2013 fourth quarter and year end webcastv final

2013 Fourth Quarter and

Year-End Results WebcastFebruary 28, 2014

Speaker

2

Randall Oliphant, Executive Chairman

Cautionary statements

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

Total cash costs shown net of by-product sales 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 are “forward looking”. All statements in this presentation, other than

statements of historical fact, which 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 use of forward-looking terminology such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “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 under the heading “Project Overview” and “2014 Guidance and Sensitivities”, including

statements with respect to: guidance for production, cash costs and all-in sustaining costs (all related sensitivities); the results of the Rainy River and Blackwater feasibility studies, including the expected

production, costs (and related sensitivities), grades, stripping ratio, mining and processing method and rate, stockpiling plan, mine life, NPV, IRR and payback period associated with each project; planned

activities for 2014 at each of the company’s projects; the timing of permitting activities and environmental assessment processes; and targeted timing for commissioning and full production at Rainy River and

sequencing of Blackwater.

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 our forward-looking statements are discussed in this presentation, New Gold’s MD&A’s, its Annual

Information Form and its Technical Reports filed at www.sedar.com. In addition to, and subject to, such assumptions discussed in more detail elsewhere, the forward-looking statements in this presentation are

also subject to the following assumptions: (1) there being no signification disruptions affecting New Gold’s operations; (2) political and legal developments in jurisdictions where New Gold operates, or may in the

future operate, being consistent with New Gold’s current expectations; (3) the accuracy of New Gold’s current mineral reserve and resource estimates; (4) the exchange rate between the Canadian dollar,

Australian dollar, Mexican Peso and U.S. dollar 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) labour and material costs increasing on a basis consistent with New Gold’s current expectations; (7) permitting and arrangements with First Nations and other Aboriginal groups in respect of

Rainy River and Blackwater being consistent with New Gold’s current expectations; (8) all environmental approvals (including the environmental assessment process for the Blackwater and Rainy River projects),

required permits, licenses and authorizations being obtained from the relevant governments and other relevant stakeholders within the expected timelines; and (9) the results of the feasibility studies for the Rainy

River and Blackwater projects being realized.

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; price

volatility in the spot and forward markets for commodities; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States, Australia, Mexico and Chile;

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, 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 in which New Gold operates, including, but not limited to: in Canada, obtaining

the necessary permits for the Blackwater and Rainy River projects; in Mexico, where Cerro San Pedro has a history of ongoing legal challenges related to our environmental authorization (EIS); and in Chile, where

the courts have temporarily suspended the approval of the environmental permit for El Morro; 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 reserves and resources; competition; loss of key employees; additional funding requirements; rising costs of labour, supplies, fuel and equipment; actual results of current exploration or reclamation

activities; uncertainties inherent to mining economic studies including the feasibility studies for Rainy River and Blackwater; 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 First Nations and other

Aboriginal groups; uncertainties with respect to obtaining all necessary surface and other land use rights or tenure for Rainy River; risks, uncertainties and unanticipated delays associated with obtaining and

maintaining necessary licenses, permits and authorizations and complying with permitting requirements, including those associated with the environmental assessment processes for Blackwater and Rainy River.

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

disclosure documents filed on and 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.

The footnotes to this presentation contain important information, refer to endnotes found at the end of the presentation.

2013 fourth quarter and full-year overview

4

Fourth Quarter 2013

• Highest gold production quarter of 2013

• Adjusted net cash generated from

operations(1) – $93 million

Full-year 2013

• Lowest annual total cash costs(2) in company

history

• Adjusted net cash generated from

operations(1) – $249 million

• Adjusted earnings per share(3) – $0.13/share

• Completed Rainy River acquisition

2013 – Lowest

cash costs in

company’s history

1. Refer to Endnote on adjusted net cash generated from operations under the heading “Non-GAAP Measures”.

2. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”.

3. Refer to Endnote on adjusted net earnings under the heading “Non-GAAP Measures”.

Lowest costs in company’s history

5

FOURTH QUARTER AND FULL YEAR 2013

• Fourth quarter was the

highest production quarter

of 2013

• Met full year production

and cost outlook

• 2013 lowest total cash

costs(1) in New Gold’s

history

• Fourth quarter and full year

total cash costs(1) and all-in

sustaining costs(2) further

establish company’s low

cost profile


2. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”.

