----

----

----

| CORPORATE STRUCTURE                                          | 5                                                         |
|--------------------------------------------------------------|-----------------------------------------------------------|
| GENERAL DEVELOPMENT OF THE BUSINESS                          | 6                                                         |
|                                                         | Developments - Projects and Mines                         | 6 |
|                                                         | Developments - Financial                                  | 7 |
|                                                         | Developments - Acquisitions and Dispositions              | 8 |
|                                                         | Developments - Corporate Governance                       | 9 |
| DESCRIPTION OF THE BUSINESS                                  | 9                                                         |
|                                                         | Specialized Skills and Knowledge                          | 9 |
|                                                         | Principal Products                                        | 9 |
|                                                         | Competitive Conditions                                    | 10 |
|                                                         | Operations                                                | 10 |
|                                                         | Technical Information                                     | 11 |
|                                                         | Summary of Mineral Reserve and Mineral Resource Estimates | 11 |
| MINERAL PROPERTIES                                           | 17                                                        |
|                                                         | NEW AFTON MINE, CANADA                                    | 17 |
|                                                         | MESQUITE MINE, UNITED STATES                              | 22 |
|                                                         | PEAK GOLD MINES, AUSTRALIA                                | 25 |
|                                                         | CERRO SAN PEDRO MINE, MEXICO                              | 29 |
|                                                         | RAINY RIVER PROJECT, CANADA                               | 33 |
|                                                         | BLACKWATER PROJECT, CANADA                                | 38 |
|                                                         | EL MORRO PROJECT, CHILE                                   | 42 |
| RISK FACTORS                                                 | 47                                                        |
| NOTES                                                        | 61                                                        |
| DIVIDENDS                                                    | 62                                                        |
| DESCRIPTION OF CAPITAL STRUCTURE                             | 62                                                        |
| MARKET FOR SECURITIES                                        | 63                                                        |
| DIRECTORS AND OFFICERS                                       | 65                                                        |
| LEGAL PROCEEDINGS AND REGULATORY ACTIONS                     | 71                                                        |
| INTEREST OF MANAGEMENT & OTHERS IN MATERIAL TRANSACTIONS | 72                                                        |
| TRANSFER AGENT AND REGISTRAR                                 | 72                                                        |
| MATERIAL CONTRACTS                                           | 72                                                        |
| INTERESTS OF EXPERTS                                         | 73                                                        |

----

| SCHEDULE A AUDIT COMMITTEE CHARTER                             | A-1 |
|----------------------------------------------------------------|-----|
| SCHEDULE B DEFINITIONS                                         | B-1 |
| SCHEDULE C ABBREVIATIONS AND MEASUREMENT CONVERSION            | C-1 |
| SCHEDULE D CURRENCY PRESENTATION AND EXCHANGE RATE INFORMATION | D-1 |

----

----

----

----

----

----

----

----

|   | · | 100% interest in the New Afton copper-gold mine British Columbia, Canada (“New Afton Mine”) |
|--------|--------|---------------------------------------------------------------------------------------------------------|

|   | · | 100% interest in the Mesquite gold mine in California, United States (“Mesquite Mine”) |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | · | 100% interest in the Peak gold-copper mines in New South Wales, Australia (“Peak Gold Mines”) |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | 100% interest in the Cerro San Pedro gold-silver mine in San Luis Potosi, Mexico (“Cerro San Pedro Mine”) |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | · | 100% interest in the Rainy River gold project in Ontario, Canada (“Rainy River Project”) |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | · | 100% interest in the Blackwater gold project in British Columbia, Canada (“Blackwater Project”) |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | 30% interest in the El Morro copper-gold project in the Atacama Region, Chile ( “El Morro Project”) |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

|  Location             | Full-Time | Contractors |
|----------------------------|-----------|-------------|
| Vancouver Corporate Office | 26        | 1           |
| Toronto Corporate Office   | 22        | 3           |
| Corporate Exploration Team | 11        | -           |
| New Afton Mine             | 439       | 19          |
| Mesquite Mine              | 277       | 12          |
| Peak Gold Mines            | 342       | 65          |
| Cerro San Pedro Mine*      | 449       | 40          |
| Rainy River Project        | 47        | 3           |
| Blackwater Project         | 49        | 1           |
| El Morro Project           | -         | -           |
|                       | 1,662     | 144         |

----

----

| Mineral Reserve and Resource contained metal estimates as at December 31, 2013 |
|--------------------------------------------------------------------------------|
|                                                                           | Proven & Probable Reserves |   | Measured & Indicated Resources |   | Inferred Resources |
|                                                                           | Gold(Koz) | Silver(Moz) | Copper(Mlbs) |   | Gold(Koz) | Silver(Moz) | Copper(Mlbs) |   | Gold(Koz) | Silver(Moz) | Copper(Mlbs) |
| New Afton                                                                      | 879 | 3.5 | 904 |   | 2,297 | 7.8 | 1,988 |   | 301 | 0.9 | 212 |
| Mesquite                                                                       | 2,237 | -- | -- |   | 4,904 | -- | -- |   | 238 | -- | -- |
| Peak Mines                                                                     | 412 | 0.8 | 98 |   | 810 | 1.4 | 158 |   | 150 | 0.3 | 51 |
| Cerro San Pedro                                                                | 392 | 15.6 | -- |   | 397 | 15.9 | -- |   | 13 | 0.4 | -- |
| Rainy River                                                                    | 3,773 | 9.4 | -- |   | 6,236 | 14.6 | -- |   | 773 | 1.7 | -- |
| Blackwater                                                                     | 8,170 | 60.8 | -- |   | 9,500 | 70.1 | -- |   | 380 | 2.3 | -- |
| Capoose                                                                        | -- | -- | -- |   | 320 | 14.6 | -- |   | 370 | 24.7 | -- |
| El Morro                                                                       | 2,675 | -- | 1,951 |   | 3,041 | -- | 2,207 |   | 1,936 | -- | 1,557 |
| New Gold Total                                                                 | 18,538 | 90.1 | 2,953 |   | 27,505 | 124.5 | 4,353 |   | 4,161 | 30.4 | 1,820 |

| Mineral Reserve estimates as at December 31, 2013 |
|---------------------------------------------------|
|                                              |   |   | Metal grade |   | Contained metal |
|                                              |   | Tonnes000’s | Goldg/t | Silverg/t | Copper% |   | GoldKoz | SilverKoz | CopperMlbs |
| New Afton                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proven                                            |   | -- |   | -- |   | -- |   | -- |   | -- |   | -- |   | -- |
| Probable                                          |   | 48,821 |   | 0.56 |   | 2.2 |   | 0.84 |   | 879 |   | 3,500 |   | 904 |
| Total New Afton P&P                           |   | 48,821 |   | 0.56 |   | 2.2 |   | 0.84 |   | 879 |   | 3,500 |   | 904 |
| Mesquite                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proven                                            |   | 3,809 |   | 0.70 |   | -- |   | -- |   | 86 |   | -- |   | -- |
| Probable                                          |   | 112,094 |   | 0.60 |   | -- |   | -- |   | 2,152 |   | -- |   | -- |
| Total Mesquite P&P                            |   | 115,903 |   | 0.60 |   | -- |   | -- |   | 2,237 |   | -- |   | -- |
| Peak Mines                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proven                                            |   | 1,820 |   | 4.35 |   | 6.7 |   | 1.16 |   | 255 |   | 390 |   | 47 |
| Probable                                          |   | 1,820 |   | 2.69 |   | 7.4 |   | 1.27 |   | 157 |   | 430 |   | 51 |
| Total Peak Mines P&P                          |   | 3,640 |   | 3.52 |   | 7.1 |   | 1.22 |   | 412 |   | 820 |   | 98 |
| Cerro San Pedro                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proven                                            |   | 12,982 |   | 0.47 |   | 17.5 |   | -- |   | 197 |   | 7,311 |   | -- |
| Probable                                          |   | 13,714 |   | 0.44 |   | 18.7 |   | -- |   | 195 |   | 8,239 |   | -- |
| Total Cerro San Pedro P&P                     |   | 26,696 |   | 0.46 |   | 18.1 |   | -- |   | 392 |   | 15,550 |   | -- |

