Drilling at New Afton's East Extension Continues to Deliver High-Grade Mineralization

TORONTO, Sept. 7, 2022 - New Gold Inc. ("New Gold" or the "Company") (TSX: NGD) (NYSE American: NGD) is pleased to provide detailed drill results for the underground exploration program underway at its New Afton Mine and provides an update on additional exploration activities at its operations.

• The below table provides 2022 assay result highlights for New Afton's upper portion of the East Extension (above 1.75 g/t Au and/or 1.75% Cu and an interval ?30m). Refer to Table 2 and Table 3 at the end of this news release for full assay results and drill hole collar coordinate

• Results to date show continuous mineralization, within an interpreted 1% copper grade shell, averaging 300 x 30 metres in plan and 250 metres down dip with higher gold and copper grades compared with the average grade of the current New Afton Mineral Reserve estimate of 0.67g/t gold and 0.74% copper
• Results will be incorporated in the 2022 year-end New Afton Mineral Resource estimate with the potential to add valuable resources at above current Mineral Reserve grades
• Geological interpretations show additional targets for higher-grade mineralization down plunge and vertically below the upper portion of East Extension where drilling is ongoing (refer to Figure 1) and both targets have the potential to host additional mineralization similar to the upper portion of the East Extension
• Given the lateral proximity to the C-Zone, the East Extension appears to have the potential to bring additional higher-grade reserves at a low development cost into the mine plan in the near-to mid-term

"I am very encouraged by the results to date on New Afton's underground exploration program," stated Renaud Adams, President & CEO. "New Afton's underground exploration program is focused on increasing higher-grade Mineral Resources to enhance the near-term mine plan and extend the mine life. We are focused primarily on three key initiatives. The first involves defining the higher-grade zone within the upper portion of the East Extension. The second is to explore the potential down plunge extension of the higher-grade zone, and the third initiative is to test for additional mineralization beneath the higher-grade zone. The upper portion of the East Extension continues to return gold and copper assay results well above the current Mineral Reserve grades, while the lower portion down plunge and the D-Zone remain open. Given the lateral proximity to the C-Zone, the East Extension appears to have the potential to bring additional higher-grade reserves at a low development cost into the mine plan in the near-to mid-term."

New Afton Mine long section with target locations

Underground East Extension

The Company launched a phase-two drilling program for the upper zone of the East Extension in October 2021 as a follow-up to the drill holes completed in 2020 targeting the high-grade gold-copper intercepts discovered in 2019 (refer to the Company's February 12, 2020 press release for further information). The phase-two drilling program has been designed to define the extension and continuity of the mineralization to support a Mineral Resource estimate and evaluate the potential addition to the current life of mine plan. The Company advanced a 55 metre exploration drift to allow three diamond drills to intercept mineralization at appropriate angles to properly infill the interpreted target area (refer to Figures 2 and 3). The drilling program totaled 38,084 metres in 115 drill holes planned on 20 metre centers, the results of which will be incorporated in the 2022 year-end New Afton Mineral Resource estimate with the potential to add valuable resources at above current Mineral Reserve grades.

Results to date show continuous mineralization, within an interpreted 1% copper grade shell, averaging 300 x 30 metres in plan and 250 metres down dip with higher gold and copper grades compared with the average grade of the current New Afton Mineral Reserve estimate of 0.67g/t gold and 0.74% copper (refer to Figures 2 and 3). The upper zone of the East Extension is characterized by disseminated and fracture filled sulphide mineralization as bornite and chalcopyrite associated with potassic dominant alteration hosted in volcanic fragmental and intrusive lithologies controlled by cross-cutting faults often on lithological contacts.

Geological interpretations show additional targets for higher-grade mineralization down plunge and vertically below the upper portion of East Extension where drilling is ongoing (refer to Figure 1). Both targets have the potential to host additional mineralization similar to the upper portion of the East Extension.

Additional Underground Targets

An additional 5,000 metres of underground drilling is planned upon completion of the required infrastructure at the base of C-Zone development to follow up on the Artificial Intelligence (AI) target areas previously defined in 2020 and is expected to be completed by the end of 2022. The program has been designed to explore the AI Southeast and AI North target areas and to assess potential higher-grade mineralization within the D-Zone ore body (refer to Figure 1).

Regional Exploration

The Company completed the exploration drilling program at the Cherry Creek Trend area and is progressing the data interpretation to assess if a follow-up drilling phase is warranted. Additional drill ready targets have been defined upon geophysical and geochemical surveys completed within the priority areas of the Company's landholdings. The most prospective target is located approximately eight kilometres southwest of the New Afton Mine, where a 5,000 metre reconnaissance drilling program started in August 2022 and is expected to be completed in the fourth quarter of 2022. Additional field activities, inclusive of geological mapping and geochemical survey are in progress for drill ready target definition within the broader landholdings focused on gold-copper porphyry style mineralization.

