BUILDING VALUE 2015 ANNUAL REPORT New Gold 2015 Annual Report 2015 NEW GOLD ANNUAL REPORT 3 TOTAL CATOSHTA COLTO CASTSTASHL PER COCA STSSH CO PERSTS PER TOTAL CATOSHTA COLTO CASTSTASHL PER COCA STSSH CO PERSTS PER OUNCE OFOUNC GOLDEOUNC OF GOE OFLD GOLD OUNCE OFOUNC GOLDEOUNC OF GOE OFLD GOLD 1,000 1,000 1,000 1,000 1,000 1,000 899 899 899 779 809779 809779 809 750 750 750 750 750 750 500 500 443500 443 443 500 500 500 377 377 377 312 312 312 250 250 250 250 250 250 0 0 0 0 0 0 2013 2014 201320 15 20 201413 20201514 2015 2013 2014 201320 15 20 201413 20201514 2015 GOLD GOLD GOLD COPPER COPPERCOPPER SILVER SILVERSILVER New Gold Inc. is an intermediatePRODUC gold PRODUCTION GOLDPRODUCTION TION PRODUCPRODUCCOPPERTION PRODUC TION TION PRODUCSILVER PRODUCTION PRODUCTION TION producer with operating mines(t housandsin of ounce(thousandss) PRODUCTION(tofhousands ounces) of ounces) PRODUCTION PRODUCTION Canada, the United States, Australia (thousands of ounces) (millions of pounds) (millions of ounces) and Mexico, development projects500 in500 500 125 125 125 3 3 3 Canada as well as a 4% gold stream on 102 100102 100102 100 the El Morro project in Chile. For the 100 100 100 450 450 450 full year ended December 31, 2015, 436 436 436 85 85 85 2 2 1.92 1.9 1.9 the New Afton Mine in Canada, the 75 75 75 1.6 1.6 1.6 Mesquite Mine in the United400 States,398 400 398 400 398 1.4 1.4 1.4 380 380 380 the Peak Mines in Australia and the 50 50 50 Cerro San Pedro Mine in Mexico 1 1 1 combined to produce 435,718350 gold 350 350 25 25 25 ounces, 100.0 million pounds of copper and 1.9 million silver ounces. 300 300 300 0 0 0 0 0 0 2013 2014 201320 15 20 201413 20201514 2015 2013 2014 201320 15 20 201413 20201514 2015 2013 2014 201320 15 20 201413 20201514 2015 In 2015, New Gold’s record full-year gold production of 435,718 ounces exceeded the high end of the guidance range of 390,000 to 430,000 ounces and delivered a 15 percent increase in production over 2014. AVERAGE AVERAGEAVERAGE REALIZEDREALIZED PRICEREALIZED PRICE PRICECASH FLOWCASH FLOWCASH FLOW ($/ounce) ($/ounce) ($/ounce) 20152,000 HIGHLIGHTS2,000 2,000 400 400 400 $336 $336 $336 24% 24% 24% (1) 310 310 310 TABLE OF CONTENTSTOTAL CASH COSTSTOTOTALTA PERL CA CASHSH CO COSTSSTS PER TOALL-INTAL CA SUSTAININGSH COSTSTOTA PER L CA SHGOLD COSTS PRODUCTION PER 1,337 1,337 1,($33 per7 gold ounce sold) 269 269265(1) 269265 265 OUNCE OF1,25 GO6 LDOUNC 1,256 E1, OF256 GOLD 259 OUNC259COSTS263 E 259OF263 GOLDOUNC263 E OF BYGO OPERATINGLD MINE FINANCIAL HIGHLIGHTS IFC ($ per gold ounce sold) 1,149 1,149 1,149 24% 435,71824% 435,71824 % 435,718 LETTER TO SHAREHOLDERS 2 $595 MILLION$595 MILLION $595 MILLION 1,0001,000 1,000 1,000 200 200 1,000 200 1,000 OUNCESOUNCESOUNCES 172 172 172 % % % LETTER FROM OUR CFO 6 899 899 31 31 31 809 809 % % % LETTER FROM OUR COO 7 779 779 21 21 % 21 $ $ $ 750 750 750 750 24 75 75 75 SCORECARD AND TARGETS 8 $184 $184 $184 CORPORATE GOVERNANCE 9 0 0 0 0 0 0 % 500 500 500 500 New Afto24n New Af435,718toMnNeesquiw Afteton Mesquite Mesquite Cash and cashCash equivalents and Cashcash equivalentsand cash equivalents OPERATIONS 201013 2014443 201320 15 20 201413 