Part 1 –

Corporate Overview

Delivering
on Growth
New Gold – Analyst Day
January 25, 2010
www.newgold.com

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Schedule of Presentations
Corporate Overview & Strategy – Randall Oliphant, Executive
Chairman and Robert Gallagher, CEO

7:30 – 8:45

15 Minute Break
Overview of Financial Position – Brian Penny, CFO

9:00 – 9:15

Mesquite Mine Overview – Jim Currie, COO

9:15 – 9:45

Cerro San Pedro Overview – Jim Currie, COO

9:45 – 10:15

Peak Mines Overview – Jim Currie, COO

10:15 – 10:45
15 Minute Break

New Afton Overview – Jim Currie, COO

11:00 – 11:30

Exploration Update – Mark Petersen, VP Exploration

11:30 – 11:45

Closing Remarks – Randall Oliphant, Executive Chairman

11:45 – 12:00

Group Lunch

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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”. Forwardlooking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “does not expect”, “plans”, “anticipates”, “does not
anticipate”, “believes”, “intends”, “estimates”, “projects”, “potential”, ”scheduled”, “forecast”, “budget” and similar expressions, or that events or conditions “will”, “would”, “may”, “could”,
“should” or “might” occur. 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 New Gold‟s 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, Brazil, 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 national and local government legislation in Canada, the United States,
Australia, Brazil, 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 New Gold is involved with ongoing challenges relating to its environmental impact statement for Cerro San Pedro Mine; the lack of certainty with respect to
the Mexican and other 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, including the third party claim related to the El Morro transaction with respect to
New Gold's exercise of its right of first refusal on the El Morro copper-gold project in Chile and its partnership with Goldcorp Inc., which transaction and third party claim were announced
by New Gold in January 2010; 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 “Risks Factors” included in New Gold‟s Annual Information Form filed on March 31, 2009 and Management Information Circular filed on April 15, 2009, both 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.

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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 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 presentation are Canadian mining terms as defined in accordance with NI 43-101 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, 2005. 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.

TOTAL CASH COST
“Total cash cost” 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 cost 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 cost on a sales basis. Total cash cost 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 cost is reduced by any by-product revenue and is then divided by ounces sold to arrive at the total byproduct cash cost 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-GAAP measure. Total cash cost presented do not have a standardized meaning prescribed by GAAP 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 GAAP and is not necessarily indicative of operating costs presented under GAAP. A reconciliation will be provided in the MD&A accompanying the audited annual
financial statements.

www.newgold.com

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4

Executing on our Strategy
Disciplined Growth
• Completed 3-way business
combination June 2008
• Completed combination with
Western Goldfields June 2009
• Developing two solid organic
growth assets
• Pursuing accretive external growth
opportunities
Enhancing Value – El Morro
• $50 million upfront payment
• 100% development capital funded
by Goldcorp
• Significantly reduced interest rate
• Construction delay penalty
• Strong strategic partner - Goldcorp
Additional Initiatives
• Amapari strategic review
• New Afton development on
schedule for production in 2012

Operational Execution
• 41% increase in production Q4/09
versus Q4/08
• 17% decrease in cash cost
Q4/09 versus Q4/08
• 29% increase in production in 2009
versus 2008
• 18% decrease in cash cost in 2009
versus 2008
Maintaining a Strong Financial
Position
• $272 million(1) in cash at Dec. 31/09
• Strongest cash flow for 2009
realized in Q4/09
• Additional proceeds of C$50 million
on sale of Asset Backed Notes in
January 2010

www.newgold.com

1 Includes $9 million in Restricted Cash.

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5

Management & Board of Directors
EXECUTIVE MANAGEMENT TEAM
Randall Oliphant, Executive Chairman
Robert Gallagher, President and Chief Executive Officer
Brian Penny, Executive VP and Chief Financial Officer
James Currie, Executive VP and Chief Operating Officer
BOARD OF DIRECTORS
James Estey, Director
Robert Gallagher, CEO & Director
Vahan Kololian, Director
Martyn Konig, Director
Pierre Lassonde, Director
Craig Nelsen, Director
Randall Oliphant, Executive Chairman
Ian Telfer, Director
Raymond Threlkeld, Director

www.newgold.com

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6

Capitalization and Liquidity

Basic Shares Outstanding (millions)

389

FDITM Shares Outstanding (millions)

405

TSX Share Price – January 22, 2010

$4.46

Market Capitalization (C$ millions)

$1,730

Cash (US$ millions)1

$272

Long-term Investments (Asset Backed Notes US$ millions)2

$46

Debt (US$ millions)3

$238

Insider Ownership (million shares)

16

Cash and Long-term Investments not reflective of January 2010 sale of C$83 million in face value Asset
Backed Notes for Proceeds of C$50 million

1 Cash position as of December 31, 2009 including $9 million of restricted cash.
2 Represents approximation of fair value of Asset Backed Notes investment at December 31, 2009. Face value of Asset Backed Notes investment was C$104
million at December 31, 2009.
3 Debt position as of December 31, 2009.
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7

Enhancing Value – El Morro Transaction

On January 7, 2010 New Gold announced the exercise of
its right of first refusal (“ROFR”) to acquire 70% of the El
Morro project and formed a new partnership with Goldcorp
Inc.

ROFR came into effect on October 12, 2009 when
Barrick Gold Corporation announced its offer to
purchase 70% of El Morro from Xstrata for $465
million

Key Benefits to New Gold

Maintain 30% interest in a large asset coveted by the
largest gold companies

Well-financed strategic partner in Goldcorp with track
record of successful mine development

No additional cash outlay required from New Gold to attain
its share of production and cash flow

$50 million upfront payment plus full capital carry
significantly enhances financial flexibility

Low interest rate leads to faster payback and increased
cash flow

Construction guarantee and related penalty provide
additional assurance of timely development

El Morro Shareholder Agreement Revisions
Original
Agreement

Revised
Agreement

--

$50 million

% of New Gold
capital carried

70%

100%

Interest charge
on carried
funding(1)

Xstrata cost of
capital + 100
basis points
(~12.1%)

US 7-year
Treasury Rate +
187 basis points
(~5.2%)

--

60 days from
receipt of
permits (subject
to financial
penalty)

Upfront
payment

Construction
Guarantee

NOTE: On January 13, 2010, Barrick filed a Statement of Claim related to the El Morro Transaction and New Gold’s exercise of the Right of First
Refusal. New Gold believes the claim is without merit and intends to respond to this action using all available legal avenues.
1 Both the Xstrata weighted average cost of capital estimate and the US 7-year Treasury rate are sourced from Bloomberg as at January 7, 2010.
www.newgold.com

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8

El Morro Overview (30%)
Chile

Location
Reserves1,2

Resources1,2

Gold (m oz)

2.01

Copper (m lbs)

1,715

Gold (m oz)

2.66

Copper (m lbs)

2,018

Mine type

Open Pit

Estimated mine life

15 years

LOM Production/yr (Au oz/Cu lbs)3,4

95k/105m

LOM Cash Cost/oz co-product (Au/Cu)4

$390/$0.92

Future Upside

1
2
3
4

Stated intention of Goldcorp to make development of El Morro a priority

Certain development characteristics similar to those of Goldcorp‟s recently completed Penasquito mine

Potential to convert and grow resource base

Large land position with potential for additional gold and copper adjacent to current pit and at depth

Refer to Appendix for detailed disclosure on Reserve and Resource calculations.
Represents New Gold‟s 30% attributable share of Reserves and Resources
Represents New Gold‟s 30% attributable share of gold and copper production.
Refer to Cautionary Statement and note on Total cash cost. Life of mine co-product costs based on $850/oz gold and $2.00/lb copper.

www.newgold.com

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9

Q4 and 2009 Production and Total Cash Cost

Q4 GOLD PRODUCTION (000s OUNCES)

150
100

112

41%

567

473

$200
17%
$0

0
Q4'08

Q4'09

2009 GOLD PRODUCTION (000s OUNCES)

400
300

$600
$400

79

50

Q4 TOTAL CASH COST PER OUNCE (1)

302
233

200

Q4'08

Q4'09

2009 TOTAL CASH COST PER OUNCE (1)

$600

566

462

$400
29%

100

$200

0

$0
FY 2008

FY 2009

18%

FY 2008

FY 2009

1 Refer to Cautionary Statement and note on Total cash cost.

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10

Q4 and 2009 Production Highlights
Q4 2009 vs. Q4 2008
GOLD PRODUCTION (000s OUNCES)
150

100

2009 vs. 2008
GOLD PRODUCTION (000s OUNCES)
400
300

112
79

41%

50

Q4'08
Q4'09

0
SILVER PRODUCTION (000s OUNCES)
400
300
200
100
0

291

Q4'08
Q4'09

6.0

2.0
0.0

56%

1,500
1,000
500
0

1,497
573

161%

2008
2009

COPPER PRODUCTION (MILLION POUNDS)

Q4'08

20.0
15.0
10.0

Q4'09

5.0

3.9
2.5

2008
2009

2,000

COPPER PRODUCTION (MILLION POUNDS)

4.0

29%

200
100
0

SILVER PRODUCTION (000s OUNCES)

313
8%

302

233

15.6
8.2

90%

2008
2009

0.0

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11

2009 Gold Reserve Update
Proven and Probable Gold Reserves(1) (Million ounces)
10.0

9.0
1.3

8.2

Ounces Added 2009

12/31/2009

8.0
7.4
7.0
0.5

6.0

5.0
12/31/2008


Ounces Mined 2009

Updated gold prices at Mesquite, Cerro San Pedro and Peak Mines – $800 per ounce
Improved mine designs at Mesquite and Cerro San Pedro