----

| Mineral Reserve estimates as at December 31, 2013 |
|---------------------------------------------------|
|                                              |   |   | Metal grade |   | Contained metal |
|                                              |   | Tonnes000’s | Goldg/t | Silverg/t | Copper% |   | GoldKoz | SilverKoz | CopperMlbs |
| Rainy River                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Direct processing material                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Open Pit                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proven                                            |   | 15,839 |   | 1.47 |   | 2.0 |   | -- |   | 746 |   | 1,038 |   | -- |
| Probable                                          |   | 46,866 |   | 1.26 |   | 3.1 |   | -- |   | 1,896 |   | 4,594 |   | -- |
| Open Pit P&P (direct processing)              |   | 62,705 |   | 1.31 |   | 2.8 |   | -- |   | 2,642 |   | 5,632 |   | -- |
| Underground                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proven                                            |   | -- |   | -- |   | -- |   | -- |   | -- |   | -- |   | -- |
| Probable                                          |   | 4,187 |   | 4.96 |   | 10.3 |   | -- |   | 668 |   | 1,388 |   | -- |
| Underground P&P(direct processing)            |   | 4,187 |   | 4.96 |   | 10.3 |   |   |   | 668 |   | 1,388 |   | -- |
| Stockpile material                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Open Pit                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proven                                            |   | 6,843 |   | 0.38 |   | 1.5 |   | -- |   | 84 |   | 332 |   | -- |
| Probable                                          |   | 30,541 |   | 0.39 |   | 2.1 |   | -- |   | 378 |   | 2,058 |   | -- |
| Open Pit P&P (stockpile)                      |   | 37,384 |   | 0.38 |   | 2.0 |   | -- |   | 462 |   | 2,390 |   | -- |
| Total P&P                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proven                                            |   | 22,681 |   | 1.14 |   | 1.9 |   | -- |   | 830 |   | 1,370 |   | -- |
| Probable                                          |   | 81,594 |   | 1.12 |   | 3.1 |   | -- |   | 2,943 |   | 8,040 |   | -- |
| Total Rainy River P&P                         |   | 104,275 |   | 1.13 |   | 2.8 |   | -- |   | 3,773 |   | 9,410 |   | -- |
| Blackwater                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Direct processing material                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proven                                            |   | 124,500 |   | 0.95 |   | 5.5 |   | -- |   | 3,790 |   | 22,100 |   | -- |
| Probable                                          |   | 169.700 |   | 0.68 |   | 4.1 |   | -- |   | 3,730 |   | 22,300 |   | -- |
| P&P (direct processing)                       |   | 294,300 |   | 0.79 |   | 4.7 |   | -- |   | 7,510 |   | 44,400 |   | -- |
| Stockpile material                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proven                                            |   | 20,100 |   | 0.50 |   | 3.6 |   | -- |   | 330 |   | 2,300 |   | -- |
| Probable                                          |   | 30,100 |   | 0.34 |   | 14.6 |   | -- |   | 330 |   | 14,100 |   | -- |
| P&P (stockpile)                               |   | 50,200 |   | 0.40 |   | 10.2 |   | -- |   | 650 |   | 16,400 |   | -- |
| Total Blackwater P&P                          |   | 344,400 |   | 0.74 |   | 5.5 |   | -- |   | 8,170 |   | 60,800 |   | -- |
| El Morro                                          | 100% Basis |   |   |   |   |   |   |   |   | 30% Basis |   |   |
| Proven                                            |   | 321,814 |   | 0.56 |   | -- |   | 0.55 |   | 1,746 |   | -- |   | 1,163 |
| Probable                                          |   | 277,240 |   | 0.35 |   | -- |   | 0.43 |   | 929 |   | -- |   | 788 |
| Total El Morro P&P                            |   | 599,054 |   | 0.46 |   | -- |   | 0.49 |   | 2,675 |   | -- |   | 1,951 |
| Total P&P                                     |   |   |   |   |   |   |   |   |   | 18,538 |   | 90,080 |   | 2,953 |

----

| Measured and Indicated Mineral Resource estimates (inclusive of Reserves) as at December 31, 2013 |
|---------------------------------------------------------------------------------------------------|
|                                                                                              |   |   | Metal grade |   | Contained metal |
|                                                                                              |   | Tonnes000’s | Goldg/t | Silverg/t | Copper% | GoldKoz | SilverKoz | CopperMlbs |
| New Afton                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| A&B Zones                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Measured                                                                                          |   | 41,059 |   | 0.79 |   | 2.7 |   | 1.09 |   | 1,041 |   | 3,624 |   | 984 |
| Indicated                                                                                         |   | 26,966 |   | 0.44 |   | 2.1 |   | 0.65 |   | 384 |   | 1,777 |   | 384 |
| A&B Zone M&I                                                                              |   | 68,025 |   | 0.65 |   | 2.5 |   | 0.91 |   | 1,425 |   | 5,401 |   | 1,368 |
| C-Zone                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Measured                                                                                          |   | 618 |   | 0.75 |   | 1.5 |   | 0.91 |   | 15 |   | 30 |   | 12 |
| Indicated                                                                                         |   | 25,223 |   | 0.84 |   | 2.0 |   | 0.91 |   | 678 |   | 1,589 |   | 504 |
| C-Zone M&I                                                                                    |   | 25,842 |   | 0.83 |   | 2.0 |   | 0.91 |   | 693 |   | 1,620 |   | 516 |
| HW Lens                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Measured                                                                                          |   | -- |   | -- |   | -- |   | -- |   | -- |   | -- |   | -- |
| Indicated                                                                                         |   | 11,035 |   | 0.50 |   | 2.2 |   | 0.43 |   | 179 |   | 763 |   | 104 |
| HW Lens M&I                                                                                   |   | 11,035 |   | 0.50 |   | 2.2 |   | 0.43 |   | 179 |   | 763 |   | 104 |
| Total New Afton M&I                                                                           |   | 104,901 |   | 0.68 |   | 2.3 |   | 0.86 |   | 2,297 |   | 7,786 |   | 1,988 |
| Mesquite                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Measured                                                                                          |   | 9,070 |   | 0.66 |   | -- |   | -- |   | 191 |   | -- |   | -- |
| Indicated                                                                                         |   | 304,081 |   | 0.48 |   | -- |   | -- |   | 4,713 |   | -- |   | -- |
| Total Mesquite M&I                                                                            |   | 313,151 |   | 0.49 |   | -- |   | -- |   | 4,904 |   | -- |   | -- |
| Peak Mines                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Measured                                                                                          |   | 3,000 |   | 4.69 |   | 6.7 |   | 1.06 |   | 450 |   | 650 |   | 70 |
| Indicated                                                                                         |   | 3,400 |   | 3.29 |   | 6.7 |   | 1.18 |   | 360 |   | 730 |   | 88 |
| Total Peak Mines M&I                                                                          |   | 6,400 |   | 3.95 |   | 6.7 |   | 1.12 |   | 810 |   | 1,380 |   | 158 |
| Cerro San Pedro                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Measured                                                                                          |   | 13,387 |   | 0.46 |   | 17.3 |   | -- |   | 199 |   | 7,459 |   | -- |
| Indicated                                                                                         |   | 14,311 |   | 0.43 |   | 18.4 |   | -- |   | 198 |   | 8,489 |   | -- |
| Total Cerro San Pedro M&I                                                                     |   | 27,698 |   | 0.45 |   | 17.9 |   | -- |   | 397 |   | 15,948 |   | -- |
| Rainy River                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Direct processing material                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Open Pit                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Measured                                                                                          |   | 20,282 |   | 1.45 |   | 1.9 |   | -- |   | 947 |   | 1,261 |   | -- |
| Indicated                                                                                         |   | 80,411 |   | 1.35 |   | 2.6 |   | -- |   | 3,486 |   | 6,584 |   | -- |
| Open Pit M&I(direct processing)                                                               |   | 100,693 |   | 1.37 |   | 2.4 |   | -- |   | 4,433 |   | 7,846 |   | -- |
| Underground                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Measured                                                                                          |   | 89 |   | 4.95 |   | 2.8 |   | -- |   | 14 |   | 8 |   | -- |
| Indicated                                                                                         |   | 5,469 |   | 4.53 |   | 11.3 |   | -- |   | 796 |   | 1,994 |   | -- |
| Underground M&I(direct processing)                                                            |   | 5,558 |   | 4.53 |   | 11.2 |   | -- |   | 810 |   | 2,002 |   | -- |

----

| Measured and Indicated Mineral Resource estimates (inclusive of Reserves) as at December 31, 2013 |
|---------------------------------------------------------------------------------------------------|
|                                                                                              |   |   | Metal grade |   | Contained metal |
|                                                                                              |   | Tonnes000’s | Goldg/t | Silverg/t | Copper% | GoldKoz | SilverKoz | CopperMlbs |
| Stockpile material                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Open Pit                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Measured                                                                                          |   | 6,294 |   | 0.37 |   | 1.3 |   | -- |   | 74 |   | 262 |   | -- |
| Indicated                                                                                         |   | 64,816 |   | 0.44 |   | 2.2 |   | -- |   | 919 |   | 4,526 |   | -- |
| Open Pit M&I (stockpile)                                                                      |   | 71,110 |   | 0.43 |   | 2.1 |   | -- |   | 993 |   | 4,788 |   | -- |
| Total M&I                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Measured                                                                                          |   | 26,665 |   | 1.21 |   | 1.8 |   | -- |   | 1,035 |   | 1,531 |   | -- |
| Indicated                                                                                         |   | 150,696 |   | 1.07 |   | 2.7 |   | -- |   | 5,202 |   | 13,104 |   | -- |
| Total Rainy River M&I                                                                         |   | 177,361 |   | 1.09 |   | 2.6 |   | -- |   | 6,236 |   | 14,635 |   | -- |
| Blackwater                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Direct processing material                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Measured                                                                                          |   | 116,955 |   | 1.04 |   | 5.6 |   | -- |   | 3,900 |   | 21,060 |   | -- |
| Indicated                                                                                         |   | 189,044 |   | 0.78 |   | 6.0 |   | -- |   | 4,730 |   | 36,470 |   | -- |
| M&I (direct processing)                                                                       |   | 305,999 |   | 0.88 |   | 5.8 |   | -- |   | 8,620 |   | 57,520 |   | -- |
| Stockpile material                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Measured                                                                                          |   | 26,521 |   | 0.30 |   | 4.1 |   | -- |   | 260 |   | 3,500 |   | -- |
| Indicated                                                                                         |   | 64,382 |   | 0.30 |   | 4.4 |   | -- |   | 620 |   | 9,110 |   | -- |
| M&I (stockpile)                                                                               |   | 90,904 |   | 0.30 |   | 4.3 |   | -- |   | 870 |   | 12,600 |   | -- |
| Total Blackwater P&P                                                                          |   | 396,903 |   | 0.74 |   | 5.5 |   | -- |   | 9,500 |   | 70,130 |   | -- |
| Capoose                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Indicated                                                                                         |   | 20,280 |   | 0.50 |   | 22.4 |   | -- |   | 320 |   | 14,620 |   | -- |
| El Morro                                                                                          |   | 100% Basis |   |   |   |   |   |   | 30% Basis |   |   |
| Measured                                                                                          |   | 341,604 |   | 0.56 |   | -- |   | 0.54 |   | 1,848 |   | -- |   | 1,230 |
| Indicated                                                                                         |   | 349,803 |   | 0.35 |   | -- |   | 0.42 |   | 1,193 |   | -- |   | 977 |
| Total El Morro M&I                                                                            |   | 691,407 |   | 0.46 |   | -- |   | 0.48 |   | 3,041 |   | -- |   | 2,207 |
| Total M&I                                                                                     |   |   |   |   |   |   |   |   |   | 27,505 |   | 124,499 |   | 4,353 |

