Reserves & Resources

Mineral Resource Estimates

The following table sets forth New Gold's estimated Mineral Resources as of the dates set forth in footnote (1) to the table.

Measured, Indicated and Inferred Mineral Resources ^(1,2,8,9)

1. ⁽¹⁾ All Mineral Resources have been calculated in accordance with the CIM Standards or the JORC Code. The JORC Code has been accepted for current disclosure rules in Canada under NI 43-101. The Mineral Resources have been reported as of the following dates:
   • Amapari Mine - September 30, 2007
   • Peak Mines - December 31, 2006
   • New Afton Project - September 21, 2006
   • Cerro San Pedro Mine - March 31, 2007
   • El Morro Project - March 31, 2008
2. ⁽²⁾ The qualified person(s) (as defined under NI 43-101) or competent persons (as defined under the JORC Code) for the Mineral Resource estimates are as follows:
   • Amapari Mine - Emmanuel Henry, Member of the AusIMM (CP), AMEC International (Chile) S.A.
   • Peak Mines - Geoffrey Chaliner, MIMMH, B.Sc (Eng), C.Eng, Senior Consultant, Resources, RSG Global Consulting Pty Ltd
   • New Afton Project - David Rennie, Scott Wilson Roscoe Postle Associates Inc.
   • Cerro San Pedro Mine - William L. Rose, WLR Consulting, Inc.
   • El Morro Project - Barton G. Stone, P.G., and Richard J. Lambert, P.E., Pincock, Allen & Holt
3. ⁽³⁾ Mineral Resource estimates for the Amapari Mine were calculated using a gold price of $600 per ounce, based on a cut-off grade of 0.5 grams per tonne for the open pit and 2.1 grams per tonne for the underground mineralization.
4. ⁽⁴⁾ Mineral Resource estimates for the Peak Mines were calculated using a gold price of $525 per ounce and a copper price of $1.50 per pound.
5. ⁽⁵⁾ Mineral Resources for the New Afton Project were estimated by applying a cut-off of $10 per tonne of ore, which was derived using a gold price of $450 per ounce, a silver price of $5.25 per ounce and a copper price of $1.20 per pound.
6. ⁽⁶⁾ Mineral Resources for the Cerro San Pedro Mine have been estimated at a cut-off grade of 0.20 grams per tonne of gold. Silver-to-gold ratio is estimated at 60:1.
7. ⁽⁷⁾ Reported at 100%, however, Metallica's interest is only 30%. Mineral Resource estimates for the El Morro Project are calculated on a copper equivalent cut-off basis: Eq Cu = Cu (%) + 0.592 x Au (g/t), where Cu (%) represents the average copper grade, Au (g/t) represents the average gold grade and 0.592 represents a constant based on a copper price of $1.25 per pound, a gold price of $500 per ounce and average metal recoveries for the deposit. Inferred Mineral Resources are defined on the basis of drill sample density and include Inferred Mineral Resources occurring within and outside a simulated pit shell based on a copper price of $1.25 per pound and a gold price of $500 per ounce.
8. ⁽⁸⁾ Mineral Resources are not known with the same degree of certainty as Mineral Reserves and do not have demonstrated economic viability.
9. ⁽⁹⁾ Numbers may not add up due to rounding.
10. ⁽¹⁰⁾ Represents total tonnes for mineral resource reserves at each stage.

Ore Reserve/Mineral Reserve Estimates

The following table sets forth the estimated Ore Reserve/Mineral Reserve for the Amapari Mine, the Peak Mines, the New Afton Project, the Cerro San Pedro Mine and the El Morro Project as of the dates set forth in footnote (1) to the table.

1. ⁽¹⁾ All Mineral Reserves have been calculated in accordance with the CIM Standards or the JORC Code. The JORC Code has been accepted for current disclosure rules in Canada under NI 43-101. The Mineral Reserves have been reported as of the following dates:
   • Amapari Mine - September 30, 2007
   • Peak Mines - December 31, 2006
   • New Afton Project - September 21, 2006
   • Cerro San Pedro Mine - March 31, 2007
   • El Morro Project - March 31, 2008
2. ⁽²⁾ The qualified person(s) (as defined under NI 43-101) or competent persons (as defined under the JORC Code) for the Mineral Reserves estimates are as follows:
   • Amapari Mine - Emmanuel Henry, Member of the AusIMM (CP), AMEC International (Chile) S.A.
   • Peak Mines - Geoffrey Chaliner, MIMMH, B.Sc (Eng), C.Eng, Senior Consultant, Resources, RSG Global Consulting Pty Ltd
   • New Afton Project - David Rennie, Scott Wilson Roscoe Postle Associates Inc.
   • Cerro San Pedro Mine - William L. Rose, WLR Consulting, Inc.
   • El Morro Project - Barton G. Stone, P.G., and Richard J. Lambert, P.E., Pincock, Allen & Holt
3. ⁽³⁾ Mineral Reserves estimates for the Amapari Mine were calculated using a gold price of $575 per ounce, based on a cut-off grade of 1.1 grams per tonne.
4. ⁽⁴⁾ Mineral Reserves estimates for the Peak Mines were calculated using a gold price of $450 per ounce and a copper price of $1.25 per pound. The cut-off net smelter return value used for the Mineral Reserve estimates for the Peak Mines was $100 per tonne.
5. ⁽⁵⁾ Mineral Reserve estimates for the New Afton Project were calculated using a gold price of $475 per ounce and a copper price of $1.45 per pound. Cut-off at $15 per tonne of ore.
6. ⁽⁶⁾ Mineral Reserve estimates for the Cerro San Pedro Mine were calculated using a $475 per ounce gold price and a $8.00 per ounce silver price.
7. ⁽⁷⁾ Reported at 100%, however, Metallica's interest is only 30%. Mineral Reserve estimates for the El Morro Project were calculated on a copper equivalent cut-off basis: Eq Cu = Cu (%) + 0.592 x Au (g/t), where Cu (%) represents the average copper grade, Au (g/t) represents the average gold grade and 0.592 represents a constant based on a copper price of $1.25 per pound, a gold price of $500 per ounce and average metal recoveries for the deposit.
8. ⁽⁸⁾ For the calculation of estimated total reserves, the reserve estimates for the El Morro Project have been calculated at 30% of the total reserves, to reflect Metallica's 30% interest in the El Morro Project.
9. ⁽⁹⁾ Numbers may not add up due to rounding.
10. ⁽¹⁰⁾ Represents total tonnes for mineral resource reserves at each stage.