107

398

Q4'13 FY 2013

$316$377

Q4'13 FY 2013

$883$899

Q4'13 FY 2013

GOLD PRODUCTION (Koz)

TOTAL CASH COSTS(1) ($/oz)

ALL-IN SUSTAINING COSTS(2) ($/oz)

Consolidated financial summary

6

Q4’2013 Q4’2012 2013 2012

Revenue ($ million) $198.4 $250.9 $779.7 $791.3

Operating margin(1) ($ million) $76.7 $145.7 $344.2 $447.0

Net earnings ($ million) ($254.7) $123.9 ($191.2) $199.0

Net earnings per share ($/share) ($0.51) $0.26 ($0.39) $0.43

Adjusted net earnings(2) ($ million) $16.7 $49.7 $61.3 $183.5

Adjusted net earnings per share(2) ($/share) $0.04 $0.11 $0.13 $0.40

Net cash generated from operations ($ million) $99.7 $106.2 $171.9 $235.8

Adjusted net cash generated from operations(3) ($ million) $93.2 $106.2 $248.9 $235.8

1. Refer to Endnote on operating margin under the heading “Non-GAAP Measures”.

2. Refer to Endnote on adjusted net earnings under the heading “Non-GAAP Measures”.

3. Refer to Endnote on adjusted net cash generated from operations under the heading “Non-GAAP Measures”.

• Year-end cash and cash equivalents of $414 million

Significant increase in gold reserves per share

71. For a detailed breakdown of Mineral Resources and Reserves by category, refer to February 6, 2014 news release. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Mineral Reserves and

Mineral Resources” and “Technical Information”. Measured and Indicated Resources are inclusive of Reserves.

7.8

18.5

YE 2012 YE 2013

GOLD RESERVES(1) (Moz)

21.4

27.5

YE 2012 YE 2013

GOLD M&I RESOURCES(1) (Moz)

+127%

per share

+22%

per share

• Consolidated gold reserves

increased by 10.7 million

ounces during 2013

• Operating mines

• New Afton – updated

resource modelling

methodology

• Peak Mines – portion of

2013 depletion replaced

with higher copper grade

tonnes

• Cerro San Pedro –

removed 7 million tonnes

of marginal ore

• Development pipeline

• Blackwater added to

reserves plus accretive

Rainy River acquisition

2013 ACTUAL

398 Koz

2014 GUIDANCE

8

2014 consolidated guidance

1. Gold sales expected to be in the same range as production.

2. Refer to Endnote on total cash costs under the heading “Non-GAAP Measures”. All total cash cost estimates (excluding historical amounts) in this presentation assume commodity price assumptions of: Gold - $1,300 per ounce, Silver - $20.00 per

ounce, Copper - $3.25 per pound, and CDN/USD - $1.11, AUD/USD - $1.14, MXN/USD - $13.00.

3. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. All all-in sustaining cost estimates (excluding historical amounts) in this presentation assume commodity price assumptions of: Gold - $1,300 per ounce,

Silver - $20.00 per ounce, Copper - $3.25 per pound, and CDN/USD - $1.11, AUD/USD - $1.14, MXN/USD - $13.00.

380 –

420 Koz

$377/oz$320 –

$340/oz

$899/oz$815 –

$835/oz

Gold production(1)

Total cash costs(2)

All-in sustaining costs(3)

• Gold production to

increase at New Afton

offset by lower production

forecast at Cerro San

Pedro

• Copper production to

increase by approximately

12 percent

• Depreciation of Canadian

and Australian dollars

benefits New Gold costs

• Total cash costs(2) and

all-in sustaining costs(3)

well below industry

average

C-Zone M&I Resource(2)

New Afton – A special asset

9

87

102-112

Gold

(Koz)

72

78-84

Copper

(Mlbs)

2013 2014E

2013 2014E

NEW AFTON

Future UpsideNear-Term Upside

Jurisdiction Current Production

British Columbia,

Canada

#2Country

Ranking(1)

1. Rankings based on 25 countries evaluated in 2013 Behre Dolbear Report – 2013 Ranking of Countries for Mining Investment: “Where Not to Invest”.

2. For a detailed breakdown of Mineral Resources and Reserves by category, refer to February 6, 2014 news release. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral

Resources” and “Technical Information”.

2015 to

benefit

further

from mill

expansion

Mill Expansion - $45mm

Throughput:

Recoveries:

Return:

Payback:

12,500 14,000

85-86% 88-89%

+50%

<2 years

GOLD 0.83 g/t 0.7Moz

COPPER 0.91% 0.5Blbs

26 Million Tonnes

Development projects overview

Jurisdiction Ontario, Canada British Columbia, Canada Chile

Significant Gold

Reserve(1) 3.8 Moz 8.2 Moz 2.7 Moz

Significant Gold M&I

Resource Base(1) 6.2 Moz 9.5 Moz 3.0 Moz

Robust Production/

Low Cash Costs(2)(3)

~325 Koz at $613/oz

total cash costs

~485 Koz at $555/oz

total cash costs

~90 Koz Au/85 Mlbs Cu at

~($700)/oz total cash costs

10

1. For a detailed breakdown of Mineral Resources and Reserves by category, refer to February 6, 2014 news release. Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of Mineral Reserves and Mineral

Resources” and “Technical Information”.


