On-Track to Achieve 2023 Production and Cost Guidance; Rainy River Underground and New Afton C-Zone Continue to Advance

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

TORONTO, July 26, 2023 /CNW/ - New Gold Inc. ("New Gold" or the "Company") (TSX: NGD) (NYSE American: NGD) reports second quarter results for the Company as of June 30, 2023. The Company will host a conference call and webcast tomorrow, July 27, 2023 at 8:30 am Eastern Time to discuss the second quarter consolidated results (details are provided at the end of this news release). For detailed information, please refer to the Company's Management's Discussion and Analysis ("MD&A") and financial statements for the quarter ended June 30, 2023 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. Numbered note references throughout this news release are to endnotes which can be found at the end of this news release.

Consolidated Second Quarter Highlights

Gold equivalent1 ("gold eq.") production for the quarter of 102,374 ounces (76,527 ounces of gold, 12.0 million pounds of copper and 152,208 ounces of silver)
Operating expenses of $1,090 per gold eq. ounce
All-in sustaining costs2 of $1,657 per gold eq. ounce, including total cash costs2 of $1,129 per gold eq. ounce
Average realized gold price2 of $1,970 per ounce and average realized copper price2 of $3.82 per pound
Cash generated from operations of $56 million, or $0.08 per share
Cash generated from operations, before changes in non-cash operating working capital2 of $65 million, or $0.10 per share
Net loss of $3 million, or $0.00 per share
Adjusted net earnings2 of $12 million, or $0.02 per share
Cash and cash equivalents of $174 million as at June 30, 2023
During the quarter, the Company published its 2022 Environmental, Social and Governance Report (refer to the Company's June 19, 2023 news release for further information)
"New Gold carried the momentum from a strong start to the year and delivered another excellent quarter," stated Patrick Godin, President & CEO. "We delivered a 45% increase in gold equivalent production with lower all-in sustaining costs, significantly increasing our margins over the prior-year period, accomplishing our goals safely. I am also proud that during the second quarter, the New Afton Mine received the J.T Ryan Safety Award for British Columbia and Yukon and British Columbia's Safest Large Underground Mine Award. We will continue to build on these positive results as we look to the second half of the year, and we remain well positioned to meet our guidance ranges set out earlier in the year."

"Looking beyond 2023, we continued to make progress advancing our growth initiatives. During the quarter, underground development at Rainy River continued, with development of the ramp access to the underground Main Zone advancing 98 metres. Following detailed internal optimization studies, I am excited to share that access to the underground Main Zone commenced from the Intrepid Zone, providing the mine with a number of efficiencies over the previous plan. C-Zone development at New Afton continued well in the quarter, advancing 1,415 metres. Our development rate increased substantially over the first quarter, and I remain confident in our ability to achieve first production ore during the fourth quarter, with commercial production planned for the second half of 2024," added Mr. Godin.

Consolidated Financial Highlights
Q2 2023 Q2 2022 H1 2023

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