NEW GOLD INC. (NGD)

Feasibility Study Background

The Feasibility Study was carried out by a team which included, and was coordinated by, Hatch Ltd. ("Hatch") which completed the processing and surface infrastructure engineering components of the study. Mine planning and reserves were completed by AMC Consultants Pty Ltd. ("AMC"), and Scott Wilson RPA completed the geology and resource sections. Environmental services and permitting were completed by Rescan Environmental Services Ltd. ("Rescan"). The tailings disposal analysis was completed by Vector Engineering Inc. (“Vector”).  The groundwater modeling was carried out by Piteau Associates Engineering Ltd. (“Piteau”).  The purpose of the Feasibility Study was to determine the potential for, and the technical and economic parameters of, developing the New Afton Project into a new bulk underground mining operation.

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FEASIBILITY STUDY BACKGROUND

The FS was carried out by a team which included, and was coordinated by, Hatch Ltd. ("Hatch") which completed the processing and surface infrastructure engineering components of the study. Mine planning and reserves were completed by AMC Consultants Pty. Ltd. ("AMC"), and Scott Wilson Roscoe Postle Associates Inc. ("Scott Wilson RPA") completed the geology and resource sections. Environmental services and permitting were completed by Rescan Environmental Services Ltd. ("Rescan"). The Tailings disposal analysis was completed by Vector Engineering Inc. (“Vector”).  The groundwater modeling was carried out by Piteau Associates Engineering Ltd. (“Piteau”).  The purpose of the FS was to determine the potential for, and the technical and economic parameters of, developing the New Afton Project into a new bulk underground mining operation.

The New Afton FS was co-ordinated by Mr. John Shillabeer. P.Eng., of Hatch (who is a Qualified Person under National Instrument 43-101), and the technical content of the news release was reviewed and approved by him.  A NI 43-101 compliant Technical Report (“The Technical Report”), summarizing the FS, will be filed on SEDAR as soon as possible.  It should be noted that the capital cost estimate, operating cost estimate, and economic analysis described are subject to important qualifications, assumptions and exclusions, all of which will be set out in the Technical Report.  To fully understand the cost estimates and economic analysis the Technical Report should be read in its entirety.

FEASIBILITY STUDY BACKGROUND

The FS was carried out by a team which included, and was coordinated by, Hatch Ltd. ("Hatch") which completed the processing and surface infrastructure engineering components of the study. Mine planning and reserves were completed by AMC Consultants Pty. Ltd. ("AMC"), and Scott Wilson Roscoe Postle Associates Inc. ("Scott Wilson RPA") completed the geology and resource sections. Environmental services and permitting were completed by Rescan Environmental Services Ltd. ("Rescan"). The Tailings disposal analysis was completed by Vector Engineering Inc. (“Vector”).  The groundwater modeling was carried out by Piteau Associates Engineering Ltd. (“Piteau”).  The purpose of the FS was to determine the potential for, and the technical and economic parameters of, developing the New Afton Project into a new bulk underground mining operation.

The New Afton FS was co-ordinated by Mr. John Shillabeer., P.Eng., of Hatch (who is a Qualified Person under National Instrument 43-101), and the technical content of this news release has been reviewed and approved by him.  A NI 43-101 compliant Technical Report (“The Technical Report”), summarizing the FS, will be filed on SEDAR as soon as possible.  It should be noted that the capital cost estimate, operating cost estimate, and economic analysis described in this press release are subject to important qualifications, assumptions and exclusions, all of which will be set out in the Technical Report.  To fully understand the cost estimates and economic analysis the Technical Report should be read in its entirety.