New Gold Provides Information on Warrants

    VANCOUVER, July 1 /CNW/ - New Gold Inc. ("New Gold") (TSX and AMEX - NGD)
wishes to clarify the previously announced information regarding the trading
symbols and the effect of the business combination on the outstanding warrants
for both Peak Gold Ltd. ("Peak Gold") and Metallica Resources Inc.
("Metallica"), which are expected to begin trading as New Gold on the TSX at
market open on July 7, 2008.

    Symbols/                           New Symbols/
    Cusip No.       Former Terms        Cusip No.        New Terms
    ---------       ------------       -----------       ---------

    NGD.WT.A    1 warrant + $15.00      NGD.WT.A   Same as former terms
    Cusip No.   equals 1 common share;  Cusip No.
    644535122   expiry June 28, 2017    644535122

    PIK.WT      Ex.: 1 warrant + $1.50  NGD.WT.B   Ex: 10 warrants + $15.00
    Cusip No.   equals 1 Peak Gold      Cusip No.  equals 1 New Gold common
    70468J140   common share;           644535130  share plus $0.001;
                expiry April 3, 2012               expiry April 3, 2012

    PIK.WT.A    Ex.: 1 warrant + $0.90  NGD.WT.C   Ex.: 10 warrants + $9.00
    Cusip No.   equals 1 Peak Gold      Cusip No.  equals 1 New Gold common
    70468J130   common share; expiry    644535148  share plus $0.001; expiry
                November 28, 2012                  November 28, 2012

    MR.WT       Ex.: 1 warrant + $3.10  NGD.WT.D   Ex.: 1.1 warrants + $3.44
    Cusip No.   equals 1 Metallica      Cusip No.  equals 1 New Gold common
    59125J120   common share; expiry    644535155  share plus $0.0001; expiry
                December 11, 2008                  December 11, 2008

    New Gold reiterates that Peak Gold and Metallica Warrantholders are not
required to surrender their current Peak Gold or Metallica warrant
certificates. In addition, New Gold wishes to provide the following
information for its non-listed warrants:

            Former Terms                            New Terms
            ------------                            ---------

    Ex.: 1 warrant + $5.50 equals         Ex.: 1.1 warrants + $6.10 equals
    1 Metallica common share;             1 New Gold common share;
    expiry December 20, 2009              expiry December 20, 2009

    New Gold is a new intermediate gold mining company with three operating
assets in Mexico, Brazil and Australia and two development projects in Canada
and Chile. For further information on New Gold, please visit our new website


    Certain information contained in the press release, including any
information as 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 "express", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "potential" "budget" and
similar expressions, or that events or conditions "will", "would", "may",
"could", or "should" 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: anticipated synergies
from the business combination may not be realized, there may be difficulties
in integrating the operations and personnel of New Gold, Peak Gold and
Metallica, the combined company will be subject to significant capital
requirements associated with its expanded operations and portfolio of
development projects, fluctuations in the international currency markets and
in the rates of exchange of the currencies of Canada, the United States of
America, Australia, 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, Mexico, Chile and
Australia or any other country in which the combined company currently or may
in the future carry on business; taxation, controls, regulations and political
or economic developments in the countries in which the combined company 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). 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 intent 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: 1-888-315-9715,
Email:, Website:

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