New Gold : Presentation PDF 2.20 MB

New Gold Corporate Presentation

CIBC Western Institutional Investor Conference

January 20 - 22, 2021

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 is "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, among others, statements with respect to: the receipt of C$50 million cash payment from Artemis Gold Inc. ("Artemis") in August 2021 for the divestment of the Blackwater Project; New Gold's expectations relating to achieving the revised annual production guidance at the Rainy River Mine and the New Afton Mine; New Gold's expectations with respect to the operating expenses, cash costs, AISC and sustaining capital at the Rainy River Mine and the New Afton Mine for 2020; the timing and scope of the planned exploration drilling programs at the Rainy River Mine and Cherry Creek; the timing of completion and parameters for capital and construction projects at the Rainy River Mine and the New Afton Mine; New Gold's expectation relating to the start of mining at the Rainy River Mine; New Gold's expectations with respect to the key construction projects at the Rainy River Mine; New Gold's expectations with respect to the key capital projects at the New Afton Mine, including the B3 mine development, C-Zone development and TAT construction; the timing of receipt of permits at the New Afton Mine; the timing of delivery of the thickener at the New Afton Mine; the expected mill production, production costs, economics, and operating parameters of New Afton and Rainy River; planned activities, exploration potential, permitting timelines and plans for capital expenditures at New Afton and Rainy River for 2020 and 2021; the anticipated effect of the COVID-19 pandemic on New Gold's operations, supply chain continuity and financial status; New Gold being able to maintain its level of operations and supply chain continuity during the COVID-19 pandemic and New Gold's financial resources being sufficient to support operations during the COVID-19 pandemic; information and statements on slide 10 "Rainy River: Underground Mine Life Extension"; information and statements on slide 14 "Exploration Potential Near Mine and District", including the exploration potential of the sub-level cave ("SLC"), D-Zone and Cherry Creek at the New Afton Mine; information and statements on slide 15 "New Gold: A Profitable Path Forward"'; "the expected amount of FCF and after tax net present value ("NPV") resulting from New Afton and Rainy River based on the life of mine plans; Ontario Teachers' (as defined below) exercising its Conversion Option; and all estimations of the Mineral Reserves and Mineral Resources at Rainy River and New Afton, including the information on slides 22 to 28 "Mineral Reserves and Resources".

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 news release, New Gold's latest annual management's discussion and analysis ("MD&A"), its most recent annual information form and technical reports on the Rainy River Mine and New Afton Mine 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 other than as set out herein; (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 New Afton Mine and Rainy River Mine being consistent with New Gold's current expectations, particularly in the context of the outbreak of COVID-19; (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; (9) there being no new cases of COVID-19 in the Company's workforce at either the Rainy River or New Afton Mine and the assumption that no additional members of the workforce are expected to be required to self-isolate due to cross-border travel to the United States or any other country; (10) the responses of the relevant governments to the COVID-19 outbreak being sufficient to contain the impact of the COVID-19 outbreak; (11) there being no material disruption to the Company's supply chains and workforce that would interfere with the Company's anticipated course of action at the Rainy River Mine and the systematic ramp-up of operations; (12) the long-term economic effects of the COVID-19 outbreak not having a material adverse impact on the Company's operations or liquidity position; and (13) Artemis Gold Inc. being able to complete the remaining C$50 million cash payment due on August 24, 2021 for the acquisition of the Blackwater project.

2

Cautionary Statements

ALL AMOUNTS IN U.S. DOLLARS UNLESS OTHERWISE STATED

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

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; risks related to early production at the Rainy River Mine, including failure of equipment, machinery, the process circuit or other processes to perform as designed or intended; 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; there being cases of COVID-19 in the Company's workforce at either the Rainy River or New Afton Mine, or both; the Company's workforce at either the Rainy River Mine or the New Afton Mine, or both, being required to self-isolate due to cross-border travel to the United States or any other country; the responses of the relevant governments to the COVID-19 outbreak not being sufficient to contain the impact of the COVID-19 outbreak; disruptions to the Company's supply chain and workforce due to the COVID-19 outbreak; an economic recession or downturn as a result of the COVID-19 outbreak that materially adversely affects the Company's operations or liquidity position; there being further shutdowns at the Rainy River or New Afton Mines; the Company not being able to complete its construction projects at the Rainy River Mine or the New Afton Mines on the timing described herein or at all; the Company not being able to complete the exploration drilling program to be launched at the Rainy River Mine and Cherry Creek on the timing described herein or at all; Artemis Gold Inc. not being able to make the remaining C$50 million cash payment due on August 24, 2021. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental events and hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance to cover these risks) as well as "Risk Factors" included in New Gold's 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 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.

