New Gold Inc. (“New Gold” or the “Company”) is an intermediate gold mining company engaged in the development and operation of mineral properties. The assets of the Company, directly or through its subsidiaries, are comprised of the New Afton Mine in British Columbia, Canada (“New Afton”) and the Rainy River Mine in Ontario, Canada (“Rainy River”).

The Company is a corporation governed by the Business Corporations Act (British Columbia). The Company’s shares are listed on the Toronto Stock Exchange and the NYSE American under the symbol NGD. The Company’s registered office is located at 925 West Georgia Street, Suite 1600, Vancouver, British Columbia, V6C 3L2, Canada. The Company's head office is located at 181 Bay Street, Suite 3320, Toronto, Ontario M5J 2T3.

These unaudited condensed interim consolidated financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting, as issued by the International Accounting Standards Board on a basis consistent with the accounting policies disclosed in the Company’s audited consolidated financial statements for the year ended December 31, 2024 which includes information necessary or useful to understanding the Company's business and financial statement presentation.

In particular, the Company's accounting policies are presented as Note 2 in the audited consolidated financial statements for the year ended December 31, 2024 and have been consistently applied in the preparation of these unaudited condensed interim consolidated financial statements.

These consolidated financial statements were approved by the Board of Directors of the Company on April 29, 2025.

1.In 2024, the Company entered into an Amending agreement with Ontario Teachers Pension Plan ("Ontario Teachers") to reduce the cash flow interest. The consideration for the disposal included a contingent obligation of $20.0 million to Ontario Teachers should there be a change of control of New Gold prior to January 2026.

2.Represents the Company's obligation to Ontario's Teachers for 19.9% of New Afton's free cash flow for the quarter ended March 31, 2025.

1.The amount of inventories recognized in operating expenses for the three months ended March 31, 2025 was $99.9 million (2024 - $103.0).

1.In 2024, transfers to depletable included $232.3 million related to C-Zone development as a result of achieving commercial production at C-Zone in October 2024.

2.In 2024, the Company entered into an Amending Agreement with Ontario Teachers which was determined for accounting purposes to be a partial disposal of mineral property of a net book value of $272.2 million.

1.Other includes Cerro San Pedro ("CSP") and corporate balances.

1.Other includes CSP and corporate balances.

Long-term debt consists of the following:

			As at March 31			As at December 31
(in millions of U.S. dollars)			2025			2024
LONG-TERM DEBT
Senior unsecured notes - due April 1, 2032 (a)			393.7			—
Senior unsecured notes - due July 15, 2027 (b)			110.4			397.0
Credit Facility (c)			—			—
Total long-term debt			504.1			397.0

method.

The 2032 Unsecured Notes are redeemable by the Company in whole or in part during the 12 month period beginning on April 1 of the years indicated at the redemption prices below, expressed as a percentage of the principal amount of the 2032 Unsecured Notes to be redeemed, plus accrued and unpaid interest, if any, to the redemption date:

The 2027 Unsecured Notes are subject to a minimum interest coverage incurrence covenant of earnings before interest, taxes, depreciation, amortization, impairment and other non-cash adjustments to interest of 2:1. The test is applied on a pro-forma basis prior to the Company incurring additional debt, entering into business combinations or acquiring significant assets, or certain other corporate actions. There are no maintenance covenants.

The 2027 Unsecured Notes are redeemable by the Company in whole or in part during the 12 month period beginning on July 15 of the years indicated at the redemption prices below, expressed as a percentage of the principal amount of the 2027 Unsecured Notes to be redeemed, plus accrued and unpaid interest, if any, to the redemption date:

•The minimum interest coverage ratio, being earnings before interest, taxes, depreciation, amortization, exploration, impairment, and other non-cash adjustments (“Adjusted EBITDA”) to interest;

•The maximum net debt to Adjusted EBITDA ratio (“Leverage Ratio”); and

•The maximum gross secured debt to Adjusted EBITDA (“Secured Leverage Ratio”).

Significant financial covenants are as follows:

						Twelve months ended March 31			Twelve months ended December 31
Financial Covenant						2025			2024
FINANCIAL COVENANTS
Minimum interest coverage ratio (Adjusted EBITDA to interest)			>3.0 : 1.0			11.7 : 1			11.0 : 1
Maximum leverage ratio (net debt to Adjusted EBITDA)			<4.5 : 1.0			1.0 : 1			1.1 : 1
Maximum secured leverage ratio (secured debt to Adjusted EBITDA)			<2.0 : 1.0			0.1 : 1			0.1 : 1

The interest margin on drawings under the Credit Facility ranges from 1.00% to 3.25% over term-adjusted SOFR, the Prime Rate or the Base Rate based on the Company’s Leverage Ratio, and the currency and type of credit selected by the Company. Based on the Company’s Leverage Ratio, the rate is 2.25% over term-adjusted SOFR as at March 31, 2025 (December 31, 2024 – 2.50% over term-adjusted SOFR). The standby fees on undrawn amounts under the Credit Facility range from 0.45% to 0.73% over SOFR, depending on the Company’s Leverage Ratio. Based on the Company’s Leverage Ratio, the rate is 0.51% over SOFR as at March 31, 2025 (December 31, 2024 – 0.56% over SOFR).

