Mr. Patrick Godin reports

NEW GOLD OUTLINES SIGNIFICANT FREE CASH FLOW GENERATION PROFILE SUPPORTED BY IMPROVING PRODUCTION AND DECREASING COSTS OVER THE NEXT THREE YEARS

New Gold Inc. has provide its inaugural three-year operational outlook and updated mineral reserve and mineral resources statement for the company as of Dec. 31, 2023. The company will host a webcast today at 12:30 pm Eastern Time to discuss these items (details are provided at the end of this news release). The company uses certain non-GAAP financial performance measures throughout this release. Please refer to the "Non-GAAP Financial Performance Measures" section of this news release for more information. Numbered note references throughout this news release are to endnotes which can be found at the end of this news release.

Increasing Production and Decreasing Costs Highlight Strong Free Cash Flow Generation Over the Next Three Years

"With our inaugural presentation of three-year guidance, the company has clearly defined the path forward to significant free cash flow generation," stated Patrick Godin, President and CEO. "This is underpinned by the work completed in recent years to prepare our operations for meaningful production and cash flow increases, as costs and capital spend decrease."

• Consolidated gold production is expected to increase by approximately 35 per cent from 2023 to 410,000 to 460,000 ounces in 2026 driven by increasing production profiles at both Rainy River and New Afton as growth projects are completed in the near-term.
• Copper production is expected to increase by approximately 60 per cent from 2023 to 71 to 81 million pounds in 2026 driven by the steady ramp-up of C-zone.
• All-in sustaining costs (on a by-product basis)1 are expected to decrease by over 50 per cent compared to the 2023 midpoint of guidance to between $650 and $750 per ounce in 2026, driven by higher production at both operations, significant reduction in total capital, and lower operating costs as the C-zone crusher and conveyor comes online, and Rainy River completes Phase 4 waste removal and commences mining from the underground Main Zone.
• The higher production, lower costs, and lower capital spend over the next three years are expected to drive significant free cash flow2 for the company.

2024 to See Realization of Growth Projects, With the Second Half to Highlight Free Cash Flow Generation Potential

"The company is set to successfully complete a number of key catalysts in 2024, including reaching commercial production at New Afton's C-zone, and first ore from Rainy River's underground Main Zone. Capital deployed in 2024, weighted to the first half of the year, will allow the company to enter a sustained free cash flow generation period. In fact, at current commodity prices New Gold is expected to generate approximately $75 million in free cash flow in the second half of the year," added Mr. Godin.

• 2024 consolidated gold production is expected to be 310,000 to 350,000 ounces compared to 321,178 in 2023. Production is expected to strengthen in the second half of the year, with the second half of 2024 expected to represent approximately 60 per cent of annual production as waste stripping at Rainy River is sequenced in the first half of the year.
• 2024 copper production is expected to be between 50 to 60 million pounds, approximately 16 per cent higher than 2023 driven by increased contribution from C-zone at New Afton.
• 2024 total cash costs (on a by-product basis)1 are expected to decrease by approximately 7 per cent compared to the 2023 midpoint of guidance to between $725 and $825 per ounce driven by increased production from both operations.
• 2024 all-in sustaining costs (on a by-product basis)1 are expected to decrease by approximately 10 per cent compared to the 2023 midpoint of guidance to between $1,240 and $1,340 per ounce driven by lower total cash costs, higher production from both operations and lower sustaining capital primarily related to waste stripping activities at Rainy River.
• 2024 total capital is expected to be in-line with the 2023 guidance range, as growth projects at both operations are brought online during the year.

Strategic Outlook Beyond 2026 Highlights Operational Sustainability and Longevity, with Minimal Capital Investment

"Looking beyond our three-year guidance, the company has a strategic objective of targeting a sustainable production platform of approximately 600,000 gold equivalent ounces per year with a line of sight until at least 2030. Following the successful execution of operational stabilization initiatives and growth projects over the past two years, we are increasingly looking to unlock the long-term value of our operations. Based on Mineral Reserves alone, Rainy River and New Afton have mine lives to 2031 and 2030, respectively, and modest conversion of Mineral Resources to Mineral Reserves would not only extend mine lives but also improve the production profiles from 2027 to 2031 with minimal capital investment. The strategic outlook demonstrates our confidence in the sustainability of our operations" added Mr. Godin.