1 Refer to Appendix for detailed disclosure on Reserve and Resource calculations.
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Mine by Mine Gold Reserve Growth
Proven and Probable Gold Reserves(1) (Million ounces)
MESQUITE

NEW GOLD

4.0
2.6
2.0
0.0

3.1

10.0

19%

8.0

8.2
7.4

6.0
YE 2008

YE 2009

10%

4.0
CERRO SAN PEDRO
2.0
1.3
1.0
0.0

2.0
1.4
11%

YE 2008

YE 2009

0.0

YE 2008

YE 2009

• New Afton gold reserves – 1.05 million ounces
• Calculated at $800 per ounce

PEAK MINES
1.0
0.5

0.0

• El Morro gold reserves – 2.01 million ounces
0.5

0.6

• Calculated at $500 per ounce

12%
YE 2008

YE 2009

1 Refer to Appendix for detailed disclosure on Reserve and Resource calculations.
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Asset Overview
GLOBALLY DIVERSIFIED PORTFOLIO OF ASSETS(1)

10% increase in reserves from 2008 to 2009

13.5 million ounce M&I gold resource

8.2 million ounce gold reserve

Diversified gold production base

New Afton
Canada
2P
M&I
Inferred

000s oz Au
1,052
1,671
438

Mesquite
United States
000s oz Au
3,137
4,865
357

2P
M&I
Inferred
Cerro San Pedro
Mexico
000s oz Au
2P
1,408
M&I
2,252
Inferred
4,377

Producing Mines

Undergoing Strategic Review

M&I
Inferred

Peak Mines
Australia

Development Projects

2P
M&I
Inferred

Amapari
Brazil

000s oz Au
570
850
302

000s oz Au
1,240
1,234

El Morro(2)
Chile
2P
M&I
Inferred

000s oz Au
2,013
2,659
110

1 Refer to Appendix for detailed disclosure on Reserve and Resource calculations. Measured and Indicated Resources inclusive of Reserves.
2 Represents New Gold‟s 30% attributable share of Reserves and Resources.

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14

Executing with Upside – Mesquite

Proven Execution
• Completed positive feasibility
study in 2006
• Mine resumed production on
time and on budget in 2008
• High end of 2009 production
guidance

1
2
3
4
5

Location

United States

Mine Type

Open Pit

Reserves1

Gold (m oz)

3.1

Resources1,2

Gold (m oz)

4.9

Estimate Mine Life3

13 years

Gold Production ’10 Guidance oz4

145k-155k

Total Cash Cost/oz ’10 Guidance5

$540-$560

Current Enhancements

• Continue to optimize leach
solution to maximize recovery
while minimizing related costs
• Declining total cash cost over
the next two years

Future Upside

• Potential to increase
mining rate – add 5 to
10koz of production per
year
• 1M oz sulfide resource below
current pit – exploring
processing alternatives

Refer to Appendix for detailed disclosure on Reserve and Resource calculations.
Resources are inclusive of Reserves.
11 years of production and 2 years of residual leaching.
Refer to Cautionary Statements.
Refer to Cautionary Statements and note on Total cash cost.
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Executing with Upside – Cerro San Pedro
Location

Mexico

Mine Type

Open Pit

Reserves1
Resources1,2

Proven Execution
• Achieved full production in
2008
• Received award as safest
mine of its size in Mexico for
2007 and 2008
• Attained ISO: 14001
environmental certification in
2008
1
2
3
4

Gold (m oz)

1.4

Silver (m oz)

52

Gold (m oz)

2.3

Silver (m oz)

78

Estimated Mine Life

~ 9 years

Gold Production ‘10 Guidance oz3

95k-105k

Total Cash Cost/oz ‘10 Guidance4

$390-$410

Current Enhancement
• Focus on obtaining
permanent solution to
continued legal challenges
• Use of contractor mining
provides additional flexibility
to increase production rates

Future Upside
• 0.9 Moz of Measured and
Indicated sulphide
resources and 3.4 Moz of
Inferred resources
• Additional evaluation of
potential economics of CSP
underground to be
completed during 2010

Refer to Appendix for detailed disclosure on Reserve and Resource calculations.
Resources are inclusive of Reserves.
Refer to Cautionary Statements.
Refer to Cautionary Statements and note on Total cash cost.
www.newgold.com

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Executing with Upside – Peak Mines
Location

Australia

Mine Type

Underground

Reserves1
Resources1,2

Proven Execution
• In operation since 1992
– history of success
• Proven ability to
replace reserves –
produced two millionth
ounce in 2008 after
starting with one million
ounce in reserves

1
2
3
4

Gold (k oz)

570

Copper (m lbs)

67

Gold (k oz)

850

Copper (m lbs)

127

Estimated Mine Life

~ 8 years

Gold Production ‘10 Guidance oz3

90k-100k

Total Cash Cost/oz ‘10 Guidance4

$360-$380

Current Enhancement
• Successfully transitioned to
higher gold grade
Perseverance Zone D ore
body
• Continued benefit from
increased copper production

Future Upside
• Potential for additional
future targets around
Peak‟s currently
existing underground
ore body and in the
surrounding region

• Conventional flotation
replacing column flotation

Refer to Appendix for detailed disclosure on Reserve and Resource calculations.
Resources are inclusive of Reserves.
Refer to Cautionary Statements.
Refer to Cautionary Statements and note on Total cash cost.
www.newgold.com

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Executing with Upside – New Afton
Canada

Location
Reserves1

Resources1,2

Proven Execution
• Delivered positive feasibility
study
• Long lead time equipment
ordered and in place
• Surface infrastructure partially
in place with mill building
exterior completed
1
2
3
4

Gold (m oz)

1.05

Copper (m lbs)

993

Gold (m oz)

1.67

Copper (m lbs)

1,535

Mine type

Underground

Estimated mine life

12 years

LOM Production/yr (Au oz/Cu lbs)3

85k/75m

LOM Cash Cost/oz co-product (Au/Cu)4

$367/$0.88

Current Enhancement
• Planned underground
development advance of over
3,000 meters in 2010
• Certain permanent mine services
infrastructure to be put in place in
2010 (electrical, water, air piping)

Future Upside
• Potential for additional blocks
containing similar
mineralization below those
currently included in mine plan

Refer to Appendix for detailed disclosure on Reserve and Resource calculations.
Resources are inclusive of Reserves.
Refer to Cautionary Statements.
Refer to Cautionary Statements and note on Total cash cost. Life of mine co-product costs based on $850/oz gold and $2.00/lb copper.
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Gold Production Outlook
EXCEPTIONAL GOLD PRODUCTION GROWTH PROFILE
Broker Consensus Production Profile 1,2,3
(2009E-2013E)
600

$600

500

$500

400

$400

300

$300

200

$200
63% Decrease in
Total Cash Costs

100

0

$100

$0
2009A

2010E
Gold Production

1
2
3
4
5

Total Cash Costs (US$/oz) 4

Au Production (koz)

61% Increase in
Production

2011E

2012E

2013E

5

Total Cash Costs

Source: Available consensus research estimates.
By-product cash cost based on declining consensus silver and copper price with 2013 prices of $15.00/oz and $2.25/lb for silver and copper, respectively.
2009 production shown for the period of ownership of Western Goldfields.
Refer to Cautionary Statements regarding Forward Looking Statements and Total Cash Cost.
2013 production based on 2 equity research analyst estimates, none of which include production from El Morro.
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Operating Margin
EXCEPTIONAL CASH FLOW GENERATION AND GROWTH

Operating Margin 1,2,3
$400
$350

Operating Margin (US$mm)

~ 158% Increase in
Operating Margin
$300
$250
$200
$150
$100
$50

$0
2009E
1
2
3
4

2010E

2011E

2012E

2013E

4

Source: Available consensus research estimates.
Based on declining consensus gold price from $959/oz in 2009 to $900/oz in 2013.
Operating Margin is a non-GAAP measure calculated as production multiplied by the assumed gold price less cash costs net of by-product credits.
2013 production based on 2 equity research analyst estimates, none of which include production from El Morro.
Refer to Cautionary Statements regarding Forward Looking Statements and Total Cash Cost.

