(All dollar figures are in US dollars unless otherwise indicated)
TORONTO, March 10, 2017 /CNW/ - New Gold Inc. ("New Gold") (TSX:NGD) (NYSE MKT:NGD) is pleased to announce that it has closed its previously announced bought deal financing of 61,640,000 common shares, including the exercise in full by the underwriters of the over-allotment option, at a price of US$2.80 per share (the "Offering") for aggregate gross proceeds to New Gold of approximately US$173 million.

New Gold intends to use the net proceeds from the Offering to finance the completion of the construction of the Rainy River gold project in Ontario, Canada.

The Offering was made through a syndicate of underwriters led by RBC Capital Markets and Scotiabank and including CIBC Capital Markets, J.P. Morgan, TD Securities Inc., BMO Capital Markets, Merrill Lynch Canada Inc., Desjardins Securities Inc., National Bank Financial Inc., Paradigm Capital Inc., Credit Suisse Securities (Canada) Inc., Eight Capital and GMP Securities L.P.

The Offering was completed by way of a short form prospectus (the "Prospectus") in all of the provinces and territories of Canada and was registered in the United States pursuant to a registration statement on Form F10, as amended (the "Registration Statement"), in accordance with the Multijurisdictional Disclosure System established between Canada and the United States.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of New Gold's common shares pursuant to the Offering in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification of the offered shares under the securities laws of that jurisdiction.

Before you invest in New Gold, you should read the Prospectus or the Registration Statement, as well as the other documents that New Gold has filed with the securities regulatory authorities, for more complete information about New Gold and the Offering. You may obtain these documents at no charge by visiting EDGAR on the SEC website, at www.sec.gov, or on the SEDAR website, at www.sedar.com. Alternatively, New Gold, any underwriter or any dealer participating in the Offering will arrange to send you a written Prospectus, or you may request the Prospectus in Canada by contacting RBC Capital Markets, Distribution Centre, RBC Wellington Square, 8th Floor, 180 Wellington St. W., Toronto, Ontario, M5J 0C2 (Tel: 416-842-5349; E-mail: Distribution.RBCDS@rbccm.com) or Scotiabank, Scotia Plaza, 66th Floor, 40 King Street West, Toronto, Ontario, M5W 2X6, Attention: Equity Capital Markets (Tel: 416-862-5837), and, in the United States, by contacting RBC Capital Markets, LLC, 200 Vesey Street, 8th Floor, New York, NY 10281-8098; Attention: Equity Syndicate; (Tel: 1-877-822-4089; E-mail: Equityprospectus@rbccm.com) or Scotia Capital (USA) Inc., 250 Vesey Street, 24th Floor, New York, New York, 10281, Attention: Equity Capital Markets (Tel: 212-225-6853).