Metallica Resources, New Gold and Peak Gold Announce Signing of Definitive Agreement for US$1.6 Billion Business Combination

    VANCOUVER, May 12 /CNW/ - Metallica Resources Inc. ("Metallica
Resources") (TSX - MR and AMEX - MRB), New Gold Inc. ("New Gold") (TSX and
AMEX - NGD) and Peak Gold Ltd. ("Peak Gold") (TSXV - PIK) are pleased to
announce that they have signed a definitive agreement in connection with the
previously announced business combination (the "Transaction").
    Each of Metallica Resources, New Gold and Peak Gold have scheduled
shareholder meetings to be held on June 17, 2008 at which they will seek their
respective shareholder approvals required in connection with the Transaction.
It is anticipated that materials for such meetings will be mailed to
shareholders on or about May 26, 2008. The Transaction is expected to close on
or about June 30, 2008.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

For further information: Rhonda Bennetto, Director Investor Relations
and Corporate Communications, Metallica Resources Inc., Direct: (303)
640-3292, Toll-free: 1 (888) 933-0313 x5, Email: rmbennetto@metal-res.com,
Website: www.metal-res.com; Laura Sandilands, Manager of Investor Relations,
New Gold Inc., Direct: (416) 977-1067, Toll-free: 1 (877) 977-1067, Email:
lsandilands@newgoldinc.com, Website: www.newgoldinc.com; Melanie Hennessey,
Vice President Investor Relations, Peak Gold Ltd., Direct: (604) 696-3024,
Toll-free: 1 (888) 220-2760, Email: info@peakgold.com, Website:
www.peakgold.com