For further information on the Company's response to COVID-19, please refer to: https://www.newgold.com/covid-19/

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Committed to Responsible Mining

Environment

SocialGovernance

• 90% recycled water use across operations
• Conduct climate risk assessments on operations and corporate office on an annual basis
• Tailings management is overseen by an independent review board to assess management practices, systems and overall tailings systems at all operations
• Increased water management procedures at site
• Conduct greenhouse gas (GHG) audit on full operations on an annual basis to understand where we can decrease GHG emissions

• Operations focus on local procurement when possible to provide economic value to local communities
• Actively support Indigenous education programs for K-12 and post secondary opportunities for Indigenous communities
• Identify our Communities of Interest on an annual basis to ensure effective and meaningful engagement
• Frequent and transparent communication with Indigenous Leadership to share updates, upcoming changes or need for support

• Board Committee that oversees Technical Operations and Sustainability
• CEO accountable for Sustainability
• Director of Sustainability responsible for strategy development and working with sites
• Site GMs, Community & Enviro Managers responsible for site-based activities, regulators and priorities
• Community and Enviro teams implement plans

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Building a Canadian Focused Multi-Asset Company

Blackwater Gold Stream

8% Gold Stream

Owner: Artemis Gold (100%)

Open pit project near Prince George, BC

Rainy River Gold Mine

Open pit & underground mine

Located near Ft. Frances, ON

Rainy River Mine: Ontario, Canada

• Open pit and underground mine
• Strong FCF beginning in 2021 and over LoM
• Underground based on per zone profitability with potential for mine lifeextension beyond 2028
• Life of Mine FCF of ~$1.1B1
• Exploration drilling launched in Q4 to test potential on broader land package

New Afton Mine: B.C., Canada

New Afton Copper/Gold Mine

Underground block cave mine

Located near Kamloops, BC

Cerro San Pedro Gold/Silver Mine

Reclamation underway

• Low-costcopper/gold producer
• Integrated B3/C-Zone optimization; mine life to2030
• C-Zonedevelopmentunderway; self-funded approach
• Life of Mine FCF of ~$1.2B1,2; highly leveraged to copper price
• Cherry Creek drilling program launched in Q4, focusing on the 12-kilometre trend, located within 3km of mill

Blackwater (Artemis Gold): 8% Gold Stream

• 8% stream on first 280,000 gold oz. declining to 4% on remaining production and 6% equity position
• PFS released Aug/20: Total gold production of ~8moz with ~450koz delivered to New Gold via gold stream

1. Assuming $1,550/oz gold, $3.00/lb copper and $17.50/oz silver USD/CAD exchange rate of C$1.30 to US$1.00.
2. Excludes Ontario Teachers' Pension Plan's New Afton free cash flow interest (refer to Feb. 25, 2020 press release)

Average Annual Production of ~404 koz gold and 66 Mlbs copper (2021-2025)

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Capital Structure and Strong Liquidity Position

Disciplined approach to improving liquidity:

• C$150M equity financing (August 30,2019)
• $300M partnership with Ontario Teachers' Pension Plan (March 31, 2020)
• $400M senior notes offering at 7.50% funded redemption of 2022 notes (closed June 24, 2020 and July 10, 2020)
• C$190M cash proceeds from divestment of Blackwater Project (closed August 21, 2020); C$140M Aug. 2020 / C$50M Aug. 2021

Cash & Cash Eq.	Credit facility
available liquidity
~$185M
of ~$305M1

• ~$90M in Letters of Credit transferred to surety bonds (Q3 2020)1
• Credit facility extended to October 2023 with a capacity of $350M (closed October 9, 2020)
• $200M (partial) redemption of the 2025 notes (closed December 23, 2020)

New Gold Debt Structure

	Face Value($M)	Maturity	Interest Rate
Revolving Credit Facility	$3501	Oct. 2023	LIBOR + 2.75% - 4.25%
Senior Unsecured Notes	$100	May 2025	6.375%
Senior Unsecured Notes	$400	July 2027	7.50%

~$490M Short Term Liquidity

2021 Copper Put Option

Term	Quantity	Floor
April 2021 - September 2021	1,700 t/month	$3.10/lb

1. Approximately $45 million of $350 million facility is currently used for Letters of Credit related to mine closure costs.

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5 Year Financial and Operating Outlook (2021-2025)

Operational Improvements:

• Diligent focus on operational and cost optimization drives production growth and improved margins

• ~30% increase in production (2021 - 2025) to ~575k gold eq. oz. driven by the ramp-up of Rainy River and production from the New Afton C-Zone

• Major capital programs at Rainy River complete, New Afton C- Zone development based on a self-funded approach

• Consistent year-over-year reduction in consolidated AISC3 to ~$800 per gold eq. oz. by 2025

Financial Outlook:

• Restructured balance sheet with key transactions completed

• ~$1.5B1,2 in FCF3 generated over the next 5 years (2021-2025)

• Ample liquidity and FCF generation to redeem the 2025 and

	2027 Senior Notes at maturity
• Highly leveraged to the copper price; +/- $0.15/lb generates
	additional estimated FCF of +/- ~$40M1,2 (2021-2025)
1.	Based on the March 2020 NI 43-101 technical report filed on SEDAR and assuming (US$1,800/oz Au, US$3.25/lb
	Cu, US$20/oz Ag and a USD/CAD rate of 1.30).
2.	Free cash flow defined as operating cash flow, less capital expenditures, streaming and royalty costs, including the
	Ontario Teachers' Pension Plan free cash flow interest.	7
3.	Refer to the "Non-GAAP Performance Measures" section of this presentation

Rainy River: Operational Highlights

An open pit and underground operation located in

northern Ontario

Q4 Operational* Highlights: Another Strong Quarter

• Gold eq. production achieved higher end of guidance; operating expense, cash costs and AISC expected to be below guidance; sustaining capital expected to achieve lower end of guidance
• Mine and mill productivity operating at capacity with unit costs trending towards 2021 target levels and all key capital projects complete
• Another consecutive quarter of strong performance shifts focus to driving additional operational and cost efficiencies
• Intrepid Zone decline development advanced 590 m for the year; refinement of mining methodology in 2021
• Underground production remains on track for late 2022
• NE Trend exploration drilling launched in Q4
• • Financial results will be issued on February 19, 2021