• Rainy River successfully added 201,000 ounces of open pit and underground gold Mineral Reserves, replacing 2023 depletion by 74 per cent. Extension of open pit mining, with the inclusion of Phase 5, is expected to maintain mill throughput near full capacity until at least 2030.
• Following a detailed optimization of the Rainy River underground mining method, design and schedule, lateral development metres were reduced despite an increase in underground Mineral Reserves. As a result, the underground ramp-up period is de-risked and the steady-state underground production rate is expected to increase to 5,500 tpd beginning in 2027.
• Several high-quality open pit and underground exploration targets were identified in 2023, including the extension of existing zones and potential new zones. From 2017 to 2022, minimal exploration drilling was carried out at Rainy River, as the mine focused on ramping up production and stabilizing the operation. As such, several promising targets remain untested. In 2024, exploration at Rainy River will focus on drilling several of these targets from both surface and underground.
• On October 10, 2023, the company presented a strategic pipeline for increasing the production profile and extending mine life at New Afton, including the evaluation of three promising opportunities for conversion of Mineral Resources to Mineral Reserves: C-zone Extension, East Extension, and D-zone. As a result of infill drilling, a portion of Inferred Mineral Resources were converted to Measured and Indicated Resources at year-end.
• Additionally, the company reported encouraging drill results from two potential new mining zones: K-zone and AI-Southeast. Development of an exploration drift is now underway which is anticipated to provide better access to drill these zones, speeding up exploration efforts. The first drill bay is expected to be operational by the second quarter of 2024, with full completion of the drift scheduled in the third quarter.
• Following commissioning of the thickened and amended tailings plant and in-pit tailings storage project in late 2022, New Afton has sufficient tailings capacity to double the remaining mine life with minimal capital.

Three-Year Consolidated Operational Outlook

In 2024, the company will report production on a gold and copper basis. Operating expense will be reported on a co-product basis. Consolidated total cash costs1,4 and all-in sustaining costs1,4 will be reported on a by product basis, net of by-product silver and copper sales. Given New Afton's significant copper contribution, the mine will also report cash costs and all-in sustaining costs on a co-product basis, which removes the impact of copper sales revenue and apportions cash costs and all-in sustaining costs to gold and copper activities, and subsequently divides the amount by the total gold ounces or pounds of copper sold, as the case may be, to arrive at per ounce or per pound figures. The company has assumed $22.00 per silver ounce and $3.75 per copper pound, and a foreign exchange rate of $1.32 Canadian dollars to $1.00 US dollar in its three-year outlook.

2024 Consolidated Outlook

Gold production2 is expected to be 310,000 to 350,000 ounces, approximately 3 per cent higher than 2023 driven by increased underground production at Rainy River and the ongoing ramp-up of C-zone at New Afton. Production is expected to strengthen in the second half of the year, with the second half of 2024 expected to represent approximately 60 per cent of annual production as waste stripping at Rainy River is sequenced in the first half of the year. Copper production is expected to be between 50 to 60 million pounds, approximately 16 per cent higher than 2023 driven by increased contribution from C-zone at New Afton.

2024 total cash costs (on a by-product basis)1 are expected to decrease by approximately 7 per cent compared to the 2023 midpoint of guidance to between $725 and $825 per ounce driven by increased production from both operations. 2024 all-in sustaining costs (on a by-product basis)1 are expected to decrease by approximately 11 per cent compared to the 2023 midpoint of guidance to between $1,240 and $1,340 per ounce driven by lower total cash costs and higher production from both operations. Total cash costs (on a by-product basis)1 and all-in sustaining costs (on a by-product basis)1 are expected to decrease quarter-over-quarter throughout 2024 due to increasing production and a lower strip ratio at Rainy River in the second half of 2024.

Total capital is expected to be $290 to $330 million, of which, sustaining capital1 is expected to be $115 to $130 million, and growth capital1 is expected to be $175 to $200 million.

Sustaining capital1 is expected to be generally in-line with the prior year, as 2023 sustaining capital spend was tracking to the low end of the guidance range through the first nine months, as previously stated. The sustaining capital1 spend primarily relates to capital stripping activities at Rainy River and tailings dam raises and maintenance. Sustaining capital1 is expected to trend lower through the second half of the year, as stripping activities at Rainy River are prioritized in the first half of the year. The second half of 2024 expected to represent approximately 40 per cent of the sustaining capital spend. Growth capital1 at New Afton relates to C-zone development and commissioning of the crusher and conveyor and at Rainy River relates to advancing underground development at the Intrepid and underground Main Zones. Growth capital1 is expected to be higher in the second half of the year as major projects near completion. The second half of 2024 is expected to represent approximately 55 per cent of the growth capital spend.

