XSTRATA COPPER CHILE S.A.

New Gold announced it provided notice to Xstrata Copper Chile, a wholly owned subsidiary of Xstrata Plc, of the exercise of its right of first refusal to acquire 70% of the El Morro copper-gold project, Chile, for US$463 M. Goldcorp Inc. will loan the US$463 M to New Gold to fund the exercise of the right of first refusal. After acquisition of the 70% interest by a New Gold subsidiary, New Gold will sell that subsidiary to Goldcorp.