3. Based on first nine years for Rainy River and Blackwater and life-of-mine averages for El Morro as outlined in the feasibility studies for the projects.

Three

world-class

projects

Rainy River Blackwater El Morro (30%)

Priority Project

$0

$250

$500

$750

$1,000

0

100

200

300

400

2017 2018 2019 2020 2021

Cash

Co

sts

($/o

z)

Go

ld P

rod

uc

tio

n (

Ko

z)

Gold production Total cash costs All-in sustaining costs

11

• Located in Northwestern Ontario

• Project site easily accessible

• Power tie-in 17 kilometres from site

• Development capital of $885 million inclusive

of $70 million contingency (at $1.05

CDN/USD)

• ~$840 million at $1.11 CDN/USD

Rainy River – Project overview

Rainy River Economics

Feasibility Study

Base CaseSpot Case

Gold Price ($/oz) 1,300 1,330

US$/C$ exchange 0.95 0.90

5% NPV (Pre-tax) ($mm) 438 646

IRR (Pre-tax) (%) 13.1 17.0

Payback (Pre-tax) (years) 5.4 4.4



(1) (2) Mill head grade (g/t)

1.44 1.48 1.45 1.43 1.38

PRODUCTION, CASH COSTS AND GRADE PROFILE – FIRST FIVE YEARS

+300Koz per year

12

Organic pipeline

• Rainy River development (2015/2016)

• New Afton expansion (mid-2015)

• Mesquite return to run rate (2015+)

• CSP to residual leaching (2016)

Existing low cost production base to be further enhanced by our

lower cost development projects(1)

• Sequence Blackwater development

• El Morro advanced

2014(2) 2017(3) Future Potential(4)

GO

LD

PR

OD

UC

TIO

N

1. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”. Rainy River and Blackwater life-of-mine all-in sustaining costs are estimated to be $736/oz and $685/oz based on their respective Feasibility Studies.

2. Based on mid-point of 2014 guidance.

3. Based on expected annual production from current operations, including positive production impact of New Afton’s mill expansion targeted for mid-2015, Mesquite’s mine plan moving into grades more in line with reserve grade, which is partially offset by

Cerro San Pedro ceasing active mining and moving into residual leaching, and includes the first year of full production from Rainy River.

4. Based on ~325Koz annual production from Rainy River, ~485Koz annual production from Blackwater and ~90Koz annual production from El Morro as outlined in their Feasibility Studies for the projects and production contribution from New Afton,

Mesquite and the Peak Mines and is dependent on the timely development of Blackwater and El Morro.

Portfolio of assets

in top-ratedjurisdictions

Invested and

experienced team

Amonglowest-cost

producers with established track record

Peer-leading growth pipeline

A history of value creation

New Gold investment thesis

13

18.5 Moz gold

reserves

~$90 million

investment by

Board &

Management

Targeting

~$825/oz all-in

sustaining

costs(1)

~900 Koz annual

production

potential from

growth projects

+230% increase

in share price

since March 2009


Establishing the leading

intermediate gold company

Endnotes

14

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 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 Report are

Canadian mining terms as defined in the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards for Mineral Resources and Mineral Reserves adopted by CIM Council on

November 27, 2010 and incorporated by reference in National Instrument 43-101 (“NI 43-101”). While the terms “Mineral Resource”, “Measured Mineral Resource”, “Indicated Mineral Resource” and

“Inferred Mineral Resource” are recognized and required by Canadian securities regulations, they are not defined terms under standards of the United States Securities and Exchange Commission. As such,

certain information contained in this Report 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. Under Canadian rules, estimates of Inferred Mineral Resources may not form

the basis of feasibility or pre-feasibility studies. It cannot be assumed that all or any part of an “Inferred Mineral Resource” will ever be upgraded to a higher confidence category. Readers are cautioned not

to assume that all or any part of an “Inferred Mineral Resource” exists or is economically or legally mineable.

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 estimation is made. Readers are cautioned not to assume that all or any part of the Measured or Indicated Mineral Resources that are not Mineral Reserves will ever be converted

into Mineral Reserves. 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.

