NewGold Press Releases

New Gold Eliminates Legacy Gold Hedges

Wed, 15 May 2013 16:30:00 -0400

(All figures are in US dollars unless otherwise indicated)

VANCOUVER, May 15, 2013 /CNW/ - New Gold Inc. ("New Gold") (TSX and NYSE MKT:NGD) today announces that the company has eliminated its legacy gold hedges that were associated with the 2008 project financing put in place to develop the Mesquite mine. As a result of Mesquite's successful start-up, the company repaid the loan in 2010, four years ahead of schedule. With the elimination of the hedges, New Gold's gold production and gold resource base now have full leverage to the gold price.

"Our constructive view on the gold price has led us to unwind the gold hedges," stated Randall Oliphant , Executive Chairman. "We believe the recent pullback in the gold price has provided us with a window to be opportunistic in eliminating the hedges. We look forward to the balance of 2013 and full year 2014 earnings and cash flow benefitting meaningfully as a result."

By unwinding the hedges, New Gold has removed the requirement to deliver 5,500 ounces of gold monthly at a fixed price of $801 per ounce from May 2013 through the end of 2014. In total, an additional 110,000 ounces of future production can now be sold at the prevailing spot gold price rather than the contract price of $801 per ounce. In total, the company paid $65.7 million to eliminate the gold hedges. The transaction was executed at an average spot price of $1,396 per ounce.

New Gold continues to have a strong balance sheet with significant financial flexibility and anticipates that the elimination of the hedges should result in even more robust earnings and cash flow going forward.

About New Gold Inc.

New Gold is an intermediate gold mining company. The company has a portfolio of four producing assets and two significant development projects. The combination of the New Afton Mine in Canada, the Cerro San Pedro Mine in Mexico, the Mesquite Mine in the United States and the Peak Mines in Australia position New Gold as one of the lowest cost producers in the industry. In 2013, the company is forecasting between 440,000 and 480,000 ounces of gold production. In addition to its four operating mines, New Gold owns 100% of the exciting Blackwater project in Canada and 30% of the world-class El Morro project located in Chile. For further information on the company, please visit www.newgold.com.

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this news release, including any information relating to New Gold's future financial or operating performance may be deemed "forward looking". All statements in this news release, other than statements of historical fact, that address events 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", "estimates", "forecasts", "intends", "anticipates", "projects", "potential", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur" or "be achieved" or the negative connotation. 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 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, 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 international, national and local government legislation in Canada, the United States, Australia, 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, in Canada obtaining the necessary permits for the Blackwater project, in Mexico where the Cerro San Pedro mine has a history of ongoing legal challenges related to our EIS and in Chile where the courts have temporarily suspended the approval of the environmental permit for the El Morro project; the lack of certainty with respect to 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; diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or reclamation activities; uncertainties inherent to economic studies in respect of the PEA for the Blackwater 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 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 "Risk Factors" included in New Gold's disclosure documents filed on and 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 news release 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.

Hannes Portmann
Vice President, Corporate Development
Direct: 1 (416) 324-6014
Email: info@newgold.com

New Gold Announces 2013 First Quarter Results - Increases Gold and Copper Resources at New Afton C-Zone by Over 300 Percent

Wed, 01 May 2013 16:04:00 -0400

(All figures are in US dollars unless otherwise indicated)

VANCOUVER, May 1, 2013 /CNW/ - New Gold Inc. ("New Gold") (TSX and NYSE MKT:NGD) today announces financial and operational results for the first quarter of 2013. The company is also pleased to provide an updated Mineral Resource estimate for the C-Zone at New Afton.

First Quarter 2013 and New Afton C-Zone Mineral Resource Update Highlights

First Quarter 2013

Gold production of 94,695 ounces
Total cash costs⁽¹⁾ of $485 per ounce, a decrease of $58 per ounce when compared to the same period of 2012
Net earnings of $36 million, or $0.08 per share
Net cash generated from continuing operations increased by 59% to $59 million from $37 million in the first quarter of 2012
Cash and cash equivalents of $672 million at March 31, 2013

New Afton C-Zone Mineral Resource update

Measured and Indicated gold and copper resources increased by over 300% to 0.3 million ounces and 211 million pounds
Measured and Indicated gold and copper grades increased to 0.77 grams per tonne gold and 0.77% copper from 0.62 grams per tonne and 0.68% copper
Inferred gold and copper resources increased by over 30% to 0.4 million ounces and 301 million pounds

"The first quarter provided a solid start to the year for our company. Consistent with our plans, the operations are expected to have progressively stronger quarters as we move through 2013. We look forward to quarterly increases in gold production and cash flow as a result," stated Randall Oliphant , Executive Chairman. "Beyond our focus on operations, we see continued scope to add meaningful value to our portfolio of assets with today's New Afton C-Zone update being just one example. For the C-Zone resource base to have already grown so substantially after just eight months of exploration is a testament to the continued potential of this mine."

During the first quarter, the company produced 94,695 ounces of gold at total cash costs⁽¹⁾ of $485 per ounce. The combination of solid gold production and well below industry average cash costs underpinned New Gold's financial results. The company generated revenue of $202 million, earnings from mine operations of $58 million, net earnings of $36 million, or $0.08 per share, and net cash generated from continuing operations of $59 million.

Operations Overview
New Gold 2013 First Quarter Summary Operational Results
	Three months ended
		March 31,
		2013	2012
Gold Production (thousand ounces)
New Afton		14.9	-
Cerro San Pedro		26.4	34.0
Mesquite		25.5	44.4
Peak Mines		27.9	20.9
Total Gold Production		94.7	99.3

Total Gold Sales		95.2	93.7
Average realized gold price ($ per ounce)		$1,494	$1,575

Silver Production (thousand ounces)
Cerro San Pedro		358.9	456.6

Total Silver Sales		360.9	439.1
Average realized silver price ($ per ounce)		$29.51	$32.70

Copper Production (million pounds)
New Afton		11.8	-
Peak Mines		4.2	3.7
Total Copper Production		16.0	3.7

Total Copper Sales		15.9	1.8
Average realized copper price ($ per pound)		$3.44	$4.14

Total Cash Costs⁽¹⁾ ($ per ounce)
New Afton		($770)	-
Cerro San Pedro		495	233
Mesquite		879	628
Peak Mines		819	915
Total Cash Costs⁽¹⁾		$485	$543

Average realized margin ($ per ounce)		$1,009	$1,032

Gold Production

Gold production and sales were similar to the prior year quarter. Production increases from New Afton now being part of New Gold's operating portfolio and higher gold grades at the Peak Mines were offset by lower production at Cerro San Pedro and Mesquite due to planned mining of lower grade ore.

New Afton's production increased in each consecutive month of the first quarter with further increases being seen in April. Production in early 2013 was impacted by the better-than-planned ramp up of the New Afton mill in the second half of 2012. As a result, the vast majority of New Afton's ore stockpile was milled in 2012. Thus, the company supplemented underground ore feed in January with remnant lower grade ore from the historical Afton open pit which also reduced the overall mill recoveries for the quarter. As planned, in late January, the installation of the permanent underground crusher was completed. This resulted in the underground mining rate steadily increasing to an average of 11,000 tonnes per day in March, which compares to an average mining rate of 7,200 tonnes per day in the fourth quarter of 2012.

As the New Afton mine and mill are now running at equivalent throughput rates, consistent with the operation's 11,000 tonne per day nameplate capacity, and at planned gold and copper grades, the company anticipates steady increases in gold and copper production as the year progresses.

At Cerro San Pedro and Mesquite, planned mine sequencing resulted in below reserve grade ore being placed on the leach pads which led to production being below that of the first quarter of 2012 when grades closer to reserve grade were mined. Per the company's plans, gold grades and production are scheduled to increase during the balance of the year. In addition, at Mesquite, the two haul trucks the company had planned to add to the fleet are now in operation. These trucks should enable Mesquite to increase the mining rate and ore tonnes placed on the leach pad.

Gold production at the Peak Mines increased by 33% when compared to the same period of 2012. The increase was primarily attributable to a 21% increase in gold grade and a 9% increase in ore tonnes processed.

Silver Production

Silver production was in line with the company's plans, however, below that of the same period of the prior year due to scheduled mining of a lower grade area of the Cerro San Pedro open pit.

Copper Production

Copper production increased by 334% when compared to the first quarter of 2012 driven by the combination of New Afton's contribution to production as well as higher production at the Peak Mines. New Afton's copper production profile during the quarter was consistent with that of its gold production outlined above. As monthly and quarterly copper production is expected to increase through 2013, New Gold's total cash costs⁽¹⁾ should continue to decline as further discussed below. Production at the Peak Mines increased when compared to the same period of 2012 through a combination of an increase in ore tonnes processed and a 9% increase in copper recoveries.

Total Cash Costs⁽¹⁾

New Gold's first quarter total cash costs⁽¹⁾ were $485 per ounce, declining from the first quarter of 2012 and remaining well below the industry average. The decrease in the company's cash costs was primarily driven by increased copper sales volumes which were partially offset by a combination of lower realized copper prices, lower silver sales volumes and realized prices as well as the scheduled mining of lower grade ore.

New Afton's total cash costs⁽¹⁾ were negative $770 per ounce on a by-product basis and $721 per ounce and $1.56 per pound on a co-product basis. Consistent with planned increases in gold and copper production during the remaining quarters of 2013, New Afton's cash costs are expected to decline over the balance of the year.

At Cerro San Pedro, costs were consistent with the company's quarterly plans. The increase in total cash costs⁽¹⁾ when compared to the same period of 2012 is attributable to the combination of a $4 million decrease in silver by-product revenue, the appreciation of the Mexican Peso and planned lower gold production.

Mesquite's total gross operating costs remained consistent with the prior year period with the mine benefitting from lower fuel and explosive costs. As such, the increase in total cash costs⁽¹⁾ per ounce sold was primarily driven by the planned mining of lower grade ore resulting in costs being spread over a lower production base.

Costs at the Peak Mines decreased by $96 per ounce when compared to the same period of the prior year. This decrease in total cash costs⁽¹⁾ was attributable to a combination of high copper by-product revenue, the depreciation of the Australian dollar and higher gold production. These benefits were partially offset by the sale of higher cost inventory.

On a consolidated basis, New Gold's total cash costs⁽¹⁾ are expected to steadily decline throughout the remainder of 2013.

All-in Sustaining Costs⁽²⁾

As part of the company's 2013 annual guidance released on February 5, 2013, New Gold estimated all-in sustaining costs⁽²⁾ for the year of $875 per ounce. The estimate included: total cash costs⁽¹⁾, corporate general and administrative expenses, exploration expenditures and sustaining capital. As this cost standard should be finalized by the World Gold Council in June, which will provide additional clarity on the treatment of certain costs, New Gold intends to provide its quarterly and year-to-date all-in sustaining costs⁽²⁾ that conform to the official standard as part of the company's second quarter results. At that time, New Gold also plans to confirm its 2013 full year estimate for all-in sustaining costs⁽²⁾ taking into account the formal definition, but does not anticipate it changing materially from the $875 per ounce previously discussed.

"We are proud of our operational performance in the first quarter, particularly given the lower grade ore processed at three of our four operations," stated Robert Gallagher , President and Chief Executive Officer. "We look forward to progressively stronger quarters as the year moves ahead and, importantly, remain on track with our guidance."

Financial Results Overview
New Gold 2013 First Quarter Summary Financial Results
	Three months ended
Figures in US$ millions, except per share amounts	March 31,
	2013	2012

Revenue	201.8	168.8

Earnings from Mine Operations
New Afton	18.4	-
Cerro San Pedro	22.6	40.0
Mesquite	3.1	27.5
Peak Mines	13.7	10.2
Earnings from Mine Operations	57.8	77.7

Net Earnings	36.3	33.5
Net Earnings per Share	0.08	0.07
Adjusted Net Earnings⁽³⁾	20.6	44.2
Adjusted Net Earnings per Share⁽³⁾	0.04	0.10

Cash Generated from Operations before Working Capital⁽⁴⁾	81.1	82.4
Pre-tax Cash Generated from Operations	68.2	66.1
Net Cash Generated from Operations	58.5	36.7

Revenue increased by 20% when compared to the same period of the prior year. The increase in revenue was attributable to higher gold and copper sales volumes which were partially offset by lower silver sales volumes as well as lower average realized prices for each of the three metals the company produces. Consistent with the quarter-over-quarter changes in consolidated gold production, the benefits of increased earnings from mine operations from New Afton and the Peak Mines were more than offset by decreases at Cerro San Pedro and Mesquite due to planned mining of lower grade ore at the company's two open pit operations. At Cerro San Pedro, the average gold grade was 0.32 grams per tonne compared to 0.46 grams per tonne in the first quarter of 2012 and a reserve grade of 0.50 grams per tonne. For full year 2013, Cerro San Pedro's average gold grade is expected to average approximately 10% above reserve grade, with this targeted improvement in grade benefitting the balance of 2013. Similarly, at Mesquite, the first quarter grade averaged 0.32 grams per tonne versus 0.59 grams per tonne in the prior year quarter and a reserve grade of 0.57 grams per tonne. As Mesquite is in a planned lower grade cycle, grades are expected to improve markedly through the balance of 2013, however, are scheduled to average approximately 30% below reserve grade for 2013. As previously noted, Mesquite's future quarters should also benefit from an increase in ore tonnes mined.

Net earnings in the first quarter of 2013 were $36 million, or $0.08 per share. Net earnings were positively impacted by a non-cash $23 million pre-tax gain on the mark to market of the company's share purchase warrants which was partially offset by a pre-tax foreign exchange loss of $6 million. Adjusted net earnings⁽³⁾ were $21 million, or $0.04 per share.

Net cash generated from operations increased by 59% during the first quarter when compared to the same period of the prior year. This increase was primarily driven by New Afton now being a meaningful contributor to the company's cash flow generation. In the first quarter of 2012, the company made a $7 million income tax payment at Cerro San Pedro related to 2011.

Development Project Update

El Morro

New Gold's share of the El Morro project provides the company with a 30% fully-carried interest in an advanced stage, world-class copper/gold project in northern Chile. Under the terms of New Gold's agreement with Goldcorp Inc. ("Goldcorp"), Goldcorp is responsible for funding New Gold's 30% share of capital costs. The carried funding accrues interest at a fixed rate of 4.58%. New Gold will repay its share of capital plus accumulated interest out of 80% of its share of the project's cash flow with New Gold retaining 20% of its share of cash flow from the time production commences.

The El Morro and La Fortuna deposits currently represent the two principal zones of gold-copper mineralization. Future exploration efforts will also test the potential for bulk-mineable gold and copper production below the bottom of the La Fortuna open pit.