As at March 31, 2025, $nil had been drawn under the Credit Facility (December 31, 2024 $nil). The Credit Facility has been used to issue letters of credit amounting to $23.3 million (December 31, 2024 - $23.3 million). Letters of credit relate to reclamation bonds, and other financial assurances required with various government agencies.

14 WWW.NEWGOLD.COM TSX:NGD NYSE American:NGD The following is a summary of the change in non-current derivative financial liabilities: (in millions of U.S. dollars) Rainy River New Afton TOTAL CHANGE IN NON-CURRENT DERIVATIVE FINANCIAL LIABILITIES Balance, December 31, 2023 199.9 543.4 743.3 Settlements during the period (33.1) — (33.1) Fair value adjustments related to changes in the Company’s own credit risk(1) (1.2) 12.2 11.0 Other fair value adjustments(2) 51.6 79.0 130.6 Extinguishment of New Afton free cash flow interest obligation(3) — (634.6) (634.6) Balance, December 31, 2024 217.2 — 217.2 Less: current portion(4) (42.6) — (42.6) Non-current portion of derivative financial liabilities 174.6 — 174.6 Balance, December 31, 2024 217.2 — 217.2 Settlements during the period(5) (6.3) — (6.3) Fair value adjustments related to changes in the Company’s own credit risk(1) 3.0 — 3.0 Other fair value adjustments(2) 25.8 — 25.8 Balance, March 31, 2025 239.7 — 239.7 Less: current portion(4) (56.7) — (56.7) Non-current portion of derivative financial liabilities 183.0 — 183.0

1.Fair value adjustments related to changes in the Company’s own credit risk are included in other comprehensive income (loss).

2.Other fair value adjustments are included in Other Losses in the condensed interim consolidated income statements.

3.In 2024, the Company entered into an Amending Agreement with Ontario Teachers which resulted in a derecognition of the Fair Value Through Profit or Loss ("FVTPL) liability during the second quarter of 2024.

4.The current portion of the derivative financial liabilities is included in trade and other payables on the condensed interim statement of financial position.

5.Settlements during the period are on an accrual basis. During the three months ended March 31, 2025, the Company paid $6.3 million in cash towards settlements of the Rainy River gold stream obligation.

In 2015, the Company entered into a $175 million streaming transaction with RGLD Gold AG, a wholly owned subsidiary of Royal Gold Inc ("Royal Gold"). Under the terms of the agreement, the Company will deliver to Royal Gold 6.5% of gold production from Rainy River up to a total of 230,000 ounces of gold and then 3.25% of the mine’s gold production thereafter. The Company will also deliver to Royal Gold 60% of the mine’s silver production to a maximum of 3.1 million ounces and then 30% of silver production thereafter.

In addition to the upfront $175.0 million deposit, Royal Gold will pay 25% of the average spot gold or silver price at the time each ounce of gold or silver is delivered under the stream. The difference between the spot price of metal and the cash received from Royal Gold will reduce the $175.0 million deposit over the life of the mine. As at March 31, 2025, there is no outstanding balance remaining on the $175.0 million deposit.

The Company has designated the Rainy River gold stream obligation as a FVTPL under the scope of IFRS 9. Accordingly, the Company values the liability at the present value of its expected future cash

Fair value adjustments represent the net effect on the Rainy River gold stream obligation of changes in the variables included in the Company’s valuation model between the date of receipt of deposit and the reporting date.

Components of the adjustment to fair value for the non-current derivative financial liabilities at each reporting date include:

The Company leases assets such as buildings, mobile equipment, and machinery. These assets are included in Mining Interests on the condensed consolidated interim statement of financial position and are classified as plant & equipment as per Note 7 of the Company’s condensed interim consolidated financial statements.

1.2024 transfers of right-of-use assets (net of accumulated depreciation) from leased to owned.

16 WWW.NEWGOLD.COM TSX:NGD NYSE American:NGD See below for a maturity analysis of the Company’s lease payments: As at March 31 As at December 31 (in millions of U.S. dollars) 2025 2024 MATURITY ANALYSIS FOR LEASES Less than 1 year 3.5 0.6 Between 1 and 3 years 1.4 1.2 Between 3 and 5 years 0.8 0.9 Total undiscounted lease payments(1) 5.7 2.7 Carrying value of lease liabilities 5.2 2.7 Less: current portion of lease liabilities(2) (3.4) (0.7) Non-current portion of lease liabilities 1.8 2.0

1.Total undiscounted lease payments excludes leases that are classified as short term and leases for low value assets, which are not recognized as lease liabilities.

2.The current portion of the lease liabilities is included in trade and other payables on the statement of financial position.

For the three months ended March 31, 2025, the Company recognized $0.1 million (2024 - $0.1 million) in interest expense on lease liabilities.

For the three months ended March 31, 2025, the Company expensed $0.9 million (2024 - $3.8 million) related to leases that are classified as short term.

1.Foreign exchange forward contracts are included within trade and other payables in the condensed interim consolidated statement of financial position.

2.Fuel hedge swap contracts are included within prepaid expenses and other in the condensed interim consolidated statement of financial position.

3.Unsettled provisionally priced concentrate derivatives are included within trade and other receivables in the condensed interim consolidated statement of financial position.

