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<SEC-DOCUMENT>0001204459-09-000864.txt : 20090514
<SEC-HEADER>0001204459-09-000864.hdr.sgml : 20090514
<ACCEPTANCE-DATETIME>20090513182622
ACCESSION NUMBER:		0001204459-09-000864
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		7
CONFORMED PERIOD OF REPORT:	20090331
FILED AS OF DATE:		20090514
DATE AS OF CHANGE:		20090513

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			New Gold Inc. /FI
		CENTRAL INDEX KEY:			0000800166
		STANDARD INDUSTRIAL CLASSIFICATION:	METAL MINING [1000]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31722
		FILM NUMBER:		09823865

	BUSINESS ADDRESS:	
		STREET 1:		3110 - 666 BURRARD ST.
		CITY:			VANCOUVER
		STATE:			A1
		ZIP:			V6C 2X8
		BUSINESS PHONE:		(604) 696-4100

	MAIL ADDRESS:	
		STREET 1:		3110 - 666 BURRARD ST.
		CITY:			VANCOUVER
		STATE:			A1
		ZIP:			V6C 2X8

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DRC RESOURCES CORP                                      /FI
		DATE OF NAME CHANGE:	19860904
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>ngd051209f6k.htm
<DESCRIPTION>FORM 6-K
<TEXT>

<head>

<title>New Gold Inc.: Form 6-K - Prepared by TNT Filings Inc.</title>
</head>





<html>

<body>

<div style="border-top-style: solid; border-top-width: 1; padding-top: 1">
<hr color="#000000" size="5">
</div>
<p style="text-align: center; margin-top: 14pt; margin-bottom: 0pt"><b>
<font size="5">UNITED STATES</font></b></p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><b>
<font size="5">SECURITIES AND EXCHANGE COMMISSION</font></b></p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><b>
<font size="2">Washington, D.C. 20549</font></b></p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;<b><font size="2">___________________</font></b></p>
<p style="text-align: center; margin-top: 6pt; margin-bottom: 0pt"><b>
<font size="5">FORM 6-K</font></b></p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><b>
<font size="2">REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR<br>
15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934</font></b></p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><b>
<font size="2">For the month of </font></b><font size="2"><b>May 2009</b></font></p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><b>
<font size="2">Commission File Number 001-31722</font></b></p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><b>
<font size="2">___________________</font></b></p>
<p style="text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><b>
<font size="6">New Gold Inc.</font></b></p>
<p style="text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">
<font size="2">Park Place, 3110-666 Burrard Street</font></p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">
<font size="2">Vancouver, British Columbia V6C 2X8</font></p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">
<font size="2">Canada</font></p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">
<font size="2">(</font><i><font size="2">Address of principal executive office</font></i><font size="2">)</font></p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><b>
<font size="2">___________________</font></b></p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</p>
<p style="text-align: justify; margin-top: 0pt; margin-bottom: 0pt">
<font size="2">Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F.<br>
&nbsp;</font></p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">
<font size="2">Form 20-F</font> <font face="Wingdings 2" size="4">&#163;</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Form
40-F</font> <font face="Wingdings 2" size="4">Q</font></p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</p>
<p style="text-align: justify; margin-top: 0pt; margin-bottom: 0pt">
<font size="2">Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(1)</font>
<font face="Wingdings 2" size="4">&#163;</font></p>
<font face="Times New Roman" size="2"><b>
<p>Note</b>: Regulation S-T Rule 101(b)(1) only permits the submission in paper
of a Form 6-K if submitted solely to provide an attached annual report to
security holders. </p>
</font>
<p style="text-align: justify; margin-top: 0pt; margin-bottom: 0pt">
<font size="2">Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(7)</font>
<font face="Wingdings 2" size="4">&#163;</font></p>
<font face="Times New Roman" size="2"><b>
<p align="justify">Note: </b>Regulation S-T Rule 101(b)(7) only permits the
submission in paper of a Form 6-K if submitted to furnish a report or other
document that the registrant foreign private issuer must furnish and make public
under the laws of the jurisdiction in which the registrant is incorporated,
domiciled or legally organized (the registrant's &quot;home country&quot;), or under the
rules of the home country exchange on which the registrant's securities are
traded, as long as the report or other document is not a press release, is not
required to be and has not been distributed to the registrant's security
holders, and, if discussing a material event, has already been the subject of a
Form 6-K submission or other Commission filing on EDGAR. </p>
</font>
<p style="text-align: justify; margin-top: 0pt; margin-bottom: 0pt">
<font size="2">Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.)&nbsp; Yes</font> <font face="Wingdings 2" size="4">&#163;</font><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No</font>
<font face="Wingdings 2" size="4">Q</font></p>
<p style="text-indent: 0.25in; text-align: left; margin-top: 0pt; margin-bottom: 0pt">
&nbsp;</p>
<p style="text-align: justify; margin-top: 0pt; margin-bottom: 0pt">
<font size="2">If &quot;Yes&quot; is marked, indicate below the file number assigned to
the registrant in connection with Rule 12g3-2(b): 82- <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; </u>.</font></p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</p>



<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black noShade SIZE=5>

<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><b>
<font size="2">DOCUMENTS FILED AS PART OF THIS FORM 6-K</font></b></p>
<p style="text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</p>
<p style="text-align: left; margin-top: 0pt; margin-bottom: 0pt"><font size="2">
<a style="text-decoration: none" href="#EXHIBIT INDEX"><font color="#000000">See the Exhibit Index
hereto</font>.</a></font></p>
<p style="text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</p>
<p style="text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><b>
<font size="2">SIGNATURES</font></b></p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</p>
<p style="text-indent: 4%; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">
<font size="2">Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.</font></p>
<p style="text-indent: 4%; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">
&nbsp;</p>
<p style="text-align: justify; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</p>
<table style="border-collapse: collapse; font-size:10pt" borderColor="#111111" cellSpacing="0" cellPadding="0" width="100%" border="0">
  <tr>
    <td width="50%" colSpan="2">&nbsp;</td>
    <td width="50%">&nbsp;</td>
  </tr>
  <tr>
    <td width="50%" colSpan="2">&nbsp;</td>
    <td width="50%"><b><small><font size="2">NEW</font></small> <small>
    <font size="2">GOLD</font></small> <small><font size="2">INC.</font></small></b></td>
  </tr>
  <tr>
    <td width="50%" colSpan="2">&nbsp;</td>
    <td width="50%">&nbsp;</td>
  </tr>
  <tr>
    <td width="50%" colSpan="2">&nbsp;</td>
    <td width="50%">&nbsp;</td>
  </tr>
  <tr>
    <td width="49%">&nbsp;</td>
    <td align="left" width="1%">
    <p style="margin-right: 15px"><font size="2">By: </font></td>
    <td style="border-bottom: 1px solid" width="50%"><font size="2">/s/ Susan
    Toews</font></td>
  </tr>
  <tr>
    <td width="49%">&nbsp;</td>
    <td align="left" width="1%">
    <p style="margin-right: 15px"><font size="2">Name:&nbsp;&nbsp; </font></td>
    <td style="border-top: 1px solid; border-bottom: medium none" width="50%">
    <font size="2">Susan Toews</font></td>
  </tr>
  <tr>
    <td width="49%">&nbsp;</td>
    <td align="left" width="1%">
    <p style="margin-right: 15px"><font size="2">Title: </font></td>
    <td style="border-top: medium none" width="50%"><font size="2">Corporate
    Secretary</font></td>
  </tr>
  <tr>
    <td width="50%" colSpan="2"><font size="2">Date: May
    <font style="background-color: #FFFFFF">13</font>, 2009</font></td>
    <td style="border-top: medium none" width="50%">&nbsp;</td>
  </tr>
</table>
<p style="text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">
<font size="2">2</font></p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</p>


<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black noShade SIZE=5>

<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><b>
<font size="2"><a name="EXHIBIT INDEX">EXHIBIT INDEX</a></font></b></p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</p>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111" height="80">
  <tr>
    <td WIDTH="7%" height="19">&nbsp;</td>
    <td WIDTH="93%" height="19">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="7%" height="15"><font FACE="Times New Roman" size="2"><b>Exhibit</b></font></td>
    <td WIDTH="93%" height="15"><font FACE="Times New Roman" size="2"><b>
    Description</b></font></td>
  </tr>
  <tr>
    <td WIDTH="7%" height="19">&nbsp;</td>
    <td WIDTH="93%" height="19">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="7%" bgcolor="#E6EFFF" height="15"><font size="2">
    <a style="text-decoration: none" href="ngd051209exh991.htm">99.1</a></font></td>
    <td WIDTH="93%" bgcolor="#E6EFFF" height="15">
    <font FACE="Times New Roman" size="2">
    <a href="ngd051209exh991.htm" style="text-decoration: none">Interim
    consolidated financial statements of New Gold Inc. March 31, 2009
    (unaudited)</a></font></td>
  </tr>
  <tr>
    <td WIDTH="7%" bgcolor="#FFFFFF" height="12">
    <font size="2" style="background-color: #FFFFFF">
    <a style="text-decoration: none" href="ngd051209exh992.htm">99.2</a></font></td>
    <td WIDTH="93%" bgcolor="#FFFFFF" height="12">
    <font FACE="Times New Roman" size="2">
    <a href="ngd051209exh992.htm" style="text-decoration: none">New Gold Inc.
    Management&#146;s Discussion and Analysis Three Months Ended March 31, 2009 </a>
    </font></td>
  </tr>
  <tr>
    <td WIDTH="7%" bgcolor="#E6EFFF" height="12">
    <font size="2">
    <a href="ngd051209exh993.htm" style="text-decoration: none; background-color:#E6EFFF">99.3</a></font></td>
    <td WIDTH="93%" bgcolor="#E6EFFF" height="12">
    <p ALIGN="LEFT"><font size="2">
    <a href="ngd051209exh993.htm" style="text-decoration: none">Form 52-109F2
    CEO Certification Of Interim Filings Full Certificate</a></font></td>
  </tr>
  <tr>
    <td WIDTH="7%" bgcolor="#FFFFFF" height="12">
    <font size="2" style="background-color: #FFFFFF">
    <a href="ngd051209exh994.htm" style="text-decoration: none">99.4</a></font></td>
    <td WIDTH="93%" bgcolor="#FFFFFF" height="12">
    <p ALIGN="LEFT"><font size="2">
    <a href="ngd051209exh994.htm" style="text-decoration: none">Form 52-109F2
    CFO Certification Of Interim Filings Full Certificate</a></font></td>
  </tr>
  <tr>
    <td WIDTH="7%" bgcolor="#E6EFFF" height="12">
    <font size="2">
    <a href="ngd051209exh995.htm" style="text-decoration: none; background-color:#E6EFFF">99.5</a></font></td>
    <td WIDTH="93%" bgcolor="#E6EFFF" height="12">
    <p ALIGN="LEFT"><font size="2">
    <a href="ngd051209exh995.htm" style="text-decoration: none">Press Release of
    May 12, 2009</a></font></td>
  </tr>
  <tr>
    <td WIDTH="7%" bgcolor="#FFFFFF" height="12">
    &nbsp;</td>
    <td WIDTH="93%" bgcolor="#FFFFFF" height="12">&nbsp;</td>
  </tr>
  </table>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</p>
<p style="text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</p>
<p style="text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">
<font size="2">3</font></p>
<p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</p>
<hr color="#000000" size="5">

</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>ngd051209exh991.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>


<HTML>
<HEAD>
   <TITLE>New Gold Inc: Exhibit 99.1 - Prepared by TNT Filings Inc.</TITLE>

</HEAD>

<BODY style="font-size:10pt;">

<div style="border-top-style: solid; border-top-width: 1; padding-top: 1">

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<A name="page_1"></A>

<P align="right">
<b>Exhibit 99.1</b></P>

<P align="justify">
<font size="3">Interim consolidated financial statements of <br>
</font> <BR>
<B><font size="5">New Gold Inc.<br>
</font></B><BR>
<font size="3">March 31, 2009 <BR>
(Unaudited) <BR>
</font>
</P>

<P align="justify">
&nbsp;</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">