Exploration expenditures are expected to be $17 to $22 million, an increase over the prior year, and are expected to focus on expanding the current Mineral Resources and Mineral Reserves and defining new mining zones within the existing footprint of the company's operations. A portion of the exploration expenditures is also attributed to a regional program that targets the discovery of the next generation of porphyry copper-gold deposits in South-Central British Columbia.

2024 Rainy River Outlook

Gold production2 is expected to be 250,000 to 280,000 ounces, an increase of 4 per cent over the prior year due to a modest increase in gold grade as the underground mining rate is expected to increase. Production is expected to significantly strengthen in the second half of the year as waste stripping activities are sequenced in the first half. The second half of 2024 is expected to represent approximately 60 per cent of the annual production, with the fourth quarter expected to represent approximately 35 per cent. Initial production from the underground Main Zone remains on-track for the fourth quarter of 2024.

2024 total cash costs (on a by-product basis)1 are expected to be in-line with 2023. All-in sustaining costs (on a by-product basis)1 are expected to decrease by approximately 4 per cent compared to the 2023 midpoint of guidance to $1,425 and $1,525 per ounce due higher production. Total cash costs (on a by-product basis)1 and all-in sustaining costs (on a by-product basis)1 are expected to decrease significantly on a quarterly basis throughout 2024 due to the processing of lower grades in the first half of the year while stripping activities are sequenced.

Total capital is expected to be $145 to $165 million. Sustaining capital1 is expected to be $100 to $110 million, including approximately $50 million in capitalized waste ($25 million of which was deferred from 2023), $25 million towards the annual tailings dam raise, $10 million in capital parts and components replacement programs and $20 million related to equipment and other general sustaining capital. Growth capital1 is expected to be $45 to $55 million, related to the continued development of the Intrepid and underground Main Zones. Sustaining capital1 is expected to be heavily first half weighted and will trend lower in the second half of the year, with the second half of 2024 expected to represent approximately 40 per cent of the sustaining capital spend. Growth capital1 is expected to be second half weighted, as underground mine development is increasing in the second half of the year. The second half of 2024 is expected to represent approximately 70 per cent of the growth capital spend.

Waste stripping activities are expected to significantly decrease after the first half of 2024, priming Rainy River to enter a sustained free cash flow generating period.

2024 Rainy River Exploration Outlook

2024 exploration expenditures at Rainy River are expected to be approximately $5 million. The program is expected to focus on converting Mineral Resources to Mineral Reserves, expanding current ore zones and exploring for new mining zones within the Rainy River footprint.

Following the successful conversion of Phase 5 and its addition to the open pit Mineral Reserves in 2023, the company intends to continue testing other near-surface opportunities for open pit extraction, including high-quality targets that were previously

de-prioritized during the construction and production ramp-up period. These targets include the Western Zone, North Target, 280 Zone, and ODM East. Further extension of open pit mining could sustain operating the processing plant at full capacity beyond 2030.

The company also intends to grow the underground Mineral Resources and Mineral Reserves by targeting the down-plunge extension of current ore zones which remain open at depth, including ODM Main and 17 East. Exploration is expected to be accelerated once underground development is operational and drilling from underground can commence. Concurrently, the company intends to utilize the new, underground connection drift to continue to explore for potential new zones, such as the Gap zone located between the Intrepid and underground Main Zones.

Looking beyond the existing operational footprint, the company intends to follow up on the compilation of geochemical and geophysical data that was completed in 2023 to generate exploration targets over the extensive Rainy River property. In 2024, soil and till geochemistry work will be carried out to generate targets, a proven method that led to the discovery of the Rainy River deposit.

2024 New Afton Outlook

Gold production2,3 is expected to be 60,000 to 70,000 ounces, approximately 3 per cent higher than 2023 (excluding gold produced from ore purchase agreements). Copper production is expected to be 50 to 60 million pounds, approximately 16 per cent higher than 2023. The increase in gold and copper production are a result of ongoing steady-state production above design at B3, and the ramp-up of mining at C-zone through the year. B3 is expected to average approximately 8,300 tpd in 2024. C-zone commercial production remains on-track for the second half of 2024, and with a modest ramp-up through 2024 mill throughput is expected to average 12,000 tpd by year-end. Gold and copper production is expected to be relatively constant on a quarterly basis as a reduction in grade through the year is offset by increasing throughput as C-zone ramps up.

