On-Track to Achieve Updated Consolidated Production and Cost Guidance

(All amounts are in U.S. dollars unless otherwise indicated)

TORONTO, Nov. 12, 2021 /PRNewswire/ - New Gold Inc. ("New Gold" or the "Company") (TSX: NGD) (NYSE American: NGD) reports third quarter results for the Company as of September 30, 2021. The Company will host a conference call and webcast today at 8:30 am Eastern Time to discuss the third quarter consolidated results (details are provided at the end of this news release). For detailed information, please refer to the Company's Third Quarter Management's Discussion and Analysis (MD&A) and Financial Statements 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.

"The Company responded well to the challenges experienced in the third quarter, positioning us to meet our updated guidance," stated Renaud Adams, President & CEO. "On a consolidated basis, all-in sustaining costs were down over 9% compared to the first half, with Rainy River's all-in sustaining costs improving by almost 16%. We continue to expect an improvement in fourth quarter production from Rainy River with lower contribution from the East Lobe."

"As we look beyond 2021, we continue to advance the B3 ramp up and C-Zone development at New Afton and the development of the decline towards the Intrepid underground ore zone at Rainy River. We also continue to work on an optimized underground mine plan study at Rainy River, the results of which are expected to be released in the first quarter of 2022 along with our annual 2022 consolidated guidance and year-end Mineral Reserve and Mineral Resource update," added Mr. Adams.

Consolidated Third Quarter Highlights

Total production for the quarter was 105,628 gold equivalent1 ("gold eq.") ounces (72,210 ounces of gold, 226,679 ounces of silver and 15.6 million pounds of copper). For the nine-month period ended September 30, 2021, production was 307,359 gold eq.1 ounces (205,849 ounces of gold, 653,932 ounces of silver and 47.5 million pounds of copper).
The Company is currently on track to meet the updated annual consolidated gold equivalent1 production guidance range (405,000 to 450,000 ounces) and consolidated all-in sustaining costs2 range ($1,415 to $1,495 per gold eq. ounce) (refer to the Company's September 13, 2021 news release for further information).
Revenues for the quarter were $180 million.
Operating expense for the quarter was $915 per gold eq. ounce.
Total cash costs2 for the quarter were $966 per gold eq. ounce.
All-in sustaining costs2 for the quarter were $1,408 per gold eq. ounce.
Average realized gold price2 of $1,788 per ounce and average realized copper price2 of $4.28 per pound.
Net loss for the quarter was $11 million ($0.02 per share).
Adjusted net earnings2 for the quarter were $23 million ($0.03 per share).
Cash generated from operations for the quarter was $54 million ($0.08 per share). Cash generated from operations for the quarter, before changes in non-cash operating working capital2, was $81 million ($0.12 per share).
At the end of the quarter, the Company had a cash position of $151 million and a strong liquidity position of $477 million.
Consolidated Financial Highlights

Q3 2021 Q3 2020 9M 2021 9M 2020
Revenue ($M) 179.8 173.7 542.9 444.5
Operating expenses ($M) 88.6 86.7 277.7 242.6
Net (loss) earnings, per share ($) (0.02) 0.02 (0.02) (0.09)
Adj. net earnings (loss), per share ($)2 0.03 0.02 0.09 (0.01)
Operating cash flow, per share ($) 0.08 0.14 0.32 0.29
Adj. operating cash flow, per share ($)2 0.12 0.12 0.34 0.27

Revenues for the quarter were $180 million and $543 million for the nine-month period ended September 30, 2021, an increase compared to the prior-year periods due to higher gold and copper prices, partially offset by lower sales volume.
Operating expenses for the quarter and nine-month period ended September 30, 2021, were higher than the prior-year periods due to the strengthening of the Canadian dollar relative to the U.S. dollar and the prior-year period benefitting from the wage subsidy.
Net loss for the quarter ended September 30, 2021, was $11 million ($0.02 per share) compared to net earnings for the prior-year period of $16 million ($0.02 per share). The change was primarily due to an unrealized loss on the revaluation of investments, partially offset by lower finance costs. Net loss for the nine-month period ended September 30, 2021, was $10 million ($0.02 per share), a decrease compared to the prior-year period primarily due to higher revenue and lower finance costs, partially offset by an increase in operating expenses and an unrealized loss on the revaluation of investments. Additionally, the prior-year period included a loss on the sale of the Blackwater Project.
Adjusted net earnings2 for the quarter were $23 million ($0.03 per share) and $58 million ($0.09 per share) for the nine-month period ended September 30, 2021, an increase compared to the prior-year periods primarily due to higher revenue and lower finance costs.
Consolidated Operational Highlights