The Company had provisionally priced sales for which price finalization is outstanding at March 31, 2025. Realized and unrealized gains (losses) on the provisional pricing of concentrate sales are classified as revenue, with the unsettled provisionally priced concentrate derivatives included in trade and other receivables. The Company enters into gold and copper swap contracts to reduce exposure to gold and copper prices. Realized and unrealized gains (losses) are recorded in revenue, with the unsettled gold and copper swaps included in trade and other receivables.

17 WWW.NEWGOLD.COM TSX:NGD NYSE American:NGD The following tables summarize the realized and unrealized gains on provisionally priced sales: Three months ended March 31, 2025 (in millions of U.S. dollars) Gold Copper Total GAIN ON THE PROVISIONAL PRICING OF CONCENTRATE SALES Realized 2.7 2.8 5.5 Unrealized 3.1 — 3.1 Total gain 5.8 2.8 8.6

The following tables summarize the realized and unrealized losses on gold and copper swap contracts:

						Three months ended March 31, 2025
(in millions of U.S. dollars)												Gold			Copper			Total
LOSS ON SWAP CONTRACTS
Realized												(1.6)			(1.6)			(3.2)
Unrealized												(3.7)			(1.4)			(5.1)
Total loss												(5.3)			(3.0)			(8.3)

The following table summarizes the net exposure to the impact of movements in market commodity prices for provisionally priced sales:

			As at March 31			As at December 31
			2025			2024
VOLUMES SUBJECT TO FINAL PRICING NET OF OUTSTANDING SWAPS
Gold ounces (000s)			1.8			0.8
Copper pounds (millions)			0.7			0.4

The Company entered into foreign exchange forward contracts in order to hedge operating costs at the New Afton and Rainy River mines. These contracts are treated as derivative financial instruments and marked-to-market at each reporting period on the consolidated statement of financial position with

Realized gains and losses are recorded within operating expenses.

The Company entered into foreign exchange forward contracts hedging an average of C$43.5 million per month during the first half of 2025, and C$15.0 million per month for the third quarter of 2025. As at March 31, 2025, the fair value of the unrealized foreign exchange forward contract liabilities were $2.7 million (December 31, 2024 - $5.3 million forward contract liabilities).

The Company entered into diesel fuel hedge swap contracts for the Rainy River Mine in order to reduce exposure to volatile fuel prices. These contracts are treated as derivative financial instruments and marked to market at each reporting period on the consolidated statement of financial position with changes in fair value recognized in other gains and losses. Realized gains and losses are recorded within operating expenses.

The Company hedged an average of 0.7 million gallons per month during the first half of 2025 and 0.2 million gallons for the third quarter of 2025. As at March 31, 2025, the fair value of the unrealized fuel hedge swap contract assets were $0.1 million (December 31, 2024 - $0.1 million).

Changes to the reclamation and closure cost obligations are as follows:

(in millions of U.S. dollars)			New Afton			Rainy River			Cerro San Pedro			Total
CHANGES TO RECLAMATION AND CLOSURE COST OBLIGATIONS
Balance – December 31, 2023			33.1			91.0			0.1			124.2
Reclamation expenditures			—			(0.4)			(0.1)			(0.5)
Unwinding of discount			0.9			2.7			—			3.6
Revisions to expected cash flows			3.1			(1.2)						1.9
Foreign exchange movement			(2.7)			(7.1)						(9.8)
Balance – December 31, 2024			34.4			85.0			—			119.4
Less: current portion of closure costs (Note 5)			(0.3)			(1.3)			—			(1.6)
Non-current portion of closure costs			34.1			83.7			—			117.8
Balance – December 31, 2024			34.4			85.0						119.4
Reclamation expenditures			—			(0.1)			—			(0.1)
Unwinding of discount			0.3			0.7			—			1.0
Revisions to expected cash flows			1.0			2.5			—			3.5
Foreign exchange movement			—			0.1			—			0.1
Balance – March 31, 2025			35.7			88.2			—			123.9
Less: current portion of closure costs (Note 5)			(0.7)			(3.4)			—			(4.1)
Non-current portion of closure costs			35.0			84.8			—			119.8

1.In May 2024, the Company completed an equity issuance of 100,395,000 common shares at a price of $1.72 per common share for gross proceeds of $172.7 million. Transaction costs amounted to $8.1 million and have been netted against the gross proceeds of the equity issuance.

The following table summarizes share-based payment expenses:

						Three months ended March 31
(in millions of U.S. dollars)									2025			2024
SHARE-BASED PAYMENT EXPENSES
Stock option expense									—			0.1
Performance share unit expense									0.5			0.2
Restricted share unit expense									3.6			1.4
Deferred share unit expense									1.5			—
Shares issued under First Nations agreements									0.4			0.2
Total share-based payment expenses									6.0			1.9
Less: included within operating expenses									(1.5)			(1.1)
Share-based payment expenses									4.5			0.8

20 WWW.NEWGOLD.COM TSX:NGD NYSE American:NGD The following table presents changes in the Company’s stock option plan: Number of options Weighted average exercise price (000s) C$/share CHANGES TO THE COMPANY'S STOCK OPTION PLAN Balance at December 31, 2023 1,730 1.93 Exercised (936) 1.85 Forfeited (307) 2.03 Expired (30) 1.81 Balance at December 31, 2024 457 2.04 Exercised (65) 1.45 Forfeited (8) 2.18 Balance at March 31, 2025 384 2.13

