New Gold : Presentation PDF 2.16 MB

New Gold Corporate Presentation

World Gold Forum

April 13 - 15, 2021

Cautionary Statements

ALL AMOUNTS IN U.S. DOLLARS UNLESS OTHERWISE STATED

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain information contained in this presentation, including any information relating to New Gold's future financial or operating performance are "forward looking". All statements in this presentation, other than statements of historical fact, which address events, results, outcomes or developments that New Gold expects to occur are "forward-looking statements". Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "scheduled", "targeted", "estimates", "forecasts", "intends", "anticipates", "projects", "potential", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur" or "be achieved" or the negative connotation of such terms. Forward-looking statements in this presentation include, among others, statements with respect to: the Company's plan activities on ESG related initiatives; the Company's expectations with respect to production, operating expenses, cash costs, AISC, sustaining and growth capital, and gold and copper grades at the Rainy River Mine and the New Afton Mine for 2021; expected results of key performance indicators at the Rainy River Mine and the New Afton Mine for 2021; the timing of completion and parameters for capital and construction projects at the Rainy River Mine and the New Afton Mine; the Company's expectation relating to accessing first ore in the Intrepid Zone at the Rainy River Mine, and timing of production from the Intrepid zone; the impact of construction delays related to the thickener at the New Afton mine; the Company's expectations with respect to the ramp up of operations at the New Afton mine; the use of stockpiles at New Afton in 2021; the Company's expectations with respect to timing of production from the B3 zone, and targeted overall contribution; the Company's expectations with respect to the key capital projects at the New Afton Mine, including the B3 C- Zone development; the timing of production and extent of production from the B3 zone and other area in 2021; the timing and scope of the planned exploration drilling programs and expected timing of results at the Rainy River Mine and Cherry Creek; the timing of receipt of permits at the New Afton Mine; the Company's ability to reduce the risk of the spread of COVID-19; the anticipated receipt of the C$50 million outstanding cash payment from the divestment of the Blackwater Project to Artemis, and the Company's ability to realize value from the gold stream of the Blackwater project; the adequacy of the Company's liquidity position; and Mineral Reserve and Mineral Resource estimates;

All forward-looking statements in this presentation are based on the opinions and estimates of management as of the date such statements are made and are subject to important risk factors and uncertainties, many of which are beyond New Gold's ability to control or predict. Certain material assumptions regarding such forward-looking statements are discussed in this presentation, its most recent annual information form and technical reports on the Rainy River Mine and New Afton Mine filed at www.sedar.com and on EDGAR at www.sec.gov. In addition to, and subject to, such assumptions discussed in more detail elsewhere, the forward-looking statements in this presentation are also subject to the following assumptions: (1) there being no significant disruptions affecting New Gold's operations other than as set out herein; (2) political and legal developments in jurisdictions where New Gold operates, or may in the future operate, being consistent with New Gold's current expectations; (3) the accuracy of New Gold's current mineral reserve and mineral resource estimates; (4) the exchange rate between the Canadian dollar and U.S. dollar, and to a lesser extent, the Mexican Peso, being approximately consistent with current levels; (5) prices for diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; (6) equipment, labour and materials costs increasing on a basis consistent with New Gold's current expectations; (7) arrangements with First Nations and other Aboriginal groups in respect of the New Afton Mine and Rainy River Mine being consistent with New Gold's current expectations, particularly in the context of the outbreak of COVID-19; (8) all required permits, licenses and authorizations being obtained from the relevant governments and other relevant stakeholders within the expected timelines and the absence of material negative comments during the applicable regulatory processes; (9) there being no significant disruptions to the Company's workforce at either the Rainy River or New Afton Mine due to cases of COVID-19 or any required self-isolation (due to cross-border travel or, exposure to a case of COVID-19 or any other reason); (10) the responses of the relevant governments to the COVID- 19 outbreak being sufficient to contain the impact of the COVID-19 outbreak; (11) there being no material disruption to the Company's supply chains and workforce that would interfere with the Company related to COVID-19 , including the completion of key capital and construction projects and the commencement and completion of the planned exploration drilling programs at the Rainy River Mine and the New Afton Mine and there being no material disruption to the Company's supply chains and workforce that would interfere with the Company's anticipated course of action at the New Afton Mine and the systematic ramp-up of operations on the timing described herein or at all; (12) the long- term economic effects of the COVID-19 outbreak not having a material adverse impact on the Company's operations or liquidity position; and (13) Artemis being able to complete the remaining C$50 million cash payment due on August 24, 2021 for the acquisition of the Blackwater Project.