| Inferred Resource estimates as at December 31, 2013 |
|-----------------------------------------------------|
|                                                |   |   | Metal grade |   | Contained metal |
|                                                | Tonnes000’s | Goldg/t | Silverg/t | Copper% |   | GoldKoz |   | SilverKoz |   | CopperMlbs |
| New Afton                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| A&B Zones                                       |   | 5,607 |   | 0.32 |   | 1.5 |   | 0.38 |   | 59 |   | 272 |   | 46 |
| C-Zone                                              |   | 11,288 |   | 0.63 |   | 1.7 |   | 0.64 |   | 227 |   | 602 |   | 159 |
| HW Lens                                             |   | 818 |   | 0.56 |   | 1.3 |   | 0.42 |   | 15 |   | 33 |   | 7 |
| New Afton Inferred                                  |   | 17,713 |   | 0.53 |   | 1.6 |   | 0.54 |   | 301 |   | 907 |   | 212 |
| Mesquite                                            |   | 17,550 |   | 0.42 |   | -- |   | -- |   | 238 |   | -- |   | -- |
| Peak Mines                                          |   | 2,000 |   | 2.34 |   | 4.7 |   | 1.17 |   | 150 |   | 300 |   | 51 |
| Cerro San Pedro                                     |   | 1,174 |   | 0.34 |   | 11.6 |   | -- |   | 13 |   | 436 |   | -- |

----

| Inferred Resource estimates as at December 31, 2013 |
|-----------------------------------------------------|
|                                                |   |   | Metal grade |   | Contained metal |
|                                                | Tonnes000’s | Goldg/t | Silverg/t | Copper% |   | GoldKoz |   | SilverKoz |   | CopperMlbs |
| Rainy River                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Direct processing                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Open Pit                                            |   | 9,388 |   | 0.97 |   | 2.3 |   | -- |   | 292 |   | 687 |   | -- |
| Underground                                         |   | 2,641 |   | 4.46 |   | 8.3 |   | -- |   | 379 |   | 707 |   | -- |
| Total Direct Processing                             |   | 12,029 |   | 1.74 |   | 3.6 |   | -- |   | 671 |   | 1,394 |   | -- |
| Stockpile                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Open Pit                                            |   | 8,626 |   | 0.37 |   | 1.2 |   | -- |   | 102 |   | 323 |   | -- |
| Rainy River Inferred                                |   | 20,655 |   | 1.16 |   | 2.6 |   | -- |   | 773 |   | 1,717 |   | -- |
| Blackwater                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Direct processing                                   |   | 13,815 |   | 0.76 |   | 4.1 |   | -- |   | 340 |   | 1,820 |   | -- |
| Stockpile                                           |   | 3,785 |   | 0.31 |   | 3.6 |   | -- |   | 40 |   | 440 |   | -- |
| Blackwater Inferred                                 |   | 17,600 |   | 0.66 |   | 4.0 |   | -- |   | 380 |   | 2,260 |   | -- |
| Capoose                                             |   | 29,263 |   | 0.39 |   | 26.3 |   | -- |   | 370 |   | 24,740 |   | -- |
|                                                | 100% Basis |   |   |   |   |   |   |   |   | 30% Basis |   |   |
| El Morro – Open Pit                           |   | 564,217 |   | 0.16 |   | -- |   | 0.26 |   | 871 |   | -- |   | 970 |
| El Morro - Underground                              |   | 113,840 |   | 0.97 |   | -- |   | 0.78 |   | 1,065 |   | -- |   | 587 |
| Total Inferred                                      |   |   |   |   |   |   |   |   |   | 4,161 |   | 30,360 |   | 1,821 |

| 1) | Mineral Reserves for the Company’s mineral properties have been estimated based on the following metal prices and lower cut-off criteria: |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------|

| Mineral Property | Gold$/ounce | Silver$/ounce | Copper$/pound | Lower cut-off                                                                                      |
|------------------|-------------|---------------|---------------|----------------------------------------------------------------------------------------------------|
| New Afton        | $1,300      | $22.00        | $3.00         | $21.00/t NSR                                                                                       |
| Mesquite         | $1,300      | --            | --            | 0.21 g/t  Au – Oxide and transition reserves0.41 g/t Au – Non-oxide reserves |
| Peak Mines       | $1,300      | $22.00        | $3.00         | A$88 to 134/t NSR                                                                                  |
| Cerro San Pedro  | $1,300      | $22.00        | --            | $3.00/t NSR                                                                                        |
| Rainy River      | $800$1,300  | $25.00$22.00  | --            | 0.30 – 0.70 g/t  AuEq – Open pit3.50 g/t AuEq – Underground            |
| Blackwater       | $1,300      | $22.00        | --            | 0.26 – 0.38 g/t  AuEq – Direct processing0.32 g/t AuEq – Stockpile     |
| El Morro         | $1,300      | --            | $3.00         | 0.20% Cu                                                                                           |

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| 2) | Mineral Resources for the Company’s mineral properties have been estimated based on the following metal prices and lower cut-off criteria: |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| Mineral Property | Gold$/ounce | Silver$/ounce | Copper$/pound | Lower cut-off                                                                                              |
|------------------|-------------|---------------|---------------|------------------------------------------------------------------------------------------------------------|
| New Afton        | $1,400      | $24.00        | $3.25         | 0.40% CuEq                                                                                                 |
| Mesquite         | $1,400      | --            | --            | 0.11 g/t  Au – Oxide and transition resources0.22 g/t Au – Non-oxide resources       |
| Peak Mines       | $1,400      | $24.00        | $3.25         | A$92 to 125/t NSR                                                                                          |
| Cerro San Pedro  | $1,400      | $24.00        | --            | 0.10 g/t  AuEq – Open pit oxide resources0.30 g/t AuEq – Open pit sulphide resources |
| Rainy River      | $1,400      | $24.00        | --            | 0.30 – 0.45 g/t  Au – Open pit2.50 g/t Au – Underground                        |
| Blackwater       | $1,400      | $24.00        | --            | 0.40 g/t  AuEq – Direct processing0.30 – 0.40 g/t AuEq – Stockpile             |
| Capoose          | $1,400      | --            | --            | 0.40 g/t AuEq                                                                                              |
| El Morro         | $1,300      | --            | $3.00         | 0.20% Cu                                                                                                   |

| 3) | All Mineral Resource and Reserve estimates for New Gold’s operating properties and the El Morro Project are effective December 31, 2013. The Mineral Resource estimate for the Rainy River Project is effective November 2, 2013 and the Mineral Reserve estimate is effective December 31, 2013.  The Mineral Resource estimate for the Blackwater Project is effective March 31, 2013 and the Mineral Reserve estimate is effective December 2, 2013. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Mineral Resources and Reserves in two ore bodies (the Big Chief-Vista and the Rainbow ore bodies); |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | · | the physical plant site including heap leach pads, process plant, workshops, warehouses, administration buildings and dry facilities; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | · | facilities providing basic infrastructure to the mine, including electric power, heat, water treatment and supply and sewage treatment; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | mine infrastructure including open pits, ramps, maintenance shops and mobile equipment fleet. |
|--------|--------|-----------------------------------------------------------------------------------------------|

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|   | · | the strength of the U.S. economy and the economies of other industrialized and developing nations; |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | · | global or regional political or economic conditions; |
|--------|--------|------------------------------------------------------|

|   | · | the relative strength of the U.S. dollar and other currencies; |
|--------|--------|----------------------------------------------------------------|

|   | · | expectations with respect to the rate of inflation; |
|--------|--------|-----------------------------------------------------|

|   | · | interest rates; |
|--------|--------|-----------------|

|   | · | purchases and sales of gold by central banks and other large holders, including speculators; |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | demand for jewelry containing gold; and |
|--------|--------|-----------------------------------------|

|   | · | investment activity, including speculation, in gold as a commodity. |
|--------|--------|---------------------------------------------------------------------|

