New Afton

The New Afton Property is located on the south side of the Thompson River Valley, about 10 km west of Kamloops, British Colombia. Access is by mine-site roads off the Trans-Canada Highway. Kamloops has an airport with daily air service to/from Vancouver and Calgary. Railroads belonging to both Canadian National Railway and Canadian Pacific Railway, service Kamloops with a line belonging to Canadian Pacific crossing the northern portion of the property near Kamloops Lake.

The project execution plan and schedule require approximately twenty-six months from project approval to achieve commercial production. New Gold has already taken steps to protect the schedule by selecting the mining contractor - Cementation Canada - and by ordering key components of the SAG mill, which are scheduled for delivery in Q4, 2008. Initially the mine and process plant will operate for approximately two years at 4,400 t/d.

The second part of the project will be implemented with an expansion between July 2010 and June 2011, enabling production to ramp up to 11,000 tpd by late 2011. Cementation will be managed by NGD through an open book contract with risk sharing provisions. New Gold intends that Cementation will be responsible for underground development, construction and mine production until the ramping up to 11,000 tpd is completed.