Q3 2021 Q3 2020 9M 2021 9M 2020
Gold eq. production (ounces)1 105,628 115,536 307,359 317,050
Gold eq. sold (ounces)1 97,196 110,905 293,235 306,231
Gold production (ounces) 72,210 78,959 205,849 210,043
Gold sold (ounces) 66,982 75,760 198,705 205,385
Copper production (Mlbs) 15.6 18.2 47.5 53.6
Copper sold (Mlbs) 14.0 17.5 44.2 50.5
Average realized gold price, per ounce2 1,788 1,613 1,798 1,532
Average realized copper price, per pound2 4.28 2.99 4.20 2.69
Operating expenses, per gold eq. ounce 915 778 947 791

Total cash costs, per gold eq. ounce2. 966 822 1,001 839

Depreciation and depletion, per gold eq. ounce 497 452 496 469

All-in sustaining costs, per gold eq. ounce2 1,408 1,313 1,503 1,349
Sustaining capital and sustaining leases ($M)2. 34.9 46.1 122.4 136.3
Growth capital ($M)2. 23.1 16.4 74.8 46.6

Rainy River
Operational Highlights Rainy River Mine
Q3 2021 Q3 2020 9M 2021 9M 2020

Gold eq. production (ounces)1 60,785 64,221 172,462 164,960
Gold eq. sold (ounces)1 57,800 61,726 168,682 163,137
Gold production (ounces) 58,557 63,004 166,113 162,185
Gold sold (ounces) 55,597 60,592 162,454 160,438
Average realized gold price, per ounce2 1,788 1,615 1,797 1,533
Operating expenses, per gold eq. ounce 960 833 979 924

Total cash costs, per gold eq. ounce2 960 833 979 924

Depreciation and depletion, per gold eq. ounce 635 602 647 634
All-in sustaining costs, per gold eq. ounce2 1,307 1,469 1,470 1,592
Sustaining capital and sustaining leases ($M)2 17.6 37.4 76.9 103.9

Growth capital ($M)2 4.3 0.1 9.3 0.3

Operating Key Performance Indicators

Rainy River Mine (Open Pit Mine only)
Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021
Tonnes mined per day (ore and waste) 145,701 158,638 150,767 158,556 149,630
Ore tonnes mined per day 36,515 42,918 35,681 36,256 52,917
Operating waste tonnes per day 62,818 73,921 65,643 71,124 88,216
Capitalized waste tonnes per day 46,368 41,799 49,442 51,176 8,497
Total waste tonnes per day 109,186 115,720 115,085 122,300 96,713

Strip ratio (waste:ore) 2.99 2.70 3.23 3.37 1.83
Tonnes milled per calendar day 26,998 26,999 26,301 25,349 25,245

Gold grade milled (g/t) 0.88 0.93 0.80 0.82 0.89
Gold recovery (%) 89 90 89 87 89
Mill availability (%) 90 94 89 88 91
Gold production (ounces) 63,004 66,734 54,656 52,901 58,557
Gold eq. production (ounces)1 64,221 68,241 56,513 55,163 60,785

