Blackwater Project Update Investor/Analyst Breakfast. September 20, 2012

Transcription

1 Blackwater Project Update Investor/Analyst Breakfast September 20, 2012

2 Cautionary statement All monetary 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 may be deemed "forward looking". All statements in this presentation, other than statements of historical fact, that 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. All such forward-looking statements 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. 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; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States, Australia, Mexico and Chile; price volatility in the spot and forward markets for commodities; impact of any hedging activities, including margin limits and margin calls; discrepancies between actual and estimated production, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in international, 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 that New Gold operates, including, but not limited to Mexico where the Cerro San Pedro mine has a history of ongoing legal challenges related to our EIS and Chile where the courts have temporarily suspended the approval of the environmental permit for the El Morro project; 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 the company is or may become a party to; diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or reclamation activities; 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. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental 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 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.. Blackwater PEA Investor/Analyst Breakfast September

3 Cautionary statement (cont d) CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES Information concerning the properties and operations discussed in this presentation 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 presentation are Canadian mining terms as defined in accordance with NI under guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council on December 11, While the terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral Resource" are recognized and required by Canadian regulations, they are not defined terms under standards of the United States Securities and Exchange Commission. 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 calculation is made. As such, certain information contained in this presentation 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. 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. Readers are cautioned not to assume that all or any part of Measured or Indicated 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. 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 Certain of the scientific and technical information in this presentation is derived from the NI compliant technical report entitled Technical Report, Blackwater Gold Project, Omineca Mining Division, British Columbia, Canada dated March 23, 2012, which is filed on SEDAR. Another NI compliant technical report supporting the PEA and updated mineral resource estimate ( PEA Report ) will be filed on SEDAR within 45 days. The following qualified persons, as that term is defined in NI , have prepared or supervised the preparation of technical information relating to the PEA Report: Mark Petersen, C.P.G. (New Gold Inc.) Ronald G. Simpson, P Geo (GeoSim Services Inc.) Herbert E. Welhener, MMSA QPM (Independent Mining Consultants Inc.) Bruno Borntraeger, P. Eng (Knight Piesold Ltd.) Ignacy (Tony) Lipiec, P. Eng (AMEC) Ramon Mendoza Reyes, P. Eng (AMEC) Mark Petersen, C.P.G., is also responsible for approving the technical information in this presentation that is not related to the PEA Report. Other than Mark Petersen, who is an employee of New Gold, each of the qualified persons listed above are independent of New Gold. Blackwater PEA Investor/Analyst Breakfast September

4 Cautionary statement (cont d) (1) TOTAL CASH COSTS Total cash costs per ounce figures are calculated in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North American gold producers. The Gold Institute ceased operations in 2002, but the standard is widely accepted as the standard of reporting cash costs of production in North America. 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. Total cash costs includes mine site operating costs such as mining, processing, administration, royalties and production taxes, but is exclusive of amortization, reclamation, capital and exploration costs. Total cash costs is reduced by any by-product revenue and is then divided by ounces sold to arrive at the total by-product cash costs of sales. The measure, along with sales, is 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-ifrs measure. Total cash costs presented does not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and is not necessarily indicative of operating costs presented under IFRS. (2) PEA ADDITIONAL CAUTIONARY NOTE This note regarding the preliminary economic assessment (PEA) is in addition to cautionary language already included within the presentation as required under NI The PEA is preliminary in nature and includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA based on these mineral resources will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Blackwater PEA Investor/Analyst Breakfast September

5 Preliminary Economic Assessment Cautionary Language The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA based on these Mineral Resources will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Blackwater PEA Investor/Analyst Breakfast September

6 Discussion topics Introduction Randall Oliphant PEA Review Paul Hosford Next Steps Bob Gallagher Continued Exploration Mark Petersen Conclusion Randall Oliphant Blackwater PEA Investor/Analyst Breakfast September

7 Introduction Blackwater PEA Investor/Analyst Breakfast September

8 Blackwater overview BLACKWATER ENHANCES NEW GOLD S PORTFOLIO IN MULTIPLE WAYS Asset of world-class scale Robust project economics Excellent jurisdiction Excitement of new discoveries/continued exploration upside Potential to increase value from exploration through production Blackwater PEA Investor/Analyst Breakfast September