<!--$$/page=--><A name=page_2></A>
<P align=justify><B><font size="4">New Gold Inc.</font></B><font size="4"><BR>
</font><font size="3">March 31, 2009 <br>
<BR>Table of contents</font>
<BR></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD align=left  bgColor=#e6efff><BR>Consolidated statements
      of operations and comprehensive income </TD>
    <TD align=right width="15%"  bgColor=#e6efff><BR>1 </TD></TR>
  <TR>
    <TD align=left ><BR>Consolidated balance sheets </TD>
    <TD align=right width="15%" ><BR>2 </TD></TR>
  <TR>
    <TD align=left  bgColor=#e6efff><BR>Consolidated statements
      of shareholders&#146; equity </TD>
    <TD align=right width="15%"  bgColor=#e6efff><BR>3 </TD></TR>
  <TR>
    <TD align=left ><BR>Consolidated statements of cash flows </TD>
    <TD align=right width="15%" ><BR>4 </TD></TR>
  <TR>
    <TD align=left  bgColor=#e6efff><BR>Notes to the consolidated
      financial statements </TD>
    <TD align=right width="15%"  bgColor=#e6efff><BR>5-22
  </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_3></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B><font size="4">New Gold Inc.</font></B><font size="4">
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Consolidated statements of operations and comprehensive
      income </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Three month periods ended March 31, </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in thousands of U.S. dollars, except share and
      per share amounts) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Unaudited) </TD></TR></TABLE>
<p><BR>
</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="12%"><STRONG>$</STRONG></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="12%">$</TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff><BR>Revenues </TD>
    <TD width="1%" bgColor=#e6efff><BR></TD>
    <TD align=right width="12%" bgColor=#e6efff><BR><B>58,765</B> </TD>
    <TD width="2%" bgColor=#e6efff><BR></TD>
    <TD width="1%" bgColor=#e6efff><BR></TD>
    <TD align=right width="12%" bgColor=#e6efff><BR>56,221 </TD>
    <TD width="2%" bgColor=#e6efff><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Operating expenses </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%"><B>(35,200</B></TD>
    <TD align=left width="2%"><B>)</B> </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">(31,367</TD>
    <TD align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Depreciation and depletion </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>(10,749</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>(6,404</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Earnings from mine operations </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%"><B>12,816</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">18,450 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff><BR>Corporation administration (i) </TD>
    <TD width="1%" bgColor=#e6efff><BR></TD>
    <TD align=right width="12%" bgColor=#e6efff><BR><B>(4,750</B></TD>
    <TD width="2%" bgColor=#e6efff><BR><B>)</B> </TD>
    <TD width="1%" bgColor=#e6efff><BR></TD>
    <TD align=right width="12%" bgColor=#e6efff><BR>(4,027</TD>
    <TD width="2%" bgColor=#e6efff><BR>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Exploration </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>(2,014</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="2%"><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="12%">(944</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">)
</TD></TR>
  <TR>
    <TD bgColor=#e6efff><BR>Earnings from operations </TD>
    <TD width="1%" bgColor=#e6efff><BR></TD>
    <TD align=right width="12%" bgColor=#e6efff><BR><B>6,052</B> </TD>
    <TD width="2%" bgColor=#e6efff><BR></TD>
    <TD width="1%" bgColor=#e6efff><BR></TD>
    <TD align=right width="12%" bgColor=#e6efff><BR>13,479 </TD>
    <TD width="2%" bgColor=#e6efff><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Other income (expense) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Interest and other income </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>266</B> </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1,967 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Gain on redemption of long-term debt </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%"><B>14,236</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">- </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Interest and finance fees </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(9</B></TD>
    <TD align=left width="2%" bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(79</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp;Loss
      on foreign exchange </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>(1,975</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="2%"><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="12%">(1,083</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">)
</TD></TR>
  <TR>
    <TD bgColor=#e6efff><BR>Earnings before taxes </TD>
    <TD width="1%" bgColor=#e6efff><BR></TD>
    <TD align=right width="12%" bgColor=#e6efff><BR><B>18,570</B> </TD>
    <TD width="2%" bgColor=#e6efff><BR></TD>
    <TD width="1%" bgColor=#e6efff><BR></TD>
    <TD align=right width="12%" bgColor=#e6efff><BR>14,284 </TD>
    <TD width="2%" bgColor=#e6efff><BR></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Income and mining
      taxes </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>(6,491</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="2%"><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="12%">(4,494</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">)
</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff><B>Net earnings and comprehensive income</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>12,079</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>9,790 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD><BR>Earnings per share </TD>
    <TD width="1%"><BR></TD>
    <TD align=right width="12%"><BR></TD>
    <TD width="2%"><BR></TD>
    <TD width="1%"><BR></TD>
    <TD align=right width="12%"><BR></TD>
    <TD width="2%"><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Basic </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>0.06</B> </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>0.13 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;
      &nbsp;Diluted </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>0.06</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">0.13
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff><BR>Weighted average number of shares outstanding </TD>
    <TD width="1%" bgColor=#e6efff><BR></TD>
    <TD align=right width="12%" bgColor=#e6efff><BR></TD>
    <TD width="2%" bgColor=#e6efff><BR></TD>
    <TD width="1%" bgColor=#e6efff><BR></TD>
    <TD align=right width="12%" bgColor=#e6efff><BR></TD>
    <TD width="2%" bgColor=#e6efff><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>(in thousands) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Basic </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>212,848</B> </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>76,978 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;
      &nbsp;Diluted </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>212,930</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">77,004 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff><BR>(i) Stock option expense (a non-cash item included
      <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in corporation administration)
</TD>
    <TD width="1%" bgColor=#e6efff><BR><BR></TD>
    <TD align=right width="12%" bgColor=#e6efff><BR><BR><B>1,332</B> </TD>
    <TD width="2%" bgColor=#e6efff><BR><BR></TD>
    <TD width="1%" bgColor=#e6efff><BR><BR></TD>
    <TD align=right width="12%" bgColor=#e6efff><BR><BR>2,561 </TD>
    <TD width="2%" bgColor=#e6efff><BR><BR></TD></TR></TABLE>
<P>&nbsp;</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>See accompanying notes to the unaudited consolidated
      financial statements. </TD>
    <TD align=right width="15%">Page 1 </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_4></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B><font size="4">New Gold Inc. </font> </B></TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Consolidated balance sheets </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in thousands of U.S. dollars) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Unaudited) </TD></TR></TABLE>
<P>&nbsp;</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>March 31, </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">December 31, </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>2009 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" ><B></B></TD>
    <TD align=right width="12%"><STRONG>$</STRONG></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="12%">$</TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Assets </B></TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Current assets </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Cash and cash equivalents </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>136,610 </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>185,668 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Accounts receivable </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>19,130 </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">11,232 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Inventories and stockpiled ore
      (Note 5) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>37,290 </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>39,402 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Future income and mining taxes </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>1,842 </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">2,690 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; &nbsp;Prepaid expenses and other </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>3,057 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>3,945 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>197,929 </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">242,937 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff><BR>Investments (Note 6) </TD>
    <TD width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="12%" bgColor=#e6efff><BR><B>70,210 </B></TD>
    <TD width="2%"  bgColor=#e6efff><BR></TD>
    <TD width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="12%" bgColor=#e6efff><BR>77,016 </TD>
    <TD width="2%"  bgColor=#e6efff><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Mining interests (Note 7) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>1,637,456 </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">1,618,761 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Intangible royalty asset </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>14,022 </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>14,087 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Reclamation
      deposits and other </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>4,783 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">4,900
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>1,924,400 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>1,957,701 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD><BR><B>Liabilities </B></TD>
    <TD width="1%" ><BR></TD>
    <TD align=right width="12%"><BR></TD>
    <TD width="2%" ><BR></TD>
    <TD width="1%" ><BR></TD>
    <TD align=right width="12%"><BR></TD>
    <TD width="2%" ><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Current liabilities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Accounts payable and accrued liabilities </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>37,955 </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">41,382 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Short-term borrowings </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>- </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>7,193 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;
      &nbsp;Income and mining taxes payable </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>7,115 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">5,126
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>45,070 </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>53,701 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD><BR>Reclamation and closure cost obligations </TD>
    <TD width="1%" ><BR></TD>
    <TD align=right width="12%"><BR><B>21,953 </B></TD>
    <TD width="2%" ><BR></TD>
    <TD width="1%" ><BR></TD>
    <TD align=right width="12%"><BR>21,949 </TD>
    <TD width="2%" ><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Future income and mining taxes </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>227,790 </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>224,068 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Long-term debt (Note 8) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>169,539 </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">212,387 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Employee benefits and other </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>4,803 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>3,808 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>469,155 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">515,913 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff><BR><B>Shareholders' equity </B></TD>
    <TD width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="12%" bgColor=#e6efff><BR></TD>
    <TD width="2%"  bgColor=#e6efff><BR></TD>
    <TD width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="12%" bgColor=#e6efff><BR></TD>
    <TD width="2%"  bgColor=#e6efff><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Common shares </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>1,321,156 </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">1,321,110 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Contributed surplus </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>66,741 </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>65,409 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Share purchase warrants (Note 9 (d)) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>145,614 </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">145,614 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Equity component of convertible debentures
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>21,604 </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>21,604 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Accumulated other comprehensive loss </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>(406</B></TD>
    <TD align=left width="2%" ><B>) </B></TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(406</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Deficit </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>(99,464</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff><B>) </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>(111,543</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>(99,870</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    ><B>) </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">(111,949</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>1,455,245 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>1,441,788 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>1,924,400 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">1,957,701 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P align=justify>Commitments and contingencies (Note 12) </P>
<P align=justify>Approved by the Board </P>
<P align=justify><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</u><br>
Robert Gallagher, Director </P>
<P align=justify><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</u><br>
Craig Nelsen, Director </P>
<P align=justify>&nbsp;</P><A name=selend></A>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>See accompanying notes to the unaudited consolidated
      financial statements. </TD>
    <TD align=right width="15%">Page 2 </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_5></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B><font size="4">New Gold Inc.</font></B><font size="4">
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Consolidated statements of shareholders' equity
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Three month period ended March 31, 2009 </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in thousands of U.S. dollars, except share
      amounts) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Unaudited) </TD></TR></TABLE>
<P>&nbsp;</P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Equity </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">component </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Accumulated </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="1%" style="border-bottom-style: none; border-bottom-width: medium" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Share </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">of </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">other </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">(Deficit) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Total </TD>
    <TD align=left width="1%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="17%"
    colSpan=4>Common shares </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="1%"
    >&nbsp;</TD>
    <TD align=left width="1%" style="border-left-style: none; border-left-width: medium" >&nbsp;</TD>
    <TD align=right width="7%">Special </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Contributed </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">purchase </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">convertible </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">comprehensive </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">retained </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">shareholders' </TD>
    <TD align=left width="1%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">Shares
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="7%">Amount
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">warrants </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">surplus </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">warrants </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">debentures </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">loss
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">earnings </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">equity
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="7%">$</TD>
    <TD align=left width="1%" style="border-top-style: none; border-top-width: medium" >&nbsp;</TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="7%">$</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="7%">$</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="7%">$</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="7%">$</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="7%">$</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="7%">$</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="7%">$</TD>
    <TD align=left width="1%" >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Balance, December 31,</B>
      <BR><B>&nbsp;&nbsp; 2007</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>72,629,140 </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>339,796 </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>104,166 </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>6,166 </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>57,673 </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>(1,566</TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>(8,864</TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR><B>497,371</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Exercise of special warrants </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">14,772,333 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">80,448 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">(104,166</TD>
    <TD align=left width="1%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">23,718 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B>-</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Exercise of options </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>424,090 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>3,022 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>(1,664</TD>
    <TD align=left width="1%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B>1,358</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Exercise of warrants </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">561,645 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">3,167 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">(1,533</TD>
    <TD align=left width="1%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B>1,634</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Acquisition of Metallica <BR>&nbsp;&nbsp;
      (Note 4 (i)) </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>87,447,821 </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>605,139 </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>7,294 </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>46,674 </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR><B>659,107</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Acquisition of NGI <BR>&nbsp;&nbsp; (Note 4 (ii)) </TD>
    <TD align=left width="1%" ><BR></TD>
    <TD align=right width="7%"><BR>37,005,717 </TD>
    <TD align=left width="1%" ><BR></TD>
    <TD align=left width="1%" ><BR></TD>
    <TD align=right width="7%"><BR>289,538 </TD>
    <TD align=left width="1%" ><BR></TD>
    <TD align=left width="1%" ><BR></TD>
    <TD align=right width="7%"><BR>- </TD>
    <TD align=left width="1%" ><BR></TD>
    <TD align=left width="1%" ><BR></TD>
    <TD align=right width="7%"><BR>8,241 </TD>
    <TD align=left width="1%" ><BR></TD>
    <TD align=left width="1%" ><BR></TD>
    <TD align=right width="7%"><BR>57,415 </TD>
    <TD align=left width="1%" ><BR></TD>
    <TD align=left width="1%" ><BR></TD>
    <TD align=right width="7%"><BR>21,604 </TD>
    <TD align=left width="1%" ><BR></TD>
    <TD align=left width="1%" ><BR></TD>
    <TD align=right width="7%"><BR>- </TD>
    <TD align=left width="1%" ><BR></TD>
    <TD align=left width="1%" ><BR></TD>
    <TD align=right width="7%"><BR>- </TD>
    <TD align=left width="1%" ><BR></TD>
    <TD align=left width="1%" ><BR></TD>
    <TD align=right width="7%"><BR><B>376,798</B> </TD>
    <TD align=left width="1%" ><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Expiry of warrants </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>38,333 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>(38,333</TD>
    <TD align=left width="1%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B>-</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Stock-based compensation </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">7,039 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B>7,039</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Other comprehensive <BR>income </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>1,160 </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR><B>1,160</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Net loss </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">(102,679</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%"><B>(102,679</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B>)</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Balance, December 31, <BR>&nbsp;&nbsp; 2008
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>212,840,746 </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>1,321,110 </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>65,409 </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>145,614 </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>21,604 </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>(406</TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR>(111,543</TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="7%" bgColor=#e6efff><BR><B>1,441,788</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Shares issued </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">20,000 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">46 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B>46</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Stock-based compensation </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>1,332 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B>1,332</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Net income </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">12,079
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%"><B>12,079</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff><B>Balance, March 31, 2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>212,860,746 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>1,321,156 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>66,741 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>145,614 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>21,604 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>(406</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>(99,464</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff><B>1,455,245</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE></DIV>
<P>&nbsp;</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>See accompanying notes to the unaudited consolidated
      financial statements. </TD>
    <TD align=right width="15%">Page 3 </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_6></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B><font size="4">New Gold Inc.</font></B><font size="4">
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Consolidated statements of cash flows </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Three month periods ended March 31, </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in thousands of U.S. dollars) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Unaudited) </TD></TR></TABLE>
<P>&nbsp;</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" ><B></B></TD>
    <TD align=right width="12%"><STRONG>$</STRONG></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="12%">$</TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff><BR><B>Operating activities</B> </TD>
    <TD width="1%"  bgColor=#e6efff><BR></TD>
    <TD width="12%" bgColor=#e6efff><BR></TD>
    <TD width="2%"  bgColor=#e6efff><BR></TD>
    <TD width="1%"  bgColor=#e6efff><BR></TD>
    <TD width="12%" bgColor=#e6efff><BR></TD>
    <TD width="2%"  bgColor=#e6efff><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Net earnings </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>12,079</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">9,790 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Items not involving cash </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;Unrealized foreign exchange loss
    </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>2,748</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">1,007 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp;Depreciation and
      depletion </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>10,749</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>6,404 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;Stock option expense </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>1,332</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">2,561 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp;Future income
      and mining taxes </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>2,787</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1,420 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;Gain on redemption of long-term
      debt </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>(14,236</B></TD>
    <TD align=left width="2%" ><B>)</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp;Other </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>64</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>88 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;
      &nbsp;Change in non-cash working capital (Note 10) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>(7,802</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="12%">(2,876</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>7,721</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>18,394 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD><BR><B>Investing activities</B> </TD>
    <TD width="1%" ><BR></TD>
    <TD width="12%"><BR></TD>
    <TD width="2%" ><BR></TD>
    <TD width="1%" ><BR></TD>
    <TD width="12%"><BR></TD>
    <TD width="2%" ><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Mining interests </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(26,917</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(7,122</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Reclamation deposits </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>(212</B></TD>
    <TD align=left width="2%" ><B>)</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Receipt of accrued interest on
      investments </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>4,716</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;
      &nbsp;Proceeds from marketable securities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">32,440 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>(22,413</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>25,318 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD><BR><B>Financing activities</B> </TD>
    <TD width="1%" ><BR></TD>
    <TD width="12%"><BR></TD>
    <TD width="2%" ><BR></TD>
    <TD width="1%" ><BR></TD>
    <TD width="12%"><BR></TD>
    <TD width="2%" ><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Common shares issued </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>46</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Proceeds from short-term borrowing </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>-</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">4,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Repayment of short-term
      borrowings </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(7,000</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;
      &nbsp;Redemption of long-term debt </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>(25,575</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>(32,529</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>4,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"><BR>Effect of exchange rate
      changes on cash and cash <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; equivalents
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
      ><BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><BR><BR><B>(1,837</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
      ><BR><BR><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
      ><BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><BR><BR>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
      ><BR><BR></TD></TR>
  <TR>
    <TD bgColor=#e6efff><BR>(Decrease) increase in cash and cash equivalents
    </TD>
    <TD width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="12%" bgColor=#e6efff><BR><B>(49,058</B></TD>
    <TD width="2%"  bgColor=#e6efff><BR><B>)</B> </TD>
    <TD width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="12%" bgColor=#e6efff><BR>47,712 </TD>
    <TD width="2%"  bgColor=#e6efff><BR></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Cash and cash
      equivalents, beginning of period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>185,668</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">149,924 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff><B>Cash and cash equivalents, end of period</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>136,610</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>197,636 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD><BR>Cash and cash equivalents are comprised of </TD>
    <TD width="1%" ><BR></TD>
    <TD width="12%"><BR></TD>
    <TD width="2%" ><BR></TD>
    <TD width="1%" ><BR></TD>
    <TD width="12%"><BR></TD>
    <TD width="2%" ><BR></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Cash </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>39,640</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>23,811 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;
      &nbsp;Short-term money market instruments </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>96,970</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">173,825 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>136,610</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>197,636 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD><BR>Supplemental cash flow information (Note 10) </TD>
    <TD width="1%" ><BR></TD>
    <TD width="12%"><BR></TD>
    <TD width="2%" ><BR></TD>
    <TD width="1%" ><BR></TD>
    <TD width="12%"><BR></TD>
    <TD width="2%" ><BR></TD></TR></TABLE><br>
&nbsp;<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>See accompanying notes to the unaudited consolidated
      financial statements. </TD>
    <TD align=right width="15%">Page 4 </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B><font size="4">New Gold Inc.</font></B><font size="4">
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Notes to the consolidated financial statements
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">March 31, 2009 </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Tabular amounts expressed in thousands of U.S. dollars,
      except share and per share amounts) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>1.</B> </TD>
    <TD>
      <P align=justify><B>Description of business and nature of
      operations</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>On June 30, 2008 New Gold Inc. (&#147;NGI&#148;), Metallica
      Resources Inc. (&#147;Metallica&#148;) and Peak Gold Ltd. (&#147;Peak Gold&#148; or the
      &#147;Company&#148;) completed a business combination and the acquisition of assets
      (the &#147;Transaction&#148; see Note 4). In accordance with the provisions of the
      Canadian Institute of Chartered Accountants (&#147;CICA&#148;) Handbook Section
      1581, <I>Business Combinations</I>, Peak Gold has been identified as the
      acquirer for accounting purposes. As such, these interim consolidated
      financial statements are a continuation of the consolidated financial
      statements of Peak Gold, with the comparative information being that of
      Peak Gold. Following completion of the Transaction, Peak Gold is now known
      as New Gold Inc. (&#147;New Gold&#148;). References to NGI in these consolidated
      interim financial statements refer to transactions involving the pre-
      transaction public company New Gold Inc.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>In connection with the Transaction shareholders of Peak
      Gold exchanged one common share of Peak Gold for 0.1 of a New Gold common
      share and nominal cash consideration. All information related to common
      shares for the current and prior period has been restated to give effect
      to this share exchange.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company is a gold producer engaged in gold mining and
      related activities including acquisition, exploration, extraction,
      processing and reclamation. The Company&#146;s assets are comprised of the
      Amapari mine in Brazil, the Cerro San Pedro mine in Mexico, and the Peak
      mine in Australia. Significant development projects include the New Afton
      copper-gold project in Canada and a 30% interest in a copper-gold project
      in Chile.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>On March 4, 2009, the Company announced that it had
      entered into a definitive agreement to acquire all of the outstanding
      common shares of Western Goldfields Inc. (&#147;Western Goldfields&#148;). Under the
      agreement, the Company will exchange one common share of Western
      Goldfields and Cdn$0.0001 in cash for each common share of Western
      Goldfields (the &#147;Proposed Transaction&#148;). Upon completion of the Proposed
      Transaction, existing New Gold and Western Goldfields shareholder will own
      approximately 58% and 42% of the combined company, respectively, subject
      to approval of both companies and regulatory approval. The Proposed
      Transaction is expected to close on or about June 1, 2009.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>2.</B> </TD>
    <TD>
      <P align=justify><B>Summary of significant accounting
  policies</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>These unaudited interim consolidated financial statements
      have been prepared by the Company in accordance with Canadian generally
      accepted accounting principles (&#147;Canadian GAAP&#148;). The preparation of
      financial data is based on accounting principles and practices consistent
      with those used in the preparation of the audited annual financial
      statements. The accompanying unaudited interim financial statements should
      be read in conjunction with the Company&#146;s audited consolidated financial
      statements for the year ended December 31, 2008, as they do not contain
      all disclosures required by Canadian GAAP for annual financial
      statements.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><I>Basis of presentation and principles of
      consolidation</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>These unaudited interim consolidated financial statements
      include the accounts of the Company and all of its subsidiaries. In the
      opinion of the management, all adjustments (including normal recurring
      adjustments) necessary to present fairly the financial position as at
      March 31, 2009 and results of operations and comprehensive income (loss),
      shareholders&#146; equity and cash flows for all periods presented, have been
      made.</P></TD></TR></TABLE>
<P align=right>Page 5 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B><font size="4">New Gold Inc.</font></B><font size="4">
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Notes to the consolidated financial statements
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">March 31, 2009 </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Tabular amounts expressed in thousands of U.S. dollars,
      except share and per share amounts) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>2.</B> </TD>
    <TD>
      <P align=justify><B>Summary of significant accounting policies
      (continued)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><I>Basis of presentation and principles of consolidation
      (continued)</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The principal subsidiaries of the Company as of March 31,
      2009 are as follows:</P></TD></TR></TABLE><BR>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Subsidiary </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%">Interest </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD align=right width="15%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Metallica Resources Inc. </TD>
    <TD align=right width="15%" bgColor=#e6efff>100% </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Metallica Resources Alaska Inc. </TD>
    <TD align=right width="15%">100% </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Minera Metallica Resources Chile Limitada
    </TD>
    <TD align=right width="15%" bgColor=#e6efff>100% </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Minera San Xavier, S.A. de C.V. </TD>
    <TD align=right width="15%">100% </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Minera&#231;&#227;o Pedra Branca do Amapari Ltda
      (&#147;Amapari&#148;) </TD>
    <TD align=right width="15%" bgColor=#e6efff>100% </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Peak Gold Mines Pty </TD>
    <TD align=right width="15%">100% </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Sociedad Contractual Minera El Morro </TD>
    <TD align=right width="15%" bgColor=#e6efff>100%
</TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"></TD>
    <TD colSpan=3>
      <P align=justify>Variable interest entities (&#147;VIE&#146;s&#148;) as defined by the
      Accounting Standards Board in Accounting Guideline (&#147;AcG&#148;) 15,
      <I>Consolidation of Variable Interest Entities</I>, are entities in which
      equity investors do not have the characteristics of a &#147;controlling
      financial interest&#148; or there is not sufficient equity at risk for the
      entity to finance its activities without additional subordinated financial
      support. VIE&#146;s are subject to consolidation by the primary beneficiary who
      will absorb the majority of the entities&#146; expected losses and/or expected
      residual returns. The Company has determined that it does not have any
      investments that qualify as VIE&#146;s.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=3>
      <P align=justify>All intercompany transactions and balances are
      eliminated.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>3.</B> </TD>
    <TD colSpan=3>
      <P align=justify><B>Changes in accounting policies</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"><I>(a)</I> </TD>
    <TD colSpan=2>
      <P align=justify><I>Accounting policies implemented effective January 1,
      2009</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(i) </TD>
    <TD>
      <P align=justify>Goodwill and intangibles</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Effective January 1, 2009, the Company adopted Section
      3064, <I>Goodwill and Intangible Assets</I>, which replaces Section 3062,
      and establishes revised standards for recognition, measurement,
      presentation and disclosure of goodwill and intangible assets. Concurrent
      with the introduction of this standard, the CICA restricted the
      application of EIC 27, <I>Revenues and Expenditures in the Pre-operating
      Period </I>(&#147;EIC 27&#148;). The adoption of Section 3064 did not have a
      material impact on the Company&#146;s consolidated financial position and
      results of operations for the period ended March 31,
  2009.</P></TD></TR></TABLE>
<P align=right>Page 6 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B><font size="4">New Gold Inc.</font></B><font size="4">
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Notes to the consolidated financial statements
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">March 31, 2009 </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Tabular amounts expressed in thousands of U.S. dollars,
      except share and per share amounts) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>3.</B> </TD>
    <TD colSpan=3>
      <P align=justify><B>Changes in accounting policies
  (continued)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"><I>(a)</I> </TD>
    <TD colSpan=2>
      <P align=justify><I>Accounting policies implemented effective January 1,
      2009 (continued)</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(ii) </TD>
    <TD>
      <P align=justify>Effective January 1, 2009, the Company adopted CICA
      Handbook Sections 1582, <I>Business Combinations</I>, (&#147;Section 1582&#148;),
      1601, <I>Consolidated Financial Statements</I>, (&#147;Section 1601&#148;) and 1602,
      <I>Non-controlling Interests</I>, (&#147;Section 1602&#148;) which replaces CICA
      Handbook Sections 1581, <I>Business Combinations</I>, and 1600,
      <I>Consolidated Financial Statements</I>. Section 1582 establishes
      standards for the accounting for business combinations that is equivalent
      to the business combination accounting standard under International
      Financial Reporting Standards (&#147;IFRS&#148;). Section 1582 is applicable for the
      Company&#146;s business combinations with acquisition dates on or after January
      1, 2009. Section 1601 together with Section 1602 establishes standards for
      the preparation of consolidated financial statements. Section 1601 is
      applicable for the Company&#146;s interim and annual consolidated financial
      statements for its fiscal year beginning January 1, 2009. The adoptions of
      these sections did not have a material impact on the Company&#146;s
      consolidated financial position and results of operations for the period
      ended March 31, 2009. The Company will account for the Proposed
      Transaction with Western Goldfields under these sections.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"><I>(b)</I> </TD>
    <TD colSpan=2>
      <P align=justify><I>International Financial Reporting
  Standards</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>In February 2008, the CICA announced that Canadian GAAP
      for publicly accountable enterprises will be replaced by IFRS for fiscal
      years beginning on or after January 1, 2011. The conversion from Canadian
      GAAP to IFRS will be applicable to the Company&#146;s reporting for the first
      quarter of 2011 for which the current and comparative information will be
      prepared under IFRS. The Company expects the transition to IFRS to impact
      accounting policies, financial reporting, IT systems and processes as well
      as certain business activities. In first quarter of 2009, the Company
      completed a high- level impact assessment to identify key areas that will
      be affected by the conversion. A project team has been established to
      manage the conversion process, and a detailed IFRS conversion has been
      completed. The detailed analysis of the IFRS - Canadian GAAP differences,
      and the selection of accounting policy choices under IFRS has commenced
      and is expected to be completed by the end of fourth quarter of 2009. The
      Company will continuously monitor changes in IFRS leading up to the
      changeover date, and will updated its conversion plan as
  required.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  <TR>
    <TD vAlign=top width="5%"><B>4.</B> </TD>
    <TD colSpan=3>
      <P align=justify><B>Business combination and asset
  acquisition</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=3>
      <P align=justify><I>Acquisition of Metallica and NGI</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=3>
      <P align=justify>On May 9, 2008, the Company entered into an agreement to
      complete a business combination (the &#147;Transaction&#148;) with Metallica and
      NGI.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(i) </TD>
    <TD colSpan=2>
      <P align=justify>Metallica</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>The acquisition of Metallica has been accounted for as a
      purchase transaction. Shareholders of Metallica received 0.9 of a New Gold
      common share and nominal cash consideration for each one common share of
      Metallica.</P></TD></TR></TABLE>
<P align=right>Page 7 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_10></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B><font size="4">New Gold Inc.</font></B><font size="4">
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Notes to the consolidated financial statements
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">March 31, 2009 </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Tabular amounts expressed in thousands of U.S. dollars,
      except share and per share amounts) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>4.</B> </TD>
    <TD colSpan=2>
      <P align=justify><B>Business combination and asset acquisition
      (continued)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify><I>Acquisition of Metallica and NGI
  (continued)</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(i) </TD>
    <TD>
      <P align=justify>Metallica (continued)</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>87,447,821 common shares issued to Metallica shareholders
      were valued at $6.92 per share. The value per share was determined with
      reference to the share price of New Gold common shares for the two days
      prior to, the day of, and the two days subsequent to the date of the
      announcement on March 31, 2008. Holders of options, warrants or other
      convertible instruments of Metallica (&#147;Metallica equity instruments&#148;)
      exchanged such equity instrument for similar securities of New Gold at an
      exchange ratio of 0.9 and at a price equivalent to the original price
      divided by 0.9.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The final allocation of the purchase price based on the
      consideration paid and Metallica&#146;s net assets acquired is as
    follows:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="12%">$</TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Issuance of New Gold shares (87,447,821
      common shares) </TD>
    <TD align=left width="1%"  bgColor=#e6efff></TD>
    <TD align=right width="12%" bgColor=#e6efff>605,139 </TD>
    <TD align=left width="2%"  bgColor=#e6efff></TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Fair value of options issued </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">7,294 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Fair value of warrants issued </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>46,674 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Transaction costs
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">3,651
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Purchase consideration </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>662,758 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD><BR>Net assets acquired </TD>
    <TD width="1%" ><BR></TD>
    <TD width="12%"><BR></TD>
    <TD width="2%" ><BR></TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Net working capital acquired
      (including cash of $34,154) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>35,340 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;Mineral property, plant and equipment </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">814,352 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Other long-term assets </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>2,214 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;Long-term liabilities </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(3,684</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; &nbsp;Future income tax liability </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>(185,464</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">662,758 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">(ii) </TD>
    <TD>
      <P align=justify>NGI</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>This element of the Transaction has been accounted for as
      a purchase of assets and assumption of liabilities of NGI by Peak
    Gold.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>In accordance with the determination that Peak Gold is
      the accounting acquirer in this Transaction, the deemed consideration is
      the market value of the 37,005,717 NGI common shares and the fair value of
      options, warrants and convertible or exchangeable securities of NGI
      currently outstanding. As at June 30, 2008, there were options, warrants,
      convertible or exchangeable securities and other rights to acquire an
      aggregate of 30,678,500 common shares of NGI. The common shares of NGI
      have been valued at $7.82 per share, the share price of NGI as of June 30,
      2008, the closing date of the Transaction.</P></TD></TR></TABLE>
<P align=right>Page 8 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B><font size="4">New Gold Inc.</font></B><font size="4">
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Notes to the consolidated financial statements
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">March 31, 2009 </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Tabular amounts expressed in thousands of U.S. dollars,
      except share and per share amounts) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>4.</B> </TD>
    <TD colSpan=2>
      <P align=justify><B>Business combination and asset acquisition
      (continued)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify><I>Acquisition of Metallica and NGI
  (continued)</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(ii) </TD>
    <TD>
      <P align=justify>NGI (continued)</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The final allocation of the purchase price based on the
      consideration paid and NGI&#146;s net assets acquired is as
  follows:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="12%">$</TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Issuance of New Gold shares (37,005,717
      common shares) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>289,538 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Fair value of options issued </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">8,241 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Fair value of warrants issued </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>57,415 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Transaction costs
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">4,011
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Purchase consideration </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>359,205 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD><BR>Net working capital (including cash of $103,564) </TD>
    <TD width="1%" ><BR></TD>
    <TD align=right width="12%"><BR>85,687 </TD>
    <TD width="2%" ><BR></TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Mineral property, plant and equipment </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>537,720 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Other assets </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">94,631 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Long-term liabilities (Note 8) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(252,892</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Future income tax liability </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(84,337</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Convertible debentures </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>(21,604</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">359,205 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>For the purposes of these consolidated financial
      statements, the purchase consideration has been allocated to the fair
      value of assets acquired and liabilities assumed, including allocation of
      mining interests to depletable and non-depletable properties, based on
      management&#146;s best estimates and all available information at the time of
      the Transaction.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" ><STRONG>5.</STRONG> </TD>
    <TD vAlign=top colSpan=2>
      <P align=justify><B>Inventories and stockpiled
ore</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>March 31,</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">December 31, </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" ><B></B></TD>
    <TD align=right width="12%"><STRONG>$</STRONG></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="12%">$</TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff><BR>Supplies </TD>
    <TD width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="12%" bgColor=#e6efff><BR><B>12,379</B> </TD>
    <TD width="2%"  bgColor=#e6efff><BR></TD>
    <TD width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="12%" bgColor=#e6efff><BR>12,179 </TD>
    <TD width="2%"  bgColor=#e6efff><BR></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Work-in-process (a) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>6,303</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">5,008 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Heap leach ore (b) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>15,989</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>19,141 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Stockpiled ore (c) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>82</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">112 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Finished goods </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>2,537</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>2,962 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>37,290</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">39,402 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>(a)</I> </TD>
    <TD>
      <P align=justify><I>Work-in-process</I></P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Work-in-process is the stage between the product (gold,
      silver and copper) as it sits as a raw material (mined or stockpiled) and
      when it has been converted into the finished product (dor&#233; or
      concentrate).</P></TD></TR></TABLE>
<P align=right>Page 9 </P>
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noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B><font size="4">New Gold Inc.</font></B><font size="4">
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Notes to the consolidated financial statements
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">March 31, 2009 </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Tabular amounts expressed in thousands of U.S. dollars,
      except share and per share amounts) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>5.</B> </TD>
    <TD colSpan=2>
      <P align=justify><B>Inventories and stockpiled ore
  (continued)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"><I>(b)</I> </TD>
    <TD>
      <P align=justify><I>Heap leach ore</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The recovery of gold from certain oxide ores is achieved
      through the heap leaching process used at the Amapari and Cerro San Pedro
      mines. Under this method, ore is placed on leach pads where it is treated
      with a chemical solution which dissolves the gold contained in the
    ore.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"><I>(c)</I> </TD>
    <TD>
      <P align=justify><I>Stockpiled ore</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The low-grade stockpiled ore is located at Peak mines and
      is forecasted to be drawn down throughout the remainder of the life of the
      mines.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>The amount of inventories recognized in operating
      expenses for the period is $28.2 million (March 31, 2008 - $16.3 million).
      There were no reversals of write-downs during the quarter ended March 31,
      2009.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  <TR>
    <TD vAlign=top width="5%"><B>6.</B> </TD>
    <TD colSpan=2>
      <P align=justify><B>Investments</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>The Company owns Cdn$169 million of fair value of
      long-term asset backed notes that were issued by Master Asset Vehicle II
      (&#147;MAV2&#148;) and Master Asset Vehicle III (&#147;MAV3&#148;) special purpose entities
      that were created as a result of the restructuring of the Company&#146;s
      previous investment in third party asset backed commercial paper (&#147;ABCP&#148;)
      that had a face value of Cdn$171 million. When the ABCP matured but was
      not redeemed in 2007, it became the subject of a restructuring process
      that replaced the ABCP with long-term asset backed securities (&#147;New
      Notes&#148;). The restructuring was completed and the New Notes were issued on
      January 21, 2009.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>The restructuring process pooled all of the underlying
      assets from all the ABCP trusts with the exception of those assets
      designated as ineligible for pooling (&#147;Ineligible Assets&#148;) and those
      series of assets backed exclusively by traditional financial assets
      (&#147;Traditional Series&#148;).</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>ABCP relating to the pooled assets was replaced with four
      classes of asset backed notes named A1, A2, B and C in declining order of
      seniority. ABCP relating to Ineligible Assets and Traditional Series was
      replaced with new tracking notes whose characteristics are designed to
      track the performance of the particular assets of the series to which they
      correspond.</P></TD></TR></TABLE>
<P align=right>Page 10 </P>
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noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B><font size="4">New Gold Inc.</font></B><font size="4">
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Notes to the consolidated financial statements
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">March 31, 2009 </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Tabular amounts expressed in thousands of U.S. dollars,
      except share and per share amounts) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>6.</B> </TD>
    <TD>
      <P align=justify><B>Investments (continued)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company has estimated the fair value of ABCP at March
      31, 2009 using the methodology and assumptions outlined below. The fair
      value estimate of the New Notes to be received under the restructuring has
      been calculated based on information provided by the Pan Canadian Investor
      Committee, Ernst &amp; Young, the monitor of the restructuring, and
      Blackrock, the administrator of MAV2 and MAV3. The table below summarizes
      the Company&#146;s valuation.</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=right width="12%">Base case </TD>
    <TD align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=right width="12%">fair value </TD>
    <TD align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="12%">Expected </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Restructuring
      categories </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">Face
      value </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">estimate* </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="5%"
     >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="12%">maturity date </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right width="12%">$ </TD>
    <TD align=right width="12%">$ </TD>
    <TD align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right width="12%">(millions) </TD>
    <TD align=right width="12%">(millions) </TD>
    <TD align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>MAV 2 Notes </TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="5%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;A1 (rated A) </TD>
    <TD align=right width="12%">78.8 </TD>
    <TD align=right width="12%">45.3 </TD>
    <TD align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="12%">December 31, 2016 </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;A2 (rated A) </TD>
    <TD align=right width="12%" bgColor=#e6efff>27.1 </TD>
    <TD align=right width="12%" bgColor=#e6efff>14.5 </TD>
    <TD align=left width="5%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>December 31, 2016 </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;B </TD>
    <TD align=right width="12%">4.9 </TD>
    <TD align=right width="12%">0.9 </TD>
    <TD align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="12%">December 31, 2016 </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;C </TD>
    <TD align=right width="12%" bgColor=#e6efff>3.4 </TD>
    <TD align=right width="12%" bgColor=#e6efff>0.3 </TD>
    <TD align=left width="5%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>December 31, 2016 </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Traditional asset tracking notes <BR>&nbsp;&nbsp; MAV3 -
      Class 9 </TD>
    <TD align=right width="12%"><BR>7.5 </TD>
    <TD align=right width="12%"><BR>7.3 </TD>
    <TD align=left width="5%"  ><BR></TD>
    <TD align=left width="12%"><BR>April 12, 2009 </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Ineligible asset tracking notes <BR>&nbsp;&nbsp; MAV2 -
      Class 3/13/15 <BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><BR>12.2 <BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><BR>1.9 <BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="5%"
     bgColor=#e6efff ><BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="12%"
    bgColor=#e6efff><BR>December 20, 2012 to <BR>October 24, 2016 </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">133.9
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">70.2
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="5%"
     >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="12%">&nbsp;
    </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>* the range of fair values estimated by the Company varied
      between $60.3 million (Cdn$76 million) and $78.6 million (Cdn$99 million)
    </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>
      <P align=justify>The Company&#146;s valuation methodology entails gathering as
      many facts as possible about the New Notes, making assumptions and
      estimates where certain facts are unavailable, and then applying its best
      estimate of prospective buyers&#146; required yield for investing in such
      notes. These figures are then used to calculate the present value of the
      New Notes using required yield as the discount factor. Using a range of
      potential discount factors allows the Company to estimate a range of
      recoverable values. In several cases, the Company has been able to
      identify the net asset value of the assets supporting certain of its notes
      and has factored these values into its analysis. </P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>
      <P align=justify>The A1, A2 and traditional asset tracking notes comprise
      the major categories of the notes contemplated to be received totaling 79%
      of the face value of the original investments made and 86% of the fair
      value estimate of the Company&#146;s holdings, In the case of the A1 and A2
      notes, it is estimated that they will pay interest at a rate 0.5% less
      than the bankers&#146; acceptance (&#147;BA&#148;) rate and it is estimated that
      prospective buyers of these notes will require premium yields between 7%
      and 9% over the BA rate. </P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>
      <P align=justify>The traditional asset note is estimated to generate
      interest income of 0.5% above the BA rate and a prospective buyer of those
      notes is estimated to require a premium of 5% over the BA rate. </P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>
      <P align=justify>The Class B notes are not expected to pay any current
      interest until the Class A1 and A2 notes are paid in full, which is not
      anticipated until December 20, 2016. These notes, which will be
      subordinate to the Class A1 and A2 notes, will not receive a credit rating
      and it is expected that Class B notes will initially trade at less than
      15% of par value. </P></TD></TR></TABLE>
<P align=right>Page 11 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B><font size="4">New Gold Inc.</font></B><font size="4">
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Notes to the consolidated financial statements
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">March 31, 2009 </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Tabular amounts expressed in thousands of U.S. dollars,
      except share and per share amounts) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>6.</B> </TD>
    <TD>
      <P align=justify><B>Investments (continued)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Class C notes also will not pay any current interest
      and are subordinate to the Class B notes. In light of this subordination,
      the Class C notes are viewed as highly speculative with regard to ultimate
      payment of principal at maturity in 2016. In fact, there have already been
      two losses since the completion of the restructuring in January 2009. The
      Company understands that these losses represent approximately 1% of the
      total assets in MAV2 and will have a direct impact on the ultimate
      terminal value of the Class C notes. Accordingly, it is expected that
      Class C notes will trade at less than 3% of par value.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company will also receive three classes of ineligible
      tracking notes, two of which have direct exposure to the U.S. sub-prime
      mortgage market and one of which is backed by a leveraged super senior
      (&#147;LSS&#148;) credit default swap. The fair value of the sub-prime backed notes
      is less than 10% of par value while the LSS backed note has a fair value
      of approximately 30% of par value.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Based upon a sensitivity analysis of the assumptions
      used, the expected yield required by a potential investor remains the most
      significant assumption included in the fair value estimate. Based on this
      exercise the Company estimated that as at March 31, 2009 the range of
      potential values was between Cdn$76 million and Cdn$99 million. There can
      be no assurance that this estimate will be realized. Subsequent
      adjustments, which could be material, may be required in future reporting
      periods.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Subsequent to March 31, 2009, the Company received
      Cdn$9.4 million (99% of par value) as a return of capital on MAV3 Class 9
      ABCP. The carrying value of this note at March 31, 2009 is Cdn$9.3
      million.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company has designated the investments as
      held-for-trading financial instruments.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>7.</B> </TD>
    <TD>
      <P align=justify><B>Mining interests</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>March 31, 2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>Accumulated</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>depreciation</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>Net book</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>Cost</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>and depletion</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>value</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="10%"><STRONG>$</STRONG></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="10%"><STRONG>$</STRONG></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" ><B></B></TD>
    <TD align=right width="10%"><STRONG>$</STRONG></TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF">Mining properties </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF"><B>1,556,530</B> </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF"><B>99,280</B> </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF"><B>1,457,250</B> </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Plant and
      equipment </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>290,740</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>110,534</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>180,206</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bgcolor="#E6EFFF"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%" bgcolor="#E6EFFF"><B>1,847,270</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" bgcolor="#E6EFFF"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bgcolor="#E6EFFF"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%" bgcolor="#E6EFFF"><B>209,814</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" bgcolor="#E6EFFF"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bgcolor="#E6EFFF"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%" bgcolor="#E6EFFF"><B>1,637,456</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" bgcolor="#E6EFFF"
    >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">December 31, 2008 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">Accumulated </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">depreciation </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">Net book </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">Cost
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">and
      depletion </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">value
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="10%">$</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="10%">$</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="10%">$</TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF">Mining properties </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF">1,540,195 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF">98,518 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF">1,441,677 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Plant and
      equipment </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">280,720 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">103,636 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">177,084 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bgcolor="#E6EFFF"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%" bgcolor="#E6EFFF">1,820,915 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" bgcolor="#E6EFFF"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bgcolor="#E6EFFF"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%" bgcolor="#E6EFFF">202,154 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" bgcolor="#E6EFFF"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bgcolor="#E6EFFF"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%" bgcolor="#E6EFFF">1,618,761 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" bgcolor="#E6EFFF"
    >&nbsp;</TD></TR></TABLE>
<P align=right>Page 12 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_15></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B><font size="4">New Gold Inc.</font></B><font size="4">
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Notes to the consolidated financial statements
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">March 31, 2009 </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Tabular amounts expressed in thousands of U.S. dollars,
      except share and per share amounts) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>7.</B> </TD>
    <TD>
      <P align=justify><B>Mining interests (continued)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company capitalized $4.4 million (December 31, 2008 -
      $10.6 million) of interest in March 31, 2009 related to the New Afton
      project.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>A summary of net book value by property is as
    follows:</P></TD></TR></TABLE><BR>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="28%"
     colSpan=8>&nbsp;&nbsp;Mining properties</TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="7%" >&nbsp;</TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="7%" >&nbsp;</TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="7%" >&nbsp;</TD>
    <TD align=center width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Non- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Plant and </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">March 31, </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=right width="8%" colspan="2" >December 31, </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">Depletable </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">depletable </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">Total
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">equipment </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">2009
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="7%">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="7%">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="7%">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="7%">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="7%">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="7%">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Amapari </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>5,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>5,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>3,311 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>8,311 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>9,537 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Cerro San Pedro </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">255,518 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">84,822 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">340,340 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">52,576 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">392,916 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">399,630 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>El Morro project </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>378,932 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>378,932 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>378,932 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>377,430 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>New Afton project </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">583,913 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">583,913 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">70,704 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">654,617 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">632,085 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Peak Mines </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>5,251 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>116,980 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>122,231 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>53,012 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>175,243 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>172,710 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Other projects (a) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">26,835 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">26,835 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">26,835 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">26,746 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Corporate </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>602 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>602 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>623 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">260,769 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">1,196,482 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">1,457,251 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">180,205 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">1,637,456 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">1,618,761 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">(a) </TD>
    <TD width="5%">
      <P align=justify>(i) </P></TD>
    <TD  colSpan=2>Chile - El Morro Project</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD colSpan=3>
      <P align=justify>The El Morro copper-gold project consists of the La
      Fortuna and El Morro areas. Xstrata has a 70% interest in the El Morro
      project.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(ii) </TD>
    <TD colSpan=2>
      <P align=justify>Other projects include</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(1) </TD>
    <TD>
      <P align=justify>Chile - Rio Figueroa Project</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company has an option agreement with Sociedad
      Contractual Minera Los Potrillos (&#147;Potrillos&#148;) to acquire a 100% interest
      in a copper-gold exploration project referred to as the Rio Figueroa
      project.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(2) </TD>
    <TD>
      <P align=justify>USA - Liberty Bell</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company entered into an exploration agreement with
      the right to acquire the Liberty Bell gold project in central
    Alaska.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(3) </TD>
    <TD>
      <P align=justify>Canada - Ajax</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company owns a 100% interest in the Ajax-Python Claim
      Group.</P></TD></TR></TABLE>
<P align=right>Page 13 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_16></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B><font size="4">New Gold Inc.</font></B><font size="4">
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Notes to the consolidated financial statements
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">March 31, 2009 </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Tabular amounts expressed in thousands of U.S. dollars,
      except share and per share amounts) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>8.</B> </TD>
    <TD>
      <P align=justify><B>Long-term debt</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Long-term debt consists of the
  following:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right width="15%"><B>March 31,</B> </TD>
    <TD align=right width="15%">December 31, </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%">2008
    </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right width="15%"><B>$</B> </TD>
    <TD align=right width="15%">$ </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="15%">&nbsp; </TD>
    <TD width="15%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Senior secured notes (a) </TD>
    <TD align=right width="15%" bgColor=#e6efff><B>140,027</B> </TD>
    <TD align=right width="15%" bgColor=#e6efff>182,553 </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Subordinated
      convertible debentures (b) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%"><B>29,512</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%">29,834 </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff><B>169,539</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>212,387 </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>(a)</I> </TD>
    <TD>
      <P align=justify><I>Senior secured notes</I></P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The face value of the notes at March 31, 2009 was Cdn$187
      million (December 31, 2008 - Cdn$237 million).</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Interest is payable in arrears in equal semi-annual
      instalments on January 1 and July 1 in each year.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>During the period ended March 31, 2009, the Company
      acquired Cdn$50 million face value of its senior secured notes for
      consideration of Cdn$30 million for the noteholders. This results in a
      reduction of approximately Cdn$5 million per year in interest payments.
      The company recorded the gain on redemption of $14.2 million related to
      this transaction.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>(b)</I> </TD>
    <TD>
      <P align=justify><I>Subordinated convertible debentures</I></P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Interest is payable in arrears in equal semi-annual
      instalments on January 1 and July 1 in each year.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Debentures are subordinate to the notes and any
      secured indebtedness incurred subsequent to the issue of the
      Debentures.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Debenture Indenture requires the Company to comply
      with certain reporting and other covenants.</P></TD></TR></TABLE>
<P align=right>Page 14 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B><font size="4">New Gold Inc.</font></B><font size="4">
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Notes to the consolidated financial statements
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">March 31, 2009 </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Tabular amounts expressed in thousands of U.S. dollars,
      except share and per share amounts) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>9.</B> </TD>
    <TD colSpan=2>
      <P align=justify><B>Share capital</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"><I>(a)</I> </TD>
    <TD>
      <P align=justify><I>Authorized</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Unlimited number of voting common shares without par
      value</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"><I>(b)</I> </TD>
    <TD>
      <P align=justify><I>Stock options</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company has established a &#147;rolling&#148; stock option plan
      (the &#147;Plan&#148;) in compliance with the TSX Exchange&#146;s policy for granting
      stock options. Under the Plan, the maximum number of shares reserved for
      issuance may not exceed 10% of the total number of issued and outstanding
      common shares. The exercise price of each option shall not be less than
      the market price of the Company&#146;s stock at the date of grant. Options
      generally vest over three years and have a maximum term of seven years
      from date of grant.</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="15%">&nbsp; </TD>
    <TD align=right width="15%">Weighted </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="15%">&nbsp; </TD>
    <TD align=right width="15%">average </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right width="15%">Number of </TD>
    <TD align=right width="15%">exercise </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%">options </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%">price
    </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="15%">&nbsp; </TD>
    <TD align=right width="15%">Cdn$ </TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="15%">&nbsp; </TD>
    <TD width="15%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Balance, December 31, 2007 </TD>
    <TD align=right width="15%" bgColor=#e6efff>2,149,600 </TD>
    <TD align=right width="15%" bgColor=#e6efff>9.10 </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Granted </TD>
    <TD align=right width="15%">3,084,700 </TD>
    <TD align=right width="15%">6.92 </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Options assumed on acquisition of Metallica
    </TD>
    <TD align=right width="15%" bgColor=#e6efff>1,930,095 </TD>
    <TD align=right width="15%" bgColor=#e6efff>4.07 </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Options assumed on acquisition of NGI </TD>
    <TD align=right width="15%">2,828,500 </TD>
    <TD align=right width="15%">7.03 </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Exercised </TD>
    <TD align=right width="15%" bgColor=#e6efff>(424,090) </TD>
    <TD align=right width="15%" bgColor=#e6efff>3.39 </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Forfeited </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%">(578,917) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%">8.44
    </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Balance, December 31, 2008 </TD>
    <TD align=right width="15%" bgColor=#e6efff>8,989,888 </TD>
    <TD align=right width="15%" bgColor=#e6efff>6.94 </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Granted </TD>
    <TD align=right width="15%">2,306,000 </TD>
    <TD align=right width="15%">2.71 </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Forfeited </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>(272,184) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>5.10 </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Balance, March 31,
      2009 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%">11,023,704 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%">6.10
    </TD></TR></TABLE>
<P align=right>Page 15 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B><font size="4">New Gold Inc.</font></B><font size="4">
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Notes to the consolidated financial statements
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">March 31, 2009 </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Tabular amounts expressed in thousands of U.S. dollars,
      except share and per share amounts) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>9.</B> </TD>
    <TD colSpan=2>
      <P align=justify><B>Share capital (continued)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"><I>(b)</I> </TD>
    <TD>
      <P align=justify><I>Stock options (continued)</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The following table summarizes information about the
      stock options outstanding at March 31, 2009:</P></TD></TR></TABLE><BR>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right colSpan=2
    >Options outstanding </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="54%"
    colSpan=3>Options exercisable </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="18%" >&nbsp; </TD>
    <TD align=right width="18%" >Weighted </TD>
    <TD align=left width="18%">&nbsp; </TD>
    <TD align=left width="18%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left >&nbsp; </TD>
    <TD align=right width="18%" >Weighted </TD>
    <TD align=right width="18%" >average </TD>
    <TD align=left width="18%">&nbsp; </TD>
    <TD align=right width="18%" >Weighted </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=right >Number of </TD>
    <TD align=right width="18%" >average </TD>
    <TD align=right width="18%" >remaining </TD>
    <TD align=right width="18%">Number of </TD>
    <TD align=right width="18%" >average </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=right >stock options </TD>
    <TD align=right width="18%" >exercise </TD>
    <TD align=right width="18%" >contractual </TD>
    <TD align=right width="18%">options </TD>
    <TD align=right width="18%" >exercise </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      >outstanding </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="18%"
    >price </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="18%"
    >life </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="18%">exercisable </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="18%"
    >price </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left >&nbsp; </TD>
    <TD align=right width="18%" >Cdn$ </TD>
    <TD align=left width="18%" >&nbsp; </TD>
    <TD align=left width="18%">&nbsp; </TD>
    <TD align=right width="18%" >Cdn$ </TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD bgColor=#e6efff >&nbsp; </TD>
    <TD width="18%" bgColor=#e6efff >&nbsp; </TD>
    <TD width="18%" bgColor=#e6efff >&nbsp; </TD>
    <TD width="18%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="18%" bgColor=#e6efff >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=right >75,000 </TD>
    <TD align=right width="18%" >1.29 </TD>
    <TD align=right width="18%" >6.7 years </TD>
    <TD align=right width="18%">- </TD>
    <TD align=right width="18%" >- </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=right bgColor=#e6efff >184,500 </TD>
    <TD align=right width="18%" bgColor=#e6efff >1.70 </TD>
    <TD align=right width="18%" bgColor=#e6efff >0.7 years </TD>
    <TD align=right width="18%" bgColor=#e6efff>184,500 </TD>
    <TD align=right width="18%" bgColor=#e6efff >1.70 </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=right >2,337,500 </TD>
    <TD align=right width="18%" >2.71 </TD>
    <TD align=right width="18%" >6.8 years </TD>
    <TD align=right width="18%">31,500 </TD>
    <TD align=right width="18%" >2.71 </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=right bgColor=#e6efff >520,187 </TD>
    <TD align=right width="18%" bgColor=#e6efff >3.44 </TD>
    <TD align=right width="18%" bgColor=#e6efff >1.1 years </TD>
    <TD align=right width="18%" bgColor=#e6efff>520,187 </TD>
    <TD align=right width="18%" bgColor=#e6efff >3.44 </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=right >600,000 </TD>
    <TD align=right width="18%" >4.60 </TD>
    <TD align=right width="18%" >0.5 years </TD>
    <TD align=right width="18%">600,000 </TD>
    <TD align=right width="18%" >4.60 </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=right bgColor=#e6efff >1,000,818 </TD>
    <TD align=right width="18%" bgColor=#e6efff >5.48 </TD>
    <TD align=right width="18%" bgColor=#e6efff >3.0 years </TD>
    <TD align=right width="18%" bgColor=#e6efff>734,152 </TD>
    <TD align=right width="18%" bgColor=#e6efff >5.49 </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=right >1,822,000 </TD>
    <TD align=right width="18%" >6.42 </TD>
    <TD align=right width="18%" >2.9 years </TD>
    <TD align=right width="18%">1,053,333 </TD>
    <TD align=right width="18%" >6.55 </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=right bgColor=#e6efff >2,262,700 </TD>
    <TD align=right width="18%" bgColor=#e6efff >7.66 </TD>
    <TD align=right width="18%" bgColor=#e6efff >3.9 years </TD>
    <TD align=right width="18%" bgColor=#e6efff>839,233 </TD>
    <TD align=right width="18%" bgColor=#e6efff >7.37 </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=right >1,743,499 </TD>
    <TD align=right width="18%" >9.29 </TD>
    <TD align=right width="18%" >3.0 years </TD>
    <TD align=right width="18%">631,166 </TD>
    <TD align=right width="18%" >9.27 </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right bgColor=#e6efff
    >477,500 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="18%"
    bgColor=#e6efff >11.00 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="18%"
    bgColor=#e6efff >1.1 years </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="18%"
    bgColor=#e6efff>477,500 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="18%"
    bgColor=#e6efff >11.00 </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      >11,023,704 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="18%"
    >6.10 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="18%"
    >3.6 years </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="18%">5,071,571 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="18%"
    >6.54 </TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>On February 17, 2009, the Company granted 2,306,000 stock
      options to employees and directors. These options have an exercise price
      of Cdn$2.71. The options vest over a three year period and have a
      contractual life of seven years from date of grant.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>(c)</I> </TD>
    <TD>
      <P align=justify><I>Stock-based compensation</I></P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>For the period ended March 31, 2009, the Company recorded
      $1.3 million (March 31, 2008 - $2.6 million) as stock-based compensation
      expense and recorded this amount in contributed surplus. The value was
      determined using the Black-Scholes pricing model. A weighted average
      grant-date fair value of Cdn$1.44 (March 31, 2008 - Cdn$0.37) was
      calculated using the following assumptions: no dividends are to be paid;
      volatility of 50% (March 31, 2008 - 60%), risk free interest rate of 2.18%
      (March 31, 2008 - 3.57%); and expected life of 7 years (March 31, 2008 -
      3.5 years.).</P></TD></TR></TABLE>
<P align=right>Page 16 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_19></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B><font size="4">New Gold Inc.</font></B><font size="4">
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Notes to the consolidated financial statements
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">March 31, 2009 </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Tabular amounts expressed in thousands of U.S. dollars,
      except share and per share amounts) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>9.</B> </TD>
    <TD colSpan=2>
      <P align=justify><B>Share capital (continued)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"><I>(d)</I> </TD>
    <TD>
      <P align=justify><I>Share purchase warrants</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>A summary of the changes in share purchase warrants is
      presented below:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">Weighted </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">average </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">Number of </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">exercise </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">warrants </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">price
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">Cdn$ </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Balance, December 31, 2007 </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>21,750,000 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>15.00 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left>Issued </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">7,386,167 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">9.00 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Metallica share purchase warrants
      exercisable into New Gold shares </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>17,196,115 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>3.93 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left>NGI share purchase warrants </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">27,825,352 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">15.00 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Expired </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>(14,046,115</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>3.44 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left>Balance, December 31, 2008 </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">60,111,519 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">13.80 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Issued </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>24,513 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>15.00 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Balance, March 31,
      2009 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">60,136,032 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">13.80
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>The following table summarizes
information about outstanding share purchase warrants at March 31, 2009: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=right>Number </TD>
    <TD align=right width="30%">Exercise </TD>
    <TD align=left width="5%">&nbsp;</TD>
    <TD align=left width="25%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>of warrants </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="30%">prices </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">Expiry
      date </TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right width="30%">Cdn$ </TD>
    <TD align=left width="5%">&nbsp;</TD>
    <TD align=left width="25%">&nbsp; </TD></TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="30%">&nbsp; </TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="25%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=right bgColor=#e6efff>3,150,000 </TD>
    <TD align=right width="30%" bgColor=#e6efff>6.11 </TD>
    <TD align=left width="5%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="25%" bgColor=#e6efff>December 20, 2009 </TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=right>21,750,000 </TD>
    <TD align=right width="30%">15.00 </TD>
    <TD align=left width="5%">&nbsp;</TD>
    <TD align=left width="25%">April 3, 2012 </TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=right bgColor=#e6efff>7,386,167 </TD>
    <TD align=right width="30%" bgColor=#e6efff>9.00 </TD>
    <TD align=left width="5%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="25%" bgColor=#e6efff>November 28, 2012 </TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=right>4,150,000 </TD>
    <TD align=right width="30%">15.00 </TD>
    <TD align=left width="5%">&nbsp;</TD>
    <TD align=left width="25%">June 28, 2017 </TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      bgColor=#e6efff>23,699,865 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="30%"
    bgColor=#e6efff>15.00 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="5%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%"
    bgColor=#e6efff>June 28, 2017 </TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>60,136,032 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="30%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">&nbsp;
    </TD></TR></TABLE>
<P align=right>Page 17 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_20></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B><font size="4">New Gold Inc.</font></B><font size="4">
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Notes to the consolidated financial statements
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">March 31, 2009 </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Tabular amounts expressed in thousands of U.S. dollars,
      except share and per share amounts) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>9.</B> </TD>
    <TD colSpan=2>
      <P align=justify><B>Share capital (continued)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"><I>(e)</I> </TD>
    <TD>
      <P align=justify><I>Diluted earnings per share</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The following table sets forth the computation of diluted
      earnings per share:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="30%"
    colSpan=2>Three months ended March 31, </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%">2008
    </TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff><BR>Earnings
      available to common shareholders </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff><BR><B>12,079</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff><BR>$9,790 </TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD><BR><I>(in thousands)</I> </TD>
    <TD align=right width="15%"><BR></TD>
    <TD align=right width="15%"><BR></TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Basic weighted average number of shares
      outstanding </TD>
    <TD align=right width="15%" bgColor=#e6efff><B>212,848</B> </TD>
    <TD align=right width="15%" bgColor=#e6efff>76,978 </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Effect of dilutive
      securities Stock options </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%"><B>82</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%">26
  </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Diluted weighted average number of shares outstanding </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff><B>212,930</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>77,004 </TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD><BR>Earnings per share </TD>
    <TD align=right width="15%"><BR></TD>
    <TD align=right width="15%"><BR></TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Basic </TD>
    <TD align=right width="15%" bgColor=#e6efff><B>$0.06</B> </TD>
    <TD align=right width="15%" bgColor=#e6efff>$0.13 </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;Diluted </TD>
    <TD align=right width="15%"><B>$0.06</B> </TD>
    <TD align=right width="15%">$0.13 </TD></TR></TABLE>
<P align=justify style="margin-left: 10%">The following lists the equity securities excluded from the
computation of diluted earnings per share because the exercise prices exceeded
the average market value of the common shares of Cdn$2.32 (March 31,2008 -
Cdn$0.59) for the year.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="30%"
    colSpan=2>Three months ended March 31, </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%">2008
    </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left><I>(in thousands)</I> </TD>
    <TD align=left width="15%">&nbsp; </TD>
    <TD align=left width="15%">&nbsp; </TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="15%">&nbsp; </TD>
    <TD width="15%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Stock options </TD>
    <TD align=right width="15%" bgColor=#e6efff><B>10,764</B> </TD>
    <TD align=right width="15%" bgColor=#e6efff>3,033 </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Share purchase warrants </TD>
    <TD align=right width="15%"><B>60,136</B> </TD>
    <TD align=right width="15%">29,136 </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Convertible debentures </TD>
    <TD align=right width="15%" bgColor=#e6efff><B>55,000</B> </TD>
    <TD align=right width="15%" bgColor=#e6efff>- </TD></TR></TABLE>
<P align=right>Page 18 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_21></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B><font size="4">New Gold Inc.</font></B><font size="4">
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Notes to the consolidated financial statements
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">March 31, 2009 </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Tabular amounts expressed in thousands of U.S. dollars,
      except share and per share amounts) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>10.</B> </TD>
    <TD>
      <P align=justify><B>Supplemental cash flow
  information</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="27%"
    colSpan=4>Three months ended March 31, </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" ><B></B></TD>
    <TD align=right width="12%"><STRONG>$</STRONG></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="12%">$</TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Change in non-cash working capital </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;Accounts receivable </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>(8,366</B></TD>
    <TD align=left width="2%" ><B>)</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(3,800</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Inventories and stockpiled ore
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>2,524</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>2,248 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;Accounts payable and accrued liabilities </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>(3,384</B></TD>
    <TD align=left width="2%" ><B>)</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(1,514</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; &nbsp;Prepaids and other </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>1,424</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>190 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>(7,802</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="12%">(2,876</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff><BR>Operating activities included the following
      payments </TD>
    <TD width="1%"  bgColor=#e6efff><BR></TD>
    <TD width="12%" bgColor=#e6efff><BR></TD>
    <TD width="2%"  bgColor=#e6efff><BR></TD>
    <TD width="1%"  bgColor=#e6efff><BR></TD>
    <TD width="12%" bgColor=#e6efff><BR></TD>
    <TD width="2%"  bgColor=#e6efff><BR></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;Interest paid </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>34</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Income taxes paid </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>1,661</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1,880 </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Non-cash investing activities includes $1,050
      representing the Company&#146;s share of contributions to the El Morro Project
      funded by Xstrata.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>11.</B> </TD>
    <TD>
      <P align=justify><B>Segmented information</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company manages its operations by geographical
      location. These reportable operating segments are summarized in the table
      below:</P></TD></TR></TABLE><BR>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="7%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="7%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="27%"
    colSpan=7><B>Three months ended March 31, 2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">(Loss) </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Depletion </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">earnings </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Expenditures </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">and </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">from </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Total </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">for mining </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">Revenues </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">depreciation </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">operations </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">assets
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">interest </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">$</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">$</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">$</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">$</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">$</TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Brazil </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>14,440 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>2,270 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>(94</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>39,835 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>509 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Chile <SUP>(2)</SUP> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">377,908 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">452 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Canada <SUP>(2)</SUP> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>8 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>(9</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>656,533 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>20,399 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Mexico <SUP>(2)</SUP> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">21,251 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">6,124 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">1,234 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">472,383 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">886 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Australia </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>23,074 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>2,321 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>9,168 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>185,418 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>4,666 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Other
      <SUP>(1)</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">26 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="7%">(4,247</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">192,323 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">5 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>58,765 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>10,749 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>6,052 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>1,924,400 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>26,917 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(1)</SUP> </TD>
    <TD>
      <P align=justify>Other includes corporate balances and intercompany
      eliminations and exploration properties</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(2)</SUP> </TD>
    <TD>
      <P align=justify>Segments acquired on June 30, 2008 (Note
  1)</P></TD></TR></TABLE>
<P align=right>Page 19 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_22></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B><font size="4">New Gold Inc.</font></B><font size="4">
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Notes to the consolidated financial statements
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">March 31, 2009 </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Tabular amounts expressed in thousands of U.S. dollars,
      except share and per share amounts) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>11.</B> </TD>
    <TD>
      <P align=justify><B>Segmented information
(continued)</B></P></TD></TR></TABLE><BR>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="7%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="7%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="27%"
    colSpan=7>Three months ended March 31, 2008 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">(Loss) </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Depletion </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">earnings </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Expenditures </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">and </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">from </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Total </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">for mining </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">Revenues </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">depreciation </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">operations </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">assets
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">interest </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="7%">$</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="7%">$</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="7%">$</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="7%">$</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="7%">$</TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Brazil </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>18,767 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>4,010 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>(327</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>218,777 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>2,152 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Chile <SUP>(2)</SUP> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Canada <SUP>(2)</SUP> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Mexico <SUP>(2)</SUP> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Australia </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>37,454 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>2,373 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>17,144 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>194,958 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>4,968 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Other
      <SUP>(1)</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">21 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="7%">(3,338</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">176,956 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">2 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>56,221 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>6,404 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>13,479 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>590,691 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff>7,122 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(1)</SUP> </TD>
    <TD>
      <P align=justify>Other includes corporate balances and intercompany
      eliminations and exploration properties</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(2)</SUP> </TD>
    <TD>
      <P align=justify>Segments acquired on June 30, 2008 (Note
  1)</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The Company sells all of its
concentrate production to one customer under an off-take contract. The loss of
this customer or unexpected termination of the off-take contract could have a
material adverse effect on the Company&#146;s results of operations, financial
condition and cash flows. The Company&#146;s contract with this customer will
terminate in the second quarter of 2009. The Company is currently reviewing
contract proposals for marketing of its concentrate commencing after the
termination of existing contracts.</P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company is not economically
dependent on a limited number of customers for the sale of its gold because gold
can be sold through numerous commodity market traders worldwide. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company has four customers that
account for 100% of the concentrate and dor&#233; sales revenue. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left><I>Metal sales</I> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="30%"
    colSpan=2>Three months ended March 31, </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Customer </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%">2008
    </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right width="15%"><B>$</B> </TD>
    <TD align=right width="15%">$ </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="15%">&nbsp; </TD>
    <TD width="15%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>1 </TD>
    <TD align=right width="15%" bgColor=#e6efff><B>21,251</B> </TD>
    <TD align=right width="15%" bgColor=#e6efff>- </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>2 </TD>
    <TD align=right width="15%"><B>14,440</B> </TD>
    <TD align=right width="15%">18,767 </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>3 </TD>
    <TD align=right width="15%" bgColor=#e6efff><B>12,087</B> </TD>
    <TD align=right width="15%" bgColor=#e6efff>17,460 </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>4 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%"><B>10,987</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%">19,994 </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Total </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff><B>58,765</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>56,221 </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>% of total metal
      sales </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%"><B>100%</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%">100%
    </TD></TR></TABLE>
<P align=right>Page 20 </P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B><font size="4">New Gold Inc.</font></B><font size="4">
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">Notes to the consolidated financial statements
    </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="3">March 31, 2009 </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Tabular amounts expressed in thousands of U.S. dollars,
      except share and per share amounts) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>12.</B> </TD>
    <TD colSpan=2>
      <P align=justify><B>Commitments and contingencies</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>The Company has entered into a number of contractual
      commitments related to equipment orders to purchase long lead items or
      critical pieces of mining equipment and operating leases for its
      operations. At March 31, 2009, these commitments totaled $19.4 million and
      are expected to fall due over the next 12 months.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(b) </TD>
    <TD>
      <P align=justify>The Company is from time to time involved in various
      claims, legal proceedings and complaints arising in the ordinary course of
      business. The Company has received notice that legal claims in the amount
      of approximately 76.9 million reals ($33.4 million) have been filed in
      Brazilian courts against the Company&#146;s subsidiary, Minera&#231;&#227;o Pedra Branca
      do Amapari Ltda (&#147;MPBA&#148;). The claims allege that MPBA has adversely
      impacted the quality of William Creek causing economic loss and health
      concerns. The Company believes that these claims are unfounded and intends
      to vigorously defend against them. The Company cannot reasonably predict
      the likelihood or outcome of these actions. Other than the preceding, the
      Company does not believe that adverse decisions in any other pending or
      threatened proceedings related to any matter, or any amount which may be
      required to be paid by reason thereof, will have a material effect on the
      financial condition or future results of operations of the
  Company.</P></TD></TR></TABLE>
<P align=right>Page 21 </P>
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<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>ngd051209exh992.htm
<DESCRIPTION>EXHIBIT 99.2
<TEXT>



