New Gold Reports First Quarter Production On Track to Meet Annual Guidance

New Gold Inc. (“New Gold” or the “Company”) (TSX and NYSE American:
NGD) reports in-line first quarter operating results from the Rainy
River and New Afton Mines. (All amounts are in US dollars unless
otherwise indicated.)

First Quarter and Recent Operational Highlights

• Total production for the quarter was 123,263 gold equivalent ounces
  (79,398 ounces of gold, 136,513 ounces of silver and 19.5 million
  pounds of copper). Production is on track to meet annual guidance of
  465,000 to 520,000 gold equivalent ounces.
• The Rainy River Mine reported in-line gold equivalent production of
  62,278 ounces (61,557 ounces of gold and 60,383 ounces of silver) for
  the quarter.
• The New Afton Mine delivered another strong quarter with gold
  equivalent production of 60,986 ounces (17,841 ounces of gold and 19.5
  million pounds of copper).
• The Company ended the quarter with available liquidity of
  approximately $418 million, which includes $130 million in cash and
  cash equivalents and $288 million available under the credit facility,
  which secures the implementation of the short-term operational plan.

“We are encouraged by the progress made at Rainy River during the first
quarter as we re-position the operation for efficient and sustainable
mining. Concurrently, we continue to prioritize the completion of the
remaining construction and the optimization of the life of mine plan in
order to position the operation to deliver free cash flow starting in
late 2020,” stated Renaud Adams, CEO. “The New Afton Mine reported
another strong quarter of operating results as the team further advanced
the development of the C-zone. We are particularly encouraged with the
organic growth potential of the D-zone with the first hole of the
exploration drilling program intersecting 140 metres of mineralization
located 360 metres below the C-zone.”

First Quarter Production Highlights

Rainy River Mine Operational Highlights

• The Rainy River Mine reported in-line gold equivalent production of
  62,278 ounces (61,557 ounces of gold and 60,383 ounces of silver) for
  the quarter. As previously disclosed, production during the quarter
  included planned lower grades as mining operations continued the
  transition to phase 2 of the mine plan.
• During the quarter, approximately 1.4 million ore tonnes and 8.6
  million waste tonnes (including 2.97 million capitalized waste tonnes)
  were mined at an operating strip ratio of 6.10:1. Mining operations in
  the quarter were primarily focused on waste stripping to expose ore
  for mining in future quarters. Additionally, 0.9 million tonnes of
  out-pit non-acid generating (NAG) material were mined in preparation
  for planned dam raises scheduled to begin during the second quarter.
• Mill throughput for the quarter averaged 19,725 tonnes per calendar
  day, below the annual target of 22,000-24,000 tonnes per day. The
  lower average mill throughput was negatively impacted by the
  significant buildup of ice in the crushed ore stockpile above the
  apron feeders. Average mill throughput returned to target levels at
  the end of the quarter.
• Mill availability for the quarter was a record 89% (95% in March),
  despite the planned downtime to replace the ball mill trunnion and
  complete repairs.
• Gold recovery improved to average 90% for the quarter, a significant
  improvement over the 89% reported in the fourth quarter when
  considering the 16% lower average grade milled. Recoveries are
  expected to continue to improve throughout the year to an average of
  90-92% for the year.
• Mr. Eric Vinet, Vice President of Technical Services will assume the
  position of General Manager of the Rainy River Mine on an interim
  basis, following the resignation of the former General Manager,
  effective April 10th. Mr. Vinet has extensive open pit experience,
  including over 10 years as General Manager and he will hold the
  position until such time as a permanent General Manager is appointed.
  A search is currently underway and the Company anticipates filling the
  position in the near future.
• A strategic exploration drilling program is expected to begin in the
  second quarter that will test near-mine targets in the Intrepid North
  area.

New Afton Mine Operational Highlights

• The New Afton mine produced 60,986 gold equivalent ounces for the
  quarter, including 17,841 ounces of gold, and 19.5 million pounds of
  copper, in line with plan.
• The second phase of a planned mill upgrade to address supergene ore
  recovery advanced during the quarter with commissioning scheduled for
  the third quarter.
• Development of the B3 zone is currently underway, which will sustain
  ongoing production during the C-zone development period.
• Efforts during the quarter continued to focus on de-risking the
  execution of C-zone project, primarily focusing on the finalization of
  the tailings disposal plan and advancing permitting efforts with the
  objective of updating the life of mine plan in the latter part of the
  year. During the quarter, exploration-heading development towards the
  C-zone commenced and advanced by approximately 50 metres.
• An underground drilling program is currently underway at the New Afton
  Mine that will test the down plunge extension of the C-zone (the
  D-zone) that could increase the resource inventory and extend mine
  life beyond 2030. The first hole of the 10-hole program has been
  completed, which intersected C-zone style mineralization over an
  approximate 140 metre interval (from 662 metres to 802 metres depth)
  and ended at the planned target of 360 vertical metres below the
  C-zone (assays pending). A second drill hole is underway and the
  program is expected to be completed by the end of the third quarter.

Upcoming News and Events

• Annual General Meeting of Shareholders (April 24)
• Q1 Financial Results (before-market April 25)

About New Gold Inc.

