New Gold Raises $75 Million

February 28, 2006

New Gold Inc. (TSX:NGD) (AMEX:NGD), a mineral exploration company, completed a new issue of 8,334,000 Units, each comprised of one common share of and one half of one common share purchase warrant at a price of $9.00 per Unit for gross proceeds of $75,000,006. The offering was made through a syndicate of underwriters including GMP Securities L.P., BMO Nesbitt Burns Inc., Orion Securities Inc., TD Securities Inc. and Wellington West Capital Markets Inc.

Wildeboer Dellelce LLP represented the Underwriters with a team including Derek Sigel, Andrew Elbaz, Geoffrey Cher (corporate and securities) and Kevin Fritz (tax).

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