9 Experienced project team Chief Executive Officer Robert Gallagher Chief Financial Officer Brian Penny VP Operations Ernie Mast Over 32 years in the mining industry in leadership roles with Placer Dome, Newmont Mining and New Gold Over 23 years of experience in mine finance and accounting in leadership roles with Kinross, Western Goldfields and Silver Bear Resources Over 25 years in the mining industry in leadership roles with Inmet, Xstrata, Noranda and Falconbridge VP Exploration Mark Petersen 28 years in minerals exploration in roles ranging from corporate management, project evaluations and acquisitions, generative exploration and project management Project Director Peter Marshall Feasibility Study Director Paul Hosford Environmental Director Tim Bekhuys Over 30 years in the mining industry primarily with Placer Dome and Terrane Metals Civil engineer with experience in feasibility management and project development 30 years mining industry experience in operations and engineering, primarily with Barrick, Hatch and Terrane Metals Metallurgical engineer with experience in project management of feasibility studies and EPCM Led successful permitting and environmental construction aspects of Mt. Milligan Copper- Gold Mine in British Columbia Experienced in community and First Nations engagement Blackwater PEA Investor/Analyst Breakfast September

10 Preliminary Economic Assessment ( PEA ) in review (1) Gold Price (US$/oz) $1,275 $1,600 $1,775 $1,800 Silver Price (US$/oz) $22.50 $30.00 $34.50 $35.00 US$/CDN$ Foreign Exchange % NPV ($ billions) (2015) Pre-tax NPV After-tax NPV IRR (%) Pre-tax IRR After-tax IRR Payback period (years) Base Case Spot Case Pre-tax payback period After-tax payback Period Highlights Initial gold production targeted for 2017 First five years average annual gold production of 569,000 ounces at total cash costs (1) per ounce sold, net of by product sales, of $467 per ounce Life-of-mine gold and silver production, inclusive of low grade stockpile, of 6.2 and 18.6 million ounces from the Indicated category and 1.8 and 13.5 million ounces from the Inferred category, respectively $1.00 per ounce change in silver price assumption equates to ~$4 per ounce change in total cash costs (1) Blackwater expected to generate solid economic returns in current capital cost environment, even when using a long-term gold price assumption of US$1,275 per ounce Note: 1. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note. Blackwater PEA Investor/Analyst Breakfast September

11 Production (thousand ounces) Production and total cash costs (1) 700 Gold production Base Case cash costs $1,000 $ $ $ $600 $500 $400 $300 Total cash costs ($/oz) 100 $200 $ $0 Average First 5 Years 569,000 ounces gold at $467 per ounce (1) Average First 15 Years 507,000 ounces gold at $536 per ounce (1) Note: 1. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note. Blackwater PEA Investor/Analyst Breakfast September

12 Development capital ($ billions) Perspectives on capital costs Blackwater development capital cost of $1.8 billion inclusive of 24%, or $346 million, contingency After-tax IRR (%) (1)(2) Gold price ($/oz) $227 per recoverable ounce $1,275 $1,600 $1,775 $1,800 Costed in mid-2012 capital environment assuming parity foreign exchange rate $ % 27.5% 31.8% 32.5% Capital intensity may be abating $ % 25.4% 29.6% 30.2% Large diversified companies, accounting for ~55% of global capital, delaying certain projects $ % 23.6% 27.6% 28.2% Oil sands project expansions also being delayed $ % 22.0% 25.8% 26.4% Each $100 million change in development capital equates to a ~$100 million change in NPV New Gold could benefit from announced delays in capital projects of major companies Note: 1. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note. 2. IRR calculated to beginning of construction period in Blackwater PEA Investor/Analyst Breakfast September

13 Total acquisition cost ( TAC ) Acquisition costs of $602 (1) million based on: Richfield - $470 million Silver Quest - $114 million Geo Minerals - $18 million Total acquisition cost of $912 per ounce below recent industry comparable transactions Further potential to decrease break-even gold price with continued resource expansion Total Acquisition Cost per Ounce Total ($mm) $ Per Ounce (2) Total Acquisition costs to date $602 $75 Development capital $1,814 $227 Life-of-mine sustaining capital $537 $67 Life-of-mine average cash costs ($/oz) (3) $543 Total acquisition cost ($/oz) $912 Spot gold price ($/oz) $1,775 (Discount)/Premium to spot gold (49%) Break-even gold price $912 Notes: 1. Per 2011 Annual financial statements. 2. Per ounce calculations based on 6.2 million ounces from the Indicated category and 1.8 million ounces from the Inferred category. 3. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note. Blackwater PEA Investor/Analyst Breakfast September