	Production	Q4 2020	2020	2020
	REVISED GUIDANCE
	Gold Production (oz)	66,734		228,919	222,000 - 232,000
	Gold eq. Production (oz)1,2	68,241		233,201	225,000 - 235,000
	Operating Costs*	Q3 2020	9M 2020	2020
	REVISED GUIDANCE
	Cash costs per gold eq. oz. 2	833		924	920 - 980
	AISC per gold eq. oz.2	1,469		1,593	1,610 - 1,690
	H1 results include a 14-day voluntary COVID-19 suspension
	Capital & Exploration ($M)*	Q3 2020	9M 2020	2020
	REVISED GUIDANCE
	Sustaining Capital & sustaining	37.4		103.9	$145 - $160
	leases2
	Growth Capital2	0.1		0.3	$2 - $5
	Exploration	0.2		0.5	~$2

1. Gold eq. ounces for Rainy River in Q4 2020 includes 127,390 ounces of silver converted to a gold eq. based on a ratio of $1,500 per gold ounce and $17.75 per silver ounce.
2. Refer to the "Non-GAAP Performance Measures" section of this presentation.

Rainy River Life of Mine Highlights

NI 43-101 Technical Report - 2021 LOM

	LoM1	Sensitivity2
Total gold eq. production (k oz)	2,130	2,129
Avg. annual gold eq. production (k oz)	294	294
Cash costs per gold eq. oz. ($/oz)	$639	$656
AISC per gold eq. oz. ($/oz)	$907	$923
Sustaining capital ($M) 3	$467	$467
Growth capital ($M) 3	$52	$52
Cumulative total cash flow ($M)4	$1,099	$1,536
After-tax NPV 5%	$906	$1,275

1. Assuming $1,550 per gold oz, $17.50 per silver oz and a foreign exchange rate of 1.30 C$ to 1 US$
2. Assumes US$1,800/oz Au, US$20/oz Ag and a USD/CAD rate of 1.30
3. Sustaining and Growth Capital spend excludes working capital movements
4. LOM value includes a negative cash flow of $68 million post 2028 primarily for closure activities

Totals may not compute exactly due to rounding.

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Rainy River Mine - KPI Dashboard

Tonnes mined per day	Tonnes milled per
(ore and waste)	calendar day

2018	2019	Q4 2020	2020	2018	2019	Q4 2020	2020
			Target				Target

Q4 Operational Highlights

• Rapid COVID-19 testing devices procured for daily testing; mine site currently COVID-19 free
• Open pit mine exceeds 2021 target capacity of ~150k tpd with ~159k tpd in Q4
• Mill achieved another consecutive quarter of ~27k tpd, the maximum allowable under the current permit
• Mine and mill operating at capacity, focus now shifts to optimize recovery and unit cost performance

9M Open Pit Mining costs1	9M Unit Costs ($/t)1,2
($/t mined)	Open Pit, Mill & G&A

2018	2019	9M 2020	2021	2018	2019	9M 2020	2021
			Target				Target

• Unit costs trending towards 2021 target
• Lower planned strip ratio of 2.70 in Q4
• Overall improved grade of 0.93 g/t in Q4 as mining moved to higher grade zones
• Q4 mill availability (94%) exceeds plan and recoveries (90%) slightly ahead of plan
• 1. 9M 2020 unit costs are inclusive of the Canada Emergency Wage Subsidy.
  2. Open pit mine unit costs presented on a per tonne mined basis, mill and G&A unit costs

presented on per tonne processed basis

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Rainy River: Underground Mine Life Extension

Grey areas indicate potential new mining areas

Underground Mine Growth with Potential Reserve Conversion

• Significant potential for underground Resource to Reserve conversion at higher gold price (current reserves at $1,275/oz.) used for underground; Approx. 1.7M gold ounces in underground M&I Resources category*
• Underground Reserve growth to be supported by milling scenario to accommodate underground standalone scenario
• Underground access from Intrepid portal and four open pit portals; reduces underground development capital

• Higher grade underground ore will be blended with low grade stockpile for batch processing to optimize mill productivity up to 2028; underground standalone scenario thereafter
• Decline towards Intrepid zone advanced 590 m (550 m planned); Refinement of long-hole mining methodology and block model in 2021

*See the 2019 Mineral Reserves and Mineral Resources at the end of this presentation.

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Rainy River Exploration Program

North East Trend Target:

• Two broader areas with coincident geochemical and geophysical anomalism defined within ~15 km regional structural corridor
• 8,000 meters drilling program; 1,298 meters drilled in December 2020 and planned for completion by early Q2 2021
• Drone Magnetic survey completed to extend the coverage on the entire project area
• A total of 571 soil samples were collected in Q3 2020 to identify geochemical anomalies related with possible mineralized structures under cover
• Geological and geochemical data interpretation in progress to support follow- up drill targets definition

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New Afton Mine: Operational Highlights

A copper/gold block cave operation located in B.C.

