2016 Financial Results WebcastFebruary 16, 2017

Speaker

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Hannes Portmann

President and CEO

Cautionary statements

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTSCertain information contained in this presentation, including any information relating to New Gold’s future financial or operating performance are “forward looking”. All statements in thispresentation, other than statements of historical fact, which address events, results, outcomes 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”, “targeted”, “estimates”, “forecasts”, “intends”, “anticipates”, “projects”, “potential”, “believes” or variations of such words and phrases or statementsthat certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation of such terms. Forward-lookingstatements in this presentation include the statements made under “2017 Guidance” and “Projects Update - Rainy River - 2017 Production and Cost Guidance”, as well as otherstatements elsewhere in this presentation, including, among others, statements with respect to: guidance for production, operating expense, total cash costs and all-in sustaining costs,and the factors contributing to those expected results, as well as expected capital and other expenditures; planned development activities for 2017 at the Rainy River project, includingthe completion and commissioning of the processing facilities; planned preparations for operations at the Rainy River project, including the mining rate, removal of overburden and waste,and storage of water, and stock piling of ore prior to first production ; the expected production, costs, economics, grade and other operating parameters of the Rainy River project; thecapacity of the starter dam; the expected production, costs, economics and operating parameters of the Rainy River project; the capacity of the starter dam; targeted timing for permits,including the amendment to Schedule 2 of the Metal Mining Effluent Regulations; targeted timing for commissioning, start-up, production and commercial production; and targeting timingfor development and other activities related to the Rainy River project.

All forward-looking statements in this presentation are based on the opinions and estimates of management as of the date such statements are made and are subject to important riskfactors and uncertainties, many of which are beyond New Gold’s ability to control or predict. Certain material assumptions regarding such forward-looking statements are discussed in thispresentation, New Gold’s annual and quarterly management’s discussion and analysis (“MD&A”), its Annual Information Form and its Technical Reports filed at www.sedar.com. Inaddition to, and subject to, such assumptions discussed in more detail elsewhere, the forward-looking statements in this presentation are also subject to the following assumptions: (1)there being no significant disruptions affecting New Gold’s operations; (2) political and legal developments in jurisdictions where New Gold operates, or may in the future operate, beingconsistent with New Gold’s current expectations; (3) the accuracy of New Gold’s current mineral reserve and mineral resource estimates; (4) the exchange rate between the Canadiandollar, Australian dollar, Mexican peso and U.S. dollar being approximately consistent with current levels; (5) prices for diesel, natural gas, fuel oil, electricity and other key supplies beingapproximately consistent with current levels; (6) equipment, labour and materials costs increasing on a basis consistent with New Gold’s current expectations; (7) arrangements with FirstNations and other Aboriginal groups in respect of the Rainy River project being consistent with New Gold’s current expectations; (8) all required permits, licenses and authorizations,including the amendment to Schedule 2 of the Metal Mining Effluent Regulations, being obtained from the relevant governments and other relevant stakeholders within the expectedtimelines; (9) the results of the feasibility study for the Rainy River project being realized; and (10) in the case of production, cost and expenditure outlooks at the operating mines and theRainy River project for 2017, commodity prices and exchange rates being consistent with those estimated for the purposes for 2017.