Activity at site has been limited recently due to the previously announced temporary suspension of the project's environmental permit. The Chilean Environmental Permitting Authority, the Servicio de Evaluación Ambiental, is actively consulting with the group of indigenous people who asserted that the multiple rounds of consultation leading up to the approval of the Environmental Impact Assessment ("EIA") in March of 2011 were insufficient. It is anticipated this consultation process could be completed by late 2013 with the expectation that the modified EIA should be approved shortly thereafter. Project capital expenditures during the three months ended March 31, 2013 were $19 million (100% basis).

Blackwater

The company's Blackwater project was further advanced during the first quarter. In addition to completing the previously announced Mineral Resource update, the team focused on progressing the environmental assessment reports, completing required condemnation drilling for proposed infrastructure sites and preparing for the regional exploration program on the company's 1,000 square kilometre land package.

First Quarter 2013 Highlights

Updated Blackwater Mineral Resource estimate to be used for Feasibility Study on April 4, 2013:

Measured and Indicated gold resources for direct processing increased to 8.6 million ounces of gold at 0.88 grams per tonne and 57.5 million ounces of silver at 5.8 grams per tonne
Measured gold resources increased by 44% to 3.9 million ounces at 1.04 grams per tonne

Completed 12 deep exploration holes totaling 7,425 metres to further prove up and potentially extend the high grade zones in the west and north-central portions of deposit
Advanced exploration target selection for Capoose and other prospective areas identified for reconnaissance drilling in 2013

The Feasibility Study for the Blackwater project remains on target for completion in late 2013. The Feasibility Study will build upon the Preliminary Economic Assessment ("PEA") which was completed in September of 2012 and outlined the parameters of a conventional truck and shovel open pit mine with a 60,000 tonne per day processing plant that had the potential to produce an average of over 500,000 ounces of gold per year⁽⁴⁾.

The PEA is preliminary in nature and includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA based on these mineral resources will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The company looks forward to providing additional updates on the results of its 2013 regional exploration program on the multiple previously identified targets across the 1,000 square kilometre Blackwater land package.

2013 Outlook

New Gold is pleased to reiterate its guidance for 2013 which is scheduled to provide shareholders with increased gold production at lower cost when compared to 2012.

New Gold 2013 Guidance

	2013 Guidance
		Gold Production	Silver Production	Copper Production	Total Cash Costs⁽¹⁾
		(koz.)	(Moz.)	(Mlbs.)	($ per ounce)

New Afton		75 - 85		66 - 74	($1,410) - ($1,390)

Cerro San Pedro		140 - 150	1.4 - 1.6		375 - 395

Mesquite		130 - 140			830 - 850

Peak Mines		95 - 105		12 - 14	670 - 690

New Gold Consolidated		440 - 480	1.4 - 1.6	78 - 88	$265 - $285

New Gold's copper and silver by-product revenue continues to provide an effective natural hedge against the various cost pressures being faced by the broader industry which allows the company to deliver lower costs.

Assumptions used in the 2013 guidance include gold, silver and copper prices of $1,600 per ounce, $30.00 per ounce and $3.50 per pound and Canadian dollar, Australian dollar and Mexican peso exchange rates of $1.00, $1.00 and $13.00 to the U.S. dollar. The diesel price assumed for 2013 is $3.70 per gallon. Realized commodity prices and average foreign exchange rates were in line with these assumptions during the first quarter, however, prices of gold, silver and copper have declined below the assumed levels in recent weeks. Though the company's cash costs would be negatively impacted should copper and silver prices remain below the assumed prices, other cost-related factors, such as declining oil prices, lower explosive and cyanide costs as well as the depreciation of the Canadian dollar, would benefit costs. At today's commodity prices and foreign exchange rates it is anticipated the company's total cash costs⁽¹⁾ would be in the order of $350 per ounce. The following table provides an overview of the impact on total cash costs⁽¹⁾, both by asset and consolidated, of movements in certain key assumptions.

Total Cash Costs⁽¹⁾ - Sensitivities

Category -	Silver Price	Copper Price	AUD/USD	CDN/USD	MXN/USD	Diesel
Base Assumption -	$30.00	$3.50	$1.00	$1.00	$13.00	$3.70
Sensitivity -	+/-$1.00	+/-$0.25	+/-$0.05	+/-$0.05	+/-$1.00	+/-10%

	Total cash costs⁽¹⁾ - impact

New Afton	--	+/-$220	--	+/-$75	--	--

Cerro San Pedro	+/-$10	--	--	--	+/-$25	--

Mesquite	--	--	--	--	--	+/-$15

Peak	--	+/-$30	+/-$50	--	--	--

New Gold Total	+/-$3	+/-$45	+/-$10	+/-$15	+/-$8	+/-$5

The company continues to view its commodity mix, and the correlated offsets that copper and silver revenues provide against certain input costs, as a differentiating factor that should allow New Gold to remain a lowest quartile cost producer for the benefit of its shareholders.

Lead Director

New Gold is pleased to announce the appointment of Mr. James Estey as the company's lead director. Mr. Estey is the retired Chairman of UBS Securities Canada Inc. and has over 30 years of experience in the financial markets. He has been an independent member of the New Gold Board of Directors since July of 2008.

New Afton C-Zone Gold and Copper Resources Grow by Over 300 Percent

The C-Zone resource, which lies immediately down plunge of the block of mineralization currently being mined, has been updated to incorporate the drilling that was completed through the end of February 2013.

Today's New Afton Mineral Resource update is specific to the C-Zone. The balance of the New Afton Mineral Reserves and Resources remain unchanged from the year-end 2012 Mineral Reserve and Resource statement, net of first quarter mine production. The C-Zone update incorporates an additional 31 holes totaling 17,156 metres over the previous estimate and extends the mineralization both along strike and at depth. The company currently has three drills actively exploring the C-Zone and continues to target the completion of 30,000 metres of drilling in 2013. The company also recently initiated a 17,000 metre program targeting extensions to the main reserve, with two surface core drills and one underground drill currently active.

At December 31, 2012, New Afton's Proven and Probable Mineral Reserves included 1.1 million ounces of gold at 0.65 grams per tonne and 1,080 million pounds of copper at 0.93%, resulting in a planned current base mine life of 14 years. The objective of the C-Zone exploration drilling is to add to the mine's life while, at the same time, New Gold continues to evaluate opportunities to increase the throughput rate beyond the nameplate capacity of 11,000 tonnes per day.

New Afton C-Zone Mineral Resource Estimate

May 2013 Mineral Resource

2012 Year End Mineral Resource

Tonnes (000's)

Au (g/t)

Ag (g/t)

Cu (%)

Au (Koz)

Ag (Koz)

Cu (Mlbs)

Tonnes (000's)

Au (g/t)

Ag (g/t)

Cu (%)

Au (Koz)

Ag (Koz)

Cu (Mlbs)

Measured

1,282

0.75

1.35

0.79

400

0.60

1.30

0.73

Indicated

11,205

0.78

1.52

0.77

280

548

189

2,900

0.63

1.30

0.68

120

Total M&I

12,486

0.77

1.50

0.77

311

602

211

3,300

0.62

1.30

0.68

140

Inferred

20,221

0.62

1.42

0.68

401

923

301

13,600

0.70

1.50

0.76

307

670

228

The C-Zone mineral resource currently represents approximately 10 to 15% of New Afton's total Measured and Indicated mineral resource inventory and approximately 50 to 60% of its total Inferred mineral resource inventory.

Since the late February 2013 data cut-off for the C-Zone mineral resource update, the company has drilled an additional 4,248 metres in six holes. Highlights of assays subsequently received are shown below. Two of the holes are particularly noteworthy as hole EA-32 bottomed in mineralization and hole EA-34 was drilled through the deepest portions of the C-Zone, intercepting mineralization approximately 500 metres vertically below the current block cave extraction level.

New Afton C-Zone Highlights post Mineral Resource Update

Drill Hole	From (metres)	To (metres)	Interval (metres)	Gold (grams per tonne)	Copper (percent)
EA-31	644	708	64	0.86	1.33
EA-32	478	622	144	0.92	1.10
Includes	484	582	98	1.52	1.14
EA-33	638	658	20	0.55	0.86
EA-34	744	810	66	0.90	0.93
EA-35	270	312	42	1.17	0.10
EA-36	592	678	86	1.51	1.66
Includes	602	646	44	2.32	2.61

As it is currently defined by exploration drilling, the C-Zone has a sub-vertical 80degree southerlydip and a moderate southwesterly plunge. The zone measures approximately 800 metres along its lateral strike, 550 metres in the vertical dimension, and ranges from 10 to 100 metres in true width, averaging 50 metres in true width overall. Drilled intervals reported in the table above represent down-hole lengths which cross-cut the C-Zone at orientations which vary depending on drill hole direction and dip.

The company looks forward to providing further updates on the various value-enhancing initiatives underway at New Afton throughout the remainder of the year and into 2014.

Webcast and Conference Call

A conference call and webcast will be held on Thursday, May 2, 2013 at 10:00 a.m. Eastern Time to discuss the 2013 first quarter results. A live audio webcast will be available on our homepage at www.newgold.com. Participants may also join the conference by calling 1-647-427-7450 or toll-free 1-888-231-8191 in North America. To listen to a recorded playback of the call after the event, please call 1-416-849-0833 or toll-free 1-855-859-2056 in North America - Passcode 33483361. The archived webcast will also be available after the call at www.newgold.com.

About New Gold Inc.

New Gold is an intermediate gold mining company. The company has a portfolio of four producing assets and two significant development projects. The combination of the New Afton Mine in Canada, the Cerro San Pedro Mine in Mexico, the Mesquite Mine in the United States and the Peak Mines in Australia position New Gold as one of the lowest cost producers in the industry. In 2013, the company is forecasting between 440,000 and 480,000 ounces of gold production. In addition to its four operating mines, New Gold owns 100% of the exciting Blackwater project in Canada and 30% of the world-class El Morro project located in Chile. For further information on the company, please visit www.newgold.com.

Cautionary Note Regarding Forward-Looking Statements

Cautionary Note to U.S. Readers Concerning Estimates of Measured, Indicated and Inferred Mineral Resources

Information concerning the properties and operations discussed in this news release 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 news release 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 news release 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.

Technical Information

The scientific and technical information in this news release has been reviewed and approved by Mark Petersen , a Qualified Person under National Instrument 43-101 and employee of New Gold.

(1) TOTAL CASH COSTS

"Total cash costs" 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 costs 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 costs on a sales basis. Total cash costs include mine site operating costs such as mining, processing, administration, royalties and production taxes, but are exclusive of amortization, reclamation, capital and exploration costs. Total cash costs are reduced by any by-product revenue and is then divided by ounces sold to arrive at the total by-product 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-IFRS measure. Total cash costs presented do not have a standardized meaning prescribed by IFRS 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 IFRS and is not necessarily indicative of operating costs presented under IFRS. A reconciliation will be provided in the MD&A accompanying the quarterly financial statements.

(2) ALL-IN SUSTAINING CASH COSTS

The company is working with the World Gold Council and is in the process of adopting an "all-in sustaining cash costs" measure that the company believes more fully defines the total costs associated with producing gold. Although the definition is still preliminary, all-in sustaining cash costs, as currently defined, includes: total cash costs⁽¹⁾, corporate general and administrative expenses, exploration expense and sustaining capital. This metric is a non-IFRS measure.

(3) RECONCILIATION OF ADJUSTED NET EARNINGS

New Gold 2013 First Quarter Adjusted Net Earnings Reconciliation
		Three months ended
Figures in US$ millions, except per share amounts			March 31,
		2013	2012

Net earnings		36.3	33.5
Net earnings per share		0.08	0.07

	Adjustments:

	Ineffectiveness on hedging instruments	0.5	0.2
	Fair value change of non-hedged derivatives	(22.6)	8.6
	(Gain) Loss on foreign exchange	5.6	1.5
	Loss on disposal of assets	0.5	0.3
	Other	0.2	1.5
	Tax impact of adjustments	0.1	(1.4)
		(15.7)	10.7

Adjusted net earnings		20.6	44.2
Adjusted net earnings per share		0.04	0.10

(4) CASH GENERATED FROM OPERATIONS BEFORE WORKING CAPITAL

Cash generated from operations before working capital is a non-IFRS performance measure which the company believes provides additional information about the company's ability to generate cash flows from its mining operations.

(5) PEA - ADDITIONAL CAUTIONARY NOTE

This note regarding the preliminary economic assessment ("PEA") is in addition to cautionary language already included in this news release as required under NI 43-101. The Blackwater PEA is preliminary in nature and includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA based on these mineral resources will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. This news release includes information on New Gold's PEA with respect to the Blackwater Project, which was outlined in the PEA Technical Report filed on October 10, 2012. As disclosed in the news release, New Gold has, since the date of the PEA, completed several non-material updates of the mineral resource estimate for the Blackwater Project. Although the PEA represents useful, accurate and reliable information based on the information available at the time of its publication, and provides an important indicator as to the economic potential of the Blackwater Project, the PEA is based on mineral resources estimates with an effective date of July 27, 2012, which do not reflect drilling conducted since their effective date, and the PEA does not reflect the latest mineral resource estimate discussed in subsequent news releases. Certain assumptions used in the PEA, some of which relate to the July 27, 2012 mineral resource estimate, may have changed from those used for the new resource estimate, causing a variation of parameters. Moreover, the updated mineral resource estimate may impact how New Gold intends to develop the deposit, including pit outlines, production rates and mine life.