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Copper Leverage
IMPACT OF COPPER ON OPERATING MARGIN AND CASH COST

200

$300

150

$150

100

$0

50

($150)

0

($300)
$2.25

$2.75
Operating Margin

$3.25

$3.75

Total Cash Costs (US$/oz)

Incremental Increase in Operating Margin (US$ mm)

Assumes average of 90 million lbs of copper per year from 2013-20171,2,3

$4.25

Total Cash Costs

1 Based on declining consensus gold price from $959/oz in 2009 to $900/oz in 2013 and a declining consensus copper price from $2.29/lb in 2009 to $2.25/lb in 2013
2 Assumes an average of 75 million pounds of copper sales per year from New Afton and 15 million pounds of copper sales per year from Peak Mines. It does not include any copper
sales from El Morro.
3 Refer to note regarding Total Cash Costs in Cautionary Statements.
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21

Peer Comparison
Change in 2009E-2013E Broker Consensus Cash Cost 1,2
14%

(2%)

(6%)

(7%)

(8%)3

(8%)

(9%)
(30%)

(63%)

1. Note: Gammon Gold calculated based on gold equivalent cash costs
2. Refer to Cautionary Statements regarding Forward Looking Statements and Total Cash Cost
3. Based on 2009-2011 data due to unavailability of broker estimates

Price/2010E CF

Price/Consensus NAV
2.0x

1.7x

1.7x

25.6x
1.6x

1.5x

24.1x

1.3x
1.2x

1.1x

15.9x

1.0x

15.0x

14.4x

12.7x

11.7x
9.0x

Note: As at January 22, 2010

7.6x

Note: As at January 22, 2010

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22

Performance Since Merger

94% share price appreciation since announcement of merger with Western Goldfields in March 2009

NAV multiple increased from 0.7x to 1.0x over the same time period

Increased exposure with 14 analysts now covering NGD

Trading liquidity has tripled

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23

Value Generation

FUTURE UPSIDE

El Morro unlocking incremental value
- Transaction announced on January 7, 2010 provides New Gold with $50 million and significant
economic benefits for its 30% share of the asset
- Maintain flexibility to pursue future swap for gold asset and/or a sale for cash

Amapari strategic review
Have sold a total of C$139 million in Face Value Asset Backed Notes for proceeds of C$81 million (58% of
Face Value realized) – C$21 million Face Value remaining largely illiquid
New Afton development on schedule, expect to commence production second half of 2012

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24

The New Gold Advantage







Successfully exceeded 2009 guidance of 270,000 to 300,00 oz of gold production at cash cost of
$470 to $490 per oz, net of by-product sales for the period of ownership
Production growth over the next four years with current portfolio of assets
Decreasing cash cost over the next four years
Strong balance sheet – significantly increased cash position during 2009
Delivering on value enhancements from current portfolio of assets
Enhanced market presence with increased analyst coverage and trading liquidity
Proven Board of Directors and management team with track record of delivering on strategic
objectives

www.newgold.com

TSX/NYSE AMEX US: NGD

25

Part 2 – Financial
Position, Operations
Overview and
Exploration

Delivering
on Growth
New Gold – Analyst Day
January 25, 2010
www.newgold.com

TSX/NYSE AMEX US: NGD

Schedule of Presentations
Corporate Overview & Strategy – Randall Oliphant, Executive
Chairman and Robert Gallagher, CEO

7:30 – 8:45

15 Minute Break
Overview of Financial Position – Brian Penny, CFO

9:00 – 9:15

Mesquite Mine Overview – Jim Currie, COO

9:15 – 9:45

Cerro San Pedro Overview – Jim Currie, COO

9:45 – 10:15

Peak Mines Overview – Jim Currie, COO

10:15 – 10:45
15 Minute Break

New Afton Overview – Jim Currie, COO

11:00 – 11:30

Exploration Update – Mark Petersen, VP Exploration

11:30 – 11:45

Closing Remarks – Randall Oliphant, Executive Chairman

11:45 – 12:00

Group Lunch

www.newgold.com

TSX/NYSE AMEX US: NGD

27

New Gold 2010 Analyst Day

Overview of Financial Position
Brian Penny – Chief Financial Officer

Balance Sheet Overview
US dollar millions

300

272
238

250
200

169

150
100

50

27

38

4
0
Cash &
El Morro Funding Mesquite Debt
Restricted Cash

Convertible
Debenture

Senior Notes

Total

Debt

• December 31, 2008 Net Debt balance of $29 million
• December 31, 2009 Net Cash balance of $34 million
• Excludes $50 million cash pending successful closing of El Morro transaction
• Excludes C$50 million in additional proceeds from sales of Asset Backed Notes
in January 2010
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TSX/NYSE AMEX US: NGD

29

Change in Cash and Restricted Cash – 2008 to 2009
US dollar millions

400
43
350

103
(41)

300

272

(26)
(22)

250

29
200

186

150
100
50
0
New Gold
12/31/08

Merger Western
Goldfields
06/01/08

Financing September
2009

ABCP
Settlement &
Sale

Debt
Purchase of
Repayments
Senior
2009
Secured Notes

Other (1)

New Gold
12/31/09

(1) Includes all capital expenditures during the year 2009 and results of operations.

www.newgold.com

TSX/NYSE AMEX US: NGD

30

El Morro Transaction Adds Financial Flexibility
US dollar millions

300
225

200

100
50

0
Up-front
payment
-100

100% vs.
70% Carry

-200
(225)

-300
1

2

• Over $275 million in added financial flexibility for New Gold

www.newgold.com

TSX/NYSE AMEX US: NGD

31

Overview of Debt
• Senior Secured Notes
• C$187 million face value with 10% annual interest rate
• Payable June 2017
• Notes issued by New Gold in 2007 as part of New Afton financing
• Convertible Debentures
• C$55 million face value convertibles with 5% annual interest rate
• Conversion price of C$9.35 per share
• Conversion date – June 28, 2014
• Mesquite Project Term Loan
• $27 million remaining on Term Loan with LIBOR + 4.25% annual interest rate
• Scheduled repayments required through June 30, 2012
• New Gold expects to pay remaining balance in first half of 2010
• New Gold required to maintain gold hedges until loan is repaid in full

www.newgold.com

TSX/NYSE AMEX US: NGD

32

Mesquite Loan – Hedge Book
• Predecessor company Western Goldfields Inc. put Term Loan in place to fund
development of the Mesquite mine
• Loan syndicate required the company to hedge a portion of production
• Total of 429,000 ounces at $801 per ounce through 2014
• 5,500 ounces per month
• At December 31, 2009, 330,000 ounces remained hedged at $801 per ounce
• Mark-to-market liability of approximately $110 million
• Full loan repayment would provide New Gold with flexibility to monetize hedge

www.newgold.com

TSX/NYSE AMEX US: NGD

33

Asset Backed Notes
• In early 2009 the market for Asset Backed Notes was illiquid
• In the second half of 2009, market began to steadily develop
• At September 30, 2009, New Gold held a total of C$160.0 million in face value Asset
Backed Notes
• September 30, 2009 balance sheet – Investments
• $149.3 million face value
• $88.3 million fair market value representing 59% of face value
• December 23, 2009 – sold C$56.3 million of face value notes for proceeds of C$31.2
million (55% of face value)
• January 2010 – sold C$83.0 million of face value notes for proceeds of C$49.9 million
(60% of face value)
• C$20.8 million of face value notes remaining
• All in classes that remain largely illiquid: B, C, 3 and 13
• Book value less than C$1.0 million

www.newgold.com

TSX/NYSE AMEX US: NGD

34

New Gold 2010 Analyst Day

Mesquite Mine
Jim Currie – Chief Operating Officer

Mesquite Mine

www.newgold.com

TSX/NYSE AMEX US: NGD

36

Mesquite – 2009 Year in Review

GOLD PRODUCTION (000s OUNCES)

200
150
100
50
0

150

108

38%

TOTAL CASH COST PER OUNCE (1)

$800
508

$600

596
18%

$400
$200
$0

FY 2008

FY 2009

FY 2008

FY 2009

• During 2009 Mesquite produced and sold 150koz and 144koz of gold, respectively
• Total cash cost per ounce(1) for the year of $596 per ounce
• Record fourth quarter gold production and sales of 61koz and 56koz of gold, respectively
• Total cash cost per ounce(1) for the fourth quarter of $551 per ounce

1.

Refer to note in Cautionary Statement regarding Total Cash Cost.

www.newgold.com

TSX/NYSE AMEX US: NGD

37

Mesquite – 2009 Operational Highlights
• Record annual and quarterly production since mine re-start in early 2008
• Strip ratio down to 3.1:1 in 2009 from 5.1:1 in 2008
• Ore tons loaded to the pad increased to 13.1 million tonnes in 2009 from 8.1 million
tonnes in 2008

• Total tonnes mined increased to 54.4 million in 2009 from 49.4 million in 2008
• Contract miner utilized for four months to allow catch-up on stripping
• Current „material moved mining cap‟ of 54.4 million tonnes (60 million tons)
reached on December 23, 2009 – limit set by current permit
• North wall slope angle lowered to improve slope stability factor of safety
• Excavated 440,000 tons from north wall to minimize risk of failure
• Truck simulator purchased and all operators have received two phases of training
• Truck fleet completely outfitted with radial tires in 2009
• Should reduce on going replacement costs and extend tire life

www.newgold.com

TSX/NYSE AMEX US: NGD

38

Mesquite Mine Team
ORGANIZATIONAL CHART
General Manager
Cory Atiyeh

Director of Mineral
Processing
Tony Casagranda

Mine Manager
Chuck Geary

Process Manager
Arnold DeHerrera

HR / Safety
Manager
Chet Bate

Operations
Controller
Frank Simms

Environmental
Manager
Jerald Hepworth

Comm. Relations
Manager
Luis Plancarte

Current Site Personnel

Mining
Surface and Maintenance
Technical Services
Processing
Administration
Various Contractors
Total Site

114
50
15
51
11
25
266

www.newgold.com

TSX/NYSE AMEX US: NGD

39

Mesquite – Reserves and Resources

GOLD RESERVES (MILLION OUNCES)
3.5
3.0

3.1

TOTAL GOLD RESOURCES (MILLION OUNCES) *
6.0
4.9

5.0

2.6

2.5

4.1

4.0

2.0

3.0

1.5

19%

1.0
0.5

1.0

0.0

0.0
YE 2008

19%

2.0

YE 2009

YE 2008

YE 2009

* Refer to Appendix for detailed disclosure on Reserve and Resource calculations.
• Reserves calculated using $800 per ounce gold in 2009 versus $500 per ounce of gold in 2008.
• Resources calculated using $900 per ounce gold in 2009 versus $650 per ounce of gold in 2008.

www.newgold.com

TSX/NYSE AMEX US: NGD

40

Mesquite - Reserve Bridge
Proven and Probable Gold Reserves(1) (Million ounces)
5.0

