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

TORONTO, May 2, 2022 /CNW/ - New Gold Inc. ("New Gold" or the "Company") (TSX: NGD) (NYSE: NGD) reports first quarter results for the Company as of March 31, 2022. The Company will host a conference call and webcast today at 8:30 am Eastern Time to discuss the first quarter consolidated results (details are provided at the end of this news release). For detailed information, please refer to the Company's First 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. Numbered note references throughout this news release are to endnotes which can be found at the end of this news release.

Consolidated First Quarter Highlights

Gold equivalent1 ("gold eq.") production of 87,696 ounces (68,101 ounces of gold, 8.2 million pounds of copper and 109,511 ounces of silver)
Operating expenses of $1,029 per gold eq. ounce
All-in sustaining costs2 of $1,778 per gold eq. ounce, including total cash costs2 of $1,069 per gold eq. ounce
Average realized gold price2 of $1,897 per ounce and average realized copper price2 of $4.53 per pound
Cash generated from operations of $68 million, or $0.10 per share
Cash generated from operations, before changes in non-cash operating working capital2 of $66 million, or $0.10 per share
Net loss of $8 million, or ($0.01) per share
Adjusted net earnings2 of $10 million, or $0.02 per share
March 31, 2022 cash and cash equivalents of $432 million
"The first quarter saw New Gold continue to advance our objectives with a focus on delivering on our 2022 plan and securing and extending the Company's longer-term future," stated Renaud Adams, President & CEO. "We delivered solid total gold production at Rainy River, despite an increase in COVID-19 cases and during a quarter in which capitalized waste stripping was prioritized. While we faced the inflationary challenges experienced across the industry, our teams remained disciplined with their objectives and with the benefit of a weaker Canadian dollar, delivered strong operating cash flow in the first quarter. We currently expect to deliver on our 2022 guidance, and our operations continue to review optimization opportunities and assess cost reduction initiatives to mitigate against inflationary pressures. We also continued to advance our longer-term priorities, including advancing the development of the Intrepid underground zone at Rainy River and the B3 ramp-up and C-Zone development at New Afton."

"Additionally, we continue to transform the future of the Company, both operationally and financially. During the first quarter, our team delivered an updated Rainy River Technical Report, extending Rainy River's mine life to 2031, which is another positive milestone for future production, and something we will continue to build on. We added an experienced Chief Operating Officer which will be invaluable to the Company as we continue to advance multiple projects at both sites. We also announced our intention to redeem the remaining $100 million aggregate principal amount of our outstanding 2025 senior notes in mid-May, further improving our financial flexibility during this period of optimization for our Company," added Mr. Adams.

Consolidated Financial Highlights
Q1 2022 Q1 2021
Revenue ($M) 174.7 164.9
Operating expenses ($M) 95.2 93.9
Net (loss) earnings ($M) (7.8) 15.1
Net (loss) earnings, per share ($) (0.01) 0.02
Adj. net earnings ($M)2 10.3 8.1
Adj. net earnings, per share ($)2 0.02 0.01
Operating cash flow ($M) 67.8 53.3

Operating cash flow, per share ($) 0.10 0.08

Cash generated from operations, before changes
in non-cash operating working capital ($M)2 66.4 63.7

Cash generated from operations, before changes in
non-cash operating working capital, per share ($)2 0.10 0.09

Revenues increased over the prior-year period due to higher gold and copper prices and higher gold sales volume, partially offset by lower copper sales volume.
Operating expenses were consistent with the prior-year period.
Net loss for the quarter compared to net earnings in the prior-year period primarily due to an unrealized loss on the revaluation of the gold stream obligation derivative resulting from the updated Technical Report for Rainy River.
Adjusted net earnings2 increased over the prior-year period due to higher revenues, partially offset by higher depreciation and depletion and exploration.
Operating cash flow increased over the prior-year period due to higher revenues and negative working capital movements in the prior-year period.
Consolidated Operational Highlights
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