Total cash costs (on a by-product basis)1 are expected to decrease compared to the 2023 midpoint of guidance to between ($300) and ($200) per ounce due to higher production. All-in sustaining costs (on a by-product basis)1 are expected to decrease compared to the 2023 midpoint of guidance to between $25 and $125 per ounce due to lower total cash costs and higher production. Total cash costs1 and all-in sustaining costs1 are expected to decrease on a quarterly basis throughout 2024 as throughput increases as C-zone ramps up.

Total capital is expected to be $145 to $165 million. Sustaining capital1 is expected to be $15 to $20 million, including approximately $5 million related to tailings management and $5 million related to equipment and the remainder related to other general sustaining capital. Growth capital1 is expected to be $130 to $145 million related to the continued advancement of the C-zone project, primarily focused on mine development, commissioning of the crusher and conveyor and other infrastructure installation, and continued progress on stabilization. Growth capital1 is expected to be generally consistent throughout the year.

The ramp-up of mining at C-zone through the year and the completion of key development and infrastructure activities position New Afton to begin sustained free cash glow generation in the second half of 2024.

2024 New Afton Exploration Outlook

2024 exploration expenditures at New Afton are expected to be $12 to $17 million. New Afton continues to execute on its exploration strategy to extend the mine life beyond 2030. The company is currently evaluating three promising opportunities for potential Mineral Reserves conversion: C-zone Extension, East Extension and D-zone. The opportunities at C-zone and East Extension are well positioned to benefit from the C-zone materials handling, ventilation and dewatering infrastructure, thus reducing additional capital investment.

Exploration efforts in 2024 are expected to also focus on potential new mine zones located above the C-zone extraction level, which would provide opportunities to minimize capital investment and maximize free cash flow generation. The company has commenced development of a 370-metre exploration drift to accelerate underground exploration drilling and provide ideal drill platforms for Mineral Resources and Mineral Reserves growth over the coming years. The first drill bay of the exploration drift is expected to be operational in the second quarter of 2024, with full completion scheduled in the third quarter, and is expected to prioritize the AI-Southeast and K-zone targets.

The company continues to advance a number of strategic opportunities for mine life extension, both within the New Afton land package and regionally within South-Central British Columbia, leveraging on New Afton's processing plant, infrastructure and tailings storage facility, which have sufficient capacity to process significantly more ore beyond the current New Afton mine life.

2024 Sensitivities

A summary of key assumption sensitivities to all-in sustaining costs1 can be found below:

Mineral Reserves and Mineral Resources (as at December 31, 2023)

As at December 31, 2023, New Gold is reporting Mineral Reserves and Mineral Resources as summarized in the table below. Detailed Mineral Reserve and Mineral Resource tables follow at the end of this press release.

As of December 31, 2023, New Gold reported total Mineral Reserves of 3,156,000 ounces of gold, 8.2 million ounces of silver, and 551 million pounds of copper. Measured and Indicated Mineral Resources, exclusive of Mineral Reserves, totals 2,187,000 ounces of gold, 7.3 million ounces of silver and 1,147 million pounds of copper and Inferred Mineral Resources of 230,000 ounces of gold, 563,000 ounces of silver and 101 million pounds of copper.

Rainy River successfully added new open pit and underground Mineral Reserves in 2023, reporting a total of 2,421,000 ounces of gold, 74 per cent replacement of mining depletion. In the open pit mine, Phase 5 is included in Mineral Reserves following an infill drilling campaign in 2023. Phase 5 is expected to add approximately one year to the open pit mine life. Underground Mineral Reserves increased from 1,228,000 ounces of gold at the end of 2022 to 1,322,000 ounces of gold at the end of 2023, more than offsetting depletion from underground mining.

New Afton reported Mineral Reserves of 735,000 ounces of gold and 551 million pounds of copper in the B3 and C-zone block caves, forming the basis for a reserves mine life to 2030. Mineral Reserves reduced by 69,000 ounces of gold and 56 million pounds of copper in 2023 due to mining depletion. The company is targeting to replace a portion of mining depletion over the next few years, starting at the end of 2024, through extension of existing zones and inclusion of new mining zones.

Operational Outlook Technical Session Webcast Details

The company will host a Technical Session via webcast today at 12:30 pm Eastern Time to discuss the operational outlook.

Participants may listen to the webcast by registering on our website at www.newgold.com or via the following link https://app.webinar.net/r8RX4Pl4PYA

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 U.S. and Canada, passcode 41369885

A recorded playback of the conference call will be available until March 9, 2024 by calling North American toll free 1-888-390-0541, or 1-416-764-8677 outside of the U.S. and Canada, passcode 369885. An archived webcast will also be available at www.newgold.com.

About New Gold

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 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.

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