CONDENSED CONSOLIDATED INCOME STATEMENTS
(unaudited)
		Three months ended March 31
		$	$
(In millions of U.S. dollars, except per share amounts)		2013	2012


Revenues		201.8	168.8
Operating expenses		106.1	72.3
Depreciation and depletion		37.9	18.8
Earnings from mine operations		57.8	77.7

Corporate administration		7.3	6.7
Share-based payment expenses		2.5	2.4
Exploration and business development		4.0	2.8
Income from operations		44.0	65.8

	Finance income	0.4	0.2
	Finance costs	(11.5)	(2.1)
	Other gains (losses)	15.8	(12.1)

Earnings before taxes		48.7	51.8
Income tax expense		(12.4)	(18.3)

Net earnings		36.3	33.5

Earnings per share
	Basic	0.08	0.07
	Diluted	0.08	0.07

Weighted average number of shares outstanding (in millions)
	Basic	476.2	461.4
	Diluted	480.5	472.9

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(unaudited)
		March 31	December 31
		$	$
(In millions of U.S. dollars)		2013	2012

Assets
Current assets
	Cash and cash equivalents	672.4	687.8
	Trade and other receivables	23.4	46.9
	Inventories	170.2	163.3
	Current income tax receivable	6.1	6.6
	Prepaid expenses and other	10.3	12.9
Total current assets		882.4	917.5

Investments		0.7	1.0
Non-current inventories		32.3	32.4
Mining interests		3,190.4	3,134.9
Deferred tax assets		192.8	194.1
Other		3.6	3.8
Total assets		4,302.2	4,283.7

Liabilities and equity
Current liabilities
	Trade and other payables	111.8	120.7
	Current derivative liabilities	51.4	56.4
Total current liabilities		163.2	177.1

Reclamation and closure cost obligations		67.0	68.5
Provisions		10.7	9.5
Non-current derivative liabilities		37.0	54.1
Non-current non-hedged derivative liabilities		56.2	80.3
Long-term debt		854.3	847.8
Deferred tax liabilities		336.4	322.9
Deferred benefit		46.3	46.3
Other		1.0	0.7
Total liabilities		1,572.1	1,607.2

Equity
Common shares		2,624.1	2,618.4
Contributed surplus		85.3	85.2
Other reserves		(39.0)	(50.5)
Retained earnings		59.7	23.4
Total equity		2,730.1	2,676.5
Total liabilities and equity		4,302.2	4,283.7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
			Three months ended March 31
			$	$
(In millions of U.S. dollars)			2013	2012

Operating activities
Net earnings			36.3	33.5
Adjustments for:
		Realized gains on gold contracts	(2.7)	(2.4)
		Realized and unrealized foreign exchange losses	5.6	1.5
		Unrealized (gains) losses on non-hedged derivatives	(22.6)	8.6
		Unrealized losses on concentrate contracts	0.5	-
		Reclamation and closure costs paid	(0.4)	-
		Loss on disposal of assets	0.5	0.3
		Depreciation and depletion	37.8	18.5
		Equity-settled share-based payment expense	2.1	2.0
		Unrealized losses on cash flow hedging items	0.5	0.2
		Income tax expense	12.4	18.3
		Finance income	(0.4)	(0.2)
		Finance costs	11.5	2.1
			81.1	82.4
	Change in non-cash operating working capital		(12.9)	(16.3)
Cash generated from operations			68.2	66.1
	Income taxes paid		(9.7)	(29.4)
Net cash generated from operations			58.5	36.7

Investing activities
	Mining interests		(76.4)	(110.1)
	Purchase of additional Blackwater mining claims		-	(6.0)
	Interest received		0.2	0.2
Cash used in investing activities			(76.2)	(115.9)

Financing activities
	Issuance of common shares on exercise of options and warrants		3.7	3.3
	Financing initiation costs		(0.3)	(1.6)
Cash generated by financing activities			3.4	1.7

Effect of exchange rate changes on cash and cash equivalents			(1.1)	3.8

Decrease in cash and cash equivalents			(15.4)	(73.7)
Cash and cash equivalents, beginning of the period			687.8	309.4
Cash and cash equivalents, end of the period			672.4	235.7

Cash and cash equivalents are comprised of:
	Cash		317.6	138.0
	Short-term money market instruments		354.8	97.7
			672.4	235.7

please contact:

Hannes Portmann
Vice President, Corporate Development
Direct: 1 (416) 324-6014
Email: info@newgold.com

New Gold Provides Notice of Annual General Meeting of Shareholders and Release of First Quarter 2013 Results

Thu, 11 Apr 2013 16:15:00 -0400

VANCOUVER, April 11, 2013 /CNW/ - New Gold Inc. ("New Gold") (TSX and NYSE MKT:NGD) announces that it will host its Annual General Meeting of Shareholders ("AGM") on Wednesday, May 1, 2013. New Gold has filed its 2012 management's discussion and analysis of financial condition ("MD&A") and 2012 audited financial statements, together with its management information circular, and these documents are available on the company's website at www.newgold.com. Shareholders may request a hard copy of the complete audited financial statements and 2013 meeting materials free of charge upon request by calling toll-free 1-888-315-9715, or email your request to info@newgold.com.

The AGM will begin on Wednesday, May 1, 2013 at 4:00 p.m. Eastern Time and will be held at St. Andrew's Club & Conference Centre, 150 King Street West, 27^th Floor, Toronto, Ontario, Canada. A live audio webcast of the meeting will be available on our homepage at www.newgold.com. Participants may also join the conference by calling 1-647-427-7450 or toll-free 1-888-231-8191 in North America. To listen to a recorded playback of the meeting after the event, please call 1-416-849-0833 or toll-free 1-855-859-2056 in North America - Passcode 33386910. The audio and webcast presentation will be available after the AGM on our website.

First Quarter 2013 Financial Results
In addition, New Gold plans to release its first quarter 2013 financial results after market close on Wednesday, May 1, 2013. A conference call and webcast will be held on Thursday, May 2, 2013 at 10:00 a.m. Eastern Time to discuss the results. A live audio webcast of the meeting will be available on our homepage at www.newgold.com. Participants may also join the conference by calling 1-647-427-7450 or toll-free 1-888-231-8191 in North America. To listen to a recorded playback of the call after the event, please call 1-416-849-0833 or toll-free 1-855-859-2056 in North America - Passcode 33483361. The archived webcast will also be available after the call at www.newgold.com.

About New Gold Inc.

New Gold is an intermediate gold mining company. The company has a portfolio of four producing assets and two significant development projects. The combination of the Mesquite Mine in the United States, the Cerro San Pedro Mine in Mexico, the Peak Mines in Australia and the New Afton Mine in Canada position New Gold as one of the lowest cost producers in the industry. In 2013, the company is forecasting between 440,000 and 480,000 ounces of gold production. In addition to its four operating mines, New Gold owns 100% of the exciting Blackwater project in Canada and 30% of the world-class El Morro project located in Chile. For further information on the company, please visit www.newgold.com.

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this news release, including any information relating to New Gold's future financial or operating performance may be deemed "forward looking". All statements in this news release, other than statements of historical fact, that address events 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", "estimates", "forecasts", "intends", "anticipates", "projects", "potential", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur" or "be achieved" or the negative connotation. 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 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, 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 international, national and local government legislation in Canada, the United States, Australia, 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 obtaining the necessary permits for the Blackwater project, in Mexico where the Cerro San Pedro mine has a history of ongoing legal challenges related to our EIS and Chile where the courts have temporarily suspended the approval of the environmental permit for the El Morro project; the lack of certainty with respect to 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; diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or reclamation activities; uncertainties inherent to economic studies in respect of the PEA for the Blackwater 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 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 "Risk Factors" included in New Gold's disclosure documents filed on and available at www.sedar.com.

Hannes Portmann
Vice President, Corporate Development
Direct: 1 (416) 324-6014
Email: info@newgold.com

New Gold Announces Increased Gold Resources at Blackwater Project

Thu, 04 Apr 2013 16:34:00 -0400

TSX:NGD NYSE MKT:NGD

(All figures are in US dollars unless otherwise indicated)

VANCOUVER, April 4, 2013 /CNW/ - New Gold Inc. ("New Gold") (TSX and NYSE MKT:NGD) today announces a Mineral Resource update at its Blackwater Project. This Blackwater resource, which will be used for the project's Feasibility Study, has been updated to include: 89 additional holes including further infill drilling and more refined geologic and geostatistical modeling.

Blackwater Mineral Resource Update Highlights

Measured and Indicated gold resources for direct processing increased to 8.6 million ounces at higher
grade
Measured gold resources increased by 44% to 3.9 million ounces at 1.04 grams per tonne

"We are very pleased to now have the Blackwater resource finalized for our Feasibility Study, which remains on target for completion in late 2013," stated Randall Oliphant , Executive Chairman. "It is particularly gratifying to see that the classification of the resource has been further upgraded and the grades have increased."

The current Blackwater Mineral Resource estimate includes 1,002 holes totaling 309,509 metres. As previously disclosed, New Gold is segregating the portion of mineralized material that should be processed directly versus that which the company plans to stockpile and process toward the end of the project's mine life. The company has utilized a dual cut-off strategy to outline this segregation. Consistent with the previous Blackwater Mineral Resource estimate, all material with a gold-equivalent cut-off of greater than 0.4 grams per tonne is considered for direct processing, while all material with a gold-equivalent cut-off between 0.3 and 0.4 grams per tonne is planned to be stockpiled.


Blackwater Mineral Resource Estimate
	March 2013 Mineral Resource					2012 Year End Mineral Resource
	Tonnes (000's)	Au (g/t)	Ag (g/t)	Au (Moz)	Ag (Moz)	Tonnes (000's)	Au (g/t)	Ag (g/t)	Au (Moz)	Ag (Moz)
Measured & Indicated Resources
Direct processing material
Measured	116,955	1.04	5.6	3.90	21.06	88,188	0.94	5.2	2.67	14.74
Indicated	189,044	0.78	6.0	4.73	36.47	207,958	0.81	6.2	5.40	41.45
M&I (direct processing)	305,999	0.88	5.8	8.62	57.52	296,146	0.85	5.9	8.07	56.20
Stockpile material
Measured	26,521	0.30	4.1	0.26	3.50	20,156	0.31	3.8	0.20	2.46
Indicated	64,382	0.30	4.4	0.62	9.11	71,861	0.30	4.0	0.70	9.24
M&I (stockpile)	90,904	0.30	4.3	0.87	12.60	92,017	0.30	4.0	0.90	11.70
Total M&I	396,903	0.74	5.5	9.50	70.13	388,163	0.72	5.4	8.96	67.90
Inferred Resources
Inferred (direct processing)	13,815	0.76	4.1	0.34	1.82	16,585	0.58	10.8	0.31	5.76
Inferred (stockpile)	3,785	0.31	3.6	0.04	0.44	6,751	0.25	8.9	0.05	1.93
Total Inferred	17,600	0.66	4.0	0.38	2.26	23,336	0.48	10.2	0.36	7.69


Notes:
1. Mineral resources are reported within a conceptual open pit shell based on metal prices of $1,400/oz gold and $28.00/oz silver. The March 2013 mineral resource estimate utilizes average metallurgical recoveries of 88.0% gold and 64.0% silver for oxide mineralization, 85.0% gold and 58.0% silver for transitional oxide/sulfide mineralization and 85.0% gold and 44.0% silver for sulfide mineralization. The 2012 year-end mineral resource estimate utilizes average metallurgical recoveries of 86% gold and 44.9% silver for all material types.
2. Total contained metal calculated on the basis of Tonnes Grade / 31.10348 grams per troy ounce.*
3. Gold-equivalent cut-off grade estimates are based on $1,400/oz gold and $28.00/oz silver and average metal recoveries as described in Note 1 above.
4. Direct processing material defined as mineralization above a 0.4 g/t AuEq cut-off and likely to be mined and processed directly.
5.Stockpile material is defined as mineralization between a 0.30 g/t AuEq and a 0.40 AuEq cut-off that is suitable for stockpiling and future processing based on average metallurgical recoveries as described in Note 1 above.

The current March 2013 Mineral Resource estimate replaces the previous 2012 Year End estimate and includes an additional 89 holes totaling 22,220 metres, the majority of which were infill holes in the southeast portion of the deposit. These infill holes were drivers in bringing a greater percentage of the mineralization into the Measured resource category. At the same time, the new mineral resource estimate incorporates more detailed geological and geostatistical modeling, resulting in a more robust and accurate representation of the distribution of gold and silver grades in the deposit. Additionally, the model's block size has been increased from 10 by 10 by 10 metres to 12 by 12 by 12 metres in order to more accurately reflect ultimate mining equipment sizing under the envisioned throughput rate of 60,000 tonnes per day.

As the March 2013 Mineral Resource estimate, which will be used for the project's Feasibility Study, has now been completed, the company looks forward to shifting its exploration focus to the broader Blackwater land package where multiple targets were identified during 2012 through a systematic surface sampling program completed by New Gold. Currently, the company has four drills active on the property and has completed in excess of 20,000 metres year-to-date, exploring for potential extensions to the Blackwater deposit and completing condemnation drilling to test the mineral potential of areas selected for proposed site facilities. During the second and third quarters, New Gold plans to move the drills to the Capoose exploration prospect as well as new prospective areas identified within its greater 1,000 square kilometres of mineral claims.

The company looks forward to providing further updates on its regional exploration program at Blackwater throughout the year.

About New Gold Inc.

New Gold is an intermediate gold mining company. The company has a portfolio of four producing assets and two significant development projects. The combination of the Mesquite Mine in the United States, the Cerro San Pedro Mine in Mexico, the Peak Mines in Australia and the New Afton Mine in Canada position New Gold as one of the lowest cost producers in the industry. In 2013, the company is forecasting between 440,000 and 480,000 ounces of gold production. In addition to its four operating mines, New Gold owns 100% of the exciting Blackwater project in Canada and 30% of the world-class El Morro project located in Chile. For further information on the company, please visit www.newgold.com.

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this news release, including any information relating to New Gold's future financial or operating performance may be deemed "forward looking". All statements in this news release, other than statements of historical fact, that address events 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", "estimates", "forecasts", "intends", "anticipates", "projects", "potential", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur" or "be achieved" or the negative connotation. 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 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, 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 international, national and local government legislation in Canada, the United States, Australia, 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 obtaining the necessary permits for the Blackwater project, in Mexico where the Cerro San Pedro mine has a history of ongoing legal challenges related to our EIS and Chile where the courts have temporarily suspended the approval of the environmental permit for the El Morro project; the lack of certainty with respect to 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; diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or reclamation activities; uncertainties inherent to economic studies in respect of the PEA for the Blackwater 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 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 "Risk Factors" included in New Gold's disclosure documents filed on and available at www.sedar.com.

Cautionary Note to U.S. Readers Concerning Estimates of Measured, Indicated and Inferred Mineral Resources

Technical Information

The scientific and technical information in this news release has been reviewed and approved by Mark Petersen , a Qualified Person under National Instrument 43-101 and employee of New Gold.

Ron Simpson , a Qualified Person under National Instrument 43-101, prepared the mineral resource estimate, effective as at March 31, 2013

Hannes Portmann
Vice President, Corporate Development
Direct: 1 (416) 324-6014
Email: info@newgold.com

New Gold Announces Lowest Costs and Highest Cash Flow Quarter in its History with Record Net Earnings and Net Cash Generated from Operations in 2012

Thu, 28 Feb 2013 17:00:00 -0500

TSX:NGD NYSE MKT:NGD

(All figures are in US dollars unless otherwise indicated)

VANCOUVER, Feb. 28, 2013 /CNW/ - New Gold Inc. ("New Gold") (TSX and NYSE MKT:NGD) today announces financial and operational results for the fourth quarter and full year 2012. As was previously disclosed on February 5, 2013, New Gold delivered on its operational guidance for the fourth consecutive year. The company's operational performance and continued strength in commodity prices, resulted in New Gold generating strong financial results.

