New Gold Inc. (TSX: NGD) (NYSE American: NGD) reports first quarter results for the Company as of March 31, 2023. The Company will host a conference call and webcast tomorrow, April 27, 2023 at 8:30 am Eastern Time to discuss the first quarter consolidated results (details are provided at the end of this news release). For detailed information, please refer to the Company’s Management’s Discussion and Analysis and financial statements for the quarter ended March 31, 2023 that are available on the Company’s website at www.newgold.com and on SEDAR at www.sedar.com. The Company uses certain non-GAAP financial performance measures throughout this news release. Please refer to the “Non-GAAP Financial Performance Measures” section of this news release and the MD&A for more information. Numbered note references throughout this news release are to endnotes which can be found at the end of this news release.

Consolidated First Quarter Highlights

• Gold equivalent¹ production for the quarter of 104,857 ounces (82,477 ounces of gold, 10.3 million pounds of copper and 137,698 ounces of silver)
• Operating expenses of $1,086 per gold eq. ounce
• All-in sustaining costs² of $1,486 per gold eq. ounce, including total cash costs² of $1,134 per gold eq. ounce
• Average realized gold price² of $1,890 per ounce and average realized copper price² of $4.10 per pound
• Cash generated from operations of $61 million, or $0.09 per share
• Cash generated from operations, before changes in non-cash operating working capital² of $76 million, or $0.11 per share
• Net loss of $32 million, or $0.05 per share
• Adjusted net earnings² of $18 million, or $0.03 per share
• During the quarter, the Company sold its shares in Artemis Gold Inc. for approximately C$31.5 million
• Cash and cash equivalents of $197 million as at March 31, 2023
• Subsequent to the quarter, on April 26, 2023, the Company amended its revolving credit facility, extending the maturity date to December 2026 from December 2025
• Rob Chausse, New Gold’s Chief Financial Officer, to retire at the end of 2023, and will assist with the planned transition of responsibilities through the remainder of the year

“The first quarter saw New Gold have one of its strongest and safest starts in recent years,” stated Patrick Godin, President & CEO. “We delivered a 20% increase in gold equivalent production and lower all-in sustaining costs, significantly increasing our margins over the prior-year period. I am incredibly proud that our operations excelled without sacrificing the safety of our teams as both sites experienced no lost time injuries during the quarter. New Afton reached an impressive milestone of exceeding 1 million hours since their last lost time injury, and Rainy River surpassed 1.6 million hours. With our strong start to the year, we are well positioned to meet our guidance ranges set out earlier in the year.”

“We maintained our focus on the longer-term strategy of New Gold and made meaningful advancements both operationally and financially. We strengthened our balance sheet and improved our financial flexibility with the sale of our Artemis Gold shares during the quarter and extending our credit facility term by one year.  We continued to advance underground development at the Intrepid underground zone and underground optimization opportunities at Rainy River, as well as C-Zone development at New Afton. I am happy that we enhanced our team’s bench strength by adding an experienced Chief Operating Officer in Yohann Bouchard as well as Luke Buchanan VP, Technical Services and Jean-François Ravenelle VP, Geology, to our technical team. They will be assets to the Company as we continue to pursue our mission of being a leading intermediate gold and copper producer,” added Mr. Godin.

“I would also like to acknowledge Rob’s retirement at the end of this year. Since joining the Company in 2018, Rob has been instrumental in transforming and strengthening the Company and our balance sheet to what it is today. On behalf of New Gold, we thank Rob for his contribution and his leadership over the past 5 years, and we are grateful to have his guidance during this transition phase. We wish Rob all the best in retirement,” added Mr. Godin. “Concurrently, I am excited to announce Keith Murphy has been promoted to VP, Finance and will assume greater finance responsibilities going forward. Keith has been a key member of our finance team, working at New Gold for 10 years, with the last 5 years under Rob’s guidance.  I look forward to working with him closely in his new role.”

Consolidated Financial Highlights

• Revenue increased over the prior-year period due to higher gold and copper sales volume, partially offset by lower gold and copper prices.
• Operating expenses increased over the prior-year period primarily due to higher operating tonnes mined at both sites.
• Net loss increased over the prior-year period primarily due to an unrealized loss on the revaluation of the Rainy River gold stream obligation and the New Afton free cash flow interest obligation.
• Adjusted net earnings² increased over the prior-year period due to higher revenue and lower exploration and business development costs, partially offset by higher operating expenses, and depreciation and depletion.
• Cash generated from operations for the quarter decreased over the prior-year period due to negative working capital movements, partially offset by higher revenue.

Consolidated Operational Highlights

Rainy River Mine

Operational Highlights

Operating Key Performance Indicators

• Gold eq.¹ production was 67,596 ounces (66,201 ounces of gold and 110,976 ounces of silver), an increase over the prior-year period due to higher gold grade with the inclusion of higher grade underground tonnes, partially offset by lower tonnes processed. Production is expected to strengthen in the second half of the year and represent approximately 55% of the annual production.
• Operating expense per gold eq. ounce increased over the prior-year period as a result of higher costs associated with production from the Intrepid underground zone and increased costs associated with mill maintenance performed in the quarter, partially offset by higher sales volume.
• All-in sustaining costs² per gold eq. ounce decreased over the prior-year period due to lower sustaining capital spend and higher sales volume.
• Total capital decreased over the prior-year period due to lower sustaining capital, partially offset by higher growth capital. Sustaining capital² primarily related to capitalized waste, as well as capital maintenance, and the commencement of the annual tailings dam raise. Growth capital² primarily related to the development of the Intrepid underground zone, which advanced 388 metres during the quarter.
• Free cash flow² for the quarter was $15 million (net of an $8 million stream payment), which is consistent with the prior-year period.

New Afton Mine

Operational Highlights

Operating Key Performance Indicators

• Gold eq.¹ production was 37,261 ounces (16,276 ounces of gold and 10.3 million pounds of copper), an increase over the prior-year period due to higher gold and copper grade and recovery, partially offset by lower tonnes processed.
• Operating expense per gold eq. ounce increased over the prior-year period primarily due to the inclusion of ore purchase costs from existing ore purchase agreements, partially offset by higher sales volume.
• All-in sustaining costs² per gold eq. ounce decreased over the prior-year period due to lower sustaining capital spend and higher sales volume.
• Total capital was in-line with the prior-year period, primarily due to lower sustaining capital spend offset by higher growth capital spend. Sustaining capital² primarily related to tailings management and stabilization activities. Growth capital² primarily related to C-Zone development, which advanced 1,172 metres in the quarter.
• Free cash flow² for the quarter was a net outflow of $19 million, an increase over the prior-year period as the prior-year period included a free cash flow interest payment to Ontario Teacher’s Pension Plan.

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 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.