New Gold Announces 2016 Financial Results with Record Low Costs Driving Strong Margins and Cash Flow

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February 15, 2017 – New Gold Inc. (“New Gold”) (TSX:NGD) (NYSE MKT:NGD) today announces its 2016 fourth quarter and full-year financial results and updates its year-end reserve and resource estimates. The company previously announced its preliminary 2016 operational results and 2017 guidance on January 30, 2017.

2016 FULL-YEAR HIGHLIGHTS  Full-year gold production of 381,663 ounces achieved the mid-point of the guidance range of 360,000 to 400,000 ounces  Copper production of 102 million pounds exceeded the high end of the guidance range of 81 to 93 million pounds by 10%  2016 operating expense of $640 per gold ounce and $1.14 per copper pound  2016 delivered record low all-in sustaining costs(1) of $692 per ounce, including total cash costs(2) of $349 per ounce  Cash generated from operations before changes in non-cash operating working capital(3) of $302 million  Cash generated from operations of $282 million  Adjusted net earnings(4) of $24 million, or $0.05 per share  Net earnings of $3 million, or $0.01 per share  Year-end cash and cash equivalents of $186 million 2016 FOURTH QUARTER HIGHLIGHTS  Fourth quarter production of 95,883 ounces of gold and 26 million pounds of copper  Fourth quarter operating expense of $780 per gold ounce and $1.58 per copper pound  Fourth quarter all-in sustaining costs of $619 per ounce, including total cash costs of $360 per ounce  Cash generated from operations before changes in non-cash operating working capital of $69 million  Cash generated from operations of $52 million  Adjusted net loss of $2 million, or $nil per share  Net loss of $20 million, or $0.04 per share MINERAL RESERVES AND RESOURCES  2016 year-end mineral reserves of 14.7 million ounces of gold, 1.1 billion pounds of copper and 76 million ounces of silver

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