(All dollar figures are in US dollars unless otherwise indicated)

December 23, 2020– New Gold Inc. (“New Gold” or the “Company”) (TSX and NYSE American: NGD) today announced that it has completed the previously announced partial redemption of $200 million aggregate principal amount of its outstanding 6.375% Senior Notes due 2025. The redemption was funded with cash on hand.

Following the completion of the transaction, the Company has approximately $205 million of cash on hand1 and $510 million of liquidity2.

  1. Based on cash and cash equivalents as at September 30, 2020 of $416 million less redemption principal, redemption premium, and accrued interest.
  2. Approximately $45 million of the $350 million credit facility is currently used for Letters of Credit related to mine closure costs.

About New Gold Inc.

New Gold is a Canadian-focused intermediate gold mining company with a portfolio of two core producing assets in Canada, the Rainy River and New Afton Mines. The Company also holds an 8% gold stream on the Artemis Gold Blackwater project located in British Columbia and a 6% equity stake in Artemis. The Company also operates the Cerro San Pedro Mine in Mexico (in reclamation). New Gold's vision is to build a leading diversified intermediate gold company based in Canada that is committed to environment and social responsibility. For further information on the Company, visit www.newgold.com.

Anne Day Vice President, Investor Relations Direct: +1 (416) 324 6003 Email: anne.day@newgold.com