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 causeactual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, withoutlimitation: significant capital requirements and the availability and management of capital resources; additional funding requirements; price volatility in the spot and forward markets formetals and other commodities; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States, Australia and Mexico;discrepancies between actual and estimated production, between actual and estimated mineral reserves and mineral resources and between actual and estimated metallurgicalrecoveries; fluctuation in treatment and refining charges; changes in national and local government legislation in Canada, the United States, Australia and Mexico or any other country inwhich 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 maycarry on business; the speculative nature of mineral exploration and development, including the risks of obtaining and maintaining the validity and enforceability of the necessary licensesand permits and complying with the permitting requirements of each jurisdiction in which New Gold operates, including, but not limited to: in Canada, obtaining the necessary permits forthe Rainy River project; and in Mexico, where Cerro San Pedro has a history of ongoing legal challenges related to our environmental authorization; the lack of certainty with respect toforeign 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 tocurrent and future legal challenges New Gold is or may become a party to; diminishing quantities or grades of mineral reserves and mineral resources; competition; inherent uncertaintieswith cost estimates and estimated schedule for the construction and commencement of production at Rainy River as contemplated; loss of key employees; rising costs of labour,supplies, fuel and equipment; actual results of current exploration or reclamation activities; uncertainties inherent to mining economic studies including the feasibility studies for the RainyRiver project; 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 mineralproperties; unexpected delays and costs inherent to consulting and accommodating rights of Indigenous groups; risks, uncertainties and unanticipated delays associated with obtainingand maintaining necessary licenses, permits and authorizations and complying with permitting requirements, including those associated with the amendment to Schedule 2 of the MetalMining Effluent Regulations for the Rainy River project. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, includingenvironmental events and hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses and risks associated with the start ofproduction of a mine, such as Rainy River, (and the risk of inadequate insurance or inability to obtain insurance to cover these risks) as well as “Risk Factors” included in New Gold’sdisclosure documents filed on and available at www.sedar.com. Forward-looking statements are not guarantees of future performance, and actual results and future events couldmaterially differ from those anticipated in such statements. All of the forward-looking statements contained in this presentation are qualified by these cautionary statements. New Goldexpressly 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 withapplicable securities laws.

The footnotes, endnotes and appendices to this presentation contain important information. The endnotes and appendices are found at the end of the presentation.

ALL AMOUNTS IN U.S. DOLLARS UNLESS OTHERWISE STATED

Highlights

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$318 million

Operating Margin

2016 Gold Production and Costs 2016 Revenues/Operating Margin(2) 2016 Cash Generated from

Operations before Working Capital(3)

Balance Sheet Corporate Development Rainy River

Strengthened financial flexibility

through sale of El Morro Stream

for $65 million

First production scheduled for

September 2017, commercial

production scheduled for

November 2017

Mining rates tracking in line with

updated plan

$186 million

Cash balance at Dec 31, 2016

Further increased company’s cash

flow certainty with gold option

contracts and copper hedges over

first six months of 2017

1. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”.

2. Refer to Endnote on operating margin under the heading “Non-GAAP Measures”.

2. Refer to Endnote on net cash generated from operations before changes in working capital under the heading “Non-GAAP Measures”.

$684 million

Revenues

$302 million

$0.59 per share

382 thousand oz

$692 per oz

All-in sustaining costs(1)

$640 per oz

Operating expense

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Three months

ended Dec 31

Twelve months

ended Dec 31

(in millions of U.S. dollars, except per share amounts) 2016 2015 2016 2015

Revenues $170 $199 $684 $713

Operating margin(2) 56 83 318 293

Adjusted net (loss)/earnings(3) (2) 3 24 (11)

Adjusted net (loss)/earnings per share(3) nil 0.01 0.05 (0.02)

Net (loss)/earnings (20) (10) 3 (201)

Net (loss)/earnings per share (0.04) (0.02) 0.01 (0.40)

Cash generated from operations before changes

in non-cash operating working capital(4) 69 88 302 276

Cash generated from operations 52 85 282 263

$1,094

$1,211

GOLD ($/oz):

11%

$2.16$2.45

COPPER ($/lb):

13%

$14.44

$16.80

SILVER ($/oz):

16%

Average Realized Prices(1) Financial Summary

$1,149$1,255

$2.42$2.23

$15.38$17.15

9%

(8%)

12%

1. Refer to Endnote on average realized prices under the heading “Non-GAAP Measures”.

2. Refer to Endnote on operating margin under the heading “Non-GAAP Measures”.

3. Refer to Endnote on adjusted net earnings under the heading “Non-GAAP Measures”.

4. Refer to Endnote on net cash generated from operations before changes in working capital under the heading “Non-GAAP Measures”.

5. The company has included new revenue disclosures. Revenue per ounce and per pound is net of treatment and refining changes. Fourth quarter 2016: Gold-$1,176/oz, Silver-$16.19/oz, Copper-$2.22/lb. Full-year 2016:Gold-$1,219/oz, Silver-$16.68/oz, Copper-$2.03/lb .