New Gold is a Canadian-focused intermediate gold mining company. The
Company has a portfolio of two core producing assets in top-rated
jurisdictions, the Rainy River and New Afton Mines in Canada. The
Company also operates the Cerro San Pedro Mine in Mexico (which
transitioned to residual leaching in 016). In addition, New Gold owns
100% of the Blackwater project located in Canada. New Gold’s objective
is to be a leading intermediate gold producer, focused on the
environment and social responsibility. For further information on the
Company, please visit www.newgold.com.

Cautionary Note Regarding Forward-Looking Statements

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 to:
planned development and exploration activities and timing for 2019 and
future years.

All forward-looking statements in this news release are based on the
opinions and estimates of management as of the date such statements are
made and are subject to important risk factors and uncertainties, many
of which are beyond New Gold’s ability to control or predict. Certain
material assumptions regarding such forward-looking statements are
discussed in this news release, New Gold’s latest annual management’s
discussion and analysis (“MD&A”), Annual Information Form and Technical
Reports filed at www.sedar.com
and on EDGAR at www.sec.gov.
In addition to, and subject to, such assumptions discussed in more
detail elsewhere, the forward-looking statements in this news release
are also subject to the following assumptions: (1) there being no
significant disruptions affecting New Gold’s operations; (2) political
and legal developments in jurisdictions where New Gold operates, or may
in the future operate, being consistent with New Gold’s current
expectations; (3) the accuracy of New Gold’s current mineral reserve and
mineral resource estimates; (4) the exchange rate between the Canadian
dollar and U.S. dollar, and to a lesser extent, the Mexican Peso, being
approximately consistent with current levels; (5) prices for diesel,
natural gas, fuel oil, electricity and other key supplies being
approximately consistent with current levels; (6) equipment, labour and
materials costs increasing on a basis consistent with New Gold’s current
expectations; (7) arrangements with First Nations and other Aboriginal
groups in respect of the Rainy River mine and Blackwater project being
consistent with New Gold’s current expectations; and (8) all required
permits, licenses and authorizations being obtained from the relevant
governments and other relevant stakeholders within the expected
timelines and the absence of material negative comments during the
applicable regulatory processes.

Forward-looking statements are necessarily based on estimates and
assumptions that are inherently subject to known and unknown risks,
uncertainties and other factors that may cause actual results, level of
activity, performance or achievements to be materially different from
those expressed or implied by such forward-looking statements. Such
factors include, without limitation: significant capital requirements
and the availability and management of capital resources; additional
funding requirements; price volatility in the spot and forward markets
for metals and other commodities; fluctuations in the international
currency markets and in the rates of exchange of the currencies of
Canada, the United States and, to a lesser extent, Mexico; discrepancies
between actual and estimated production, between actual and estimated
mineral reserves and mineral resources and between actual and estimated
metallurgical recoveries; risks related to early production at the Rainy
River Mine, including failure of equipment, machinery, the process
circuit or other processes to perform as designed or intended;
fluctuation in treatment and refining charges; changes in national and
local government legislation in Canada, the United States and, to a
lesser extent, Mexico or any other country in which New Gold currently
or may in the future carry on business; taxation; controls, regulations
and political or economic developments in the countries in which New
Gold does or may carry on business; the speculative nature of mineral
exploration and development, including the risks of obtaining and
maintaining the validity and enforceability of the necessary licenses
and permits and complying with the permitting requirements of each
jurisdiction in which New Gold operates, the lack of certainty with
respect to foreign legal systems, which may not be immune from the
influence of political pressure, corruption or other factors that are
inconsistent with the rule of law; the uncertainties inherent to current
and future legal challenges New Gold is or may become a party to;
diminishing quantities or grades of mineral reserves and mineral
resources; competition; loss of key employees; rising costs of labour,
supplies, fuel and equipment; actual results of current exploration or
reclamation activities; uncertainties inherent to mining economic
studies; changes in project parameters as plans continue to be refined;
accidents; labour disputes; defective title to mineral claims or
property or contests over claims to mineral properties; unexpected
delays and costs inherent to consulting and accommodating rights of
Indigenous groups; risks, uncertainties and unanticipated delays
associated with obtaining and maintaining necessary licenses, permits
and authorizations and complying with permitting requirements. In
addition, there are risks and hazards associated with the business of
mineral exploration, development and mining, including environmental
events and hazards, industrial accidents, unusual or unexpected
formations, pressures, cave-ins, flooding and gold bullion losses and
risks associated with the start of production of a mine, such as Rainy
River, (and the risk of inadequate insurance or inability to obtain
insurance to cover these risks) as well as “Risk Factors” included in
New Gold’s Annual Information Form, MD&A and other disclosure documents
filed on and available at www.sedar.com
and on EDGAR at www.sec.gov.
Forward-looking statements are not guarantees of future performance, and
actual results and future events could materially differ from those
anticipated in such statements. All of the forward-looking statements
contained in this news release are qualified by these cautionary
statements. New Gold expressly disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result of
new information, events or otherwise, except in accordance with
applicable securities laws.

Technical Information

The scientific and technical information contained herein has been
reviewed and approved by Eric Vinet, Vice President, Technical Services
of New Gold. Mr. Vinet is a Professional Engineer and member of the
Ordre des ingénieurs du Québec. He is a "Qualified Person" for the
purposes of NI 43-101.

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