(All dollar figures are in US dollars unless otherwise indicated).
TORONTO, Oct. 27, 2016 /CNW/ - New Gold Inc. ("New Gold") (TSX:NGD) (NYSE MKT:NGD) today announces its 2016 third quarter results and provides an update on the construction of the company's Rainy River project.

2016 THIRD QUARTER HIGHLIGHTS

Gold production of 95,546 ounces and copper production of 25.5 million pounds
All-in sustaining costs(1) decreased to $682 per ounce, including total cash costs(2) of $350 per ounce
Cash generated from operations before changes in non-cash operating working capital(3) of $89 million, a 53% increase compared to 2015
Cash generated from operations of $90 million, a 76% increase from 2015
Highest quarterly cash flow since the fourth quarter of 2013
Adjusted net earnings(4) of $13 million, or $0.03 per share, relative to an adjusted net loss of $9 million, or $0.02 per share, in 2015
Net earnings of $5 million, or $0.01 per share, compared to a net loss of $158 million, or $0.31 per share, in 2015
Rainy River construction currently approximately 60% complete
September 30, 2016 cash and equivalents of $151 million


"Our operations continue to deliver very strong results," stated Randall Oliphant, Executive Chairman. "With the increase in the gold price and our quarterly all-in sustaining costs of $682 per ounce, New Gold was able to sell each ounce of gold for almost twice what it cost us to produce it. We are on track to meet our full-year gold production guidance and pleased to be in a position to generate such robust margins. In addition, our Rainy River project is now 60% complete and progressing well."

CONSOLIDATED YEAR-TO-DATE OPERATIONAL RESULTS AND 2016 GUIDANCE

Through the first nine months of 2016, New Gold produced 285,780 ounces of gold, leaving the company well positioned to meet its full-year production guidance of 360,000 to 400,000 ounces. At the same time, the company's consolidated copper production of 76.6 million pounds through September 30, 2016 is ahead of plan. New Gold now expects to exceed the high end of its full-year copper production guidance of 81.0 to 93.0 million pounds by approximately 5.0 million pounds. Consolidated full-year silver production is expected to be below the guidance range of 1.6 to 1.8 million ounces.

For the nine-month period ended September 30, 2016, New Gold's all-in sustaining costs of $718 per ounce and total cash costs of $346 per ounce were both well below the prior year. The $177 per ounce decrease in all-in sustaining costs relative to the first nine months of 2015 was attributable to the combination of a $118 per ounce decrease in total cash costs, primarily driven by lower costs at the Peak Mines, and a $59 per ounce, or $22 million, decrease in the company's consolidated sustaining costs(1). Sustaining costs include New Gold's cumulative sustaining capital, exploration, general and administrative, and amortization of reclamation expenditures.

As part of New Gold's second quarter results announcement, the company reduced its 2016 full-year guidance for total cash costs and all-in sustaining costs by $75 per ounce. Based on New Gold's year-to-date operating results, and assuming current commodity prices and foreign exchange rates, the company expects its 2016 full-year total cash costs and all-in sustaining costs to be near the mid point of the updated ranges of $360 to $400 per ounce and $750 to $790 per ounce, respectively.

"We are very proud of our 2016 operational performance," stated David Schummer, Executive Vice President and Chief Operating Officer. "Our team's focus on executing on business improvement opportunities has driven strong results, particularly at New Afton and the Peak Mines."

016 THIRD QUARTER CONSOLIDATED OPERATIONAL RESULTS

New Gold's third quarter gold production was 95,546 ounces compared to 122,580 ounces in the prior-year quarter. New Afton's production remained in line, while a decrease in production at Mesquite was largely offset by higher production at the Peak Mines. As expected, Cerro San Pedro's production decreased as the mine has now transitioned into residual leaching. Quarterly copper production increased by 4% to 25.5 million pounds when compared to the third quarter of 2015. Silver production of 0.3 million ounces was below 2015.

Consolidated third quarter all-in sustaining costs of $682 per ounce decreased by $106 per ounce relative to the prior-year quarter. The decrease in all-in sustaining costs relative to the third quarter of 2015 was attributable to a $145 per ounce decrease in total cash costs to $350 per ounce, which was partially offset by a $39 per ounce increase in the company's consolidated sustaining costs. The decrease in total cash costs was driven by the combined benefit of the significantly improved operating performance at the Peak Mines and the low-cost New Afton Mine's increased gold production weighting within New Gold's portfolio of operating mines. The company's gross sustaining costs decreased by $2 million relative to the prior-year quarter, however, were attributable against fewer produced gold ounces, resulting in the $39 per ounce increase noted above.