<HTML>
<HEAD>
   <TITLE>New Gold Inc.: Exhibit 99.2 - Prepared by TNT Filings Inc.</TITLE>

</HEAD>

<BODY style="font-size:10pt;">

<div style="border-top-style: solid; border-top-width: 1; padding-top: 1">
  <hr color="#000000" size="5">
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<A name=page_1></A>
<P align=right><b>Exhibit 99.2</b></P>
<P align=justify><B><font size="3">NEW GOLD INC.</font><BR></B><B>Management&#146;s Discussion and
Analysis<BR></B>Three Months Ended March 31, 2009 <BR>(in United
States dollars, except where noted) </P>
<P align=justify><I>This Management&#146;s Discussion and Analysis should be read in
conjunction with New Gold Inc.&#146;s unaudited interim consolidated financial
statements for the quarter ended March 31, 2009 <I>and related notes thereto
which have been prepared in accordance with Canadian Generally Accepted
Accounting Principles (&#147;GAAP&#148;). This Management&#146;s Discussion and Analysis
contains &#147;forward-looking statements&#148; that are subject to risk factors set out
in a cautionary note contained herein. The reader is cautioned not to place
undue reliance on forward-looking statements. All figures are in United States
dollars, tabular amounts are in thousands, unless otherwise noted. This
Management&#146;s Discussion and Analysis has been prepared as of May 12, 2009.
Additional information relating to the Company, including the Company&#146;s Annual
Information Form, is available on SEDAR at
</I><U>www.sedar.com</U>.</I><I></I></P>
<P align=justify><B>First Quarter Financial / Operation Highlights</B><BR></P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-top: 0; margin-bottom: 0"><B>Gold production of 54,938 ounces </B>
  <LI>
  <p style="margin-top: 0; margin-bottom: 0"><B>Gold sales of 55,397 ounces </B>
  <LI>
  <p style="margin-top: 0; margin-bottom: 0"><B>Total cash cost<SUP>(1) </SUP>of $513 per ounce (net of
  by-product-sales) </B>
  <LI>
  <p style="margin-top: 0; margin-bottom: 0"><B>Net earnings of $12.1 million </B>
  <LI>
  <p style="margin-top: 0; margin-bottom: 0"><B>Cash and cash equivalents of $137 million </B>
  <LI>
  <p style="margin-top: 0; margin-bottom: 0"><B>Reduced long term debt position by Cdn$50 million with the buy back of
  a portion of Senior Secured Notes for cash consideration of Cdn$30
  million </B>
  <LI>
  <p style="margin-top: 0; margin-bottom: 0"><B>On January 2, 2009 Amapari was placed on temporary care and maintenance
  due to depletion of ore suitable for treatment at the existing facilities </B>
  <LI>
  <p style="margin-top: 0; margin-bottom: 0"><B>On March 4, 2009 the Company announced a business combination with
  Western Goldfields Inc. (&#147;Western Goldfields&#148;). Highlights of the proposed
  transaction include stronger cash flow to fund the New Afton project and
  diversified gold production expected to grow to over 400,000 ounces by 2012.
  </B></LI></UL>
<P align=justify style="margin-left: 30pt">(1) &#147;Total cash cost&#148; figures are calculated in accordance with
a standard developed by The Gold Institute, which was a worldwide association of
suppliers of gold and gold products and included leading North American gold
producers. The Gold Institute ceased operations in 2002, but the standard is the
accepted standard of reporting cash cost of production in North America.
Adoption of the standard is voluntary and the cost measures presented may not be
comparable to other similarly titled measures of other companies. The Company
reports total cash cost on a sales basis. Total cash cost includes mine site
operating costs such as mining, processing, administration, royalties and
production taxes, but is exclusive of amortization, reclamation, capital and
exploration costs and net of by-product sales. Total cash cost is then divided
by ounces sold to arrive at the total cash cost. The measure, along with sales,
is considered to be a key indicator of a company&#146;s ability to generate operating
earnings and cash flow from its mining operations. This data is furnished to
provide additional information and is a non-GAAP measure. It should not be
considered in isolation as a substitute for measures of performance prepared in
accordance with GAAP and is not necessarily indicative of operating costs
presented under GAAP.<B> </B></P>
<P align=center>1<BR></P>
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<A name="page_2"></A>