14 PEA Review Blackwater PEA Investor/Analyst Breakfast September

15 Blackwater Project South Central British Columbia British Columbia, Canada Blackwater New Afton Blackwater PEA Investor/Analyst Breakfast September

16 Blackwater Project South Central British Columbia Power Line Railway Power Line Blackwater PEA Investor/Analyst Breakfast September

17 Blackwater South Central British Columbia ~112km to Vanderhoof Capoose Resource Blackwater Project ~160km to Prince George 50km Current resource grid 80km Blackwater PEA Investor/Analyst Breakfast September

18 Blackwater Project South Central British Columbia Summer 2012 Blackwater PEA Investor/Analyst Breakfast September

19 Blackwater Project overview Start of production in 2017 Conventional truck and shovel open pit mine with 60,000 tonnes per day processing plant Life-of-mine strip ratio of 2.36 to 1 Low grade stockpiling strategy Simple, conventional flowsheet using whole ore leach process Life-of-mine gold and silver recoveries of 87% and 53%, respectively Conventional waste rock and Tailings Storage Facility Power supply from the hydroelectric power grid, via 133 kilometre transmission line Minimal off-site infrastructure required Good existing access road; water supply within 15 kilometres Low environmental risk and facility designed for closure Blackwater PEA Investor/Analyst Breakfast September

20 Site overview Blackwater PEA Investor/Analyst Breakfast September

21 PEA resource summary The deposit contains an Indicated mineral resource of 267 Mt at 0.88 g/t Au and 4.3 g/t Ag and an Inferred mineral resource of 121 Mt at 0.69 g/t Au and 7.3 g/t Ag at a base case lower cut-off of 0.30 gram per tonne gold equivalent Mineral estimate is CIM 2010 compliant and prepared under Canadian National Instrument Based upon geologic block model that incorporated over 147,282 individual assays from 168,709 metres of diamond drill core in 449 drill holes Average drill hole spacing of approximately 50 metres is sufficient to support mineral resource estimation up to the Indicated category Mineral resource includes drill data received through May 14, 2012 Blackwater Project PEA Mineral Resource Estimate Indicated Mineral Resource Inferred Mineral Resource AuEq Cut-off (g/t) Tonnes (Mt) Au (g/t) Ag (g/t) Au (Moz) Ag (Moz) AuEq Cut-off (g/t) Tonnes (Mt) Au (g/t) Ag (g/t) Au (Moz) Ag (Moz) Notes: 1. Mineral Resource Estimate has an effective date of July 27, 2012 and was prepared by Ronald G. Simpson, P Geo. 2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. 3. Mineral Resources are amenable to open pit mining methods as defined by a Lerchs-Grossmann optimized pit simulation. 4. The Lerchs-Grossmann optimized pit is based on assumptions that include US$/CDN$ parity foreign exchange rate, 83.6% Au recovery, 44.9% Ag recovery, $1.52/tonne mining cost, $1.90/tonne waste mining cost, $10.52/tonne process and G&A cost. No allowances have been made for mining losses and dilution. The average pit slope angle is assumed to be The base case gold equivalent (AuEq) cut-off (bolded) is greater than the conceptual marginal cut-off of 0.23 g/t. 6. AuEq = $24/oz Ag x 44.9% / $1,300/oz x 83.6%. 7. Gold analyses are performed by fire assay/aa finish methods and silver analyses are performed by Induction Coupled Plasmaspectrometry (ICP). Silver ICP analyses are not known with the same precision and do not have the same quality control support as gold fire assay analyses. 8. Rounding as required by reporting guidelines has been used, and totals may not sum. Blackwater PEA Investor/Analyst Breakfast September

22 PEA base case assumptions Gold price (US$/oz) $1,275 Silver price (US$/oz) $22.50 Foreign exchange rate CAD$1.00 = US$0.94 Diesel price ($/L) $0.98 Average electricity rate (kwh) C$0.044 Capital contingency 24% or $346 million NPV calculation Calculated to 2015 (construction start) PEA commodity prices represent a significant discount to current spot prices: Gold: ~$500 per ounce (~28%) below current gold price Silver: ~$12 per ounce (~35%) below current silver price Mineral resources have been constrained using a Lerchs-Grossman optimized pit using ordinary kriging Pit slope 40 degrees Mineral resource is grade shell contained estimate Resource samples were capped at 40 g/t gold and 150 g/t silver Mine production schedule incorporates an elevated cut-off grade strategy during the first five years to raise the mill feed grade Block model was created in Gemcom-Surpac Vision software using a block size with dimensions of 10m x 10m x 10m Blackwater PEA Investor/Analyst Breakfast September