4.0

0.75

3.14

Ounces Added 2009

12/31/2009

3.0
2.63
(0.24)
2.0

1.0

0.0
12/31/2008

Ounces Mined 2009

1. Refer to Appendix for detailed disclosure on Reserve and Resource calculations.

www.newgold.com

TSX/NYSE AMEX US: NGD

41

Mesquite – Reserves and Resources(1)

Contained Metals

Grade
2008

2009

2008

2009

2008

2009

Tonnes
(Mt)

Tonnes
(Mt)

Gold
(g/t)

Gold
(g/t)

Gold
(Moz)

Gold
(Moz)

Proven and Probable
Reserves

137.5

166.8

0.59

0.58

2.63

3.14

Total Measured and
Indicated Resources

228.9

296.9

0.56

0.51

4.10

4.87

8.9

22.8

0.60

0.49

0.09

0.36

Classification

Inferred Mineral Resources

1. Refer to Appendix for detailed disclosure on Reserve and Resource calculations.

www.newgold.com

TSX/NYSE AMEX US: NGD

42

Mesquite – Health and Safety
Achieved to Date





Fully implemented Loss Prevention Program
Fully implemented Employee Health and Wellness
Program
498 days without a Lost Time Injury through
12/31/09
Total Reportable Injury Rate below national
average for both mining and general industry
Occupational Safety & Health Administration
18002 compliance effort initiated
All employees are emergency preparedness
trained

Future Deliverables

Continued reduction of accident/injury rate

Continued development/expansion of wellness
activities

Occupational Safety & Health Administration
18002 compliant in 2010

www.newgold.com

TSX/NYSE AMEX US: NGD

43

Mesquite – Health and Safety (cont‟d)
REPORTABLE ACCIDENT INCIDENCE RATE
4.5
4.05
4.0

3.65

3.59

3.5
3.0

3.13
3.1

3.1

3.1

3.1

3.1

2.5

3.1

2.64
1.95

2.0
1.5
1.0
0.5
0.0
Q3-08

Q4-08

Q1-09
Industry

Q2-09

Q3-09

Q4-09

Mesquite Mine

Note: Incident Rate calculated per MSHA standards. IR= incidents per 200,000 hrs worked.

www.newgold.com

TSX/NYSE AMEX US: NGD

44

Mesquite – Environment and Sustainability
Achieved to Date



Compliance with local regulations

California has five levels of government: Federal, State, Regional, County, Local

Imperial County is lead agency on majority of permits

Routine air monitoring conducted at four stations, operation is well below regulatory
limits
36 environmental permits or certificates and reporting mandates

1,602 permit stipulations

Future Deliverables

Energy & climate change – evaluating energy consumption, identified areas for
targeted improvements and began evaluation of greenhouse gas emissions

Air - evaluating dust suppression technologies in addition to routine roadway
treatments due to arid climate

Evaluating offsite paving projects to acquire needed particular matter offsets –
long term benefits to the entire region.

Reclamation – re-sloping all rock dumps as they become inactive

www.newgold.com

TSX/NYSE AMEX US: NGD

45

Mesquite – Social Responsibility
COMMUNITY AFFAIRS
Achieved to Date


Earned well-respected profile within the region
Retained local public relations firm



Ensure incidents, inspection information and general events are factually
communicated

VIP tours given regularly to regional decision makers
Presentations to community organizations
Maintain open communication and transparency

www.newgold.com

TSX/NYSE AMEX US: NGD

46

Mesquite – 2010 Guidance
GOLD PRODUCTION (000s OUNCES)
200
150
100
50
0

150

$800

596

$600
$400

540 - 560
8%

$200
$0
FY 2009

1.

145 - 155

TOTAL CASH COST PER OUNCE (1)

FY 2010

FY 2009

FY 2010

Refer to note in Cautionary Statement regarding Forward Looking Statements and Total Cash Cost.

www.newgold.com

TSX/NYSE AMEX US: NGD

47

Mesquite – Overview of Operating Metrics(1)

Production

2009 Results

2010 Guidance

Gold (koz)

150

145 - 155

Total Cash Cost per ounce1

596

540 - 560

Strip Ratio

3.1:1

3.4:1

Gold Grade g/t

0.51

0.56

2010 Objectives:
• Staying on schedule in stripping Rainbow 4 to maximize access to ore
in Q4‟10
• Maximize equipment availability to achieve target for tonnes moved

• Ongoing focus on cost reductions
• Conclude investigation on processing alternatives for sulphides
underlying the pit
1.

Refer to note in Cautionary Statement regarding Forward Looking Statements and Total Cash Cost.

www.newgold.com

TSX/NYSE AMEX US: NGD

48

New Gold 2010 Analyst Day

Cerro San Pedro
Jim Currie – Chief Operating Officer

CSP

www.newgold.com

TSX/NYSE AMEX US: NGD

50

CSP – 2009 Year in Review

GOLD PRODUCTION (000s OUNCES)

SILVER PRODUCTION (MILLION OUNCES)
2.0

150
85

100
50

96

1.5

13%

1.0

1.5
1.1
36%

0.5

0.0

0
FY 2008

FY 2009

FY 2008

FY 2009

TOTAL CASH COST PER OUNCE (1)
$600
$400

399

Average realized gold price of $978 per
ounce for the year

Average realized silver price of $14.48
per ounce for the year

405

$200
$0
FY 2008

1.

FY 2009

Refer to note in Cautionary Statement regarding Total Cash Cost.
www.newgold.com

TSX/NYSE AMEX US: NGD

51

CSP – 2009 Year in Review (cont‟d)

• During 2009 CSP produced and sold 96koz and 93koz of gold, respectively
• Total cash cost per ounce(1) net of by-products for the year of $405 per ounce
• Realized by-product sales of silver of 1.5 Moz
• Realized silver price of $14.48 per ounce
• Fourth quarter gold production and sales of 26koz and 24koz of gold, respectively
• Total cash cost per ounce(1) net of by-products for the fourth quarter of $438 per ounce
• Realized by-product sales of silver of 0.3 Moz
• Realized silver price of $17.36 per ounce

1.

Refer to note in Cautionary Statement regarding Total Cash Cost.
www.newgold.com

TSX/NYSE AMEX US: NGD

52

CSP – 2009 Operational Highlights

• Reduced strip ratio from budgeted 2.1 to 1.4 with improved mine planning
• Mined record 11.9 million tonnes of ore and 16.8 million tonnes of waste
• Total tonnes moved increased to 28.7 million in 2009 from 23.0 million in 2008
• Gold recoveries increased to 55% in 2009 from 49% in 2008
• Met and exceeded guidance for gold and silver production, respectively despite two
temporary shutdowns during the year – H1N1 (May) and Environmental Permit
(November – December)
• Substantially improved dore quality, significantly reducing impurities and refinery
penalties
• Strategic cost savings initiatives included:
• Contracting new diesel supplier
• Designed shorter waste hauls
• Improved collection and use of rainfall water for processing and reducing consumption of
expensive ground water

www.newgold.com

TSX/NYSE AMEX US: NGD

53

Cerro San Pedro Team
ORGANIZATIONAL CHART
General Director
Jorge Mendizábal
General Manager
Juan Guerrero

Safety &
Processes of
support Manager
Jesús Castro

Environmental
Coordinator
Rogelio Muñoz

Finance &
Administration
Manager

Human
Resources
Coordinator

Juan Carlos
Chavez

Mario A.
Rodríguez

Mine
Manager

Process
Manager

Construction
Coordinator

J. Jorge
Gutierrez

Gerardo
Garcia

Joel Flores

In-House
Legal
Counsel
Luis Rodolfo
Rodriguez

Current Site Personnel
Mining
Surface and Maintenance
Technical Services
Processing
Administration
Contractors
Total Site
External Contractors
Total General

174
23
9
52
84
47
389
246
635
www.newgold.com

TSX/NYSE AMEX US: NGD

54

CSP – Reserves and Resources

GOLD RESERVES (MILLION OUNCES)

2

TOTAL GOLD RESOURCES (MILLION OUNCES)*

3

1.3

11%

1

2.3

1.4
1.7

2

33%

1
0

0
YE 2008

YE 2009

SILVER RESERVES (MILLION OUNCES)

60

51.4

52.2

YE 2008

YE 2009

TOTAL SILVER RESOURCES (MILLION OUNCES)*

100

77.8
63.4

40

1%

23%

50

20
0

0
YE 2008

YE 2009

YE 2008

YE 2009

* Refer to Appendix for detailed disclosure on Reserve and Resource calculations.
• Reserves calculated using $800/ounce gold in 2009 versus $750 /ounce of gold in 2008 and $12/ounce silver versus $10/ounce silver.
• Resources calculated using $900/ounce gold in 2009 versus $1,000/ounce of gold in 2008 and $15/ounce silver versus $21/ounce silver.
www.newgold.com

TSX/NYSE AMEX US: NGD

55

CSP – Reserve Bridge
Proven and Probable Gold Reserves(1) (Million ounces)
2.0

1.5

0.31

1.41

Ounces Added 2009

12/31/2009

1.27

(0.17)

1.0

0.5

0.0
12/31/2008

Ounces Mined 2009

1. Refer to Appendix for detailed disclosure on Reserve and Resource calculations.

www.newgold.com

TSX/NYSE AMEX US: NGD

56

CSP – Reserves and Resources(1)

Contained Metals

Grade

2008

2009

2008

2009

2008

2009

2009

2009

2008

2009

2008

2009

2009

2009

Tonnes
(Mt)

Tonnes
(Mt)

Gold
(g/t)

Gold
(g/t)

Silver
(g/t)

Silver
(g/t)

Zinc(2)
(%)

Lead(2)
(%)

Gold
(Moz)

Gold
(Moz)

Silver
(Moz)

Silver
(Moz)

Zinc(2)
(Mlbs)

Lead(2)
(Mlbs)

71.7

78.2

0.55

0.56

22.32

20.77

-

-

1.27

1.41

51.4

52.2

-

-

96.5

92.1

0.54

0.46

20.40

17.38

-

-

1.69

1.36

63.4

51.5

-

-

-

61.0

-

0.46

-

13.42

0.74

0.15

-

0.90

-

26.3

992

203

1.7

104.0

0.47

0.28

24.10

7.37

-

-

-

0.90

1.3

24.6

-

-

Sulphides
Manto

-

231.6

-

0.43

-

8.05

0.52

0.07

-

3.17

59.9

2,637

341

Sulphides

-

4.5

-

1.98

-

114.5

6.17

1.61

-

0.29

16.5

608

159

Classification
P&P
Reserves
Total M&I
Resources
Oxides
Sulphides
Inferred
Resources
Oxides

1.
2.