Consolidated financial summary

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2016 free cash flow generation

$141

$182

New Afton ($ million)

Peak Mines ($ million)

Mesquite ($ million)

Cerro San Pedro ($ million)

All operations generating free cash flow

$34

$70Operating margin(1)

Free cash flow(2) $36

$60

$71Operating margin(1)

Free cash flow(2) Capex(3)

$18

$19Operating margin(1)

Free cash flow(2) Capex(3)

$809

$692

$340 $563

FY 2015 FY 2016

$1,149

$1,255

+66%

2016 Free Cash Flow Generation Margin Expansion ($/oz)

All-in Sustaining Costs(4) Margin(5) Realized Gold Price

$11

$1

Capex(3)

Operating margin(1)

Free cash flow(2) Capex(3)$41

1. Refer to Endnote on operating margin under the heading “Non-GAAP Measures”. Cerro San Pedro excludes impact of $24 million heap leach silver inventory write-down.

2. Free cash flow is equal to operating margin less capital expenditures.

3. Capex is inclusive of sustaining and growth capital expenditures.

4. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”.

5. Margin equal to gold price less all-in sustaining costs.

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Rainy River update

• Rainy River leadership team completed a

review of the project’s mining and construction

plan during January 2017

• The project is targeted to start-up in

September 2017

• Installation of mechanical, piping, electrical and

instrumentation in processing facilities over

65% complete through mid-February

• Staged commissioning of processing facilities

scheduled to commence with primary crusher in

March 2017

• SAG and ball mill shells in place,

commissioning scheduled to commence in the

second quarter

• Dry and wet commissioning of full process

facility scheduled for August 2017

Rainy River

Process plant and leach thickener

Ball Mill

Undrawn Credit

Facility(2)

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Liquidity position

1. Cash and cash equivalents as at December 31, 2016.

2. $122 million of $400 million facility used for Letters of Credit at December 31, 2016.

3. Remaining capital from January 1, 2017 to November 2017 commercial production.

Ongoing

Sustaining

Free Cash Flow

Generating free cash flow

with gold and copper price

certainty through option

contracts/hedges through

June 2017

$429million

Pro Forma

Liquidity Position

Cash and cash

equivalents(1)

$186 million

$178 million

Proceeds from

El Morro stream sale

$65 millionExpected to close in

February 2017

Remaining Rainy River capital $515 million(3)

Currently evaluating further opportunities to increase financial flexibility

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Reserves summary

14.7 15.0

• 2016 year-end gold reserves in line

with prior year

• Key changes in gold reserves mainly

attributable to conversion of Chronos

at Peak Mines, an updated open pit

and underground mine plan at Rainy

River, offset by 2016 mine depletion

• 2016 year-end mineral reserve

assumptions:

• $1,250 per ounce gold

• $15 per ounce silver

• $2.75 per pound copper

• CDN/USD $1.25

>90%

1. For a detailed breakdown of Mineral Resources and Reserves by category, refer to New Gold’s news release dated February 15, 2017 titled “New Gold Announces 2016 financial results with record low costs driving strong margins and cash flow”.

Refer to Endnotes under the heading “Cautionary note to U.S. readers concerning estimates of mineral reserves and mineral resources” and “Technical Information”.

1.1 1.2 76.0 76.0

Gold Reserves(1) (Moz)

Copper Reserves(1) (Blbs) Silver Reserves(1) (Moz)

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2017 consolidated guidance

GOLD

PRODUCTION (Koz)

380-430• Planned start-up of

Rainy River

OPERATING

EXPENSE ($/oz)

$630-$670• In line with 2016

ALL-IN SUSTAINING

COSTS(1) ($/oz)

$825-$865• Higher costs associated

with Rainy River start-up

and higher sustaining

capital expenditures

COPPER

PRODUCTION (Mlbs)

100-110

KEY INPUT

ASSUMPTIONS

Copper $2.50/lb

Silver $16.00/oz

CDN/USD $1.30

AUD/USD $1.35

MXN/USD $20.00

• Higher copper grade at

New Afton

• Peak Mines to remain in

line with 2016

1. Refer to Endnote on all-in sustaining costs under the heading “Non-GAAP Measures”.

2. Estimated consolidated silver production in 2017 approximately 1.1 million ounces.

New Gold investment thesis

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Establishing the

leading intermediate

gold company

Invested and experienced team

Portfolio of assetsin top-ratedjurisdictions

Peer-leading growth pipeline

A history of value creation

Amonglowest-cost producers with established track record

Endnotes

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CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MINERAL RESERVES AND MINERAL 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 the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards for Mineral Resources and Mineral