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|   | · | government regulations including, but not limited to, restrictions on production, price controls, import or export controls, currency remittance, income taxes, royalties, expropriation of property, foreign investment, maintenance of claims, environmental legislation, land use, land claims of local people, water use and mine safety; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the lack of certainty with respect to foreign legal systems, which may not be immune from the influence of political pressure, corruption or other factors that are inconsistent with the rule of law. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | transaction exposure: New Gold’s operations sell commodities and incur costs in different currencies. Specifically, the Company’s reserves are denominated in U.S. dollars while most of the Company’s expenses are currently denominated in Canadian dollars, Australian dollars and Mexican pesos. This creates exposure at the operational level, which may affect its profitability as exchange rates fluctuate. The appreciation of non-U.S. dollar currencies against the U.S. dollar can increase the costs of production at New Gold’s mines, making those mines less profitable; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | exposure to currency risk: New Gold is exposed to currency risk through a portion of the following assets and liabilities denominated in currencies other than the U.S. dollar: cash and cash equivalents, investments, accounts receivable, reclamation deposits, accounts payable and accruals, reclamation and closure cost obligations and long-term debt; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | translation exposure: New Gold’s functional and reporting currency is U.S. dollars. Certain of the Company’s operations have assets and liabilities denominated in currencies other than the U.S. dollar, with translation foreign exchange gains and losses included from these balances in the determination of profit or loss.  Therefore, exchange rate movements in the Canadian dollar, Mexican peso, Australian dollar and Chilean peso can have a significant impact on the Company’s consolidated operating results. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Sea level rise: New Gold’s operations are not directly threatened by current predictions of sea level rise. All of the Company’s operations are located inland at elevations from 100 metres to 4,000 metres above sea level. However, changes in sea levels could affect ocean transportation and shipping facilities, which are used to transport supplies, equipment and personnel to the Company’s operations and products from those operations to world markets. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Extreme weather events: Extreme weather events (such as increased frequency or intensity of hurricanes, increased snow pack, prolonged drought) have the potential to disrupt operations at our mines. Where appropriate, the Company’s facilities have developed emergency plans for managing extreme weather conditions; however, extended disruptions to supply lines due to extreme weather could result in production interruptions. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Standard & Poor’s Ratings Services:  BB- (Recovery Rating: 3) |
|--------|--------|-----------------------------------------------------------------------------------|

|   | · | Moody’s Investors Service:  B2 (LGD4) |
|--------|--------|-------------------------------------------------------|

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| 2013      | High (C$)   | Low (C$)   | Volume           |
|-----------|-------------|------------|------------------|
| January   |  11.28 |  9.31 |  19,974,875 |
| February  |  10.23 |  8.89 |  20,359,928 |
| March     |  10.14 |  8.75 |  23,764,763 |
| April     |  9.35  |  6.38 |  42,234,717 |
| May       |  7.95  |  6.37 |  40,740,211 |
| June      |  7.27  |  5.96 |  44,441,896 |
| July      |  7.86  |  6.58 |  24,746,571 |
| August    |  8.52  |  6.50 |  36,826,229 |
| September |  7.25  |  6.12 |  25,258,765 |
| October   |  6.70  |  5.68 |  22,536,512 |
| November  |  6.11  |  5.21 |  19,155,223 |
| December  |  5.61  |  4.99 | 20,559,914       |

| 2013      | High (C$)  | Low (C$)   | Volume        |
|-----------|------------|------------|---------------|
| January   |  2.95 |  2.07 |  622,594 |
| February  |  2.40 |  1.83 |  610,708 |
| March     |  2.31 |  1.90 |  354,571 |
| April     |  2.09 |  1.34 |  891,828 |
| May       |  1.86 |  1.03 |  599,953 |
| June      |  1.63 |  1.15 |  870,928 |
| July      |  1.68 |  1.19 |  431,387 |
| August    |  1.95 |  1.28 |  856,979 |
| September |  1.58 |  1.22 |  548,140 |
| October   |  1.53 |  1.03 |  494,287 |
| November  |  1.27 |  1.09 |  314,513 |
| December  | 1.18       | 0.92       |  520,490 |

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| DAVID EMERSONBritish Columbia, CanadaDirector since:July 1, 2012Independent         | David Emerson P.C., OBC is a Corporate Director, Public Policy Advisor and serves as a senior advisor to CAI Managers, a private equity fund. He has served as a minister in the Government of Canada including Minister of Foreign Affairs, Minister of International Trade and Minister of Industry. He has also held a number of senior positions in the public service in British Columbia. In the private sector, he was President and Chief Executive Officer of Canfor Corporation, President and Chief Executive Officer of the Vancouver International Airport Authority and Chairman and Chief Executive Officer of Canadian Western Bank. Mr. Emerson serves on the boards of Finning International Inc. and Stantec Inc., and is Chair of Maple Leaf Foods Inc. and Timberwest Forest Corporation.  Mr. Emerson is a recipient of the Order of British Columbia and the Peter Lougheed Award of Excellence in Public Policy.  Mr. Emerson holds bachelors and masters degrees in economics from the University of Alberta and a doctorate in Economics from Queen’s University. Mr. Emerson’s principal occupation is as a Corporate Director and Public Policy Advisor.  |
|-------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| JAMES ESTEYOntario, CanadaDirector since:July 8, 2008Independent               | James Estey is the retired Chairman of UBS Securities Canada Inc. and has over 30 years of experience in the financial markets. Mr. Estey joined Alfred Bunting and Company as an institutional equity salesperson in 1980 after working at A.E. Ames & Co. for seven years. In 1994, Mr. Estey became the head of the Canadian Equities business, and in 2002 he was appointed President and Chief Executive Officer of UBS Securities Canada. In January 2008, Mr. Estey assumed the role of Chairman.  He serves on the board of Range Royalty Management Ltd. and is Chair of the Board of Gibson Energy Inc.  Mr. Estey also serves on the Advisory Board of the Edwards School of Business.  Mr. Estey’s principal occupation is as a Corporate Director.                                                                                                                                                                                                                                                                                                                                                                                                          |
| ROBERT GALLAGHERBritish Columbia, CanadaDirector since:June 30, 2008Non-Independent | Robert Gallagher’s principal occupation is President and Chief Executive Officer of New Gold.  Mr. Gallagher has worked in the mining industry for over 35 years and spent 15 years with Placer Dome Inc., and from August 2000 to December 2007 with Newmont Mining Corporation, most recently as Vice President, Operations, Asia Pacific.  Before the June 2008 business combination of Peak Gold, Metallica and New Gold, Mr. Gallagher was the President and Chief Executive Officer of Peak Gold from February 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

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| VAHAN KOLOLIANOntario, CanadaDirector since:June 1, 2009Independent                      | Vahan Kololian is the founder and Managing Partner of TerraNova Partners LP, which invests in the industrial, services and resource sectors. Mr. Kololian started his career in investment banking in 1980 with Burns Fry Limited (now BMO Nesbitt Burns). From 1990 to 2000, he was co-founder and President of Polar Capital Corporation and from 2002 to 2011, he was Chairman of KK Precision Inc., a private engineering and manufacturing company.  Mr. Kololian also serves on the board of Manicouagan Minerals Inc., a public mineral exploration company.  He is also Chairman of the Board of Compact Power Equipment Inc., a North Carolina based equipment rental business operating throughout North America.  Mr. Kololian holds B.A. and LL.B. degrees.  Mr. Kololian is also co-founder and Chairman of the Mosaic Institute, whose purpose is to bring together and promote dialogue among Canadians of differing ethnicities whose homelands are in conflict with one another. Mr. Kololian’s principal occupation is Managing Partner of TerraNova Partners LP.  |
|------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| MARTYN KONIGJersey, United KingdomDirector since:June 1, 2009Independent            | Martyn Konig has over 30 years of experience in investment banking and the commodity markets as well as extensive experience in the natural resource sector. Mr. Konig’s principal occupation is Chief Investment Officer for T Wealth Management SA, the private family office for partners and senior management of the Trafigura Group.  Mr. Konig was Executive Chairman and President of European Goldfields Limited until its acquisition by Eldorado Gold Corp. in February 2012 and was Chief Executive Officer of the Blackfish Capital Group from 2005 until August 2009. Mr. Konig was a main Board Director of NM Rothschild and Sons Ltd. for 15 years and held senior positions at Goldman Sachs and UBS. Mr. Konig is a Barrister and Fellow of the Chartered Institute of Bankers.                                                                                                                                                                                                                                                                                                            |
| PIERRE LASSONDEOntario, CanadaDirector since:June 30, 2008Independent          | Pierre Lassonde is the Chairman of Franco-Nevada Corporation. He formerly served as President of Newmont Mining Corporation from 2002 to 2006 and resigned as a director and Vice Chairman of Newmont effective as at November 30, 2007. Previously Mr. Lassonde served as a director and President (1982 to 2002) and Co-Chief Executive Officer (1999 to 2002) of Franco-Nevada Corporation.  Mr. Lassonde is a Member of the Order of Canada and was inducted into the Canadian Mining Hall of Fame in 2013.  Mr. Lassonde’s principal occupation is Chairman of Franco-Nevada Corporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| RANDALL OLIPHANTOntario, CanadaDirector since:June 1, 2009Non-Independent           | Randall Oliphant’s principal occupation is Executive Chairman of New Gold.  From 1999 to 2003, Mr. Oliphant was the President and Chief Executive Officer of Barrick Gold Corporation, and since that time he has served on the boards of a number of public companies and not-for-profit organizations.  In addition, Mr. Oliphant was the Chairman of Western Goldfields Inc. from 2006 until its business combination with New Gold in 2009, at which time he became the Executive Chairman of the combined company.  Mr. Oliphant presently serves on the advisory board of Metalmark Capital LLC, and on the board of directors of Franco-Nevada Corporation, WesternZagros Resources Ltd. and Newmarket Gold Inc.  In addition, in 2013 Mr. Oliphant was elected as Chairman of the World Gold Council.  Mr. Oliphant is a Chartered Professional Accountant, CA.                                                                                                                                                                                               |
| RAYMOND THRELKELDNorth Carolina, United StatesDirector since:June 1, 2009Non-Independent | Raymond Threlkeld has over 32 years of mineral industry experience.  From 2009 to 2013, Mr. Threlkeld was the President and Chief Executive Officer of Rainy River Resources Ltd. From 2005 to 2009, Mr. Threlkeld was the Chief Operating Officer of Silver Bear Resources Inc.  From 2006 to 2009, he was the President and Chief Executive Officer of Western Goldfields Inc. From 1996 to 2005, Mr. Threlkeld held various senior management positions in precious metal mine development with Barrick Gold Corporation and Coeur d’Alene Mines Corporation including the development of the Pierina Mine in Peru, the Bulyanhulu Mine in Tanzania and the Veladero Mine in Argentina. Mr. Threlkeld has had exploration acquisition success in the Western United States in addition to his management and project development experience. In March 2014, Mr. Threlkeld was appointed Chair of the Board of Newmarket Gold Inc.  Mr. Threlkeld’s principal occupation is a Corporate Director and consultant on natural resource development.                                            |

