Notes to Mineral Reserve and Resource Estimates

New Gold reports its Measured and Indicated Mineral Resources inclusive of its Mineral Reserves. Measured and Indicated Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Inferred Mineral Resources have a greater amount of uncertainty as to their existence and economic and legal feasibility, do not have demonstrated economic viability, and are exclusive of Mineral Reserves. Mineral Reserves have been estimated in accordance with the CIM Definition Standards for Mineral Reserves and Mineral Resources adopted by CIM Council on November 27, 2010 and National Instrument 43-101.

1) Mineral Reserves for the Company's mineral properties have been estimated based on the following metal prices and lower cut-off criteria:

Gold $/ounce Silver $/ounce Copper $/pound Lower cut-off
New Afton $1,300 $22.00 $3.00 $21.00/t NSR
Mesquite $1,300 0.21 g/t Au – Oxide and transition reserves
0.41 g/t Au – Non-oxide reserves
Peak Mines $1,300 $22.00 $3.00 A $88–134/t NSR
Cerro San Pedro $1,300 $22.00 $3.00/t NSR
Rainy River $800 $25.00 0.30–0.70 g/t AuEq – Open pit
$1,300 $22.00 3.50 g/t AuEq – Underground
Blackwater $1,300 $22.00 0.26–0.38 g/t AuEq – Direct processing
0.32 g/t AuEq – Stockpile
El Morro $1,300 $3.00 0.20% Cu

2) Mineral Resources for the Company's mineral properties have been estimated based on the following metal prices and lower cut-off criteria:

Gold $/ounce Silver $/ounce Copper $/pound Lower cut-off
New Afton $1,400 $24.00 $3.25 0.40% CuEq
Mesquite $1,400 0.11 g/t Au – Oxide and transition resources
0.22 g/t Au – Non-oxide resources
Peak Mines $1,400 $24.00 $3.25 A $92–125/t NSR
Cerro San Pedro $1,400 $24.00 0.10 g/t AuEq – Open pit oxide resources
0.30 g/t AuEq – Open pit sulphide resources
Rainy River $1,400 $24.00 0.30–0.45 g/t  Au – Open pit
2.50 g/t Au – Underground
Blackwater $1,400 $24.00 0.40 g/t AuEq – Direct processing
0.30–0.40 g/t AuEq – Stockpile
Capoose $1,400 0.40 g/t AuEq
El Morro $1,300 $3.00 0.20% Cu
  1. All Mineral Resource and Reserve Estimates for New Gold’s operating properties and the El Morro project are effective December 31, 2013.
The Mineral Resource estimate for the Rainy River project is effective November 2, 2013 and the Mineral Reserve estimate is effective
 December 31, 2013. The Mineral Resource estimate for the Blackwater project is effective March 31, 2013 and the Mineral Reserve
 estimate is effective December 2, 2013.
  2. Mineral Resources are classified as Measured, Indicated and Inferred Resources and are reported based on technical and economic parameters consistent with the methods most suitable for their potential commercial exploitation. Where different mining and/or processing methods might be applied to different portions of a Mineral Resource, the designators "open pit" and "underground" have been applied to indicate the envisioned mining method. Likewise the designators "oxide", "non-oxide" and "sulphide" have been applied to indicate the type of mineralization as it relates to the appropriate mineral processing method and expected payable metal recoveries. Mineral Reserves and Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing and other risks and relevant issues. Additional details regarding Mineral Reserve and Mineral Resource estimation, classification, reporting parameters, key assumptions and associated risks for each of New Gold's mineral properties are provided in the respective NI 43-101 Technical Reports which are available at www.sedar.com.