20201514 2044315 2013 20 142013 20152020 14 13 20 1415 2015 Peak Mines PeakOUNCES MinesCerroPeak MinesSan PedrCerroo SanCerro Pedro San PedroUndrawn creditUndrawn facility Undrawncredit(2) facility credit(2) facility(2) 377 377 % PROJECTS 14312 312 Cash generatedCash from generated operationCash generated froms operation from soperations 31 Second instalmentSecond of instalment streamSecond deposit instalment of stream ofdeposit stream deposit 250 250 250 250 CORPORATE RESPONSIBILITY 18 Adusted net Adustedcash from netAdusted cash from net cash from % operations beforeoperations workingoperations before working before working 21 RESERVES AND RESOURCES 20 capital changescapital(1) changescapital(1 )changes(1) FINANCIAL REVIEW 0 26 0 0 0 2013 2014 2015 2013 2014 2015 2013 2014 2015 2013 2014 2015 Mesquite CORPORATE INFORMATION IBC New Afton Peak Mines Cerro San Pedro On the cover: Grant Goddard, New Gold’s production costs remained competitive compared to the broader gold mining space as New Gold had total (1) (1) General Manager of New Gold’s Rainy cash costs of $443 per gold ounce sold and all-in sustaining costs of $809 per gold ounce sold in 2015. We believe New Gold will continue to establish itself as one of the lowest-cost producers in the industry. River project, as cladding progresses on the grinding building. As ofGOLD first Note:GOLD All dollar figures are inCOPPER U.S. dollars, unless otherwiseCOPPER noted. SILVER SILVER quarter of 2016, constructionPRODUC at Rainy TION PRODUCTION PRODUCTION PRODUCTION PRODUCTION PRODUCTION River is 30 percent complete. (thousands of ounces) (thousands of ounces) 500 500 125 125 3 3 This Annual Report contains102 information regarding102 New Gold’s 2015 guidance and 100 100 100 100 450 450 other forward-looking information. Forward-looking information is based on various 436 436 85 85 assumptions and is subject to risk. For further information,2 please refer1.9 to the2 inside 1.9 back cover of this75 Annual Report. 75 1.6 1.6 400 398 400 398 1.4 1.4 380 380 50 50 1 1 350 350 25 25 300 300 0 0 0 0 2013 2014 2015 2013 2014 2015 2013 2014 2015 2013 2014 2015 2013 2014 2015 2013 2014 2015 AVERAGE AVERAGE REALIZED PRICE REALIZED PRICECASH FLOW CASH FLOW ($/ounce) ($/ounce) 2,000 2,000 400 400 $336 $336 24% 24% 310 310 1,337 1,337 269 265 269 265 1,256 1,256 259 263 259 263 1,149 1,149 24% 24% 435,718 435,718 $595 MILLION $595 MILLION 1,000 1,000 200 200 OUNCES OUNCES 172 172 31% 31% % % 21 21 $75 $75 $184 $184 0 0 0 0 New Afton MesquiNewte Afton Mesquite Cash and cash equivalentsCash and cash equivalents 2013 2014 2015 2013 2014 2015 2013 20 14 2015 2013 20 14 2015 Peak Mines CerroPeak San Mines Pedro Cerro San PedrUndrawno credit facility(2) Undrawn credit facility(2) Cash generated from operationCash generateds from operations Second instalment of streamSecond deposit instalment of stream deposit Adusted net cash from Adusted net cash from operations before workingoperations before working capital changes(1) capital changes(1) TOTAL CATOTASHL CO CASTSSH PERCOSTS PER TOTAL CATOTASHL CO CASTSSH PERCOSTS PER OUNCEOUNC OF GOELD OF GOLD OUNCEOUNC OF GOELD OF GOLD 1,000 