Q4 2020 Operational* and Recent Highlights

• Operation achieved mid-range of gold eq. guidance (copper at higher end and gold at lower end). Operating expense and cash costs are expected to be at the lower end of guidance. AISC and sustaining capital are expected to be at, or slightly below revised guidance; growth capital is tracking to the mid-range of guidance
• B3 development accelerated in Q4/Q1 2021 shifts ~$10M sustaining capital to 2021; B3 production remains on schedule for H2 2021
• C-ZoneTAT project advanced; thickener construction and other COVID-19 delays shift ~$20M of growth capital to 2021. Thickener delivery expected in Q1 2021 and C-Zone production remains on schedule for H2 2023
• New access into east cave recovery area with ultimate target rate of 4,000 tpd (Q4: 1,339 tpd); consistent grades in Q4 2020
• B3 permit on schedule; C-zone permits submission in Q4.
• Cherry Creek exploration drilling program (10,000 m) launched in Q4; testing near surface epithermal and porphyry style mineralization.
• • Financial results will be issued on February 19, 2021

Production	Q4 2020	2020	2020
REVISED GUIDANCE
Gold Production (oz)	16,362	64,220	62,000	- 72,000
Copper Production (Mlb)	18.5	72.1	65	- 75
Gold eq. Production (oz)1	52,326	204,416	190,000 -220,000
Operating Costs*	Q3 2020	9M 2020	2020
			REVISED GUIDANCE
Operating expense per gold eq. oz	708	640	630	- 710
Cash costs per gold eq. oz. 2	807	742	740	- 820
AISC per gold eq. oz.2	988	971	1,080	- 1,160
Capital & Exploration ($M)*	Q3 2020	9M 2020	2020
REVISED GUIDANCE
Sustaining Capital & sustaining	8.7	32.0	$62	- $72
leases 2
Growth Capital 2	16.1	37.2	$70	- $85
Exploration	0.4	3.0	$4	- $8

1. Gold eq. oz. for Q4 2020 includes 18.5lbs of copper and 72,038 silver oz. converted to a gold eq. based on a ratio of $1,500/oz. gold, $2.85/lb copper and $17.75/oz. silver.
2. Refer to the "Non-GAAP Performance Measures" section of this presentation.

New Afton Life of Mine Highlights

NI 43-101 Technical Report - 2021 LOM

	LoM1	Sensitivity2
Avg. annual gold eq. production (k oz)*	232	223
Cash costs per gold eq. oz. ($/oz)*	$697	$731
AISC per gold eq. oz. ($/oz)*	$757	$792
Sustaining capital ($M)3	$114	$114
Growth capital ($M)3	$365	$365
Cumulative total cash flow ($M)4,5	$1,174	$1,387
After-tax NPV5%	$864	$1,040

1. Assuming $1,550/oz gold, $17.50/oz silver, $3.00/lb copper and a USD/CAD rate of 1.30 C$ to1 US$
2. US$1,800/oz gold, US$3.25/lb copper, US$20/oz silver and a USD/CAD rate of 1.30
3. Sustaining and Growth Capital spend excludes working capital movement
4. LOM value includes a negative cash flow of $9M primarily for closure activities offset by salvage values
5. Life of Mine free cash flow estimates are exclusive of Ontario Teachers' Pension Plan free cash flow interest

(refer to Feb. 25, 2020 press release)

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New Afton Mine - KPI Dashboard

2020 Mine Development

B3/C-Zone (m) vs. 2020 Target

3,128

2,849

2,436

2,211

9M Capital vs Target* ($M)

(*mid-range of revised guidance)

77.5

67.0

37.2

32.0

9M UG Mine Unit Costs1	9M Unit Costs1,2 ($/t)
($/t mined)	Underground, Mill & G&A

B3 Zone	C-Zone	Sustaining Capital	Growth Capital

Q4 2020 Operational Highlights

• Mine productivity of ~17.3k tpd, above planned levels
• Mill processed ~15.4k tpd with gold and copper recoveries of 79% and 81%, respectively, with mill availability at 99%, above plan
• B3/C-Zonedevelopment advanced by ~1,705 m
• Overall B3/C-Zone execution remains on schedule
• • C-Zonedevelopment achieved 110% of target; B3 development achieved 91% of plan
  • Accelerated B3 development in Q4 and Q1 2021 due to crew redeployment to the east cave for a portion of Q3
• B3 production remains on schedule for H2 2021

2018	2019	9M 2020 2020 Target	2018	2019	9M 2020 2020 Target

• The 2020 and 2021 mine plans incorporate multiple sources of ore from the east and west cave
• New access point into the east cave recovery zone completed in Q3, Q4 extraction rate of 1,339 tpd; several days in December over 3,000 tpd; ultimate target of 4,000 tpd
• 10,000 metre Phase 1 of the Cherry Creek Trend drilling program launched late October to test the potential near surface epithermal and porphyry style mineralization located ~3 km from New Afton mill
• 1. 9M 2020 unit costs are inclusive of the Canada Emergency Wage Subsidy.
  2. Underground mine unit costs presented on a per tonne mined basis, mill and G&A unit costs

presented on per tonne processed basis

13

Exploration Potential Near Mine and District

Exploration drilling to further extend mineralization below SLC and parallel to C-Zone to add ore resources