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| BRIAN PENNYOntario, CanadaExecutive Vice President and Chief Financial Officer             | Mr. Penny has over 30 years’ experience in mine finance and accounting. He has been the Executive Vice President and Chief Financial Officer of the Company since June 2009.  He was the Chief Financial Officer of Western Goldfields from 2006 to 2009. From 2005 to spring 2012, Mr. Penny was also the Chief Financial Officer of Silver Bear Resources Inc. From 2004, Mr. Penny was a Director of and chaired the Audit Committee of Equinox Minerals Limited until the acquisition of the company by Barrick in 2012. Mr. Penny was the Chief Financial Officer of Kinross Gold Corporation from 1993 to 2004. Mr. Penny is a Chartered Professional Accountant, CMA.  Mr. Penny’s principal occupation is Executive Vice President and Chief Financial Officer of New Gold.                                  |
|--------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| LISA DAMIANIBritish Columbia, CanadaVice President General Counsel and Corporate Secretary | Ms. Damiani has been the Vice President, General Counsel and Corporate Secretary of New Gold since June 2013.  Previously, she was engaged in the private practice of law at Davies Ward Phillips & Vineberg LLP from 2001 as a partner, and from 1999 to 2000 as an associate.  Mr. Damiani has over 15 years' experience in corporate and securities law and mergers and acquisitions with a focus on the mining sector and has received extensive recognition in the industry. Ms. Damiani holds a Bachelor of Arts, a Bachelor of Laws and a Masters of Business Administration from the University of Toronto. Ms. Damiani’s principal occupation is Vice President, General Counsel and Corporate Secretary of New Gold.                                                                                         |
| JOHN MARSHALLBritish Columbia, CanadaVice President, Human Resources                       | Mr. Marshall has over 23 years’ experience in human resources spanning the energy, semiconductor and banking industries. He was previously the Director of Worldwide Human Resource Operations for PMC-Sierra Inc. where he managed human resources operations for employees in over ten countries. Prior to PMC-Sierra, Mr. Marshall held various human resources roles at Duke Energy, Westcoast Energy and NatWest Group plc.  Mr. Marshall holds a post-graduate diploma in personnel management from the University of Westminster, London, UK.  Mr. Marshall’s principal occupation is Vice President, Human Resources of New Gold.                                                                                                                                                                            |
| PETER MARSHALLBritish Columbia, CanadaVice President, Project Development                  | Mr. Marshall was appointed as Vice President, Project Development of New Gold in February 2014.  Mr. Marshall was previously Project Director for the Blackwater project from June 2011, following the Company’s acquisition of Richfield.  Before Richfield, Mr. Marshall was Senior Vice President, Project Development for Terrane Metals Inc. from April 2006 to November 2010, where he was responsible for managing the technical development of the Mt. Milligan project. Prior to Terrane, Mr. Marshall was employed for 17 years in the project development group of Placer Dome Inc.  Mr. Marshall holds a Bachelor of Science in Civil Engineering from the University of British Columbia.  Mr. Marshall’s principal occupation is Vice President, Project Development of New Gold.  |
| ERNEST MASTBritish Columbia, CanadaVice President Operations                               | Mr. Mast has over 23 years’ experience in mining throughout the Americas. Most recently, Mr. Mast was President and Chief Executive Officer of Minera Panama, a subsidiary of Inmet Mining Corporation, where he headed up Inmet's major development project in Panama. Prior to working with Inmet, Mr. Mast worked with Xstrata and its predecessor companies for 20 years in various positions including President and General Manager of the Falcondo operations in the Dominican Republic. Mr. Mast holds Bachelor's and Master's degrees in Metallurgical Engineering and is a registered Professional Engineer.  Mr. Mast’s principal occupation is Vice President, Operations of New Gold.                                                                                                                                  |

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| MARK PETERSENColorado, United StatesVice President, Exploration     | Mr. Petersen is an economic geologist with over 28 years’ of experience in the mining industry in the Americas. He has been the Vice President, Exploration of New Gold since 2008.  Previously, Mr. Petersen held the position of Vice President of Exploration for Metallica Resources Inc., where he was responsible for directing the company’s exploration activities at its projects in Mexico, Chile, Brazil and Alaska as well as evaluations of potential acquisitions throughout the Americas. Prior to his term with Metallica, Mr. Petersen held positions as an exploration geologist with Lac Minerals Inc. and predecessor companies Bond Gold Inc. and St. Joe Gold Inc.  Mr. Petersen holds a Bachelor of Arts with a major in Geology from The College of Wooster, a Master of Science in Geology from Kent State University, and a Master of Business Administration from the University of Colorado. Mr. Petersen is also a Certified Professional Geologist with the American Institute of Professional Geologists and a Registered Member of the Society for Mining, Metallurgy and Exploration.  Mr. Petersen’s principal occupation is Vice President, Exploration of New Gold.  |
|---------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| HANNES PORTMANNOntario, CanadaVice President, Corporate Development | Mr. Portmann has been working with mining companies in a financial capacity since his career began. He has been the Vice President, Corporate Development of New Gold since January 2010 and before that he was the Director of Corporate Development from June 2009. Mr. Portmann was the Director of Corporate Development and Investor Relations of Western Goldfields Inc. from 2008 to May 2009.  Before joining Western Goldfields, Mr. Portmann was part of the Merrill Lynch Investment Banking Mining Group, where he worked in an advisory role on merger and acquisition mandates as well as equity and debt offerings. Previously, Mr. Portmann held roles in both the assurance and advisory practices of PricewaterhouseCoopers LLP. Mr. Portmann holds a Bachelor of Science in Mining Engineering from Queen’s University, a Masters of Management and Professional Accounting from the Rotman School of Management, University of Toronto and is a Chartered Professional Accountant, CA.  Mr. Portmann’s principal occupation is Vice President, Corporate Development of New Gold.                                                                                                                         |

| Board Committee                                                           | Committee Members         | Status          |
|---------------------------------------------------------------------------|---------------------------|-----------------|
| Audit Committee                                                           | James Estey (Chair)       | Independent     |
| David Emerson                                                             | Independent               |
| Martyn Konig                                                              | Independent               |
| Compensation Committee                                                    | Martyn Konig (Chair)      | Independent     |
| James Estey                                                               | Independent               |
| Pierre Lassonde                                                           | Independent               |
| Corporate Governance and Nominating                                       | David Emerson (Chair)     | Independent     |
| Committee                                                                 | Vahan Kololian            | Independent     |
| Pierre Lassonde                                                           | Independent               |
| Health, Safety, Environment and Corporate Social Responsibility Committee | Raymond Threlkeld (Chair) | Non-Independent |
| Vahan Kololian                                                            | Independent               |
| Martyn Konig                                                              | Independent               |

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| James Estey (Chair) | Independent (1) |  Financially literate (2) |
|---------------------|-----------------|--------------------------------|
| David Emerson       | Independent (1) |  Financially literate (2) |
| Martyn Konig        | Independent (1) |  Financially literate (2) |

| (1) | A member of an Audit Committee is independent if the member has no direct or indirect material relationship with the Company which could, in the view of the Company’s board of directors, reasonably interfere with the exercise of the member’s independent judgment. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (2) | An individual is financially literate if he or she has the ability to read and understand a set of financial statements that present a breadth of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues that can reasonably be expected to be raised by the Company’s financial statements. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Financial Years Ending December 31 | Audit Fees(1) | Audit Related Fees (2) | Tax Fees (3) | All Other Fees |
|------------------------------------|---------------|------------------------|--------------|----------------|
| 2013                               | C$2,038,781   | C$193,250              | C$76,426     | nil            |
| 2012                               | C$1,974,978   | C$210,000              | C$75,456     | nil            |

