- Provides Update on 2021 Operational Outlook
(All amounts are in U.S. dollars unless otherwise indicated)

TORONTO, Aug. 11, 2021 /PRNewswire/ - New Gold Inc. ("New Gold" or the "Company") (TSX: NGD) (NYSE American: NGD) reports second quarter results for the Company as of June 30, 2021. The Company will host a conference call and webcast today at 8:30 am Eastern Time to discuss the second quarter consolidated results and 2021 operational outlook (details are provided at the end of this news release). For detailed information, please refer to the Company's Second 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.

"The second quarter saw our operations perform well, and the Company remains on track to deliver an improved second half of the year," stated Renaud Adams, President & CEO. "I am especially proud of the free cash flow generated in the quarter even at our planned lower grade. While Rainy River experienced challenges in July, the mine has reached an inflection point and I expect it to contribute meaningful free cash flow going forward."

"During the quarter we continued to advance several key catalysts for the Company's future growth. Development of the decline towards the Intrepid underground ore zone at Rainy River continues to advance ahead of schedule, and C-Zone development at New Afton continues to advance on plan. We continue to seek ways to further optimize the performance at our operations and generate additional value for our shareholders," added Mr. Adams.

Consolidated Second Quarter Highlights

Total production for the quarter was 105,705 gold equivalent1 ("gold eq.") ounces (66,989 ounces of gold, 240,029 ounces of silver and 18.2 million pounds of copper). For the six-month period ended June 30, 2021, production was 201,731 gold eq.1 ounces (133,639 ounces of gold, 427,253 ounces of silver and 32.0 million pounds of copper).
Revenues for the quarter were $198 million.
Operating expense for the quarter was $913 per gold eq. ounce.
Total cash costs2 for the quarter were $977 per gold eq. ounce.
All-in sustaining costs2 for the quarter were $1,551 per gold eq. ounce.
Average realized gold price2 of $1,817 per ounce and average realized copper price2 of $4.43 per pound.
Net loss for the quarter was $16 million ($0.02 per share).
Adjusted net earnings2 for the quarter were $27 million ($0.04 per share).
Cash generated from operations for the quarter was $110 million ($0.16 per share). Cash generated from operations for the quarter, before changes in non-cash operating working capital2, was $85 million ($0.12 per share).
Free cash flow2 generated for the quarter was $21 million.
At the end of the quarter, the Company had a cash position of $138 million and a strong liquidity position of $464 million.
2021 Operational Outlook

At Rainy River in the second half of the year, the mine returns to higher-grade areas of the pit (433, HS and ODM zones). However, in July 2021, production was primarily from the eastern area of the ODM zone ("East Lobe") and realized gold grade from this area was below the expected gold grade in this period. East Lobe represents approximately 50% of planned production for the second half of 2021. If realized gold grade continues to track below expected gold grade, it would negatively impact the amount of ounces we expect to produce in the second half of 2021. The extent of the impact is not yet known but there is a risk that Rainy River may not achieve the lower end of its gold equivalent1 production guidance range of 275,000 to 295,000 ounces or the high end of its all-in sustaining costs2 guidance range of $1,125 per gold eq. ounce to $1,225 per gold eq. ounce. Management continues to assess the extent and impact of the lower gold grade from East Lobe, including additional reverse circulation drilling, and intend to provide updated information when available. The remaining high-grade areas that are planned to be mined during the second half of 2021, reconcile well with the resource block model, consistent with historical results.

At New Afton B3 production commenced in June following receipt of the Mines Act Permit on May 25, 2021, and will advance through the second half of the year. With the permit having been received later than anticipated, grades are expected to be lower in the second half of the year and New Afton is reviewing potential changes to its mine plan. As a result, New Afton's gold production is expected to be at the lower end of the guidance range of 52,000 to 62,000 ounces and copper production is expected to be at the mid-point of the guidance range of 56 to 66 million pounds. New Afton is currently on track to meet its gold equivalent1 production guidance range of 165,000 to 195,000 ounces and all-in sustaining costs2 are expected to be at the higher end of the cost range of $1,225 per gold eq. ounce to $1,325 per gold eq. ounce. With current metal prices significantly above reserve pricing, New Afton is evaluating potential for additional short-term extraction opportunities below the current reserve cut-off grades.

Based on current information, the Company is expecting to achieve the lower end of the annual consolidated gold equivalent1 production guidance range of 440,000 to 490,000 ounces and consolidated all-in sustaining costs2 are expected to be at the higher end of the range of $1,230 per gold eq. ounce to $1,330 per gold eq. ounce, although achieving these ranges may be impacted by the extent of the lower gold grade from Rainy River's East Lobe.

Consolidated Financial Highlights
Q2 2021 Q2 2020 H1 2021 H2 2020
see & read more on
https://www.newgold.com/investors/news-releases/news-details/2021/New-Gold-Reports-2021-Second-Quarter-Results/default.aspx