Notes to Mineral Reserve and Mineral Resource Estimates

1. New Gold’s Mineral Reserves and Resources and the El Morro Mineral Reserves and Resources have been estimated in accordance with the CIM Standards, which are incorporated by reference in NI 43-101.

2. YNew Gold’s year end 2015 Mineral Reserves and Mineral Resources have been estimated based on the following metal prices and foreign exchange rate criteria:

Gold $/ounce Silver $/ounce Copper $/pound CAD AUD MXN
Mineral Reserves $1,200 $15.00 $2.75 1.25 1.35 17.00
Mineral Resources $1,300 $17.00 $3.00 1.25 1.35 17.00
Mineral Property Mineral Reserves LOWER cut-off Mineral Resources LOWER cut-off
New Afton Main Zone – B1 Block: C$ 21.00/t
Main Zone – B2 Block: C$ 33.00/t All Resources: 0.40% CuEq
B3 Block & C-Zone: C$ 24.00/t
Mesquite Oxide & Transitional:
Sulphide:
0.21 g/t Au (0.006 oz/t Au)
0.41 g/t Au (0.012 oz/t Au)
0.12 g/t Au (0.0035 oz/t Au)
0.24 g/t Au (0.007 oz/t Au)
Peak Mines All ore types: A$ 110/t to A$ 156/t A$ 113/t to A$ 150/t
Cerro San Pedro All ore types: US$ 6.00/t n/a
Rainy River O/P direct processing:
O/P stockpile:
U/G direct processing:
0.30–0.60 g/t AuEq
0.30 g/t AuEq
3.50 g/t AuEg
0.30–0.45 g/t AuEq
0.30 g/t AuEq
2.50 g/t AuEg
Blackwater O/P direct processing:
Stockpile:
0.26–0.38 g/t AuEq
0.32 g/t AuEq
All Resources: 0.40 g/t AuEq

3. Year End 2015 El Morro Mineral Reserves and Mineral Resources have been estimated using $1,200/oz gold, $2.75/lb copper and 550 Chilean pesos to one United States dollar, and a lower cut-off of 0.20% CuEq.

4. New Gold reports its Measured and Indicated Mineral Resources exclusive of Mineral Reserves. Measured and Indicated Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Inferred Mineral Resources have a greater amount of uncertainty as to their existence, economic and legal feasibility, do not have demonstrated economic viability and are likewise exclusive of Mineral Reserves. Numbers may not add due to rounding.

5. Mineral Resources are classified as Measured, Indicated and Inferred based on relative levels of confidence in their estimation and on technical and economic parameters consistent with the methods most suitable for their potential commercial exploitation. Where different mining and/or processing methods might be applied to different portions of a Mineral Resource, the designators “open pit” and “underground” have been applied to indicate the envisioned mining method. Likewise the designators “oxide”, “non-oxide” and “sulphide” have been applied to indicate the type of mineralization as it relates to the appropriate mineral processing method and expected payable metal recoveries, and the designators “direct processing” and “stockpile” have been applied to differentiate between material envisioned to be mined and processed directly and material to be mined and stored in a stockpile for future processing. Mineral Reserves and Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, and other risks and relevant issues. Additional details regarding Mineral Reserve and Mineral Resource estimation, classification, reporting parameters, key assumptions and associated risks for each of New Gold’s material properties are provided in the respective NI 43-101 Technical Reports, which are available at www.sedar.com.

6. Rainy River project: In addition to the criteria described above, Mineral Reserves and Mineral Resources for the Rainy River project are reported according to the following additional criteria: Underground Mineral Reserves are reported peripheral to and/or below the open pit Mineral Reserve pit shell, which has been designed and optimized based on an $800/oz gold price. Underground Mineral Resources are reported below a larger Mineral Resource pit shell, which has been defined based on a $1,300/oz gold price. Approximately 44 percent (44%) of the gold metal content defined as underground Mineral Reserves is derived from material located between the Mineral Reserve pit shell and the Mineral Resource pit shell; the remaining 56 percent (56%) of the metal content defined as underground Mineral Reserves is derived from material located below the Mineral Resource pit shell. Open pit Mineral Resources exclude material reported as underground Mineral Reserves.

7. All Mineral Resource and Mineral Reserve estimates for New Gold’s properties and projects and for the El Morro project are effective December 31, 2015.