___________________________________________________________________________________________________________________________________________
Fourth Quarter 2012 Highlights

Strong finish to 2012 with fourth quarter gold production of 112,883 ounces
Established quarterly records for key metrics:

Lowest total cash costs⁽¹⁾of $254 per ounce
Highest net cash generated from operations of $106 million
Highest net earnings of $124 million, or $0.26 per share

Adjusted net earnings⁽²⁾ of $50 million, or $0.11 per share
New Afton mill averaged a daily throughput of 11,700 tonnes, or 106% of design capacity, during its first full quarter of operation

__________________________________________________________________________________________________________________________________________
Full Year 2012 Highlights

Annual operational guidance achieved for fourth consecutive year

2012 gold production increased by 6% to 411,892 ounces from 387,155 ounces
2012 total cash costs⁽¹⁾ decreased to $421 per ounce from $446 per ounce

2012 net earnings increased by 11% to $199 million, or $0.43 per share

Adjusted net earnings⁽²⁾ of $184 million, or $0.40 per share

2012 net cash generated from operations increased to $236 million
Finished 2012 with highest ever year end cash balance of $688 million and all corporate debt due in 2020 or beyond

__________________________________________________________________________________________________________________________________________

The company finished 2012 with gold production of 411,892 ounces at total cash costs⁽¹⁾ of $421 per ounce. Importantly, New Gold's 2013 guidance outlines continued gold production growth coupled with a further decline in costs. For 2013, the company forecasts gold production of 440,000 to 480,000 ounces at total cash costs⁽¹⁾ of $265 to $285 per ounce. "2012 was a transformative year for our company with the successful start of production at New Afton," stated Randall Oliphant , Executive Chairman. "The fourth quarter provided a first look at the robust cash flow potential of our now four producing mines."

Financial Results Overview
New Gold 2012 Fourth Quarter and Full Year Summary Financial Results
	Three months ended		Twelve months ended
Figures in US$ millions, except per share amounts	December 31,		December 31,
	2012	2011	2012	2011

Revenue	250.9	177.3	791.3	695.9
Earnings from Mine Operations
New Afton	37.6	-	46.0	-
Cerro San Pedro	35.7	37.6	158.2	172.7
Mesquite	9.3	22.0	67.6	79.7
Peak Mines	16.6	15.6	58.8	62.8
Earnings from Mine Operations	99.2	74.9	330.6	315.2

Net Earnings	123.9	35.0	199.0	179.0
Net Earnings per Share	0.26	0.08	0.43	0.42
Adjusted Net Earnings⁽²⁾	49.7	42.2	183.5	187.8
Adjusted Net Earnings per Share⁽²⁾	0.11	0.09	0.40	0.44

Cash Generated from Operations before Working Capital⁽³⁾	128.0	84.6	381.2	340.4
Pre-tax Cash Generated from Operations	131.1	87.1	336.4	327.9
Net Cash Generated from Operations	106.2	65.8	235.8	229.5

Revenue increased by 42% in the fourth quarter and 14% for the year. The quarterly and full year revenue benefitted from higher gold and copper sales, primarily due to New Afton's start-up, and higher average realized gold prices. These benefits were partially offset by lower realized copper prices in both periods and lower silver revenues. The increases in revenue led to higher earnings from mine operations during the fourth quarter and full year 2012.

Net earnings in the fourth quarter of 2012 were $124 million, or $0.26 per share. Net earnings were positively impacted by a $70 million pre-tax gain on realized and unrealized non-hedged derivatives. The pre-tax gain included $50 million due to the company's November 2012 C$9.00 warrant exercise and C$55 million debenture redemption with the balance related to the mark-to-market of New Gold's C$15.00 warrants due in 2017. Adjusted net earnings⁽²⁾ were $50 million, or $0.11 per share. For the full year, net earnings were $199 million, or $0.43 per share, and adjusted net earnings⁽²⁾ were $184 million, or $0.40 per share. 2012 net earnings and adjusted net earnings⁽²⁾ increased despite a combination of: a $40 million increase in depreciation and depletion at New Afton, an $11 million increase in expensed exploration which resulted in continued exploration success at Blackwater and New Afton as well as an $11 million increase in interest expense.

Net cash generated from operations increased by 61% during the fourth quarter. This increase was driven by New Afton achieving full production which resulted in a combination of higher gold sales and lower unit costs. For the full year, cash generated from operations before working capital⁽³⁾ increased by 12% to $381 million. Net cash generated from operations in 2012 increased to $236 million. When compared to the prior year, 2012 net cash generated from operations was impacted by: a $32 million increase in working capital resulting from an inventory build-up at the Peak Mines and smelter receivables at New Afton, a $12 million cash tax payment that was related to Cerro San Pedro's 2011 taxes payable, and an $8 million reclamation expenditure at Mesquite that will now not be required at end of the mine life. These items, which primarily impacted the net cash generated from operations in the first nine months of 2012, are not expected to be reoccurring.

Financial Update

New Gold finished 2012 with a cash balance of $688 million. The company has an additional $100 million of liquidity through an undrawn credit facility. The consolidated debt position of the company at December 31, 2012 was $848 million which included: face value $300 million 7.00% senior unsecured notes due in 2020 (book value - $293 million), face value $500 million 6.25% senior unsecured notes due in 2022 (book value - $490 million) and $65 million in El Morro funding loans. The company had 476 million common shares outstanding at December 31, 2012.

Operations Overview
New Gold 2012 Fourth Quarter and Full Year Summary Operational Results
	Three months ended		Twelve months ended
	December 31,		December 31,
	2012	2011	2012	2011
Gold Production (thousand ounces)
New Afton	22.8	-	36.8	-
Cerro San Pedro	32.1	34.1	137.6	143.7
Mesquite	29.2	43.6	142.0	158.0
Peak Mines	28.8	22.9	95.5	85.4
Total Gold Production	112.9	100.6	411.9	387.1

Total Gold Sales	109.8	99.6	395.5	391.9
Average realized gold price ($ per ounce)	$1,578	$1,549	$1,551	$1,460

Silver Production (thousand ounces)
Cerro San Pedro	401.3	453.0	1,938.5	1,989.3

Total Silver Sales	420.0	440.0	1,926.1	2,007.8
Average realized silver price ($ per ounce)	$32.46	$31.26	$30.78	$35.15

Copper Production (million pounds)
New Afton	17.3	-	28.4	-
Peak Mines	3.6	3.3	14.4	12.7
Total Copper Production	20.9	3.3	42.8	12.7

Total Copper Sales	19.8	2.9	35.6	15.3
Average realized copper price ($ per pound)	$3.52	$3.56	$3.56	$3.78

Total Cash Costs⁽¹⁾ ($ per ounce)
New Afton	($1,067)	-	($1,043)	-
Cerro San Pedro	320	253	232	115
Mesquite	787	691	690	645
Peak Mines	743	726	764	618
Total Cash Costs⁽¹⁾	$254	$553	$421	$446

Average realized margin ($ per ounce)	$1,324	$996	$1,130	$1,014

Gold Production

The first full quarter of production from New Afton led to a 12% increase in New Gold's consolidated gold production during the fourth quarter when compared to the same quarter of the prior year. Beyond the contribution from New Afton, which was still in the development stage during the fourth quarter of 2011, increased gold production at the Peak Mines partially offset decreases at Mesquite and Cerro San Pedro.

The full year 2012 increase in gold production of 6% was driven by a combination of the successful production start at New Afton and a 12% increase in gold production at the Peak Mines during the year. This was partially offset by production declines at Mesquite and Cerro San Pedro resulting from lower grades being placed on the leach pads as expected from the mines' plans.

Copper and Silver Production

New Gold's consolidated copper production during the fourth quarter increased significantly to 21 million pounds from three million pounds in the same period of the prior year. The increase was primarily attributable to a full quarter of operations at New Afton, with consolidated copper production further benefitting from the Peak Mines 9% higher copper production.

For full year 2012, copper production increased by 236% when compared to 2011. The increase was due to the combination of the successful New Afton start-up and a 13% increase in copper production at the Peak Mines.

Silver production at Cerro San Pedro remained consistent during both the quarter and full year period.

Total Cash Costs⁽¹⁾ per Ounce Sold

New Gold's fourth quarter gold production was achieved at the lowest costs in the company's history and at among the lowest costs in the industry. Total cash costs⁽¹⁾ during the fourth quarter were $254 per ounce. Costs in the fourth quarter of 2012 benefitted from the impact of New Afton successfully achieving full production.

For full year 2012, the company's total cash costs⁽¹⁾ of $421 per ounce were within the guidance range of $410 to $430 per ounce set in early 2012. Through its by-product commodities, and the natural economic hedge they provide against many of the company's input costs, New Gold has been able to deliver a decrease in total cash costs⁽¹⁾ despite continued broader industry cost pressures.

The combination of higher realized gold prices and lower total cash costs⁽¹⁾ during both the quarter and full year 2012 resulted in New Gold achieving record average realized margins. The company generated average realized margins of $1,324 and $1,130 per ounce during the fourth quarter and full year.

New Afton Continues Successful Transition to Full Operation

During the fourth quarter, New Afton continued its successful transition to full production. After achieving its design capacity of 11,000 tonnes per day over one month ahead of schedule in late September, New Afton's fourth quarter mill throughput averaged 11,700 tonnes per day. The combination of this higher throughput, planned increases in gold and copper grades and continual improvements in process recoveries led to solid quarterly production at low costs.

After commencing production ahead of schedule in late June of 2012, New Afton's first six months of operation were a success by virtually every measure. Production of both gold and copper met the company's expectations and costs were also in line with targets. New Afton finished 2012 having completed the development of 54 drawbells versus a target for the year of 48.

In late January 2013, the permanent underground gyratory crusher was successfully commissioned at New Afton. With the crusher up and running the underground mining rate has steadily increased, averaging approximately 11,000 tonnes per day in recent weeks. New Gold looks forward to 2013 with a full year of operations from New Afton expected to result in increased gold and copper production as well as lower total cash costs⁽¹⁾.

With New Afton having ramped up smoothly, the team is now exploring opportunities to further enhance the value of the asset. One initiative being pursued is the evaluation of strategies to increase the mining and milling rate beyond the current nameplate capacity of 11,000 tonnes per day. The New Afton team is targeting an increase in throughput to an average of 12,000 tonnes per day, an increase of 9% over the design rate, by the end of 2013. In order to assess the operation's potential to go beyond this higher rate, the New Afton team intends to evaluate which elements of the operation, if any, would represent bottlenecks in reaching a sustainable throughput above 12,000 tonnes per day.

New Gold intends to provide updates on this initiative as well as the continued exploration program, which has already been successful in adding two years to New Afton's mine life, during the second half of 2013.

"I am very proud of all our operating teams for continuing to deliver on their targets, however, I believe the team at New Afton deserves additional recognition for the job they have done," stated Robert Gallagher , President and Chief Executive Officer. "To bring this mine into production ahead of schedule and then transition it towards full operation in six months, all in a challenging market, is a real testament to everyone's contribution."

Development Project Update

El Morro

New Gold's share of the El Morro project provides the company with a 30% fully-carried interest in an advanced stage, world-class copper/gold project in northern Chile. The El Morro and La Fortuna deposits currently represent the two principal zones of gold-copper mineralization. Future exploration efforts will also test the potential bulk-mineable gold and copper production below the bottom of the La Fortuna open pit. Based on the most recent Feasibility Study, completed in late 2011, once in production, New Gold's 30% share of annual production is expected to be over 90,000 ounces of gold and 85 million pounds of copper over an initial 17-year mine life.

Under the terms of New Gold's agreement with Goldcorp Inc. ("Goldcorp"), Goldcorp is responsible for funding New Gold's 30% share of capital costs. The carried funding will accrue interest at a fixed rate of 4.58%. New Gold will repay its share of capital plus accumulated interest out of 80% of its share of the project's cash flow with New Gold retaining 20% of its share of cash flow from the time production commences.

Blackwater

The company's Blackwater project was advanced significantly during 2012. Over 270,000 metres of drilling were completed on the project with the majority focused on upgrading the mineral resource to the Measured and Indicated resource classification. This increase in resource classification enables the resource estimate to be used as the basis for Blackwater's Feasibility Study which remains on target for completion in late 2013. In September 2012, the Preliminary Economic Assessment ("PEA") for Blackwater was released which outlined the parameters of a conventional truck and shovel open pit mine with a 60,000 tonne per day processing plant that had the potential to produce an average of over 500,000 ounces of gold per year⁽⁴⁾.

__________________________________________________________________________________________________________________________________________
Blackwater 2012 Highlights

Completed Preliminary Economic Assessment
Completed 2012 year end mineral resource estimate upgrading majority of mineralization into the Measured and Indicated resource categories
Initiated Provincial and Federal environmental process and completed environmental baseline work
Signed two exploration agreements with First Nations
Opened a regional office and sample preparation lab in Vanderhoof, British Columbia
Confirmed point of access for connection to British Columbia hydro power

__________________________________________________________________________________________________________________________________________

2013 Outlook

New Gold is pleased to reiterate its guidance for 2013 which should provide shareholders with further increases in gold production at lower costs driving a significant increase in cash flow.

New Gold 2013 Guidance

	2012 Actual			2013 Guidance
	Gold	Total	Capital	Gold	Total	Estimated Capital
	Production	Cash Costs⁽¹⁾	Expenditures	Production	Cash Costs⁽¹⁾	Expenditures
	(000 ounces)	($ per ounce)	($ millions)	(000 ounces)	($ per ounce)	($ millions)

New Afton	36.8	($1,043)	$302	75 - 85	($1,410) - ($1,390)	$110
Cerro San Pedro	137.6	232	11	140 - 150	375 - 395	40
Mesquite	142.0	690	11	130 - 140	830 - 850	20
Peak Mines	95.5	764	47	95 - 105	670 - 690	60

New Gold Consolidated	411.9	$421	$371	440 - 480	$265 - $285	$230

Consolidated copper production in 2013 is expected to double to a range of 78 to 88 million pounds as a result of New Afton hitting full production and the steady copper contribution from the Peak Mines. Silver production at Cerro San Pedro is expected to move to 1.4 to 1.6 million ounces due to the planned processing of lower silver grades as a result of mine sequencing. New Gold's copper and silver by-product revenue continues to provide an effective natural hedge against the various cost pressures being faced by the broader industry which allows the company to deliver lower costs and expand margins.

Per the company's plans, gold production is expected to be higher in the second half of the year than the first half, with a commensurate decrease in total cash costs⁽¹⁾. As a result of the higher production and lower costs expected in the second half of 2013, approximately 65% of the company's cash flow is anticipated to be generated in the final two quarters of the year.