23 Blackwater PEA costs - Capital Project Development Capital Costs Description Cost ($ million) Direct Costs Mining & Pre-production Development $208 On Site Infrastructure $181 Process $539 Tailing and Water Reclaim $74 Infrastructure (Power, Water, Road) $85 Total Direct Costs $1,087 Owner's and Indirect Costs Owner's Costs $54 EPCM $112 Other Indirects $215 Total Owner's and Indirect Costs $381 Subtotal $1,468 Contingency (24%) $346 Total Project $1,814 Project is located 112 kilometres southwest from Vanderhoof and has access to low cost hydroelectric power Development capital estimate of $1.8 billion is inclusive of a 24% or $346 million contingency Development capital estimated based on the current cost environment A parity foreign exchange rate was assumed and the capital estimate was held constant in the economic analysis Sustaining capital of $537 million, reclamation and closure costs of $95 million and $72 million in equipment salvage value Total development and sustaining capital estimated at $294 per recoverable gold ounce Blackwater PEA Investor/Analyst Breakfast September

24 Blackwater PEA costs - Operating Project Operating Costs Area Unit Cost (C$/t milled) $ per gold ounce produced Mining $6.21 $259 Processing $7.59 $317 General and Administrative $0.95 $40 Royalty (0.6%) $0.18 $8 Refining $0.23 $9 Silver by-product sales at $22.50 per ounce silver ($2.16) ($90) Total cash costs (1) net of by-product sales $13.01 $543 Total Cash Costs (1) Schedule Production Years $ per gold ounce produced Years 1 through 5 $467 Years 1 through 15 $536 Years 16 through 17 $678 Life-of-mine $543 4% 6% 9% 11% 17% Mining Costs 4% 4%2% 8% 6% 24% 1% 59% Processing Costs 44% Hauling Auxiliary Blasting G&A Drilling Loading General Maint. General Mine Reagents Grinding Media/liners Electricity Labour Maint materials Water Supply Blackwater s location near infrastructure, low stripping ratio, access to low cost power and silver by-product revenue expected to result in the Project having well below industry average cash costs Note: 1. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note. Blackwater PEA Investor/Analyst Breakfast September

25 Gold production (thousand ounces) Production and cash costs profile Life-of-mine Gold production 489koz Total cash costs - $543/oz 700 Years 1 through 5 Gold production 569koz Total cash costs - $467/oz Years 1 through 15 Gold production 507koz Total cash costs - $536/oz Years 16 through 17 Gold production 296koz Total cash costs - $678/oz $1,000 Gold production Base Case cash costs $ $500 Total Cash Costs ($/oz) 200 $250 (1) Note: 1. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note. Blackwater PEA Investor/Analyst Breakfast September

26 Operating cash flow PEA highlights (1) PEA Results Base Case Spot Case Gold Price (US$/oz) $1,275 $1,775 Silver Price (US$/oz) $22.50 $34.50 US$/CDN$ Foreign Exchange After-tax NPV(5%) ($ billions) $1.1 $2.8 After-tax IRR 14.0% 25.8% After-tax payback period (years) Operating cash flow ($ millions) $900 $750 $600 Base Case Spot Case Average spot case cash flow during first five years of ~$655 million $450 $300 $150 Cumulative spot case cash flow during first five years of ~$3.3 billion $ Note: 1. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note. Blackwater PEA Investor/Analyst Breakfast September

27 Areas of optimization Potential for expansion of the resource to the north and to depth Further geotechnical drilling to assess the possibility of steepening pit slopes Potential to reduce mining costs through mine plan optimization Optimizing process flowsheet Blackwater PEA Investor/Analyst Breakfast September

28 Next Steps Blackwater PEA Investor/Analyst Breakfast September

29 Environment and permitting The site has no significant environmental constraints Agreements are in place with key First Nations Preparations have started for environmental assessment and permitting approval process Environmental assessment approval anticipated for second half of 2014 Building on strong community and First Nations relations as demonstrated at New Afton Blackwater PEA Investor/Analyst Breakfast September