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| (1) | The aggregate fees billed for the performance of the audit or review of the Company’s financial statements. |
|-----|-------------------------------------------------------------------------------------------------------------------|

| (2) | The aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit or review of the Company’s financial statements which are not included under the heading “Audit Fees”. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The aggregate fees billed for professional services rendered for tax compliance, tax advice and tax planning. |
|-----|---------------------------------------------------------------------------------------------------------------|

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|   | · | Acquisition and Funding Agreement dated January 6, 2010 between New Gold Inc., Datawave Sciences Inc., Inversiones El Morro Limitada and Goldcorp Inc.  See “El Morro Project, Chile” for more information about this agreement. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Credit Agreement dated December 14, 2010, as subsequently amended on March 23, 2012, August 14, 2012, November 8, 2012, February 28, 2013 and March 8, 2013, between Peak Gold Ltd., Metallica Resources Inc. and Western Goldfields Inc. (as Borrowers) and New Gold Inc. (as Guarantor) and Scotia Capital (as Joint Lead Arranger and Joint Book Runner) and The Bank of Nova Scotia (as Administrative Agent) and Commonwealth Bank of Australia (as Joint Lead Arranger, Joint Book Runner and Syndication Agent) and Unicredit Bank AG (as Documentation Agent) and The Bank of Nova Scotia, Commonwealth Bank of Australia, Unicredit Bank AG, Royal Bank of Canada and JPMorgan Chase Bank, N.A. (as Lenders) described under the heading “General Development of the Business - Developments - Financial”. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Purchase Agreement between New Gold Inc. and J.P. Morgan Securities LLC dated April 2, 2012 relating to the 2020 Senior Notes and the 2020 Note Indenture. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Purchase Agreement between New Gold Inc. and J.P. Morgan Securities LLC dated November14, 2012 relating to the 2022 Senior Notes and the 2022 Note Indenture. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Acquisition Agreement dated May 31, 2013 between New Gold Inc. and Rainy River Resources Ltd. relating to the takeover bid by New Gold for 100% of Rainy River Resources Ltd.  See “General Development of the Business – Developments – Acquisitions and Dispositions” for more information about the terms of the acquisition. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Mineral Property andTitle of Technical Report                                                                                                                               | Qualified Person(s)                                                                                                                                         |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| New Afton MineTechnical Report on the New Afton Project, British Columbia, Canada, dated December 31, 2009                                                                  | Mr. David Rennie, P. Eng., and Principal Geologist for Roscoe Postle Associates, Inc.                                                                  |
| Mr. R. Dennis Bergen, P. Eng., and Associate Principal Mining Engineer for Roscoe Postle Associates, Inc.                                                              |
| Mr. Kevin C. Scott, P. Eng., former Principal Metallurgist for Roscoe Postle Associates, Inc.                                                                          |
| Mesquite MineTechnical Report on the Mesquite Mine,  Imperial  County, California, USA dated February 28, 2014                                               | Mr. Wayne W. Valliant, P. Geo., and Principal Geologist for Roscoe Postle Associates, Inc.                                                             |
| Dr. Kathleen A. Altman, P. E. and Principal Metallurgist for Roscoe Postle Associates, Inc.                                                                            |
| Mr. Richard J. Lambert, P.E., and Principal Mining Engineer of  Roscoe Postle Associates, Inc.                                                                    |
| Peak Gold MinesTechnical Report on Peak Gold Mines, New South Wales, Australia, dated March 25, 2013                                                                   | Mr. Richard J. Lambert, P.E., and Principal Mining Engineer of  Roscoe Postle Associates, Inc.                                                         |
| Mr. Ian T. Blakley, P.Geo., and Principal Geologist of Roscoe Postle Associates, Inc.                                                                                       |
| Cerro San Pedro MineTechnical Report on the Cerro San Pedro Mine, San Luis Potosí, Mexico dated February 16, 2010 and amended March 22, 2010                           | Mr. Holger Krutzelmann, P. Eng., and Principal Metallurgist for Roscoe Postle Associates, Inc. (formerly Scott Wilson Roscoe Postle Associates, Inc.)  |
| Mr. Christopher Moreton, Ph.D. and P. Geo., and Senior Consulting Geologist for Roscoe Postle Associates, Inc. (formerly Scott Wilson Roscoe Postle Associates, Inc.)  |
| Mr. Richard J. Lambert, P.E., and Principal Mining Engineer of Roscoe Postle Associates, Inc.                                                                          |

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| Mineral Property andTitle of Technical Report                                                                  | Qualified Person(s)                                                                                    |
|----------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|
| Rainy River ProjectTechnical Report on the Rainy River Project, Ontario, Canada, dated February 12, 2014       | Colin Hardie, P. Eng., BBA Inc.                                                                   |
| David Runnels, Eng., BBA Inc.                                                                             |
| Patrice Live, Eng., BBA Inc.                                                                              |
| Sheila E. Daniel, M.Sc., P. Geo., AMEC                                                                    |
| David G. Ritchie, P. Eng., AMEC                                                                           |
| Adam Coulson, PhD., P. Eng., AMEC                                                                         |
| Glen Cole, P.Geo., SRK Consulting (Canada) Inc.                                                           |
| Dorota El-Rassi, P. Eng., SRK Consulting (Canada) Inc.                                                    |
| Colm Keogh, P. Eng., AMC Mining Consultants (Canada), Ltd.                                                |
| Mo Molavi, P. Eng., AMC Mining Consultants (Canada), Ltd.                                                 |
| Blackwater ProjectTechnical Report on Feasibility Study for the Blackwater Project, dated January 17, 2014     | Mr. Ronald G. Simpson, P Geo, and Professional Geoscientist for GeoSim Services Inc.              |
| Mr. Jay Horton, P.Eng., and Technical Services Manager for Norwest Corporation.                           |
| Mr. Bruno Borntraeger, P. Eng., and Specialist Engineer/Project Manager for Knight Piésold Ltd.      |
| Mr. I.A. (Tony) Lipiec, P. Eng., and Process Engineering Director for AMEC Americas Limited.              |
| Mr. Gary Christie, P Eng., and Project Manager for AMEC Americas Limited.                                 |
| El Morro ProjectTechnical Report on the El Morro Project, Region III, Chile, dated March 23, 2012              | Mr. Richard J. Lambert, P.E., and Principal Mining Consultant for Roscoe Postle Associates, Inc.  |
| Mr. Neil N. Gow, P. Geo., and an Associate Consulting Geologist for Roscoe Postle Associates, Inc.        |
| Mr. A. Paul Hampton, P. Eng.. and an Associate Principal Metallurgist for Roscoe Postle Associates, Inc.  |
| Mr. Lee P. Gochnour, MMSA QP, and an Environmental Scientist for Roscoe Postle Associates, Inc.           |

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| 1. | Purpose and Authority |
|----|-----------------------|

| 2. | Membership and Composition |
|----|----------------------------|

----

| 3. | Meetings |
|----|----------|

| 4. | Duties and Responsibilities |
|----|-----------------------------|

|   | a. | Review and discuss with management and the external auditor at the completion of the annual examination: |
|--------|----|----------------------------------------------------------------------------------------------------------|

|   | i. | the Company's audited financial statements and related notes; |
|--------|----|---------------------------------------------------------------|

|   | ii. | the external auditor's audit of the financial statements and their report; |
|--------|-----|----------------------------------------------------------------------------|

----

|   | iii. | any significant changes required in the external auditor's audit plan; |
|--------|------|------------------------------------------------------------------------|

|   | iv. | any serious difficulties or disputes with management encountered during the course of the audit; and |
|--------|-----|------------------------------------------------------------------------------------------------------|

|   | v. | other matters related to the conduct of the audit which are to be communicated to the Committee under International Financial Reporting Standards (“IFRS”). |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Review and discuss with management and the external auditor at the completion of any review engagement or other examination, the Company's quarterly financial statements. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Review and discuss with management the annual reports, quarterly reports, Management’s Discussion and Analysis ("MD&A"), earnings press releases and any other material disclosure documents containing or incorporating by reference audited or unaudited financial statements of the Company and, if thought advisable, recommend the acceptance of such documents to the Board for approval. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | Review and discuss with management any guidance being provided to shareholders on the expected earnings of the Company and, if thought advisable, provide their recommendations on such documents to the Board. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | Inquire of the auditors regarding the quality and acceptability of the Company's accounting principles and estimates, including the clarity of financial disclosure and the degree of conservatism or aggressiveness of the accounting policies and estimates. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f. | Review the Company's compliance with any policies and reports received from regulators. Discuss with management and the external auditor the effect on the Company's financial statements of significant regulatory initiatives. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g. | Meet with the external auditor and management in separate executive sessions, as necessary or appropriate, to discuss any matters that the Committee or any of these groups believe should be discussed privately with the Committee. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | h. | Ensure that management has the proper and adequate systems and procedures in place for the review of the Company's financial statements, financial reports and other financial information including all Company disclosure of financial information extracted or derived from the Company’s financial statements, and that they satisfy all legal and regulatory requirements. The Committee shall periodically assess the adequacy of such procedures. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i. | Review with the Company's counsel, management and the external auditor any legal or regulatory matter, including reports or correspondence, which could have a material impact on the Company's financial statements or compliance policies. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | j. | Based on discussions with the external auditor concerning the audit, the financial statement review and such other matters as the Committee deems appropriate, recommend to the Board the filing of the audited annual and unaudited quarterly financial statements and MD&A on SEDAR and the inclusion of the audited financial statements in the Annual Report on Form 40-F. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | a. | Be responsible for the recommendation to the Board and the shareholders for the appointment of the Company's external auditor and for the compensation, retention and oversight of the work of the external auditor employed by the Company. The external auditor shall report directly to the Committee. The Committee shall be responsible to resolve any disagreements, if any, between management and the external auditor regarding financial reporting. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Consider, in consultation with the external auditor, the audit scope and plan of the external auditor. |
|--------|----|--------------------------------------------------------------------------------------------------------|