New Afton

Quarterly gold production of 23,864 ounces at New Afton remained in line with the third quarter of 2015. As a result of continued mill throughput optimization work, an 11% increase in mill throughput helped offset a planned decrease in gold grade. New Afton's average mill throughput during the third quarter was over 15,900 tonnes per day.

New Afton's third quarter copper production of 21.3 million pounds remained consistent with 2015 as the increase in mill throughput was offset by a planned decrease in copper grade, while copper recovery remained consistent.

The $191 per ounce decrease in New Afton's all-in sustaining costs to ($211) per ounce was attributable to a $100 per ounce decrease in total cash costs coupled with a $91 per ounce decrease in the mine's sustaining costs. New Afton's third quarter total cash costs of ($633) per ounce benefitted from a $2 million, or $299 per ounce, increase in by-product revenues relative to the prior-year quarter as the benefit of higher copper sales volumes more than offset the decrease in the realized price. This cost benefit was only partially offset by the increased costs associated with mining and processing more ore relative to the prior-year quarter. New Afton's quarterly sustaining costs were $3 million lower than the third quarter of the prior year. The mine's operating costs, including mining, processing and general and administrative costs, decreased to $15.58 per tonne in the third quarter relative to $15.75 per tonne in the prior-year quarter.

New Afton's third quarter co-product cash costs were $552 per ounce of gold and $0.91 per pound of copper relative to $471 per ounce and $0.94 per pound in the prior-year quarter. The mine's third quarter co-product all-in sustaining costs were $719 per ounce of gold and $1.18 per pound of copper relative to the prior-year third quarter co-product all-in sustaining costs of $671 per ounce and $1.33 per pound.

For the nine-month period ended September 30, 2016, New Afton's gold production of 74,219 remained consistent when compared to the same period of the prior year. Consistent with the third quarter, the increase in throughput offset a planned decrease in gold grade, while gold recovery remained constant.

Through September 30, 2016, New Afton's copper production increased by 4.9 million pounds, or 8%, to 65.8 million pounds when compared to the same period of the prior year. The increase in production was driven by the combined benefit of a 14% increase in mill throughput and a 2% increase in copper recovery more than offsetting a 7% decrease in copper grade.

For the nine-month period ended September 30, 2016, New Afton's all-in sustaining costs remained consistent at ($202) per ounce despite a $7 million, or $138 per ounce, decrease in by-product revenues relative to the first nine months of 2015 as a result of the decrease in the realized copper price. The mine's all-in sustaining costs benefitted from an $11 million, or $163 per ounce, decrease in sustaining costs when compared to the same period of the prior year.

New Afton's co-product cash costs in the first nine months of 2016 were $526 per ounce of gold and $0.90 per pound of copper relative to $476 per ounce and $1.01 per pound in the prior-year period. The mine's co-product all-in sustaining costs of $685 per ounce of gold and $1.17 per pound of copper compared to $682 per ounce and $1.44 per pound in the same period of the prior year.

Based on New Afton's operating performance in the first nine months of 2016, the mine is positioned to meet its full-year gold production guidance of 90,000 to 100,000 ounces with copper production expected to be towards the high end of the guidance range of 75.0 to 85.0 million pounds. As a result of the strong copper production, coupled with the copper price continuing to be higher than the company's $2.00 per pound assumption, New Afton's full-year costs are expected to be below the guidance ranges of ($335) to ($295) per ounce for total cash costs and $95 to $135 per ounce for all-in sustaining costs.

Mesquite

Third quarter gold production at Mesquite was 18,835 ounces relative to 43,291 ounces in the prior-year quarter. Mesquite's quarterly production was impacted as mining activities were significantly more focused on waste stripping than in the third quarter of 2015. As a result, ore tonnes placed on the leach pad were over 50% below the prior-year quarter, which was only partially offset by higher grade material being mined. In addition to the overall decrease in ore tonnes mined and placed, production was impacted as a higher percentage of the ore tonnes mined and placed during the third quarter were from a transition zone, located between the oxide and non-oxide zones, that had lower overall recovery. Mining at Mesquite has since moved to a different area of the open pit and gold production in the first three weeks of October totalled approximately 10,000 ounces.

Mesquite's third quarter all-in sustaining costs of $1,202 per ounce were $310 per ounce higher than the prior-year quarter primarily as a result of a $4 million, or $395 per ounce, increase in sustaining costs resulting from the combined impact of increased capitalized waste stripping and lower gold sales. Total cash costs during the quarter decreased by $85 per ounce relative to the third quarter of 2015 despite the lower gold sales as a higher portion of Mesquite's mining costs were added to leach pad inventory when compared to the prior-year quarter.