30 Project timeline Remains unchanged from mid-2011 Development activity First Nations & Public Consultation H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 Drilling Preliminary Economic Assessment Base Line Environmental Studies Project Description/Terms of Reference Environmental Assessment Reports Provincial Approval Federal Approval Feasibility Study Engineering Procurement Construction Production Target Reflects critical path in timeline Note: 1. Indicative timeline is dependent on continued exploration success, permit approvals and the determination that the deposit is economically viable. There is no assurance this timeline will be achieved nor that the deposit will ever reach the production stage. Blackwater PEA Investor/Analyst Breakfast September

31 Continued exploration Blackwater PEA Investor/Analyst Breakfast September

32 July 2012 Updated mineral resource Based on 449 core holes totaling 147,282 meters drilled from 2009 through May 14, 2012 ~30% step-out holes and ~70% infill holes Majority of holes drilled to 400 meter depth Mineralization open at depth in some areas System also remains open to north Drilled an additional 100,363 metres in 377 holes since mid-may cut-off AuEq Cut-off (g/t) Tonnes (Mt) Au (g/t) Blackwater Project PEA Mineral Resource Estimate Indicated Mineral Resource Ag (g/t) Au (Moz) Ag (Moz) AuEq Cut-off (g/t) Inferred Mineral Resource Tonnes (Mt) Notes: 1. Mineral Resource Estimate has an effective date of July 27, 2012 and was prepared by Ronald G. Simpson, P Geo. 2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. 3. Mineral Resources are amenable to open pit mining methods as defined by a Lerchs-Grossmann optimized pit simulation. 4. The Lerchs-Grossmann optimized pit is based on assumptions that include US$/CDN$ parity foreign exchange rate, 83.6% Au recovery, 44.9% Ag recovery, $1.52/tonne mining cost, $1.90/tonne waste mining cost, $10.52/tonne process and G&A cost. No allowances have been made for mining losses and dilution. The average pit slope angle is assumed to be The base case gold equivalent (AuEq) cut-off (bolded) is greater than the conceptual marginal cut-off of 0.23 g/t. 6. AuEq = $24/oz Ag x 44.9% / $1,300/oz x 83.6%. 7. Gold analyses are performed by fire assay/aa finish methods and silver analyses are performed by Induction Coupled Plasmaspectrometry (ICP). Silver ICP analyses are not known with the same precision and do not have the same quality control support as gold fire assay analyses. 8. Rounding as required by reporting guidelines has been used, and totals may not sum. Au (g/t) Ag (g/t) Au (Moz) Ag (Moz) Indicated Resource 267Mt at 0.88 g/t for 7.5 Moz Inferred Resource 121Mt at 0.69 g/t for 2.7 Moz Blackwater PEA Investor/Analyst Breakfast September

33 Blackwater PEA mineral resource Sxn 5 893,500N NW Silver Zone SW Breccia Pipe Sxn 375,000E Blackwater PEA Investor/Analyst Breakfast September

34 Blackwater exploration upside opportunities Section 5 893,500N Gold Section 375,000E NW Silver Zone SW Breccia Pipe Blackwater PEA Investor/Analyst Breakfast September

35 Blackwater exploration upside opportunities (cont d) Section 5 893,500N Silver Section 375,000E NW Silver Zone SW Breccia Pipe Blackwater PEA Investor/Analyst Breakfast September

36 Blackwater feasibility study drilling program NW Silver Zone SW Breccia Pipe Blackwater PEA Investor/Analyst Breakfast September

37 Blackwater land position Project Area September June to December Capoose Capoose property Blackwater property Blackwater Auro Property Blackwater PEA Investor/Analyst Breakfast September

38 2012 exploration program Delineate Blackwater resource to M&I level BW area Exploration / Condemnation drilling Capoose area Test potential to expand resource Reconnaissance mapping and sampling Planned on all properties Capoose Capoose property MYAB Area Blackwater property Blackwater Auro Property Blackwater PEA Investor/Analyst Breakfast September

39 2012 exploration/condemnation program 2012 Progress 58 holes totaling 23,639 metres YTD Program ~ 50% complete Favorable volcanics, alteration and mineralization being intercepted northwest of Blackwater Drilling northeast of Blackwater pending 2013 Program Complete remaining ~ 15,000 meters by end Q1 13 Follow up on areas of interest Freeze and/or modify project siting and infrastructure footprint by end Q3 13 Blackwater PEA Investor/Analyst Breakfast September

