Building Value

New Gold Inc. is an intermediate gold producer with operating mines in Canada, the United States, Australia and Mexico, development projects in Canada as well as a 4% gold stream on the El Morro project in Chile. For the full year ended December 31, 2015, the New Afton Mine in Canada, the Mesquite Mine in the United States, the Peak Mines in Australia and the Cerro San Pedro Mine in Mexico combined to produce 435,718 gold ounces, 100.0 million pounds of copper and 1.9 million silver ounces.

Fellow
Investors,

The strong performance of gold prices in early 2016 is welcome news for the industry. If the trend continues, investors will be pleased to see 2015’s weak metal prices behind us.

2015 Scorecard
435,718 oz

Record gold production exceeded high end of guidance range

$809 per oz

All-in sustaining costs are among the lowest in the industry, with total cash costs of $443 per ounce

New Afton

Mill expansion completed ahead of schedule and under budget. Completed C-zone feasibility study

100 million pounds

of copper production with 1.9 million ounces of silver production

$340 per oz

all-in sustaining cost margin for 2015

Rainy River

Overall construction progress is over 30% complete as of first quarter 2016

2016 Targets
360,000–
400,000 oz

Gold production will decrease as Cerro San Pedro transitions to residual leaching

$825–$865 per oz

targeted all-in sustaining costs among the lowest in the industry, with total cash costs of $435–$475 per ounce

New Afton

Further drill test the C-zone ore body with the objective of adding additional mine life

81–
93 million pounds

of copper production, and 1.6–1.8 million ounces of silver production

$355 per oz

estimated all-in sustaining cost margin for 2016

Rainy River

The 2016 development program is expected to advance overall construction to 75%

New Afton Mine

New Afton Mine
2015 PRODUCTION 104,589 Gold (ounces) 84.5 Copper (million pounds) $(1,248) Total cash costs per ounce
(net of by-product sales)
$(650) All-in sustaining costs
per ounce
2016 targets 105,000–115,000 Gold (ounces) 85–95 Copper (million pounds) $(1,070)–$(1,030) Total cash costs per ounce
(net of by-product sales)
$(560)–$(520) All-in sustaining costs
per ounce

Mesquite Mine

Mesquite Mine
2015 PRODUCTION 106,670 Gold (ounces) $909 Total cash costs per ounce $1,266 All-in sustaining costs
per ounce
2016 targets 110,000–120,000 Gold (ounces) $925–$965 Total cash costs per ounce $1,290–$1,330 All-in sustaining costs
per ounce

Peak Mines

Peak Mines
2015 PRODUCTION 99,030 Gold (ounces) 17 million Copper (pounds) $658 Total cash costs per ounce
(net of by-product sales)
$1,025 All-in sustaining costs
per ounce
2016 targets 85,000–95,000 Gold (ounces) 15–17 million Copper (pounds) $660–$700 Total cash costs per ounce
(net of by-product sales)
$1,005–$1,045 All-in sustaining costs
per ounce

Cerro San Pedro Mine

Cerro San Pedro Mine
2015 PRODUCTION 69,847 Gold (ounces) 1.1 million Silver (ounces) $1,251 Total cash costs per ounce
(net of by-product sales)
$1,354 All-in sustaining costs
per ounce
2016 targets 90,000–100,000 Gold (ounces) 1.75–1.95 million Silver (ounces) $955–$995 Total cash costs per ounce
(net of by-product sales)
$1,005–$1,045 All-in sustaining costs
per ounce

Rainy River Project

Rainy River Project
Proven and Probable Reserves 3.8 million Gold (ounces) 9.4 million Silver (ounces)
Production estimates 325,000 Gold (ounces per year)
for the first nine years

Blackwater Project

Blackwater Project
Proven and Probable Reserves 8.2 million Gold (ounces) 60.8 million Silver (ounces)
Production estimates 485,000 Gold (ounces per year)
for the first nine years

Financial Highlights

New Gold maintains a strong liquidity position. The company’s December 31, 2015 cash balance of $336 million together with the receivable for Royal Gold’s second instalment under the stream agreement of $75 million (the receipt of which is subject to the satisfaction of certain conditions) and the $184 million available for drawdown under New Gold’s revolving credit facility provide approximately $595 million of liquidity in addition to the net cash the company’s operating mines are expecting to generate.