Refer to Appendix for detailed disclosure on Reserve and Resource calculations.
There was no Zinc or Lead included in Measured & Indicated or Inferred Resources in 2008.

www.newgold.com

TSX/NYSE AMEX US: NGD

57

CSP – Health and Safety
Achieved to Date




Winners of two “cascos de plata” for best results
in safety in the mining industry in México – 2007
and 2008
Zero Lost Time Accidents in 1,116 days,
equivalent to 3.6 million man-hours
Decrease of total accidents from 15 in 2008 to 9
in 2009
Policy of zero tolerances and focus on operative
discipline

Future Deliverables

Continue to work on record of zero Lost Time
accidents

Safe Industry Certification (safety team)

www.newgold.com

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58

CSP – Health and Safety (cont‟d)
REPORTABLE ACCIDENT INCIDENCE RATE
3.5
3.0
2.5

3.1

3.1

3.1

3.1

3.1

2.24
2.1

2.0
1.5
1.04
1.0
0.59
0.5
0.49
0.0
2008

Q1-09

Q2-09
Industry

Q3-09

Q4-09

Cerro San Pedro

Note: Incident Rate calculated per MSHA standards. IR= incidents per 200,000 hrs worked.

www.newgold.com

TSX/NYSE AMEX US: NGD

59

CSP – Environment and Sustainability
Achieved to Date




Maintained legal compliance:

100% compliance with the State Government Technical Committee requirements and conditions

100% compliance with all SEMARNAT environmental permit requirements and conditions

Presentation of a new Environmental Impact Statement for all CSP operational phases and closure

ISO 14001 certification compliant
Continuous air quality monitoring conducted at five stations - all operational emissions are below
maximum allowable limits
Constructed new weather station
Over 79,000 plants and trees growing in nursery and over five hectares re-forested to date

Future Deliverables

Clean Industry certification and Technical Committee audit compliance

Obtain a new environmental permit from SEMARNAT

Official Certification of the Residue Handling Plan

Reduce the consumption of ground water through the use of treated wastewater

www.newgold.com

TSX/NYSE AMEX US: NGD

60

CSP – Social Responsibility

Achieved to Date






Approximately $500,000 was invested in public works and projects for the
community, including restoration of Cerro de San Pedro church
Providing free medical service to the neighboring communities
Over 50% of the workforce is from the neighboring communities
Sponsor of multiple educational and cultural events for the town of Cerro de San
Pedro and neighboring communities
Promotes and facilitates employee participation in volunteer programs in the
neighboring communities
Open and transparent communications with all stakeholders

www.newgold.com

TSX/NYSE AMEX US: NGD

61

CSP – 2010 Guidance

GOLD PRODUCTION (000s OUNCES)

2.0

150
100

SILVER PRODUCTION (MILLION OUNCES)

96

95 - 105

4%

50

1.5

1.5

1.4 – 1.6

1.0
0.5
0.0

0
FY 2009

FY 2009

FY 2010

TOTAL CASH COST PER OUNCE (1)

FY 2010

Key Assumptions:
• 2010 Silver price of $15.00 per ounce

$600
405

$400

390 - 410

$200

• 2010 exchange rate $13.00 Mexican
Pesos per US dollar
Sensitivities:

$0
FY 2009

FY 2010

• 10% change in silver price results in
+/-$25/oz change in total cash costs(1)
• Approximately 50% of Cerro San
Pedro‟s costs are in Mexican Pesos

1.

Refer to note in Cautionary Statement regarding Forward Looking Statements and Total Cash Cost.
www.newgold.com

TSX/NYSE AMEX US: NGD

62

CSP – Overview of Operating Metrics
Production
Gold (k oz)

2009 Results

2010 Guidance
96

95 - 105

Total Cash Cost per ounce1

$407

$390 - 410

Strip Ratio

1.41

1.21

Gold Grade g/t

0.45

0.48

2010 Objectives:
• Resolve ongoing legal issues and establish permanent long-term
solution
• Continue focus on reducing strip ratio, improving leach
recoveries, and optimizing mine plans
• Optimize reagent application to increase Au and Ag recovery and
lower unit costs
• Continue cost savings initiatives through strategic negotiations
with all suppliers and contractors

1.

Refer to note in Cautionary Statement regarding Forward Looking Statements and Total Cash Cost.
www.newgold.com

TSX/NYSE AMEX US: NGD

63

New Gold 2010 Analyst Day

Peak Gold Mines
Jim Currie – Chief Operating Officer

Peak Mines – 2009 Year in Review

GOLD PRODUCTION (000s OUNCES)

COPPER PRODUCTION (MILLION POUNDS)
20.0

150
100
100

93

10.0
50

8.2
90%

5.0

7%

0.0

0
FY 2008

FY 2009

TOTAL CASH COST PER OUNCE (1)
$600

15.6

15.0

FY 2008

FY 2009

Average realized gold price of $994 per
ounce for the year

Average realized copper price of $2.11
per pound for the year

477
335

$400
$200

30%

$0
FY 2008

1.

FY 2009

Refer to note in Cautionary Statement regarding Total Cash Cost.

www.newgold.com

TSX/NYSE AMEX US: NGD

65

Peak Mines – 2009 Year in Review (cont‟d)

• During 2009 Peak produced and sold 93koz and 88koz of gold, respectively
• Total cash cost per ounce(1) for the year of $335 per ounce, net of by-product sales
• Realized by-product sales of copper of 13.9 Mlbs
• Realized copper price of $2.11 per pound
• Fourth quarter gold production and sales of 25koz and 26koz of gold, respectively
• Total cash cost per ounce(1) for the fourth quarter of $339 per ounce, net of by-product
sales
• Realized by-product sales of copper of 4.8 Mlbs

• Realized copper price of $2.54 per pound

www.newgold.com

TSX/NYSE AMEX US: NGD

66

Peak Mines – 2009 Operational Highlights
• Highest ever mine production and mill throughput of 794,000 tonnes
• Highest ever copper production of 15.6 million pounds
• Two new ore sources developed and commissioned being Chesney and Perseverance
Zone D – high grade copper zones
• Commissioned a batch plant to produce high quality shotcrete and cemented rock fill
• Commissioned a new refrigeration plant underground
• Implemented a new copper marketing agreement with Trafigura
• Once again replaced ounces mined in 2009 in reserves

www.newgold.com

TSX/NYSE AMEX US: NGD

67

Peak Mines Team
ORGANIZATIONAL CHART

General Manager
Peter Lloyd

Mine Manager
Sean Pearce

Mill Manager
David Hall

Commercial
Manager
Bruce Kennedy

Manager HSE
Tony Lord

Maintenance
Manager
Carl Wilde

Geology
Superintendent
Manfred
Wimberger

Current Site Personnel

Mining
Maintenance
Geology / Exploration
Processing
Commercial
Health, Safety & Environment
Full Time equivalent Contractors
Total Site

128
57
15
43
20
14
25
302
www.newgold.com

Exploration
Superintendent
Ian MacKenzie

TSX/NYSE AMEX US: NGD

68

Peak Mines – Reserves and Resources

GOLD RESERVES (MILLION OUNCES)

0.8
0.6

TOTAL GOLD RESOURCES (MILLION OUNCES)*
1.0

0.5

0.8

0.9

0.6

0.4

0.5

0.2
0.0

0.0

YE 2008

YE 2009

COPPER RESERVES (MILLION POUNDS)
100

76

YE 2008

YE 2009

TOTAL COPPER RESOURCES (MILLION POUNDS)*
150

136

127

67
100

50
50
0

0

YE 2008

YE 2009

YE 2008

YE 2009

* Refer to Appendix for detailed disclosure on Reserve and Resource calculations.
• Reserves calculated using $800/ounce gold in 2009 versus $750 /ounce of gold in 2008 and $2.00/lb copper consistent with 2008.
• Resources calculated using $800/ounce gold in 2009 versus $750/ounce of gold in 2008 and $2.00/lb copper consistent with 2008.

www.newgold.com

TSX/NYSE AMEX US: NGD

69

Peak Mines - Reserve Bridge
Proven and Probable Gold Reserves(1) (Million ounces)
1.0

0.16

0.57

0.51
0.5
(0.10)

0.0
12/31/2008

Ounces Mined 2009

Ounces Added 2009

12/31/2009

1. Refer to Appendix for detailed disclosure on Reserve and Resource calculations.

www.newgold.com

TSX/NYSE AMEX US: NGD

70

Peak Mines – Reserves and Resources(1)

Contained Metals

Grade

Classification
Proven and
Probable
Reserves
Total
Measured and
Indicated
Resources
Inferred
Mineral
Resources

1.