Reserves adopted by CIM Council on May 10, 2014 and incorporated by reference in National Instrument 43-101. While the terms “Mineral Resource”, “Measured Mineral Resource”,

“Indicated Mineral Resource” and “Inferred Mineral Resource” are recognized and required by Canadian securities regulations, they are not defined terms under standards of the United States

Securities and Exchange Commission. As such, certain information contained in this presentation concerning descriptions of mineralization and mineral 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. Under Canadian rules, estimates of inferred mineral resources

may not form the basis of feasibility or pre-feasibility studies. It cannot be assumed that all or any part of an “Inferred Mineral Resource” will ever be upgraded to a higher confidence category.

Readers are cautioned not to assume that all or any part of an “Inferred Mineral Resource” exists or is economically or legally mineable.

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 estimation is made. Readers are cautioned not to assume that all or any part of the measured or indicated mineral resources will ever be

converted into mineral reserves. 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

The scientific and technical information contained herein has been reviewed and approved by Mark A. Petersen, Vice President, Exploration of New Gold, except for the scientific and technical

information regarding capital costs at Rainy River set out under the heading "Projects Update - Rainy River - Capital Expenditures", which has been reviewed and approved by Arshya

Qureshi, Co-Founder and Project Manager at LQ Consulting and Management Inc. Mr. Qureshi is a Professional Engineer registered with Professional Engineers of Ontario. Mr. Petersen is a

SME Registered Member, AIPG Certified Professional Geologist. Mr. Petersen and Mr. Qureshi are "Qualified Persons" for the purposes of NI 43-101.

For additional technical information on New Gold’s material properties, including a detailed breakdown of Mineral Reserves and Mineral Resources by category, as well as key assumptions,

parameters and risks, refer to New Gold’s Annual Information Form for the year ended December 31, 2015 filed on www.sedar.com.

Endnotes (cont’d)

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NON-GAAP MEASURES

(1) ALL-IN SUSTAINING COSTS

“All-in sustaining costs” per ounce is a non-GAAP financial measure. Consistent with guidance announced in 2013 by the World Gold Council, an association of various gold mining companies

from around the world of which New Gold is a member, New Gold defines “all-in sustaining costs” per ounce as the sum of total cash costs, capital expenditures that are sustaining in nature,

corporate general and administrative costs, capitalized and expensed exploration that is sustaining in nature and environmental reclamation costs, all divided by the ounces of gold sold to

arrive at a per ounce figure. New Gold believes this non-GAAP financial measure provides further transparency into costs associated with producing gold and assists analysts, investors and

other stakeholders of the company in assessing the company’s operating performance, its ability to generate free cash flow from current operations and its overall value. This data is furnished

to provide additional information and is a non-GAAP financial measure. All-in sustaining costs presented do not have a standardized meaning under IFRS and may not be comparable to

similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS and is not

necessarily indicative of cash flow from operations under IFRS or operating costs presented under IFRS. Further details regarding historical all-in sustaining costs and a reconciliation to the

nearest IFRS measures are provided in the MD&A accompanying New Gold’s financial statements filed from time to time on www.sedar.com.

“Sustaining costs” is a non-GAAP financial measure. New Gold defines sustaining costs as the difference between all-in sustaining costs and total cash costs, being the sum of net capital

expenditures that are sustaining in nature, corporate general and administrative costs, capitalized and expensed exploration that is sustaining in nature, and environmental reclamation costs.

Management uses sustaining costs to understand the aggregate net result of the drivers of all-in sustaining costs other than total cash costs. The line items between cash costs and all in

sustaining costs in the tables below break down the components of sustaining costs. Sustaining costs is intended to provide additional information only and does not have any standardized

meaning under IFRS and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of

performance prepared in accordance with IFRS.