<P align="justify">
<B><I>Background</I></B><BR>
</P>
<P align="justify">
New Gold Inc. (&#147;New Gold&#148;) is an intermediate gold producer with a portfolio of global assets in Mexico, Canada, Australia, Brazil, Chile and the United States (Alaska). The Company&#146;s operating assets consist of the Cerro San Pedro
(&#147;CSP&#148;) gold-silver mine in Mexico, the Peak gold-copper mine (&#147;Peak Mines&#148;) in Australia and the Amapari gold mine in Brazil (&#147;Amapari&#148;). Significant development projects include the New Afton copper-gold project in
Canada (&#147;New Afton&#148;) and a 30% interest in the El Morro copper-gold project in Chile (&#147;El Morro&#148;). New Gold has a clear vision of becoming a million ounce gold producer, with a lower than industry average cash cost per ounce by
2012. New Gold will achieve this vision through:</P>
<UL style="text-align:justify;">
<LI>
<p style="margin-top: 0; margin-bottom: 0">Delivering on operational targets (safety, cost, production and, environment and social responsibility);</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">Maintaining a strong financial position;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">Internal growth through project development and continuous improvement of our existing operations; and</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">External growth through continued consolidation of junior gold producers.</LI>
</UL>
<P align="justify">
New Gold is working towards maximizing shareholder value through diversified production, maintaining a reduced risk profile and enhancing growth potential. The board of directors, management and the employees of New Gold are committed to
achieving this in a socially responsible and sustainable manner. </P>
<P align="justify">
<I>Corporate Developments</I><BR>
</P>
<P align="justify">
<I>Proposed transaction with Western Goldfields</I><BR>
</P>
<P align="justify">
On March 4, 2009, the Company announced that it had entered a definitive agreement to acquire all the outstanding common shares of Western Goldfields. Under the agreement, the company will exchange one common share and Cdn&#36;0.0001 in cash for
each common share of Western Goldfields (the &#147;Proposed Transaction&#148;). Upon completion of the Proposed Transaction, existing New Gold and Western Goldfields shareholders will own approximately 58% and 42% of the combined company,
respectively. The Proposed Transaction is subject to regulatory and shareholder approval. If approved, the business combination is expected to close on or about June 1, 2009.</P>
<P align="justify">
<B><I>Amapari</I></B><BR>
</P>
<P align="justify">
On January 2, 2009, the Company placed Amapari on temporary care and maintenance due to depletion of ore suitable for treatment at the existing facilities. The Company determined that it would be more cost-effective to process the remaining oxide
ore with the underlying sulphide resource in a new process facility. Leaching of the material stacked in the fourth quarter has now been completed and leach pads are in the final stage of neutralization. All environmental monitoring and ongoing
exploration remediation programs will continue during this period and beyond, as will ongoing exploration programs on the Company&#146;s concessions at Amapari. The Company is evaluating a recently completed Preliminary Assessment (&#147;PE&#148;)
on the economics of exploiting the resources at Amapari with a conventional crush/grind/carbon-in-leach (&#147;CIL&#148;) mill. Considering the large land package in a geologically interesting setting and the occurrence of several interesting targets, the Company is also investigating other strategic alternatives for the project. This analysis is expected to be complete in the second quarter.<B> </B></P>
<P align="center">
2</P>

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<A name="page_3"></A>


<P><STRONG><EM>Selected Quarterly Financial Information
</EM></STRONG><BR><STRONG><STRONG><STRONG><STRONG><STRONG><STRONG><STRONG><STRONG><STRONG><STRONG><STRONG><STRONG><STRONG><STRONG><STRONG><STRONG>(US
dollars in thousands, except per share amounts and per ounce
amounts)<BR></STRONG></STRONG></STRONG></STRONG></STRONG></STRONG></STRONG></STRONG></STRONG></STRONG></STRONG></STRONG></STRONG></STRONG></STRONG></STRONG><BR></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 height="576">

  <TR vAlign=top>
    <TD align=center colSpan=25 height="17"><b><FONT size=2>Three Months Ended <SUP>(1)</SUP></FONT>&nbsp;
    </b></TD>
    </TR>
  <TR vAlign=top>
    <TD align=left height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="1%" bgcolor="#E0E0E0" height="15">&nbsp;</TD>
    <TD align=right width="8%" bgcolor="#E0E0E0" height="15"><b><FONT size=2>Q1 </FONT>
    </b></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><b><FONT size=2>Q4 </FONT></b></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><b><FONT size=2>Q3 </FONT></b></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><b><FONT size=2>Q2 </FONT></b></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><b><FONT size=2>Q1 </FONT></b></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><b><FONT size=2>Q4 </FONT></b></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><b><FONT size=2>Q3 </FONT></b></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><b><FONT size=2>Q2 </FONT></b></TD>
    <TD align=left width="2%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left height="16"><FONT
      size=2><B>Operating Data </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" bgcolor="#E0E0E0" height="16">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%" bgcolor="#E0E0E0" height="16">
    <b><FONT
      size=2>2009 </FONT></b></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%" height="16">
    <b><FONT
      size=2>2008 </FONT></b></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="2%" height="16"><b><SUP>(3) </SUP></b></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%" height="16">
    <b><FONT
      size=2>2008 </FONT></b></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%" height="16">
    <b><FONT
      size=2>2008 </FONT></b></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%" height="16">
    <b><FONT
      size=2>2008 </FONT></b></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%" height="16">
    <b><FONT
      size=2>2007 </FONT></b></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%" height="16">
    <b><FONT
      size=2>2007 </FONT></b></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%" height="16">
    <b><FONT
      size=2>2007 </FONT></b></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" height="16"></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15"><FONT size=2>Gold (ounces) </FONT></TD>
    <TD align=left width="1%" bgcolor="#E0E0E0" height="15">&nbsp;</TD>
    <TD align=left width="8%" bgcolor="#E0E0E0" height="15"><b><FONT size=2>&nbsp; </FONT>
    </b></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15"><FONT size=2>&#150; Produced </FONT></TD>
    <TD align=left width="1%" bgcolor="#E0E0E0" height="15">&nbsp;</TD>
    <TD align=right width="8%" bgcolor="#E0E0E0" height="15"><b><FONT size=2>54,938 </FONT>
    </b></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>78,950 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>68,801 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>42,052 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>43,300 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>53,430 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>53,900 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>42,500 </FONT></TD>
    <TD align=left width="2%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15"><FONT size=2>&#150; Sold </FONT></TD>
    <TD align=left width="1%" bgcolor="#E0E0E0" height="15">&nbsp;</TD>
    <TD align=right width="8%" bgcolor="#E0E0E0" height="15"><b><FONT size=2>55,397 </FONT>
    </b></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>78,194 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>67,156 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>40,540 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>51,700 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>52,351 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>55,000 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>48,000 </FONT></TD>
    <TD align=left width="2%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD align=left height="13"><FONT size=2>Copper (thousands of </FONT></TD>
    <TD align=left width="1%" bgcolor="#E0E0E0" height="13">&nbsp;</TD>
    <TD align=left width="8%" bgcolor="#E0E0E0" height="13"><b><FONT size=2>&nbsp; </FONT>
    </b></TD>
    <TD align=left width="2%" height="13"></TD>
    <TD align=left width="1%" height="13"></TD>
    <TD align=left width="8%" height="13"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="13"></TD>
    <TD align=left width="1%" height="13"></TD>
    <TD align=left width="8%" height="13"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="13"></TD>
    <TD align=left width="1%" height="13"></TD>
    <TD align=left width="8%" height="13"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="13"></TD>
    <TD align=left width="1%" height="13"></TD>
    <TD align=left width="8%" height="13"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="13"></TD>
    <TD align=left width="1%" height="13"></TD>
    <TD align=left width="8%" height="13"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="13"></TD>
    <TD align=left width="1%" height="13"></TD>
    <TD align=left width="8%" height="13"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="13"></TD>
    <TD align=left width="1%" height="13"></TD>
    <TD align=left width="8%" height="13"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="13"></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15"><FONT size=2>pounds) </FONT></TD>
    <TD align=left width="1%" bgcolor="#E0E0E0" height="15">&nbsp;</TD>
    <TD align=left width="8%" bgcolor="#E0E0E0" height="15"><b><FONT size=2>&nbsp; </FONT>
    </b></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15"><FONT size=2>&#150; Produced </FONT></TD>
    <TD align=left width="1%" bgcolor="#E0E0E0" height="15">&nbsp;</TD>
    <TD align=right width="8%" bgcolor="#E0E0E0" height="15"><b><FONT size=2>3,812 </FONT>
    </b></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>2,474 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>2,365 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>1,237 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>2,172 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>1,746 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>1,932 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>1,748 </FONT></TD>
    <TD align=left width="2%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15"><FONT size=2>&#150; Sold </FONT></TD>
    <TD align=left width="1%" bgcolor="#E0E0E0" height="15">&nbsp;</TD>
    <TD align=right width="8%" bgcolor="#E0E0E0" height="15"><b><FONT size=2>2,751 </FONT>
    </b></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>2,634 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>1,715 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>855 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>2,551 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>2,469 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>1,908 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>2,776 </FONT></TD>
    <TD align=left width="2%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15"><FONT size=2>Silver (ounces) </FONT></TD>
    <TD align=left width="1%" bgcolor="#E0E0E0" height="15">&nbsp;</TD>
    <TD align=left width="8%" bgcolor="#E0E0E0" height="15"><b><FONT size=2>&nbsp; </FONT>
    </b></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15"><FONT size=2>&#150; Produced </FONT></TD>
    <TD align=left width="1%" bgcolor="#E0E0E0" height="15">&nbsp;</TD>
    <TD align=right width="8%" bgcolor="#E0E0E0" height="15"><b><FONT size=2>427,439 </FONT>
    </b></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>290,520 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>282,055 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>283,749 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>228,623 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>194,539 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>N/A </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>N/A </FONT></TD>
    <TD align=left width="2%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15"><FONT size=2>&#150; Sold </FONT></TD>
    <TD align=left width="1%" bgcolor="#E0E0E0" height="15">&nbsp;</TD>
    <TD align=right width="8%" bgcolor="#E0E0E0" height="15"><b><FONT size=2>372,219 </FONT>
    </b></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>289,781 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>305,430 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>300,728 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>203,973 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>187,430 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>N/A </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>N/A </FONT></TD>
    <TD align=left width="2%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15"><FONT size=2>Average realized </FONT></TD>
    <TD align=left width="1%" bgcolor="#E0E0E0" height="15">&nbsp;</TD>
    <TD align=left width="8%" bgcolor="#E0E0E0" height="15"><b><FONT size=2>&nbsp; </FONT>
    </b></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15"><FONT size=2>prices </FONT></TD>
    <TD align=left width="1%" bgcolor="#E0E0E0" height="15">&nbsp;</TD>
    <TD align=left width="8%" bgcolor="#E0E0E0" height="15"><b><FONT size=2>&nbsp; </FONT>
    </b></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15"><FONT size=2>&#150; Gold ($/ ounce) </FONT></TD>
    <TD align=left width="1%" bgcolor="#E0E0E0" height="15"><b><FONT size=2>$</FONT></b></TD>
    <TD align=right width="8%" bgcolor="#E0E0E0" height="15"><b><FONT size=2>898 </FONT>
    </b></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>792 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>870 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>898 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>933 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>793 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>697 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>662 </FONT></TD>
    <TD align=left width="2%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15"><FONT size=2>&#150; Copper ($/ pound) </FONT></TD>
    <TD align=left width="1%" bgcolor="#E0E0E0" height="15"><b><FONT size=2>$</FONT></b></TD>
    <TD align=right width="8%" bgcolor="#E0E0E0" height="15"><b><FONT size=2>1.70 </FONT>
    </b></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>1.32 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>2.76 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>4.27 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>3.75 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>2.99 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>3.47 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>3.19 </FONT></TD>
    <TD align=left width="2%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15"><FONT size=2>&#150; Silver ($/ ounce) </FONT></TD>
    <TD align=left width="1%" bgcolor="#E0E0E0" height="15"><b><FONT size=2>$</FONT></b></TD>
    <TD align=right width="8%" bgcolor="#E0E0E0" height="15"><b><FONT size=2>12.54 </FONT>
    </b></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>10.09 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>15.24 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>17.13 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>17.62 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>14.21 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>N/A </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=right width="8%" height="15"><FONT size=2>N/A </FONT></TD>
    <TD align=left width="2%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15"><FONT size=2>Total cash cost per </FONT></TD>
    <TD align=left width="1%" bgcolor="#E0E0E0" height="15">&nbsp;</TD>
    <TD align=left width="8%" bgcolor="#E0E0E0" height="15"><b><FONT size=2>&nbsp; </FONT>
    </b></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"></TD>
    <TD align=left width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD align=left height="17"><FONT size=2>gold ounce sold <SUP>(2) </SUP></FONT></TD>
    <TD align=left width="1%" bgcolor="#E0E0E0" height="17"><b><FONT size=2>$</FONT></b></TD>
    <TD align=right width="8%" bgcolor="#E0E0E0" height="17"><b><FONT size=2>513 </FONT>
    </b></TD>
    <TD align=left width="2%" height="17"></TD>
    <TD align=left width="1%" height="17"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="17"><FONT size=2>576 </FONT></TD>
    <TD align=left width="2%" height="17"></TD>
    <TD align=left width="1%" height="17"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="17"><FONT size=2>566 </FONT></TD>
    <TD align=left width="2%" height="17"></TD>
    <TD align=left width="1%" height="17"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="17"><FONT size=2>742 </FONT></TD>
    <TD align=left width="2%" height="17"></TD>
    <TD align=left width="1%" height="17"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="17"><FONT size=2>427 </FONT></TD>
    <TD align=left width="2%" height="17"></TD>
    <TD align=left width="1%" height="17"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="17"><FONT size=2>398 </FONT></TD>
    <TD align=left width="2%" height="17"></TD>
    <TD align=left width="1%" height="17"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="17"><FONT size=2>303 </FONT></TD>
    <TD align=left width="2%" height="17"></TD>
    <TD align=left width="1%" height="17"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="17"><FONT size=2>343 </FONT></TD>
    <TD align=left width="2%" height="17"></TD></TR>
  <TR>
    <TD height="15"><b><FONT size=2>&nbsp; </FONT></b></TD>
    <TD width="1%" bgcolor="#E0E0E0" height="15">&nbsp;</TD>
    <TD width="8%" bgcolor="#E0E0E0" height="15"><b><FONT size=2>&nbsp; </FONT>
    </b></TD>
    <TD width="2%" height="15"></TD>
    <TD width="1%" height="15"></TD>
    <TD width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%" height="15"></TD>
    <TD width="1%" height="15"></TD>
    <TD width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%" height="15"></TD>
    <TD width="1%" height="15"></TD>
    <TD width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%" height="15"></TD>
    <TD width="1%" height="15"></TD>
    <TD width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%" height="15"></TD>
    <TD width="1%" height="15"></TD>
    <TD width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%" height="15"></TD>
    <TD width="1%" height="15"></TD>
    <TD width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%" height="15"></TD>
    <TD width="1%" height="15"></TD>
    <TD width="8%" height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left height="16"><FONT
      size=2><B>Financial Data </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" bgcolor="#E0E0E0" height="16">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%" bgcolor="#E0E0E0" height="16">
    <b><FONT
      size=2>&nbsp; </FONT></b></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%" height="16"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%" height="16"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%" height="16"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%" height="16"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%" height="16"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%" height="16"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" height="16"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%" height="16"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" height="16"></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15"><FONT size=2>Revenues </FONT></TD>
    <TD align=left width="1%" bgcolor="#E0E0E0" height="15"><b><FONT size=2>$</FONT></b></TD>
    <TD align=right width="8%" bgcolor="#E0E0E0" height="15"><b><FONT size=2>58,765 </FONT>
    </b></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>59,033 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>63,384 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>39,497 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>56,221 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>46,979 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>44,663 </FONT></TD>
    <TD align=left width="2%" height="15"></TD>
    <TD align=left width="1%" height="15"><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><FONT size=2>39,442 </FONT></TD>
    <TD align=left width="2%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff height="15"><FONT size=2>Depreciation and depletion </FONT></TD>
    <TD align=left width="1%" bgColor=#E0E0E0 height="15"><b>
    <FONT
      size=2>$</FONT></b></TD>
    <TD align=right width="8%" bgColor=#E0E0E0 height="15"><b><FONT size=2>10,749 </FONT>
    </b></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>9,234 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>9,666 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>7,657 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>6,404 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>3,766 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>13,258 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>9,481 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff height="17"><FONT size=2>Corporate administration <SUP>(4) </SUP></FONT></TD>
    <TD align=left width="1%" bgColor=#E0E0E0 height="17"><b>
    <FONT
      size=2>$</FONT></b></TD>
    <TD align=right width="8%" bgColor=#E0E0E0 height="17"><b><FONT size=2>4,750 </FONT>
    </b></TD>
    <TD align=left width="2%" bgColor=#ffffff height="17">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="17"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="17"><FONT size=2>7,472 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="17">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="17"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="17"><FONT size=2>8,334 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="17">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="17"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="17"><FONT size=2>3,196 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="17">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="17"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="17"><FONT size=2>4,027 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="17">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="17"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="17"><FONT size=2>5,122 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="17">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="17"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="17"><FONT size=2>2,814 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="17">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="17"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="17"><FONT size=2>5,290 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="17">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff height="30"><FONT size=2>Earnings (loss) from operations </FONT></TD>
    <TD align=left width="1%" bgColor=#E0E0E0 height="30"><b>
    <FONT
      size=2>$</FONT></b></TD>
    <TD align=right width="8%" bgColor=#E0E0E0 height="30"><b><FONT size=2>6,052 </FONT>
    </b></TD>
    <TD align=left width="2%" bgColor=#ffffff height="30">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="30">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="30"><FONT
      size=2>($21,287</FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="30">) </TD>
    <TD align=left width="1%" bgColor=#ffffff height="30">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="30"><FONT
      size=2>($167,588</FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="30">) </TD>
    <TD align=left width="1%" bgColor=#ffffff height="30">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="30"><FONT
      size=2>($5,895</FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="30">) </TD>
    <TD align=left width="1%" bgColor=#ffffff height="30"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="30"><FONT size=2>13,479 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="30">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="30"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="30"><FONT size=2>13,090 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="30">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="30"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="30"><FONT size=2>2,612 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="30">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="30">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="30"><FONT
      size=2>($1,525</FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="30">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff height="15"><FONT size=2>Interest and other income </FONT></TD>
    <TD align=left width="1%" bgColor=#E0E0E0 height="15"><b>
    <FONT
      size=2>$</FONT></b></TD>
    <TD align=right width="8%" bgColor=#E0E0E0 height="15"><b><FONT size=2>266 </FONT>
    </b></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>924 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>1,123 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>1,355 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>1,967 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>1,198 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>1,250 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>1,651 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff height="15"><FONT size=2>Net earnings (loss) </FONT></TD>
    <TD align=left width="1%" bgColor=#E0E0E0 height="15"><b>
    <FONT
      size=2>$</FONT></b></TD>
    <TD align=right width="8%" bgColor=#E0E0E0 height="15"><b><FONT size=2>12,079 </FONT>
    </b></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>41,135 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT
size=2>($148,852</FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">) </TD>
    <TD align=left width="1%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>($4,751</FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">) </TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>9,790 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>14,789 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>1,180 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>($1,289</FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff height="15"><FONT size=2>Earnings (loss) per </FONT></TD>
    <TD align=right width="1%" bgColor=#E0E0E0 height="15">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#E0E0E0 height="15"><b><FONT size=2>&nbsp; </FONT>
    </b></TD>
    <TD align=right width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="1%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=right width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="1%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=right width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="1%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=right width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="1%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=right width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="1%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=right width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="1%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=right width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="1%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=right width="2%" bgColor=#ffffff height="15">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff height="15"><FONT size=2>share </FONT></TD>
    <TD align=right width="1%" bgColor=#E0E0E0 height="15">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#E0E0E0 height="15"><b><FONT size=2>&nbsp; </FONT>
    </b></TD>
    <TD align=right width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="1%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=right width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="1%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=right width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="1%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=right width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="1%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=right width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="1%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=right width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="1%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=right width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="1%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=right width="2%" bgColor=#ffffff height="15">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff height="15"><FONT size=2>&#150; Basic </FONT></TD>
    <TD align=left width="1%" bgColor=#E0E0E0 height="15"><b>
    <FONT
      size=2>$</FONT></b></TD>
    <TD align=right width="8%" bgColor=#E0E0E0 height="15"><b><FONT size=2>0.06 </FONT>
    </b></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>0.19 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>($0.70</FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">) </TD>
    <TD align=left width="1%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>($0.05</FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">) </TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>0.13 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>0.20 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>nil </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>nil </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff height="15"><FONT size=2>&#150; Diluted </FONT></TD>
    <TD align=left width="1%" bgColor=#E0E0E0 height="15"><b>
    <FONT
      size=2>$</FONT></b></TD>
    <TD align=right width="8%" bgColor=#E0E0E0 height="15"><b><FONT size=2>0.06 </FONT>
    </b></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>0.19 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>($0.70</FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">) </TD>
    <TD align=left width="1%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>($0.05</FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">) </TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>0.13 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>0.20 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>nil </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>nil </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff height="30"><FONT size=2>Cash flow from (to) operating activities </FONT></TD>
    <TD align=left width="1%" bgColor=#E0E0E0 height="30"><b>
    <FONT
      size=2>$</FONT></b></TD>
    <TD align=right width="8%" bgColor=#E0E0E0 height="30"><b><FONT size=2>7,721 </FONT>
    </b></TD>
    <TD align=left width="2%" bgColor=#ffffff height="30">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="30"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="30"><FONT size=2>19,737 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="30">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="30">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="30"><FONT
      size=2>($10,459</FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="30">) </TD>
    <TD align=left width="1%" bgColor=#ffffff height="30">&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff height="30"><FONT
      size=2>($2,987</FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="30">) </TD>
    <TD align=left width="1%" bgColor=#ffffff height="30"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="30"><FONT size=2>18,394 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="30">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="30"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="30"><FONT size=2>12,944 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="30">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="30"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="30"><FONT size=2>7,823 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="30">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="30"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="30"><FONT size=2>5,856 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="30">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff height="15"><FONT size=2>Cash and cash equivalents </FONT></TD>
    <TD align=left width="1%" bgColor=#E0E0E0 height="15"><b>
    <FONT
      size=2>$</FONT></b></TD>
    <TD align=right width="8%" bgColor=#E0E0E0 height="15"><b><FONT size=2>136,610 </FONT>
    </b></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>185,668 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>251,131 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>319,179 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>197,636 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>149,924 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>77,111 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>77,388 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff height="15"><FONT size=2>Investments </FONT></TD>
    <TD align=left width="1%" bgColor=#E0E0E0 height="15"><b>
    <FONT
      size=2>$</FONT></b></TD>
    <TD align=right width="8%" bgColor=#E0E0E0 height="15"><b><FONT size=2>70,210 </FONT>
    </b></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>77,016 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>87,645 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>91,193 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>nil </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>32,440 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>nil </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>nil </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff height="15"><FONT size=2>Total assets </FONT></TD>
    <TD align=left width="1%" bgColor=#E0E0E0 height="15"><b>
    <FONT
      size=2>$</FONT></b></TD>
    <TD align=right width="8%" bgColor=#E0E0E0 height="15"><b><FONT size=2>1,924,400
    </FONT></b></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>1,957,701
    </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>1,979,246
    </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>2,166,962
    </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>590,691 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>572,398 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>456,912 </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff height="15"><FONT color=#ffffff
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff height="15"><FONT size=2>&nbsp;nil
    </FONT></TD>
    <TD align=left width="2%" bgColor=#ffffff height="15">&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">&nbsp;</TD>
    <TD vAlign=top width="5%">1. </TD>
    <TD>
      <P align=justify>Results for CSP and New Afton are included from the
      period of June 30, 2008 to March 31, 2009.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">&nbsp;</TD>
    <TD vAlign=top width="5%">2. </TD>
    <TD>
      <P align=justify>The calculation of total cash cost per ounce of gold for
      Peak Mines is net of by-product copper sales revenue. The calculation of
      total cash cost per ounce of gold for CSP is net of by-product silver
      sales revenue.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">&nbsp;</TD>
    <TD vAlign=top width="5%">3. </TD>
    <TD>
      <P align=justify>In the fourth quarter of 2008, the Company finalized the
      purchase price allocation of the assets and liabilities acquired in the
      acquisition of NGI and Metallica. The result of the fourth quarter
      includes adjustments made upon completion of the allocation of the
      purchase consideration of NGI and Metallica.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">&nbsp;</TD>
    <TD vAlign=top width="5%">4. </TD>
    <TD>
      <P align=justify>Corporate administration includes stock-based
      compensation (a non-cash item).</P></TD></TR></TABLE>
<P align=center>3</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>



<A name="page_5"></A>

<P align="justify">
<B><I>Overview of the first quarter 2009 financial results</I></B><B><I> </I></B></P>
<P align="justify">
Net earnings for the first quarter of 2009 amounted to &#36;12.1 million or &#36;0.06 per share compared to net earnings of &#36;9.8 million or &#36;0.13 per share in the same period last year. The increase in net earnings is mainly attributable
to a gain of &#36;14.2 million, before income taxes, on debt settlement on the buy back of a portion of Senior Secured Notes, and increased revenues partially offset by increases in operating cost. Net earnings were also impacted by the inclusion of
CSP operations in the first quarter of 2009 and the decision to place Amapari on care and maintenance (refer to Review of Financial Results section for further detail). </P>
<P align="justify">
Total cash cost per ounce was &#36;513 for the first quarter of 2009 compared to &#36;427 per ounce in the first quarter of 2008. The increase can be attributed to higher costs and decreased gold sales at Amapari and lower copper concentrate
revenues at Peak Mines compared to the same period last year, due to lower copper prices partially offset by the inclusion of the CSP operations and the weakening of the currencies of Brazil, Mexico, and Australia against the US dollar. Copper sales
volume was 2.75 million pounds in the first quarter of 2009 versus 2.55 million pounds in the same period last year offset by lower copper prices in the first quarter of 2009 compared to the first quarter in 2008 (Q1 2009 -&#36;1.70/lb. , Q1 2008-
&#36;3.75/lb) . Cash cost was also impacted by the strike at the refinery in Mexico which necessitated that bullion be shipped to a refinery in the United States. As a result, not all bullion produced in the first quarter of 2009 at CSP could be
sold, resulting in lower ounces sold.</P>
<P align="justify">
Compared to the fourth quarter of 2008, net earnings for the first quarter 0f 2009 decreased by &#36;29.1 million or 70.6% mainly attributable to a &#36;2.0 million foreign exchange loss recorded in the first quarter of 2009 compared to the
&#36;54.9 million foreign exchange gain recorded in the fourth quarter of 2008, increased realized metal prices, and increased silver sales volume partially offset by lower gold ounces sold. Net earnings for the first quarter of 2009 were also
impacted by the &#36;14.2 million gain on the buy-back of a portion of Senior Secured notes. </P>
<P align="justify">
Compared to the fourth quarter of 2008, total cash cost per ounce was &#36;63 lower for the first quarter of 2009. The decrease can be attributed to decreased operating costs, increased silver sales volume of 82,438 ounces at CSP, and increased
realized metal prices (gold increased &#36;106 per ounce, copper increased &#36;0.38 per pound and silver increased &#36;2.45 per ounce) partially offset by lower gold sales volume (Q1 2009 - 55,397 ounces, Q4 2008 &#150; 78,194 ounces). Cash cost
for the first quarter of 2009 was also impacted by the strike at the refinery in Mexico.</P>
<P align="center">
4</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">