2008

2009

2008 2009

2008

2009

2008

2009

2008

2009

Tonnes
(Mt)

Tonnes
(Mt)

Gold
(g/t)

Gold
(g/t)

Copper
(%)

Copper
(%)

Gold
(Moz)

Gold
(Moz)

Copper
(Mlbs)

Copper
(Mlbs)

3.6

3.8

4.4

4.7

0.96

0.80

0.51

0.57

76

67

6.1

6.1

4.3

4.4

1.01

0.95

0.85

0.85

136

127

2.7

2.0

4.5

4.7

0.90

0.75

0.39

0.30

52

33

Refer to Appendix for detailed disclosure on Reserve and Resource calculations.

www.newgold.com

TSX/NYSE AMEX US: NGD

71

Peak Mines – Health and Safety
Achieved to Date





Increased hazard reporting by employees from 2008 to
2009
Achieved 95% close out rate for corrective preventative
actions
Continued to reduce Lost Time Injury Severity Rate year on
year
Implemented Peak Gold Mines Good Health Program
Completed implementation of InControl event reporting and
action tracking system

Future Deliverables

Continue to work towards zero Lost Time injuries

Continue to be a socially responsible employer

Occupational Safety & Health Administration 18001
compliant or better

Increase (double) Safe Act Observations performed in
operating areas

www.newgold.com

TSX/NYSE AMEX US: NGD

72

Peak Mines – Health and Safety (cont‟d)
REPORTABLE ACCIDENT INCIDENCE RATE
3.5
3.0

3.1

3.1

3.1

3.1

3.1

3.1
2.4

2.5
2.0
1.5

1.2
1.0

1.0

1.1

1.0

1.1

0.5
0.0
Q3-08

Q4-08

Q1-09
Industry

Q2-09

Q3-09

Q4-09

Peak Mines

Note: Incident Rate calculated per MSHA standards. IR= incidents per 200,000 hrs worked.

www.newgold.com

TSX/NYSE AMEX US: NGD

73

Peak Mines – Environment and Sustainability
Achieved to Date




Maintained legal compliance

Received development consents for batch plant additions, cyanide system and
oxygen plant

Completed Annual Environmental Management Return

Routine air, noise and vibration monitoring conducted and operation remains below
regulatory limits
Zero cyanide related fauna deaths
Established compliance with Dangerous Goods Transport code for copper
concentrate
Upgraded access and presentation of the Golden Walk (Historical Mining Areas)
adjacent to the Peak Offices

Future Deliverables

Submit new Mine Operations Plan (MOP) and renew Environmental Protection
License

Complete predicative modeling for blast vibration

Commence progressive rehabilitation of historical sites (Queen Bee and Occidental)

Conduct Life of Tails Dam study that includes annual filling plan and options for
extended life

www.newgold.com

TSX/NYSE AMEX US: NGD

74

Peak Mines – Social Responsibility

COMMUNITY AFFAIRS
Achieved to Date







Maintain reputation as socially responsible business within the region
Support for local tour bus operator involving tours of Peak mine site
Enterprise Facilitator employed, trained and contributing to business in town
Sustainability Report completed and annual Community Consultation Meeting held
Peak Gold Mine Open Day to be held October 17th

Maintain open communication and transparency
Urban Landcare group formed in town

www.newgold.com

TSX/NYSE AMEX US: NGD

75

Peak Mines – 2010 Guidance

GOLD PRODUCTION (MILLION OUNCES)

COPPER PRODUCTION (MILLION POUNDS)
18.0

150
93

100

90 - 100

17.0
15.6

16.0
50

15.0 – 17.0

15.0

14.0

0
FY 2009

FY 2010

TOTAL CASH COST PER OUNCE (1)

FY 2009

FY 2010

Key 2010 Assumptions:
• Copper price $2.75 per pound

$600
$400

333

360 - 380

Sensitivities:

$200

• A 10% change in copper price results in +/$45 per ounce change in total cash costs

$0
FY 2009
1.

• 2010 exchange rate $0.85 Australian dollars
per US dollar

FY 2010

• Approximately 85% of Peak‟s costs are in
Australian dollars

Refer to note in Cautionary Statement regarding Forward Looking Statements and Total Cash Cost.

www.newgold.com

TSX/NYSE AMEX US: NGD

76

Peak Mines – Overview of Operating Metrics(1)
Production

2009 Results

2010 Guidance

Gold (k oz)

93

90 - 100

Total Cash Cost/oz1

333

360 - 380

Copper (Mlbs)

15.6

15.0 – 17.0

Gold Grade g/t

4.05

4.13

2010 Objectives:
• Perseverance Zone D provides higher grade feed to the mill
• Construction of a conventional flotation circuit in the mill to replace
column flotation
• Development of a 4.5m diameter ventilation raise from surface to
Perseverance Zone D
• Increase in near mine exploration to continue reserve replacement

1.

Refer to note in Cautionary Statement regarding Forward Looking Statements and Total Cash Cost.

www.newgold.com

TSX/NYSE AMEX US: NGD

77

New Gold 2010 Analyst Day

New Afton Project
Jim Currie – Chief Operating Officer

New Afton

www.newgold.com

TSX/NYSE AMEX US: NGD

79

Overview of Block Caving

Block caving will involve:

Ore extraction from draw points
by 3 m3 scoops, transfer to the
u/g crusher by 10 m3 scoops,
then transferred to surface via
conveyor system

New Afton has three blocks

Undercutting the ore body
allowing the ore to collapse and
fragment into underlying draw
points

B1 & B2 bottom at approx. 600m
below surface
B3 bottom at approx. 730m
below surface

New Afton ore is very amenable to
block caving

Capital intensive up-front but low
operating costs

Lowest cost hard rock underground
mining method

NEW AFTON
Conveyor
Portal
5677 mRL
-168
metres
-188
metres

Afton
Block
Cave

Existing
Afton Pit

-507
metres
-587
metres
-707
metres
-748
metres

-1137
metres -1196
metres
-1350
metres

Possible
Afton Pit
Extension
CZone
Deep C

www.newgold.com

TSX/NYSE AMEX US: NGD

80

New Afton Team
ORGANIZATIONAL CHART

VP Operations
Canada
Ron Allum

Mine Manager
Kurt Keskimaki

Process Manager
Craig Lockhart

HR Manager
Ann Wallin

Finance Manager
Dale Found

Technical Services
Manager
David Nicholls

Current Site Personnel

Mining
Surface and Maintenance
Technical Services
Administration
Various Contractors
Total Site

61
39
11
23
20
154

www.newgold.com

TSX/NYSE AMEX US: NGD

81

Mines Using Block Caving Techniques
Global Block Caving Mines
Pebble
Cassiar
Ekati
New Afton

Resolution
San Manuel

Bingham Canyon
Henderson
Questa

Jeffrey
LEGEND

Oyu Tolgoi

Bell

Past Producers
Several Projects And
Mines In China

Producers
Development Projects
Didipio

Santo Thomas II

Grasberg
King
Debswana Mines
Kimberley Mines

Chuquicamata
Salvador

Andina

Argyle

Shabani
Palabora

Cullihan
Finsch

Ok Tedi
Wafi

Olympic Dam
Mt Keith

Northparkes E26
And E48

Koffiefontain

Ridgeway Deeps
And Cadia East

El Teniente Mines

Mt Lyall

www.newgold.com

TSX/NYSE AMEX US: NGD

82

New Afton – 2009 Year in Review
2009 HIGHLIGHTS
• Steady improvement in underground advance rate
quarter by quarter
• Continued development of declines to the base of
the ore body – achieved breakthrough in Conveyor 2
decline

ADVANCE RATE (METERS)
700

600

• Commissioned batch plant for onsite shotcrete and
concrete production

500

• Completed the mill building in early 2009 for storage
of mill equipment

400

• Zero lost time injuries in the underground for 2008
and 2009

300

• Increased from 2 crews/4 days per week to 4
crews/7 days per week

200

• Capital expenditure in 2009 will be in line with the
forecast of $60 million (excluding capitalized interest)

100

0
Q1-09

Q2-09

www.newgold.com

Q3-09

Q4-09

TSX/NYSE AMEX US: NGD

83

New Afton – Feasibility Study Update
ASSUMPTIONS AND KEY METRICS
(USD millions)
unless otherwise noted

Gold (US$ per ounce)

900 – 800

Copper (US$ per pound)

2.50 – 2.00

Foreign Exchange Rate (CDN/US)

0.90 – 0.85

Total Project Capital Cost

630

Sustaining Capital Cost

146

LOM ore tonnes (millions)

47

Average Au grade (g/t)

0.69

Average Cu grade (%)

0.95

Co-product Cash Cost ($/oz)/($/lb)(1)
By-product Cash Cost net of Copper Credits($/oz) (1)

By-product Cash Cost net of Gold Credits($/lb) (1)

January 2010
43-101 Update

$367/$0.88
($770/oz)

$0.34/lb

Capital spent on New Afton through December 31, 2009 of $218 million with ~$410
million remaining

(1) Both Co-product and By-product cash costs calculated using long-term gold and copper prices of $850/oz and $2.00/lb, respectively.
(2) New Gold will file a new 43-101 Technical Report within 45 days.
www.newgold.com

TSX/NYSE AMEX US: NGD

84

New Afton – Reserves and Resources

GOLD RESERVES (MILLION OUNCES)

TOTAL GOLD RESOURCES* (MILLION OUNCES)

2.00

1.50
1.03
1.00

1.05

1.50

1.9%

1.00

0.50

0.50

0.00

0.00

YE 2008

1,500
1,000

2.5%

YE 2009

COPPER RESERVES (MILLION POUNDS)

YE 2008

993

1,500

3.5%

1,000

500

YE 2009

TOTAL COPPER RESOURCES* (MILLION POUNDS)

2,000
959

1.67

1.63

1,483

1,535
3.5%

500

0

0
YE 2008

YE 2009

YE 2008

YE 2009

* Refer to Appendix for detailed disclosure on Reserve and Resource calculations.
• Reserves calculated using $800/ounce gold in 2009 versus $475/ounce gold in 2008 and $2.00/lb copper versus $1.45/lb in 2008.
• Resources calculated using $900/ounce gold in 2009 versus $450/ounce gold in 2008 and $2.00/lb copper versus $1.20/lb in 2008.
www.newgold.com

TSX/NYSE AMEX US: NGD

85

New Afton – Reserves and Resources (Cont‟d)(1)

Contained Metals

Grade

Classification
Proven and
Probable Reserves
Total Measured and
Indicated Resources
Inferred Mineral
Resources

1.

