- Rainy River Achieves Record Mine and Mill Productivity
- Reaffirms Annual Production Guidance

TORONTO--(BUSINESS WIRE)-- October 13, 2020 – New Gold Inc. (“New Gold” or the “Company”) (TSX and NYSE American: NGD) reports third quarter operational results for the Company as of September 30, 2020 and reaffirms annual production guidance. (All amounts are in US dollars unless otherwise indicated)

An earnings conference call and webcast will be held on November 5, 2020 beginning at 8:30 am Eastern Time to discuss the third quarter financial results. (Details provided at the end of this news release)

During this quarter, the Rainy River Mine delivered another strong quarter of operational and technical performance. Mine operations ramped up towards the 2021 target capacity of approximately 150,000 tonnes per day and the mill delivered a record of 27,000 tonnes per day, reaching the maximum monthly average throughput allowable under the existing mill permit. With both the mine and mill operating at capacity, the Company's efforts will now shift to focus on identifying additional opportunities to further optimize mine and mill productivities and unit cost performance.

Third Quarter and Recent Highlights

Total production for the third quarter was 115,536 gold equivalent (gold eq.) ounces (78,959 ounces of gold, 171,825 ounces of silver and 18.2 million pounds of copper), on track to achieve revised annual production guidance.
The Rainy River Mine produced 64,221 gold eq. ounces (63,004 ounces of gold and 102,814 ounces of silver) for the quarter, on track to achieve the mid-range of revised annual production guidance.
The New Afton Mine produced 51,315 gold eq. ounces (15,955 ounces of gold and 18.2 million pounds of copper) for the quarter, on track to achieve the mid-range of revised annual production guidance.
During the quarter, the Company completed the divestment of the Blackwater Project to Artemis Gold (“Artemis”) for total cash consideration of C$190 million.The initial cash payment of C$140 million was received during the quarter with the remaining C$50 million cash payment due on August 24, 2021. Under the terms of the agreement, the Company has retained an 8% gold stream and a 6% equity stake in Artemis. (Refer to the Company's June 24, 2020 and August 24, 2020 news releases for further information)
During the quarter, the Company completed the full redemption of its outstanding 6.25% senior notes due in 2022 that was funded from the proceeds of the $400 million senior notes offering that was completed on June 24, 2020. (Refer to the Company's June 24, 2020 and July 10, 2020 news releases for further information)
During the quarter, the Company transferred approximately $90 million in letters of credit related to mine closure costs to surety bonds, increasing the funds available under the credit facility.
On October 9, 2020, the Company extended its secured credit facility with a syndicate of 8 top-tier financial institutions. The facility will now mature on October 9, 2023 and has a new maximum borrowing limit of $350 million. (Additional details provided below)
At the end of the quarter, the Company had a cash position of $415 million and a strong liquidity position of approximately $720 million, based on the amended credit facility.
Mr. Eric Vinet has been promoted to Senior Vice President, Operations to be effective October 19, 2020. Eric joined New Gold in January 2019 as Vice President, Technical Services and most recently was the Interim General Manager at the Rainy River Mine where he led the successful repositioning of the operation for profitability and free cash flow generation.
"We are very pleased with the results from the Rainy River Mine as the operations met, or exceeded, target levels. Supported by the strong operational performance delivered in the quarter and with all deferred site construction capital substantially complete, the operation is well positioned to deliver on its life of mine plan that includes strong production growth at lower costs along with a significant and corresponding reduction in capital requirements." stated Renaud Adams, CEO. "Our improved operational performance has allowed New Gold to complete key corporate transactions during the year that supported the restructuring of our balance sheet and strengthened our liquidity position. As we enter the final quarter of the year, we will continue to build on the progress made during the year as we position the Company for the future and deliver free cash flow generation beginning in 2021."

Consolidated Third Quarter Operational Results
Q3 2020 9M 2020 2020 Revised Consolidated Guidance
Gold eq. production (ounces)1 115,536 317,050 415,000 - 455,000
Gold production (ounces) 78,959 210,043 284,000 - 304,000
Copper production (Mlbs) 18.2 53.6 65 - 75
Average realized gold price, per ounce2 1,613 1,532 -
Average realized copper price, per pound2 2.99 2.69 -

Total gold eq. ounces include silver and copper produced (excluding production from the Cerro San Pedro Mine) converted to a gold eq. based on a ratio of $1,500 per gold ounce, $17.75 per silver ounce and $2.85 per copper pound. Throughout the year the Company will report gold eq. ounces using a constant ratio of those prices. All copper is produced by the New Afton Mine.
Refer to the “Non-GAAP Financial Performance Measures" section of this press release.

Rainy River Mine Highlights
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