New Gold Announces Closing of Bought Deal Financing and Over-Allotment Option Exercise for Total Gross Proceeds of C$115 million

    VANCOUVER, Sept. 11 /CNW/ - New Gold Inc. ("New Gold") (TSX and NYSE
AMEX:   NGD) is pleased to announce the successful closing of its previously
announced bought deal public offering of 26,700,000 common shares and the
underwriters' exercise in full of an over-allotment option to purchase an
additional 4,005,000 common shares granted by New Gold in connection with such
offering at a price of C$3.75 per share for total gross proceeds to New Gold
of approximately C$115 million.
    Randall Oliphant, Executive Chairman of New Gold said "We are delighted
by the markets' interest in the company with the successful closing of the
financing and the over-allotment. This transaction brings new shareholders to
New Gold, further strengthens our financial position and provides greater
flexibility to realize value from current assets and through additional growth
    The syndicate of underwriters was led by BMO Capital Markets and GMP
Securities L.P., and included Canaccord Capital Corporation, RBC Dominion
Securities Inc., Scotia Capital Inc., TD Securities Inc., National Bank
Financial Inc., Paradigm Capital Inc. and Wellington West Capital Markets Inc.

    About New Gold

    New Gold is an intermediate gold mining company, headquartered in
Vancouver, British Columbia, Canada with three operating assets; the Mesquite
Mine in the United States, Cerro San Pedro Mine in Mexico and Peak Mines in
Australia. For the period of New Gold ownership of the Mesquite mine, the
Company is expected to produce between 270,000 and 300,000 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 further information on New Gold,
please visit


    Certain information contained in this press release, including any
information relating 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 "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'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: New Gold's anticipated
synergies from the business combination with Western Goldfields Inc. may not
be realized; there may be difficulties in integrating the operations and
personnel of New Gold; significant 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 currently or may in the future carry on business; taxation; controls,
regulations and political or economic developments in the countries in which
New Gold 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 Factors" included in New Gold's Annual Information Form
filed on March 31, 2009 and Management Information Circular filed on April 15,
2009, both 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 expressly disclaims 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: Mélanie Hennessey, Vice President Investor
Relations, New Gold Inc., Direct: (604) 639-0022, Toll-free: (888) 315-9715,
Email:; Website:

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