1,000 1,000 1,000 899 899 809 779 779 809 750 750 750 750 500 500 443 443 500 500 377 377 312 312 250 250 250 250 0 0 0 0 2013 201420 1320 1520 14 2015 2013 201420 1320 1520 14 2015 GOLD GOLD COPPER COPPER SILVER SILVER PRODUCPRODUCTION TION PRODUCPRODUCTION TION PRODUCPRODUCTION TION (thousands of(t ouncehousandss) of ounces) 500 500 125 125 3 3 102 100102 100 100 100 450 450 436 436 85 85 2 2 1.9 1.9 75 75 1.6 1.6 400 398 400 398 1.4 1.4 380 380 50 50 1 1 350 350 25 25 300 300 0 0 0 0 2013 201420 1320 1520 14 2015 2013 201420 1320 1520 14 2015 2013 201420 1320 1520 14 2015 (in millions of U.S. dollars, except where noted) AVERAGE AVERAGE New Gold maintains a strong REALIZEDAVERAGEREALIZED PRICE REALIZEDPRICE CASHOPERATING FLOWCASH FLOW (1) (1) liquidity position. The company’s ($/ounce) GOLD($/ounce) PRICE CASH FLOW December 31, 2015 cash balance 2,000 400 $ $ of $336 million together with the $336 2,000 400 336 336 receivable for Royal Gold’s 24% 24% second instalment under the 310 310 1,337 1,337 269 269265 265 stream agreement of $75 million 1,256 1,256 259 259263 263 (the receipt of which is subject to 1,149 1,149 24% 24% 435,718435,718 $595 MILLION$595 MILLION the satisfaction of certain $595 MILLION 1,000 1,000 200 200 OUNCESOUNCES 172 172 31% % conditions) and the $184 million 31 available for drawdown under % % 21 21 $ $ $ 75 75 New Gold’s revolving credit 75 $ $ 184 $184 facility provide approximately 184 $595 million of liquidity in 0 0 0 0 Cash and cash equivalents New Afton New AftonMesquite Mesquite Cash and cashCash equivalents and cash equivalents 2013 2014 2015 2013 20 14 2015 addition to the net cash the 2013 2014 2015 2013 20 14 2015 (2) (2) Undrawn credit facility(2) Peak MinesPeak MinesCerro San PedrCerroo San Pedro Undrawn creditUndrawn facility credit facility company’s operating mines are Second instalment of stream deposit Cash generatedCash fromgenerated operation froms operations Second instalmentSecond ofinstalment stream deposit of stream deposit expecting to generate. Adusted netAdusted cash from net cash from operations operationsbefore working before working capital changescapital(1) changes(1) 2015 2014 2013 OPERATING INFORMATION Gold production (ounces) 435,718 380,136 397,6 8 8 Gold sales (ounces) 428,852 371,179 391,823 Average realized price ($/ounce)(1) 1,149 1,256 1,337 Total cash costs per gold ounce sold ($/ounce)(1) 443 312 377 All-in sustaining costs per gold ounce sold ($/ounce)(1) 809 779 899 FINANCIAL INFORMATION Revenues 712.9 726.0 779.7 Net loss (201.4) (47 7.1) (191.2) Adjusted net (loss) earnings(1) (10.9) 45.2 61.3 Cash generated from operations 262.6 268.8 171.9 Adjusted cash generated from operations before changes in non-cash operating working capital(1) 265.0 310.4 258.6 Cash and cash equivalents 335.5 370.5 414.4 Capital expenditures (sustaining capital)(1) 121.5 129.8 159.5 Capital expenditures (growth capital) 268.0 149.5 129.8 SHARE DATA Loss per basic share ($) (0.40) (0.95) (0.39) Adjusted net (loss) earnings per basic share(1) ($) (0.02) 0.09 0.13 (1) The company uses certain non- GAAP financial performance measures throughout this Annual Report.