New Afton's 2013 co-product costs are forecast to be $570 to $590 per ounce of gold and $1.20 to $1.30 per pound of copper.

The company is also pleased to provide its estimate for 2013 all-in sustaining cash costs⁽⁵⁾ of approximately $875 per ounce. The estimate for all-in sustaining cash costs includes: total cash costs⁽¹⁾, corporate general and administrative expenses, exploration expenditures and sustaining capital.


Total Cash Costs⁽¹⁾ - Sensitivities

Category -	Silver Price	Copper Price	AUD/USD	CDN/USD	MXN/USD	Diesel
Base Assumption -	$30.00	$3.50	$1.00	$1.00	$13.00	$3.70
Sensitivity -	+/-$1.00	+/-$0.25	+/-$0.05	+/-$0.05	+/-$1.00	+/-10%

	Total cash costs⁽¹⁾ - impact

New Afton	--	+/-$220	--	+/-$75	--	--
Cerro San Pedro	+/-$10	--	--	--	+/-$25	--
Mesquite	--	--	--	--	--	+/-$15
Peak	--	+/-$30	+/-$50	--	--	--

New Gold Total	+/-$3	+/-$45	+/-$10	+/-$15	+/-$8	+/-$5

Webcast and Conference Call

A webcast presentation to discuss these results will be held on March 1, 2013, at 9:00 a.m. Eastern Time. Participants may access the webcast by registering here or from our website at www.newgold.com. You may also listen to the conference by calling 647-427-7450 or toll-free 1-888-231-8191 in North America. To listen to a recorded playback after the event, please call 1-416-849-0833 or toll-free 1-855-859-2056 in North America - Passcode 12037741. An archived webcast will also be available at www.newgold.com following the event.

__________________________________________________________________________________________________________________________________________

About New Gold Inc.
New Gold is an intermediate gold mining company. The company has a portfolio of four producing assets and two significant development projects. The combination of the Mesquite Mine in the United States, the Cerro San Pedro Mine in Mexico, the Peak Mines in Australia and the New Afton Mine in Canada position New Gold as one of the lowest cost producers in the industry. In 2013, the company is forecasting between 440,000 and 480,000 ounces of gold production. In addition to its four operating mines, New Gold owns 100% of the exciting Blackwater project in Canada and 30% of the world-class El Morro project located in Chile. For further information on the company, please visit www.newgold.com.
__________________________________________________________________________________________________________________________________________

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this news release, including any information relating to New Gold's future financial or operating performance may be deemed "forward looking". All statements in this news release, other than statements of historical fact, that address events 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", "estimates", "forecasts", "intends", "anticipates", "projects", "potential", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur" or "be achieved" or the negative connotation. 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 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, 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 international, national and local government legislation in Canada, the United States, Australia, 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 obtaining the necessary permits for the Blackwater project, in Mexico where the Cerro San Pedro mine has a history of ongoing legal challenges related to our EIS and Chile where the courts have temporarily suspended the approval of the environmental permit for the El Morro project; the lack of certainty with respect to 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; diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or reclamation activities; uncertainties inherent to economic studies in respect of the PEA for the Blackwater 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 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 "Risk Factors" included in New Gold's disclosure documents filed on and available at www.sedar.com.

Cautionary Note to U.S. Readers Concerning Estimates of Measured, Indicated and Inferred Mineral Resources

Technical Information

The scientific and technical information in this news release has been reviewed and approved by Mark Petersen , a Qualified Person under National Instrument 43-101 and employee of New Gold.

(1) TOTAL CASH COSTS

"Total cash costs" 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 by-product 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-IFRS measure. Total cash cost presented does not have a standardized meaning prescribed by IFRS 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 IFRS and is not necessarily indicative of operating costs presented under IFRS. A reconciliation will be provided in the MD&A accompanying the quarterly financial statements.

(2) RECONCILIATION OF ADJUSTED NET EARNINGS

New Gold 2012 Fourth Quarter and Full Year Adjusted Net Earnings Reconciliation
		Three months ended		Twelve months ended
Figures in US$ millions, except per share amounts		December 31,		December 31,
		2012	2011	2012	2011

Net earnings		123.9	35.0	199.0	179.0
Net earnings per share		0.26	0.08	0.43	0.42

	Adjustments:

	Loss on Redemption of Senior Secured Notes	-	-	31.8	-
	Gain on FVTPL financial assets	-	-	-	(1.3)
	Ineffectiveness on hedging instruments	1.3	2.4	2.9	6.6
	Fair value change of non-hedged derivatives	(70.2)	(11.1)	(61.1)	7.2
	(Gain) Loss on foreign exchange	(3.4)	12.9	1.3	(7.1)
	Other	2.7	0.1	5.2	2.5
	Tax impact of adjustments	(4.6)	2.9	4.4	0.9
		(74.2)	7.2	(15.5)	8.8

Adjusted net earnings		49.7	42.2	183.5	187.8
Adjusted net earnings per share		0.11	0.09	0.40	0.44

(3) CASH GENERATED FROM OPERATIONS BEFORE WORKING CAPITAL

(4) PEA - ADDITIONAL CAUTIONARY NOTE

This note regarding the preliminary economic assessment ("PEA") is in addition to cautionary language already included in this news release as required under NI 43-101. The Blackwater PEA is preliminary in nature and includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA based on these mineral resources will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. This news release includes information on New Gold's PEA with respect to the Blackwater Project, which was outlined in the PEA Technical Report filed on October 10, 2012. As disclosed in the news release, New Gold has, since the date of the PEA, completed a non-material update of the mineral resource estimate for the Blackwater Project. Although the PEA represents useful, accurate and reliable information based on the information available at the time of its publication, and provides an important indicator as to the economic potential of the Blackwater Project, the PEA is based on mineral resources estimates with an effective date of July 27, 2012, which do not reflect drilling conducted since their effective date, and the PEA does not reflect the latest mineral resource estimate discussed in this news release. Certain assumptions used in the PEA, some of which relate to the July 27, 2012 mineral resource estimate, may have changed from those used for the new resource estimate, causing a variation of parameters. Moreover, the updated mineral resource estimate may impact how New Gold intends to develop the deposit, including pit outlines, production rates and mine life.

(5) ALL-IN SUSTAINING CASH COSTS

The company is working with the World Gold Council and is in the process of adopting an "all-in sustaining cash costs" measure that the company believes more fully defines the total costs associated with producing gold. Although the definition is still preliminary, all-in sustaining cash costs, as currently defined, includes: by-product cash costs, corporate general and administrative expenses, exploration expense and sustaining capital. This metric is a non-IFRS measure.

CONSOLIDATED INCOME STATEMENTS
THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2012
(unaudited)
		Three months ended		Twelve months ended
		$	$	$	$
(In millions of U.S. dollars, except per share amounts)		2012	2011	2012	2011


Revenues		250.9	177.3	791.3	695.9
Operating expenses		105.2	78.6	344.3	303.8
Depreciation and depletion		46.5	23.8	116.4	76.9
Earnings from mine operations		99.2	74.9	330.6	315.2

Corporate administration		9.0	8.9	25.2	26.1
Share-based payment expenses		2.3	2.1	10.9	11.3
Exploration and business development		8.6	2.3	20.6	10.0
Income from operations		79.3	61.6	273.9	267.8

	Finance income	0.4	0.7	1.4	3.6
	Finance costs	(11.5)	(1.1)	(16.4)	(5.1)
	Other (losses) and gains	69.6	(4.1)	19.9	(7.9)

Earnings before taxes		137.8	57.1	278.8	258.4
Income tax expense		(13.9)	(22.1)	(79.8)	(79.4)

Net earnings		123.9	35.0	199.0	179.0

Earnings per share
	Basic	0.26	0.08	0.43	0.42
	Diluted	0.26	0.07	0.42	0.40

Weighted average number of shares outstanding (in millions)
	Basic	468.1	451.7	463.4	429.6
	Diluted	473.3	464.9	468.4	441.0

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(unaudited)
		As at December 31
		$	$
(In millions of U.S. dollars)		2012	2011

Assets
Current assets
	Cash and cash equivalents	687.8	309.4
	Trade and other receivables	46.9	37.6
	Inventories	163.3	106.5
	Current income tax receivable	6.6	-
	Prepaid expenses and other	12.9	7.9
Total current assets		917.5	461.4

Investments		1.0	1.8
Non-current inventories		32.4	20.3
Mining interests		3,134.9	2,695.3
Deferred tax assets		194.1	156.2
Non-current non-hedged derivative asset		-	18.8
Reclamation deposits and other		3.8	14.9
Total assets		4,283.7	3,368.7

Liabilities and equity
Current liabilities
	Trade and other payables	120.7	100.3
	Current tax liabilities	-	20.5
	Current derivative liabilities	56.4	49.2
	Current non-hedged derivative liabilities	-	53.3
Total current liabilities		177.1	223.3

Reclamation and closure cost obligations		68.5	50.7
Provisions		9.5	12.6
Non-current derivative liabilities		54.1	92.4
Non-current non-hedged derivative liabilities		80.3	114.3
Long-term debt		847.8	251.7
Deferred tax liabilities		322.9	294.3
Deferred benefit		46.3	46.3
Other		0.7	0.7
Total liabilities		1,607.2	1,086.3

Equity
Common shares		2,618.4	2,464.0
Contributed surplus		85.2	80.4
Other reserves		(50.5)	(86.4)
Retained earnings (deficit)		23.4	(175.6)
Total equity		2,676.5	2,282.4
Total liabilities and equity		4,283.7	3,368.7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2012
(unaudited)
			Three months ended		Twelve months ended
			$	$	$	$
(In millions of U.S. dollars)			2012	2011	2012	2011

Operating activities
	Net earnings		123.9	35.0	199.0	179.0
	Adjustments for:
		Realized gains on gold contracts	(2.6)	(2.3)	(9.9)	(8.8)
		Realized and unrealized foreign exchange (gains) losses	(3.4)	12.9	1.3	(7.1)
		Realized and unrealized gains on investments	-	-	-	(1.3)
		Realized and unrealized (gains) losses on non-hedged derivatives	(70.2)	(11.2)	(61.1)	7.2
		Unrealized losses on concentrate contracts	3.4	-	2.4	-
		Reclamation and closure costs paid	(0.1)	-	(8.0)	-
		Loss on redemption of Senior Secured Notes	-	-	31.8	-
		Loss (gain) on disposal of assets	2.0	(0.1)	3.3	0.5
		Depreciation and depletion	46.7	23.6	116.2	76.2
		Equity-settled share-based payment expense	2.0	1.7	8.5	7.2
		Unrealized losses on cash flow hedging items	1.3	2.4	2.9	6.6
		Income tax expense	13.9	22.1	79.8	79.4
		Finance income	(0.4)	(0.7)	(1.4)	(3.6)
		Finance costs	11.5	1.2	16.4	5.1
			128.0	84.6	381.2	340.4
	Change in non-cash operating working capital		3.1	2.5	(44.8)	(12.5)
Cash generated from operations			131.1	87.1	336.4	327.9
	Income taxes paid		(24.9)	(21.3)	(100.6)	(98.4)
Net cash generated from operations			106.2	65.8	235.8	229.5

Investing activities
	Mining interests		(118.0)	(158.5)	(516.0)	(413.6)
	Proceeds received from sale of pre-commercial production inventory		6.9	-	14.5	-
	Purchase of additional Blackwater mining claims		-	-	(6.0)	-
	Receipt of reclamation deposits		-	0.3	8.9	8.4
	Cash acquired in asset acquisition, net transaction costs		-	0.1	-	18.7
	Asset acquisition costs, net of cash received - Silver Quest		-	(8.0)	-	(8.0)
	Asset acquisition costs, net of cash received - Geo Minerals		-	(18.1)	-	(18.1)
	Purchase of available-for-sale securities		-	(3.7)	-	(3.7)
	Proceeds from sale of investments		-	-	-	8.9
	Interest received		0.3	0.7	1.1	3.2
	Proceeds from disposal of assets		-	0.3	-	0.8
Cash used in investing activities			(110.8)	(186.9)	(497.5)	(403.4)

Financing activities
	Issuance of common shares on exercise of options and warrants		67.7	1.5	75.4	16.5
	Redemption of Senior Secured Notes		-	-	(197.6)	-
	Proceeds from issuance of Senior Unsecured Notes		500.0	-	800.0	-
	Financing initiation costs		(9.9)	-	(17.9)	-
	Interest paid		(12.4)	(10.5)	(20.0)	(21.9)
Cash generated by financing activities			545.4	(9.0)	639.9	(5.4)

Effect of exchange rate changes on cash and cash equivalents			(0.6)	6.4	0.2	(2.1)

Decrease in cash and cash equivalents			540.2	(123.7)	378.4	(181.4)
Cash and cash equivalents, beginning of period			147.6	433.1	309.4	490.8
Cash and cash equivalents, end of period			687.8	309.4	687.8	309.4

Cash and cash equivalents are comprised of:
	Cash		277.5	179.0	277.5	179.0
	Short-term money market instruments		410.3	130.4	410.3	130.4
			687.8	309.4	687.8	309.4

Hannes Portmann
Vice President, Corporate Development
Direct: 1 (416) 324-6014
Email: info@newgold.com

New Gold to Discuss Fourth Quarter and Year End 2012 Financial Results on Friday, March 1, 2013

Tue, 19 Feb 2013 17:48:00 -0500

VANCOUVER, Feb. 19, 2013 /CNW/ - New Gold Inc. ("New Gold") (TSX and NYSE MKT:NGD) plans to announce its fourth quarter and year end 2012 financial results after market close on Thursday, February 28, 2013. A webcast and conference call to discuss these results will be held on Friday, March 1, 2013, at 9:00 a.m. Eastern Time. Participants may listen to the webcast by registering here or from our website at www.newgold.com. You may also listen to the conference by calling 647-427-7450 or toll-free 1-888-231-8191 in North America. To listen to a recorded playback of the call after the event, please call 1-416-849-0833 or toll-free 1-855-859-2056 in North America - Passcode 12037741. An archived webcast will also be available at www.newgold.com following the event.

About New Gold Inc.
New Gold is an intermediate gold mining company. The company has a portfolio of four producing assets and two significant development projects. The combination of the Mesquite Mine in the United States, the Cerro San Pedro Mine in Mexico, the Peak Mines in Australia and the New Afton Mine in Canada position New Gold as one of the lowest cost producers in the industry. In 2013, the company is forecasting between 440,000 and 480,000 ounces of gold production. In addition to its four operating mines, New Gold owns 100% of the exciting Blackwater project in Canada and 30% of the world-class El Morro project located in Chile. For further information on the company, please visit www.newgold.com.