The following table sets out the calculation of loss per share:

						Three months ended March 31
(in millions of U.S. dollars, except where noted)									2025			2024
CALCULATION OF LOSS PER SHARE
Net loss									(16.7)			(43.5)
Basic weighted average number of shares outstanding (in millions)									791.2			687.6
Dilution of securities:
Stock options, deferred share units, performance share units									—			—
Diluted weighted average number of shares outstanding (in millions)									791.2			687.6
Net loss per share:
Basic									(0.02)			(0.06)
Diluted									(0.02)			(0.06)

The following table lists the equity securities excluded from the calculation of diluted loss per share. All stock options, deferred share units, and performance share units are excluded from the calculation when the Company is in a net loss position.

						Three months ended March 31
(in millions of units)									2025			2024
EQUITY SECURITIES EXCLUDED FROM THE CALCULATION OF DILUTED EARNINGS (LOSS) PER SHARE
Stock options, performance share units, deferred share units									6.3			6.1

21 WWW.NEWGOLD.COM TSX:NGD NYSE American:NGD The following table outlines the composition of income tax expense between current tax and deferred tax: Three months ended March 31 (in millions of U.S. dollars) 2025 2024 Current income and mining tax expense 0.9 0.5 Deferred income and mining tax expense 1.9 2.5 Total income tax expense 2.8 3.0

Supplemental cash flow information (included within operating activities) is as follows:

						Three months ended March 31
(in millions of U.S. dollars)									2025			2024
CHANGE IN NON-CASH OPERATING WORKING CAPITAL
Trade and other receivables									13.9			3.4
Inventories									3.5			(2.6)
Prepaid expenses and other									8.7			0.6
Trade and other payables									(8.6)			(19.2)
Total change in non-cash operating working capital									17.5			(17.8)

Earnings (loss) from operations of reportable operating segments are reviewed by the Company's chief operating decision maker to make decisions about resources to be allocated to the segments and to assess their performance. The results from operations for these reportable operating segments are summarized in the following tables:

1.Other includes corporate balances and CSP.

2.Segmented revenue reported above represents revenue generated from external customers. There were no inter-segment sales in the three months ended March 31, 2025.

3.In March 2025, the Company recognized a restructuring charge of $3.3 million in severance and other termination benefits related to changes at the executive leadership level of the organization.

1.Other includes corporate balances and CSP.

2.Segmented revenue reported above represents revenue generated from external customers. There were no inter-segment sales in the three months ended March 31, 2024.

3.Exploration and business development includes BC Exploration tax credits of $3.2 million received in the three months ended March 31, 2024.

The following table presents the segmented assets and liabilities:

						Total assets			Total liabilities												Capital expenditures(1)
			As at March 31			As at December 31			As at March 31			As at December 31						Three months ended March 31
(in millions of U.S. dollars)			2025			2024			2025			2024									2025			2024
SEGMENTED ASSETS AND LIABILITIES
New Afton			907.7			923.1			162.1			147.1									24.0			31.5
Rainy River			995.7			985.9			388.5			361.1									51.2			29.6
Other (2)			215.0			94.8			534.5			443.2									—			—
Total segmented assets, liabilities and capital expenditures			2,118.4			2,003.8			1,085.1			951.5									75.2			61.1

1.Capital expenditures per consolidated statement of cash flows.

2.Other includes corporate balances and CSP.

Fair value is the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In assessing the fair value of a particular contract, the market participant would consider the credit risk of the counterparty to the contract. Consequently, when it is appropriate to do so, the Company adjusts the valuation models to incorporate a measure of credit risk. Fair value represents management's estimates of the current market value at a given point in time.

The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (for example, interest rate and yield curves observable at commonly quoted intervals, forward pricing curves used to value currency and commodity contracts), or inputs that are derived principally from, or corroborated by, observable market data or other means. Level 3 inputs are unobservable (supported by little or no market activity). The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. There were no transfers among Levels 1, 2, and 3 during the three months ended March 31, 2025 or the year ended December 31, 2024. The Company’s policy is to recognize transfers into and transfers out of fair value hierarchy levels as of the date of the event or change in circumstances that caused the transfer.

Investments

The fair value of the investments are measured based on the investee's closing share price on the reporting date.

Provisionally priced contracts and gold and copper swap contracts

The fair value of the provisionally priced contracts and the gold and copper swap contracts is calculated using the mark-to-market forward prices of London Metals Exchange gold and copper based on the applicable settlement dates of the outstanding provisionally priced contracts and copper swap contracts.

Foreign exchange forward contracts

The fair value of foreign exchange forward contracts is calculated using the mark-to-market method based on the difference between the forward Canadian dollar to U.S dollar foreign exchange rate and the foreign exchange rates of the contracts.

The fair value of the fuel hedge swap contracts is calculated using the mark-to-market forward prices of diesel, based on the applicable settlement dates of the outstanding swap contracts.

Rainy River gold stream obligation

The fair value of the Rainy River gold stream obligation is calculated using the risk-free interest rate derived from the U.S. Treasury rate, forward and consensus metal prices, company specific credit spread based on the yield on the Company’s 2032 Senior Unsecured Notes, and expected gold and silver ounces to be delivered from Rainy River’s life of mine projections.