2008

2009

2008

2009

2008

2009

2008

2009

2008

2009

Tonnes
(Mt)

Tonnes
(Mt)

Copper
(%)

Copper
(%)

Gold
(g/t)

Gold
(g/t)

Copper
(Mlbs)

Copper
(Mlbs)

Gold
(Moz)

Gold
(Moz)

44.4

47.4

0.98

0.95

0.72

0.69

959

993

1.03

1.05

65.7

65.0

1.02

1.07

0.77

0.80

1.63

1.67

7.9

25.2

0.96

0.66

0.88

0.54

0.23

0.44

1,483 1,535
168

367

Refer to Appendix for detailed disclosure on Reserve and Resource calculations.

www.newgold.com

TSX/NYSE AMEX US: NGD

86

New Afton – Health and Safety
Achieved to Date





Functioning Joint Employee/Management Safety
Committee
Reduced AIFR from 6.95 to 3.69 during 2009

Mine Rescue Team established and earned top
award at Provincial Mine Rescue Competition
Gap analysis completed on Health Safety &
Reclamation Code for Mines in British Columbia
Draft Completed on Site Safety Manual

Future Deliverables

Continue to work towards zero Injuries

Compliance in all aspects of the Health Safety &
Reclamation Code for Mines in British Columbia

Institute internal safety audit standards

www.newgold.com

TSX/NYSE AMEX US: NGD

87

New Afton – Health and Safety (cont‟d)
REPORTABLE ACCIDENT INCIDENCE RATE
8.0
7.0

6.7

6.8

6.5

6.0
4.8

5.0
4.0

3.2
3.0
2.0
1.0
0.0
Q4-08

Q1-09

Q2-09

Q3-09

Q4-09

New Afton

Note: Incident Rate = incidents per 200,000 hrs worked.

www.newgold.com

TSX/NYSE AMEX US: NGD

88

New Afton – Environment and Sustainability
Achieved to Date






Compliance with local regulations
No externally reportable environmental incidents during 2009
Compliance with British Columbia regulations
Installed bat and bird habitats
Cleaned up historical PCB contamination
Joined the BC Hydro Powersmart Initiative

Future Deliverables

Adoption of the New Gold Health Safety & Environmental Standards. First step in
integrating an ISO 14001 Emergency Monitoring System into New Afton

Achievement of permitting obligations on schedule

Reduced reliance on external consultants by performing monitoring and reporting
duties in-house

Compilation of a site-wide Aspects and Impacts register to direct future management
requirements

www.newgold.com

TSX/NYSE AMEX US: NGD

89

New Afton – Social Responsibility
COMMUNITY AFFAIRS

Worked successfully with the local bands following the requirements under the
Participation agreement

Provided Educational Scholarships to three First Nations students from the two
local bands; also provided Educational Scholarships to children of employees who
were pursuing post secondary education

Assisted the aggregate business at one of the bands develop a good working model
for business development and operation. This included a site tour to another
successfully operating aggregate pit, work with our Finance Manager to organize
books and record-keeping and work with our Materials Manager to develop sound
costing methods
Held a well attended Family day for employee‟s
and contractors families in July. Included
underground and surface tours and equipment
demonstrations

Met with various business groups in Kamloops to
build awareness and information; included
Mayors Office and Chamber of Commerce

www.newgold.com

TSX/NYSE AMEX US: NGD

90

New Afton – 2010 Outlook
Development schedule:
• Budget of 3,483 meters of underground development in 2010
• Complete Conveyor Decline and Access Decline to the lowest levels of the mine
providing two means of access from all areas
• 805 meters of intake and exhaust raise boring and lining establishing the basic
ventilation flows for future production
• Installation of certain permanent Mine Services including electrical power cabling,
and compressed air, water and discharge piping.
Capital Expenditures:
• Expected 2010 spending of $50 million (excluding capitalized interest)
• $70 million (including capitalized interest)
• 65% of spending on continued underground development

www.newgold.com

TSX/NYSE AMEX US: NGD

91

New Afton – 2010 and Beyond
PATH FORWARD: TOWARD PRODUCTION

2010

2011

2012

Underground
Development

Underground
BASE
Development/Surfa
ce Construction

Completion /
Production

- Continued
development of
drifts to base of the
ore body

- Re-commence
surface
construction
- Initiate Undercut of
the ore body mid
year
- Fire first draw bell
- Production ore to
stockpile

- Mill construction
completion and startup
- Concentrate
Production expected
in the second half of
2012

www.newgold.com

TSX/NYSE AMEX US: NGD

92

New Gold 2010 Analyst Day

Exploration Update
Mark Petersen– Vice President Exploration

El Morro Overview

La Fortuna Deposit

Reserves
Classification

Proven
Probable
Total P&P

Tonnes
000’s

208,473
241,761
450,234

100% Basis
Copper
(%)

0.66
0.50
0.58

Gold
(g/t)

0.53
0.41
www.newgold.com
0.46

Contained Metals
30% Basis
Copper
Gold
(Mlbs)
(Moz)

909
1.06
806
0.95
TSX/NYSE
1,715AMEX US: NGD
2.01 94

El Morro Overview

El Morro Deposit
Discovery Hole: DDM-1
0.83 % Cu, 0.26 g/t Au
170 m
306 m @ 600 ppm Cu

> 50 ppb Au
+

+

+

+
+

0 – 76 m Leached Cap
76 – 152 m Secondary
152 – 500 m Primary

+
+

36 m @ 0.512g/t+ Au+
+

68 m @ 0.57 g/t Au

0
www.newgold.com

meters

TSX/NYSE AMEX US: NGD

250
95

Cerro San Pedro Sulphide 2009 Results
2009 Highlights

Completed 1st pass drilling program targeting Au-Ag-Zn-Pb sulphide mineralization extending from bottom of
current open pit
 29 core holes totaling 16,829 meters

New geologic model and resource estimate for Year-end 2009 Reserves & Resources

Impact:
0.57 Moz Au, 14 Moz Ag, 1.0 Blbs Zn, 0.2 Blbs Pb added to M&I
3.50 Moz Au, 76 Moz Ag, 3.2 Blbs Zn, 0.5 Blbs Pb added to Inferred

Sulphide Resources
Classification

Tonnes
(Mt)

Grade

Contained Metal

Gold
(g/t)

Silver
(g/t)

Zinc
(%)

Lead
(%)

GoldEq(1)
(g/t)

Gold
(Moz)

Silver
(Moz)

Zinc
(Mlbs)

Lead
(Mlbs)

Measured

18.7

0.53

17.10

0.80

0.19

1.54

0.32

10.3

332

79

Indicated

42.3

0.42

11.79

0.71

0.13

1.24

0.58

16.0

660

123

61.0

0.46

13.42

0.74

0.15

1.33

0.90

26.3

992

203

231.6
4.5

0.43
1.98

8.05
114.5

0.52
6.17

0.07
1.61

0.99
9.51

3.17
0.29
3.46

59.9
16.5
76.4

2,637
608
3,245

341
159
500

Total M&I
Inferred Resources
Porphyry Sulphides
Manto Sulphides

1) Refer to mineral resource notes for metal price assumptions used for GoldEq grade calculation

www.newgold.com

TSX/NYSE AMEX US: NGD

96

Cerro San Pedro Sulphide Overview

Reserve Pit
Resource Pit

Manto Sulphides
@ > 2.5 g/t AuEq

Heap Leach
Oxides
@ > 0.1 g/t Au

Poryhyry
Sulphides
@ > 0.4 g/t AuEq

1,500 meters
www.newgold.com

TSX/NYSE AMEX US: NGD

97

Cerro San Pedro Sulphide Overview (cont‟d)
E-W Section

INAH
Boundary

Reserve Pit
Resource Pit

Poryhyry
Sulphides

Heap Leach
Oxides
@ > 0.1 g/t Au

@ > 0.4 g/t AuEq

www.newgold.com

TSX/NYSE AMEX US: NGD

98

Cerro San Pedro Sulphide 2010 Plan

2010 Program

Complete preliminary metallurgical testing on porphyry sulphide mineralization types in first
quarter

Preliminary scoping study / economic assessment beginning late in first quarter

20,000 meter infill/delineation drilling program to upgrade and expand sulphide resource in
second half of 2010