|   | c. | Approve the external auditor to be nominated and the cost of their services and review the performance of the external auditor, including the lead partner of the external auditor. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | Confirm with the external auditor and receive written confirmation at least once per year as to the external auditor's internal processes and quality control and disclosure of any investigations or government enquiries, reviews or investigations of the external auditor. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | Take reasonable steps to confirm at least annually the independence of the external auditor, which shall include: |
|--------|----|-------------------------------------------------------------------------------------------------------------------|

|   | i. | ensuring receipt from the external auditor of a formal written statement delineating all relationships between the external auditor and the Company, consistent with IFRS, and determine that they satisfy the requirements of all applicable securities laws, |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii. | considering and discussing with the external auditor any disclosed relationships or services, including non-audit services, that may impact the objectivity and independence of the external auditor, and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iii. | approving in advance any audit or permissible non-audit related services provided by the external auditor to the Company with a view to ensuring independence of the external auditor, and in accordance with any applicable regulatory requirements, including the requirements of all applicable securities laws with respect to approval of non-audit related serviced performed by the external auditor. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f. | Confirm that the lead audit partner for the Company's external auditor has not performed audit services for the Company for more than five previous fiscal years, and otherwise ensure the rotation of the lead partner and other partners in accordance with all applicable securities laws. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g. | Review and approve the Company's hiring policies regarding partners, employees and former employees of the present and former external auditors of the Company. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | a. | Review and assess the adequacy and effectiveness of the Company's systems of internal control and management information systems through discussion with management and the external auditor to ensure that the Company maintains appropriate systems, is able to assess the pertinent risks of the Company and that the risk of a material misstatement in the financial disclosures can be detected. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Assess the requirement for the appointment of an internal auditor for the Company. |
|--------|----|------------------------------------------------------------------------------------|

|   | c. | Review disclosures made to the Committee by the Company's Chief Executive Officer and Chief Financial Officer during their certification process required under applicable Canadian and United States securities laws. Review any significant deficiencies in the design and operation of internal controls over financial reporting or disclosure controls and procedures and any fraud involving management or other employees who have a significant role in the Company's internal controls. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | Conduct an ongoing review of any transaction now in effect, and review and approve in advance any proposed transaction, that could be within the scope of "related party transactions" as such term is defined in applicable securities laws, and establish appropriate procedures to receive material information about and prior notice of any such transaction. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Establish procedures for the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls or auditing matters; and for the confidential, anonymous submission by employees of the Company of concerns regarding questionable accounting or auditing matters. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Conduct or authorize investigations into any matter within the scope of this Charter. The Committee may request any officer or employee of the Company, its external legal counsel or external auditor to attend a meeting of the Committee or to meet with any member(s) of the Committee. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | Review the qualifications of the senior accounting and financial personnel. |
|--------|----|-----------------------------------------------------------------------------|

|   | e. | Enquire of management and the external auditor regarding significant financial risks or exposures and the steps management has taken to minimize such risks to the Company. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f. | Perform any other activities consistent with this Charter, the Company's Articles and governing law, as the Committee or the Board deems necessary or appropriate. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5. | Chair of the Committee |
|----|------------------------|

|   | a. | provides leadership to the Committee with respect to its functions as described in this Charter and as otherwise may be appropriate, including overseeing the logistics of the operations of the Committee; |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | chairs meetings of the Committee, unless not present, including in camera sessions, and reports to the Board following each meeting of the Committee on the findings, activities and any recommendations of the Committee; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | ensures that the Committee meets on a regular basis and at least quarterly; |
|--------|----|-----------------------------------------------------------------------------|

|   | d. | in consultation with the Chair of the Board and the Committee members, establishes a calendar for holding meetings of the Committee; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | establishes the agenda for each meeting of the Committee, with input from other Committee members, the Chair of the Board, and any other parties as applicable; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f. | acts as liaison and maintains communication with the Chair of the Board and the Board to optimize and co-ordinate input from Board members, and to optimize the effectiveness of the Committee. This includes reporting to the full Board on all proceedings and deliberations of the Committee at the first meeting of the Board after each Committee meeting and at such other times and in such manner as the Committee considers advisable; |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g. | reports annually to the Board on the role of the Committee and the effectiveness of the Committee’s role in contributing to the objectives and responsibilities of the Board as a whole; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | h. | ensures that the members of the Committee understand and discharge their duties and obligations; |
|--------|----|--------------------------------------------------------------------------------------------------|

|   | i. | fosters ethical and responsible decision making by the Committee and its individual members; |
|--------|----|----------------------------------------------------------------------------------------------|

|   | j. | together with the Corporate Governance and Nominating Committee, oversees the structure, composition, membership and activities delegated to the Committee from time to time; |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | k. | ensures that resources and expertise are available to the Committee so that it may conduct its work effectively and efficiently and pre-approves work to be done for the Committee by consultants; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | l. | facilitates effective communication between members of the Committee and management; |
|--------|----|--------------------------------------------------------------------------------------|

|   | m. | addresses, or causes to be addressed, all concerns communicated to him or her under the Company’s Whistleblower Policy or Code of Conduct; and |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | n. | performs such other duties and responsibilities as may be delegated to the Chair of the Committee by the Board from time to time. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------|

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| Term                   | Definition                                                                                                                                                                                                                                                                                                                                                                                                 |
|------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| atomic absorption (AA) | A spectroanalytical procedure for the quantitative determination of chemical elements employing the absorption of optical radiation (light) by free atoms in the gaseous state.                                                                                                                                                                                                                            |
| alluvial               | Material which has been placed by the action of surface water.                                                                                                                                                                                                                                                                                                                                             |
| alteration             | Change in the mineralogical composition of a rock, typically brought about by the action of hydrothermal solutions.                                                                                                                                                                                                                                                                                        |
| amphibolite            | A metamorphic rock consisting mainly of a amphibole and some plagioclase.                                                                                                                                                                                                                                                                                                                                  |
| andesite               | An extrusive igneous, volcanic rock of intermediate composition, with aphanitic to porphyritic texture.                                                                                                                                                                                                                                                                                                    |
| arsenopyrite           | The most common arsenic mineral and principal ore of arsenic; occurs in many sulphide ore deposits, particularly those containing lead, silver and gold.                                                                                                                                                                                                                                                   |
| assay                  | Analysis to determine the amount or proportion of the element of interest contained within a sample.                                                                                                                                                                                                                                                                                                       |
| ball mill              | A horizontal rotating steel cylinder which grinds ore to fine particles. The grinding is carried out by the pounding and rolling of a charge of steel balls carried within the cylinder.                                                                                                                                                                                                                   |
| batholith              | A very large igneous intrusion extending deep in the earth's crust.                                                                                                                                                                                                                                                                                                                                        |
| block cave             | Used to mine massive, steeply-dipping ore bodies. An undercut with haulage access is driven under the ore body, with "drawbells" excavated between the top of the haulage level and the bottom of the undercut. The drawbells serve as a place for caving rock to fall into. The ore body is drilled and blasted above the undercut, and the ore is removed via the haulage access.                        |
| block model            | A three-dimensional model that forms the basic framework of a mineral resource estimate.                                                                                                                                                                                                                                                                                                                   |
| bornite                | A brittle reddish-brown crystalline mineral with an iridescent purple tarnish, consisting of a sulphide of copper and iron.                                                                                                                                                                                                                                                                                |
| breccia                | A coarse-grained clastic rock, composed of angular broken rock fragments held together by a mineral cement or in a fine-grained matrix; it differs from conglomerate in that the fragments have sharp edges and unworn corners.                                                                                                                                                                            |
| bullion                | Gold or silver in bulk before coining, or valued by weight.                                                                                                                                                                                                                                                                                                                                                |
| by-product             | A secondary metal or mineral product that is recovered along with the primary metal or mineral product during the ore concentration process.                                                                                                                                                                                                                                                               |
| Cache Creek Terrane    | A geologic terrane in British Columbia and southern Yukon, Canada. It consists of volcanics, carbonate rocks, coarse clastic rocks and small amounts of ultramafic rock, chert and argillite.                                                                                                                                                                                                              |
| calc-alkalic           | Rocks are rich in alkaline earths (magnesia and calcium oxide) and alkali metals and make up a major part of the crust of the earth's continents.                                                                                                                                                                                                                                                          |
| carbon-in-leach (CIL)  | A process step wherein granular activated carbon particles much larger than the ground ore particles are introduced into the ore pulp. Cyanide leaching and precious metals adsorption onto the activated carbon occurs simultaneously. The loaded activated carbon is mechanically screened to separate it from the barren pulp, processed to remove the precious metals and finally prepared for reuse.  |
| Cenozoic               | The current and most recent of the three Phanerozoic geological eras, following the Mesozoic Era and covering the period from about 65 million years ago to the present.                                                                                                                                                                                                                                   |

