New Gold Provides an Update Regarding Western Goldfields Share Exchange

    VANCOUVER, June 3 /CNW/ - New Gold Inc. (TSX and NYSE Amex:   NGD) ("New
Gold") provides an update on the Western Goldfields Inc. (TSX: WGI and NYSE
Amex:   WGW) ("Western Goldfields") common share exchange for New Gold common
shares, following the announcement of the completion of the business
combination (the "Transaction") on June 1, 2009. The Transaction was completed
by way of a plan of arrangement (the "Plan of Arrangement"), which was
approved by the New Gold and Western Goldfields shareholders on May 13 and 14,
2009, respectively and which received final court approval on May 27, 2009.
    Pursuant to the Plan of Arrangement, New Gold acquired all of the issued
and outstanding common shares of Western Goldfields in consideration for the
issuance by New Gold of one common share of New Gold and Cdn$0.0001 for each
Western Goldfields common share outstanding.
    Western Goldfields intends to terminate the registration of its common
shares, no par value (the "Shares") under Section 12(g) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"). Pursuant to Rule 12h-6
under the Exchange Act, the Securities and Exchange Commission (the "SEC")
permits a foreign private issuer to terminate the registration of a class of
securities under Section 12(g) of the Exchange Act if it meets certain
requirements. Western Goldfields will file a Form 15F with the SEC to
terminate the registration of the Shares. Upon filing Form 15F the Company's
reporting obligations will be immediately suspended and the de-registration
will be effective 90 days after the filing.
    The common shares of Western Goldfields will also be de-listed from the
Toronto Stock Exchange effective at the close of markets on Thursday June 4,
2009 and New Gold's transfer agent, Computershare Trust Company of Canada
("Computershare"), will begin to issue New Gold shares in exchange for all
Western Goldfields shares in connection with the Plan of Arrangement
immediately subsequent to this date.
    Western Goldfields shareholders should send in their completed and
executed letters of transmittal and Western Goldfields share certificates to
Computershare as soon as possible in order to receive their New Gold shares
and the consideration to which they are entitled pursuant to the arrangement.
A copy of the letter of transmittal is attached to this release and is also
available on SEDAR at under the Western Goldfields profile,
posted April 16, 2009 under the title "Other".

    Letter of Transmittal:

    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 the Peak Gold
Mines in Australia. The newly 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 further information on New Gold, please visit


    Certain information contained in this press release, including any
information relating to the 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. 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 "Risk Factors" and "Risks and
Uncertainties" included in the Annual Information Form/10-K and MD&A and other
filings 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: Mélanie Hennessey, Vice President Investor
Relations, Direct: (604) 639-0022, Toll-free: (888) 315-9715, Email:

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