Third quarter gold eq.1 production was 60,785 ounces (58,557 ounces of gold and 160,461 ounces of silver), a decrease compared to the prior-year period due to lower tonnes milled. For the nine-month period ended September 30, 2021, gold eq.1 production was 172,462 ounces (166,113 ounces of gold and 457,069 ounces of silver), an increase over the prior-year period due to higher tonnes processed, with the prior-year period including a two-week voluntary shutdown due to COVID-19.
Operating expense and total cash costs2 were $960 per gold eq. ounce for the quarter, an increase over the prior-year period due to lower sales volumes, the strengthening of the Canadian dollar relative to the U.S. dollar, and the prior-year period benefitting from the wage subsidy. The strengthening of the Canadian dollar and the loss of the wage subsidy increased costs by approximately $90 per gold eq. ounce in the quarter. For the nine-month period ended September 30, 2021, operating expense and total cash costs2 were $979 per gold eq. ounce, an increase over the prior-year period due to the strengthening of the Canadian dollar relative to the U.S. dollar, and the receipt of the wage subsidy in the prior-year period.
Sustaining capital and sustaining lease2 payments for the quarter were $18 million, including $2 million of capitalized mining costs. Sustaining capital spend during the quarter primarily included the advancement of the annual tailings dam raise. For the nine-month period ended September 30, 2021, sustaining capital and sustaining lease2 payments were $77 million, including $29 million of capitalized mining costs.
All-in sustaining costs2 were $1,307 per gold eq. ounce for the quarter, a decrease over the prior-year period primarily due to lower sustaining capital spend, partially offset by lower sales volumes and higher total cash costs. For the nine-month period ended September 30, 2021, all-in sustaining costs2 were $1,470 per gold eq. ounce, a decrease over the prior-year period primarily due to higher sales volumes and lower sustaining capital spend.
Growth capital2 for the quarter was $4 million and $9 million for the nine-month period ended September 30, 2021, related to the development of the Intrepid underground ore zone. During the quarter, development of the decline towards the Intrepid underground ore zone advanced 215 metres.
The open pit mine achieved 149,630 tonnes per day during the quarter, in-line with the 2021 overall target of ~151,000 tonnes per day. Approximately 4.9 million ore tonnes and 8.9 million waste tonnes (including 0.8 million capitalized waste tonnes) were mined from the open pit at an average reduced strip ratio of 1.83:1. As planned, the strip ratio is expected to remain approximately 2:1 for the remainder of the year to achieve the original 2021 guidance of approximately 2.7:1.
The mill processed 25,245 tonnes per day for the quarter, a decrease compared to the prior-year period due to maintenance activities performed on the gyratory crusher impacting mill throughput. The mill processed an average grade of 0.89 grams per tonne at a gold recovery of 89%. Mill availability for the quarter averaged 91%.
There are currently no active cases of COVID-19 at the Rainy River Mine. Rainy River has implemented measures to mitigate and limit the spread of COVID-19 to protect the well-being of its employees, contractors, their families, local communities, and other stakeholders. For more information see: http://newgold.com/covid-19/.
New Afton Mine

Operational Highlights New Afton Mine
Q3 2021 Q3 2020 9M 2021 9M 2020
Gold eq. production (ounces)1 44,843 51,315 134,898 152,090
Gold eq. sold (ounces)1 39,395 49,179 124,553 143,094
Gold production (ounces) 13,653 15,955 39,735 47,858
Gold sold (ounces) 11,385 15,168 36,251 44,948
Copper production (Mlbs) 15.6 18.2 47.5 53.6
Copper sold (Mlbs) 14.0 17.5 44.2 50.5

Average realized gold price, per ounce2 1,789 1,606 1,803 1,529
Average realized copper price, per pound2 4.28 2.99 4.20 2.69
Operating expenses, per gold eq. ounce 849 708 904 640
Total cash costs, per gold eq. ounce2 974 807 1,030 742

Depreciation and depletion, per gold eq. ounce 288 255 285 272
All-in sustaining costs, per gold eq. ounce2 1,423 988 1,403 971
Sustaining capital and sustaining leases ($M)2 17.4 8.7 45.1 32.0

Growth capital ($M)2 18.8 16.1 65.5 37.2

Operating Key Performance Indicators
New Afton Mine
Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021
Tonnes mined per day (ore and waste) 17,249 17,259 11,395 15,104 12,861
Tonnes milled per calendar day 15,483 15,358 13,564 13,795 13,068
Gold grade milled (g/t) 0.44 0.46 0.39 0.43 0.43
Gold recovery (%) 80 79 79 80 83
Gold production (ounces) 15,955 16,362 11,994 14,088 13,653
Copper grade milled (%) 0.71 0.73 0.64 0.79 0.72
Copper recovery (%) 82 81 80 83 82
Copper production (Mlbs) 18.2 18.5 13.8 18.2 15.6