• 10,550 meters (19 holes) underground drilling completed to delineate and expand mineral resources directly below and down plunge from SLC Zone
• Additional mineralization defined within the Upper and Lower East Extension Zones; updated geological model and project database will support YE 2020 Resource Estimate Update
• AI (Artificial Intelligence) study completed within the Mine footprint results in new underground targets definition; initial exploration drilling to test potential mineralization planned in Q2 2021
• Delineation drilling for D-Zone, Lower East Extension and first pass deep AI target drilling planned for 2022 from the base of C-Zone

Preliminary Stages of Testing District Target Potential

• Cherry Creek Corridor Target: within the 12 km trend of prospective geochemical and geophysical anomalies located ~3 km from New Afton mill
• Significant near-surface epithermal gold and underlying porphyry copper-gold system discovery potential
• Phase 1 Cherry Creek drilling program (10,000 m) launched in late October
• Reconnaissance exploration drilling on priority targets is in progress with 6,516 meters in 14 holes completed
• Detailed geological and alteration interpretation in progress to further refine follow- up drill ready targets
• Soil geochemical surveys and IP surveys planned on the broader New Afton claims block to define additional targets for drill testing

14

New Gold: A Profitable Path Forward

Optimized balance	Rainy River	Optimizing C-Zone
sheet repositions New	positioned for	development to support
Gold for growth	profitable operations	a self-funded approach
	with underground
	upside

Growing production and	Organic growth
expanded margins will	potential through
drive sustainable free cash	strategic exploration
flow	programs

15

Appendix

COVID-19 Business Plan

Employee and community health and safety

• The health and safety of our employees and communities remains number one priority
• Full compliance with government and health agency recommendations
• Restricted access to sites; travel restrictions; enhanced sanitization practices; self-isolation; community- based consultations; optimized plans for transport and employee accommodation; social distancing; work from home options (see www.newgold.com/covid-19/for further details)

Supply chain continuity

• Supply chain secure for key items; no disruptions to supply anticipated
• Standard inventory items on hand; required quantities being maintained
• Long-leaditems remain on schedule

Business continuity plans and Rapid Response Team fully mobilized

• Scenario-basedbusiness continuity plans in place
• Ramp-down /ramp-up plans as required
• COVID-19rapid testing devices procured for use at Rainy River and daily testing is underway
• Rainy River operations restarted on April 3 utilizing the local workforce; gradual and safe reintroduction of non- local workforce nearing completion and operations returned to full capacity in early Q3

Financial status

• Sufficient liquidity to support operations during this crisis; Approx. $490M in available liquidity (Dec. 31, 2020)
• 90-95%of costs are denominated in Canadian dollars (New Afton: 90% / Rainy River 95%)

Suspended site activities

• Regional exploration programs launched in Q4

17

Ontario Teachers' Pension Plan Transaction

Terms

Completed $300M strategic partnership with Ontario Teachers' Pension Plan (March 31, 2020)

• Improved balance sheet with significantly enhanced liquidity of ~$600million
• Financial flexibility and debt reductionopportunities

• New Gold has entered into a strategic partnership with Ontario Teachers' Pension Plan ("Ontario Teachers'") with the following terms (the "Transaction"):

Transaction	• First 4 years - 46% Free Cash Flow Interest ("FCF Interest") in New Afton
•	After 4 years - Ontario Teachers' has an option ("Conversion Option") to convert into a 46% joint venture in
		New Afton ("JV Interest"); if Ontario Teachers' does not convert into the JV Interest, the FCF Interest in New
		Afton will be reduced to 42.5% ("Reduced FCF Interest")

Buyback Option	•	During the exercise period of the Conversion Option, New Gold holds an overriding buyback option to repurchase
	100% of Ontario Teachers' interest in New Afton at the greater of an agreed upon IRR or the fair market value at
		that time
Exploration Claims	•	New Gold will retain 100% of the exploration claims outside of the New Afton mining permit. Ontario Teachers'
	has an option to acquire its proportionate share of these claims upon conversion into the JV Interest
Key Transfer Rights	•	New Gold and Ontario Teachers' will hold a mutual right of first offer for the life of theagreements
	• As a strategic partner, Ontario Teachers' will have certain governance rights
Governance	•	Upon conversion into the JV Interest, Ontario Teachers' will receive customary joint venture governance

rights

18

Divestment of Blackwater

Key Transaction Terms

Transaction	⚫ Definitive agreement to sell New Gold's 100% interest in
Blackwater to Artemis Gold Inc.

• C$190 million in cash, comprised of C$140 million in cash upon closing of the Transaction and C$50 million in cash payable twelve months following closing of the Transaction
• C$20 million in Artemis shares (not to exceed 9.9%);

Consideration terms and price consistent with Artemis' Transaction

• Financing

• Gold stream on 8% gold produced from Blackwater, reducing to 4% of gold production once approximately 280,000 ounces of gold have been delivered, with a transfer price equal to 35% of the spot gold price

Transaction	⚫ Artemis intends to fund the initial cash payment through a
combination of cash on hand and an equity financing that
Financing
is fully backstopped by Artemis insiders
Approvals &	⚫ Customary closing conditions, including Artemis
Conditions	shareholder approval and required regulatory approvals

Transaction Highlights

• Marks another milestone in the re-positioning of New Gold to create a Canadian-focused, diversified intermediate gold producer
• Further enhances balance sheet with upfront cash payment, providing additional flexibility
• Retains exposure to Blackwater project via an equity position and gold stream on production
• Blackwater becomes a core focus of a dedicated management team with a proven track record that can unlock its potential
• Surfacing value for Blackwater now positions New Gold to transition to the next phase of the company's growth plan