The following table summarizes the Company’s financial assets and liabilities by category and information about financial assets and liabilities measured at fair value on a recurring basis in the statement of financial position categorized by level of significance of the inputs used in making the measurements:

1.Trade and other receivables exclude provisionally priced contracts, and gold and copper swap contracts.

2.Trade and other payables exclude the short-term portion of reclamation and closure cost obligation, the Rainy River gold stream obligation, and current derivative liabilities.

The carrying values and fair values of the Company’s financial instruments are as follows:

As at March 31, 2025									As at December 31, 2024
(in millions of U.S. dollars)			Carrying value			Fair value			Carrying value			Fair value
FINANCIAL ASSETS
Cash and cash equivalents			212.8			212.8			105.2			105.2
Trade and other receivables(1)			12.4			12.4			25.0			25.0
Provisionally priced contracts			3.1			3.1			(0.5)			(0.5)
Gold and copper swap contracts			(5.1)			(5.1)			1.7			1.7
Foreign exchange forward contracts			0.1			0.1			—			—
Investments			6.8			6.8			5.1			5.1
FINANCIAL LIABILITIES
Trade and other payables(2)			145.5			145.5			151.9			151.9
Long-term debt			504.1			518.8			397.0			404.0
Foreign exchange forward contracts			2.7			2.7			5.3			5.3
Fuel hedge swap contracts			—			—			—			—
Rainy River gold stream obligation			239.7			239.7			217.2			217.2

1.Trade and other receivables exclude provisionally priced contracts and gold and copper swap contracts.

2.Trade and other payables exclude the short-term portion of reclamation and closure cost obligation, the Rainy River gold stream obligation, and current derivative liabilities.

18. Commitments

19. Subsequent Events

In April 2025, the Company announced that it has entered into an agreement with Ontario Teachers to acquire the remaining 19.9% free cash flow interest in the Company's New Afton Mine ("the Transaction").

On closing of the Transaction, Ontario Teachers' free cash flow interest in New Afton will be fully eliminated in exchange for a cash payment of $300.0 million from New Gold. New Gold plans to fund the cash payment with cash on hand, borrowings from its existing revolving credit facility and a gold prepayment financing.

At closing, the parties will terminate all existing agreements with respect to Ontario Teachers' free cash flow interest in New Afton, including the Ontario Teachers' right to a one-time cash payment of $20.0 million on a change of control of New Gold if it is announced prior to January 31, 2026.

Closing of the Transaction is subject to customary conditions and is expected to close at the beginning of May 2025.

The following Management’s Discussion and Analysis (“MD&A”) provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of New Gold Inc. and its subsidiaries (“New Gold” or the “Company”). This MD&A should be read in conjunction with New Gold’s unaudited condensed interim consolidated financial statements for the three months ended March 31, 2025 and 2024, and related notes, which are prepared in accordance with IAS 34, Interim Financial Reporting, as issued by the International Accounting Standards Board ("IASB"). This MD&A contains forward-looking statements that are subject to risks and uncertainties, as discussed in the "Cautionary Note Regarding Forward-Looking Statements" section at the end of this MD&A. Readers are cautioned not to place undue reliance on forward-looking statements. All dollar figures are in U.S. dollars and tabular dollar amounts are in millions, unless otherwise noted. Figures in some tables may not add due to rounding. This MD&A has been prepared as of April 29, 2025. Additional information relating to the Company, including the Company’s Annual Information Form, is available on SEDAR+ at www.sedarplus.ca.

New Gold Inc. is an intermediate gold mining company engaged in the development and operation of mineral properties. The assets of the Company, directly or through its subsidiaries, are comprised of the New Afton Mine in British Columbia, Canada (“New Afton”) and the Rainy River Mine in Ontario, Canada (“Rainy River”). New Gold's vision is to be the most valued intermediate gold and copper producer through profitable and responsible mining for our shareholders and stakeholders. For further information on the Company, visit www.newgold.com.

References made in this MD&A to other documents or to information or documents available on a website do not constitute the incorporation by reference into this MD&A of such other documents or such other information or documents available on such website, unless such incorporation by reference is explicit.

Note references throughout the document are to endnotes which can be found on page 41 of this MD&A.

In this MD&A, we use the following non-GAAP financial performance measures: “Cash costs", "all-in sustaining costs" or "AISC", "adjusted net earnings/(loss)", "adjusted tax expense", "sustaining capital and sustaining leases”, “growth capital”, “average realized gold/copper price per ounce/pound”, "open pit net mining cost per operating tonne mined", "underground net mining costs per operating tonne mined", "processing costs per tonne processed", "G&A costs per tonne processed", "cash generated from operations before changes in non-cash operating working capital" and "free cash flow". For a detailed description of each non-GAAP financial performance measure used in this MD&A and a detailed reconciliation to the most directly comparable measures under International Financial Reporting Standards ("IFRS Accounting Standards"), please refer to the “Non-GAAP Financial Performance

Measures” section of this MD&A starting on page 27. The non-GAAP financial performance measures in this MD&A are intended to provide additional information to investors and do not have any standardized meaning under IFRS Accounting Standards. These measures may therefore not be comparable to similar measures presented by other issuers and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

The Company is committed to responsible mining through implementation of sound environmental, social and governance ("ESG") practices. The Company continues to implement and report on the Mining Association of Canada’s Towards Sustainable Mining ("TSM") framework at all its operating mines. New Gold prioritizes the health, safety and well-being of its people through the “Courage to Care” initiative.