<A name=page_6></A>
<P align=justify><B><I>Operation Review<BR></I></B>(US dollars in thousands,
except ounce and per ounce amounts)</P>
<P align=justify><B><I>Amapari, Brazil</I></B><BR></P>
<P align=justify>The Company&#146;s Amapari gold mine is located in the state of
Amap&#225;, Brazil approximately 130 kilometers northwest of the city of Macap&#225;. The
project property consists of a mining lease and multiple exploration
concessions, covering approximately 2,450 square kilometers of prospective
ground centering on the Company&#146;s Amapari gold mining operation. On January 2,
2009, the Amapari mining operation was placed on temporary care and maintenance
due to depletion of ore suitable to economically to mine and process with the
existing crushing and heap leach plant.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center bgColor=#ffffff colSpan=25><FONT size=2><B>Three Months
      Ended </B></FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT size=2><B>Q1
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2><B>Q4
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2><B>Q3
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2><B>Q2
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2><B>Q1
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2><B>Q4
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2><B>Q3
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2><B>Q2
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff><FONT size=2><B>Operating Data </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#E0E0E0><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#E0E0E0><FONT size=2><B>2009 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#ffffff><FONT size=2><B>2008 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#ffffff><FONT size=2><B>2008 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2><SUP><B>(1)
</B></SUP></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#ffffff><FONT size=2><B>2008 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#ffffff><FONT size=2><B>2008 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#ffffff><FONT size=2><B>2007 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#ffffff><FONT size=2><B>2007 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#ffffff><FONT size=2><B>2007 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Tonnes of ore mined </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT size=2><B>14,239
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>705,623 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>493,285 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>353,813 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>448,752 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>598,695 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>591,993 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>481,900 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Tonnes of low grade mined
      </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT size=2><B>663
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>94,916 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>260,670 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>251,042 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>177,081 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>247,485 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>162,183 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>140,000 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Tonnes of waste removed
      <SUP>(2) </SUP></FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT size=2><B>N/A
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>2,353,250 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>2,708,792 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>1,491,231 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>1,198,743 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>2,193,579 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>2,273,088 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>1,494,600 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Ratio of waste to ore
    </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT size=2><B>N/A
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>3.5 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>6.0 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>4.9 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>3.1 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>4.1 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>4.1 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>3.4 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Tonnes of ore processed
    </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT size=2><B>16,377
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>588,669 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>517,239 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>388,000 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>384,000 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>529,800 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>519,400 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>461,400 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Average mill head grade (grams/tonne)
      </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT
      size=2><B>2.18 </B></FONT></TD>
    <TD align=right width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>1.97 </FONT></TD>
    <TD align=right width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>1.89 </FONT></TD>
    <TD align=right width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>1.76 </FONT></TD>
    <TD align=right width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>2.35 </FONT></TD>
    <TD align=right width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>3.41 </FONT></TD>
    <TD align=right width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>2.41 </FONT></TD>
    <TD align=right width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>2.49 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Average recovery rate (%)
      <SUP>(3) </SUP></FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT size=2><B>87.8%
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>71.5% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>76.0% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>60.0% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>63.0% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>62.0% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>62.0% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>68.0% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Gold (ounces) </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#E0E0E0><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>&#150; Produced <SUP>(2)
      </SUP></FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT size=2><B>13,726
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>30,101 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>17,752 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>20,938 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>18,201 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>24,400 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>22,200 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>22,700 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>&#150; Sold </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT size=2><B>16,227
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>28,199 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>16,661 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>22,099 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>20,453 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>22,600 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>22,200 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>23,200 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Average realized gold price ($/ ounce)
      </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT size=2><B>$</B></FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT
      size=2><B>890 </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>791 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>853 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>895 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>918 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>785 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>684 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>666 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Total cash cost per gold ounce sold
      </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT size=2><B>$</B></FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT
      size=2><B>696 </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>568 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>882 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>968 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>650 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>583 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>491 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>539 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff><FONT size=2><B>Financial Data </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#E0E0E0><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#E0E0E0><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Revenues </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT size=2><B>$
      </B></FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT size=2><B>14,440
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$ </FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>22,297 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$ </FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>14,213 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$ </FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>19,775 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$ </FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>18,767 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$ </FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>17,710 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$ </FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>15,190 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$ </FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>15,470 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2><STRONG>(Loss) Earnings from operations
      </STRONG></FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT
    size=2><B>($94</B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT size=2>) </FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>1,602 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>($170,660</FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT size=2>) </FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>($7,668</FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT size=2>) </FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
    size=2>($327</FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT size=2>) </FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>3,751 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>($1,560</FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT size=2>) </FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>($2,512</FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT size=2>) </FONT></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(1) </TD>
    <TD>
      <P align=justify>Includes the impairment charge of $156.9 million (net of
      tax recoveries of $8.4 million) in Q3 2008.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(2) </TD>
    <TD>
      <P align=justify>No waste was removed in Q1 2009 and therefore no strip
      ratio in Q1 2009.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(3) </TD>
    <TD>
      <P align=justify>Gold recovery is determined when the individual leach
      pads are reclaimed and production is reconciled.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(4) </TD>
    <TD>
      <P align=justify>Tonnes of ore processed each quarter do not necessarily
      correspond to ounces produced during the quarter, as there is a time delay
      between placing tonnes on the leach pad and pouring ounces of
  gold.</P></TD></TR></TABLE>
<P align=justify>Amapari produced 13,726 ounces of gold during the first
quarter of 2009 compared to 18,201 ounces during the first quarter last year.
When compared to the previous quarter, production in the first quarter of 2009
decreased by 16,375 ounces. Gold production in Q1 2009 related to ore stacked
during Q4 2008 and 16,377 tonnes stacked in January 2009. Leaching of the
stacked material has now been completed and the leach pads are in the final
stage of neutralization.</P>
<P align=center>5</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>



<A name="page_7"></A>

<P align="justify">
Cash cost was &#36;696 per ounce during the first quarter compared to &#36;650 per ounce during the same quarter last year. When compared to the previous quarter, cash cost increased by &#36;128 per ounce. The increase is attributed to lower
sales as a result of ceasing heap leach operations. </P>
<P align="justify">
Capital expenditures in Q1 2009 were &#36;0.5 million, largely related to environmental initiatives.</P>
<P align="justify">
A Preliminary Assessment (&#147;PE&#148;) to assess the potential for mining of sulphide mineral resources and the remaining oxide mineral resources was completed during the quarter. This study examines the potential for mining of the sulphide
and the remaining oxide mineralization via a combination of open pit and underground mining, with processing by a conventional milling and a CIL mill. This analysis is expected to be completed in the second quarter. Mineral resources at Amapari for
the PE include 1.14 million gold ounces in the measured and indicated categories (22.9 million tonnes at 1.54 g/t Au) of which 63% are in sulphides and 1.04 million gold ounces in the inferred category (13.7 million tonnes at 2.37 g/t Au) of which
93% are in sulphides. The PE study made a number of recommendations for additional work to further assess the potential for development of the sulphide and oxide mineral resources at Amapari including additional drilling to upgrade the
classification of the current inferred mineralization resource inventory to measured and indicated status. Considering the large land package in a geologically permissive setting and the occurrence of several interesting targets, the company is also
investigating other strategic alternatives for the project. This analysis is expected to be completed in the second quarter of 2009. Further information is available in the April 9, 2009 press release that is available on SEDAR at
<u><FONT
color="#0000ff">www.sedar.com</FONT>.</u></P>
<P align="center">
6</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">

<A name=page_8></A>
<P align=justify><I><B>Operation Review</B><BR></I>(US dollars in thousands,
except ounce, per ounce per pound amounts)</P>
<P align=justify><I><B>Peak Mines, Australia</B></I><BR></P>
<P align=justify>The Company&#146;s 100% owned Peak Mines gold and copper mining
operation is located in the Cobar Mineral Field near Cobar, New South Wales,
Australia. The Peak Mines property consists of combined mining and exploration
licenses totalling 845 square kilometres of prospective ground covering the Peak
Mines operation and mineralized extensions.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center bgColor=#ffffff colSpan=25><FONT size=2></FONT><FONT
      size=2></FONT><FONT size=2></FONT><FONT size=2></FONT><FONT
      size=2></FONT><FONT size=2></FONT><FONT size=2></FONT><FONT
      size=2></FONT><FONT size=2></FONT><FONT size=2></FONT><FONT
      size=2></FONT><FONT size=2><B>Three Months Ended </B></FONT><FONT
      size=2></FONT><FONT size=2></FONT><FONT size=2></FONT><FONT
      size=2></FONT><FONT size=2></FONT><FONT size=2></FONT><FONT
      size=2></FONT><FONT size=2></FONT><FONT size=2></FONT><FONT
    size=2></FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT size=2><B>Q1
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2><B>Q4
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2><B>Q3
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2><B>Q2
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2><B>Q1
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2><B>Q4
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2><B>Q3
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2><B>Q2
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD width="1%"  bgColor=#E0E0E0><FONT size=2>&nbsp;</FONT></TD>
    <TD width="8%" bgColor=#E0E0E0><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%"  bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD width="1%"  bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%"  bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD width="1%"  bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%"  bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD width="1%"  bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%"  bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD width="1%"  bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%"  bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD width="1%"  bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%"  bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD width="1%"  bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%"  bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD width="1%"  bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%"  bgColor=#ffffff><FONT
  size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff><FONT size=2><B>Operating Data </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#E0E0E0><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#E0E0E0><FONT size=2><B>2009 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#ffffff><FONT size=2><B>2008 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#ffffff><FONT size=2><B>2008 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#ffffff><FONT size=2><B>2008 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#ffffff><FONT size=2><B>2008 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#ffffff><FONT size=2><B>2007 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#ffffff><FONT size=2><B>2007 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#ffffff><FONT size=2><B>2007 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Tonnes of ore milled </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT size=2><B>198,612
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>206,681 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>196,633 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>186,326 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>179,087 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>188,933 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>182,835 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>132,241 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Average gold head grade (grams/tonne) </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT
      size=2><B>3.62 </B></FONT></TD>
    <TD align=right width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>4.60 </FONT></TD>
    <TD align=right width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>4.95 </FONT></TD>
    <TD align=right width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>4.18 </FONT></TD>
    <TD align=right width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>4.96 </FONT></TD>
    <TD align=right width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>5.55 </FONT></TD>
    <TD align=right width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>6.21 </FONT></TD>
    <TD align=right width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>5.29 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Average copper head grade
      (%) </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT size=2><B>0.99%
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>0.64% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>0.67% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>0.46% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>0.70% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>0.59% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>0.65% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>0.78% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Average gold recovery rate
      (%) </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT size=2><B>89.2%
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>90.4% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>85.1% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>84.2% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>87.9% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>86.0% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>87.0% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>88.0% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Average copper recovery
      rate (%) </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT size=2><B>87.6%
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>84.2% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>81.1% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>64.9% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>78.9% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>70.0% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>74.0% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>77.0% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Gold (ounces) </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#E0E0E0><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>&#150; Produced </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT size=2><B>20,629
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>27,618 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>26,662 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>21,114 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>25,099 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>29,030 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>31,703 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>19,800 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>&#150; Sold </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT size=2><B>20,856
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>28,815 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>24,425 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>18,441 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>31,247 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>29,751 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>32,800 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>24,800 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Copper (thousands of
      pounds) </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#E0E0E0><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>&#150; Produced </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT size=2><B>3,812
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>2,474 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>2,365 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>1,237 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>2,172 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>1,746 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>1,932 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>1,748 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>&#150; Sold </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT size=2><B>2,751
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>2,634 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>1,715 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>855 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>2,551 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>2,469 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>1,908 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>2,776 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Average realized prices </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#E0E0E0><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="8%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>&#150; Gold ($/ ounce) </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2><B>$</B></FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT size=2><B>897
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>788 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>878 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>902 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>943 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>799 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>707 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>672 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>&#150; Copper ($/ pound) </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2><B>$</B></FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT size=2><B>1.70
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>1.32 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>2.76 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>4.27 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>3.75 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>2.99 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>3.47 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>3.19 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Total cash cost per gold
      ounce sold <SUP>(1) </SUP></FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT size=2><B>$</B></FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT
      size=2><B>337 </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>624 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>560 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>472 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>281 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>258 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>176 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT
      size=2>160 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff><FONT size=2><B>Financial Data </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#E0E0E0><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%"
    bgColor=#E0E0E0><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%"
    bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%"
    bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%"
    bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%"
    bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%"
    bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%"
    bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%"
    bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Revenues </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2><B>$</B></FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT size=2><B>23,074
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>16,890 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>21,732 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>19,722 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>37,454 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>29,278 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>29,467 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>23,970 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Earnings from operations </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      size=2><B>$</B></FONT></TD>
    <TD align=right width="8%" bgColor=#E0E0E0><FONT size=2><B>9,168
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>2,489 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>6,018 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>2,944 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>17,144 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>13,416 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>6,494 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      size=2>$</FONT></TD>
    <TD align=right width="8%" bgColor=#ffffff><FONT size=2>5,876 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD></TR></TABLE>
<P align=justify style="margin-left: 30pt">1. The calculation of total cash cost per ounce of gold is net
of by-product sales revenue. If the copper sales were treated as a co-product,
average total cash cost at Peak Mines for the three months ended March 31, 2009,
would be $455 per ounce of gold and $1.72 per pound of copper compared to $414
per ounce of gold and $0.69 per pound of copper in the previous quarter.</P>
<P align=justify>Peak Mines produced 20,629 ounces of gold and 3.8 million
pounds of copper during the first quarter of 2009, a 17.8% decrease in gold
production and 75.5% increase in copper production, compared to the same quarter
in 2008. These changes are primarily due to mining shifting to zones of higher
copper and lower gold contents as per the mine plan. Mill feed grade was 27.0%
lower in gold grade and 41.4% higher in copper grade. Mill throughput increased
by 10.9% to 198,612 tonnes for the first quarter compared to 179,087 tonnes for
the same quarter in 2008. Revenue for the first quarter in 2009 was lower than
the same quarter in 2008 mainly due to lower gold ounces sold at lower metal
prices. Copper price realized decreased by $2.05 per pound and gold price
received decreased by $46 per ounce when compared to the same quarter in
2008.</P>
<p align="center">7</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>



<A name="page_9"></A>

<P align="justify">
Total cash cost per ounce sold in the first quarter of 2009 was &#36;337 compared to&#36;281 in the corresponding period of 2008. The increase is due primarily to lower by-product credit from copper sales and lower ounces sold partially offset by
a more favourable Australian dollar exchange rate. The average exchange rate of the Australian dollar declined 36.1% against the US dollar in the first quarter of 2009 compared to same period last year. </P>
<P align="justify">
Compared to the fourth quarter of 2008, gold production is lower by 25.3% and copper production higher by 3.9% as per the production plan for 2009 due to migration into higher copper, low gold grade areas. Mill throughput of 198,612 tonnes for
the first quarter of 2009 decreased by 3.9% or 8,069 tonnes compared to fourth quarter in 2008. Total cash cost for the first quarter of 2009 was &#36;337 per ounce sold, which is significantly lower than the &#36;624 per ounce recorded in the
fourth quarter of 2008. This is the result of increased copper revenues, lower operating costs and lower foreign exchange rates. Cash cost per ounce was higher in Q4 2008 due to significantly lower copper prices and the revaluation of previously
shipped copper concentrate to a settlement price of &#36;1.32.</P>
<P align="justify">
Capital expenditure in the first quarter of 2009 was &#36;4.7 million, which was &#36;2.9 million lower than in the fourth quarter of 2008, mainly due to timing of the underground development projects. At the end of the first quarter of 2009, the
Chesney project was successfully commissioned on time. </P>
<P align="center">
8</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">

<A name=page_10></A>
<P align=justify><B><I>Operation Review<BR></I></B>(US dollars in thousands,
except ounce and per ounce amounts)<B></B></P>
<P align=justify><B><I>Cerro San Pedro, Mexico</I></B><BR></P>
<P align=justify>The Cerro San Pedro Mine is located in the state of San Luis
Potos&#237; in central Mexico, approximately 20 kilometers east of the city of San
Luis Potos&#237;. The project property consists of 52 mining and exploration
concessions totaling 78 square kilometers of mining and exploration concessions
centering on the historic Cerro San Pedro mining district. The current focus of
exploration is on the southern half of the Cerro San Pedro mining district along
a trend of gold-silver-zinc-lead mineralization that extends more than 2
kilometers south from the Company&#146;s current open pit mine operation. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center bgColor=#ffffff colSpan=19><FONT size=2></FONT><FONT
      size=2></FONT><FONT size=2></FONT><FONT size=2><B>Three Months Ended
      </B><B><SUP>(1</SUP></B></FONT> <B><SUP>) </SUP></B><FONT
      size=2></FONT><FONT size=2></FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#E0E0E0><FONT size=2><B>Q1
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2><B>Q4
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2><B>Q3
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2><B>Q2
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2><B>Q1
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2><B>Q4
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD width="1%"  bgColor=#E0E0E0>&nbsp;</TD>
    <TD width="11%" bgColor=#E0E0E0><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="11%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="11%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="11%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="11%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="11%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff><FONT size=2><B>Operating Data </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#E0E0E0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%"
    bgColor=#E0E0E0><FONT size=2><B>2009 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%"
    bgColor=#ffffff><FONT size=2><B>2008 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%"
    bgColor=#ffffff><FONT size=2><B>2008 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%"
    bgColor=#ffffff><FONT size=2><B>2008 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%"
    bgColor=#ffffff><FONT size=2><B>2008 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%"
    bgColor=#ffffff><FONT size=2><B>2007 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Tonnes of ore mined </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#E0E0E0><FONT size=2><B>2,540,399
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>2,128,235 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>2,059,429 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>2,440,293 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>2,276,533 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>2,290,846 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Tonnes of waste removed </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#E0E0E0><FONT size=2><B>4,385,860
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>4,255,114 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>3,831,513 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>3,074,769 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>3,051,869 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>2,706,370 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Ratio of waste to ore </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#E0E0E0><FONT size=2><B>1.73
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>2.00 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>1.86 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>1.26 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>1.34 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>1.18 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Tonnes of ore processed </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#E0E0E0><FONT size=2><B>2,540,399
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>2,128,235 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>2,059,429 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>2,440,293 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>2,276,533 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>4,997,000 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Average gold head grade
      (grams/tonne) </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#E0E0E0><FONT size=2><B>0.5
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>0.57 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>0.59 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>0.64 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>0.61 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>0.56 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Average silver head grade
      (grams/tonne) </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#E0E0E0><FONT size=2><B>35.30
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>33.50 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>24.22 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>18.88 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>20.82 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>18.14 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Average gold recovery rate
      (%) </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#E0E0E0><FONT size=2><B>50.3%
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>54.8% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>65.0% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>41.0% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>41.0% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>47.9% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Average silver recovery
      rate (%) </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#E0E0E0><FONT size=2><B>14.9%
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>12.7% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>18.0% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>19.0% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>15.0% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>22.2% </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Gold (ounces) </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#E0E0E0><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>&#150; Produced <SUP>(2)
      </SUP></FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#E0E0E0><FONT size=2><B>20,583
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>21,231 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>24,387 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>20,653 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>18,290 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>13,621 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>&#150; Sold </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#E0E0E0><FONT size=2><B>18,314
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>21,180 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>26,070 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>22,190 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>15,922 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>13,312 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Silver (ounces) </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#E0E0E0><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>&#150; Produced <SUP>(2)
      </SUP></FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#E0E0E0><FONT size=2><B>427,439
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>290,520 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>282,055 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>283,749 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>228,623 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>194,539 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>&#150; Sold </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#E0E0E0><FONT size=2><B>372,219
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>289,781 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>305,430 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>300,728 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>203,973 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>187,430 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Realized prices </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#E0E0E0><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>&#150; Gold ($/ ounce) </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      color=#ffffff size=2><B>$</B></FONT></TD>
    <TD align=right width="11%" bgColor=#E0E0E0><FONT size=2><B>906
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      color=#ffffff size=2><B>$</B></FONT></TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>799 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      color=#ffffff size=2>$</FONT></TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>874 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      color=#ffffff size=2>$</FONT></TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>897 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      color=#ffffff size=2>$</FONT></TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>933 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      color=#ffffff size=2>$</FONT></TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>790 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>&#150; Silver ($/ ounce) </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      color=#ffffff size=2><B>$</B></FONT></TD>
    <TD align=right width="11%" bgColor=#E0E0E0><FONT size=2><B>12.54
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      color=#ffffff size=2><B>$</B></FONT></TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>10.09 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      color=#ffffff size=2>$</FONT></TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>15.24 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      color=#ffffff size=2>$</FONT></TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>17.13 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      color=#ffffff size=2>$</FONT></TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>17.62 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      color=#ffffff size=2>$</FONT></TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>14.21 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Total cash cost per gold
      ounce sold <SUP>(3) </SUP></FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      color=#ffffff size=2><B>$</B></FONT></TD>
    <TD align=right width="11%" bgColor=#E0E0E0><FONT size=2><B>551
    </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      color=#ffffff size=2><B>$</B></FONT></TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>522 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      color=#ffffff size=2>$</FONT></TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>369 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      color=#ffffff size=2>$</FONT></TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>375 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      color=#ffffff size=2>$</FONT></TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>496 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      color=#ffffff size=2>$</FONT></TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>759 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff><FONT size=2><B>Financial Data </B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#E0E0E0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="11%"
    bgColor=#E0E0E0><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="11%"
    bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="11%"
    bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="11%"
    bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="11%"
    bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="11%"
    bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>Revenues </FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      color=#ffffff size=2><B>$</B></FONT></TD>
    <TD align=right width="11%" bgColor=#E0E0E0><FONT size=2><B>21,251
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      color=#ffffff size=2><B>$</B></FONT></TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>19,846 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      color=#ffffff size=2>$</FONT></TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>27,439 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      color=#ffffff size=2>$</FONT></TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>25,050 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      color=#ffffff size=2>$</FONT></TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>18,477 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      color=#ffffff size=2>$</FONT></TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>13,172 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT size=2>(Loss) Earnings from
      operations <SUP>(4) </SUP></FONT></TD>
    <TD align=left width="1%"  bgColor=#E0E0E0><FONT
      color=#ffffff size=2><B>$</B></FONT></TD>
    <TD align=right width="11%" bgColor=#E0E0E0><FONT size=2><B>1,234
      </B></FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT
      size=2>($18,169</FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>) </TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      color=#ffffff size=2>$</FONT></TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>5,618 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      color=#ffffff size=2>$</FONT></TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>10,523 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT
      color=#ffffff size=2>$</FONT></TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT size=2>7,497 </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#ffffff><FONT
      size=2>($3,224</FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">1. </TD>
    <TD>
      <P align=justify>Commercial production at CSP commenced on May 1, 2007;
      however, by Q1 2008 the operation was still in its ramp up stage and
      production results are not comparable. As such, the comparative analysis
      will be presented using Q4, 2008 data.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">2. </TD>
    <TD>
      <P align=justify>Tonnes of ore processed each quarter do not necessarily
      correspond to ounces produced during the quarter, as there is a time delay
      between placing tonnes on the leach pad and pouring ounces of
  gold.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">3. </TD>
    <TD>
      <P align=justify>The calculation of total cash costs per ounce of gold is
      net of by-product sales revenue. If the silver sales were treated as a
      co-product, average total cash costs at CSP for the three months ended
      March 31, 2009, would be $629 per ounce of gold and $8.71 per ounce of
      silver.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">4. </TD>
    <TD>
      <P align=justify>CSP operations are included in New Gold&#146;s operating
      results for the period subsequent to June 30, 2008 only. Prior quarter
      information is presented for information purposes
only.</P></TD></TR></TABLE>
<P align=center>9</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>



<A name="page_11"></A>

<P align="justify">
Gold production for the first quarter of 2009 was 20,583 ounces compared to 21,231 ounces produced in the fourth quarter of 2008. Production was lower due to a 12.3% decrease in the average gold grade (Q1 2009 &#150; 0.50 grams per tonne, Q4 2008
&#150; 0.57 grams per tonne) partially offset by the higher tonnes to the leach pads. Silver production increased significantly during the quarter to 427,439 ounces from 290,520 ounces in the prior quarter. This significant increase in silver
production can be attributed to higher silver grades mined in the first quarter of 2009 and higher recovery primarily due to the impact of the secondary leaching. The average silver grade during the first quarter of 2009 was 35.3 grams per tonne
versus 33.5 grams per tonne during the fourth quarter of 2008.</P>
<P align="justify">
Revenue for the first quarter of 2009 was &#36;21.3 million, a 7.1% increase compared to the fourth quarter of 2008 due mainly to an increase of 82,438 ounces of silver sold and higher metal prices realized (&#36;906 versus &#36;799 per ounce of
gold and &#36;12.54 versus &#36;10.09 per ounce of silver). The increases were partially offset by a decrease in gold sold of 2,866 ounces. Gold sales were lower primarily due to an increase in finished goods in inventory resulting from a labour
strike at the refinery in Mexico which necessitated that bullion be shipped to a refinery in the United States. This strike has subsequently been resolved.</P>
<P align="justify">
Total cash cost per ounce of gold sold for the first quarter of 2009 was &#36;551 compared to &#36;522 in the fourth quarter of 2008. The increase is mainly attributable to lower gold sold off-set somewhat by increased silver production and a
10.0% weakening of the Mexican peso against the US dollar. </P>
<P align="center">
10</P>

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<A name="page_12"></A>

<P align="justify">
<B><I>Project Development Review</I></B><BR>
</P>
<P align="justify">
<B><I>New Afton Project</I></B><BR>
</P>
<P align="justify">
The Company&#146;s 100% owned New Afton copper-gold development project is located in Kamloops, British Columbia Canada. The New Afton project property package consists of the 9 square kilometer Afton mining lease which centers on the New Afton
copper-gold mine currently under development as well as 111 square kilometers of exploration licenses covering multiple mineral prospects within the historic Iron Mask mining district. </P>
<P align="justify">
New Afton is expected to commence production in the second half of 2012. The project will be an underground block cave mine, which will produce an annual estimated average of 85,000 ounces of gold and 75 million pounds of copper over a twelve
year mine life. The development schedule for New Afton, which was revised in November of last year, involves the continuation of underground development and resumption of surface construction at the end of 2010 with commencement of production in the
second half of 2012. During the first quarter of 2009, the New Afton mining team successfully transitioned from a contractor operator to owner operator work force of 87 employees with the new crews completing 195 metres of development. Erection of
the mill building was completed in the first quarter, providing a secure location for the storage of mine and mill equipment that has been received. </P>
<P align="justify">
<B><I>El Morro Project</I></B><BR>
</P>
<P align="justify">
The Company&#146;s 30% owned El Morro copper-gold project is located in Region III, Chile, approximately 80 kilometers east of the city of Vallenar. This is a development stage project managed under an agreement between Xstrata Copper
(&#147;Xstrata&#148;), the project operator and owner of a 70% interest, and the Company which owns the remaining 30%. During the first quarter of 2009, &#36;0.5 million was spent on the project. </P>
<P align="justify">
During the first quarter of 2009, the El Morro project activities included continued permitting and detailed engineering of infrastructure (pending approval of the Environmental Impact Statement submitted in November of 2008). It is anticipated
that the permit will be obtained during the first half of 2010, after which development activities can proceed. </P>
<P align="justify">
<b><I>Exploration Review<br>
</I><BR>
<I>Amapari Mine</I> </b> <BR>
</P>
<P align="justify">
During the first quarter of 2009, the Company completed a total of 1,478 meters of diamond drilling at Amapari. The majority of this work was conducted as part of a regional reconnaissance drilling program to assess the mineral potential of less
explored areas within the Company&#146;s greater Amapari project property holdings.</P>
<P align="center">
11</P>

