Strong Results Generate Positive Free Cash Flow, Consolidated 2023 Production Tracking to the Top End of Guidance with All-In Sustaining Cost Tracking to the Low End of Guidance

New Gold Inc. (TSX: NGD) (NYSE American: NGD) reports third quarter results for the Company as of September 30, 2023. Production totaled 111,204 gold equivalent¹ ounces at all-in sustaining costs² of $1,477 per gold eq. 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 flow² 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.

Strong Operational Performance Positions New Gold to Achieve Top End of 2023 Production Guidance and Low End of Cost Guidance

• Third quarter consolidated gold eq.¹ 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% increase over the prior-year period
• All-in sustaining costs² of $1,477 per gold eq. ounce, including total cash costs² of $1,044 per gold eq. 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 eq.¹ production and all-in sustaining costs² 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 September 30, 2023, an increase of $5 million from the second quarter driven by free cash flow² generated at both Rainy River and New Afton
• Cash generated from operations of $100 million, or $0.15 per share, in the third quarter and cash generated from operations, before changes in non-cash operating working capital², of $88 million, or $0.13 per share
• Free cash flow² 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 $0.00 per share and adjusted net earnings² of $23 million, or $0.03 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 October 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 October 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 & CEO. “We delivered a 22% 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 reemphasize 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.

2023 Operational Outlook Update

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 eq.¹ production and all-in sustaining costs are tracking to the lower end of the guidance range.

Rainy River is tracking towards the top end of the gold eq.¹ 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 eq. ounce are now 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 eq.¹ production are tracking towards the top end of their respective production guidance ranges, with operating expenses per gold eq. ounce and all-in sustaining costs now tracking towards the low end of their respective cost guidance ranges. Sustaining and growth capital are both expected to be within their respective guidance ranges.

Consolidated Financial Highlights

• Revenue increased over the prior-year periods due to higher gold prices and higher gold and copper sales volumes.
• Operating expenses increased over the prior-year periods primarily due to higher production and sales at both sites.
• Net loss decreased over the prior-year periods primarily due to an increase in revenues resulting from higher gold prices and higher gold and copper sales, partially offset by higher operating costs and higher unrealized losses 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 periods due to higher revenues and lower finance costs, partially offset by higher operating expenses, and depreciation and depletion.
• Cash generated from operations increased over the prior-year periods primarily due to higher revenue.

Consolidated Operational Highlights

Rainy River Mine
Operational Highlights

Operating Key Performance Indicators

• Third quarter gold eq.¹ production was 66,374 ounces (64,970 ounces of gold and 111,694 ounces of silver). For the nine months ended September 30, 2023, gold eq.¹ production was 195,389 ounces (191,053 ounces of gold and 344,880 ounces of silver). The increase over the prior-year periods is primarily due to higher gold grade.
• Operating expense per gold eq. ounce increased over the prior-year periods due to lower capitalized tonnes, increased costs associated with mill maintenance, partially offset by higher sales volume.
• All-in sustaining costs² per gold eq. ounce increased over the prior-year period due to higher sustaining capital spend and operating expenses partially offset by higher sales volume. For the nine months ended September 30, 2023, all-in sustaining costs per gold eq. ounce decreased over the prior-year period due to lower sustaining capital spend and higher sales volume.
• Total capital increased over the prior-year period due to higher sustaining capital, partially offset by lower growth capital. For the nine months ended September 30, 2023, total capital decreased over the prior-year period due to lower sustaining capital. Sustaining capital² related primarily to the tailings dam raise, capitalized waste and capital maintenance. Growth capital² related to the development of the Intrepid underground and underground Main Zones, which advanced 565 metres during the quarter.
• Free cash flow² for the quarter and nine months ended September 30, 2023, was $15 million and $31 million (net of $7 million and $21 million stream payments, respectively), an improvement over the prior-year periods primarily due to an increase in revenues.

New Afton Mine
Operational Highlights

Operating Key Performance Indicators

• Third quarter gold eq.¹ production was 44,830 ounces (18,016 ounces of gold and 13.2 million pounds of copper). For the nine months ended September 30, 2023, gold eq.¹ production was 123,046 ounces (50,937 ounces of gold and 35.5 million pounds of copper). The increase over the prior-year periods is due to higher grades and recovery.
• Operating expense per gold eq. ounce decreased over the prior-year periods primarily due to higher sales volume.
• All-in sustaining costs² per gold eq. ounce decreased over the prior-year periods due to lower sustaining capital spend and higher sales volume.
• Total capital increased over the prior-year periods, primarily due to higher growth capital spend partially offset by lower sustaining capital spend. Sustaining capital² primarily related to tailings management and stabilization activities. Growth capital² primarily related to C-Zone development.
• Free cash flow² for the quarter and nine months ended September 30, 2023, was a net inflow of $5 million and a net outflow of $33 million, respectively, an improvement over the prior-year periods primarily due to higher revenue partially offset by an increase in growth capital.
• During the quarter, C-Zone advanced 1,193 metres. The first draw bell at C-Zone was completed in the quarter, and the Company completed the commissioning of the final two of 29 dewatering wells at the NATSF. C-Zone has now transitioned to the production ramp-up phase and remains on-track to achieve commercial production in the second half of 2024.
• During the quarter, the Company continued to advance three of the most promising resource zones for potential conversion to Mineral Reserves and advance exploration initiatives in South-Central British Columbia, with a plan to strategically leverage New Afton’s mill and tailings facilities to further extend the mine life. The Company completed 2,392 metres of diamond drilling in eight drill holes from underground. Of these, 1,121 metres were completed in three holes to explore for potential mineralization on the K-Zone target area, and the remaining 1,271 metres were completed in five drill holes to assess the true width and continuity of mineralization defined on the D-Zone target area. Drilling was also conducted from surface, where 1,433 metres in three drill holes targeted geophysical anomalies within the Mine Lease.

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.