Total recordable injury frequency rate ("TRIFR")12 was 0.55 for Q1, a reduction of 40% compared to the same period in the prior year.

Water Management

At New Afton, the site received approvals for the operation of the twelve mechanical evaporators in advance of the 2025 evaporator season. The evaporators are used to reduce the pond volume in the New Afton Tailings Storage Facility, as part of the C-Zone stabilization program. Rainy River has begun preparations for spring freshet, including de-winterization of the water treatment and discharge system. Rainy River has begun preparations to improve the effectiveness of the water treatment.

Tailings Management

New Afton and Rainy River completed annual reporting filings for the tailings facilities. Rainy River has received authorization and is completing planning for the 2025 tailings dam construction activities. At New Afton, the C-Zone stabilization program remains on track.

Indigenous & Community Relations

The Company recognizes the importance and value of its relationships with local and Indigenous communities. The New Afton Mine and the Rainy River Mine teams regularly engage with interested stakeholders with the aim to build trust, provide employment and contract opportunities and identify areas for support to local communities.

In early 2025, New Gold launched a refresh of the community investment program, which strives to support initiatives and projects that have meaningful and long-lasting positive impacts within the communities where we operate. The refresh includes refined eligibility criteria and aims to provide strategic guidance to support the prioritization of sustainable community and social development.

The Company completed an offering of $400.0 million aggregate principal amount of 6.875% Senior Notes due 2032 (the "2032 Unsecured Notes") on March 18, 2025 to fund a tender offer to purchase any and all of its outstanding 7.50% Senior Notes (the "2027 Unsecured Notes") due in 2027. The tender offer expired on March 14, 2025 with approximately $288.8 million tendered and subsequently redeemed.

The Company intends, but is not obligated, to redeem any 2027 Unsecured Notes that were not tendered in the tender offer on or about July 15, 2025, at the then-applicable redemption price of 100.0% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date.

In connection with the offering, S&P upgraded the Company’s corporate rating from B to B+, upgraded the bond rating from B to BB-, and upgraded their outlook from Stable to Positive. Moody’s maintained the Company’s B2 corporate rating and B3 rating on the bonds, and upgraded their outlook from Stable to Positive.

For further details, please refer to the “Financial Condition Review” section on page 22 of this MD&A, or the press releases dated March 4, 2025, "New Gold Announces Launch of $400 Million Senior Notes Offering to Fund Tender Offer for Outstanding 7.50% Senior Notes", "New Gold Announces Tender Offer for its 7.50% Senior Notes due 2027", "New Gold Announces Pricing of $400 million Senior Notes Offering to Fund Tender Offer for Outstanding 7.50% Senior Notes" and the press release dated March 14, 2025, "New Gold Announces Expiration and Results of its Tender Offer for its 7.50% Senior Notes due 2027".

On March 24, 2025, the Company extended its revolving credit facility with a new maturity date of March 23, 2029. The borrowing limit is $400.0 million with an option to increase the limit up to $500.0 million through an Accordion Feature. For further details please refer to the "Financial Condition Review" section starting on page 22 of this MD&A.

The Company appointed Travis Murphy as Vice President, Operations, effective March 24, 2025. For further details please refer to the press release dated March 11, 2025, "New Gold Strengthens Operational Leadership Team".

Subsequent to the quarter, the Company announced that it has entered into an agreement with Ontario Teachers' Pension Plan to acquire the remaining 19.9% free cash flow interest in the Company's New Afton Mine for $300.0 million ("the Transaction"). Following the Transaction, the Company will have fully consolidated its free cash flow interest in New Afton to 100%. Closing of the Transaction is subject to customary conditions and is expected to close at the beginning of May 2025. For further details please refer to the press release dated April 7, 2025, "New Gold Consolidates 100% Interest in its New Afton Mine".

New Gold is pleased to reaffirm its 2025 operational outlook as outlined below.

The Company has assumed $30.00 per silver ounce and $4.00 per copper pound, and a foreign exchange rate of $1.40 Canadian dollars to $1.00 US dollar in its outlook.

The Company delivered on its first quarter plan, advancing several critical path objectives to set up for a successful year and achieve annual guidance. At New Afton, B3 grades were higher than expected as the cave nears exhaustion, which is now expected by the end of the second quarter of 2025. At Rainy River, efforts to sequence waste stripping in the early months of the year have allowed the mine to remain on-track for a step up in production starting in the second quarter, and to deliver an improved second half of the year as the mine processes higher grade material. Additionally, underground development continues to advance, the successful pit portal breakthrough occurred in early April, an important catalyst that enables the underground ramp-up to advance throughout the year.

First quarter consolidated production was 52,186 ounces of gold and 13.6 million pounds of copper at all-in sustaining costs1,2 of $1,727 per gold ounce sold. First quarter gold production represented approximately 15% of the midpoint of consolidated production guidance of 325,000 to 365,000 ounces of gold, slightly ahead of the planned first quarter guidance of 14% provided in our February operational outlook news release.

