New Gold To Buy Remaining 19.9% Stake in New Afton Mine for $300M in Cash

New Gold Inc. ("New Gold" or the "Company") (TSX:NGD) (NYSE:NGD) is pleased to announce that it has entered into an agreement with Ontario Teachers' Pension Plan ("Ontario Teachers'") to acquire the remaining 19.9% free cash flow interest in the Company's New Afton Mine ("New Afton") (the "Transaction"). Following the transaction, the Company will have fully consolidated its free cash flow interest in New Afton to 100%.

On closing of the Transaction, Ontario Teachers' free cash flow interest in New Afton will be fully eliminated in exchange for a cash payment of $300 million from New Gold. New Gold plans to fund the cash payment with cash on hand, borrowings from its existing revolving credit facility and a gold prepayment financing ("Gold Prepayment").

Benefits to New Gold Shareholders

• Fully consolidates free cash flow from one of Canada's most attractive mines – New Afton is entering into a period of expected significant free cash flow growth driven by increasing production and improved costs.
• Investment in an existing high-quality operation – New Gold has developed extensive block caving expertise and social partnerships in an exceptional location.
• Accretive and disciplined transaction – Fully consolidates ownership, gaining exposure to 100% of New Afton's life-of-mine cash flow with no equity dilution to New Gold's shareholders. New Gold will finance the Transaction by utilizing its strong balance sheet and significant near-term free cash flow, while maintaining financial discipline and flexibility.
• Increased upside exposure – New Gold's focus on near-mine exploration activities, highlighted by exceptional drill results released in September 2024, provides New Afton with the potential to add substantial value by improving the production profile and extending mine life. The Company is committing $17 million towards exploration in 2025, with a strong focus on K-Zone.