New Gold Updates 2013 Outlook

VANCOUVER - New Gold Inc. reported operational results for the third quarter of 2013. The company had gold production of 94,038 ounces compared to 104,577 ounces in the third quarter of 2012 and copper production increased by 67% to 23.7 million pounds from 14.2 million pounds.

Updated 2013 outlook is 390,000 to 400,000 ounces of gold production at all-in sustaining costs of approximately $900 per ounce and total cash costs (2) of approximately $375 per ounce.

"The strong performance of New Afton in British Columbia, our largest cash flow generator, and the successful acquisition of Rainy River in Canada during the quarter were very important milestones for our company," stated Randall Oliphant, Executive Chairman. "We are, however, disappointed that the operational challenges at Cerro San Pedro in Mexico and Mesquite in California, led us to update our outlook for the first time in the company's history. Importantly, our foundation of low costs, a solid balance sheet, and organic growth pipeline in favorable jurisdictions continues to be strong. As originally scheduled, the fourth quarter should be our highest production quarter of the year and we look forward to a strong finish to 2013."

During the third quarter, the company produced 94,038 ounces of gold at all-in sustaining costs of $779 per ounce and total cash costs of $280 per ounce, representing the lowest cost quarter in the company's history on both measures. For the three month period ended September 30, 2013, New Gold generated revenue of $196 million, earnings from mine operations of $51 million, net earnings of $12 million and net cash generated from continuing operations of $36 million. Adjusted net earnings were $20 million and adjusted net cash generated from continuing operations was $54 million.