Mr. Hannes Portmann of New Gold reports

NEW GOLD COMPLETES ACQUISITION OF BAYFIELD VENTURES

New Gold Bayfield Corp. (formerly Bayfield Ventures Corp.) has successfully completed the previously announced plan of arrangement under the Business Corporations Act (British Columbia) pursuant to which New Gold Inc., through a wholly owned subsidiary (Subco), acquired all of the issued and outstanding common shares of Bayfield Ventures for consideration of 0.0477 common share of New Gold for each Bayfield share outstanding as part of an amalgamation of Subco and Bayfield.

Following the completion of the arrangement, Bayfield's common shares will cease to be listed for trading on the TSX Venture Exchange, the OTC and the Frankfurt Stock Exchange. As soon as practicable thereafter, Bayfield intends to apply to the relevant securities regulatory authorities to cease to be a reporting issuer in each jurisdiction of Canada in which it currently has reporting obligations.

We seek Safe Harbor.