Quarter-Over-Quarter Production Growth Drives Record Free Cash Flow Generation;
On-Track to Achieve Annual Guidance

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

TORONTO, July 28, 2025 /CNW/ - New Gold Inc. ("New Gold" or the "Company") (TSX: NGD) (NYSE American: NGD) today reported financial and operating results for the quarter and six-months ended June 30, 2025. Second quarter 2025 production was 78,595 ounces of gold and 13.5 million pounds of copper, at an operating expense of $1,070 per gold ounce sold (co-product basis)3 and all-in sustaining costs1 of $1,393 per gold ounce sold (by-product basis). Quarter-over-quarter production growth resulted in strong cash flow from operations of $163 million and record quarterly free cash flow of $63 million, highlighted by a record $45 million of quarterly free cash flow from Rainy River.

"Across the Company, the second quarter successfully built on the momentum from the first quarter, positioning us to deliver on our annual guidance. The quarter was highlighted by a record production month at Rainy River, resulting in record quarterly free cash flow for both Rainy River and the Company," stated Patrick Godin, President and CEO.

"At New Afton, the B3 cave continued to over-deliver, with the cave now expected to exhaust in the middle of the third quarter, four months later than initially planned. Mill performance also continues to be a highlight, with a quarter-over-quarter throughput increase. At Rainy River, the second quarter saw a meaningful increase in production compared to the first quarter. June was a record production month, providing an excellent indication of the expected open pit performance for the remainder of the year. Combined with the strong quarterly mill performance, which demonstrated the ability to process higher-grade material at a high throughput rate, Rainy River is on-track for increased production in the second half of the year. Additionally, underground development continues to advance, and the site successfully commissioned the ventilation loop and primary ventilation fans in late June. With the ventilation loop now complete, and the in-pit portal breakthrough completed in early April, underground development is expected to accelerate through the remainder of the year," added Mr. Godin.

"Exploration efforts at both operations continue to support our organic growth initiatives, with seven diamond drills active at New Afton and three at Rainy River. Exploration drilling at New Afton is at an all-time high on all key metrics, supported by the recently completed exploration drift developed from the C-Zone extraction level, designed to infill and expand K-Zone, as well as the Lift 1 level exploration drift developed last year. At Rainy River, exploration efforts are focused on increasing the underground ore inventory and testing open pit extensions at NW-Trend. The Company looks forward to providing exploration results in September," concluded Mr. Godin.

Second Quarter Highlighted by Strong Performance from New Afton, Rainy River Posts Record June Production and Remains On-Track for Continued Ramp-up Throughout the Year

Second quarter consolidated production was 78,595 ounces of gold and 13.5 million pounds of copper at all-in sustaining costs1,2 of $1,393 per gold ounce sold. Gold production through the first half of 2025 represented approximately 38% of the midpoint of annual consolidated production guidance of 325,000 to 365,000 ounces of gold, in-line with the planned first half of 38%.

New Afton second quarter production was 16,991 ounces of gold and 13.5 million pounds of copper at all-in sustaining costs1,2 of ($537) per gold ounce sold. The B3 cave continued to perform better than planned, leading to higher than expected head grades. As a result, production through the first half of 2025 represented approximately 54% and 49% of the midpoint of annual guidance of 60,000 to 70,000 ounces of gold and 50 to 60 million pounds of copper, respectively.

C-Zone cave construction continues to advance on schedule, facilitating a step up in copper and gold production in the second half of 2025. The operation is advancing well, with undercutting completed in May. Cave construction progress is 64% complete as of the end of June. The flotation cleaner circuit upgrade is on schedule for commissioning in the third quarter. This project is expected to improve copper and gold recoveries as the operation ramps up to full processing capacity of approximately 16,000 tonnes per day beginning in 2026.

Rainy River second quarter production was 61,604 ounces of gold at all-in sustaining costs1,2 of $1,696 per gold ounce sold, a substantial production increase and all-in sustaining cost decrease over the first quarter as the mill transitioned from low-grade stockpile material to processing higher grade open pit ore. June gold production totaled 37,341 ounces, a monthly production record, at an average grade of 1.44 g/t gold. With the mill now processing higher grade open pit material, the Company expects gold production to continue to step-up in the third quarter, compared to the second quarter. Gold production through the first half of 2025 represented approximately 34% of the midpoint of annual guidance of 265,000 to 295,000 ounces of gold, slightly behind the planned first half of 37%, driven by a one-week delay in the sequencing of the higher grade open-pit material in May, which led to an increase of approximately 5,900 ounces of gold-in-circuit inventory at quarter end.

Following the successful breakthrough of the pit portal in early April, the Rainy River underground mine achieved another important milestone with fresh air raise commissioning and completion of the ODM East ventilation loop. Underground development and stope production from several new mining zones can now progress as they come online in late-2025.

The Company is on track to deliver its 2025 consolidated production guidance of 325,000 to 365,000 ounces of gold and 50 to 60 million pounds of copper at all-in sustaining costs1,2 of $1,025 to $1,125 per gold ounce sold.
Record Quarterly Free Cash Flow Generation; Substantially Stronger Second Half Expected


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