NEW GOLD INC.

New Gold Inc. and Western Goldfields Inc. announce that they have completed their previously announced business combination. The transaction was completed by way of a plan of arrangement that was approved by the New Gold and Western Goldfields shareholders on May 13 and 14, 2009, respectively and which received final court approval on May 27, 2009. “The closing of this transaction represents another significant step for New Gold as we continue to deliver on our growth strategy which we had promised our shareholders approximately one year ago,” said Robert Gallagher, President and Chief Executive Officer of New Gold. “We are excited to bring the Mesquite Mine into our portfolio of assets as we continue to focus on growth by enhancing our operations, continuing the development of New Afton and pursuing strategic acquisition opportunities.”