New Gold Inc. (TSX: NGD) (NYSE American: NGD) is pleased to provide detailed drill results for the underground exploration program underway at its New Afton Mine and provides an update on additional exploration activities at its operations.

Highlights

• The below table provides 2022 assay result highlights for New Afton’s upper portion of the East Extension (above 1.75 g/t Au and/or 1.75% Cu and an interval ≥30m). Refer to Table 2 and Table 3 at the end of this news release for full assay results and drill hole collar coordinate

• Results to date show continuous mineralization, within an interpreted 1% copper grade shell, averaging 300 x 30 metres in plan and 250 metres down dip with higher gold and copper grades compared with the average grade of the current New Afton Mineral Reserve estimate of 0.67g/t gold and 0.74% copper
• Results will be incorporated in the 2022 year-end New Afton Mineral Resource estimate with the potential to add valuable resources at above current Mineral Reserve grades
• Geological interpretations show additional targets for higher-grade mineralization down plunge and vertically below the upper portion of East Extension where drilling is ongoing (refer to Figure 1) and both targets have the potential to host additional mineralization similar to the upper portion of the East Extension
• Given the lateral proximity to the C-Zone, the East Extension appears to have the potential to bring additional higher-grade reserves at a low development cost into the mine plan in the near-to mid-term

“I am very encouraged by the results to date on New Afton’s underground exploration program,” stated Renaud Adams, President & CEO. “New Afton’s underground exploration program is focused on increasing higher-grade Mineral Resources to enhance the near-term mine plan and extend the mine life. We are focused primarily on three key initiatives. The first involves defining the higher-grade zone within the upper portion of the East Extension. The second is to explore the potential down plunge extension of the higher-grade zone, and the third initiative is to test for additional mineralization beneath the higher-grade zone. The upper portion of the East Extension continues to return gold and copper assay results well above the current Mineral Reserve grades, while the lower portion down plunge and the D-Zone remain open. Given the lateral proximity to the C-Zone, the East Extension appears to have the potential to bring additional higher-grade reserves at a low development cost into the mine plan in the near-to mid-term.”

New Afton Mine long section with target locations

New Afton Mine

Underground East Extension

The Company launched a phase-two drilling program for the upper zone of the East Extension in October 2021 as a follow-up to the drill holes completed in 2020 targeting the high-grade gold-copper intercepts discovered in 2019 (refer to the Company’s February 12, 2020 press release for further information). The phase-two drilling program has been designed to define the extension and continuity of the mineralization to support a Mineral Resource estimate and evaluate the potential addition to the current life of mine plan. The Company advanced a 55 metre exploration drift to allow three diamond drills to intercept mineralization at appropriate angles to properly infill the interpreted target area (refer to Figures 2 and 3). The drilling program totaled 38,084 metres in 115 drill holes planned on 20 metre centers, the results of which will be incorporated in the 2022 year-end New Afton Mineral Resource estimate with the potential to add valuable resources at above current Mineral Reserve grades.

Results to date show continuous mineralization, within an interpreted 1% copper grade shell, averaging 300 x 30 metres in plan and 250 metres down dip with higher gold and copper grades compared with the average grade of the current New Afton Mineral Reserve estimate of 0.67g/t gold and 0.74% copper (refer to Figures 2 and 3). The upper zone of the East Extension is characterized by disseminated and fracture filled sulphide mineralization as bornite and chalcopyrite associated with potassic dominant alteration hosted in volcanic fragmental and intrusive lithologies controlled by cross-cutting faults often on lithological contacts.

Geological interpretations show additional targets for higher-grade mineralization down plunge and vertically below the upper portion of East Extension where drilling is ongoing (refer to Figure 1). Both targets have the potential to host additional mineralization similar to the upper portion of the East Extension.

Additional Underground Targets

An additional 5,000 metres of underground drilling is planned upon completion of the required infrastructure at the base of C-Zone development to follow up on the Artificial Intelligence (AI) target areas previously defined in 2020 and is expected to be completed by the end of 2022. The program has been designed to explore the AI Southeast and AI North target areas and to assess potential higher-grade mineralization within the D-Zone ore body (refer to Figure 1).

Regional Exploration

The Company completed the exploration drilling program at the Cherry Creek Trend area and is progressing the data interpretation to assess if a follow-up drilling phase is warranted. Additional drill ready targets have been defined upon geophysical and geochemical surveys completed within the priority areas of the Company’s landholdings. The most prospective target is located approximately eight kilometres southwest of the New Afton Mine, where a 5,000 metre reconnaissance drilling program started in August 2022 and is expected to be completed in the fourth quarter of 2022. Additional field activities, inclusive of geological mapping and geochemical survey are in progress for drill ready target definition within the broader landholdings focused on gold-copper porphyry style mineralization.

Rainy River Mine

At Rainy River, the Company is now focusing on potential additional underground mineralization in proximity to the actual operation footprint. Compilation and interpretation of the project dataset is centered approximately 500 metres from the southern limit of the ultimate open pit (refer to Figure 4), where a broader alteration halo hosting gold mineralization has been intersected along strike of historical drill hole intervals with similar alteration/mineralization. A follow-up drilling program for a total of 2,000 metres is planned to begin in the fourth quarter of 2022 and completed by year end. Additional exploration activities inclusive of geological mapping and rock and soil sampling are progressing within the broader Rainy River mineral tenures, with the objective to define prospective areas for gold mineralization and further define new drill ready targets.

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 approximately 5% equity stake in Artemis Gold Inc., and 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.

Figure 1: New Afton Mine long section with target locations and complete drill hole traces

Figure 2: New Afton Mine planview showing infill drill holes completed and copper and gold value intercepts within the East Extension higher-grade target area

Figure 3: Isometric view looking northeast across the New Afton Mine East Extension target areas

Figure 4: Rainy River Exploration – Pinewood South Target Location on Geology map with ultimate pit boundary and surface projective of known ore lenses

Table 2:  New Afton Mine East Extension Drill Assay Summary