Mill availability (%) 98 99 96 98 98
Gold eq. production (ounces)1 51,315 52,326 39,512 50,542 44,843

Third quarter gold eq.1 production was 44,843 ounces (13,653 ounces of gold, and 15.6 million pounds of copper), a decrease compared to the prior-year period primarily due to lower tonnes milled. For the nine-month period ended September 30, 2021, gold eq.1 production was 134,898 ounces (39,735 ounces of gold and 47.5 million pounds of copper), a decrease over the prior-year period primarily due to lower tonnes processed.
Operating expense and total cash costs2 were $849 and $974 per gold eq. ounce for the quarter, an increase over the prior-year period due to lower sales volumes, the strengthening of the Canadian dollar relative to the U.S. dollar, and the prior-year period benefitting from the wage subsidy. The strengthening of the Canadian dollar and the loss of the wage subsidy increased costs by approximately $70 per gold eq. ounce in the quarter. For the nine-month period ended September 30, 2021, operating expense and total cash costs2 were $904 and $1,030 per gold eq. ounce, an increase over the prior-year period due to lower sales volumes, the strengthening of the Canadian dollar relative to the U.S. dollar, and the receipt of the wage subsidy in the prior-year period.
Sustaining capital and sustaining lease2 payments for the quarter were $17 million, primarily related to B3 mine development and the advancement of the planned tailings dam raise. For the nine-month period ended September 30, 2021, sustaining capital and sustaining lease2 payments were $45 million.
All-in sustaining costs2 were $1,423 per gold eq. ounce for the quarter and $1,403 per gold eq. ounce for the nine-month period ended September 30, 2021. The increases over the prior-year periods were due to lower sales volumes, higher total cash costs and higher sustaining capital spend.
Growth capital2 was $19 million for the quarter, and $66 million for the nine-month period ended September 30, 2021, primarily related to C-Zone development and the thickened and amended tailings project.
C-Zone development advanced by approximately 790 metres in the quarter and continues to advance on plan.
The underground mine averaged 12,861 tonnes per day during the quarter as the mine focused on recovery level activities and the progressive ramp-up of the B3 zone. The mining rate is expected to increase as more drawpoints become available and as the B3 zone continues to ramp-up.
The mill averaged 13,068 tonnes per day, below the prior-year period, but in-line with mining rates and the plan to optimize metal recoveries while processing higher grade supergene ore. The mill processed gold grades of 0.43 grams per tonne and copper grades of 0.72%, with gold and copper recoveries of 83% and 82%, respectively.
There is currently one active case of COVID-19 at the New Afton Mine. New Afton has implemented measures to mitigate and limit the spread of COVID-19 to protect the well-being of its employees, contractors, their families, local communities, and other stakeholders. For more information see: http://newgold.com/covid-19/.
Sustainability and ESG

New Gold has four sustainability focus areas: Indigenous Peoples, Tailings Management, Water and Climate. New Gold has adapted its sustainability efforts to align with the most pressing ESG issues facing the Company and the mining industry. As such, our ESG approach continues to prioritize the health, safety, and well-being of our people and the people in the communities in which we operate. The protection of our people is central to our success as we believe people are our greatest asset. New Gold is committed to providing training, opportunities, and progression paths for our teams, and we actively seek to ensure that we promote diversity within our teams at all levels of the organization. We have adopted an approach to execute on our sustainability strategy that aligns with ESG reporting standards.

Third Quarter 2021 Conference Call and Webcast

The Company will host a webcast and conference call today at 8:30 am Eastern Time to discuss the Company's third quarter consolidated results.

Participants may listen to the webcast by registering on our website at www.newgold.com or via the following link https://produceredition.webcasts.com/starthere.jsp?ei=1503407&tp_key=ffe45e2c74
Participants may also listen to the conference call by calling North American toll free 1-888-664-6383, or 1-416-764-8650 outside of the U.S. and Canada, passcode 50065410.
A recorded playback of the conference call will be available until December 12, 2021 by calling North American toll free 1-888-390-0541, or 1-416-764-8677 outside of the U.S. and Canada, passcode 065410. An archived webcast will also be available at www.newgold.com.