OPERATIONAL HIGHLIGHTS

New Afton- Canada Close [x]

Estimated Average Annual Production
Gold:85,000 oz
Copper:75 million lbs

Cerro San Pedro - Mexico Close [x]

2008 PRODUCTION
2009 Targets
Gold:84,561 oz
Silver:1.1 million oz
Cash Cost/oz
(net of by product sales)
$432
Gold:90 - 100 thousand oz
Silver:1.1 – 1.3 million oz
Cash Cost/oz
(net of by product sales)
$550 – 570

El Morro - Chile Close [x]

Estimated Average Annual Production
Gold:94,000 oz
Copper:104 million lbs

Peak Mines - Australia Close [x]

2008 PRODUCTION
2009 Targets
Gold:100,493 oz
Copper:8.25 million lbs
Cash Cost/oz
(net of by product sales)
$477
Gold:90 - 100 thousand oz
Copper:13 – 15 million lbs
Cash Cost/oz
(net of by product sales)
$370 - $390

Amapari(1) - Brazil Close [x]

2008 PRODUCTION
2009 Targets
Gold:86,992 oz
Cash Cost/oz
(net of by product sales)
$748
Gold:10-12,000 oz(1)
(1) Amapari was placed on temporary care and maintenance on January 2, 2009. Production in 2009 will be limited to leaching of gold from previously stacked ore.


New Gold is an intermediate gold mining company with operating assets in Mexico and Australia, development projects in Canada and Chile, as well as exploration rights in British Columbia Canada, Alaska USA, Mexico, Chile and Brazil. Production for 2008 exceeded guidance by 22,046 ounces for a total of 272,046 gold ounces from New Gold’s three operating properties – Peak Mines in Australia, Cerro San Pedro in Mexico and Amapari in Brazil (1). Significant progress was made at the company's two development projects: the New Afton project currently under construction in Canada is expected to enter full production in the latter part of 2012. In addition, New Gold owns a 30% interest in the El Morro development project in Chile with joint venture partner and project operator, Xstrata Copper, which owns the remaining 70%. The project entered the permitting stage in late 2008.

(1) Amapari was placed on temporary care and maintenance on January 2, 2009. Production in 2009 will be limited to leaching of gold from previously stacked ore.

 

Operational Summary

The 2008 annual production and cash cost information below includes results for the period prior to the close of the business combination between New Gold, Peak Gold and Metallica Resources on June 30, 2008.

 PeakCerro San PedroAmapari
Ore milled (000s tonnes) 769 8,917
1,877
Gold


Milled grade g/t 4.7 0.6 2.0
Total Recovery Au % 87% 48.7% 68.5%
Total Production (000s oz) 100.5 84.6 87
Silver


Milled grade g/t n/a 24.1 n/a
Total Recovery Ag % n/a 15.7% n/a
Total Production (million oz) n/a 1.1 n/a
Copper


Milled grade g/t 0.62% n/a n/a
Total Recovery CU % 78.5% n/a n/a
Total Production (000s lbs) 8,249 n/a n/a
 


Total Cash Cost US$/oz 477 432 748
Capital Expenditure US$ (millions) 29.4 13.2 7.1