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<A name="page_13"></A>

<P align="justify">
<B><I>Cerro San Pedro Mine</I></B><BR>
</P>
<P align="justify">
During the first quarter of 2009, the Cerro San Pedro Sulphide project continued with the completion of 2,649 meters of diamond drilling in an area extending between the current open pit mining operation and an area of historic underground mining
located approximately 500 meters to the southwest. Since the start of drilling during the fourth quarter of 2008, results for the five holes totaling 3,699 meters have been received. Highlights of the program to date include 51.9 meters of
manto-style sulphide mineralization grading 2.08 g/t gold, 131.8 g/t silver, 6.14% zinc and 2.01% lead which was immediately followed by 164.1 meters of porphyry sulphide mineralization grading 0.62 g/t gold, 13.2 g/t silver, 0.49% zinc and 0.15%
lead.</P>
<P align="justify">
The objective of the CSP Sulphide project is to continue to explore extensions to the historic Asarco manto system and to test the continuity of sulphide mineralization as it extends between the historic Asarco mine and the current oxide open
pit. The results of the first five holes confirm the presence of additional manto-style mineralization adjacent to the historic Asarco mine workings and indicate potential may also exist for a zone of porphyry hosted sulphide mineralization
extending from beneath the current oxide open pit and the historic Asarco mine to the south. Complete results for the first five holes of the Cerro San Pedro Sulphide program have been reported previously in an April 9, 2009 press release that is
available on SEDAR at <FONT color="#0000ff">www.sedar.com</FONT>.</P>
<P align="justify">
<B><I>Peak Mines</I></B><BR>
</P>
<P align="justify">
During the first quarter of 2009, the Company&#146;s ongoing mineral resource development program resulted in the completion of approximately 6,900 meters of diamond drilling to replace mine depletion. The Company&#146;s regional exploration
initiative also continues with surface mapping and sampling to identify targets for follow-up drill testing and the completion of a 3D regional scale exploration model to identify new target prospects that will undergo preliminary drill testing
during the second half of 2009.</P>
<P align="justify">
<B><I>Rio Figueroa Project</I></B><BR>
</P>
<P align="justify">
The Company&#146;s 100% controlled Rio Figueroa project is located in Region III of northern Chile, approximately 85 kilometers east of the city of Copiap&oacute;. The project property position consists of approximately 77 square kilometers of
mining and exploration concessions covering multiple areas of prospective copper and gold mineralization. The Company holds an option to purchase a 100% interest in the Rio Figueroa property from a private company controlled by a Chilean state
mining company. The remaining requirement for completing the purchase of the property is a &#36;1.85 million cash payment due September 2, 2009.</P>
<P align="justify">
During the first quarter of 2009, the Company&#146;s joint venture partner and project operator Antofagasta Minerals S.A. submitted an application for a new environmental permit to conduct additional exploration drilling during the second half of
2009. It is anticipated that the permit will be obtained during the second quarter of 2009, after which exploration drilling activities could proceed. </P>
<P align="center">
12</P>

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<A name="page_14"></A>

<P align="justify">
<B><I>Liberty Bell Project</I></B><BR>
</P>
<P align="justify">
The Company&#146;s 100% owned Liberty Bell gold project is located approximately 110 kilometers (70 miles) southeast of Fairbanks, Alaska, USA. The project property consists of 174 Alaska state mining claims covering approximately 52 square
kilometers (20 square miles) of prospective ground that is held under three separate option and lease agreements with various underlying claim owners. </P>
<P align="justify">
During the first quarter of 2009, the Company&#146;s exploration program at Liberty Bell involved the compilation and interpretation of data obtained during the 2008 field program and preparations for subsequent work during the 2009 field program
which is anticipated to commence at the start of the third quarter of 2009. </P>
<P align="center">
13</P>

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<A name="page_15"></A>

<P align="justify">
<B><I>Review of Financial Results</I></B><BR>
</P>
<P align="justify">
<B><I>Three months ended March 31, 2009 compared to the three months ended March 31, 2008</I></B></P>
<P align="justify">
Net earnings for the three months ended March 31, 2009 were impacted by the following factors:</P>
<UL style="text-align:justify;">
<LI>
<p style="margin-top: 0; margin-bottom: 0">Revenues for the first quarter of 2009 were &#36;58.8 million, an increase of &#36;2.5 million or 4.5% compared to the first quarter of 2008, due mainly to the inclusion of the CSP operations partially offset by lower revenues at
Peak Mines and Amapari. The decrease in revenues at Amapari and Peak Mines is attributable to reduced metal prices (gold decreased &#36;35 per ounce, copper decreased by &#36;2.05 per pound) and reduced gold ounces sold at Peak Mines
and Amapari (a decrease of 33.3% and 20.7% respectively).</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">Gain of &#36;14.2 million on the debt settlement on the buy back of a portion of Senior Secured Notes.</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">Decrease of &#36;1.7 million in interest &amp; other income in the first quarter of 2009 due to lower cash balances compared to the same quarter in the prior year.</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">Operating expenses increased by &#36;3.8 million or 12.2% due mainly to the inclusion of CSP of approximately &#36;12.6 million for the first quarter of 2009. Operating costs were lower at Amapari by &#36;2.7 million attributable to
reduced mining as a result of the mine being placed on care and maintenance. Operating expenses at Peak Mines were lower by &#36;6.0 million due to the 36.1% decline in the value of the Australian dollar against the US dollar.</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">Depreciation and depletion was &#36;10.7 million for the quarter compared to &#36;6.4 million in the same quarter of 2008 due to increased production and the inclusion of CSP results. Depreciation and depletion for the first quarter
of 2009 was &#36;2.3 million for Amapari, &#36;6.1 million for CSP and &#36;2.3 million for Peak Mines.</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">Overall, corporate administration has increased &#36;0.7 million compared to the same period last year due to increased activities as a result of the business combination between New Gold Inc., Metallica Resources Inc. and Peak Gold
Ltd. that occurred on June 30, 2008.</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">Stock-based compensation was &#36;1.3 million for first quarter of 2009 compared to &#36;2.6 million in the same quarter of 2008.</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">Exploration expenses increased by &#36;1.1 million in the first quarter of 2009 compared to the same period in 2008, as a result of continued exploration work at Peak Mines, Amapari and other properties acquired in the business
combination between New Gold, Metallica and Peak Gold Ltd on June 30, 2008.</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">The Company recorded a &#36;2.0 million foreign exchange loss during the period compared to &#36;1.1 million in the same period last year. The majority of the loss arose due to the revaluation of monetary assets and liabilities and
future income tax liabilities recorded on the acquisition of Amapari, the Peak Mines, Metallica and NGI.</LI>
</UL>
<P align="center">
14</P>

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<A name="page_16"></A>

<P align="justify">
<B><I>Three months ended March 31, 2009 compared to the three months ended December 31, 2008</I></B></P>
<P align="justify" style="margin-top: 0; margin-bottom: 0">
Net earnings for the first quarter were &#36;12.1 million or &#36;0.06 per share, compared with &#36;41.1 million or &#36;0.19 per share in the fourth quarter of 2008. Compared to the fourth quarter of 2008, net earnings for the period ending
March 31, 2009 were impacted by the following factors: </P>
<UL style="text-align:justify;">
<LI>
<p style="margin-top: 0; margin-bottom: 0">Revenues for the first quarter of 2009 decreased slightly compared to the fourth quarter of 2008. Revenues in the first quarter of 2009 were impacted by a 13.4% increase in gold realized prices, a 28.8% increase in copper prices, a
24.2% in silver realized prices, and silver sales volume increasing by 82,438 ounces or 28.5% offset by a decrease in gold sales volume of 22,797 ounces or 29.2%. Gold sales were lower at Amapari due to reduced mining operations and
lower at Peak Mines primarily due to mining shifting to zones of higher copper and lower gold contents.</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">A &#36;2.0 million foreign exchange loss recorded in the first quarter of 2009 compared to the &#36;54.9 million foreign exchange gain recorded in the fourth quarter of 2008.</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">A gain of &#36;14.2 million, before income taxes, on the debt settlement on the buy back of a portion of Senior Secured Notes in the first quarter of 2009.</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">Decrease of &#36;.7 million in interest &amp; other income due to lower cash balances compared to the fourth quarter in 2008 due to lower cash balances.</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">Operating expenses decreased by &#36;25.6 million or 42.2% mainly attributed to the revaluation of heap leach at June 30, 2008 acquisition adjusted in Q4 2008 (&#36;18.3 million) and the &#36;5.2 reduction in operating expenses at
Amapari in the first quarter of 2009 due to reduced mining activities.</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">Depreciation and depletion increased by &#36;1.5 million or 16.4% in the first quarter of 2009.</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">Corporate administration in Q1 2009 decreased &#36;2.7 million or 36.4% compared to Q4 2008. Corporate administration costs in Q4 2008 included year-end accounting, legal, and expenses related to employee bonus accruals.</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">Exploration expenses decreased by &#36;0.8 million mainly due to decreased operations at Amapari.</LI>
</UL>
<P align="center">
15</P>

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<A name=page_17></A>
<P align=justify><B><I>Non-GAAP Measure &#150; Total Cash Cost per Gold Ounce
Calculation</I></B></P>
<P align=justify>The Company reports total cash cost on a sales basis. In the
gold mining industry, this is a common performance measure but does not have any
standardized meaning, and is a non-GAAP measure. The Company follows the
recommendations of the Gold Institute standard. The Company believes that, in
addition to conventional measures prepared in accordance with GAAP, certain
investors use this information to evaluate the Company&#146;s performance and ability
to generate cash flow. Accordingly, it is intended to provide additional
information and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with GAAP. The following table
provides a reconciliation of total cash cost per ounce to the financial
statements: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left style="border-style:solid; border-width:1; " bordercolor="#000000"><B>(In thousands of US dollars except for ounces of
      gold and cash cost per ounce) </B></TD>
    <TD align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-top-style: solid; border-top-width: 1; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=center width="12%" style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000"><B>Three months ended </B><BR><B>March
      31, 2009 </B></TD>
    <TD align=center width="2%" style="border-left-style: none; border-left-width: medium; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=center width="1%" style="border-left-style: solid; border-left-width: 1; border-top-style: solid; border-top-width: 1; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=center width="12%" style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000"><B>Three months ended </B><BR><B>March
      31, 2008 </B></TD>
    <TD align=left width="2%" style="border-left-style: none; border-left-width: medium; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" align=left bordercolor="#000000"><B>Operating
      expenses per financial statements </B></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-top-style:solid; border-top-width:1" align=center width="1%" bordercolor="#000000"
    >$</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right
      width="12%" bordercolor="#000000">35,200 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-top-style:solid; border-top-width:1" align=center width="1%" bordercolor="#000000"
    >$</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right
      width="12%" bordercolor="#000000">31,367 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1; " align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left bordercolor="#000000"><B>Treatment and
      refining charges on concentrate sales </B></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=center width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%" bordercolor="#000000">1,949
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=center width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%" bordercolor="#000000">1,902
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left bordercolor="#000000"><B>By-product
      copper and silver sales </B></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=center width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
      width="12%" bordercolor="#000000">(10,990</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" align=left width="2%" bordercolor="#000000"
    >) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=center width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
    width="12%" bordercolor="#000000">(9,875</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" align=left width="2%" bordercolor="#000000"
    >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left bordercolor="#000000"><B>Non-cash
      adjustments </B></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=center width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%" bordercolor="#000000">2,259
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=center width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
    width="12%" bordercolor="#000000">(1,318</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" align=left width="2%" bordercolor="#000000"
    >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left bordercolor="#000000"><B>Total cash
      costs </B></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=center width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
      width="12%" bordercolor="#000000">28,419 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=center width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
      width="12%" bordercolor="#000000">22,076 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left bordercolor="#000000"><B>Ounces of gold
      sold </B></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=center width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
      width="12%" bordercolor="#000000">55,397 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=center width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
      width="12%" bordercolor="#000000">51,700 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left bordercolor="#000000"><B>Total cash cost
      per ounce of gold </B></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=center width="1%" bordercolor="#000000"
    >$</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%" bordercolor="#000000">513
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=center width="1%" bordercolor="#000000"
    >$</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%" bordercolor="#000000">427
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD></TR></TABLE>
<P align=center>16</P>
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noShade SIZE=5>



<A name="page_18"></A>

<P align="justify">
<B><I>Liquidity and Capital Resources</I></B><BR>
</P>
<P align="justify">
<B>A</B>s of March 31, 2009, the Company held cash and cash equivalents of
$136.6 million (December 31, 2008 - $185.7 million). The decrease is attributed
to the following key items: </P>
<UL style="text-align:justify;">
<LI>
<p style="margin-top: 0; margin-bottom: 0">January 9, 2009 acquisition from noteholders of Cdn&#36;50.0 million face value of the Company&#146;s senior secured notes for Cdn&#36;30.0 million;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">Project spend at the New Afton project of Cdn&#36;22.4 million; and</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">Repayment of approximately &#36;7.0 million in short-term borrowings at Amapari.</LI>
</UL>
<P align="justify">
The Company&#146;s cash and cash equivalents are invested in highly liquid, low risk, interest-bearing investments with maturities of 90 days or less from the original date of acquisition. The counter-parties include banks, governments and
government agencies and surplus corporate funds are only invested in government or Canadian bank counter-parties. This does not include the asset backed commercial paper (&#147;ABCP&#148;) (refer to ABCP section in <I>Critical Accounting
Policies and Estimates</I> for further discussion on the ABCP). </P>
<P align="justify">
As of March 31, 2009, the Company had working capital of &#36;152.9 million (December 31, 2008 - &#36;189.2 million). During the quarter, the Company&#146;s working capital decreased by the use of cash as described above, which was partially
offset by the increase in accounts receivable at Peak Mines. Peak Mines accounts receivable were higher due to an increase in copper prices during the first quarter of 2009 from &#36;1.32 per pound to &#36;1.70 per pound and the prepayments
received. Accounts receivable was also impacted by the receipt of a &#36;22.8 million partial pre-payment in the fourth quarter of 2008 at an average price of &#36;1.79 per pound.</P>
<P align="justify">
In the opinion of management, the working capital at March 31, 2009, together with cash flows from operations, are sufficient to support the Company&#146;s normal operating requirements on an ongoing basis. However, taking into consideration the
Company&#146;s current cash position, volatile equity markets, global uncertainty in the capital markets and increasing cost pressures, the Company is continually reviewing expenditures in order to ensure adequate liquidity and flexibility to
support its growth strategy while maintaining production levels at its current operations. On March 4, 2009, the Company announced a business combination with Western Goldfields, which will support the Company&#146;s growth strategy with strong cash
flow to fund development at New Afton. The Company&#146;s special meeting of shareholders will be held on May 13, 2009 with expected closing of the business combination on June 1, 2009. </P>
<P align="justify">
During the quarter ended March 31, 2009, the Company had positive operating cash flows of &#36;7.5 million and invested a total of &#36;27.0 million in mining interests, including &#36;0.5 million at Amapari, &#36;4.7 million at Peak Mines,
&#36;0.9 million at CSP, &#36;0.5 million in Chile and &#36;20.4 million at New Afton.</P>
<P align="center">
17</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">




<A name="page_19"></A>

<P align="justify">
<B><I>Liquidity and Capital Resources Outlook</I></B><BR>
</P>
<P align="justify">
The Company&#146;s future profits and cash position are highly dependent on metal prices, including gold, silver and copper. Copper will become increasingly important when the New Afton and El Morro projects are completed post-2011. In addition
to these internal growth opportunities, the Company has other prospective properties which include, but are not limited to, Rio Figueroa, Cerro San Pedro Deeps, Amapari sulphides, the Abacus joint venture at New Afton and Liberty Bell in Alaska.
Internal growth will focus on New Afton and El Morro; however there are other potential development properties that may become high priorities as further exploration and assessment is completed. In order to supplement this internal growth, the
Company will consider expansion through mergers and acquisitions. </P>
<P align="justify">
Capital expenditures for the remaining nine months of 2009 are expected to be approximately &#36;57.2 million with &#36;38.1 million (excluding capitalized interest) allocated to continued development of New Afton and &#36;15.4 million allocated
to Peak Mines and &#36;3.3 million to CSP. The remaining 2009 New Afton project capital expenditures include approximately &#36;7.2 million for cancellation and completion costs for equipment orders in place at the time of the announcement of the
slowdown in November 2008. These cancellation and completion costs should be fully paid by the end of June 2009 and the demobilization of all contractors should be complete by mid-June 2009, as indicated in the December 31, 2008 Management
Discussion &amp; Analysis, after contractors have completed the testing of the mills. </P>
<P align="justify">
Management believes that the Company will need external financing (which may include acquisitions of cash generating mines, bank borrowings and future debt and equity offerings) to complete its major development projects, however these
development projects are not likely to commence full construction until the second half of 2010 at the earliest. However, as noted above, a successful completion of the business combination with Western Goldfields would fund the development at New
Afton. Low copper prices may necessitate the deferral of capital expenditures which may impact future production from mining operations. In addition, the Company will need external financing to repay its long-term debt in 2014 and 2017. These
statements are based on the current financial position of the Company and are subject to change if any acquisitions or external growth opportunities are realized. </P>
<P align="justify">
In May 2008, the Company entered into a one year &#36;25.0 million revolving credit facility, which is secured on the assets of the Metallica group of companies and is available for general corporate purposes. Amounts drawn incur interest at
LIBOR plus 1.5% per annum and undrawn amounts are subject to a 0.5% per annum commitment fee. At March 31, 2009 the Company had not drawn on the facility. </P>
<P align="center">
18</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">

<A name=page_20></A><STRONG><EM>Contractual
Obligations </EM></STRONG><BR><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 height="82">

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-top-style:solid; border-top-width:1" align=left height="17"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" align=center width="50%"
     colSpan=15 height="17"><FONT size=2></FONT><FONT size=2></FONT><FONT
      size=2><B>Payments due by period </B></FONT><FONT size=2></FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1" height="15" nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="1%" style="border-left-style: solid; border-left-width: 1" height="15" nowrap ></TD>
    <TD align=center width="7%" height="15" nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD align=center width="2%" style="border-right-style: solid; border-right-width: 1" height="15" nowrap ></TD>
    <TD align=center width="1%" style="border-left-style: solid; border-left-width: 1" height="15" nowrap ></TD>
    <TD align=center width="7%" height="15" nowrap><FONT size=2><B>Less than </B></FONT></TD>
    <TD align=center width="2%" style="border-right-style: solid; border-right-width: 1" height="15" nowrap ></TD>
    <TD align=center width="1%" style="border-left-style: solid; border-left-width: 1" height="15" nowrap ></TD>
    <TD align=center width="7%" height="15" nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD align=center width="2%" style="border-right-style: solid; border-right-width: 1" height="15" nowrap ></TD>
    <TD align=center width="1%" style="border-left-style: solid; border-left-width: 1" height="15" nowrap ></TD>
    <TD align=center width="7%" style="border-right-style: solid; border-right-width: 1" height="15" nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD align=center width="2%" style="border-left-style: solid; border-left-width: 1" height="15" nowrap ></TD>
    <TD align=center width="1%" height="15" nowrap ></TD>
    <TD align=center width="7%" height="15" nowrap><FONT size=2><B>After 5 </B></FONT></TD>
    <TD align=center width="2%" style="border-right-style: solid; border-right-width: 1; border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium" height="15" nowrap ></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left height="16" nowrap><FONT
      size=2>&nbsp;<B>Contractual obligations (in 000's US$) </B></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=left width="1%" height="16" nowrap
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="7%" height="16" nowrap><FONT
      size=2><B>Total </B></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" align=center width="2%" height="16" nowrap
    ></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=center width="1%" height="16" nowrap
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="7%" height="16" nowrap><FONT
      size=2><B>1 year </B></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" align=center width="2%" height="16" nowrap
    ></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=center width="1%" height="16" nowrap
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="7%" height="16" nowrap><FONT
      size=2><B>1 </B><B>- </B><B>3 years </B></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" align=center width="2%" height="16" nowrap
    ></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=center width="1%" height="16" nowrap
    ></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" align=center width="7%" height="16" nowrap><FONT
      size=2><B>4 </B><B>- </B><B>5 years </B></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=center width="2%" height="16" nowrap
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%" height="16" nowrap
    ></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=center width="7%" height="16" nowrap><FONT
      size=2><B>years </B></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1; border-top-style:none; border-top-width:medium" align=center width="2%" height="16" nowrap
    ></TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1" height="1"><FONT size=2>&nbsp;<B>Long</B><B>-</B><B>term debt
      </B></FONT></TD>
    <TD align=left width="1%" style="border-left-style: solid; border-left-width: 1" height="1" ><FONT size=2><B>$</B></FONT></TD>
    <TD align=right width="7%" height="1"><FONT size=2><B>192,027 </B></FONT></TD>
    <TD align=left width="2%" style="border-right-style: solid; border-right-width: 1" height="1" ></TD>
    <TD align=left width="1%" style="border-left-style: solid; border-left-width: 1" height="1" ><FONT size=2><B>$</B></FONT></TD>
    <TD align=right width="7%" height="1"><FONT size=2><B>0 </B></FONT></TD>
    <TD align=left width="2%" style="border-right-style: solid; border-right-width: 1" height="1" ></TD>
    <TD align=left width="1%" style="border-left-style: solid; border-left-width: 1" height="1" ><FONT size=2><B>$</B></FONT></TD>
    <TD align=right width="7%" height="1"><FONT size=2><B>0 </B></FONT></TD>
    <TD align=left width="2%" style="border-right-style: solid; border-right-width: 1" height="1" ></TD>
    <TD align=left width="1%" style="border-left-style: solid; border-left-width: 1" height="1" ><FONT size=2><B>$</B></FONT></TD>
    <TD align=right width="7%" style="border-right-style: solid; border-right-width: 1" height="1"><FONT size=2><B>0 </B></FONT></TD>
    <TD align=left width="2%" style="border-left-style: solid; border-left-width: 1" height="1" ></TD>
    <TD align=left width="1%" height="1" ><FONT size=2><B>$</B></FONT></TD>
    <TD align=right width="7%" height="1" style="border-right-style: none; border-right-width: medium"><FONT size=2><B>192,027 </B></FONT></TD>
    <TD align=left width="2%" style="border-left-style: none; border-left-width: medium; border-right-style: solid; border-right-width: 1; border-bottom-style: none; border-bottom-width: medium" height="1" ></TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1" height="15"><FONT size=2>&nbsp;<B>Interest payable on
      long</B><B>-</B><B>term debt </B></FONT></TD>
    <TD align=left width="1%" style="border-left-style: solid; border-left-width: 1" height="15" ></TD>
    <TD align=right width="7%" height="15"><FONT size=2><B>182,346 </B></FONT></TD>
    <TD align=left width="2%" style="border-right-style: solid; border-right-width: 1" height="15" ></TD>
    <TD align=left width="1%" style="border-left-style: solid; border-left-width: 1" height="15" ></TD>
    <TD align=right width="7%" height="15"><FONT size=2><B>20,988 </B></FONT></TD>
    <TD align=left width="2%" style="border-right-style: solid; border-right-width: 1" height="15" ></TD>
    <TD align=left width="1%" style="border-left-style: solid; border-left-width: 1" height="15" ></TD>
    <TD align=right width="7%" height="15"><FONT size=2><B>41,976 </B></FONT></TD>
    <TD align=left width="2%" style="border-right-style: solid; border-right-width: 1" height="15" ></TD>
    <TD align=left width="1%" style="border-left-style: solid; border-left-width: 1" height="15" ></TD>
    <TD align=right width="7%" style="border-right-style: solid; border-right-width: 1" height="15"><FONT size=2><B>41,976 </B></FONT></TD>
    <TD align=left width="2%" style="border-left-style: solid; border-left-width: 1" height="15" ></TD>
    <TD align=left width="1%" height="15" ></TD>
    <TD align=right width="7%" height="15" style="border-right-style: none; border-right-width: medium"><FONT size=2><B>77,406 </B></FONT></TD>
    <TD align=left width="2%" style="border-left-style: none; border-left-width: medium; border-right-style: solid; border-right-width: 1; border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium" height="15" ></TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1" height="15"><FONT size=2>&nbsp;<B>Commitments &amp; permits
    </B></FONT></TD>
    <TD align=left width="1%" style="border-left-style: solid; border-left-width: 1" height="15" ></TD>
    <TD align=right width="7%" height="15"><FONT size=2><B>22,934 </B></FONT></TD>
    <TD align=left width="2%" style="border-right-style: solid; border-right-width: 1" height="15" ></TD>
    <TD align=left width="1%" style="border-left-style: solid; border-left-width: 1" height="15" ></TD>
    <TD align=right width="7%" height="15"><FONT size=2><B>19,363 </B></FONT></TD>
    <TD align=left width="2%" style="border-right-style: solid; border-right-width: 1" height="15" ></TD>
    <TD align=left width="1%" style="border-left-style: solid; border-left-width: 1" height="15" ></TD>
    <TD align=right width="7%" height="15"><FONT size=2><B>3,571 </B></FONT></TD>
    <TD align=left width="2%" style="border-right-style: solid; border-right-width: 1" height="15" ></TD>
    <TD align=left width="1%" style="border-left-style: solid; border-left-width: 1" height="15" ></TD>
    <TD align=right width="7%" style="border-right-style: solid; border-right-width: 1" height="15"><FONT size=2><B>0 </B></FONT></TD>
    <TD align=left width="2%" style="border-left-style: solid; border-left-width: 1" height="15" ></TD>
    <TD align=left width="1%" height="15" ></TD>
    <TD align=right width="7%" height="15" style="border-right-style: none; border-right-width: medium"><FONT size=2><B>0 </B></FONT></TD>
    <TD align=left width="2%" style="border-left-style: none; border-left-width: medium; border-right-style: solid; border-right-width: 1; border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium" height="15" ></TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1" height="15"><FONT size=2>&nbsp;<B>Other </B></FONT></TD>
    <TD align=left width="1%" style="border-left-style: solid; border-left-width: 1" height="15" ></TD>
    <TD align=right width="7%" height="15"><FONT size=2><B>337 </B></FONT></TD>
    <TD align=left width="2%" style="border-right-style: solid; border-right-width: 1" height="15" ></TD>
    <TD align=left width="1%" style="border-left-style: solid; border-left-width: 1" height="15" ></TD>
    <TD align=right width="7%" height="15"><FONT size=2><B>198 </B></FONT></TD>
    <TD align=left width="2%" style="border-right-style: solid; border-right-width: 1" height="15" ></TD>
    <TD align=left width="1%" style="border-left-style: solid; border-left-width: 1" height="15" ></TD>
    <TD align=right width="7%" height="15"><FONT size=2><B>139 </B></FONT></TD>
    <TD align=left width="2%" style="border-right-style: solid; border-right-width: 1" height="15" ></TD>
    <TD align=left width="1%" style="border-left-style: solid; border-left-width: 1" height="15" ></TD>
    <TD align=right width="7%" style="border-right-style: solid; border-right-width: 1" height="15"><FONT size=2><B>0 </B></FONT></TD>
    <TD align=left width="2%" style="border-left-style: solid; border-left-width: 1" height="15" ></TD>
    <TD align=left width="1%" height="15" ></TD>
    <TD align=right width="7%" height="15" style="border-right-style: none; border-right-width: medium"><FONT size=2><B>0 </B></FONT></TD>
    <TD align=left width="2%" style="border-left-style: none; border-left-width: medium; border-right-style: solid; border-right-width: 1; border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium" height="15" ></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left height="16"><FONT
      size=2>&nbsp;<B>Asset retirement obligations </B></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=left width="1%" height="16"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%" height="16"><FONT
      size=2><B>33,200 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" align=left width="2%" height="16"
    ></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=left width="1%" height="16"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%" height="16"><FONT
      size=2><B>0 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" align=left width="2%" height="16"
    ></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=left width="1%" height="16"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%" height="16"><FONT
      size=2><B>13,000 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" align=left width="2%" height="16"
    ></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=left width="1%" height="16"
    ></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" align=right width="7%" height="16"><FONT
      size=2><B>0 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=left width="2%" height="16"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" height="16"
    ></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="7%" height="16"><FONT
      size=2><B>20,200 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1; border-top-style:none; border-top-width:medium" align=left width="2%" height="16"
    ></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" align=left height="1"><FONT
      size=2>&nbsp;<B>Total contractual obligations </B></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=left width="1%" height="1"
    ><FONT size=2><B>$</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%" height="1"><FONT
      size=2><B>430,844 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" align=left width="2%" height="1"
    ></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=left width="1%" height="1"
    ><FONT size=2><B>$</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%" height="1"><FONT
      size=2><B>40,549 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" align=left width="2%" height="1"
    ></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=left width="1%" height="1"
    ><FONT size=2><B>$</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%" height="1"><FONT
      size=2><B>58,686 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" align=left width="2%" height="1"
    ></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=left width="1%" height="1"
    ><FONT size=2><B>$</B></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" align=right width="7%" height="1"><FONT
      size=2><B>41,976 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=left width="2%" height="1"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" height="1"
    ><FONT size=2><B>$</B></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="7%" height="1"><FONT
      size=2><B>289,633 </B></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" align=left width="2%" height="1"
    ></TD></TR></TABLE>
<P align=justify>The majority of the Company&#146;s contractual obligations consist
of long-term debt and interest payable. Long-term debt obligations comprise of
senior secured notes and subordinated convertible debentures. The senior secured
notes (&#147;Notes&#148;), which were originally issued by NGI pursuant to a note
indenture dated June 28, 2007, mature and become payable on June 28, 2017 and
bear interest at a rate of 10% per annum. At March 31, 2009 the face value of
the Notes totaled Cdn$187.0 million with remaining interest payable totaling
Cdn$229.8 million. Interest is payable in arrears in equal semi-annual
installments on January 1 and July 1 each year. Once the New Afton project is in
commercial production the Company is obliged to offer to repay a face value
amount equal to 50.0% of excess cash flow each year, at the option of the
noteholders. The Company also has the option to prepay the Notes at a premium
ranging from 117.0% to 101.0% (decreasing based on the length of time the Notes
are outstanding). These Notes are secured on the New Afton project assets and do
not have recourse to the other assets of New Gold. </P>
<P align=justify>The Company has 55,000 subordinated convertible debentures that
bear interest at a rate of 5.0% per annum and are convertible by the holders
into common shares of the Company at any time up to June 28, 2014. At March 31,
2009 the aggregate principal of the subordinated convertible debentures was
Cdn$55.0 million with remaining interest payable totaling $15.6 million.
Interest is payable in arrears in equal semi-annual installments on January 1
and July 1 each year.</P>
<P align=center>19</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>



