New Gold and Western Goldfields Provide Status Update on Business Combination

    VANCOUVER and TORONTO, May 28 /CNW/ - New Gold Inc. (TSX and NYSE Amex:  
NGD) ("New Gold") and Western Goldfields Inc. (TSX: WGI and NYSE Amex:   WGW)
("Western Goldfields") are pleased to announce the receipt of the final order
from the Ontario Superior Court of Justice (Commercial List) approving the
business combination between Western Goldfields and New Gold (the
    The completion of the Transaction is on schedule to close on June 1,
2009. The Transaction is structured as a Plan of Arrangement under the
Business Corporations Act (Ontario).
    Upon completion of the transaction, the combined company is expected to
produce between 330,000 and 360,000 ounces of gold in 2009, growing to over
400,000 ounces in 2012 and have significant reserves and resources with a
strong portfolio of mining, development and exploration assets in mining
friendly jurisdictions. For more information, please see the respective
company websites at and


    Certain information contained in this press release, including any
information relating to the proposed transaction and New Gold or Western
Goldfields 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 or
Western Goldfields 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 "expects", "does not
expect", "plans", "anticipates", "does not anticipate", "believes", "intends",
"estimates", "projects", "potential", "scheduled", "forecast", "budget" and
similar expressions, or that events or conditions "will", "would", "may",
"could", "should" or "might" occur. All such forward-looking statements are
subject to important risk factors and uncertainties, many of which are beyond
New Gold or Western Goldfields' 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 or Western Goldfields' actual results, level of
activity, performance or achievements to be materially different from those
expressed or implied by such forward-looking statements. Assumptions upon
which such forward-looking statements are based on include that New Gold and
Western Goldfields will be able to satisfy the conditions in the Business
Combination Agreement, that all third party regulatory and governmental
approvals to the transaction will be obtained and all other conditions to
completion of the transaction will be satisfied or waived. Many of these
assumptions are based on factors and events that are not within the control of
New Gold and Western Goldfields and there is no assurance they will prove to
be correct. Such factors include, without limitation: 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 and Western Goldfields currently or may in the
future carry on business; taxation; controls, regulations and political or
economic developments in the countries in which New Gold and Western
Goldfields 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 "Risks and Uncertainties" included in the Annual Information
Form/10-K and MD&A for each of New Gold and Western Goldfields available at 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 and Western Goldfields expressly disclaim 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.

For further information:

For further information: For New Gold, Mélanie Hennessey, Vice President
Investor Relations, Direct: (604) 639-0022, Toll-free: (888) 315-9715, Email:; For Western Goldfields, Hannes Portmann, Director, Corporate
Development and Investor Relations, Direct: (416) 324-6014, Email:

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