
Zone
D

Peak

Perseverance New
Fortitude SE Chesney Cobar
New Great
Occidental Cobar

N
S 11 kilometers N
www.newgold.com TSX/NYSE AMEX US: NGD 101
Peak Mines Overview (cont‟d)

www.newgold.com TSX/NYSE AMEX US: NGD 102


Peak Mines Exploration

Exploration Targets

• 70km of prospective tenements on the


mineralised trend, including the Peak Mine
Corridor

• High resolution gravity and airborne magnetic


surveys used to detect alteration around Cobar-
style ore bodies

• 3D model created and calibrated against known


deposits

• Ongoing target identification and prospect drill


testing continues

• Cutting edge science – significant advantage


over competitors

www.newgold.com TSX/NYSE AMEX US: NGD 103


Peak Mines 2010 Plan

2010 Outlook

• Mine Extensions: Continued exploration and resource delineation at Perseverance D, Chesney,


New Cobar Deeps and New Occidental Deeps

• Mine Corridor: Ongoing drilling at Jubilee, Great Cobar, first-pass drilling at Fortitude Southeast,
Comstock Deeps and Fort Bourke North

• Regional: Follow-up at Norma Vale, Mafeesh, Rookery South, Rookery East, Rookery Fault,
Newey, Nymagee and other targets

www.newgold.com TSX/NYSE AMEX US: NGD 104


New Afton

C-Zone Resource

C-Zone

Looking SW Looking NE

www.newgold.com TSX/NYSE AMEX US: NGD 105


Greenfields Exploration

Liberty Bell, Alaska (100%)

• ~3,000 meter reconnaissance drill program completed in 2009


• Follow-up drilling planned for 2010

Rio Figueroa Joint Venture, Chile (Antofagasta option for 70%)

• New exploration drilling permit received December 2009


• 8,000+ meter drill program planned for 2010

www.newgold.com TSX/NYSE AMEX US: NGD 106


New Gold 2010 Analyst Day

Closing Remarks
Randall Oliphant – Executive Chairman
Delivering on Growth

Disciplined Growth
• Successfully combined four junior
gold companies over the last 18
months
• Management and Board with track
record of building companies and
creating shareholder value
• Focus on opportunities that will
create a better New Gold

Enhancing Value – El Morro Operational Execution


• Creative structure enhances • Multiple quarters of delivering on
economics and maintains flexibility guidance
• Continue to participate in World • Focus on continued production
Class asset growth and cash cost reduction
• Significantly enhanced financial • Share best practices across
flexibility operations
Additional Initiatives • Deliver New Afton on time and on
• Amapari strategic review budget

Maintaining a Strong Financial


Position
• New Gold has gone from Net Debt
to Net Cash position during 2009
• Development projects fully funded
• Asset Backed Notes from Long-
Term Investments to Cash
www.newgold.com TSX/NYSE AMEX US: NGD 108
New Gold 2010 Analyst Day

Appendix
Reserves and Resource Notes
Mineral reserves are contained within measured and indicated mineral resources. Measured and indicated mineral resources that are not mineral
reserves do not have demonstrated economic viability. Inferred mineral resources are not known with the same degree of certainty as measured and
indicated resources, do not have demonstrated economic viability, and are exclusive of mineral reserves.

1) Mineral Reserves for the company’s mining operations and development projects have been calculated based on the following metal prices and
lower cut-off criteria:
Mineral Property Gold (US$/oz) Silver (US$/oz) Copper (US$/lb) Lower Cut-off

Mesquite $800 - - 0.21g/t Au – Oxide reserves


0.41g/t Au – Sulphide reserves

Cerro San Pedro $800 $12.00 - US$2.58/t NSR

Peak Mines $800 $12.00 $2.00 A$118 – 152/t NSR

New Afton $800 $12.00 $2.00 US$19/t NSR

El Morro $500 - $1.25 0.30% CuEq


Mineral reserves have been estimated and reported in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum
and National Instrument 43-101, or the AusIMM JORC equivalent.

