Mr. Patrick Godin reports

NEW GOLD REPORTS 2023 THIRD QUARTER RESULTS

New Gold Inc. has released third quarter results for the company as of Sept. 30, 2023. Production totalled 111,204 gold equivalent ounces at all-in sustaining costs of $1,477 per gold equivalent ounce. Due to the strong operational performance over the first nine months of the year, consolidated 2023 production is tracking to the top end of guidance, and all-in sustaining costs are tracking to the low end of the guidance range. Solid production and low costs in the third quarter resulted in strong cash flow from operations of $100-million and free cash flow of $22-million, highlighting the cash generation profile as growth projects are completed in the coming years, which is expected to lead to production growth and tapering capital costs. (All amounts are in U.S. dollars unless otherwise indicated.)

Strong operational performance positions New Gold to achieve top end of 2023 production guidance and low end of cost guidance:

• Third quarter consolidated gold equivalent production of 111,204 ounces (82,986 ounces of gold, 13.2 million pounds of copper and 145,452 ounces of silver), the highest quarterly production since 2021 and a 22-per-cent increase over the prior-year period;
• All-in sustaining costs of $1,477 per gold equivalent ounce, including total cash costs of $1,044 per gold equivalent ounce;
• Standout quarter from New Afton, exceeding planned copper and gold production, mostly as a result of higher tonnes processed; B3 extraction rates continue to exceed plan; production is tracking to the top end of 2023 guidance;
• Rainy River continues to deliver stable production quarter over quarter; both the open-pit and underground mines are well positioned to deliver fourth quarter mill feed, and the processing plant is running well; production is tracking to the top end of 2023 guidance;
• The company is currently tracking to the top end of consolidated production guidance for gold, copper and gold equivalent production, and all-in sustaining costs are tracking to the low end of the guidance range.

Positive free cash flow achieved in the quarter, underscoring the near-term cash generation profile as both operations execute on growth projects:

• Cash and cash equivalents of $179-million as at Sept. 30, 2023, an increase of $5-million from the second quarter driven by free cash flow generated at both Rainy River and New Afton;
• Cash generated from operations of $100-million, or 15 cents per share, in the third quarter, and cash generated from operations, before changes in non-cash operating working capital, of $88-million, or 13 cents per share;
• Free cash flow of $22-million despite the company currently being in an intensive capital spending period, including the New Afton C-zone project and establishment of the Rainy River underground mine;
• Net loss of $3-million, or nil per share, and adjusted net earnings of $23-million, or three cents per share;
• Capital spending is expected to taper off significantly over the next few years upon completion of growth projects and a significant reduction in open-pit waste stripping at Rainy River after 2024; together with increasing production profiles at both operations and decreasing unit operating costs per tonne at New Afton with the return to higher throughput rates, free cash flow is expected to increase significantly;
• Subsequent to quarter-end, the company announced the achievement of two key milestones with the completion of the first draw bell at New Afton's C-zone and the commissioning of the final two of 29 dewatering wells at the New Afton tailings storage facility (NATSF), as planned (refer to the company's Oct. 2, 2023, news release for further information); commercial production from C-zone is on track for the second half of 2024; at Rainy River, development of the connection ramp from Intrepid to underground Main zone is on track for first ore production from underground Main zone in the second half of 2024.

Strategic pipeline to extend New Afton mine life beyond 2030 with minimal capital investment:

• Subsequent to quarter-end, the company provided an update on promising opportunities to extend the mine life at New Afton beyond 2030, and reported encouraging drill results and future exploration plans at the New Afton mine (refer to the company's Oct. 10, 2023, news release for further information).
• As a priority, New Gold is looking to convert a portion of the existing underground mineral resource base to mineral reserves, including C-zone extension, East extension and D-zone. Additionally, initial drilling results from K-zone and AI-Southeast are encouraging.
• The company will continue to employ a disciplined approach to capital allocation to sustain New Afton's significant cash flow profile throughout the C-zone period, from the second half of 2024 to 2030, by leveraging existing underground infrastructure and New Afton's mill and tailings facilities.

"The third quarter was an impressive one for New Gold," stated Patrick Godin, president and chief executive officer. "We delivered a 22-per-cent increase in gold equivalent production over the prior-year period with a meaningful decrease in all-in sustaining costs, leading to positive free cash flow during the quarter for the company while continuing to invest in our growth projects. We have performed well through 2023 with a continued focus on operational discipline and safety, and I am pleased that we are tracking to the top end of our production guidance and the low end of our all-in sustaining cost guidance.

"We are entering a growth period, and the third quarter saw our company make big strides towards derisking and securing the future production at our operations. I want to re-emphasize the two key milestones achieved at New Afton with the completion of the first draw bell at C-zone and the final commissioning of all 29 dewatering wells at the NATSF. This is a pivotal moment for the New Afton mine with production growth and declining costs expected in the near term, and all major capital expenditures for the tailings stabilization completed. Rainy River continued to advance the connection ramp towards the underground Main zone from Intrepid, allowing us to continue to take advantage of a number of efficiencies both underground and in the open pit," added Mr. Godin.

Through the first nine months of the year, both operations delivered solid production and cost performance. The company is currently tracking to the top end of consolidated production guidance for gold, copper and gold equivalent production, and all-in sustaining costs are tracking to the lower end of the guidance range.

Rainy River is tracking toward the top end of the gold equivalent production range. Sustaining capital is expected to be at the low end of the guidance range primarily due to lower waste stripping year to date, resulting in lower capitalized mining costs, with those costs remaining in operating expenses. As a result of the lower capitalization of mining costs, operating expenses per gold equivalent ounce are tracking above the top end of the guidance range. All-in sustaining costs are tracking to the midpoint of the guidance range. Growth capital is expected to be within its guidance range.

At New Afton, copper, gold and gold equivalent production is tracking toward the top end of its respective production guidance ranges, with operating expenses per gold equivalent ounce and all-in sustaining costs now tracking toward the low end of their respective cost guidance ranges. Sustaining and growth capital is both expected to be within its respective guidance ranges.

Third quarter 2023 conference call and webcast

The company will host a webcast and conference call tomorrow, Oct. 26, 2023, at 8:30 a.m. Eastern Time, to discuss the company's third quarter consolidated results.

• Participants may listen to the webcast by registering on the company's website.
• Participants may also listen to the conference call by calling North American toll-free 1-888-664-6383 or 1-416-764-8650 outside of the United States and Canada, with passcode 211192600.
• To join the conference call without operator assistance, you may register and enter your phone number to receive an instant automated callback.
• A recorded playback of the conference call will be available until Nov. 26, 2023, by calling North American toll-free 1-888-390-0541 or 1-416-764-8677 outside of the U.S. and Canada, with passcode 119260. An archived webcast will also be available at the New Gold website.

About New Gold Inc.

New Gold is a Canadian-focused intermediate mining company with a portfolio of two core producing assets in Canada: the Rainy River gold mine and the New Afton copper-gold mine. The company also holds other Canadian-focused investments. New Gold's vision is to build a leading diversified intermediate gold company based in Canada that is committed to the environment and social responsibility.

Technical information

The scientific and technical information contained in this news release has been reviewed and approved by Yohann Bouchard, executive vice-president and chief operating officer for the company. Mr. Bouchard is a professional engineer and a member of the Professional Engineers of Ontario. Mr. Bouchard is a qualified person for the purposes of National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

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