Name: Cerro San Pedro mine.

Location: The Cerro San Pedro mine is situated 20 km north-east of San Luis Potosí, Central Mexico.

Controlling Company: New Gold (100%).

Brief history: Mining activity dates back to the early 1950s. Renewed interest in the Cerro San Pedro district began in the 1970s with evaluations by various companies to determine the district's potential for large tonnage, low-grade, bulk-mineable deposits. Metallica Resources acquired an option to purchase the Cerro San Pedro project in 1995 and began an exploration programme to expand the work of recent exploration programmes conducted by other companies. In January 1998, Cambior Inc entered into an agreement with Metallica Resources to acquire a 50% interest in the project. In May 2000, Cambior sold its 50% interest to Glamis Gold. In February 2003, Metallica Resources purchased Glamis' 50% interest in the project. The mine realised its first gold sale in May of 2007. In May 2008, Metallica Resources, New Gold, and Peak Gold merged under the banner of New Gold Inc. Mining operations were suspended as of November 2009.

Brief Description: Cerro San Pedro produced 144 000 oz of gold and 2-million ounces of silver in 2011.
Mining method: Openpit.

Products: Gold.
Major infrastructure and equipment: The processing facilities consist of a heap-leach pad and a conventional Merrill-Crowe gold and silver recovery plant.

Reserves: Total proven and probable reserves as at December 31, 2011, were 59.24-million tons, with a grading of 0.53 g/t of gold and 15.98 g/t of silver.

Resources: Total measured and indicated resources as at December 31, 2011, were 60.01-million tons, with a grading of 0.47 g/t of gold and 10.98 g/t of silver.

Geology/Mineralisation: The Cerro San Pedro mining district is located within the Parras Nappe section of the Eastern Sierra Madre fold belt. The local stratigraphic section is dominated by Cretaceous age limestones.

The Cerro San Pedro deposit is characterised by an upper zone of gold/silver mineralisation, associated with secondary limonitic iron oxides and a lower zone of gold/silver/zinc/lead sulphide mineralisation hosted by a late Cretaceous to early Tertiary age monzodiorite porphyry. The porphyry intrudes Cretaceous limestones subjected to Laramide folding and faulting.

The majority of the current mineral resource and reserves are contained within the upper oxide portion of the Cerro San Pedro deposit. A deeper assemblage of higher-grade gold, silver, zinc and lead-bearing massive sulphide mineralisation has been mined previously from underground and is the focus of current exploration efforts at Cerro San Pedro.

Prospects: The Cerro San Pedro sulphide project, though still in its early stages, can potentially extend the life of the Cerro San Pedro mine through the development of a gold/silver/zinc/lead sulphide mineral resource, amenable to a combination of openpit and underground mining and sulphide-flotation process methods. Exploration is currently focusing on the portion of the sulphide zone, as it extends from beneath the gold-silver oxide pit toward the area of historic underground mining 500 m to the south.

Contact person: Media and communications, Julie Taylor.

Contact details:
New Gold Inc,
Tel +1 416  324 6015
Fax +1 416 324 9494
Email julie.taylor@newgold.com
Website www.newgold.com.