Quarter-Over-Quarter Production Growth Drives Record Free Cash Flow Generation;
On-Track to Achieve Annual Guidance

New Gold Inc. (TSX: NGD) (NYSE: NGD) reported financial and operating results for the quarter and six-months ended June 30, 2025. Second quarter 2025 production was 78,595 ounces of gold and 13.5 million pounds of copper, at an operating expense of $1,070 per gold ounce sold (co-product basis)³ and all-in sustaining costs¹ of $1,393 per gold ounce sold (by-product basis). Quarter-over-quarter production growth resulted in strong cash flow from operations of $163 million and record quarterly free cash flow of $63 million, highlighted by a record $45 million of quarterly free cash flow from Rainy River.

“Across the Company, the second quarter successfully built on the momentum from the first quarter, positioning us to deliver on our annual guidance. The quarter was highlighted by a record production month at Rainy River, resulting in record quarterly free cash flow for both Rainy River and the Company,” stated Patrick Godin, President and CEO.

“At New Afton, the B3 cave continued to over-deliver, with the cave now expected to exhaust in the middle of the third quarter, four months later than initially planned. Mill performance also continues to be a highlight, with a quarter-over-quarter throughput increase. At Rainy River, the second quarter saw a meaningful increase in production compared to the first quarter. June was a record production month, providing an excellent indication of the expected open pit performance for the remainder of the year. Combined with the strong quarterly mill performance, which demonstrated the ability to process higher-grade material at a high throughput rate, Rainy River is on-track for increased production in the second half of the year. Additionally, underground development continues to advance, and the site successfully commissioned the ventilation loop and primary ventilation fans in late June. With the ventilation loop now complete, and the in-pit portal breakthrough completed in early April, underground development is expected to accelerate through the remainder of the year,” added Mr. Godin.

“Exploration efforts at both operations continue to support our organic growth initiatives, with seven diamond drills active at New Afton and three at Rainy River. Exploration drilling at New Afton is at an all-time high on all key metrics, supported by the recently completed exploration drift developed from the C-Zone extraction level, designed to infill and expand K-Zone, as well as the Lift 1 level exploration drift developed last year. At Rainy River, exploration efforts are focused on increasing the underground ore inventory and testing open pit extensions at NW-Trend. The Company looks forward to providing exploration results in September,” concluded Mr. Godin.

Second Quarter Highlighted by Strong Performance from New Afton, Rainy River Posts Record June Production and Remains On-Track for Continued Ramp-up Throughout the Year

• Second quarter consolidated production was 78,595 ounces of gold and 13.5 million pounds of copper at all-in sustaining costs^1,2 of $1,393 per gold ounce sold. Gold production through the first half of 2025 represented approximately 38% of the midpoint of annual consolidated production guidance of 325,000 to 365,000 ounces of gold, in-line with the planned first half of 38%.
• New Afton second quarter production was 16,991 ounces of gold and 13.5 million pounds of copper at all-in sustaining costs^1,2 of ($537) per gold ounce sold. The B3 cave continued to perform better than planned, leading to higher than expected head grades. As a result, production through the first half of 2025 represented approximately 54% and 49% of the midpoint of annual guidance of 60,000 to 70,000 ounces of gold and 50 to 60 million pounds of copper, respectively.
• C-Zone cave construction continues to advance on schedule, facilitating a step up in copper and gold production in the second half of 2025. The operation is advancing well, with undercutting completed in May. Cave construction progress is 64% complete as of the end of June. The flotation cleaner circuit upgrade is on schedule for commissioning in the third quarter. This project is expected to improve copper and gold recoveries as the operation ramps up to full processing capacity of approximately 16,000 tonnes per day beginning in 2026.
• Rainy River second quarter production was 61,604 ounces of gold at all-in sustaining costs^1,2 of $1,696 per gold ounce sold, a substantial production increase and all-in sustaining cost decrease over the first quarter as the mill transitioned from low-grade stockpile material to processing higher grade open pit ore. June gold production totaled 37,341 ounces, a monthly production record, at an average grade of 1.44 g/t gold. With the mill now processing higher grade open pit material, the Company expects gold production to continue to step-up in the third quarter, compared to the second quarter. Gold production through the first half of 2025 represented approximately 34% of the midpoint of annual guidance of 265,000 to 295,000 ounces of gold, slightly behind the planned first half of 37%, driven by a one-week delay in the sequencing of the higher grade open-pit material in May, which led to an increase of approximately 5,900 ounces of gold-in-circuit inventory at quarter end.
• Following the successful breakthrough of the pit portal in early April, the Rainy River underground mine achieved another important milestone with fresh air raise commissioning and completion of the ODM East ventilation loop. Underground development and stope production from several new mining zones can now progress as they come online in late-2025.
• The Company is on track to deliver its 2025 consolidated production guidance of 325,000 to 365,000 ounces of gold and 50 to 60 million pounds of copper at all-in sustaining costs^1,2 of $1,025 to $1,125 per gold ounce sold.