Closing ⚫ Closed August 24, 2020

19

Rainy River: Operating Excellence

Mine Performance

Mill Performance

Cost Control

•	Leverage technology to	•	Maximize mill throughput to	•	Implement cost driver
	optimize performance		maximum permit limit		strategy; operational &
					procurement approach
•	Focus on continuous	•	Improve recoveries through
	improvement; increased		continued optimization;	•	Create a culture that
	effective hours of equipment		optimized grind, gravity		encourages innovation and
			circuit and ore type		positive change
•	Enhance maintenance		scenarios	•	Optimization of capital
	practices
		•	Optimize effective hours		management practices

20

New Afton: Operating Excellence

Self-FundedC-Zone

Mine & Mill Performance

Cost Control

• Committed to de-risking C- Zone development to support a self-funded approach
• Focus on continuous improvement; reduced development cycle times
• Base case at $1,300 gold and $3.00 copper; significant upside at spot prices
• Optimize Lift 1 and B3-Zone production (2020-2023)

• Leverage technology to optimize mine and mill performance; autonomous scoops and mill process controls; electrification of C- Zone
• Focus on continuous improvement
• Improved recoveries; ultra- fine material
• Enhanced mine and mill maintenance practices

• Leverage robust contract and procurement strategies
• Foster a culture that encourages innovation and positive change
• Optimization of capital projects and cost management programs
• Integrated project and operations teams

21

Mineral Reserves and Resources

Mineral Reserves Statement as at December 31, 2019

Proven & Probable		Metal grade			Contained metal
Tonnes	Gold	Silver	Copper	Gold	Silver	Copper
000s	g/t	g/t	%	Koz	Koz	Mlbs

RAINY RIVER

Open Pit Mineral Reserves

Direct Processing
Proven	15,700		1.21		2.4		-	612	1,187	-
Probable		30,675			1.15			2.5		-		1,136	2,416	-
Open Pit P&P (direct proc.)		46,375			1.17			2.4	-	1,748	3,602	-
Low grade
Proven	5,702		0.35		1.9		-	65	341	-
Probable		15,470			0.35			2.2	-	172	1,076	-
Open Pit P&P (low grade)		21,172			0.35			2.1		-		237	1,417	-
Stockpile
Proven	5,928		0.53		1.1		-	102	211	-
Probable	-				-	-	-	-				-	-
Open Pit P&P (stockpile)	5,928		0.53		1.1		-	102	211	-
Open Pit P&P Total Mineral Reserves	73,476		0.88	2.2		-	2,087	5,231	-
Underground
Proven	-	-	-	-	-	-	-
Probable		4,096			4.17			7.8		-		549	1,034	-
Underground P&P (direct proc.)		4,096			4.17			7.8		-		549	1,034	-
Combined Direct proc. &Low grade
Proven	27,331		0.88		2.0		-	779	1,740	-
Probable		50,240			1.15			2.8		-		1,857	4,526	-
Total Rainy River MineralReserves	77,572		1.06	2.5		-	2,636	6,265	-

22

Mineral Reserves and Resources

Mineral Reserves Statement as at December 31, 2019

Proven & Probable							Metal grade							Contained metal
	Tonnes	Gold	Silver	Copper	Gold		Silver	Copper
	000s	g/t	g/t	%			Koz		Koz	Mlbs
NEW AFTON
A&B Zones
Proven	-	-	-	-	-		-	-
Probable	20,213		0.55		1.9		0.73	357			1,234	323
C Zone
Proven	-	-	-	-	-		-	-
Probable		27,088			0.74			1.8			0.80	648		1,610	478
Total New Afton Total Mineral Reserves	47,302	0.66		1.9	0.77	1,005			2,844		802
TOTAL PROVEN & PROBABLE RESERVES													3,641	9,110	802

Notes to the Mineral Reserve and Mineral Resource estimates are provided below.

23

Mineral Reserves and Resources

Mineral Reserves Statement as at December 31, 2019

Measured & Indicated (Exclusive of Reserves)									Metal grade								Contained metal
	Tonnes	Gold	Silver	Copper		Gold					Silver	Copper
		000s	g/t	g/t	%		Koz					Koz	Mlbs
RAINY RIVER
High and Medium grade MineralResources
OpenPit
Measured	695		1.46		2.9		-		33	64	-
Indicated		4,813			1.18			3.4		-		182	531	-
Open Pit M&I (High and med. grade)		5,508			1.21			3.4		-		214	596	-
Underground
Measured	-	-	-		-		-	-	-
Indicated		14,866			3.49			9.1		-		1,669	4,331	-
Underground M&I		14,866			3.49			9.1		-		1,669	4,331	-
Low grade MineralResources
OpenPit
Measured	293		0.34		1.9		-		3	18	-
Indicated		2,460			0.34			2.2		-		27	175	-
Open Pit M&I (low grade)		2,753			0.34			2.2		-		30	193	-
Combined M&I
Measured	989		1.13		2.6		-		36	82	-
Indicated		22,139			2.64			7.1		-		1,878	5,037	-
Total Rainy RiverM&I		23,127			2.57	6.9		-		1,914	5,120	-