New Afton first quarter production was 18,278 ounces of gold and 13.6 million pounds of copper at an all-in sustaining costs1,2 of $(687) per gold ounce sold. First quarter production represented approximately 28% and 25% of the midpoint of guidance of 60,000 to 70,000 ounces of gold and 50 to 60 million pounds of copper, respectively, higher than the quarterly guidance of 20% due to continued strong B3 grades leading to higher than planned head grades in the quarter.

C-Zone cave construction continues to advance on schedule, facilitating a step up in copper and gold production in the second half of 2025. Undercutting is on track for completion in May and cave construction progress is more than 50% complete, as of the end of March. Other key project milestones completed in the first quarter include the relocation of the secondary sizer and commissioning of the C-Zone dewatering system. The flotation cleaner circuit upgrade is on schedule for commissioning in the third quarter, with construction commencing in April. This project is expected to improve copper and gold recoveries as the operation ramps up to full processing capacity of approximately 16,000 tonnes per day beginning in 2026.

Rainy River first quarter production was 33,908 ounces of gold at an all-in sustaining costs1,2 of $2,758 per gold ounce sold. First quarter production represented approximately 12% of the midpoint of guidance of 265,000 to 295,000 ounces of gold, slightly ahead of the quarterly guidance of 11%.

As outlined in the Rainy River operational outlook, open pit mining in the first quarter focused on waste stripping, with most of the mill feed coming from the low-grade stockpile. With the final waste stripping campaign for Phase 4 completed in April, the remaining benches are planned to provide ore production through to 2026 at an average strip ratio of 1:1.

The Rainy River underground mine achieved an important milestone with the breakthrough of the ramp to the pit portal in early April. The connection to the pit provides an immediate reduction in underground haulage distances, improves ventilation, and establishes a second means of egress to facilitate stope production from several new mining zones as they come online in late-2025.

Details of the Company’s 2025 guidance are available on SEDAR+ at www.sedarplus.ca, on EDGAR at www.sec.gov, and on the Company’s website at www.newgold.com/news-events/news.

There is a range of key performance drivers that are critical to the successful implementation of New Gold’s strategy and the achievement of its goals. The key internal drivers are production volumes and costs. The key external drivers are the market prices of gold and copper as well as foreign exchange rates.

For an analysis of the impact of production volumes and costs for the three months ended March 31, 2025 relative to the prior-year periods, refer to the “Review of Operating Mines” section of this MD&A.

The price of gold is the single largest factor affecting New Gold’s profitability and operating cash flows. As such, the current and future financial performance of the Company is expected to be closely related to the prevailing price of gold.

For the three months ended March 31, 2025, New Gold's gold revenue per ounce10 and average realized gold price per ounce1 were $2,864 and $2,894, respectively (March 31, 2024 - $2,061 and $2,090 respectively). This compared to the London Bullion Market Association ("LBMA") p.m. average gold price of $2,860 per ounce (March 31, 2024 - $2,070).

For the three months ended March 31, 2025, New Gold’s copper revenue per pound10 and average realized copper price per pound1 were $4.17 and $4.30, respectively (March 31, 2024 - $3.64 and $3.86 respectively). This compared to the average London Metals Exchange ("LME") copper price of $4.23 per pound (March 31, 2024 - $3.83).

While the Company’s key operations are in Canada, revenue is generated in U.S. dollars. As a result, the Company has foreign currency exposure with respect to costs not denominated in U.S. dollars. New Gold’s operating results and cash flows are influenced by changes in exchange rates against the U.S. dollar. The Company has exposure to the Canadian dollar through New Afton and Rainy River, as well as through corporate administration costs.

The spot Canadian dollar weakened against the U.S. dollar during the three months ended March 31, 2025 when compared to the prior-year period. The weakening of the Canadian dollar impacts costs in U.S. dollar terms at the Company’s Canadian operations, as a significant portion of operating and capital costs are denominated in Canadian dollars.

For an analysis of the impact of foreign exchange fluctuations on operating costs, refer to the relevant sections for Rainy River and New Afton under the heading “Review of Operating Mines”.

The LBMA p.m. gold price increased by 19% during the first quarter of 2025, finishing the quarter at $3,115 per ounce. Gold prices rose to new record high prices over the quarter driven by consistent central bank buying and safe haven demand tied to intensifying geopolitical and macroeconomic uncertainties. Looking forward, continued geopolitical risk may provide further support for gold prices.

Prospects for gold are impacted by several structural factors. Mine supply has been plateauing as high-quality deposits become more difficult to find and more expensive to develop and mine. Economic events can have significant effects on the price of gold, through currency rate fluctuations, the relative strength of the U.S. dollar, gold supply and demand, and other macroeconomic factors, such as interest rates and inflation expectations. Management anticipates that the long-term economic environment should provide support for gold and precious metals, and believes the prospects for the business are favourable.

The LME cash copper price increased by 11% during the first quarter of 2025, finishing the quarter at $4.39 per pound. Prices rose over the quarter driven largely by tariff-related uncertainty. Over the longer-term, continued growth in the global economy could increase demand for copper and provide support for copper prices.

For the three months ended March 31, 2025, the increase in revenue relative to the prior-year period was due to higher metal prices and higher copper sales volume, partially offset by lower gold sales volume.