<A name="page_21"></A>

<P align="justify">
<B><I>Commitments</I></B><BR>
</P>
<P align="justify">
The Company has entered into a number of contractual commitments related to equipment to purchase long lead items or critical pieces of mining equipment related to the New Afton project. At March 31, 2009, these commitments totaled &#36;6.2
million and are expected to fall due over the next 12 months.</P>
<P align="justify">
In addition to the above, the Company has entered into a number of contractual commitments related to equipment orders to purchase long lead items or critical pieces of mining equipment at its operating mines. At March 31, 2009, these commitments
totaled &#36;13.2 million and are expected to be paid over the next 12 months. </P>
<P align="justify">
<B><I>Contingencies</I></B><BR>
</P>
<P align="justify">
The Company terminated various employment, consulting and service agreements as a result of slowing development activities at the New Afton project and placing Amapari on temporary care and maintenance. Certain of the affected parties may make
legal claims in response to such terminations, but to date no such claims have been commenced. The Company cannot reasonably predict the likelihood or outcome of any such actions, but would vigorously defend against them.<I> </I></P>
<P align="justify">
The Company has received notice that legal claims in the amount of approximately &#36;33.4 million have been filed in Brazilian courts against the Company&#146;s subsidiary, Minera&ccedil;&atilde;o Pedra Branca do Amapari Ltda (&#147;MPBA&#148;).
The claims allege that MPBA has adversely impacted the quality of William Creek causing economic loss and health concerns. The Company believes that these claims are unfounded and intends to vigorously defend against them. </P>
<P align="justify">
The Company is, from time to time, involved in various claims, legal proceedings and complaints arising in the ordinary course of business, including challenges related to its Environmental Impact Statement at Cerro San Pedro Mine. The Company
cannot reasonably predict the likelihood or outcome of these actions. The Company does not believe that adverse decisions in any other pending or threatened proceedings related to any matter, or any amount which may be required to be paid by reason
therein, will have a material effect on the financial condition or future results of operations. </P>
<P align="justify">
<B><I>Off-Balance Sheet Transactions <br>
</I></B><BR>
The Company has no off-balance sheet arrangements.<BR>
</P>
<P align="justify">
<B><I>Outstanding Shares</I></B></P>

<P align="justify">
As of May 11, 2009, there were 212,860,746 common shares of the Company outstanding. The Company had 11,005,338 stock options outstanding under its share option plan. In addition, the Company had 60,136,032 common share purchase warrants
outstanding. </P>
<P align="center">
20</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">




<A name="page_22"></A>

<P align="justify">
<B><I>Accounting Policies implemented effective January 1, 2009 </I></B></P>
<P align="justify">
Effective January 1, 2009, the Company adopted Section 3064, Goodwill and Intangible Assets, which replaces Section 3062, and establishes revised standards for recognition, measurement, presentation and disclosure of goodwill and intangible
assets. Concurrent with the introduction of this standard, the CICA withdrew EIC 27, Revenues and Expenditures in the Pre-operating Period (&#147;EIC 27&#148;). The adoption of Section 3062 did not have a material impact on the Company&#146;s
consolidated financial position and results of operations for the period ended March 31, 2009.</P>
<P align="justify">
Effective January 1, 2009, the Company adopted the CICA issued Handbook Sections 1582, Business Combinations, (&#147;Section 1582&#148;), 1601, Consolidated Financial Statements, (&#147;Section 1601&#148;) and 1602, Non-controlling Interests,
(&#147;Section 1602&#148;) which replaces CICA Handbook Sections 1581, Business Combinations, and 1600, Consolidated Financial Statements. Section 1582 establishes standards for the accounting for business combinations that is equivalent to the
business combination accounting standard under International Financial Reporting Standards (&#147;IFRS&#148;). Section 1582 is applicable for the Company&#146;s business combinations with acquisition dates on or after January 1, 2009. Section 1601
together with Section 1602 establishes standards for the preparation of consolidated financial statements. Sections 1601 and 1602 are applicable for the Company&#146;s interim and annual consolidated financial statements for its fiscal year
beginning January 1, 2009. </P>
<P align="justify">
While the adoption of these sections had no material impact on the quarter-ended March 31, 2009, it will have a significant impact on how the Company accounts for the proposed business combination with Western Goldfields. The expected impact is
as follows: </P>
<UL style="text-align:justify;">
<LI>
<p style="margin-top: 0; margin-bottom: 0">Transaction costs are no longer capitalized and must be expensed as incurred</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">Measurement date for equity interests issued by the acquirer is at the date of close and no longer the average of a few days before and after terms are agreed to and announced</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">Bargain purchase (i.e. negative goodwill) is no longer treated as a pro rata reduction of any assets, instead the entire excess is recorded as a gain in the period the acquisition occurs</LI>
</UL>
<P align="justify">
As part of the Proposed Transaction, the Company has incurred approximately &#36;0.7 million in transaction related costs.</P>
<P align="justify">
<B><I>Critical Accounting Policies and Estimates</I></B><BR>
</P>
<P align="justify">
In preparing financial statements, management has to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Based on historical experience, current market conditions and expert advice,
management makes assumptions that are believed to be reasonable under the circumstances. These estimates and assumptions form the basis for judgments about the carrying value of assets and liabilities and reported amounts for revenues and expenses.
The Company&#146;s accounting policies relating to work-in-progress inventory valuation, depreciation and depletion of mineral property, plant and equipment and site reclamation and closure accruals are critical accounting policies that are subject to estimates and assumptions regarding reserves, recoveries, future metal prices and future mining activities. All estimates used are subject to periodic review and are adjusted as
appropriate. Life of mine plans are prepared each year, so all estimates relating to mining activities, reserves, recoveries and gold prices are re-assessed annually, or more frequently as determined by management. Because of the ongoing review
process, the Company has been able to update its estimates on a timely basis as developments affecting the underlying assumptions have necessitated such modifications. </P>
<P align="center">
21</P>

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<A name="page_23"></A>

<P align="justify">
<B><I>Asset Backed Commercial Paper (ABCP)</I></B><BR>
</P>
<P align="justify">
Since 2007, the Company has owned non-bank ABCP which has been the subject of a restructuring process to replace the short-term ABCP with a number of long-term floating rate notes. The restructuring plan, which was completed on January 21, 2009,
pooled all of the underlying assets from all the ABCP trusts with the exception of those assets designated as ineligible for pooling (&#147;Ineligible Assets&#148;) and those series of assets backed exclusively by traditional financial assets
(&#147;Traditional Series&#148;). ABCP relating to the pooled assets was replaced with four classes of notes named A1, A2, B and C in declining order of seniority. ABCP relating to Ineligible Assets and Traditional Series was replaced with new
tracking notes whose characteristics are designed to track the performance of the particular assets of the series to which they correspond. The notes based on Ineligible Assets and Traditional Series do not have a prescribed interest rate, but
rather plan to distribute income as it is received from the underlying assets, less administrative expenses. </P>
<P align="justify">
The Company has estimated the fair value of ABCP at March 31, 2009 by using a discounted cash flow approach which estimated the cash flows to be received in respect of each class of notes and then discounted each class of notes at a rate that
reflects an estimated yield requirement for that particular class. There can be no assurance that this estimate will be realized in the market. Subsequent adjustments, which could be material, may be required in future reporting periods.</P>
<P align="justify">
Subsequent to March 31, 2009 the Company received Cdn&#36;9.4 million as a return of capital of the Cdn&#36;9.5 million face value Mav3 class 9 ABCP, which represents 99% of the original principal invested. </P>
<P align="justify">
A number of the notes to be received by the Company are not rated by any credit rating agency and the Company has not yet had access to the underlying asset information which would enable it to conduct its own assessment of the credit quality of
the new notes. Accordingly, the Company&#146;s valuation and credit assumptions rely heavily on the limited information that has been disclosed during the restructuring process and since its completion. </P>
<P align="justify">
When the ABCP restructuring was completed on January 21, 2009, the Company received its new notes. Additionally, income relating to the period from when the ABCP was initially purchased in 2007 until August 31, 2008 was distributed to all
investors. New Gold received Cdn&#36;5.8 million in respect of its holdings. This amount was accrued in the value of the notes as at December 31, 2008, but it is not included as at March 31, 2009 because the Company has received cash. Additionally,
the Company&#146;s ABCP earned income during the period from September 1, 2008 until the completion of the restructuring on January 21, 2009 has not yet been distributed. This amount has not been accrued because there is uncertainty as to the amount
of income and the timing of its distribution. </P>
<P align="center">
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<A name="page_24"></A>

<P align="justify">
Going forward, most of the Company&#146;s notes will generate current income commensurate with the income earned on the assets that support the notes. During the period ending March 31, 2009 no current income had yet been received.</P>
<P align="justify">
<B><I>Inventories</I></B><BR>
</P>
<P align="justify">
Finished goods, work-in-progress, heap leach ore and stockpile ore are valued at the lower of average production costs or net realizable value. </P>
<P align="justify">
The Company records the cost of mining ore stacked on its leach pads and in process at one of its mines as work-in-progress inventory and values work-in progress inventory at lower of cost or estimated net realizable value. These costs are
charged to earnings and included in cost of sales on the basis of ounces of gold recovered. The assumptions used in the valuation of work-in-process inventories include estimates of metal contained in the ore stacked on leach pads, assumptions of
the amount of metal stacked that is expected to be recovered from the leach pads, the amount of metal in these mill circuits and an assumption of the metal price expected to be realized when the metal is recovered. If these estimates or assumptions
prove to be inaccurate, the Company could be required to write-down the recorded value of its work-in-process inventories, which would reduce the Company&#146;s earnings and working capital. </P>
<P align="justify">
<B><I>Mineral Properties</I></B><BR>
</P>
<P align="justify">
The Company records mineral property acquisition expenditures and mine development expenditures at cost. The Company capitalizes pre-production expenditures net of revenues received until the commencement of commercial production in accordance
with GAAP.</P>
<P align="justify">
A significant portion of the Company&#146;s mineral property, plant and equipment is depreciated and amortized on a unit-of-production basis. Under the unit-of-production method, the calculation of depreciation, depletion and amortization of
mineral property, plant and equipment is based on the amount of reserves expected to be recovered from each location. If these estimates of reserve prices turn out to be inaccurate, or if the Company revises its mining plan for a location due to
reductions in the price of gold or otherwise to reduce the amount of reserves expected to be recovered, the Company could be required to write-down the recorded value of the mineral property, plant and equipment or to increase the amount of future
depreciation, depletion and amortization expense, both of which would reduce the Company&#146;s earnings and net assets. </P>
<P align="justify">
In addition, GAAP requires the Company to consider at the end of each accounting period whether or not there has been an impairment of capitalized mineral property, plant and equipment. Based on management&#146;s current view of future metal
prices, foreign exchange rates, and cost assumptions, the carrying value of the New Afton project was not impaired at the end of the current accounting period.</P>
<P align="justify">
For producing properties, this assessment is based on whether factors are present that may indicate a need for a write-down. If the Company determines there has been an impairment because its prior estimates of future cash flows have proven to be
inaccurate, due to reductions in the price of gold, increases in the costs of production, reductions in the amount of reserves expected to be received or otherwise, or because the Company has determined that the deferred costs of non-producing properties may not be recovered based on current economics or permitting considerations, the Company would
be required to write-down the recorded value of its mineral property, plant and equipment, which would reduce the Company&#146;s earnings and net assets. The Company confirms that there were no factors present that would indicate a write-down was
necessary at the end of the current accounting period. </P>
<P align="center">
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<A name="page_25"></A>

<P align="justify">
<B><I>Reclamation Obligations </I></B></P>
<P align="justify">
The Company has an obligation to reclaim its properties after the minerals have been mined from the site and has estimated the costs necessary to comply with exiting reclamation standards. Generally accepted accounting principles require the
Company to recognize the fair value of a liability for an asset retirement obligation, such as site closure and reclamation costs, in the period in which it is incurred if a reasonable estimate of fair value can be made. The Company records the
estimated present value of future cash flows associated with site closure and reclamation as a liability when the liability is incurred and increases the carrying value of the related assets by the same amount. Subsequently, these asset retirement
costs are amortized to expense over the life of the related assets using the unit-of-production method. At the end of each period the liability is increased to reflect the passage of time (accretion expense) and changes in the estimated future cash
flows underlying any initial fair value measurements (additional asset retirement costs). If these estimates of costs or recoverable mineral resources prove to be inaccurate, the Company could be required to write-down the recorded value of its
mineral property or increase the amount of future depreciation and accretion expense, or both, all of which would reduce the Company&#146;s earnings and net assets. </P>
<P align="justify">
<B><I>Future Tax Assets and Liabilities</I></B><BR>
</P>
<P align="justify">
The Company recognizes the future tax benefit related to future income tax assets and sets up a valuation allowance against any portion of those assets that it believes will, more likely than not, fail to be realized. Assessing the recoverability
of future income tax assets requires management to make significant estimates related to expectations of future taxable income. Estimates of future taxable income are based on forecast cash flows from operations and the application of existing tax
laws in each jurisdiction.</P>
<P align="justify">
In circumstances where the applicable tax laws and regulations are either unclear or subject to ongoing varying interpretations, it is reasonably possible that the changes in these estimates could occur and materially affect the amount of future
income tax liabilities recorded at the balance sheet date.</P>
<P align="justify">
<B><I>Revenue Recognition</I></B><BR>
</P>
<P align="justify">
Revenue from the sale of metals is recognized in the accounts when persuasive evidence of an arrangement exists, title and risk passes to buyer, collection is reasonably assured and the price is reasonably determinable. Revenue from the sale of
metals in concentrate may be subject to adjustment upon final settlement of estimated metal prices, weights and assays. Adjustments to revenue for metal prices are recorded monthly and other adjustments are recorded on final settlement. These types
of adjustments can have a material impact on revenues.</P>
<P align="justify">
<B><I>Stock-based compensation</I></B></P>

<P align="justify">
CICA Handbook, Section 3870, Stock-based Compensation and Other Stock-Based Payments establishes standards for the recognition, measurement and disclosure of stock-based compensation and other stock-based payments made in exchange for goods and
services. Compensation expense is determined using the Black-Scholes Option Pricing Model based on estimated fair values of all stock-based awards at the date of grant and is expensed to operations over each award&#146;s vesting period. The
Black-Scholes Option Pricing Model utilizes subjective assumptions such as expected price volatility and expected life of the option. Changes in these input assumptions can significantly affect the fair value estimate.</P>
<P align="center">
24</P>

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<A name="page_26"></A>

<P align="justify">
<B><I>Financial Instruments</I></B><BR>
</P>
<P align="justify">
The Company thoroughly examines the various financial instrument risks to which it is exposed and assesses the impact and likelihood of those risks. The following discussion on risks and risk management includes some of the required disclosures
under the CICA Handbook Section 3862 &#150; Financial Instruments &#150; Disclosures related to the nature and extent of risks arising from financial instruments, as required by the standard. The Company is exposed to a number of risks associated
with financial instruments that have the potential to impact operating and financial performance. The Company&#146;s primary financial instrument risk exposures are liquidity risk, currency risk, commodity price risk and credit risk. (Refer to the
Company&#146;s 2008 audited consolidated financial statements for further information).</P>
<P align="justify">
<B><I>International Financial Reporting Standards (&#147;IFRS&#148;)</I></B></P>
<P align="justify">
In February 2008, the Canadian Accounting Standards Board (&#147;AcSB&#148;) confirmed January 1, 2011 as the date IFRS will replace current Canadian generally accepted accounting principles (GAAP) for publicly accountable enterprises. This will
result in the Company reporting under IFRS starting with the interim period ending March 31, 2011, with restatement for comparative purposes of amounts reported under Canadian GAAP.</P>
<P align="justify">
The conversion to IFRS will likely impact the Company&#146;s statement of financial position and results of operations. To transition to IFRS, changes may be required to the Company&#146;s information technology and data systems, internal control
over financial reporting, disclosure controls and procedures, financial reporting expertise and training requirements, and business activities, such as compensation programs, debt covenants and other contractual arrangements. </P>
<P align="justify">
In the first quarter of 2009, the Company completed a high-level impact assessment to identify key areas that will be affected by the conversion. A project team has been established to manage the conversion process, and a detailed IFRS conversion
plan has been completed. The detailed analysis of the IFRS &#150; Canadian GAAP differences, and the selection of accounting policy choices under IFRS has commenced and is expected to be completed by the end of fourth quarter 2009. The Company will
continuously monitor changes in IFRS leading up to the changeover date, and will update its conversion plan as required. </P>
<P align="justify">
<B><I>Outlook</I></B></P>

<P align="justify">
On-going weaker global economic conditions and tight credit markets continue to underpin the general global outlook. However, some preliminary signs of recovery in the global economy and stock markets have precipitated an increase in base metal
prices, including copper from &#36;1.32 per pound at the end of December 2008 to &#36;1.83 per pound at the end of March 2009. In addition, gold and silver prices have increased slightly from December 2008 with closing prices of &#36;870 per ounce
and &#36;10.79 per ounce to &#36;917 and &#36;13.11 respectively at the end of March 2009. Volatility continues to be high and forecasting metal prices and demand, particularly base metals such as copper, has been difficult. However, in light of the
recent signs of strengthening of the markets management believes that the long term environment and prospects for our business remain favorable. </P>
<P align="center">
25</P>

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<A name="page_27"></A>

<P align="justify">
In the current volatile global economic environment, the Company intends to preserve capital and maximize cash balances while maintaining flexibility and a strong balance sheet. New Gold is committed to maximizing cash balances by increasing
operating cash flow, containing costs, controlling expansion capital and reviewing strategic alternatives for non-core assets. This commitment is evidenced through the recent decisions to slow down the development of the New Afton project, and
temporarily suspend mining operations at Amapari while we evaluate the PE of the sulphide resource and consider strategic alternatives. The assessment has been completed, which is preliminary in nature, and there is no certainty that this assessment
will be realized. However, additional work is justified to improve the reliability of the estimates and to further investigate the opportunities that exist.</P>
<P align="justify">
As inflation and general price levels continue to moderate or even decrease, the Company is experiencing and continues to expect to achieve lower costs in the areas of consumables, steel, transportation and other products and services. In
addition, New Gold has benefited from and continues to expect to benefit from recent favorable movements in local currencies (against the US dollar) where the Company operates, particularly in Canada, Australia and Mexico. In Australia, the
declining currency effectively serves as a natural hedge to declining copper and other metal prices. We have not hedged metal prices and foreign exchange rates. </P>
<P align="justify">
New Gold&#146;s growth plan is focused on organic and acquisition led growth and the Company is seeking to maintain flexibility in the current environment in order to be able to respond to opportunities as they arise, such as acquisitions, debt
buybacks and other transactions. In order to fund its major development properties, namely the New Afton project and the El Morro project, the Company will need external financing. However, the Proposed Transaction would provide strong cash flow
from the Mesquite mine in order to fully fund the development of the New Afton project. Other sources of external financing may include acquisitions of other cash generating mines, bank borrowings and future debt and equity offerings. There can be
no assurance that financing will be available on acceptable terms if the current economic environment does not become more favourable, however these projects are of a long term nature and short term financing is not required. </P>
<P align="justify">
New Gold&#146;s operations are forecasting 2009 gold production of between 190,000 and 210,000 ounces, which remains unchanged at the end of the first quarter of 2009. Total cash cost for 2009 is expected to be between &#36;465 and &#36;485 per
ounce (net of by-product sales), which also remains unchanged at March 31, 2009. </P>
<P align="justify">
<BR>
</P>
<P align="center">
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<A name="page_28"></A>

<P align="justify">
<B><I>Controls and Procedures</I></B></P>

<P align="justify">
<B><I>Disclosure Controls and Procedures</I></B><BR>
</P>
<P align="justify">
Disclosure controls and procedures are designed to provide reasonable assurance that all relevant information is gathered and reported on a timely basis to senior management, so that appropriate decisions can be made regarding public disclosure.
As at the end of the period covered by this Management&#146;s Discussion and Analysis, management evaluated the effectiveness of the Company&#146;s disclosure controls and procedures as required by Canadian securities laws.</P>
<P align="justify">
Based on this evaluation, management has concluded that the disclosure controls and procedures were effective in providing reasonable assurance that information required to be disclosed in the Company&#146;s annual filings was appropriately
disclosed as such term is defined under National Instrument 52-109 &#150; Certification of Disclosure in Issuers&#146; Annual and Interim Filings (&#147;NI 52-109&#148;), is recorded, processed, summarized and reported within the time periods
specified by those laws, and that material information is accumulated and communicated to management as appropriate to allow timely decisions regarding required disclosure. </P>
<P align="justify">
<B><I>Internal Controls and Procedures</I></B><BR>
</P>
<P align="justify">
On May 9, 2008 NGI entered into an agreement to complete a business combination with Metallica and Peak Mines. The transaction was completed June 30, 2008 wherein the three companies consummated a reverse merger. Although the &#147;New Gold&#148;
name prevailed, Peak Gold Ltd. became the accounting acquirer. The new management of New Gold acting reasonably carefully considered the scope of their evaluation of internal control over financial reporting (ICFR) taking into consideration guidance
in National Instrument 52-109 Certification of Disclosure in Issuers&#146; Annual and Interim Filings when a business is acquired not more than 365 days before year end. Management concluded that it would be impractical to complete an evaluation of
the design and operational effectiveness of the controls over the Peak Gold Ltd. business, other that the controls over the period-end financial close process, as of December 31, 2008. Accordingly management excluded from its assessment the internal
control over financial reporting concerning the former Peak Gold Ltd. business other than the controls over the period-end financial close process from their evaluation of the design and operational effectiveness of ICFR as of December 31, 2008. </P>
<P align="justify">
The Company evaluated the design and operational effectiveness of its internal
control and procedures over financial reporting as defined under NI 52-109 for
the year ended December 31, 2008. Based on this evaluation, management has
concluded that the design and operational effectiveness of these internal
controls and procedures over financial reporting are effective. There has been
no change in the Company&#146;s design of internal controls and procedures over
financial reporting that has materially affected, as is reasonably likely to
materially affect, the Company&#146;s internal control over financial reporting
during the period covered by this Management&#146;s Discussion and Analysis.</P>
<P align="center">
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<A name="page_29"></A>

<P align="justify">
<B><I>Limitations on Controls and Procedures</I></B><BR>
</P>
<P align="justify">
The Company&#146;s management, including its President and Chief Executive Officer and Executive Vice President and Chief Financial Officer, believe that any internal controls and procedures for financial reporting, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Furthermore, a design of a control system must reflect the fact that there are resource constraints and the benefits
of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, they cannot provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been prevented
and detected. These inherent limitations include the realities that judgments in decision-making can be faulty and breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some
persons, by collusion of two or more people, or by unauthorized override control. The design of any system controls is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design
will succeed in achieving its stated goals under all potential future conditions. Accordingly, because of the inherent limitations in a cost effective control system, misstatements due to error or fraud may occur and not be detected.</P>
<P align="center">
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<A name="page_30"></A>

<P align="justify">
<B>CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS</B></P>
<P align="justify">
<I>This Management&#146;s Discussion and Analysis contains &#147;forward- looking statements&#148;, within the meaning of the United States Private Securities Litigation and Reform Act of 1995 and applicable Canadian Securities legislation.
Forward-looking statements include, but are not limited to, statements with respect to the future prices of gold, silver and copper, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and
amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency exchange rate fluctuations, requirements for
additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. Generally, these forward- looking statements can be identified
by the use of forward-looking terminology such as &#147;plans&#148;, &#147;expects&#148;, or &#147;does not expect&#148;, &#147;is expected&#148;, &#147;budget&#148;, &#147;scheduled&#148;, &#147;estimates&#148;, &#147;forecasts&#148;
,&#148;intends&#148; ,&#148; anticipates&#148;, or &#147;does not anticipate&#148;, or &#147;believes&#148;, or variations of such words and phrases or state that certain actions, events or results &#147;may&#148;, &#147;could&#148;,
&#147;would&#148;, &#147;might&#148; or &#147;will&#148; or &#147;will be taken&#148;, &#147;occur&#148; or &#147;be achieved&#148;. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause
the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: that The Company and Western Goldfields
will be able to satisfy the conditions of the business combination agreement announced on March 4, 2009, that the required approvals (shareholder, third party, regulatory and governmental) will be obtained, and all other conditions will be satisfied
or waived; the results of the preliminary assessment assessing the viability of a new process facility at Amapari; the Company is subject to significant capital requirements; fluctuations in the international currency markets and in the rates of
exchange of the currencies of Brazil, Canada, the United States, Australia, Mexico and Chile; price volatility in the spot and forward markets for commodities; impact of any hedging activities, including margin limits and margin calls; discrepancies
between actual and estimated production, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in national and local government legislation in Brazil, Canada, the United States,
Australia, Mexico and Chile; or any other country in which the Company currently or may in the future carry on business; taxation controls, regulations and political or economic developments in the countries in which the Company does or may carry on
business; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits; diminishing quantities or grades of reserves; competition; loss of key employees; additional funding
requirements; actual results of current exploration or reclamation activities; changes in project parameters as plans continue to be refined accidents; labour disputes; and defective title to mineral claims or property or contests over claims to
mineral properties. In addition, there are risks and hazards associated with the business of mineral exploration, development, and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins,
flooding and gold bullion losses (and risk of inadequate insurance or inability to obtain insurance, to cover these risks) as well as the &#147;Risks and Uncertainties&#148; included in his document and the section entitled &#147;Risk Factors&#148;
in the annual information form dated March 31, 2009 and management information circular dated April 8, 2009, both available on SEDAR at www.sedar.com Although the Company has attempted to identify important factors that would cause actual results to
differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated, or intended. There can be no assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements
contained herein, except in accordance with applicable securities laws.</I></P
>
<P align="center">
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>4
<FILENAME>ngd051209exh993.htm
<DESCRIPTION>EXHIBIT 99.3
<TEXT>
<html>

<head>
<title>New Gold Inc: Exhibit 99.3 - Prepared by TNT Filings Inc.</title>
</head>

