TORONTO, Oct. 19, 2017 /CNW/ - New Gold Inc. ("New Gold") (TSX:NGD) (NYSE American:NGD) is pleased to report that its Rainy River Mine has achieved commercial production, approximately two weeks ahead of schedule.

"Achieving commercial production is a major milestone for New Gold and the Rainy River team," stated Hannes Portmann, President and Chief Executive Officer. "With the hard work, dedication and commitment of our workforce, and the strong support of our local communities and Indigenous partners, we are now focused on continuing to successfully ramp up the operation through the balance of the year."

As previously announced, the Rainy River Mine began processing ore as scheduled on September 14, 2017, and announced its first gold pour on October 6, 2017. In the first 30 days of operation, Rainy River has successfully processed approximately 457,000 tonnes of ore. Inclusive of four days of intentional downtime as part of the commissioning plan, the processing rate averaged 15,200 tonnes per day, or 72% of the 21,000 tonnes per day nameplate capacity. New Gold defines commercial production as exceeding 60% of nameplate capacity over a 30-day period. Importantly, for the period October 1-18, 2017, the processing rate averaged 19,000 tonnes per day, or 90% of nameplate capacity. To date, both grade and recoveries have also been consistent with New Gold's commissioning plan.

About New Gold Inc.

New Gold is an intermediate gold mining company with a portfolio of five producing assets in top-rated jurisdictions. The New Afton and Rainy River Mines in Canada, the Mesquite Mine in the United States, the Peak Mines in Australia and the Cerro San Pedro Mine in Mexico (which transitioned to residual leaching in 2016), provide the company with its current production base. In addition, New Gold owns 100% of the Blackwater project located in Canada. New Gold's objective is to be the leading intermediate gold producer, focused on the environment and social responsibility. For further information on the company, please visit www.newgold.com

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