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Cautionary Statements

ALL AMOUNTS IN U.S. DOLLARS UNLESS OTHERWISE STATED

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

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 and the availability and management of capital resources; additional funding requirements; price volatility in the spot and forward markets for metals and other commodities; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States and, to a lesser extent, Mexico; discrepancies between actual and estimated production, between actual and estimated mineral reserves and mineral resources and between actual and estimated metallurgical recoveries; changes in national and local government legislation in Canada, the United States and, to a lesser extent, Mexico 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 in which New Gold operates, 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 mineral reserves and mineral resources; competition; loss of key employees; rising costs of labour, supplies, fuel and equipment; actual results of current exploration or reclamation activities; uncertainties inherent to mining economic studies; 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; unexpected delays and costs inherent to consulting and accommodating rights of Indigenous groups; risks, uncertainties and unanticipated delays associated with obtaining and maintaining necessary licenses, permits and authorizations and complying with permitting requirements; there being cases of COVID-19 in the Company's workforce at either the Rainy River or New Afton Mine, or both; there being no significant disruptions to Company's workforce at either the Rainy River Mine or the New Afton Mine, or both, due to cases of COVID or any required self-isolation (due to cross-border travel, exposure to a case of COVID-19 or any other reason) the responses of the relevant governments to the COVID-19 outbreak not being sufficient to contain the impact of the COVID-19 outbreak; disruptions to the Company's supply chain and workforce due to the COVID-19 outbreak; an economic recession or downturn as a result of the COVID-19 outbreak that materially adversely affects the Company's operations or liquidity position; there being further shutdowns at the Rainy River or New Afton Mines; the Company not being able to complete its construction or mine development projects at the Rainy River Mine or the New Afton Mine on the timing described herein or at all; the Company not being able to commence or complete the planned exploration drilling programs at the Rainy River Mine and Cherry Creek on the timing described herein or at all; Artemis being able to complete the remaining C$50 million cash payment due on August 24, 2021 for the acquisition of the Blackwater Project; and the Company experiencing a material delay in completing all non- recurring capital projects at Rainy River and New Afton. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental events and hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, mud rushes, 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 Annual Information Form and other disclosure documents filed on and available at www.sedar.com and on EDGAR at www.sec.gov. 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 PRESENTATION 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.

For further information on the Company's response to COVID-19, please refer to: https://www.newgold.com/covid-19/

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Committed to Sustainability and ESG

Environment

Water Management

• Operations are focused by strengthening water standards and processes and our approach to water stewardship

Tailings Management

• New Gold supports and adheres to the
  Mining Association of Canada's
  Toward Sustainable Mining Tailings Management Protocol and is a member of the Canadian Dam Association

Climate Action

• Reducing our carbon footprint by focusing on energy efficiency, reducing fossil fuel consumption and reducing electricity generated from fossil fuels

Social

Indigenous Relations

• New Gold works with community members to identify opportunities for economic benefit through training, business development and procurement opportunities

Community Investment

• Actively support Indigenous education programs for K-12 and post secondary opportunities for Indigenous communities

Community Engagement

• Operations seek to identify and review community of interest on an annual basis to ensure engagement is happening with all relevant stakeholders

Governance

Governance

• Board Committee oversees Technical Operations and Sustainability
• CEO accountable for Sustainability
• Director of Sustainability responsible for strategy development and working with sites
• Site GMs, Community & Enviro Managers responsible for site-based activities, regulators and priorities
• Community and Enviro teams implement plans

New Gold continues to prioritize the health, safety and well-being of our people and is committed to providing employment, training, opportunities and progression paths for our teams as we actively seek to ensure we promote diversity within our teams at all levels of the organization.

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Building a Canadian Focused Multi-Asset Company

Blackwater Gold Stream

8% Gold Stream

Owner: Artemis Gold (100%)

Open pit project near Prince George, BC

Rainy River Gold Mine

Open pit & underground mine

Located near Ft. Frances, ON

Rainy River Mine: Ontario, Canada

• Open pit and underground mine
• Transitioned to sustainable FCF for 2021 and over LoM; Life of Mine FCF of ~$1.1B1
• Enhanced underground mine scenarios
• • Intrepid Zone: ~120koz in current mine life
  • Ongoing potential expansion of mine life beyond 2028
• Exploration drilling launched in Q4 to test potential on broader land package and results are expected to be released in the latter part of Q1 2021

New Afton Mine: B.C., Canada

New Afton Copper/Gold Mine

Underground block cave mine

Located near Kamloops, BC

Cerro San Pedro Gold/Silver Mine

Reclamation underway

• Copper/gold producer
• Integrated B3/C-Zone optimization; mine life to 2030
• B3/C-Zonedevelopment underway; self-funded approach; B3 projected production in Q2 2021
• Life of Mine FCF of ~$1.2B1,2; highly leveraged to copper price
• Cherry Creek drilling program launched in Q4, focusing on the 12-kilometre trend, located within 3 km of mill

Blackwater (Artemis Gold): 8% Gold Stream

• 8% stream on first 280,000 gold oz. declining to 4% on remaining production and 6% equity position
• PFS released Aug/20: Total gold production of ~8moz. with ~450koz delivered to New Gold via gold stream

1. Assuming $1,550/oz. gold, $3.00/lb copper and $17.50/oz. silver USD/CAD exchange rate of C$1.30 to US$1.00.
2. Excludes Ontario Teachers' Pension Plan's New Afton free cash flow interest (refer to Feb. 25, 2020 press release).

Average Annual Production of ~404 koz gold and 66 Mlbs copper (2021-2025)

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