About This Report

New Gold’s 2014 Corporate Responsibility Report provides a review of our social responsibility performance and a comprehensive summary of our achievements and challenges in health and safety, environmental management and community engagement and development during the 2014 calendar year. A summary of this report is available in English and Spanish. More detailed information is provided on our website.

This report covers all the major assets under our direct management, and excludes the El Morro project, which is managed by our partner, Goldcorp Inc. Tables and figures represent a compilation of information from all sites (other than El Morro) unless otherwise noted.

Financial results are audited annually and reported on a quarterly basis, in accordance with legal requirements for publicly traded companies; please refer to New Gold’s Management’s Discussion and Analysis and Annual Financial Review, available on our website. This report includes financial performance information as it reflects direct and indirect impacts of our activities in the communities where we operate. All currency is in United States dollars (US$) unless otherwise stated.

Every New Gold operation follows company-wide principles and commitments regarding environmental and social responsibility as well as ethical behaviour. We have developed three internal management standards: Safety, Environment, and Community Engagement and Development, based on best practices and international standards. In 2014, full implementation of our Environmental Standards and Community Engagement and Development Standards was achieved, across all operations. Safety Standards were fully implemented in 2013.

Each standard specifies regular review including internal and external audits. Measuring performance is the only way to ensure the standards are met and performance is continuously improved. Individual mines may also maintain site-specific policies and procedures to ensure compliance with local regulations. For example, the New Afton, Cerro San Pedro and Peak mines produce their own annual corporate responsibility reports for their local communities of interest.

Meeting a Global Standard for Reporting

Reflecting New Gold’s commitment to leadership in sustainability, the 2014 report has been developed according to the recently enhanced Global Reporting Initiative (GRI) G4 guidelines. The GRI is an independent institution that sets voluntary guidelines for sustainability reporting. We believe that adhering to these guidelines demonstrates our commitment to transparency, clarity and comparability in reporting. The G4 Implementation Manual and the Mining and Metals Sector Supplement guided the preparation of the present report, in accordance with the “Core” criteria option of the fourth generation (G4) Framework. The GRI Content Index provides the list of general standard disclosures and performance indicators that we are reporting on this year, and where the data or information can be found in this report.

New Gold relies on an internal assurance review process to verify that the data reported by the mine sites for GRI indicators is accurate, consistent and in accordance with the standards set out in the G4 Guidelines. We have applied the GRI “Materiality” check, which verifies that, at the time of publication, General Standard Disclosures G4-17 to G4-27 were correctly located in both the Content Index and in the text of the final report.

Engaging with Our Communities of Interest (GRI G4-24, G4-25, G4-26, G4-27)

This report is written for a broad range of stakeholders or “communities of interest”, including New Gold employees and their families, contractors, Aboriginal peoples, host community members, suppliers, environmental organizations, governments, the financial and investment communities, shareholders, warrant holders and bondholders.

To know and understand our communities of interest, we implement a range of methods, including stakeholder mapping and analysis, and implement engagement activities, including meetings, workshops, site visits and open houses. At the corporate level, we also regularly engage with communities of interest through international organizations and initiatives, joint development partners, and industry associations, as well as through our .

We are vigilant in tracking how our communities of interest are affected by our activities, and understanding and addressing their concerns and interests. We maintain open dialogue with individuals and groups who express an interest in our work.

We invite comments and suggestions about our approach to social responsibility as well as the content of this report at sustainability@newgold.com.

Identifying Material Topics (GRI G4-18)

The GRI identifies a wide range of topics that might be relevant to ensuring and measuring sustainability. According to the GRI, each organization is responsible for identifying the set of topics it considers material for its own operations and the level of compliance it seeks to achieve in the reporting period. Guidance is provided by the GRI’s G4 Sustainability Reporting Guidelines – Implementation Guide as well as AccountAbility’s Five-Part Materiality Test.

In 2014, the selection of G4 topics for New Gold was based on input from individual operations, projects and head offices, feedback mechanisms, a media review and engagement with industry associations and other relevant organizations. The initial materiality assessment conducted at the corporate level was complemented and validated by the materiality assessment conducted at each site involving the participation of a variety of functional areas. The criteria for determining if a topic is considered material is whether that issue could significantly affect the long-term success of our business and/or is a priority for our communities of interest.

Material topics process

This report focuses on the topics that have been identified as material across the Company and therefore provides in-depth coverage of these topics. Other topics are included to meet the needs of environmental, social and governance (ESG) analysts and the investment community. These may not be covered to the same extent as material topics. Targets for the 2015 annual cycle are only included for material topics; nonetheless, goals for non-material topics may still be set internally; these will only be indicated in the text and not in the scorecard. Topics identified as material at the site level are addressed in the individual sites’ corporate responsibility reports, if applicable, or through other local communications and engagement activities.

The final 2014 list was validated by senior management and includes, in alphabetical order (GRI G4-19):

New gold material Topics

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Biodiversity and wildlife management
G4 aspects
Biodiversity
Community economic development
G4 aspects
Economic performance
Indirect economic impacts
Cyanide management
G4 aspects
Materials
Materials stewardship
Effluents and waste
Health and safety
G4 aspects
Occupational health and safety
Training and education
Local employment and contracting
G4 aspects
Indirect economic impacts
Procurement practices
Public policy
G4 aspects
Public policy
Regulatory compliance
G4 aspects
Compliance – Society
Compliance – Environment
Tailings management
G4 aspects
Effluents and waste
Compliance
Viability and longevity of operations
G4 aspects
Economic performance
Water management
G4 aspects
Water

A table is available in the Appendix, detailing the material topics, indicators and boundaries using the GRI G4 Framework, including a link to the appropriate page on the website. The list of material topics will be regularly updated through engagement with our communities of interest; this will assist us in designing and implementing initiatives aimed at continuous improvement in these areas.

Looking Forward

In this, our seventh annual Sustainability Report, New Gold is again demonstrating our commitment to open reporting of our performance. At New Gold, we view transparency as essential for maintaining trust with our communities of interest, and to upholding our corporate reputation. Our annual performance targets provide us with goals to strive for and concrete measurement of our performance improvements. The targets are established annually based on feedback received from our communities of interest.

As in past years, we are dedicated to conforming to recognized international standards for responsible corporate behaviour. We are guided by the GRI G4 reporting guidelines. In the future, we plan to continually improve the scope, depth and transparency of our reporting to meet the expectations of all of our communities of interest.

We invite you to send any questions and comments on this report to sustainability@newgold.com.