New Gold Reports Resumption of Surface Operations at the New Afton Mine

Rhea-AI Summary

February 5, 2021 - New Gold Inc. (NGD) has resumed surface operations at the New Afton Mine in Kamloops, B.C., following a mud-rush incident on February 2, 2021. The mill and tailings operations restarted, currently processing ore from stockpiles. No infrastructure was damaged, and construction on the Thickened and Amended Tailings Facility has resumed. Plans are in place to safely restart underground mining operations, though these remain suspended. New Gold prioritizes the health and safety of its workers during this phase.

Positive

• Resumed surface operations at New Afton Mine, ensuring continued productivity.
• No damage reported to surface infrastructure, allowing for rapid operational recovery.
• Mill facility processing ore from live and intermediate-grade stockpiles.

Negative

• Underground mining operations remain suspended due to the mud-rush incident.
• The isolated recovery area where the mud-rush occurred will remain closed until it is safe.

February 5, 2021- New Gold Inc. (“New Gold” or the “Company”) (TSX and NYSE American: NGD) announces that, while ensuring the health, safety and wellbeing of our employees and contractors, surface operations have resumed at the New Afton Mine, located in Kamloops, B.C.

The mill facility and tailings operations were restarted yesterday afternoon local time and the mill is currently processing ore from the live pile and intermediate-grade surface stockpile.

No surface infrastructure was impacted by the underground mud-rush incident that occurred on February 2, 2021. Construction of the Thickened and Amended Tailings Facility and stabilization efforts have resumed, and over the coming days the remaining surface operations will be ramped up systemically.

While the underground operations remain suspended, New Afton is working with the Ministry of Energy, Mines and Low Carbon Innovation on a plan to safely and sequentially resume underground mining operations, including the development of the B3 and C-Zone. The isolated recovery area where the mud-rush occurred will remain closed until it is safe to resume operations in that area.

“I would like to take this opportunity to thank the whole team at New Afton for their dedication and tireless efforts during this difficult time,” stated Renaud Adams, President and Chief Executive Officer. “As we move forward, the health, safety and wellbeing of everyone who works at New Gold will remain our highest priority.”

The mud-rush was localized underneath the Lift 1 cave in the isolated recovery zone area, which does not interact with the other areas of the mine, including the B3 and C-Zone areas.

Additional details will continue to be provided via a news release as they become available.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210205005082/en/

FAQ

What recent developments have occurred at New Gold Inc. (NGD) regarding the New Afton Mine?

New Gold Inc. has resumed surface operations at the New Afton Mine after a mud-rush incident, with the mill processing ore from stockpiles.

How has the mud-rush incident affected operations at New Gold's New Afton Mine?

The incident did not impact surface infrastructure, but underground operations remain suspended while safety plans are developed.

Is New Gold Inc. (NGD) planning to resume underground mining operations?

Yes, New Gold is working on a plan to safely resume underground mining operations at the New Afton Mine.

What steps is New Gold (NGD) taking to ensure safety after the mud-rush?

New Gold is prioritizing the health and safety of its employees and is collaborating with the Ministry of Energy, Mines, and Low Carbon Innovation to ensure safe operations.