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this news release, including any information relating to New Gold's future financial or operating performance may be deemed "forward looking". All statements in this news release, other than statements of historical fact, that address events 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", "estimates", "forecasts", "intends", "anticipates", "projects", "potential", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur" or "be achieved" or the negative connotation. 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 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, 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 international, national and local government legislation in Canada, the United States, Australia, 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 the Cerro San Pedro mine has a history of ongoing legal challenges related to our EIS and Chile where the courts have temporarily suspended the approval of the environmental permit for the El Morro project; the lack of certainty with respect to 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; 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 "Risk Factors" included in New Gold's disclosure documents filed on and 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 news release 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.

Hannes Portmann
Vice President, Corporate Development
Direct: 1 (416) 324-6014
Email: info@newgold.com

New Gold 2012 Operational Results Extend History of Delivering on Guidance and 2013 Outlook Provides Gold Production Growth at Significantly Lower Costs

Tue, 05 Feb 2013 08:00:00 -0500

(All figures are in US dollars unless otherwise indicated)

VANCOUVER, Feb. 5, 2013 /CNW/ - New Gold Inc. ("New Gold") (TSX and NYSE MKT:NGD) today announces fourth quarter and full year 2012 operational results as well as 2013 guidance, combining continued operational execution with gold production growth and declining total cash costs⁽¹⁾. The company finished 2012 with gold production of 411,892 ounces at total cash costs⁽¹⁾ per ounce sold, net of by-product sales, of $421 per ounce. After delivering 6% gold production growth and a $25 per ounce decrease in total cash costs⁽¹⁾ per ounce sold, net of by-product sales, during 2012, New Gold's 2013 guidance outlines continued gold production growth coupled with a further decline in costs. For 2013, the company forecasts gold production of 440,000 to 480,000 ounces at total cash costs⁽¹⁾ per ounce sold, net of by-product sales, of $265 to $285 per ounce. "We are very pleased with our operational performance in 2012 as our teams continued to execute," stated Randall Oliphant, Executive Chairman. "Looking forward, a full year of operations at New Afton allows us to, once again, combine gold production growth with substantially lower costs, which I believe is one of the key differentiators of our company."

Fourth Quarter and Full Year 2012 Highlights

Strong finish to 2012 with fourth quarter gold production of 112,883 ounces at total cash costs⁽¹⁾, net of by-product sales, of $254 per ounce, the lowest in the company's history
Met annual operational guidance for fourth consecutive year

2012 gold production increased by 6% to 411,892 ounces from 387,155 ounces
2012 total cash costs⁽¹⁾per ounce sold, net of by-product sales, decreased to $421 per ounce from $446 per ounce

2012 year end Measured and Indicated gold resources of 21.4 million ounces, an increase of 10% per share when compared to the prior year end
New Afton mine life extended by two years from 12 to 14 years through exploration efforts
Simplified balance sheet finishing 2012 with highest ever year end cash balance of $688 million and all corporate debt due in 2020 or beyond

2013 Outlook Highlights

Targeting further ~12% gold production growth to between 440,000 and 480,000 ounces
A forecasted doubling of copper production to drive total cash costs⁽¹⁾per ounce sold, net of by-product sales, down by approximately $145 per ounce to $265 to $285 per ounce

2013 all-in sustaining cash costs⁽²⁾estimated to be $875 per ounce

New Afton mill throughput expected to reach sustainable 12,000 tonnes per day, or 9% increase over nameplate capacity, by end of 2013
Exploration team to build upon successful drill results at New Afton C-zone and further test the new targets identified on the company's 1,000 square kilometre land position at Blackwater
Blackwater Feasibility Study to be completed in late 2013

The preliminary information provided for production, sales and total cash costs⁽¹⁾ are approximate figures and may differ slightly from the final results included in the 2012 annual audited financial statements and MD&A.

Operations Overview
New Gold 2012 Fourth Quarter and Full Year Summary Operational Results
	Three months ended		Twelve months ended
	December 31,		December 31,
	2012	2011	2012	2011
Gold Production (thousand ounces)
Mesquite	29.2	43.6	142.0	158.0
Cerro San Pedro	32.1	34.1	137.6	143.7
Peak Mines	28.8	22.9	95.5	85.4
New Afton	22.8	-	36.8	-
Total Gold Production	112.9	100.6	411.9	387.1

Total Gold Sales	109.8	99.6	395.5	391.9
Average realized gold price ($ per ounce)	$1,578	$1,549	$1,551	$1,460

Silver Production (thousand ounces)
Cerro San Pedro	401.3	453.0	1,938.5	1,989.3

Total Silver Sales	420.0	440.0	1,926.1	2,007.8
Average realized silver price ($ per ounce)	$32.46	$31.26	$30.78	$35.15

Copper Production (million pounds)
Peak Mines	3.6	3.3	14.4	12.7
New Afton	17.3	-	28.5	-
Total Copper Production	20.9	3.3	42.7	12.7

Total Copper Sales	19.8	2.9	35.6	15.3
Average realized copper price ($ per pound)	$3.52	$3.56	$3.56	$3.78

Total Cash Costs⁽¹⁾ - net of by-product sales ($ per ounce)
Mesquite	$787	$691	$690	$645
Cerro San Pedro	320	253	232	115
Peak Mines	743	726	764	618
New Afton	(1,067)	-	(1,043)	-
Total Cash Costs⁽¹⁾ - net of by-product sales	$254	$553	$421	$446

Average realized margin ($ per ounce)	$1,324	$996	$1,130	$1,014

Gold Production

Driven by a full quarter of production from New Afton, New Gold's consolidated gold production during the fourth quarter increased by 12% over the fourth quarter of 2011. Beyond the contribution from New Afton, which was still in the development stage during the fourth quarter of 2011, increased gold production at the Peak Mines partially offset decreases at Mesquite and Cerro San Pedro. Increased gold production at the Peak Mines, when compared to the same period of the prior year, was a result of realizing anticipated higher gold grades and continued recovery improvements in the mill circuit.

The 6% year-over-year increase in gold production during 2012 was also primarily attributable to the production start at New Afton. A 12% increase in gold production at the Peak Mines during the year, due to improved grades and recoveries, was offset by production declines at Mesquite and Cerro San Pedro resulting from lower grades being placed on the leach pads as planned due to mine sequencing.

Copper and Silver Production

New Gold's consolidated copper production during the fourth quarter increased by over six times to 21 million pounds from three million pounds in the same period of the prior year. The increase was largely attributable to a full quarter of production from New Afton, though the Peak Mines also increased copper production by 9% during the quarter. The increased production at Peak was due to a combination of increased ore tonnes milled and continued recovery improvements, which were partially offset by lower copper grades.

Silver production at Cerro San Pedro remained consistent during both the quarter and full year period.

Total Cash Costs⁽¹⁾ per Ounce Sold - Net of By-Product Sales

New Gold's fourth quarter gold production was achieved at the lowest costs in the company's history and among the lowest costs in the industry. Total cash costs⁽¹⁾ per ounce sold, net of by-product sales, during the fourth quarter were $254 per ounce. The company was able to reduce its total cash costs⁽¹⁾ by almost $300 per ounce when compared to the same period of the prior year and $189 per ounce when compared to the third quarter of 2012. Total cash costs⁽¹⁾ in the fourth quarter of 2012 were driven lower by the impact of New Afton successfully achieving full production.

For full year 2012, the company's total cash costs⁽¹⁾ per ounce sold, net of by-product sales, were within the guidance range of $410 to $430 per ounce set in early 2012. Importantly, New Gold was able to deliver a decrease in total cash costs⁽¹⁾ despite continued broader industry cost pressures.

"I am very proud of our operating teams for continuing to deliver on the targets that we set at the beginning of each year," stated Robert Gallagher, President and Chief Executive Officer. "We look forward to delivering on our guidance for a fifth consecutive year in 2013."

2013 Guidance and Sensitivities
New Gold 2013 Guidance

	2012 Actual			2013 Guidance
	Gold	Total	Capital	Gold	Total	Estimated Capital
	Production	Cash Costs⁽¹⁾	Expenditures	Production	Cash Costs⁽¹⁾	Expenditures
	(000 ounces)	($ per ounce)	($ millions)	(000 ounces)	($ per ounce)	($ millions)

Mesquite	142.0	$690	$11	130 - 140	$830 - $850	$20
Cerro San Pedro	137.6	232	15	140 - 150	375 - 395	40
Peak Mines	95.5	764	47	95 - 105	670 - 690	60
New Afton	36.8	(1,043)	297	75 - 85	(1,410) - (1,390)	110

New Gold Consolidated	411.9	$421	$370	440 - 480	$265 - $285	$230

New Gold's targeted 2013 gold production growth is primarily driven by a full year of production from New Afton, with increases at Cerro San Pedro and the Peak Mines offsetting a minimal decrease in production at Mesquite. Consolidated copper production in 2013 is expected to double to a range of 78 to 88 million pounds as a result of New Afton hitting full production and the steady copper contribution from the Peak Mines. Silver production at Cerro San Pedro is expected to move to 1.4 to 1.6 million ounces due to the planned processing of lower silver grades as a result of mine sequencing.

Total cash costs⁽¹⁾ per ounce sold, net of by-product sales, are expected to decrease by approximately $145 per ounce when compared to 2012 with costs benefitting from a full year of production at the low cost New Afton mine. New Gold's copper and silver by-product revenue continues to provide an effective natural hedge against the various cost pressures being faced by the broader industry.

Per the company's quarterly plans, gold production is expected to grow in the second half of the year with a commensurate decline in total cash costs⁽¹⁾.

New Afton's 2013 co-product costs are forecast to be $570 to $590 per ounce of gold and $1.20 to $1.30 per pound of copper.

The company is also pleased to provide its estimate for 2013 all-in sustaining cash costs⁽²⁾ of approximately $875 per ounce. The estimate for all-in sustaining cash costs includes: total cash costs⁽¹⁾, corporate general and administrative expenses, exploration expenditures and sustaining capital.


Total Cash Costs⁽¹⁾ - Sensitivities

Category -	Silver Price	Copper Price	AUD/USD	CDN/USD	MXN/USD	Diesel
Base Assumption -	$30.00	$3.50	$1.00	$1.00	$13.00	$3.70
Sensitivity -	+/-$1.00	+/-$0.25	+/-$0.05	+/-$0.05	+/-$1.00	+/-10%

	Total cash costs⁽¹⁾ - impact
Mesquite	--	--	--	--	--	+/-$15
Cerro San Pedro	+/-$10	--	--	--	+/-$25	--
Peak	--	+/-$30	+/-$50	--	--	--
New Afton	--	+/-$220	--	+/-$75	--	--

New Gold Total	+/-$3	+/-$45	+/-$10	+/-$15	+/-$8	+/-$5

2012 Year End Mineral Reserves and Resources
Gold Mineral Reserves and Resources Summary Table (thousand ounces)
As at December 31, 2012

	Proven & Probable Reserves	Measured & Indicated Resources	Inferred Resources
Mesquite	2,342	5,684	651
Cerro San Pedro	760	1,703	850
Peak Mines	649	880	144
New Afton	1,100	1,979	523
El Morro (30%)	2,891	2,891	1,310
Blackwater	--	8,070	310
Capoose	--	196	595

New Gold Total	7,742	21,403	4,383

Note: Measured and Indicated Resources shown inclusive of Proven and Probable Reserves. See the Detailed Reserve and
Resource Tables and the Notes to Mineral Reserve and Resource Statements at the end of this news release for further detail.

New Gold's 2012 year end Measured and Indicated gold resources increased by 2.6 million ounces when compared to the prior year, with the resource increase more than offsetting the approximately 0.6 million ounces that were mined at the company's four operations. In total, the company's Measured and Indicated gold resources increased by 10% per share during 2012. During the year, New Gold's gold reserve base declined by only 0.1 million ounces despite the company producing 411,892 ounces. Proven and Probable gold reserves increased during the year at each of Peak Mines, New Afton and El Morro. New Gold is particularly pleased that the exploration efforts at New Afton, which only began in mid-2012, have already added over 150,000 ounces to its reserve base. The team continues to actively explore the C-zone block of mineralization that lies below the New Afton B-zone reserve block. Additional detail is provided in the section entitled Exploration Update.

In addition, at the Peak Mines, the company was, once again, successful in replacing the ounces mined during the year, thus maintaining the mine life of the operation at eight years. No exploration drilling was completed at Mesquite or Cerro San Pedro during 2012.

At Blackwater, the company was successful in upgrading the majority of the mineral resource into the Measured and Indicated categories to support the completion of the Feasibility Study in late 2013. The infill drilling program on the main Blackwater deposit has now been completed. Through 2012, New Gold was successful in growing the Blackwater Measured and Indicated gold mineral resource to 8.1 million ounces from 5.4 million ounces at the end of 2011. The latest estimate also represents a significant improvement in the overall resource classification at Blackwater. Since the company's September 2012 Preliminary Economic Assessment ("PEA") however, through the combination of the infill drill results and updated geologic resource constraints, Blackwater has seen a decline in its global mineral resource inventory, with the majority of the decrease in the lower grade Inferred resource category. In assessing the latest Blackwater results, the company is focused on the highest quality tonnes and gold ounces in an effort to maximize profitability rather than global resource inventory. In light of this, New Gold has increased the cut-off grade used to estimate the Blackwater mineral resource to 0.4 gold-equivalent grams per tonne from the 0.3 gold-equivalent grams per tonne used for the PEA.

With the 2012 year end mineral resource as the basis, Blackwater's mine plan will be subject to ongoing scheduling optimizations through completion of the Feasibility Study in late 2013. A variable cut-off strategy will continue to be used in formulating the pit sequencing to focus on mining and processing of the most profitable ounces early in the project's life. The year end resource is expected to support a more consistent production profile in the first 10 years when compared to the PEA, which saw higher production in the first five years at the expense of production in years six through 10. Total estimated gold production in the first 10 years of Blackwater's mine life is expected to remain consistent with that of the PEA. New Gold also intends to stockpile material below the 0.4 gold-equivalent grams per tonne cut-off for processing toward the end of Blackwater's mine life.

Exploration Update

During 2013, New Gold's exploration team plans to build on a successful 2012 which saw the mine lives at New Afton, the Peak Mines and El Morro extended as well as the completion of over 270,000 metres of drilling at Blackwater. The company's estimated total exploration budget for 2013 is $50 million of which approximately $20 million is expected to be capitalized.

At New Afton, the C-zone exploration program began in mid-2012. A total of 16,998 metres in 34 holes was completed during the third and fourth quarters of 2012 with the objective of extending the mine's life, adding to the mineral resource immediately at the base of the current reserve block and further delineating the C-zone which lies below the current New Afton reserve. Seven of the 34 holes were included in the 2012 year end mineral Reserve and Resource update.

