Market Overview

Rainy River Milling Operations Restarted Ahead of Schedule

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New Gold Inc. ("New Gold" or the "Company") (TSX and NYSE American:
NGD)
announced today that the Rainy River milling operations were
restarted late afternoon on Friday, May 3. The operations had been
temporarily shut down to address excess water in the Tailings Management
Area (TMA) (see May 1, 2019 press release). The water level in the TMA
has been lowered to a desirable operational level and pumping into the
Water Management Pond continues. Mining and crushing operations
continued during the temporary shutdown period.

Management anticipates that the production delay will be offset so that
the Company will still be in a position to achieve its annual production
guidance.

About New Gold Inc.

New Gold is a Canadian-focused intermediate gold mining company. The
Company has a portfolio of two core producing assets in top-rated
jurisdictions, the Rainy River and New Afton Mines in Canada. The
Company also operates the Cerro San Pedro Mine in Mexico (which
transitioned to residual leaching in 2016). In addition, New Gold owns
100% of the Blackwater project located in Canada. New Gold's objective
is to be a leading intermediate gold producer, focused on the
environment and social responsibility. For further information on the
Company, please visit www.newgold.com.

Cautionary Note Regarding Forward-Looking Statements

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 the
timing of resumption of mill operations and deposition of tailings into
TMA Cell 3, and the impact of the shutdown on production and annual
guidance.

All forward-looking statements in this news release are based on the
opinions and estimates of management as of the date such statements are
made and are 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 management's
discussion and analysis ("MD&A"), Annual Information Form and Technical
Reports filed 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; (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; (4) the exchange rate between the Canadian
dollar and U.S. dollar, and to a lesser extent, the Mexican Peso, being
approximately consistent with current levels; (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 Rainy River mine and Blackwater project 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 during the
applicable regulatory processes; and (9) water pumps at Rainy River
performing in line with expectations.

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: significant capital requirements
and the availability and management of capital resources; additional
funding requirements; price volatility in the spot and forward markets
for metals and other commodities; 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; discrepancies
between actual and estimated production, between actual and estimated
mineral reserves and mineral resources and between actual and estimated
metallurgical recoveries; 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;
fluctuation in treatment and refining charges; changes in national and
local government legislation in Canada, the United States and, to a
lesser extent, Mexico or any other country in which New Gold currently
or may in the future carry on business; taxation; controls, regulations
and political or economic developments in the countries in which New
Gold does or may carry on business; 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, the lack of certainty with
respect to foreign 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 uncertainties inherent to current
and future legal challenges New Gold is or may become a party to;
diminishing quantities or grades of mineral reserves and mineral
resources; competition; loss of key employees; rising costs of labour,
supplies, fuel and equipment; actual results of current exploration or
reclamation activities; uncertainties inherent to mining economic
studies; changes in project parameters as plans continue to be refined;
accidents; labour disputes; defective title to mineral claims or
property or contests over claims to mineral properties; unexpected
delays and costs inherent to consulting and accommodating rights of
Indigenous groups; risks, uncertainties and unanticipated delays
associated with obtaining and maintaining necessary licenses, permits
and authorizations and complying with permitting requirements. In
addition, there are risks and hazards associated with the business of
mineral exploration, development and mining, including environmental
events and hazards, industrial accidents, unusual or unexpected
formations, pressures, cave-ins, excess water, flooding and gold bullion
losses and risks associated with the start of production of a mine, such
as Rainy River, (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 Annual Information Form, MD&A and other
disclosure documents filed on and available 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 of the 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.

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