24

Mineral Reserves and Resources

Mineral Reserves Statement as at December 31, 2019

Measured & Indicated (Exclusive of							Metal grade							Contained metal
Reserves)
	Tonnes	Gold	Silver	Copper	Gold	Silver		Copper
		000s	g/t	g/t	%			Koz	Koz		Mlbs
NEW AFTON
A&B Zones
Measured	17,013		0.63		1.7	0.83	346	940			312
Indicated		9,759			0.44			2.6	0.71	138	825			154
A&B Zone M&I	26,773		0.56		2.1	0.79	484	1,765		466
C-Zone
Measured	6,116		0.78		2.0	0.94	154	401			126
Indicated		12,727			0.71			2.1	0.83	292	852			233
C-Zone M&I		18,843			0.74			2.1	0.86	446	1,254		359
HWLens
Measured	-	-	-	-	-	-			-
Indicated	11,362		0.51		2.0	0.44	187	738			109
HW Lens M&I	11,362		0.51		2.0	0.44	187	738			109
Combined M&I
Measured	23,154		0.67		1.8	0.86	500	1,345		438
Indicated	33,854		0.57		2.2	0.66	617	2,409		495
Total New AftonM&I	57,008		0.61		2.1	0.74	1,118	3,754		933
TOTAL M&I RESOURCES													3,032	8,873			933

Notes to the Mineral Reserve and Mineral Resource estimates are provided below.

25

Mineral Reserves and Resources

Mineral Reserves Statement as at December 31, 2019

Inferred										Metal grade								Contained metal
	Tonnes						Gold	Silver	Copper	Gold		Silver	Copper
	000s						g/t	g/t	%			koz		koz	Mlbs
RAINY RIVER
High and Medium gradeResources
Open Pit		2,015		0.61	1.8		-	39		114	-
Underground		1,297		3.76	3.5		-	157		146	-
Total Direct Processing		3,312		1.84	2.4		-	196		260	-
Low gradeResources
Open Pit		167		0.35	1.4		-	2		8	-
Rainy RiverInferred		3,479	1.77	2.4		-		198			268		-
NEW AFTON
A&B Zones		6,367		0.34	1.3		0.35	70		272	49
C-Zone		7,650		0.41	1.3		0.47	101		316	71
HW Lens			3			0.49	0.6	0.19	-		-	-
New Afton Inferred		14,022		0.38	1.3		0.42	172			589		121
TOTAL INFERRED																369			857				121

Notes to the Mineral Reserve and Mineral Resource estimates are provided below.

26

Notes to Mineral Reserve and Resource

Estimates

Notes to Mineral Reserve and Resource Estimates

1.	New Gold's Mineral Reserves and Mineral Resources have been estimated in accordance with the CIM standards (2014), which are incorporated by
	reference in NI 43-101.
2.	All Mineral Reserve and Mineral Resource estimates for New Gold's properties and projects are effective December 31, 2019.
3.	New Gold's year-end 2019 Mineral Reserves and Mineral Resources have been estimated based on the following metal prices and foreign exchange
	(FX) rate criteria:
				Gold		Silver	Copper		FX
				$/ounce		$/ounce	$/pound		CAD:USD
		Mineral Reserves		$1,275		$17.00	$3.00		1.30
		Mineral Resources		$1,375		$19.00	$3.25		1.30
4.	Cut-offs for the Company's Mineral Reserves and Mineral Resources are outlined in the following table:
		Mineral Property					Mineral Reserves			Mineral Resources
						Lower Cut-off			Lower Cut-off
			O/P direct processing:		0.46 - 0.49 g/t AuEq			0.44 - 0.45 g/t AuEq
		Rainy River	O/P low grade material:		0.30 g/t AuEq			0.30 g/t AuEq
			U/G direct processing:		2.20 g/t AuEq			2.00 g/t AuEq
		New Afton	Main Zone - B1 & B2 Blocks:		USD$ 21.00/t			All Resources 0.40% CuEq
		B3 Block & C-Zone		USD$ 24.00/t

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 and technical feasibility, do not have demonstrated economic viability, and are likewise exclusive of Mineral Reserves. Numbers may not add due to rounding.

27

Notes to Mineral Reserve and Resource

Estimates (cont'd)

1. 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 considered to be most suitable to their potential commercial extraction. The designators 'open pit' and 'underground' may be used to indicate the envisioned mining method for different portions of a resource. Similarly, the designators 'direct processing' and 'lower grade material' may be applied to differentiate material envisioned to be mined and processed directly from material to be mined and stored separately 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 43-101 Technical Reports, which are available at www.sedar.com.
2. The preparation of New Gold's consolidated statement and estimation of Mineral Reserves has been completed under the oversight and review of Mr. Andrew Croal, Director of Technical Services for the Company. Mr. Croal is a Professional Engineer and member of the Association of Professional Engineers Ontario. Preparation of New Gold's consolidated statement and estimation of Mineral Resources has been completed under the oversight and review of Mr. Michele Della Libera, Director, Exploration for the Company. Mr. Della Libera is a Professional Geoscientist and member of the Association of Professional Geoscientists of Ontario and of the Engineers and Geoscientists of British Columbia. Mr. Croal and Mr. Della Libera are "Qualified Persons" as defined by NI 43-101.