At Rainy River, the Company is now focusing on potential additional underground mineralization in proximity to the actual operation footprint. Compilation and interpretation of the project dataset is centered approximately 500 metres from the southern limit of the ultimate open pit (refer to Figure 4), where a broader alteration halo hosting gold mineralization has been intersected along strike of historical drill hole intervals with similar alteration/mineralization. A follow-up drilling program for a total of 2,000 metres is planned to begin in the fourth quarter of 2022 and completed by year end. Additional exploration activities inclusive of geological mapping and rock and soil sampling are progressing within the broader Rainy River mineral tenures, with the objective to define prospective areas for gold mineralization and further define new drill ready targets.

New Gold is a Canadian-focused intermediate mining company with a portfolio of two core producing assets in Canada, the Rainy River gold mine and the New Afton copper-gold mine. The Company also holds approximately 5% equity stake in Artemis Gold Inc., and other Canadian-focused investments. New Gold's vision is to build a leading diversified intermediate gold company based in Canada that is committed to the environment and social responsibility. For further information on the Company, visit www.newgold.com.

Certain information contained in this news release, including any information relating to New Gold's future financial or operating performance are "forward-looking". All statements in this news release, other than statements of historical fact, which address events, results, outcomes or developments that New Gold expects to occur are "forward-looking statements". Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "scheduled", "targeted", "estimates", "forecasts", "intends", "anticipates", "projects", "potential", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur" or "be achieved" or the negative connotation of such terms. Forward-looking statements in this news release include, among others, statements with respect to: planned focus areas and initiatives regarding New Afton's underground exploration program; the continued return from the East Extension of gold and copper assay results above current grades and the potential to bring additional higher-grade reserves into the mine plan in the near-to mid-term; the intention to incorporate drilling program results into the 2022 year-end New Afton Mineral Resource estimate; the intended plans for and potential opportunities relating to resources, grades and mineralization resulting from the underground East Extension; planned additional underground drilling at New Afton and expected timing for completion; anticipated timing for completion of the reconnaissance drilling program at New Afton; the planned follow-up drilling program at Rainy River and expected timing for completion; and proposed exploration activities at New Afton and Rainy River and the objectives thereof.

All forward-looking statements in this news release are based on the opinions and estimates of management that, while considered reasonable as at the date of this press release in light of management's experience and perception of current conditions and expected developments, are inherently subject to important risk factors and uncertainties, many of which are beyond New Gold's ability to control or predict. Certain material assumptions regarding such forward-looking statements are discussed in this news release, New Gold's latest annual MD&A, its most recent annual information form and technical reports on the Rainy River Mine and New Afton Mine filed on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. In addition to, and subject to, such assumptions discussed in more detail elsewhere, the forward-looking statements in this news release are also subject to the following assumptions: (1) there being no significant disruptions affecting New Gold's operations other than as set out herein; (2) political and legal developments in jurisdictions where New Gold operates, or may in the future operate, being consistent with New Gold's current expectations; (3) the accuracy of New Gold's current Mineral Reserve and Mineral Resource estimates and the grade of gold, silver and copper expected to be mined and the grade of gold, copper and silver expected to be mined; (4) the exchange rate between the Canadian dollar and U.S. dollar, and to a lesser extent, the Mexican Peso, and commodity prices being approximately consistent with current levels and expectations for the purposes of 2022 guidance and otherwise; (5) prices for diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; (6) equipment, labour and materials costs increasing on a basis consistent with New Gold's current expectations; (7) arrangements with First Nations and other Aboriginal groups in respect of the New Afton Mine and Rainy River Mine being consistent with New Gold's current expectations; (8) all required permits, licenses and authorizations being obtained from the relevant governments and other relevant stakeholders within the expected timelines and the absence of material negative comments or obstacles during any applicable regulatory processes; (9) there being no significant disruptions to the Company's workforce at either the Rainy River Mine or New Afton Mine due to cases of COVID-19 (including any required self-isolation requirements due to cross-border travel to the United States or any other country or any other reason) or otherwise; (10) the responses of the relevant governments to the COVID-19 outbreak being sufficient to contain the impact of the COVID-19 outbreak; (11) there being no material disruption to the Company's supply chains and workforce that would interfere with the Company's anticipated course of action at the Rainy River Mine and the New Afton Mine; and (12) the long-term economic effects of the COVID-19 outbreak not having a material adverse impact on the Company's operations or liquidity position.

Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, without limitation: price volatility in the spot and forward markets for metals and other commodities; discrepancies between actual and estimated production, between actual and estimated costs, between actual and estimated Mineral Reserves and Mineral Resources and between actual and estimated metallurgical recoveries; equipment malfunction, failure or unavailability; accidents; risks related to early production at the Rainy River Mine, including failure of equipment, machinery, the process circuit or other processes to perform as designed or intended; the speculative nature of mineral exploration and development, including the risks of obtaining and maintaining the validity and enforceability of the necessary licenses and permits and complying with the permitting requirements of each jurisdiction in which New Gold operates, including, but not limited to: obtaining the necessary permits for the New Afton C-Zone; uncertainties and unanticipated delays associated with obtaining and maintaining necessary licenses, permits and authorizations and complying with permitting requirements, including those associated with the C-Zone permitting process; changes in project parameters as plans continue to be refined; changing costs, timelines and development schedules as it relates to construction; the Company not being able to complete its construction projects at the Rainy River Mine or the New Afton Mine on the anticipated timeline or at all; volatility in the market price of the Company's securities; changes in national and local government legislation in the countries in which New Gold does or may in the future carry on business; controls, regulations and political or economic developments in the countries in which New Gold does or may in the future carry on business; the Company's dependence on the Rainy River Mine and New Afton Mine; the Company not being able to complete its exploration drilling programs on the anticipated timeline or at all; disruptions to the Company's workforce at either the Rainy River Mine or the New Afton Mine, or both, due to cases of COVID-19 or any required self-isolation (due to cross-border travel, exposure to a case of COVID-19 or otherwise); the responses of the relevant governments to the COVID-19 outbreak not being sufficient to contain the impact of the COVID-19 outbreak; disruptions to the Company's supply chain and workforce due to the COVID-19 outbreak; an economic recession or downturn as a result of the COVID-19 outbreak that materially adversely affects the Company's operations or liquidity position; there being further shutdowns at the Rainy River Mine or New Afton Mine; significant capital requirements and the availability and management of capital resources; additional funding requirements; diminishing quantities or grades of Mineral Reserves and Mineral Resources; actual results of current exploration or reclamation activities; uncertainties inherent to mining economic studies including the Technical Reports for the Rainy River Mine and New Afton Mine; impairment; unexpected delays and costs inherent to consulting and accommodating rights of First Nations and other indigenous groups; climate change, environmental risks and hazards and the Company's response thereto; tailings dam and structure failures; actual results of current exploration or reclamation activities; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States and, to a lesser extent, Mexico; global economic and financial conditions and any global or local natural events that may impede the economy or New Gold's ability to carry on business in the normal course; compliance with debt obligations and maintaining sufficient liquidity; taxation; fluctuation in treatment and refining charges; transportation and processing of unrefined products; rising costs or availability of labour, supplies, fuel and equipment; adequate infrastructure; relationships with communities, governments and other stakeholders; geotechnical instability and conditions; labour disputes; the uncertainties inherent in current and future legal challenges to which New Gold is or may become a party; defective title to mineral claims or property or contests over claims to mineral properties; competition; loss of, or inability to attract, key employees; use of derivative products and hedging transactions; counterparty risk and the performance of third party service providers; investment risks and uncertainty relating to the value of equity investments in public companies held by the Company from time to time; the adequacy of internal and disclosure controls; conflicts of interest; the lack of certainty with respect to foreign operations and legal systems, which may not be immune from the influence of political pressure, corruption or other factors that are inconsistent with the rule of law; the successful acquisitions and integration of business arrangements and realizing the intended benefits therefrom; and information systems security threats. In addition, there are risks and hazards associated with the business of mineral exploration, development, construction, operation and mining, including environmental events and hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance to cover these risks) as well as "Risk Factors" included in New Gold's most recent annual information form, MD&A and other disclosure documents filed on and available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. Forward looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. All forward-looking statements contained in this news release are qualified by these cautionary statements. New Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.

New Gold maintains a Quality Assurance / Quality Control ("QA/QC") program at its New Afton Mine operation using industry best practices and is consistent with the QA/QC protocols in use at all of the Company's exploration and development projects. Key elements of New Gold's QA/QC program include chain of custody of samples, regular insertion of certified reference standards and blanks, and duplicate check assays. Drill core is sampled at regular two metre intervals, halved and shipped in sealed bags to Activation Laboratories Ltd. in Kamloops, British Columbia. Additional information regarding the Company's data verification and quality assurance processes is set out in the February 28, 2020 New Afton National Instrument 43-101 Technical Report titled "Technical Report on the New Afton Mine, British Columbia, Canada" available on SEDAR at www.sedar.com.

The scientific and technical information relating to the Mineral Resources contained herein has been reviewed and approved by Michele Della Libera, Director, Exploration for the Company. All other scientific and technical information contained in this news release has been reviewed and approved by Patrick Godin, Executive Vice President and Chief Operating Officer of New Gold. Mr. Della Libera is a Professional Geologist and a member of the Association of Professional Geoscientists of Ontario and the Engineers and Geoscientists British Columbia. Mr. Godin is a Professional Engineer and member of the Ordre des ingénieurs du Québec. Mr. Della Libera and Mr. Godin are each a "Qualified Person" for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

For additional technical information on New Gold's material properties, including a detailed breakdown of Mineral Reserves and Mineral Resources by category, as well as key assumptions, parameters, and risks, refer to New Gold's most recent annual information form filed and available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

Figure 1: New Afton Mine long section with target locations and complete drill hole traces

Figure 2: New Afton Mine planview showing infill drill holes completed and copper and gold value intercepts within the East Extension higher-grade target area

Figure 3: Isometric view looking northeast across the New Afton Mine East Extension target areas

Figure 4: Rainy River Exploration - Pinewood South Target Location on Geology map with ultimate pit boundary and surface projective of known ore lenses

Table 2: New Afton Mine East Extension Drill Assay Summary