For the nine-month period ended September 30, 2016, Mesquite's gold production was 71,770 ounces relative to 91,479 ounces in the prior-year period. Mesquite's production in the first nine months of 2016 was primarily impacted by the lower recoveries associated with the transition material as the decrease in ore tonnes mined and placed on the leach pad was offset by higher gold grade.

Mesquite's all-in sustaining costs in the first nine months of 2016 were $1,085 per ounce relative to $1,300 per ounce in the same period of the prior year. The decrease in all-in sustaining costs was attributable to a $178 per ounce decrease in total cash costs to $622 per ounce coupled with a $10 million, or $37 per ounce, decrease in sustaining costs.

Though the fourth quarter is scheduled to be Mesquite's strongest production quarter of the year, the mine's full-year gold production is expected to be approximately 15,000 ounces below the guidance range of 130,000 to 140,000 ounces. As a result of the lower production, Mesquite's full-year total cash costs are expected to be above the guidance range of $590 to $630 per ounce, while all-in sustaining costs should be slightly below the guidance range of $1,015 to $1,055 per ounce due to lower than planned capitalized waste stripping.

Peak Mines

Third quarter gold production at the Peak Mines of 37,981 ounces increased by 83% relative to the prior-year quarter and represented the highest quarterly production since the company's 2009 merger. The significant increase in gold production was attributable to the combination of a 27% increase in tonnes processed and a 33% increase in gold grade. Peak continues to outperform, with the increase in gold production relative to the company's plans approximately 70% attributable to increased ore tonnes mined and processed, stemming from improved mine sequencing, with the remaining 30% a result of positive grade reconciliation.

Quarterly copper production of 4.2 million pounds increased by 31% relative to the third quarter of 2015 due to the positive impact of higher throughput coupled with higher copper recovery.

All-in sustaining costs at the Peak Mines decreased by $618 per ounce to $632 per ounce relative to the prior-year quarter. The decrease in all-in sustaining costs was a result of a $372 per ounce decrease in total cash costs to $522 per ounce coupled with a $3 million, or $246 per ounce, decrease in sustaining costs. As the Peak Mines' gross operating costs remained largely consistent, the decrease in total cash costs was primarily attributable to the increase in gold production.

For the nine-month period ended September 30, 2016, gold production at the Peak Mines increased by 61% to 88,862 ounces relative to the prior-year period. The increase in gold production in the first nine months of 2016 was driven by an increase in mill throughput, gold grade and recovery. As previously disclosed, the prior-year period was impacted by underground geotechnical challenges that temporarily limited access to higher grade ore.

Copper production of 10.8 million pounds increased by 5% when compared to the same period of the prior year.

All-in sustaining costs at the Peak Mines in the first nine months of 2016 decreased by $566 per ounce to $736 per ounce. The decrease in all-in sustaining costs was attributable to the combination of a $366 per ounce decrease in total cash costs and a $6 million, or $200 per ounce, decrease in sustaining costs. The decrease in total cash costs relative to the first nine months of 2015 was driven by the increase in production, which more than offset the impact of by-product revenues decreasing by $1 million, or $188 per ounce, due to the lower copper price.

As a result of the Peak Mines' very strong operating performance in the first nine months of 2016, the operation has already achieved its full-year gold production guidance of 80,000 to 90,000 ounces of gold and exceeded its copper production guidance of 6.0 to 8.0 million pounds with a full quarter left in the year. For the year, gold production is expected to be 10,000 to 15,000 ounces above the guidance range, while copper production should be approximately 5.0 million pounds above the guidance range. Driven by the mine's strong operating performance, as well as the copper price continuing to be above the company's $2.00 per pound assumption, the Peak Mines' total cash costs and all-in sustaining costs are expected to be well below their respective guidance ranges of $800 to $840 per ounce and $1,020 to $1,060 per ounce.

Cerro San Pedro

As previously announced, Cerro San Pedro finished active mining late in the second quarter of 2016 and has now transitioned into residual leaching. As a result, and consistent with expectations, the mine's third quarter gold production decreased to 14,866 ounces. Cerro San Pedro's third quarter silver production was 0.2 million ounces.

Cerro San Pedro's third quarter all-in sustaining costs of $912 per ounce increased relative to the prior-year quarter, driven by a $166 per ounce increase in total cash costs to $897 per ounce. The increase in total cash costs was attributable to higher cost inventory ounces coming off the leach pad as well as the lower gold production.

For the nine-month period ended September 30, 2016, consistent with the company's expectations, gold production at Cerro San Pedro decreased to 50,929 ounces as the operation concluded active mining and transitioned to residual leaching.