40 Capoose exploration 1,800m 1,600m 1,400m Assays pending 0.77 g/t Au, 7.2 g/t Ag 78m Assays pending 0.15 g/t Au, 24.4 g/t Ag 74m Explored potential to expand resource laterally and at depth Completed 22 holes totaling 10,894 metres Significant mineralization intercepted south and below known resource Known resource sits within larger footprint of favorable volcanic stratigraphy, alteration and mineralization extending kilometre north and south Capoose Resource GradeShell 1,800m 1,600m Sxn 5 905,700N Sxn 5 905,650N 0.78 g/t Au, 4.4 g/t Ag 80m 1,400m Assays pending 0.24 g/t Au, 21.5 g/t Ag 25 m Blackwater PEA Investor/Analyst Breakfast September

41 2012 property wide reconnaissance >1000 ppb Au ppb Au ppb Au ppb Au Gold-in-till sampling over ~ 750 km 2 area Soil geochem sampling over ~ 237 line-km Geologic reconnaissance mapping over 125 km 2 Capoose Blackwater Blackwater PEA Investor/Analyst Breakfast September

42 Conclusion Blackwater PEA Investor/Analyst Breakfast September

43 What Blackwater means to New Gold World class asset in South Central BC Blackwater New Afton Very few new discoveries of Blackwater s scale in North America/Mexico in last five years Blackwater a new discovery in an underexplored district with excellent infrastructure Robust Project 8 million recoverable gold ounces today Well below industry average cash costs Solid economics even with conservative gold price assumptions Experienced Management Team New Gold teams who successfully delivered Cerro San Pedro, Mesquite and New Afton further supplemented by former Mount Milligan permitting team Continued Exploration Upside Blackwater remains open, plus Capoose and regional targets Blackwater PEA Investor/Analyst Breakfast September

44 Accretive resource growth Acquisition Cost 7.5Moz $602 million ~11% of current market capitalization GOLD & 36.9Moz Silver Blackwater accounts for 36% and 29% of New Gold s consolidated gold and silver Measured & Indicated resources, respectively Blackwater PEA Investor/Analyst Breakfast September

45 Gold production (thousand ounces) Building presence in British Columbia British Columbia Measured & Indicated Resources Gold 9.3Moz Silver 42.4Moz Copper 1.6Blbs British Columbia Gold Production and Total Cash Costs (1)(2) 800 Blackwater and New Afton Combined cash costs $ $200 $150 $100 $50 Combined cash costs ($/oz) $0 Note: 1. Blackwater production and cash costs based on PEA and New Afton production and cash costs based on latest Technical Report and New Gold assumptions. 2. Refer to Cautionary Statement and note on Total cash costs and PEA additional cautionary note. Blackwater PEA Investor/Analyst Breakfast September

46 Gold production (thousand ounces) Solid production profile El Morro and Blackwater expected to more than double New Gold s gold production by 2017 at low cost 1, ~ A 2012E 2013E 2017E Blackwater PEA Investor/Analyst Breakfast September

47 Cash flow generation potential Operating Cash Flow ($ millions) $1,200 $900 $600 $ A 2013E 2015E 2017E Note: E, 2015E and 2017E at spot commodity prices of $1,775/oz gold, $34.50/oz silver, $3.75/lb copper. Blackwater PEA Investor/Analyst Breakfast September

48 2012 A year of catalysts Blackwater resource update New Afton production start El Morro litigation decision Further Blackwater PEA resource update New Afton commercial production Blackwater PEA New Afton mill achieving design capacity El Morro engineering/development planning Blackwater/New Afton exploration Blackwater PEA Investor/Analyst Breakfast September

49 The New Gold investment thesis EXPERIENCED BOARD AND MANAGEMENT FULLY FUNDED COMPANY WITH STRONG BALANCE SHEET DIVERSIFIED ASSET BASE IN MINING FRIENDLY JURISDICTIONS ORGANIC GROWTH OPPORTUNITIES/METAL OPTIONALITY PRODUCTION GROWTH/MARGIN EXPANSION INCREASING UNDERLYING ASSET VALUE MULTIPLE CATALYSTS COMPELLING INVESTMENT PROPOSITION Blackwater PEA Investor/Analyst Breakfast September