New Gold Provides Information on Warrants

VANCOUVER, July 1 /PRNewswire-FirstCall/ — New Gold Inc. (“New Gold”) (TSX and AMEX – NGD) wishes to clarify the previously announced information regarding the trading symbols and the effect of the business combination on the outstanding warrants for both Peak Gold Ltd. (“Peak Gold”) and Metallica Resources Inc. (“Metallica”), which are expected to begin trading as New Gold on the TSX at market open on July 7, 2008.

    Former   Symbols/                           New Symbols/   Cusip #       Former Terms        Cusip #        New Terms   ———       ————       ———–       ———    NGD.WT.A    1 warrant + $15.00      NGD.WT.A   Same as former terms   Cusip #   equals 1 common share;  Cusip #   644535122   expiry June 28, 2017    644535122    PIK.WT      Ex.: 1 warrant + $1.50  NGD.WT.B   Ex: 10 warrants + $15.00   Cusip #   equals 1 Peak Gold      Cusip #  equals 1 New Gold common   70468J140   common share;           644535130  share plus $0.001;               expiry April 3, 2012               expiry April 3, 2012    PIK.WT.A    Ex.: 1 warrant + $0.90  NGD.WT.C   Ex.: 10 warrants + $9.00   Cusip #   equals 1 Peak Gold      Cusip #  equals 1 New Gold common   70468J130   common share; expiry    644535148  share plus $0.001; expiry               November 28, 2012                  November 28, 2012    MR.WT       Ex.: 1 warrant + $3.10  NGD.WT.D   Ex.: 1.1 warrants + $3.44   Cusip #   equals 1 Metallica      Cusip #  equals 1 New Gold common   59125J120   common share; expiry    644535155  share plus $0.0001; expiry               December 11, 2008                  December 11, 2008    

New Gold reiterates that Peak Gold and Metallica Warrantholders are not required to surrender their current Peak Gold or Metallica warrant certificates. In addition, New Gold wishes to provide the following information for its non-listed warrants:

           Former Terms                            New Terms           ————                            ———    Ex.: 1 warrant + $5.50 equals         Ex.: 1.1 warrants + $6.10 equals   1 Metallica common share;             1 New Gold common share;   expiry December 20, 2009              expiry December 20, 2009    

New Gold is a new intermediate gold mining company with three operating assets in Mexico, Brazil and Australia and two development projects in Canada and Chile. For further information on New Gold, please visit our new website at http://www.newgold.com/.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain information contained in the press release, including any information as to New Gold’s future financial or operating performance, may be deemed “forward-looking”. All statements in this press release, other than statements of historical fact, that address events or developments that New Gold expects to occur, are “forward-looking statements”. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “express”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential”"budget” and similar expressions, or that events or conditions “will”, “would”, “may”, “could”, or “should” occur. All such forward-looking statements are subject to important risk factors and uncertainties, many of which are beyond New Gold’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’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: anticipated synergies from the business combination may not be realized, there may be difficulties in integrating the operations and personnel of New Gold, Peak Gold and Metallica, the combined company will be subject to significant capital requirements associated with its expanded operations and portfolio of development projects, fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States of America, 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 Canada, the United States, Mexico, Chile and Australia or any other country in which the combined company currently or may in the future carry on business; taxation, controls, regulations and political or economic developments in the countries in which the combined 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; 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). 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 intent 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.

CONTACT: Melanie Hennessey, Vice President Investor Relations, New Gold Inc., Direct: (604) 639-0022, Toll-free: 1-888-315-9715, Email: info@newgold.com, Website: http://www.newgold.com/

NEW GOLD INC.

CONTACT: Melanie Hennessey, Vice President Investor Relations, New GoldInc., Direct: (604) 639-0022, Toll-free: 1-888-315-9715, Email:info@newgold.com, Website: http://www.newgold.com/