Updated mineral reserve and resource estimate at year-end

Pre-feasibility decision in Q1 2011

www.newgold.com

TSX/NYSE AMEX US: NGD

99

Peak Mines 2009 Results
2009 Highlights
Mine Extensions
• Converted 59koz gold & 9Mlbs copper to Ore Reserves
• Replaced 2009 production and added 12koz of gold to reserves
• Extension of New Occidental down plunge
Mine Corridor
• Jubilee: Intersected 8m @ 2.69 g/t Au, 5.26% Cu, 37.5 g/t Ag
• Great Cobar: New target defined below historic Great Cobar mine

 Best previous intersection 16m of 5.65% Cu, 0.79 g/t Au
• Fortitude SE: MIMDAS deep geophysical survey completed
 New drill targets identified along 4 km trend extending from Perseverance
Regional

• Positive results from 3 out of 4 drill targets tested - Follow-up planned for 2010
• Norma Vale: 5m @ 0.13 g/t Au, 0.20% Cu, 0.46%
• Continued generation of new exploration targets along Cobar regional trend

www.newgold.com

TSX/NYSE AMEX US: NGD

100

Peak Mines Overview
Perseverance

Peak

New Occidental

Chesney

New Cobar

Great Cobar

810 Koz Au

1,465 Koz Au

1,465 Koz Au

165 Koz Au

430 Koz Au

45 Koz Au

84 Mlb Cu

115 Mlb Cu

11 Mlb Cu

61 Mlb Cu

43 Mlb Cu

Fort
Bourke

172 Mlb Cu

Fortitude
New
Cobar
Deeps

Chesney
Deeps

Great
Cobar

Comstock
Deeps

Zone
D

Peak
Perseverance
Fortitude SE

Chesney
New
Occidental

New
Cobar
Great
Cobar

N
S

N

11 kilometers
www.newgold.com

TSX/NYSE AMEX US: NGD

101

Peak Mines Overview (cont‟d)

www.newgold.com

TSX/NYSE AMEX US: NGD

102

Peak Mines Exploration
Exploration Targets
• 70km of prospective tenements on the
mineralised trend, including the Peak Mine
Corridor
• High resolution gravity and airborne magnetic
surveys used to detect alteration around Cobarstyle ore bodies
• 3D model created and calibrated against known
deposits
• Ongoing target identification and prospect drill
testing continues
• Cutting edge science – significant advantage
over competitors

www.newgold.com

TSX/NYSE AMEX US: NGD

103

Peak Mines 2010 Plan

2010 Outlook

• Mine Extensions: Continued exploration and resource delineation at Perseverance D, Chesney,
New Cobar Deeps and New Occidental Deeps
• Mine Corridor: Ongoing drilling at Jubilee, Great Cobar, first-pass drilling at Fortitude Southeast,
Comstock Deeps and Fort Bourke North
• Regional: Follow-up at Norma Vale, Mafeesh, Rookery South, Rookery East, Rookery Fault,
Newey, Nymagee and other targets

www.newgold.com

TSX/NYSE AMEX US: NGD

104

New Afton
C-Zone Resource

C-Zone
Looking SW

Looking NE
www.newgold.com

TSX/NYSE AMEX US: NGD

105

Greenfields Exploration

Liberty Bell, Alaska (100%)

~3,000

meter reconnaissance drill program completed in 2009
Follow-up drilling planned for 2010

Rio Figueroa Joint Venture, Chile (Antofagasta option for 70%)

New exploration drilling permit received December 2009
8,000+ meter drill program planned for 2010

www.newgold.com

TSX/NYSE AMEX US: NGD

106

New Gold 2010 Analyst Day

Closing Remarks
Randall Oliphant – Executive Chairman

Delivering on Growth
Disciplined Growth
• Successfully combined four junior
gold companies over the last 18
months
• Management and Board with track
record of building companies and
creating shareholder value
• Focus on opportunities that will
create a better New Gold

Enhancing Value – El Morro
• Creative structure enhances
economics and maintains flexibility
• Continue to participate in World
Class asset
• Significantly enhanced financial
flexibility
Additional Initiatives
• Amapari strategic review

Operational Execution
• Multiple quarters of delivering on
guidance
• Focus on continued production
growth and cash cost reduction
• Share best practices across
operations
• Deliver New Afton on time and on
budget

Maintaining a Strong Financial
Position
• New Gold has gone from Net Debt
to Net Cash position during 2009
• Development projects fully funded
• Asset Backed Notes from LongTerm Investments to Cash
www.newgold.com

TSX/NYSE AMEX US: NGD

108

New Gold 2010 Analyst Day

Appendix

Reserves and Resource Notes
Mineral reserves are contained within measured and indicated mineral resources. Measured and indicated mineral resources that are not mineral
reserves do not have demonstrated economic viability. Inferred mineral resources are not known with the same degree of certainty as measured and
indicated resources, do not have demonstrated economic viability, and are exclusive of mineral reserves.
1) Mineral Reserves for the company’s mining operations and development projects have been calculated based on the following metal prices and
lower cut-off criteria:
Mineral Property

Gold (US$/oz)

Silver (US$/oz)

Copper (US$/lb)

Lower Cut-off

Mesquite

$800

-

-

0.21g/t Au – Oxide reserves
0.41g/t Au – Sulphide reserves

Cerro San Pedro

$800

$12.00

-

US$2.58/t NSR

Peak Mines

$800

$12.00

$2.00

A$118 – 152/t NSR

New Afton

$800

$12.00

$2.00

US$19/t NSR

El Morro

$500

-

$1.25

0.30% CuEq

Mineral reserves have been estimated and reported in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum
and National Instrument 43-101, or the AusIMM JORC equivalent.
2) Mineral Resources for the company’s mining operations and development projects have been calculated based on the following metal prices and
lower cut-off criteria:
Mineral Property

Gold
(US$/oz)

Silver
(US$/oz)

Copper
(US$/lb)

Zinc
(US$/lb)

Lead
(US$/lb)

Mesquite

$900

-

-

-

-

Cerro San Pedro

$900

$15.00

-

$1.00

$0.75

0.1g/t Au – Oxide resources
0.4g/t AuEq – Sulphide resources
2.5g/t AuEq – High grade manto resources

Peak Mines

$800

$12.00

$2.00

$0.80

$0.60

A$95/t NSR

New Afton

$900

$15.00

$2.00

0.4% CuEq – All resources

El Morro

$500

-

$1.25

0.30% CuEq – All resources

Amapari

$900

-

-

-

-

Lower Cut-off
0.1 g/t Au – All resources

0.5-0.7g/t Au – O/P; 1.4g/t Au – U/G

Mineral resources have been estimated and reported in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum
and National Instrument 43-101, or the AusIMM JORC equivalent.
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Reserves and Resource Notes (Cont‟d)
3) Cerro San Pedro
Cerro San Pedro mineral resources include measured, indicated and a portion of inferred resources that are contained within a “Mineral Resource
Pit” based on metal prices of $900/oz gold, $15.00/oz silver, $1.00/lb zinc and $0.75/lb lead at lower cut-offs of 0.1 g/t Au for oxide mineralization and
0.4 g/t AuEq for sulphide mineralization. Inferred resources also include potentially economic mineralization extending outside the limits of the
“Mineral Resource Pit” which is delimited by lower cut-off grade shells of 0.1 g/t Au for oxide mineralization and 0.4 g/t AuEq for sulphide
mineralization.

4) El Morro
El Morro mineral reserve and resources tonnes and grade are reported on a 100% basis; contained metals are reported on a 30% basis to reflect New
Gold’s 30% ownership interest in the project.

El Morro mineral reserves and resources have been reported based on cut-off of 0.3% copper-equivalent (“EqCu”) where
EqCu(%) = Cu(%) + 0.592 x Au (g/t) and Cu(%) = percent copper, Au(g/t) = grams per tonne gold, and 0.592 represents a constant based
on metal prices of $1.25/lb copper and $500/oz gold and average metal recoveries for the deposit.

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Reserves and Resource Notes (Cont‟d)

4) Qualified Persons
The following table sets out the individuals who are the Qualified Persons as defined by Canadian National Instrument 43-101 in connection with
New Gold’s Mineral Reserve and Mineral Resource Statements as of December 31, 2009.
Mesquite
Reserves
Resources
Cerro San Pedro
Reserves
Resources
Peak Mines
Reserves
Resources
New Afton
Reserves
Resources
El Morro
Reserves

Mr. Hubert Schimann, P.Eng. and Corporate Mining Engineer for New Gold Inc.
Mr. Richard J. Lambert, P.E. and currently Principal Mining Consultant for Scott Wilson Roscoe Postle Assoc.
Mr. Stuart Collins, P.E. and Principal Mining Consultant for Scott Wilson Roscoe Postle & Assoc.
Mr. Rex Berthelsen, FAusIMM, CPGeo and Principal Geologist for New Gold Inc.

Mr. Sean Pearce, AusIMM, Manager Mining for Peak Gold Mines Pty. Ltd.
Mr. Rex Berthelsen, FAusIMM, CPGeo and Principal Geologist for New Gold Inc.
Mr. Dennis Bergen, P.Eng. and Associate Principal Mining Engineer for Scott Wilson Roscoe Postle & Assoc.
Mr. David Rennie, P. Eng. and Principal Geologist for Scott Wilson Roscoe Postle Assoc.

Resources

Mr. Richard J. Lambert, P.E. and currently Principal Mining Consultant for Scott Wilson Roscoe Postle Assoc.
(formerly Principal Mining Engineer for Pincock, Allen & Holt Inc.)
Mr. Barton G. Stone, P. Geo. and Chief Geologist for Pincock, Allen & Holt Inc.

Resources

Mr. Rex Berthelsen, FAusIMM, CPGeo and Principal Geologist for New Gold Inc.

Amapari

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