<body>

<div style="border-top-style: solid; border-top-width: 1; padding-top: 1">
  <hr color="#000000" size="5">
</div>
<b><font size="2">
<p align="center">FORM 52-109F2 </p>
<p align="center">CERTIFICATION OF INTERIM FILINGS </p>
<p align="center">FULL CERTIFICATE </p>
</font></b><font SIZE="2" FACE="Arial">
<p align="justify">I, </font><font SIZE="2"><b>Robert Gallagher, Chief Executive
Officer of New Gold Inc.,</b> certify the following: </p>
</font><font SIZE="2"><i>
<p ALIGN="JUSTIFY">1.</i> </p>
<p ALIGN="JUSTIFY" style="margin-left: 4%; margin-top: -25.5pt"><i><b>Review</b></i>:
I have reviewed the interim financial statements and interim MD&amp;A (together, the
&quot;interim filings&quot;) of New Gold Inc. (the &quot;issuer&quot;) for the interim period ended
March 31, 2009. </p>
<i>
<p ALIGN="JUSTIFY">2.</i> </p>
<p ALIGN="JUSTIFY" style="margin-left: 4%; margin-top: -25.5pt"><i><b>No
misrepresentations</b></i>: Based on my knowledge, having exercised reasonable
diligence, the interim filings do not contain any untrue statement of a material
fact or omit to state a material fact required to be stated or that is necessary
to make a statement not misleading in light of the circumstances under which it
was made, with respect to the period covered by the interim filings.</font><i><font size="2">
</p>
<p ALIGN="JUSTIFY">3.</font></i><font size="2"> </font></p>
<p ALIGN="JUSTIFY" style="margin-left: 4%; margin-top: -25.5pt"><font size="2">
<i><b>Fair presentation</b></i>: Based on my knowledge, having exercised
reasonable diligence, the interim financial statements together with the other
financial information included in the interim filings fairly present in all
material respects the financial condition, results of operations and cash flows
of the issuer, as of the date of and for the periods presented in the interim
filings.</font><i><font size="2"> </p>
<p ALIGN="JUSTIFY">4.</font></i><font size="2"> </font></p>
<p ALIGN="JUSTIFY" style="margin-left: 4%; margin-top: -25.5pt"><font size="2">
<i><b>Responsibility</b></i>: The issuer&#146;s other certifying officer(s) and I are
responsible for establishing and maintaining disclosure controls and procedures
(DC&amp;P) and internal control over financial reporting (ICFR), as those terms are
defined in National Instrument 52-109 <i>Certification of Disclosure in Issuers&#146;
Annual and Interim Filings</i>, for the issuer. </p>
<i>
<p ALIGN="JUSTIFY">5.</i> </p>
<p ALIGN="JUSTIFY" style="margin-left: 4%; margin-top: -25.5pt"><i><b>Design</b></i>:
Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the
issuer&#146;s other certifying officer(s) and I have, as at the end of the period
covered by the interim filings<i> </p>
</i>
<p ALIGN="justify" style="margin-left: 4%">(a) </p>
<p ALIGN="justify" style="margin-left: 8%; margin-top: -25.5pt">designed DC&amp;P,
or caused it to be designed under our supervision, to provide reasonable
assurance that </p>
<p ALIGN="justify" style="margin-left: 8%">(i) </p>
<p ALIGN="justify" style="margin-left: 12%; margin-top: -25.5pt">material
information relating to the issuer is made known to us by others, particularly
during the period in which the interim filings are being prepared; and </p>
<p ALIGN="justify" style="margin-left: 8%">(ii) </p>
<p ALIGN="justify" style="margin-left: 12%; margin-top: -25.5pt">information
required to be disclosed by the issuer in its annual filings, interim filings or
other reports filed or submitted by it under securities legislation is recorded,
processed, summarized and reported within the time periods specified in
securities legislation; and </p>
<p ALIGN="justify" style="margin-left: 4%">(b) </p>
<p ALIGN="justify" style="margin-left: 8%; margin-top: -25.5pt">designed ICFR,
or caused it to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with the issuer&#146;s
GAAP. </p>
</font><i><font SIZE="2">
<p ALIGN="JUSTIFY">5.1 </p>
<p ALIGN="JUSTIFY" style="margin-left: 4%; margin-top: -25.5pt"><b>Control
framework:</b></font></i><font SIZE="2"> The control framework the issuer&#146;s
other certifying officer(s) and I used to design the issuer&#146;s ICFR is <i>
Internal Control</i><b> &#150; </b><i>Integrated Framework</i> published by the
Committee of Sponsoring Organizations of the Treadway Commission. </p>
</font><HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black noShade SIZE=5><i><font SIZE="2">
<p align="justify">5.2<b> </b></p>
<p align="justify" style="margin-left: 4%; margin-top: -25.5pt"><b>ICFR</b></font></i><font SIZE="2">
<b>&#150; material weakness relating to design</b>: N/A </font></p>
<i><font SIZE="2">
<p align="justify">5.3 </p>
<p align="justify" style="margin-left: 4%; margin-top: -25.5pt"><b>Limitation on
scope of design</b></font></i><font SIZE="2">: N/A </font></p>
<font SIZE="2"><i>
<p ALIGN="JUSTIFY">6.</i> </p>
<p ALIGN="JUSTIFY" style="margin-left: 4%; margin-top: -25.5pt"><i><b>Reporting
changes in ICFR: </b></i>The issuer has disclosed in its interim MD&amp;A any change
in the issuer&#146;s ICFR that occurred during the period beginning on January 1,
2009 and ended on March 31, 2009 that has materially affected, or is reasonably
likely to materially affect, the issuer&#146;s ICFR. </p>
<p align="justify">Date: May 12, 2009 </p>
</font>
<p align="justify"><font size="2"><i><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Robert Gallagher&quot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<br>
</u></i>Name: Robert Gallagher <br>
Title: Chief Executive Officer </p>
</font><hr color="#000000" size="5">

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.4
<SEQUENCE>5
<FILENAME>ngd051209exh994.htm
<DESCRIPTION>EXHIBIT 99.4
<TEXT>
<html>

<head>
<title>New Gold Inc: Exhibit 99.4 - Prepared by TNT Filings Inc.</title>
</head>

<body>

<div style="border-top-style: solid; border-top-width: 1; padding-top: 1">
  <hr color="#000000" size="5">
</div>
<b><font size="2">
<p align="center">FORM 52-109F2 </p>
<p align="center">CERTIFICATION OF INTERIM FILINGS </p>
<p align="center">FULL CERTIFICATE </p>
</font></b><font SIZE="2" FACE="Arial">
<p align="justify">I, </font><font SIZE="2"><b>Basil Huxham, Executive Vice
President and Chief Financial Officer of New Gold Inc</b>., certify the
following: </p>
</font><font SIZE="2"><i>
<p ALIGN="JUSTIFY">1.</i> </p>
<p ALIGN="JUSTIFY" style="margin-left: 4%; margin-top: -25.5pt"><i><b>Review</b></i>:
I have reviewed the interim financial statements and interim MD&amp;A (together, the
&quot;interim filings&quot;) of New Gold Inc. (the &quot;issuer&quot;) for the interim period ended
March 31, 2009. </p>
<i>
<p ALIGN="JUSTIFY">2.</i> </p>
<p ALIGN="JUSTIFY" style="margin-left: 4%; margin-top: -25.5pt"><i><b>No
misrepresentations</b></i>: Based on my knowledge, having exercised reasonable
diligence, the interim filings do not contain any untrue statement of a material
fact or omit to state a material fact required to be stated or that is necessary
to make a statement not misleading in light of the circumstances under which it
was made, with respect to the period covered by the interim filings.</font><i><font size="2">
</p>
<p ALIGN="JUSTIFY">3.</font></i><font size="2"> </font></p>
<p ALIGN="JUSTIFY" style="margin-left: 4%; margin-top: -25.5pt"><font size="2">
<i><b>Fair presentation</b></i>: Based on my knowledge, having exercised
reasonable diligence, the interim financial statements together with the other
financial information included in the interim filings fairly present in all
material respects the financial condition, results of operations and cash flows
of the issuer, as of the date of and for the periods presented in the interim
filings.</font><i><font size="2"> </p>
<p ALIGN="JUSTIFY">4.</font></i><font size="2"> </font></p>
<p ALIGN="JUSTIFY" style="margin-left: 4%; margin-top: -25.5pt"><font size="2">
<i><b>Responsibility</b></i>: The issuer&#146;s other certifying officer(s) and I are
responsible for establishing and maintaining disclosure controls and procedures
(DC&amp;P) and internal control over financial reporting (ICFR), as those terms are
defined in National Instrument 52-109 <i>Certification of Disclosure in Issuers&#146;
Annual and Interim Filings</i>, for the issuer. </p>
<i>
<p ALIGN="JUSTIFY">5.</i> </p>
<p ALIGN="JUSTIFY" style="margin-left: 4%; margin-top: -25.5pt"><i><b>Design</b></i>:
Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the
issuer&#146;s other certifying officer(s) and I have, as at the end of the period
covered by the interim filings<i> </p>
</i>
<p ALIGN="justify" style="margin-left: 4%">(a) </p>
<p ALIGN="justify" style="margin-left: 8%; margin-top: -25.5pt">designed DC&amp;P,
or caused it to be designed under our supervision, to provide reasonable
assurance that </p>
<p ALIGN="justify" style="margin-left: 8%">(i) </p>
<p ALIGN="justify" style="margin-left: 12%; margin-top: -25.5pt">material
information relating to the issuer is made known to us by others, particularly
during the period in which the interim filings are being prepared; and </p>
<p ALIGN="justify" style="margin-left: 8%">(ii) </p>
<p ALIGN="justify" style="margin-left: 12%; margin-top: -25.5pt">information
required to be disclosed by the issuer in its annual filings, interim filings or
other reports filed or submitted by it under securities legislation is recorded,
processed, summarized and reported within the time periods specified in
securities legislation; and </p>
<p ALIGN="justify" style="margin-left: 4%">(b) </p>
<p ALIGN="justify" style="margin-left: 8%; margin-top: -25.5pt">designed ICFR,
or caused it to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with the issuer&#146;s
GAAP. </p>
</font><i><font SIZE="2">
<p ALIGN="JUSTIFY">5.1 </p>
<p ALIGN="JUSTIFY" style="margin-left: 4%; margin-top: -25.5pt"><b>Control
framework:</b></font></i><font SIZE="2"> The control framework the issuer&#146;s
other certifying officer(s) and I used to design the issuer&#146;s ICFR is <i>
Internal Control</i><b> &#150; </b><i>Integrated Framework</i> published by the
Committee of Sponsoring Organizations of the Treadway Commission. </p>
</font><HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black noShade SIZE=5><i><font SIZE="2">
<p align="justify">5.2<b> </b></p>
<p align="justify" style="margin-left: 4%; margin-top: -25.5pt"><b>ICFR</b></font></i><font SIZE="2">
<b>&#150; material weakness relating to design</b>: N/A </font></p>
<i><font SIZE="2">
<p align="justify">5.3 </p>
<p align="justify" style="margin-left: 4%; margin-top: -25.5pt"><b>Limitation on
scope of design</b></font></i><font SIZE="2">: N/A </font></p>
<font SIZE="2"><i>
<p ALIGN="JUSTIFY">6.</i> </p>
<p ALIGN="JUSTIFY" style="margin-left: 4%; margin-top: -25.5pt"><i><b>Reporting
changes in ICFR: </b></i>The issuer has disclosed in its interim MD&amp;A any change
in the issuer&#146;s ICFR that occurred during the period beginning on January 1,
2009 and ended on March 31, 2009 that has materially affected, or is reasonably
likely to materially affect, the issuer&#146;s ICFR. </p>
<p align="justify">Date: May 12, 2009 </p>
<i>
<p align="justify"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Basil Huxham&quot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<br>
</u></i>Name: Basil Huxham <br>
Title: </p>
<p align="justify" style="margin-left: 27pt; margin-top: -25.5pt">Executive Vice
President and <br>
Chief Financial Officer </p>
</font><hr color="#000000" size="5">

</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.5
<SEQUENCE>6
<FILENAME>ngd051209exh995.htm
<DESCRIPTION>EXHIBIT 99.5
<TEXT>
<html>

<head>
<title>New Gold Inc: Exhibit 99.5 - Prepared by TNT Filings Inc.</title>
</head>

<body>

<div style="border-top-style: solid; border-top-width: 1; padding-top: 1">
  <hr color="#000000" size="5"></div>
<p align="center">
<img border="0" src="ngd0511.gif" width="461" height="136"></p>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0">
  <tr>
    <td align="center" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><font SIZE="4"><b>PRESS RELEASE</b></font></td>
  </tr>
  <tr>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td align="center" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><font SIZE="4"><b>New Gold Announces First Quarter 2009
    Results</b></font></td>
  </tr>
  <tr>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
</table>
<font SIZE="2">
<p align="justify">(All figures are in US dollars unless otherwise stated) </p>
<p ALIGN="JUSTIFY">May 12, 2009 &#150; VANCOUVER, BC &#150; New Gold Inc. (&quot;<b>New Gold</b>&quot;)
(TSX and NYSE AMEX US &#150; NGD) today announced unaudited financial results and
operational results for the quarter ended March 31, 2009 and an update on the
business combination with Western Goldfields Inc. </p>
</font><b><font SIZE="2">
<p align="justify">Q1 2009 Highlights </p>
</font>
<dir dir="ltr">
  </b><font FACE="Symbol MT" LANG="JA" SIZE="2">
  <li dir="ltr">
  <p align="justify" dir="ltr"></font><font SIZE="2">Net earnings of $12.1
  million or $0.06 per share </li>
  </font><font FACE="Symbol MT" LANG="JA" SIZE="2">
  <li dir="ltr">
  <p align="justify" dir="ltr"></font><font SIZE="2">Cash flow from operations
  of $7.7 million </li>
  </font><font FACE="Symbol MT" LANG="JA" SIZE="2">
  <li dir="ltr">
  <p align="justify" dir="ltr"></font><font SIZE="2">Gold production of 54,938
  ounces </li>
  </font><font FACE="Symbol MT" LANG="JA" SIZE="2">
  <li dir="ltr">
  <p align="justify" dir="ltr"></font><font SIZE="2">Gold sales of 55,397 ounces
  at a total cash cost of $513 per ounce, net of by-product sales<sup>(1)</sup><b>
  </li>
  </b></font><font FACE="Symbol MT" LANG="JA" SIZE="2">
  <li dir="ltr">
  <p align="justify" dir="ltr"></font><font SIZE="2">Cash and cash equivalents
  of $137 million<b> </li>
  </b></font><font FACE="Symbol MT" LANG="JA" SIZE="2">
  <li dir="ltr">
  <p align="justify" dir="ltr"></font><font SIZE="2">Reduced debt<b> </b>
  position by C$50 million through the buy back of a portion of New Gold&#146;s
  Senior Secured Notes for cash consideration of C$30 million, reducing debt
  position to C$242 million </li>
  </font><font FACE="Symbol MT" LANG="JA" SIZE="2">
  <li dir="ltr">
  <p align="justify" dir="ltr"></font><font SIZE="2">Announced business
  combination with Western Goldfields Inc., which, if approved, targets the
  combined gold production forecast at 330,000 ounces </li>
</dir>
<p ALIGN="JUSTIFY">As disclosed in New Gold&#146;s news release issued on April 21,
2009, sales were higher and cash cost<sup>(1) </sup>was lower than expected.
Guidance remains unchanged with 190,000 to 210,000 ounces of gold production at
total cash cost of $465 to $485 per ounce, net of by product sales. </p>
<p ALIGN="JUSTIFY">&quot;We are pleased to report excellent operational performance
for the first quarter of 2009, performing in line with our expectations. This
reflects the quality of our team and is consistent with management's commitment
to delivering on our operational targets,&quot; said Robert Gallagher, President and
Chief Executive Officer. &quot;As we look forward to the business combination with
Western Goldfields, we remain focused on our operational objectives, as well as
executing on our exciting growth strategy and delivering on our vision of
becoming a million ounce producer by 2012.&quot; </p>
<b>
<p align="justify">First Quarter Financial Review </p>
</b>
<p ALIGN="JUSTIFY">Consolidated revenues for the first quarter 2009 were $58.8
million compared to $56.2 million in the first quarter of 2008, with higher
volume sold offsetting lower realized price. Gold sales in the first quarter
were 55,397 ounces with an average realized gold price of $898 per ounce
compared to 51,700 ounces at a gold price of $933 per ounce in the corresponding
quarter of 2008. Total cash cost per ounce<sup>(1)</sup>, net of by-product
sales, for the first quarter was $513 in comparison to $427 in the first quarter
of 2008. The increase is attributed primarily to lower copper concentrate
revenues at Peak Mines, with significantly lower copper prices offset by higher
production. This increase was partially offset by the inclusion of Cerro San
Pedro and the weakening of the currencies of Brazil and Australia against the US
dollar. Lower gold sales at Amapari were more than offset by the inclusion of
Cerro San Pedro production, which was not part of consolidated sales until the
third quarter of 2008. Copper sales volume was slightly higher in the first
quarter of 2009 with 2.75 million pounds compared to 2.55 million pounds in the
same period last year, offset by lower copper prices in the first quarter of
2009 compared to the first quarter in 2008 (Q1 2009 - $1.70/lb., Q1 2008 -
$3.75/lb.). </p>
</font><HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black noShade SIZE=5><font SIZE="2">
<p ALIGN="JUSTIFY">Net earnings for the first quarter 2009 were $12.1 million or
$0.06 per share compared to $9.8 million or $0.13 per share in the first quarter
of 2008. Net earnings include a gain of $10.1 million after income taxes on the
buy back of a portion of Senior Secured Notes. Before this item, earnings were
lower in 2009 than in the corresponding quarter of 2008 because of lower
by-product revenue and higher depreciation and exploration expenditures. </p>
<p ALIGN="JUSTIFY">Cash flow from mine operations in the first quarter 2009 was
$7.7 million compared to $18.4 million for the same period last year. Higher
gold and silver revenue from the inclusion of Cerro San Pedro were offset by
lower copper revenue due to lower price, increased working capital (primarily
copper concentrate inventory) and exploration spending. </p>
<b>
<p align="justify">Operational Review </p>
<p align="justify">Cerro San Pedro </p>
</b>
<p ALIGN="JUSTIFY">Cerro San Pedro gold sales totalled 18,314 ounces at a
realized gold price of $906 per ounce sold. Silver production increased
significantly during the quarter to 427,439 ounces from 290,520 ounces in the
prior quarter. This significant increase in silver production can be attributed
to higher silver grades mined in the first quarter of 2009 and higher recovery
primarily due to the impact of the secondary leaching. Total cash cost per ounce<sup>(1)</sup>,
net of by-product sales, was $551 in comparison to $522 in the fourth quarter of
2008. The increase in cash cost<sup>(1)</sup> is mainly attributable to lower
gold sold which was slightly off-set by increased silver production and a 10%
weakening of the Mexican peso against the US dollar. Earnings from Cerro San
Pedro were $1.2 million for the quarter. Cash flow from operations in the first
quarter 2009 was $7.2 million. </p>
<p ALIGN="JUSTIFY">First quarter gold sales and cash cost<sup>(1) </sup>are in
line with the mine plan and guidance of 90,000 to 100,000 ounces of gold and 1.1
million to 1.3 million ounces of silver at a cash cost<sup>(1)</sup>, net of
by-product sales, of between $550 and $570 per ounce. </p>
<b>
<p align="justify">Peak Mines </p>
</b>
<p ALIGN="JUSTIFY">Peak Mines gold sales in the first quarter totaled 20,856
ounces at a realized gold price of $897 per ounce sold. Copper sales in the
first quarter totaled 2.75 million pounds at a realized copper price of $1.70
per pound. Gold sales were lower and copper sales higher in the first quarter
2009 in comparison to the same quarter in the prior year, with mining shifting
to the Perseverance Zone D and Chesney ore bodies as per the mine plan. Total
cash cost per ounce<sup>(1)</sup>, net of by-product sales, was $337 compared to
$281 in the corresponding period of 2008. The increase is primarily due to lower
by-product credit from copper sales and lower ounces sold partially offset by a
more favourable Australian dollar exchange rate. The average exchange rate of
the Australian dollar declined 36.1% against the US dollar in the first quarter
of 2009 compared to the same period last year. Earnings from operations at the
Peak Mines were $9.2 million for the quarter. Cash flow to operations in the
first quarter 2009 was $1.5 million, due to the receipt of a $22.8 million
partial pre-payment in the fourth quarter of 2008, at an average price of $1.79
per pound of copper. </p>
<p ALIGN="JUSTIFY">First quarter gold sales and cash cost<sup>(1)</sup> are in
line with the mine plan and guidance of 90,000 to 100,000 ounces of gold and 13
million to 15 million pounds of copper at total cash cost<sup>(1)</sup>,net of
by-product sales, of between $370 and $390 per ounce. </p>
<b>
<p align="justify">Amapari Mine </p>
</b>
<p ALIGN="JUSTIFY">On January 2, 2009, the Amapari mine in Brazil was placed on
temporary care and maintenance due to depletion of ore suitable for treatment at
the existing facilities. Gold production from previously stacked ore was 13,726
ounces for the quarter, exceeding 2009 production guidance of 10,000 to 12,000
ounces. First quarter gold sales were 16,227 ounces at a cash cost of $696 per
ounce<sup>(1)</sup>. Leaching of the material stacked in the fourth quarter of
2008 has now been completed and leach pads are in the final stage of
neutralization. Loss from operations at Amapari was $0.94 million. Cash flow
from operations in the first quarter 2009 was $4.5 million. </p>
<p align="right">Page <b>2</b> of <b>5</b> </p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black noShade SIZE=5>
<p ALIGN="JUSTIFY">New Gold is evaluating a recently completed Preliminary
Assessment on the economics of developing the sulfide resources at Amapari,
which would require installation of a conventional crush/grind/carbon-in-leach
mill. Considering the large land package in a geologically permissive setting
and the occurrence of several interesting targets, the company is also
investigating other strategic alternatives for the project. This analysis is
expected to be completed in the second quarter of 2009. </p>
<b>
<p align="justify">New Afton and El Morro Projects Update </p>
</b>
<p ALIGN="JUSTIFY">New Afton, New Gold's primary development project, is
expected to commence production in the second half of 2012. The project will be
an underground block cave mine, which will produce an annual estimated average
of 85,000 ounces of gold and 75 million pounds of copper over a 12 year mine
life. The development schedule for New Afton, which was revised in November of
last year, involves continuation of underground development through to 2012 and
resumption of surface construction at the end of 2010. </p>
<p ALIGN="JUSTIFY">During the first quarter of 2009, the New Afton mining team
successfully transitioned from a contractor operator to owner operator work
force of 87 employees with the new crews completing 195 meters of development.
Erection of the mill building was completed in the first quarter, providing a
secure location for the storage of mine and mill equipment that has been
received. During the first quarter of 2009, project spend at New Afton was
C$22.4 million, which is mainly comprised of C$5.3 million in equipment, C$5.5
million to complete and enclose the mill building and C$3.5 million for
engineering and consulting fees<b>.</b> </p>
<p ALIGN="JUSTIFY">The El Morro copper-gold project, of which New Gold owns 30%
with Xstrata, entered the permitting stage with the submission of the
Environmental Impact Statement in November of 2008. It is anticipated that the
permit will be obtained within 12 to 18 months from that date, after which
development activities could proceed. Permitting activities continue and
detailed engineering of infrastructure has commenced. </p>
<b>
<p align="justify">Liquidity and Capital Resources </p>
</b>
<p ALIGN="JUSTIFY">New Gold held cash and cash equivalents of $136.6 million as
at March 31, 2009. The decrease in the cash position quarter over quarter is
attributed to the following key items: the acquisition from noteholders of
C$50.0 million face value of New Gold&#146;s senior secured notes for C$30.0 million
on January 9, 2009; development expenditures at New Afton of C$22.4 million; and
repayment of approximately $7.0 million in short-term borrowings at Amapari. The
Company&#146;s overall debt position has reduced to C$242 million from C$297 million
(face value). The debt is comprised of C$187 million in senior secured notes and
C$55 million in convertible debentures. </p>
<p ALIGN="JUSTIFY">Robert Gallagher, President and Chief Executive Officer said,
&quot;We will continue to take the steps necessary to maintain a solid financial
position while pursuing an aggressive growth strategy. Our exceptional
management team and board, coupled with a solid financial position and cash-flow
positive operating assets, continue to position New Gold to build momentum
toward delivering increasing shareholder value.&quot; </p>
<p align="right">Page <b>3</b> of <b>5</b> </p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black noShade SIZE=5><b>
<p align="justify">Update on Business Combination with Western Goldfields </p>
</b>
<p ALIGN="JUSTIFY">The business combination with Western Goldfields announced on
March 4, 2009 continues to move forward; materials for the Annual and Special
Meeting of Shareholders were mailed to shareholders for the New Gold and Western
Goldfields meetings which are scheduled for May 13, 2009 and May 14, 2009,
respectively. Upon approval, the business combination is expected to close on or
about June 1, 2009. </p>
<p align="justify">Please <a href="ngd051209exh991.htm">click here</a> to view the financial statements </p>
<p align="justify">Please <a href="ngd051209exh992.htm">click here</a> to download the first quarter report </p>
<b>
<p align="justify">Conference Call-in Details </p>
</b>
<p ALIGN="JUSTIFY">New Gold will hold a conference call to discuss these results
on May 13, 2009 at 10:00am E.T. Anyone may join the call by dialling toll free
1-888-789-9572 or +1-416-695-7806 to access the call from outside Canada or the
U.S. Passcode 5423385. You can listen to a recorded playback of the call after
the event until June 25, 2009 by dialling 1-800-408-3053 or +1-416-695-5800 for
calls outside Canada and the U.S. Passcode #2830064. </p>
<p ALIGN="JUSTIFY">New Gold is an intermediate gold mining company with
operating assets in Mexico and Australia and development projects in Canada and
Chile. For further information on New Gold, please visit <u>www.newgold.com</u>.
</p>
<b>
<p ALIGN="JUSTIFY">(1) </b>&quot;Total cash cost&quot; figures are calculated in
accordance with a standard developed by The Gold Institute, which was a
worldwide association of suppliers of gold and gold products and included
leading North American gold producers. The Gold Institute ceased operations in
2002, but the standard is the accepted standard of reporting cash cost of
production in North America. Adoption of the standard is voluntary and the cost
measures presented may not be comparable to other similarly titled measures of
other companies. New Gold reports total cash cost on a sales basis. Total cash
cost includes mine site operating costs such as mining, processing,
administration, royalties and production taxes, but is exclusive of
amortization, reclamation, capital and exploration costs. Total cash cost is
reduced by any by-product revenue and is then divided by ounces sold to arrive
at the total by-product cash cost of sales. The measure, along with sales, is
considered to be a key indicator of a company&#146;s ability to generate operating
earnings and cash flow from its mining operations. This data is furnished to
provide additional information and is a non-GAAP measure. It should not be
considered in isolation as a substitute for measures of performance prepared in
accordance with GAAP and is not necessarily indicative of operating costs
presented under GAAP. </p>
<b>
<p align="justify">CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS </b></p>
<p ALIGN="JUSTIFY">Certain information contained in this press release,
including any information relating to New Gold&#146;s future financial or operating
performance, may be deemed &quot;forward looking&quot;. All statements in this press
release, other than statements of historical fact, that address events or
developments that New Gold expects to occur, are &quot;forward-looking statements&quot;.
Forward-looking statements are statements that are not historical facts and are
generally, but not always, identified by the words &quot;expects&quot;, &quot;does not expect&quot;,
&quot;plans&quot;, &quot;anticipates&quot;, &quot;does not anticipate&quot;, &quot;believes&quot;, &quot;intends&quot;,
&quot;estimates&quot;, &quot;projects&quot;, &quot;potential&quot;, &quot;scheduled&quot;, &quot;forecast&quot;, &quot;budget&quot; and
similar expressions, or that events or conditions &quot;will&quot;, &quot;would&quot;, &quot;may&quot;,
&quot;could&quot;, &quot;should&quot; or &quot;might&quot; occur. All such forward looking statements are
subject to important risk factors and uncertainties, many of which are beyond
New Gold&#146;s ability to control or predict. 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 New
Gold&#146;s 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: New Gold and Western
Goldfields will be able to satisfy the conditions in the business combination
agreement, that the required approvals (shareholder, third party regulatory and
governmental) will be obtained and all other conditions will be satisfied or
waived; the results of the preliminary assessment assessing the viability of a
new process facility at Amapari; New Gold&#146;s operations are subject to
significant capital requirements; fluctuations in the international currency
markets and in the rates of exchange of the currencies of Canada, the United
States, Australia, Brazil, Mexico and Chile; price volatility in the spot and
forward markets for commodities; impact of any hedging activities, including
margin limits and margin calls; discrepancies between actual and estimated
production, between actual and estimated reserves and resources and between
actual and estimated metallurgical recoveries; changes in national and local
government legislation in Canada, the United States, Australia, Brazil, Mexico
and Chile 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 necessary licenses and permits; diminishing quantities or
grades of reserves; competition; loss of key employees; additional funding
requirements; actual results of current exploration or reclamation activities;
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. In addition, there are risks and hazards associated with
the business of mineral exploration, development and mining, including
environmental hazards, industrial accidents, unusual or unexpected formations,
pressures, cave-ins, flooding and gold bullion losses (and the risk of
inadequate insurance or inability to obtain insurance, to cover these risks) as
well as &quot;Risks Factors&quot; included in New Gold&#146;s Annual Information Form filed on
March 31, 2009 and management information circular filed on April 15, 2009, both
available at www.sedar.com. 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 press 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. </p>
<p align="right">Page <b>4</b> of <b>5</b> </p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black noShade SIZE=5>
<p align="justify">For further information please contact: </p>
<p align="justify">M&#233;lanie Hennessey <br>
Vice President Investor Relations <b><br>
New Gold Inc. <br>
</b>Direct: +1 (604) 639-0022 <br>
Toll-free: +1 (888) 315-9715 <br>
Email: info@newgold.com <br>
Website: www.newgold.com </p>
<p align="right">Page <b>5</b> of <b>5</b> </p>
<hr color="#000000" size="5"></font>

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