Record Quarterly Free Cash Flow Generation; Substantially Stronger Second Half Expected

• The Company generated cash flow from operations of $163 million and record quarterly free cash flow¹ of $63 million after investing approximately $58 million in advancing growth projects during the quarter. This was highlighted by Rainy River’s record $45 million in quarterly free cash flow¹. The Company exited the second quarter in a strong financial position, with cash and cash equivalents of $226 million.
• During the quarter, the Company entered into an agreement with Ontario Teachers’ Pension Plan to acquire the remaining 19.9% free cash flow interest in the Company’s New Afton Mine. The transaction was funded with $50 million of cash on hand, $150 million from its existing credit facility, and a $100 million gold prepayment financing. Importantly, the transaction came with no equity dilution to New Gold shareholders. The Company has agreed to deliver approximately 2,771 ounces of gold per month over the July 2025 to June 2026 period at an average price of $3,157 per gold ounce.
• Subsequent to quarter end, the Company redeemed the remaining $111 million aggregate principal amount of outstanding 2027 Notes on July 15, 2025. The redemption of the 2027 Notes was funded with cash on hand.

New Afton’s K-Zone-Focused Exploration Program at Historic Peak; Rainy River Ramping-Up Exploration Drilling on Underground and Open Pit Extensions

• New Afton’s exploration program, centered on K-Zone and nearby targets, is currently at an all-time high with one surface drill targeting the K-Zone trend along strike and six underground drills actively targeting the core of the zone and testing its footprint. By the end of the second quarter, approximately 18,000 metres of drilling of the planned 48,000 metres had been completed. Underground drilling is conducted from two exploration drifts separated by more than 400 metres in elevation, including a new drift recently completed at the C-Zone extraction level. The new exploration drift provides better drilling angles and accelerates exploration drilling in the upper part of K-Zone, while the exploration drift developed in 2024 provides a platform to further test potential extensions of K-Zone to the east and at depth. The Company is pursuing its strategic plan to grow and infill K-Zone for the remainder of 2025, with the objective of defining resources.
• Rainy River is pursuing its two-pronged approach of advancing open pit exploration and underground exploration in parallel. By the end of the second quarter, approximately 28,000 metres of drilling of the planned 58,000 metres had been completed. The Company recently completed a reverse circulation (“RC”) drilling program at the NW-Trend open pit zone, focused on infill drilling the inferred part of the resource and testing potential pit extensions. A follow-up program is planned in the third quarter, with the objective of fully converting the NW-Trend Mineral Resource to the indicated category. The Rainy River exploration program further aims at unlocking the full value of the underground mine, with three diamond drills actively targeting extensions of UG Main from surface. This includes drilling Inferred Mineral Resources located near the core of the ODM zone to upgrade its classification, and targeting the extensions of current ore zones down-plunge.
• The Company expects to release exploration results from both the New Afton and Rainy River 2025 exploration programs in September.