2) Mineral Resources for the company’s mining operations and development projects have been calculated based on the following metal prices and
lower cut-off criteria:
Mineral Property Gold Silver Copper Zinc Lead Lower Cut-off
(US$/oz) (US$/oz) (US$/lb) (US$/lb) (US$/lb)

Mesquite $900 - - - - 0.1 g/t Au – All resources

Cerro San Pedro $900 $15.00 - $1.00 $0.75 0.1g/t Au – Oxide resources
0.4g/t AuEq – Sulphide resources
2.5g/t AuEq – High grade manto resources
Peak Mines $800 $12.00 $2.00 $0.80 $0.60 A$95/t NSR

New Afton $900 $15.00 $2.00 0.4% CuEq – All resources

El Morro $500 - $1.25 0.30% CuEq – All resources

Amapari $900 - - - - 0.5-0.7g/t Au – O/P; 1.4g/t Au – U/G

Mineral resources have been estimated and reported in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum
and National Instrument 43-101, or the AusIMM JORC equivalent.

www.newgold.com TSX/NYSE AMEX US: NGD 110


Reserves and Resource Notes (Cont‟d)

3) Cerro San Pedro

Cerro San Pedro mineral resources include measured, indicated and a portion of inferred resources that are contained within a “Mineral Resource
Pit” based on metal prices of $900/oz gold, $15.00/oz silver, $1.00/lb zinc and $0.75/lb lead at lower cut-offs of 0.1 g/t Au for oxide mineralization and
0.4 g/t AuEq for sulphide mineralization. Inferred resources also include potentially economic mineralization extending outside the limits of the
“Mineral Resource Pit” which is delimited by lower cut-off grade shells of 0.1 g/t Au for oxide mineralization and 0.4 g/t AuEq for sulphide
mineralization.

4) El Morro

El Morro mineral reserve and resources tonnes and grade are reported on a 100% basis; contained metals are reported on a 30% basis to reflect New
Gold’s 30% ownership interest in the project.

El Morro mineral reserves and resources have been reported based on cut-off of 0.3% copper-equivalent (“EqCu”) where

EqCu(%) = Cu(%) + 0.592 x Au (g/t) and Cu(%) = percent copper, Au(g/t) = grams per tonne gold, and 0.592 represents a constant based
on metal prices of $1.25/lb copper and $500/oz gold and average metal recoveries for the deposit.

www.newgold.com TSX/NYSE AMEX US: NGD 111


Reserves and Resource Notes (Cont‟d)

4) Qualified Persons

The following table sets out the individuals who are the Qualified Persons as defined by Canadian National Instrument 43-101 in connection with
New Gold’s Mineral Reserve and Mineral Resource Statements as of December 31, 2009.

Mesquite
Reserves Mr. Hubert Schimann, P.Eng. and Corporate Mining Engineer for New Gold Inc.
Resources Mr. Richard J. Lambert, P.E. and currently Principal Mining Consultant for Scott Wilson Roscoe Postle Assoc.
Cerro San Pedro
Reserves Mr. Stuart Collins, P.E. and Principal Mining Consultant for Scott Wilson Roscoe Postle & Assoc.
Resources Mr. Rex Berthelsen, FAusIMM, CPGeo and Principal Geologist for New Gold Inc.
Peak Mines
Reserves Mr. Sean Pearce, AusIMM, Manager Mining for Peak Gold Mines Pty. Ltd.
Resources Mr. Rex Berthelsen, FAusIMM, CPGeo and Principal Geologist for New Gold Inc.
New Afton
Reserves Mr. Dennis Bergen, P.Eng. and Associate Principal Mining Engineer for Scott Wilson Roscoe Postle & Assoc.
Resources Mr. David Rennie, P. Eng. and Principal Geologist for Scott Wilson Roscoe Postle Assoc.
El Morro
Reserves Mr. Richard J. Lambert, P.E. and currently Principal Mining Consultant for Scott Wilson Roscoe Postle Assoc.
(formerly Principal Mining Engineer for Pincock, Allen & Holt Inc.)
Resources Mr. Barton G. Stone, P. Geo. and Chief Geologist for Pincock, Allen & Holt Inc.
Amapari
Resources Mr. Rex Berthelsen, FAusIMM, CPGeo and Principal Geologist for New Gold Inc.

www.newgold.com TSX/NYSE AMEX US: NGD 112

You might also like