Highlights of C-zone assays received since completion of the year end Reserve and Resource update include:


2012 New Afton C-zone Highlights

Drill Hole	From (metres)	To (metres)	Interval (metres)	Gold (grams per tonne)	Copper (%)
EA12-7	424	494	70	1.23	1.19
EA12-9	286	444	158	0.88	0.94
EA12-11	418	528	110	1.05	0.90
EA12-19	460	626	166	1.23	1.28
EA12-21	488	597	109	1.06	0.95
EA12-24	574	730	156	1.01	1.02

A total of 40,000 metres of drilling is targeted at New Afton for 2013, with 30,000 metres focused on the C-zone, 5,000 metres targeting continued reserve replacement and 5,000 metres testing regional targets on the company's 110 square kilometre land package.

With infill drilling at the primary Blackwater deposit now completed, the company plans to further advance its exploration efforts on the Capoose resource, located 25 kilometres from Blackwater, as well as on various new targets identified on the company's broader land package during 2012. The exploration team has budgeted for 40,000 metres of drilling at Blackwater during 2013. Half of the 2013 program will focus on the completion of condemnation drilling, testing for extensions to the Blackwater resource and identification of potential satellite deposits near the primary deposit. The remaining 20,000 metres are planned for Capoose and various regional targets where between four and six exploration drills are expected to be active throughout the year. The company has the flexibility to increase the program at Blackwater and intends to periodically reassess its plans throughout 2013 based on the exploration results as they emerge.

At the Peak Mines, the team has budgeted for 33,000 metres of drilling, of which 85% is near-mine and mine corridor exploration, with the objective of continuing the long history of reserve and resource replacement. The remainder of Peak's exploration budget will focus on continued drill testing and reconnaissance exploration over the company's extended regional land position.

Asset Overviews

Mesquite

Mesquite extended its history of solid performance during 2012. The mine met its 2012 production guidance and came in below its targeted range for total cash costs⁽¹⁾. Mesquite's production was down compared to 2011 as expected due to the mine plan moving through a phase of ore that was below reserve grade. The processing of these lower grade ores and increased diesel prices led to a moderate increase in total cash costs⁽¹⁾ compared to 2011.

Looking ahead to 2013, mining is scheduled to remain in a portion of the pit that has average grades below that of Mesquite's global reserve grade, resulting in an expected modest decrease in production. The combination of this lower production base and a diesel price assumption that is 8% higher than the 2012 average price paid results in guidance for total cash costs⁽¹⁾ increasing from 2012 levels. Based on the company's longer term plans, it is expected that after 2013, Mesquite's production should increase to historical levels with a commensurate decrease in costs. Mesquite's 2013 estimated capital spend is $20 million, of which $7 million is for the purchase of two new trucks that should facilitate production increases in the coming years.

Cerro San Pedro

Cerro San Pedro had another strong year in 2012, delivering its gold production at among the lowest costs in the industry. Gold production was down slightly when compared to 2011 as a result of a minor decrease in the average gold grade processed while silver production remained consistent. Cerro San Pedro's total cash costs⁽¹⁾ per ounce sold, net of by-product sales, were below the guidance set for 2012. The mine's total cash costs⁽¹⁾ increased, when compared to a record setting 2011, primarily due to a lower average realized silver price.

Cerro San Pedro's 2013 guidance anticipates an increase in gold production with increased gold grades more than offsetting an expected decrease in tonnes processed. Silver production is expected to decline due to a combination of lower tonnes processed and planned mining of lower silver grades. The projected increase in total cash costs⁽¹⁾ from 2012 to 2013 is primarily attributable to lower silver by-product revenue. The 2013 estimated capital spend at Cerro San Pedro is $40 million, of which $30 million relates to a capitalized pushback and the mine's final leach pad expansion. Cerro San Pedro's life of mine plan indicates a steady and significant reduction in annual capital costs over the remainder of the mine life.

Peak Mines

Peak finished 2012 with a strong fourth quarter ultimately meeting its full year production guidance for both gold and copper. Gold and copper production increased during 2012 compared to the prior year through a combination of higher grades and continued increases in mill recoveries for both metals. The increase in Peak's year-over-year total cash costs⁽¹⁾ per ounce sold, net of by-product sales, was due to a combination of lower by-product revenues, the appreciation of the Australian dollar and general cost pressures in Australia.

In 2013, Peak is targeting a further increase in gold production with copper production expected to remain consistent with that of 2012. The increase in gold production is driven by an expected increase in ore tonnes processed. At the same time, total cash costs⁽¹⁾ per ounce sold, net of by-product sales, are expected to decrease when compared to 2012. This anticipated decrease in costs is attributable to a combination of higher gold production, a lower foreign exchange rate assumption, versus the average exchange rate in 2012, and a partial abatement of certain inflationary pressures in Australia resulting from the cancellation, delay or scaling back of various large projects in the sector. Peak's 2013 capital estimate of $60 million is consistent with prior years and includes approximately $30 million of underground development and capitalized exploration in an effort to continue Peak's long history of reserve and resource replacement.

New Afton

New Afton's successful June 2012 production start-up was the culmination of many years of dedicated exploration, development work and project execution. After the New Afton mill achieved its design capacity of 11,000 tonnes per day over one month ahead of schedule in late September, the operation finished what was a strong year by virtually every measure, with a solid fourth quarter.

During the fourth quarter, the mill throughput averaged approximately 11,700 tonnes per day. As planned, the gold and copper grades also increased in the fourth quarter, averaging 0.77 grams per tonne gold and 0.84% copper. Importantly, the gold and copper grades of ore being processed from the block cave are reconciling favourably with the block model reserve estimate. At the same time, gold and copper recoveries continue to increase as the mill circuit undergoes continual refinement. Recoveries for gold and copper averaged 84% and 85% during the fourth quarter and continue to move towards their anticipated run rate levels of 88 to 90%. New Afton finished 2012 having completed the development of 54 drawbells versus a target for the year of 48.

New Gold looks forward to 2013 with a full year of contribution from New Afton expected to result in significant increases in both gold and copper production as well as lower total cash costs⁽¹⁾. At today's commodity prices it is anticipated that New Afton could double the company's cash flow.

Capital expenditures at New Afton during 2012, net of pre-commercial production sales, totaled $297 million. In 2013, New Afton's capital estimate is $110 million. Approximately $90 million of the 2013 budgeted capital relates to underground development and the completion of 36 drawbells to provide additional flexibility and ore access points. Though some underground and drawbell development is planned to occur on an annual basis going forward, the work scheduled for 2013 should position the operation to see a marked year-over-year decline in capital costs over the mine's now 14 year life.

A further value enhancing initiative being pursued at New Afton during 2013 is the evaluation of opportunities to increase the mining and milling rate beyond the current nameplate capacity of 11,000 tonnes per day. As a first step, the New Afton team is targeting an increase in throughput to an average of 12,000 tonnes per day, or a 9% increase over the design rate, by the end of 2013. In order to assess the operation's potential to go even further beyond this higher rate, the New Afton team intends to evaluate which elements of the operation, if any, would represent bottlenecks in reaching a throughput above 12,000 tonnes per day. New Gold intends to provide updates on this initiative as well as the continued C-zone exploration program during the second half of 2013.

El Morro

New Gold's share of the El Morro project continues to provide the company with a 30% fully-carried interest in an advanced stage, world-class copper/gold project in northern Chile. The El Morro and La Fortuna deposits represent the two principal zones of gold-copper mineralization that have been identified to date. Future exploration efforts will also test the potential bulk-mineable gold and copper production below the bottom of the current La Fortuna open pit. Based on the most recent Feasibility Study, completed in late 2011, once in production, New Gold's 30% share of annual production is expected to be over 90,000 ounces of gold and 85 million pounds of copper over an initial 17-year mine life. During 2012, New Gold's share of the gold and copper reserves at El Morro increased by 0.4 million ounces of gold and 229 million pounds of copper.

Activity at site has been limited recently due to the previously announced temporary suspension of the project's environmental permit, pending the resolution by the Chilean Environmental Permitting Authority (the "Servicio de Evaluación Ambiental" or "SEA") of certain deficiencies in consultation asserted by a group of indigenous people whose claims were supported by the Chilean court. In June 2012, SEA initiated the administrative process to address the deficiencies identified by the Chilean court. It is anticipated the consultation process could be completed by late 2013. During the period of temporary suspension, Goldcorp's focus is on supporting the advancement of the consultation process, evaluating potential future exploration targets and optimizing project economics including sourcing of a long-term power supply.

Blackwater

The company's Blackwater project was significantly advanced during 2012 from multiple perspectives. Over 270,000 metres of drilling were completed on the project with the majority focused on upgrading the mineral resource to the Measured and Indicated resource classification. This increases the resource classification and enables the resource estimate to be used as the basis for Blackwater's Feasibility Study which remains on target for completion in late 2013. In September 2012, the PEA for Blackwater was released which outlined the parameters of a conventional truck and shovel open pit mine with a 60,000 tonne per day processing plant that had the potential to produce an average of over 500,000 ounces of gold per year⁽³⁾.

Since the PEA, the Blackwater team has continued to refine and optimize the project development plan with various trade-off studies and will continue to do so throughout 2013. Based on the additional work that has been completed to date, the PEA assumptions for capital and operating costs continue to be viewed as reasonable. In working towards the completion of the Feasibility Study in late 2013, these elements as well as the mine plan, discussed in the section entitled 2012 Year End Mineral Reserves and Resources, will be refined with a focus on maximizing profitability. During 2012, the company spent $127 million on the exploration and development of the Blackwater project with the below highlighting some of the key achievements.

Blackwater 2012 Highlights

Completed Preliminary Economic Assessment
Completed 2012 year end mineral resource estimate upgrading majority of mineralization into the Measured and Indicated resource categories
Initiated Provincial and Federal environmental process and completed environmental baseline work
Signing of two exploration agreements with First Nations and subsequent approval of Multi-year Area Based exploration permit
Opening of regional office and sample preparation lab in Vanderhoof, British Columbia
Confirmed point of access for connection to British Columbia hydro power

During 2013, the company plans to spend approximately $60 million at Blackwater, including $45 million for completion of the Feasibility Study, progression of the permitting and operation and development of camp infrastructure. The remaining $15 million is related to capitalized exploration.

Financial Update

New Gold finished 2012 with a cash balance of $688 million⁽⁴⁾. The company has an additional $100 million of liquidity through an undrawn credit facility. The consolidated debt position of the company at December 31, 2012 was $848 million⁽⁴⁾ which included: face value $300 million 7.00% senior unsecured notes due in 2020 (book value - $293 million), face value $500 million of 6.25% senior unsecured notes due in 2022 (book value - $490) and $65 million in El Morro funding loans. The company had 476 million common shares outstanding at December 31, 2012.

Webcast and Conference Call

A webcast presentation to discuss these results will be held on February 5, 2013, at 10:00 a.m. Eastern Time. Participants may access the webcast by registering here or from our website at www.newgold.com. You may also listen to the conference by calling 647-427-7450 or toll-free 1-888-231-8191 in North America. To listen to a recorded playback after the event, please call 1-416-849-0833 or toll-free 1-855-859-2056 in North America - Passcode 96531135. An archived webcast will also be available at www.newgold.com following the event.

Detailed Reserve and Resource Tables
Mineral Reserves and Resources Summary as of December 31, 2012
	Contained Metals
	Gold Koz	Silver Koz	Copper Mlbs
Reserves
Proven	2,741	12,096	1,183
Probable	5,001	19,135	2,095
Total P&P	7,742	31,231	3,278
Resources
Measured	6,789	37,470	2,076
Indicated	14,613	94,377	1,986
Total M&I	21,403	131,847	4,061
Inferred	4,383	84,620	1,114

See Notes to Mineral Reserve and Resource Statements below for further detail on Reserve and Resource calculations.


Mineral Reserves statement as at December 31, 2012
	Metal grade				Contained metal
	Tonnes 000's	Gold g/t	Silver g/t	Copper %	Gold Koz	Silver Koz	Copper Mlbs
Mesquite
Proven	13,140	0.68	-	-	287	-	-
Probable	114,409	0.56	-	-	2,055	-	-
Mesquite P&P	127,549	0.57	-	-	2,342	-	-
Cerro San Pedro
Proven	21,100	0.52	17.1	-	353	11,600	-
Probable	26,400	0.48	17.4	-	407	14,800	-
CSP P&P	47,500	0.50	17.3	-	760	26,400	-
Peak
Proven	2,030	6.07	7.6	1.07	396	496	48
Probable	2,020	3.90	7.0	1.20	253	455	53
Peak P&P	4,050	4.99	7.3	1.13	649	951	101
New Afton
Proven	-	-	-	-	-	-	-
Probable	52,500	0.65	2.3	0.93	1,100	3,880	1,080
New Afton P&P	52,500	0.65	2.3	0.93	1,100	3,880	1,080
El Morro		100% Basis				30% Basis
Proven	307,949	0.57	-	0.56	1,705	-	1,135
Probable	335,152	0.37	-	0.44	1,186	-	962
El Morro P&P	643,101	0.47	-	0.49	2,891	-	2,097


Measured and Indicated mineral Resource statement (inclusive of Reserves) as at December 31, 2012
	Metal grade				Contained metal
	Tonnes 000's	Gold g/t	Silver g/t	Copper %	Gold Koz	Silver Koz	Copper Mlbs
Mesquite
Measured - oxide	19,100	0.51	-	-	313	-	-
Indicated - oxide	274,100	0.38	-	-	3,349	-	-
Meqsuite M&I - oxide	293,200	0.39	-	-	3,662	-	-

Measured - non oxide	4,900	0.88	-	-	139	-	-
Indicated - non oxide	96,000	0.61	-	-	1,883	-	-
Mesquite M&I - non oxide	100,900	0.62	-	-	2,022	-	-
Total Mesquite M&I	394,100	0.45	-	-	5,684	-	-
Cerro San Pedro
Measured - oxide	27,100	0.34	15.0	-	303	13,100	-
Indicated - oxide	49,000	0.24	13.0	-	380	20,480	-
CSP M&I - oxide	76,100	0.28	13.7	-	683	33,580	-