Consolidated Financial Highlights

• Revenue in the second quarter increased over the prior-year period due to higher gold prices and higher gold sales volume, partially offset by lower copper prices and lower copper sales volume. For the six months ended June 30, 2025, revenue increased over the prior-year period due to higher gold and copper prices and higher copper sales volume, partially offset by lower gold sales volume.
• Operating expenses were relatively consistent when compared to the prior-year periods.
• Depreciation and depletion expense in the second quarter was relatively consistent when compared to the prior-year period. For the six months ended June 30, 2025 depreciation and depletion decreased when compared to the prior-year period primarily due to lower gold production.
• Share-based payment expenses for the second quarter and six months ended June 30, 2025 were $9.0 million and $13.5 million, respectively, an increase over the prior-year periods due to an increase in the Company’s share price.
• Net earnings and adjusted net earnings¹ increased over the prior-year periods due to an increase in revenue, partially offset by increased share-based payment expenses.
• Cash generated from operations and free cash flow¹ increased over the prior-year periods primarily due to higher revenue.

Consolidated Operational Highlights

New Afton Mine

Operational Highlights

Operating Key Performance Indicators

• Second quarter production was 16,991 ounces of gold (inclusive of ore purchase agreements) and 13.5 million pounds of copper. For the six months ended June 30, 2025, gold production was 35,269 ounces (inclusive of ore purchase agreements) and 27.1 million pounds of copper. The decrease in gold production over the prior-year periods is due to lower grade and recovery as the B3 cave nears exhaustion. Copper production was relatively in-line with the prior-year periods as lower grade is offset by higher tonnes processed.
• Operating expenses per gold ounce sold⁵ and per copper pound sold for the second quarter increased over the prior-year period primarily due to lower gold and copper sales. Operating expenses per gold ounce sold⁵ and per copper pound sold for the six months ended June 30, 2025 decreased over the prior-year period, primarily due to lower underground mining costs and higher sales.
• All-in sustaining costs¹ per gold ounce sold (by-product basis)² for the second quarter decreased over the prior-year period primarily due to lower sustaining capital spend. All-in sustaining costs¹ per gold ounce sold (by-product basis)² for the six months ended June 30, 2025 decreased over the prior-year period, primarily due to higher copper sales volumes, higher by-product revenue, and lower sustaining capital spend.
• Total capital expenditures decreased over the prior-year periods, primarily due to lower sustaining and growth capital spend. Sustaining capital¹ primarily related to mobile equipment. Growth capital¹ primarily related to construction, mine development, tailings, and machinery and equipment.
• Free cash flow¹ for the second quarter and the six months ended June 30, 2025, was $33 million and $85 million, respectively, a significant improvement over the prior-year periods primarily due to higher revenue, and lower capital.

Rainy River Mine

Operational Highlights

Operating Key Performance Indicators

• Second quarter gold production¹ was 61,604 ounces, an increase over the prior-year period due to higher grade and recovery, partially offset by lower tonnes processed. For the six months ended June 30, 2025, gold production was 95,512 ounces, a decrease over the prior-year period due to lower tonnes processed and lower grade.
• Operating expenses per gold ounce sold for the second quarter decreased over the prior-year period due to higher sales volumes, partially offset by higher underground and camp costs as underground mining continues to ramp up. For the six months ended June 30, 2025, operating expenses per gold ounce sold increased over the prior-year period due to lower sales volumes and an increase in operating expenses.
• All-in sustaining costs¹ per gold ounce sold (by-product basis)² for the second quarter decreased over the prior-year period primarily due to higher sales volumes, partially offset by higher sustaining capital spend and operating costs. All-in sustaining costs¹ per gold ounce sold (by-product basis)² for the six months ended June 30, 2025 increased over the prior-year period primarily due to higher operating costs, lower sales volumes and higher sustaining capital from capitalized waste stripping.
• Total capital expenditures increased over the prior-year periods due to higher sustaining and growth capital spend. Sustaining capital¹ primarily related to open pit stripping and Tailings Facility expansion. Growth capital¹ primarily related to growth mine development and machinery and equipment.
• Free cash flow¹ for the second quarter and six months ended June 30, 2025 was $45 million and $32 million (net of $7 million and $13 million stream payments), respectively, an increase over the prior-year periods primarily due to higher revenue.

About New Gold

New Gold is a Canadian-focused intermediate mining Company with a portfolio of two core producing assets in Canada, the New Afton copper-gold mine and the Rainy River gold mine. New Gold’s vision is to be the most valued intermediate gold and copper producer through profitable and responsible mining for our shareholders and stakeholders.

Endnotes