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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 with Canadian standards for reporting of mineral resource estimates, which differ in some respects from United States standards. In particular, and without limiting the generality of the foregoing, the terms "inferred mineral resources," "indicated mineral resources," "measured mineral resources" and "mineral resources" used or referenced in this presentation are Canadian mineral disclosure terms as defined in accordance with NI 43-101 under the guidelines set out in the 2014 Canadian Institute of Mining, Metallurgy and Petroleum Standards for Mineral Resources and Mineral Reserves, Definitions and Guidelines, May 2014 (the "CIM Standards"). Until recently, the CIM Standards differed significantly from standards in the United States. The U.S. Securities and Exchange Commission (the "SEC") has adopted amendments to its disclosure rules to modernize the mineral property disclosure requirements for issuers whose securities are registered with the SEC under the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act"). These amendments became effective February 25, 2019 (the "SEC Modernization Rules") with compliance required for the first fiscal year beginning on or after January 1, 2021. The SEC Modernization Rules replace the historical property disclosure requirements for mining registrants that were included in SEC Industry Guide 7, which will be rescinded from and after the required compliance date of the SEC Modernization Rules. As a result of the adoption of the SEC Modernization Rules, the SEC now recognizes estimates of "measured mineral resources", "indicated mineral resources" and "inferred mineral resources". In addition, the SEC has amended its definitions of "proven mineral reserves" and "probable mineral reserves" to be "substantially similar" to the corresponding definitions under the CIM Standards, as required under NI 43-101. Accordingly, during this period leading up to the compliance date of the SEC Modernization Rules, information regarding mineral resources or mineral reserves contained or referenced in this presentation may not be comparable to similar information made public by United States companies.

Readers are cautioned that "inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their 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, except in limited circumstances. The term "resource" does not equate to the term "reserves". Readers should not assume that all or any part of measured or indicated mineral 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.

TECHNICAL INFORMATION

The scientific and technical information contained herein has been reviewed and approved by Eric Vinet, Senior Vice President, Operations of New Gold. Mr. Vinet is a Professional Engineer and member of the Ordre des ingénieurs du Québec. He is a "Qualified Person" for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

The scientific and technical information relating to Mineral Reserves contained herein has been reviewed, verified and approved by Mr. Andrew Croal, Director, Technical Services of New Gold. The scientific and technical information relating to Mineral Resources and exploration activities and results contained herein has been reviewed and approved by Mr. Michele Della Libera Director, Exploration of New Gold. All other scientific and technical information contained herein has been reviewed and approved by the persons named under the heading "Technical Information and Qualified Persons" with respect to the technical and scientific information noted for each name. Mr. Croal is a Professional Engineer and member of the Association of Professional Engineers Ontario. Mr. Della Libera is a Professional Geoscientist and a member of Engineers & Geoscientists British Columbia and Professional Geoscientists Ontario. Mr. Croal, Mr. Della Libera and the persons named under the heading "Technical Information and Qualified Persons" are "Qualified Persons" for the purposes of NI 43-101. No limitations were imposed on these Qualified Persons with respect to the verification of the data contained herein. Further detail about the mineral resource and reserve estimates, including assumptions, parameters, risks and data verification measures, are available in the technical reports filed by the Company on www.sedar.com.

29

Non-GAAP Measures

NON-GAAP FINANCIAL PERFORMANCE MEASURES

(1) ALL-IN SUSTAINING COSTS

""All-in sustaining costs" 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 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, lease payments that are sustaining in nature, and environmental reclamation costs, all divided by the ounces of gold eq. 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.

(2) SUSTAINING CAPITAL AND SUSTAINING LEASE

"Sustaining capital" is a non-GAAP financial measure as well as "sustaining lease". New Gold defines sustaining capital as net capital expenditures that are intended to maintain operation of its gold producing assets. A sustaining lease is similarly a capital lease payment that is sustaining in nature. To determine sustaining capital expenditures, New Gold uses cash flow related to mining interests from its statement of cash flows and deducts any expenditures that are non-sustaining or growth capital. Management uses sustaining capital and other sustaining costs, to understand the aggregate net result of the drivers of all-in sustaining costs other than total cash costs. Sustaining capital and sustaining lease are intended to provide additional information only, 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.

(3) TOTAL CASH COSTS

"Total cash costs per ounce" is a non-GAAP financial measures which are calculated in accordance with a standard developed by The Gold Institute, a worldwide association of suppliers of gold and gold products that ceased operations in 2002. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measures of other companies. New Gold reports total cash costs on a sales basis. The Company believes that certain investors use this information to evaluate the Company's 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, but are exclusive of amortization, reclamation, capital and exploration costs. Total cash costs per gold ounce are net of by-product sales and are divided by gold ounces sold to arrive at a per ounce figure. This data is furnished to provide additional information and is a non-GAAP financial measure. Total 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.

(4) FREE CASH FLOW

"Free cash flow" is defined as operating cash flow less sustaining capital expenditures.

(5) GROWTHCAPITAL

"Growth capital" is a non-GAAP financial measure. New Gold terms non-sustaining capital costs to be "growth capital", which are capital expenditures to develop new operations or capital expenditures related to major projects at existing operations where these projects will materially increase production. To determine growth capital expenditures, New Gold uses cash flow related to mining interests from its statement of cash flows and deducts any expenditures that are sustaining capital. Growth capital is intended to provide additional information only, 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.

Further details regarding non-GAAP financial performance measures 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 www.sedar.com.

30