Cautionary Note to United States Investors

This Joint Disclosure Booklet and the documents incorporated by reference herein have been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of United States securities laws. Unless otherwise indicated, all reserve and resource estimates included in this Joint Disclosure Booklet and the documents incorporated by reference herein have been prepared in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining and Metallurgy Classification System or the JORC Code. NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects.

Canadian standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission ("SEC"), and reserve and resource information contained or incorporated by reference into this Joint Disclosure Booklet and the documents incorporated by reference herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term "resource" does not equate to the term "reserves". Under U.S. standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC's disclosure standards normally do not permit the inclusion of information concerning "measured mineral resources", "indicated mineral resources" or "inferred mineral resources" or other descriptions of the amount of mineralization in mineral deposits that do not constitute "reserves" by U.S. standards in documents filed with the SEC. U.S. investors should also understand that "inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. Under Canadian rules, estimated "inferred mineral resources" may not form the basis of feasibility or pre-feasibility studies except in rare cases. Investors are cautioned not to assume that all or any part of an "inferred mineral resource" exists or is economically or legally mineable. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in place tonnage and grade without reference to unit measures. The requirements of NI 43-101 for identification of "reserves" are also not the same as those of the SEC, and reserves reported by Peak, New Gold, Metallica and the Combined Company in compliance with NI 43-101 may not qualify as "reserves" under SEC standards. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made public by companies that report in accordance with United States standards.

CIM Standards Definitions

The estimated mineral resources and mineral reserves for the New Afton Project, the Cerro San Pedro Mine and the El Morro Project have been calculated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") ? Definitions Adopted by CIM Council on December 11, 2005 (the "CIM Standards") which were adopted by the Canadian Securities Administrators' National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). The following definitions are reproduced from the CIM Standards:

The term "Mineral Resource" means a concentration or occurrence of natural, solid, inorganic or fossilized organic material in or on the Earth's crust in such form and quantity and of such grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.

The term "Inferred Mineral Resource" means that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

The term "Indicated Mineral Resource" means that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.

The term "Measured Mineral Resource" means that part of a Mineral Resource for which quantity, grade or quality, densities, shape, physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.

The term "Mineral Reserve" means the economically mineable part of a Measured or Indicated Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. A Mineral Reserve includes diluting materials and allowances for losses that may occur when the material is mined.

The term "Probable Mineral Reserve" means the economically mineable part of an Indicated Mineral Resource and, in some circumstances, a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.

The term "Proven Mineral Reserve" means the economically mineable part of a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction is justified.

JORC Code Definitions

The estimated mineral resources and ore reserves for the Amapari Mine and the Peak Mines have been calculated in accordance with the current (1999) version of the Australasian Code for Reporting of Mineral Resources and Ore Reserves (the "JORC Code"), the Australian worldwide standards. The JORC Code has been accepted for current disclosure rules in Canada under NI 43-101. The following definitions are reproduced from the JORC Code:

The term "Mineral Resource" means a concentration or occurrence of material of intrinsic economic interest in or on the Earth's crust in such form and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.

The term "Inferred Mineral Resource" means that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability.

The term "Indicated Mineral Resource" means that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.

The term "Measured Mineral Resource" means that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and/or grade continuity.

The term "Ore Reserve" means the economically mineable part of a Measured or Indicated Mineral Resource. It includes diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments, which may include feasibility studies, have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified. Ore Reserves are sub-divided in order of increasing confidence into Probable Ore Reserves and Proved Ore Reserves.

The term "Probable Ore Reserve" means the economically mineable part of an Indicated, and in some circumstances Measured Mineral Resource. It includes diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments, which may include feasibility studies, have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified.

The term "Proved Ore Reserve" means the economically mineable part of a Measured Mineral Resource. It includes diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments, which may include feasibility studies, have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified.

The foregoing definitions of Mineral Resources and Ore Reserves as set forth in the JORC Code have been reconciled to the definitions set forth in the CIM Standards. If the Mineral Resources and Ore Reserves for the Amapari Mine and the Peak Mines were estimated in accordance with the definitions in the CIM Standards, there would be no substantive difference in such Mineral Resources and Ore Reserves.