Measured - sulphide	15,200	0.47	11.9	-	229	5,800	-
Indicated - sulphide	60,400	0.41	9.6	-	791	18,600	-
CSP M&I - sulphide	75,600	0.42	10.1	-	1,020	24,400	-
Total CSP M&I	151,700	0.35	11.9	-	1,703	57,980	-
Peak
Measured	2,700	5.74	7.5	1.05	494	650	62
Indicated	3,200	3.75	6.8	1.19	386	700	84
Peak M&I	5,900	4.66	7.1	1.13	880	1,350	146
New Afton
A&B Zones
Measured	33,500	0.86	2.9	1.18	929	3,160	873
Indicated	45,900	0.67	2.4	0.89	984	3,530	896
A&B Zone M&I	79,400	0.75	2.6	1.01	1,913	6,690	1,769
C-Zone
Measured	400	0.60	1.3	0.73	8	20	6
Indicated	2,900	0.63	1.3	0.68	58	120	43
C-Zone M&I	3,300	0.62	1.3	0.68	66	140	49
Total New Afton M&I	82,700	0.74	2.6	1.00	1,979	6,830	1,818
Blackwater
Measured	88,188	0.94	5.2	-	2,670	14,740	-
Indicated	207,958	0.81	6.2	-	5,400	41,450	-
Blackwater M&I	296,146	0.85	5.9	-	8,070	56,190	-
Capoose
Indicated	14,200	0.43	20.8	-	196	9,497	-
El Morro	100% Basis				30% Basis
Measured	307,949	0.57	-	0.56	1,705	-	1,135
Indicated	335,152	0.37	-	0.44	1,186	-	962
El Morro M&I	643,101	0.47	-	0.49	2,891	-	2,097


Inferred Resource statement as at December 31, 2012
	Metal grade				Contained metal
	Tonnes 000's	Gold g/t	Silver g/t	Copper %	Gold Koz	Silver Koz	Copper Mlbs
Mesquite
Oxide	35,200	0.33	-	-	373	-	-
Non oxide	15,700	0.55	-	-	278	-	-
Mesquite Inferred	50,900	0.40	-	-	651	-	-
Cerro San Pedro
Oxides	53,400	0.17	9.0	-	300	15,400	-
Sulphides	50,500	0.34	8.5	-	550	13,800	-
CSP Inferred	103,900	0.25	8.8	-	850	29,200	-
Peak	1,700	2.64	4.8	1.13	144	261	42
New Afton
A&B-Zone	14,900	0.45	2.0	0.65	216	940	212
C-Zone	13,600	0.70	1.5	0.76	307	670	228
New Afton Inferred	28,400	0.57	1.8	0.70	523	1,610	440
Blackwater	16,585	0.58	10.8	-	310	5,760	-
Capoose	64,070	0.29	23.2	-	595	47,789	-
	100% Basis				30% Basis
El Morro	137,555	0.99	-	0.70	1,310	-	632

Notes to Mineral Reserve and Resource Statements

Measured and Indicated mineral resources that are not mineral reserves do not have demonstrated economic viability as defined by a technical Feasibility Study. New Gold reports its Measured and Indicated mineral resources inclusive of its mineral reserves. 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. Mineral reserves have been estimated and reported in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") definition standards and guidelines and Canadian National Instrument 43-101 ("NI 43-101").

1) Mineral Reserves for the company's mineral properties 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 cutoff
Mesquite	$1,300	-	-	0.21 g/t Au - Oxide reserves 0.41 g/t Au - Non-oxide reserves
Cerro San Pedro	$1,300	$24.00	-	US$4.33/t NSR
Peak Mines	$1,300	$24.00	$3.00	A$120 - 253/t NSR
New Afton	$1,300	$24.00	$3.00	US$24/t NSR
El Morro	$1,350	-	$3.00	0.20% CuEq

2) Mineral Resources for the company's mineral properties 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	$1,400	-	-	0.12 g/t Au - Oxide resources 0.24 g/t Au - Non-oxide resources
Cerro San Pedro	$1,400	$28.00	-	0.10 g/t AuEq - Open pit oxide resources 0.40 g/t AuEq - Open pit sulphide resources
Peak Mines	$1,400	$28.00	$3.25	A$97 - 137/t marginal NSR
New Afton	$1,400	$28.00	$3.25	0.40% CuEq
El Morro	$1,500	-	$3.50	0.15% CuEq - Meas'd & Ind'cd o/p resources 0.20% CuEq - Inferred u/g resources
Blackwater	$1,400			0.40 g/t AuEq
Capoose	$1,400	-	-	0.40 g/t AuEq

Mineral resources have been estimated and reported in accordance with CIM definition standards and guidelines and Canadian NI 43-101.

3) Mineral resources are classified as Measured, Indicated and Inferred resources and are reported based on technical and economic parameters consistent with the methods most suitable for their potential commercial exploitation. Where different mining and/or processing methods might be applied to different portions of a mineral resource, the designators 'open pit' and 'underground' have been applied to indicate envisioned mining method. Likewise the designators 'oxide', 'non-oxide' and 'sulphide' have been applied to indicate the type of mineralization as it relates to appropriate mineral processing method and expected payable metal recoveries. The estimates of mineral Reserves and mineral Resources may be mutually affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing and other relevant issues. Additional details regarding mineral reserve and resource estimates, classification and reporting parameters for each of New Gold's mineral properties are provided in the respective NI 43-101 Technical Reports which are available on SEDAR.

4) Qualified Person: The preparation of New Gold's mineral reserve and resource statements has been done by Qualified Persons as defined under Canadian National Instrument 43-101 under the oversight and review of Mark Petersen, a Qualified Person under National Instrument 43-101 and employee of New Gold.

About New Gold Inc.
New Gold is an intermediate gold mining company. The company has a portfolio of four producing assets and two significant development projects. The combination of the Mesquite Mine in the United States, the Cerro San Pedro Mine in Mexico, the Peak Mines in Australia and the New Afton Mine in Canada position New Gold as one of the lowest cost producers in the industry. In 2013, the company is forecasting between 440,000 and 480,000 ounces of gold production. In addition to its four operating mines, New Gold owns 100% of the exciting Blackwater project in Canada and 30% of the world-class El Morro project located in Chile. For further information on the company, please visit www.newgold.com.

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this news release, including any information relating to New Gold's future financial or operating performance may be deemed "forward looking". All statements in this news release, other than statements of historical fact, that address events 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", "estimates", "forecasts", "intends", "anticipates", "projects", "potential", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur" or "be achieved" or the negative connotation. 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 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, 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 international, national and local government legislation in Canada, the United States, Australia, 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 obtaining the necessary permits for the Blackwater project, in Mexico where the Cerro San Pedro mine has a history of ongoing legal challenges related to our EIS and Chile where the courts have temporarily suspended the approval of the environmental permit for the El Morro project; the lack of certainty with respect to 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; diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or reclamation activities; uncertainties inherent to economic studies in respect of the PEA for the Blackwater 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 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 "Risk Factors" included in New Gold's disclosure documents filed on and available at www.sedar.com.

Cautionary Note to U.S. Readers Concerning Estimates of Measured, Indicated and Inferred Mineral Resources

Technical Information

The scientific and technical information in this news release has been reviewed and approved by Mark Petersen, a Qualified Person under National Instrument 43-101 and employee of New Gold.

(1) TOTAL CASH COSTS

"Total cash costs" 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 by-product 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-IFRS measure. Total cash cost presented does not have a standardized meaning prescribed by IFRS 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 IFRS and is not necessarily indicative of operating costs presented under IFRS. A reconciliation will be provided in the MD&A accompanying the quarterly financial statements.

(2) ALL-IN SUSTAINING CASH COSTS

The company is working with the World Gold Council and is in the process of adopting an "all-in sustaining cash costs" measure that the company believes more fully defines the total costs associated with producing gold. Although the definition is still preliminary, all-in sustaining cash costs, as currently defined, includes: by-product cash costs, corporate general and administrative expenses, exploration expense and sustaining capital. This metric is a non-IFRS measure.

(3) PEA - ADDITIONAL CAUTIONARY NOTE

This note regarding the preliminary economic assessment ("PEA") is in addition to cautionary language already included in this news release as required under NI 43-101. The Blackwater PEA is preliminary in nature and includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA based on these mineral resources will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. This news release includes information on New Gold's PEA with respect to the Blackwater Project, which was outlined in the PEA Technical Report filed on October 10, 2012. As disclosed in the news release, New Gold has, since the date of the PEA, completed a non-material update of the mineral resource estimate for the Blackwater Project. Although the PEA represents useful, accurate and reliable information based on the information available at the time of its publication, and provides an important indicator as to the economic potential of the Blackwater Project, the PEA is based on mineral resources estimates with an effective date of July 27, 2012, which do not reflect drilling conducted since their effective date, and the PEA does not reflect the latest mineral resource estimate discussed in this news release. Certain assumptions used in the PEA, some of which relate to the July 27, 2012 mineral resource estimate, may have changed from those used for the new resource estimate, causing a variation of parameters. Moreover, the updated mineral resource estimate may impact how New Gold intends to develop the deposit, including pit outlines, production rates and mine life.

(4) UNAUDITED FINANCIAL INFORMATION

The cash and debt balance and capital expenditure information provided are unaudited figures and may differ slightly from the final results included in the 2012 annual audited financial statements and MD&A.

SOURCE: New Gold Inc.

For further information:

Hannes Portmann
Vice President, Corporate Development
Direct: +1 (416) 324-6014
Email: info@newgold.com

New Gold Well Positioned with Enhanced Financial Flexibility and Simplified Balance Sheet

Mon, 03 Dec 2012 08:00:00 -0500

(All figures are in US dollars unless otherwise indicated)

VANCOUVER, Dec. 3, 2012 /CNW/ - New Gold Inc. ("New Gold") (TSX and NYSE MKT:NGD) today provides an update on its 2012 financing activities that have resulted in the company having the highest cash balance in its history. Through the redemption of the company's senior secured notes and convertible debentures as well as the recent warrant exercise, New Gold has simplified its capital structure. None of the company's corporate debt is due until 2020. The company is in a strong financial position, with forecasted free cash flow generation from its portfolio of four producing assets expected to further enhance New Gold's financial flexibility in 2013.

Overview - 2012 Financing Activities

April 5, 2012 - Private offering of $300 million 7.00% senior notes due in 2020
May 7, 2012 - Early redemption of C$187 million face value 10.00% senior secured notes due in 2017
November 14, 2012 - Private offering of $500 million 6.25% senior notes due in 2022
November 20, 2012 - Early redemption of C$55 million subordinated convertible debentures due in 2014 satisfied by the issuance of 5.7 million common shares
November 28, 2012 - Exercise of 73.7 million C$9.00 warrants into 7.4 million common shares for proceeds of C$66 million

"Our financing initiatives have culminated in New Gold having the highest cash balance in its history," stated Randall Oliphant , Executive Chairman. "The company was able to successfully access the high yield market to secure long-dated debt in a historically low interest rate environment. We are proud to have increased our cash position by over $650 million with less than three percent dilution to our shareholders."

The face value of the company's debt outstanding is $856 million. Importantly, $800 million of New Gold's debt is now due in 2020 or beyond, well after the company's portfolio of projects are targeted to be in production and generating cash flow. The $56 million El Morro funding loan will be repaid out of a portion of New Gold's 30% share of cash flow upon the commencement of production at El Morro. As a result of the early redemption of the convertible debentures and warrant exercise, New Gold issued 13,048,865 shares, resulting in the company having 475,971,424 shares outstanding.

New Gold continues to anticipate a strong finish to 2012 and looks forward to 2013 that should see increased gold production at lower costs with the benefit of a full year of production from New Afton.

About New Gold Inc.

New Gold is an intermediate gold mining company. The company has a portfolio of four producing assets and two significant development projects. New Gold's New Afton project met its targeted June 2012 production start and began commercial production ahead of schedule in July 2012. Together with the Mesquite Mine in the United States, the Cerro San Pedro Mine in Mexico and Peak Gold Mines in Australia, the company is forecasting between 405,000 and 445,000 ounces of gold production in 2012. In addition, New Gold owns 30% of the world-class El Morro project located in Chile and 100% of the exciting Blackwater project in Canada. For further information on the company, please visit www.newgold.com.

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this news release, including any information relating to New Gold's future financial or operating performance may be deemed "forward looking". All statements in this news release, other than statements of historical fact, that address events 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", "estimates", "forecasts", "intends", "anticipates", "projects", "potential", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur" or "be achieved" or the negative connotation. 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 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, 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 international, national and local government legislation in Canada, the United States, Australia, 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 the Blackwater Project where the company has commenced the federal and provincial environmental assessment process; in Mexico where the Cerro San Pedro mine has a history of ongoing legal challenges related to our EIS and Chile where the courts have temporarily suspended the approval of the environmental permit for the El Morro project; the lack of certainty with respect to 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 New Gold is or may become a party to; 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 "Risk Factors" included in New Gold's disclosure documents filed on and 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 news release 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.

Hannes Portmann
Vice President, Corporate Development
Direct: 1 (416) 324-6014
Email: info@newgold.com

New Gold Announces Closing of $500 Million Senior Notes Offering

Wed, 14 Nov 2012 16:05:00 -0500

(All figures are in US dollars unless otherwise indicated)

VANCOUVER, Nov. 14, 2012 /CNW/ - New Gold Inc. ("New Gold") (TSX and NYSE MKT:NGD) today announces the closing of its private offering of $500 million aggregate principal amount of 6.25% Senior Notes due 2022 (the "Notes"). New Gold intends to use the net proceeds of the Notes for general corporate purposes.

"To be able to significantly increase our financial flexibility, in this historically low interest rate environment and without issuing a share, is a great result for our company," stated Brian Penny , Chief Financial Officer. "As we have done historically, New Gold will look for opportunities to put this capital to use in a manner that is value enhancing for the company."

Cautionary Note Regarding Forward-Looking Statements

This news release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian and U.S. securities legislation. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of New Gold to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks discussed in the risk factors section in New Gold's latest annual information form available under New Gold's SEDAR profile at www.sedar.com. Although New Gold has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. New Gold does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

Hannes Portmann
Vice President, Corporate Development
Direct: 1 (416) 324-6014
Email: info@newgold.com

New Gold Announces Pricing of $500 Million Senior Notes Offering

Thu, 08 Nov 2012 16:23:00 -0500

(All figures are in US dollars unless otherwise indicated)

VANCOUVER, Nov. 8, 2012 /CNW/ - New Gold Inc. ("New Gold") (TSX and NYSE MKT:NGD) today announces the pricing of its private offering of $500 million aggregate principal amount of 6.25% Senior Notes due November 15, 2022 (the "Notes"). The offering is expected to close on or about November 14, 2012. New Gold intends to use the net proceeds of the Notes for general corporate purposes.

The offer and sale of the Notes will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), and the Notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall there be any offer or sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Cautionary Note Regarding Forward-Looking Statements

Hannes Portmann
Vice President, Corporate Development
Direct: 1 (416) 324-6014
Email: info@newgold.com