(2) TOTAL CASH COSTS

“Total cash costs” per ounce is a non-GAAP financial measure which is calculated in accordance with a standard developed by The Gold Institute, a worldwide association of suppliers of gold

and gold products that ceased operations in 2002. 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. The company believes that certain investors use this information to evaluate the company’s performance and ability to

generate liquidity through operating cash flow to fund future capital expenditures and working capital needs. This measure, along with sales, is considered to be a key indicator of the

company’s ability to generate operating earnings and cash flow from its mining operations. Total cash costs include mine site operating costs such as mining, processing and administration

costs, royalties, production taxes, and realized gains and losses on fuel contracts, but are exclusive of amortization, reclamation, capital and exploration costs and net of by-product sales.

Total cash costs are then divided by ounces of gold sold to arrive at a per ounce figure. Co-product cash costs remove the impact of other metal sales that are produced as a by-product of

gold production and apportion the cash costs to each metal produced on a percentage of revenue basis, and subsequently divides the amount by the total ounces of gold or silver or pounds of

copper sold, as the case may be, to arrive at per ounce or per pound figures. Unless otherwise indicated, all total cash cost information in this presentation is net of by-product sales. This data

is furnished to provide additional information and is a non-GAAP financial measure. Total cash costs and co-product cash costs presented do not have a standardized meaning under IFRS

and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared in

accordance with IFRS and is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under GAAP. Further details regarding historical total cash costs

and a reconciliation to the nearest IFRS measures are provided in the MD&A accompanying New Gold’s financial statements filed from time to time on www.sedar.com.

(3) AVERAGE REALIZED PRICE

“Average realized price per ounce or pound sold” is a non-GAAP financial measure with no standard meaning under IFRS. Management uses this measure to better understand the price

realized in each reporting period for gold, silver, and copper sales. Average realized price is intended to provide additional information only and does not have any standardized definition

under IFRS; it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate this measure differently

and this measure is unlikely to be comparable to similar measures presented by other companies. Further details regarding average realized price and a reconciliation to the nearest IFRS

measure is provided in the MD&A accompanying New Gold’s financial statements filed from time to time on www.sedar.com.

Endnotes (cont’d)

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NON-GAAP MEASURES

(4) CASH GENERATED FROM OPERATIONS BEFORE CHANGES IN WORKING CAPITAL

“Cash generated from operations before changes in working capital” is a non-GAAP financial measures with no standard meaning under IFRS, excludes changes in non-cash operating

working capital. Management uses this measure to evaluate the Company’s ability to generate cash from its operations before temporary working capital changes. Further details regarding

cash generated from operations before changes in working capital and a reconciliation to the nearest IFRS measure is provided in the MD&A accompanying New Gold’s financial statements

filed from time to time on www.sedar.com.

(5) ADJUSTED NET (LOSS)/EARNINGS

“Adjusted net (loss)/earnings” and “adjusted net (loss)/earnings per share” are non-GAAP financial measures. Net (loss)/earnings have been adjusted and tax affected for the group of costs in

“Other gains and losses” on the condensed consolidated income statement. The adjusted entries are also impacted for tax to the extent that the underlying entries are impacted for tax in the

unadjusted net (loss)/earnings from continuing operations. The company uses this measure for its own internal purposes. Management’s internal budgets and forecasts and public guidance

do not reflect fair value changes on senior notes and non-hedged derivatives, foreign currency translation and fair value through profit or loss and financial asset gains/losses.

Consequently, the presentation of adjusted net earnings and adjusted net earnings per share enables investors and analysts to better understand the underlying operating performance of our

core mining business through the eyes of management. Management periodically evaluates the components of adjusted net earnings and adjusted net earnings per share based on an

internal assessment of performance measures that are useful for evaluating the operating performance of our business and a review of the non-GAAP measures used by mining industry

analysts and other mining companies. Adjusted net (loss)/earnings and adjusted net (loss)/earnings per share are intended to provide additional information only and do not have any

standardized meaning under IFRS and may not be comparable to similar measures presented by other companies. They should not be considered in isolation or as a substitute for measures

of performance prepared in accordance with IFRS. The measures are not necessarily indicative of operating profit or cash flows from operations as determined under IFRS.

(6) OPERATING MARGIN

“Operating margin” is a non-GAAP financial measure with no standard meaning under IFRS, which management uses to evaluate the Company’s aggregated and mine-by-mine contribution to

net earnings before non-cash depreciation and depletion charges.

Contact information

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Investor Relations

Julie TaylorDirector, Corporate Communications and Investor Relations

416-324-6015

julie.taylor@newgold.com