New Gold

New Gold Inc. this week provided an update on the operation of its mill at the Rainy River Mine, located in northern Ontario.

In the late afternoon on April 24, management at the Rainy River mine temporarily shut down the mill to assess a buildup of water in the tailings management area, or TMA. Upon further examination over the ensuing days, it was determined that about 700,000 cubic meters of excess water was stored in the TMA, driven by the rapid spring melt and large snow pack this year in northern Ontario.

To manage the excess water, the company is transferring water from the TMA to the water management pond, or WMP. Extra pumping capacity has been installed and more pumping capacity is being added to expedite the water transfer. It is expected that the mill will be fully operational within five days, depending on precipitation levels during this period.

The company is working with the relevant regulators to expedite the deposition of tailings into Cell 3, which would significantly improve overall TMA water management. The company has taken advantage of the mill shutdown to accelerate maintenance activities that had been planned for later in May.

Mining and crushing operations have not been impacted and continue at planned levels, with ore being stockpiled and segregated for processing when the mill restarts. Management officials anticipate that any production delays will be offset so that the company will still be in a position to achieve its annual production guidance.

“Management is addressing the issue of excess water appropriately and in a manner that is consistent with our commitment to protecting our environment. We remain focused on executing our current mine plan and are confident that the mill will resume normal operations soon,” said Renaud Adams, CEO.

About New Gold Inc.

New Gold is a Canadian-focused intermediate gold mining company. The company has a portfolio of two core producing assets in top-rated jurisdictions, the Rainy River and New Afton Mines in Canada. The company also operates the Cerro San Pedro Mine in Mexico. In addition, New Gold owns 100 percent of the Blackwater project located in Canada. New Gold’s objective is to be a leading intermediate gold producer, focused on the environment and social responsibility. For further information on the company, visit www.newgold.com.

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