For the three months ended March 31, 2025, operating expenses were in-line with the prior-year period. For further information, please refer to the "Review of Operating Mines" section of this MD&A.

For the three months ended March 31, 2025, depreciation and depletion decreased when compared to the prior-year period due to lower gold production and open-pit tonnes mined at Rainy River.

For the three months ended March 31, 2025, revenue less costs of goods sold increased when compared to the prior-year period primarily due to higher revenue from New Afton.

For the three months ended March 31, 2025, corporate administration was relatively consistent when compared to the prior-year period.

For the three months ended March 31, 2025, costs associated with corporate restructuring were for termination expenses related to changes at the executive leadership level of the Company.

For the three months ended March 31, 2025, share-based payment expenses increased compared to the prior-year period due to an increase in share price.

For the three months ended March 31, 2025, New Afton free cash flow interest expense represents the Company's obligation to Ontario's Teachers for 19.9% of New Afton's free cash flow for the quarter ended March 31, 2025.

For the three months ended March 31, 2025, exploration and business development expenses increased when compared to the prior-year periods due to increased exploration activity at New Afton and Rainy River.

For the three months ended March 31, 2025, finance income decreased due to a decrease in interest rates when compared to the prior-year period.

For the three months ended March 31, 2025, finance costs increased compared to the prior-year period, primarily related to lower capitalized interest costs due to commercial production at New Afton's C-Zone, and the loss on repayment of long-term debt.

Foreign exchange

Movements in foreign exchange are primarily due to the revaluation of monetary assets and liabilities as at the balance sheet date, and the appreciation or depreciation of the Canadian dollar when compared to the U.S. dollar in the current periods.

Rainy River Gold stream obligation

For the three months ended March 31, 2025, the Company recorded an unrealized loss on the revaluation of the Rainy River gold stream obligation derivative instrument of $25.8 million, driven by higher metal prices.

Gain on revaluation of investments

For the three months ended March 31, 2025, the Company recorded a gain on revaluation of investments due to an increase in the share price of certain investments.

Foreign exchange derivatives

For the three months ended March 31, 2025, the Company recorded a gain on foreign exchange derivatives, associated with changes in forward prices on the Company's foreign exchange contracts.

For the three months ended March 31, 2025, the Company recorded a gain associated with the Company's fuel hedge swap contracts.

The Other Gains and Losses listed above are added back for the purposes of calculating adjusted net earnings1. Adjusted net earnings1 is a non-GAAP financial performance measure that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. Please refer to the "Non-GAAP Financial Performance Measures" section starting on page 27 of this MD&A for more details about adjusted net earnings.

The current and prior-year income tax (expense) recovery relates primarily to current and deferred mineral taxes. Income tax expense for the three months ended March 31, 2025 was relatively consistent when compared to the prior-year period.

On an adjusted net earnings (loss)1 basis, the adjusted income tax expense1 for the three months ended March 31, 2025 was $5.1 million, compared to an adjusted tax expense of $1.5 million in the prior-year. Adjusted income tax (expense) recovery1 excludes the tax impact of other gains and losses on the consolidated income statement. Adjusted income tax (expense) recovery1 is a non-GAAP financial performance measure that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. Please refer to the “Non-GAAP Financial Performance Measures” section on page 27 of this MD&A for more details.

For the three months ended March 31, 2025, there was an decrease in net loss compared to the prior-year period, largely due to an increase in revenues.

Adjusted net earnings (loss)1

Net earnings (loss) have been adjusted for other gains and losses, loss on repayment of long-term debt, and Corporate restructuring on the consolidated income statement. Key elements in Other Gains and Losses are the fair value changes for the gold stream obligation, foreign exchange gains/loss and fair value changes in investments. The adjusted entries are also impacted by tax expenses to the extent that the underlying entries are impacted for tax in the unadjusted net earnings. Adjusted net earnings is a non-GAAP financial performance measure that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. Please refer to the "Non-GAAP Financial Performance Measures" section on page 27 of this MD&A for more details.

For the three months and year ended March 31, 2025, adjusted net earnings1 were relatively in-line with the prior-year period.

For further information on the Company’s liquidity and cash flow position, please refer to the “Liquidity and Cash Flow” section on page 24 of this MD&A.

Selected financial and operating information for the current and previous quarters is as follows:

(in millions of U.S. dollars,  except where noted)			Q1 2025			Q4  2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023			Q3 2023			Q2 2023			Q1 2023
OPERATING INFORMATION
Gold production from operations (ounces)(4)			52,186			80,438			78,369			68,598			70,898			79,187			82,986			76,527			82,477
Gold sales from operations (ounces)(4)			52,164			77,281			81,791			67,697			70,077			77,870			79,821			74,219			87,206
Revenue			209.1			262.2			252.0			218.2			192.1			199.2			201.3			184.4			201.6
Net earnings (loss)			(16.7)			55.1			37.9			9.6			(43.5)			(27.4)			(2.7)			(2.6)			(31.8)
Per share:
Basic ($)			(0.02)			0.07			0.05			0.07			(0.06)			(0.04)			(0.00)			(0.00)			(0.05)
Diluted ($)			(0.02)			0.07			0.05			0.07			(0.06)			(0.04)			(0.00)			(0.00)			(0.05)