Silver production of 0.7 million ounces through the first nine months of 2016 was below the same period of the prior year.

All-in sustaining costs at Cerro San Pedro in the first nine months of 2016 were $911 per ounce relative to $852 per ounce in the same period of the prior year. Consistent with the third quarter, the increase was due to higher cost inventory ounces coming off the leach pad as well as the lower gold production.

Cerro San Pedro's full-year gold production is on target to be within the guidance range of 60,000 to 70,000 ounces, while silver production is expected to be below the guidance range of 1.3 to 1.5 million ounces. Cerro San Pedro's total cash costs and all-in sustaining costs are expected to be slightly above their respective guidance ranges of $755 to $795 per ounce and $765 to $805 per ounce, primarily as a result of lower silver by-product revenues.

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AND
New Gold Announces Earn-in Agreement with Rimfire Pacific Mining

10/27/2016
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(All dollar figures are in Australian dollars unless otherwise indicated)

TORONTO, Oct. 27, 2016 /CNW/ - New Gold Inc. ("New Gold") (TSX:NGD) (NYSE MKT:NGD) today announces that the company has entered into an Earn-in Agreement (the "Agreement") with Rimfire Pacific Mining NL ("Rimfire"). The Agreement relates to Rimfire's Fifield Project ("Fifield" or the "Project"), located in central New South Wales, Australia. Pursuant to the Agreement, New Gold will have the option to earn up to a 70% interest in the Fifield Project by incurring a total of A$12 million of exploration expenditures on the Project over a five-year period.

"The Fifield earn-in fits New Gold's strategy of disciplined growth in stable jurisdictions," stated Hannes Portmann, Executive Vice President, Business Development. "The Project offers excellent potential for significant new discoveries and resource growth, while the earn-in structure maximizes our company's flexibility as exploration is advanced."

The Fifield Project, located approximately 300 kilometres southeast of New Gold's Peak Mines, includes a 673 square kilometre land package. The Project is strategically positioned along the prolific Lachlan Transverse Zone, host to several established mining operations including the Cadia and North Parkes copper-gold mines, both of which share strong geologic characteristics with New Gold's New Afton copper-gold mine in Kamloops, British Columbia. The Fifield Project encompasses an area of highly prospective geology that offers excellent potential for both gold-silver and copper-gold discoveries. In addition to hosting multiple exploration targets, the Project already includes an established mineral resource at the Sorpresa gold and silver deposit, a zone of near-surface mineralization discovered by Rimfire in 2010, that remains open along strike and at depth.

"We are excited to work with the Rimfire team as the Fifield Project demonstrates large-scale, world-class discovery potential in a geologic setting very familiar to us," stated Mark Petersen, Vice President, Exploration.

New Gold's rights and obligations relating to the earn-in are subject to customary conditions precedent, including approval of the Australian Government Foreign Investment Review Board. When those conditions are satisfied (the "Effective Date"), New Gold will be committed to incur a minimum of A$2 million of exploration expenditures on the Project on or before the first anniversary of the Effective Date. Thereafter, New Gold has the option to earn an initial 51% interest in the Project by incurring an additional A$5 million of exploration expenditures, for an aggregate A$7 million, on or before the third anniversary of the Effective Date ("First Earn-in Period"). In the two years following the First Earn-in Period, New Gold will have the option to increase its ownership interest by 19% to 70% by incurring an additional A$5 million of exploration expenditures.

In conjunction with the execution of the Agreement, New Gold completed a A$500,000 private placement for approximately 23.8 million Rimfire common shares at a price of A$0.021 per share, which represents approximately a 2.5% pro forma ownership interest.

ABOUT NEW GOLD INC.
New Gold is an intermediate gold mining company. The company has a portfolio of four producing assets and two significant development projects. The New Afton Mine in Canada, the Mesquite Mine in the United States, the Peak Mines in Australia and the Cerro San Pedro Mine in Mexico, provide the company with its current production base. In addition, New Gold owns 100% of the Rainy River and Blackwater projects, both in Canada, as well as a 4% gold stream on the El Morro project located in Chile. 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.

CAUTIONARY LANGUAGE
Certain information contained in this news release, including any information relating to New Gold's future financial or operating performance are "forward looking". All statements in this news release, other than statements of historical fact, which address events, results, outcomes or developments that New Gold expects to occur are "forward-looking statements". Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "scheduled", "targeted", "estimates", "forecasts", "intends", "anticipates", "projects", "potential", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur" or "be achieved" or the negative connotation of such terms. Forward-looking statements in this news release include, among others, statements with respect t.. etc. etc.

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