TECHNICAL INFORMATION

The scientific and technical information in this presentation has been reviewed and approved by Mark A. Petersen, Vice President, Exploration of New Gold. Mr. Petersen is an AIPG Certified Professional

Geologist and a “qualified person” under National Instrument 43-101. For additional information with respect to our Mineral Resource and Reserve estimates and the Feasibility Studies discussed herein,

refer to our news release dated February 6, 2014, the Rainy River Technical Report, the Blackwater Technical Report and our other technical reports available at www.sedar.com.

Endnotes continued

NON-GAAP MEASURES

(1) TOTAL CASH COSTS “Total cash costs” per ounce figures are non-GAAP 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 ability to generate liquidity through operating cash flow and that 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, and realized gains and losses on fuel contracts, but are exclusive of amortization, reclamation, capital and exploration costs and net of by-product sales. Total cash costs are then divided by ounces of gold sold to arrive at a per ounce figure. Co-product cash costs remove the impact of other metal sales that are produced as a by-product of gold production and apportion the cash costs to each metal produced on a percentage of revenue basis, and subsequently divides the amount by the total ounces of gold or silver or pounds of copper sold, as the case may be, to arrive at per ounce or per pound figures. Unless otherwise indicated, all total cash cost information in this presentation is net of by-product sales. These measures, along with sales, are 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 financial measure. Total cash costs and co-product cash costs presented do not have a standardized meaning under GAAP 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 GAAP and is not necessarily indicative of cash flow from operations under GAAP or operating costs presented under GAAP. Further details regarding total cash costs and a reconciliation to the nearest GAAP measures are provided in our MD&A’s accompanying our financial statements filed from time to time on www.sedar.com.

(2) ADJUSTED NET CASH GENERATED FROM OPERATIONS“Adjusted net cash generated from operations” and “Adjusted net cash generated from operations per share” are non-GAAP financial measures. Net cash generated from operations has been adjusted for one-time expenses related to the company’s acquisition of Rainy River in the third quarter and a one-time charge incurred in the second quarter related to the settlement of the company’s legacy gold hedge position. Because of the non-recurring nature of items removed, the company believes the presentation of adjusted net cash generated from operations enables investors and analysts to better understand the underlying operating performance of our core mining business and provides an additional manner to compare performance between periods without the impact of non-recurring items. Adjusted net cash generated from operations and adjusted net cash generated from operations per share are intended to provide additional information and are non-GAAP financial measures. They do not have any standardized meaning under GAAP and may not be comparable to similar measures presented by other companies. They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP and are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP.

(3) ADJUSTED NET EARNINGS“Adjusted net earnings” and “adjusted net earnings per share” are non-GAAP financial measures. Net earnings have been adjusted and tax affected for the group of costs in “Other gains and losses” on the condensed consolidated income statement. The adjusted entries are also impacted for tax to the extent that the underlying entries are impacted for tax in the unadjusted net earnings from continuing operations. The company uses this measure for its own internal purposes and believes the presentation of adjusted net earnings enables investors and analysts to better understand the underlying operating performance of our core mining business through the eyes of management. Management periodically evaluates the components of adjusted net earnings based on an internal assessment of performance measures that are useful for evaluating the operating performance of our business and a review of the non-GAAP measures used by mining industry analysts and other mining companies. Adjusted net earnings and adjusted net earnings per share are intended to provide additional information and is a non-GAAP financial measure. They do not have any standardized meaning under GAAP and may not be comparable to similar measures presented by other companies. They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP and are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP.

(4) ALL-IN SUSTAINING COSTSConsistent with guidance announced in 2013 by the World Gold Council, an association of various gold mining companies from around the world of which New Gold is a member, 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 and environmental reclamation costs, all divided by the ounces of gold 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 will assist 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 GAAP 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 GAAP and is not necessarily indicative of cash flow from operations under GAAP or operating costs presented under GAAP. Further details regarding all-in sustaining costs and a reconciliation to the nearest GAAP measures are provided in our MD&A’s accompanying our financial statements filed from time to time on www.sedar.com.

(5) OPERATING MARGIN“Operating margin” is a non-GAAP financial measure with no standard meaning under GAAP, which management uses to further evaluate the company’s results of operations in each reporting period. Operating margin is calculated as revenue less operating expenses and therefore does not include depreciation and depletion. Operating margin is intended to provide additional information and is a non-GAAP financial measure. It does not have any standardized meaning under GAAP and may not be comparable to similar measures presented by other companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP and is not necessarily indicative of operating profit or cash flow from operations as determined under GAAP.

15

Contact information

16

Investor Relations

Hannes Portmann

Vice President, Corporate Development

416-324-6014

[email protected]