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| Term                            | Definition                                                                                                                                                                                                                                                                                    |
|---------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| center-return hammer            | A type of reverse circulation drilling bit and pneumatic hammer system that collects the sampled material at the operating face of the drill bit.                                                                                                                                             |
| chalcocite                      | A dark gray mineral that is an important ore of copper.                                                                                                                                                                                                                                       |
| chalcopyrite                    | A copper mineral composed of copper, iron and sulphur. It tarnishes easily; going from bronze or brassy yellow to yellowish or grayish brown, has a dark streak, and is lighter in weight and harder than gold.                                                                                    |
| colluvium                       | Loose, unconsolidated sediments that have been deposited at the base of hillslopes by either rain-wash, sheet wash, slow continuous downslope creep, or a variable combination of these processes.                                                                                                 |
| comminution                     | The action of reducing an ore by crushing and grinding to minute particles or fragments.                                                                                                                                                                                                      |
| concentrate                     | A processing product containing the valuable ore mineral from which most of the waste mineral has been eliminated.                                                                                                                                                                            |
| conventional rotary             | A drilling method that produces rock chips similar to reverse circulation except that the sample is collected using a single-walled drill pipe. Air or water circulates down through the center of the drill pipe and returns chips to the surface around the outside of the pipe.                 |
| core                            | Cylindrical rock cores produced by diamond drilling method that uses a rotating barrel and an annular-shaped, diamond-impregnated rock-cutting bit to produce cores and lift them to the surface to be examined.                                                                                   |
| Cretaceous                      | A geologic period and system from circa 145 to 66 million years ago. The Cretaceous follows the Jurassic period and is followed by the Paleogene period of the Cenozoic era. It is the last period of the Mesozoic Era, and, spanning 80 million years, the longest period of the Phanerozoic Eon. |
| crushing                        | Breaking of ore into smaller and more uniform fragments to be then fed to grinding mills or to a leach pad.                                                                                                                                                                                   |
| crust                           | The outermost solid shell of a rocky planet, which is chemically distinct from the underlying mantle.                                                                                                                                                                                         |
| cut-off grade                   | The minimum metal grade at which a tonne of rock can be processed on an economic basis.                                                                                                                                                                                                       |
| cyanidation                     | A method of extracting exposed gold or silver grains from crushed or ground ore by dissolving the contained gold and silver in a weak cyanide solution.                                                                                                                                       |
| direct current (DC) resistivity | Observation of electric fields caused by current introduced into the ground as a means of studying earth resistivity in geophysical exploration. Resistivity is the property of a material that resists the flow of electrical current.                                                            |
| decline                         | A downward inclined underground tunnel.                                                                                                                                                                                                                                                       |
| deformation                     | Change in the form or in the dimensions of a body produced by stress.                                                                                                                                                                                                                         |
| Devonian                        | A geologic period and system of the Paleozoic Era spanning from the end of the Silurian Period, about 419 million years ago, to the beginning of the Carboniferous Period, about 359 million years ago.                                                                                            |
| differential flotation          | Process of separation of a complex ore into two or more mineral components and gangue by flotation.                                                                                                                                                                                           |
| dike                            | A discordant tabular body of igneous rock that, when molten, was injected into a fissure that cuts across the structure of the adjacent country rocks and which usually has a high angle of dip.                                                                                                   |
| dilution                        | The effect of waste or low-grade ore being included unavoidably in the mine ore, lowering the recovered grade.                                                                                                                                                                                |
| diorite                         | A grey to dark grey intermediate intrusive igneous rock composed principally of plagioclase feldspar (typically andesine), biotite, hornblende, and/or pyroxene.                                                                                                                              |
| doré                       | Unrefined gold and silver bullion bars, which will be further refined to almost pure metal.                                                                                                                                                                                                   |

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| Term                     | Definition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| drift                    | A horizontal tunnel generally driven within or alongside an ore body and aligned parallel to the long dimension of the ore.                                                                                                                                                                                                                                                                                                                                                                                       |
| easement                 | An incorporeal right, distinct from the ownership of the soil, consisting of a liberty, privilege, or use of another's land without profit or compensation; a right-of-way.                                                                                                                                                                                                                                                                                                                                       |
| ejido                    | In Mexico, a piece of land farmed communally under a system supported by the state.                                                                                                                                                                                                                                                                                                                                                                                                                               |
| electromagnetic survey   | Using a geophysical method of measuring electromagnetic waves in a specific area of the earth's surface.                                                                                                                                                                                                                                                                                                                                                                                                     |
| electrowinning           | Recovery of a metal from a solution by means of electro-chemical processes.                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Eocene                   | A major division of the geologic timescale and the second epoch of the Paleogene Period in the Cenozoic Era. The Eocene spans the time from the end of the Palaeocene Epoch to the beginning of the Oligocene Epoch. The start of the Eocene is marked by the emergence of the first modern mammals.                                                                                                                                                                                                                   |
| epithermal               | A hydrothermal mineral deposit formed within about one kilometre of the Earth’s surface and in the temperature range of 50 to 200 degrees celsius, occurring mainly as veins.                                                                                                                                                                                                                                                                                                                               |
| fault                    | A fracture in the earth’s crust accompanied by a displacement of one side of the fracture with respect to the other and in a direction parallel to the fracture.                                                                                                                                                                                                                                                                                                                                            |
| feasibility study        | A comprehensive technical and economic study of the selected development option for a mineral project that includes appropriately detailed assessments of realistically assumed mining, processing, metallurgical, economic, marketing, legal, environmental, social and governmental considerations together with any other relevant operational factors and detailed financial analysis, that are necessary to demonstrate at the time of reporting that extraction is reasonably justified (economically mineable). |
| felsic                   | Silicate minerals, magma, and rocks which are enriched in the lighter elements such as silicon, oxygen, aluminium, sodium, and potassium.                                                                                                                                                                                                                                                                                                                                                                         |
| fire assay               | Analysis to determine the amount or proportion of the element of interest contained within a sample alloy by removal of other metals. Also known as gravimetric analysis.                                                                                                                                                                                                                                                                                                                                         |
| flotation                | A separation process in which valuable mineral particles are induced to become attached to bubbles and float, while the non-valuable minerals sink.                                                                                                                                                                                                                                                                                                                                                               |
| formation                | Unit of sedimentary rock of characteristic composition or genesis.                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| geophysical survey       | Exploration activity mapping an area showing the physics of the earth.                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| grade                    | The amount of metal in each tonne of ore, expressed as grams per tonne for precious metals.                                                                                                                                                                                                                                                                                                                                                                                                                       |
| granite                  | A very hard, granular, crystalline, igneous rock consisting mainly of quartz, mica, and feldspar and often used as a building stone.                                                                                                                                                                                                                                                                                                                                                                              |
| granodiorite             | A coarse-grained, plutonic rock containing quartz and plagioclase, between granite and diorite in composition.                                                                                                                                                                                                                                                                                                                                                                                                    |
| gravity recovery circuit | Equipment used within a plant to recover gold from the ore using the difference in specific gravity between the gold and the host rock.                                                                                                                                                                                                                                                                                                                                                                           |
| grinding (milling)       | Powdering or pulverising of ore, by pressure or abrasion, to liberate valuable minerals for further metallurgical processing.                                                                                                                                                                                                                                                                                                                                                                                     |
| heap leaching            | A process whereby gold is extracted by “heaping” broken ore on sloping impermeable pads and repeatedly spraying the heaps with a weak cyanide solution which dissolves the gold content. The gold-laden solution is collected for gold recovery.                                                                                                                                                                                                                                                           |
| hectares                 | A metric unit of area measuring 100 metres by 100 metres.                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

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| Term                                  | Definition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| hedging                               | Taking a buy or sell position in a futures market opposite to a position held in the cash market to minimize the risk of financial loss from an adverse price change.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| HQ                                    | A diamond drill core measuring 2.5 inches in diameter (6.35 centimetres).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| hypogene                              | Producing or occurring under the surface of the earth.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Indicated Mineral Resource*           | The part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.                        |
| inductively-coupled plasma (ICP)      | Analytical technique whereby a sample is diluted and shaken, then aspirated into a high energy argon plasma where it is vaporized. The amount of light measured by the ICP for the characteristic elemental wavelengths is converted to elemental concentrations parts per million (ppm).                                                                                                                                                                                                                                                                                                                                                                       |
| induced polarization (IP)             | A surface-based geophysical survey method used in mineral exploration.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Inferred Mineral Resource*            | The part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.                                                                                                                                                                                                                                                        |
| infill                                | The collection of additional samples between existing samples, used to provide greater geological detail and to provide more closely-spaced assay data.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| intrusive                             | Igneous rock which, while molten, penetrated into or between other rocks and solidified before reaching the surface.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| lode                                  | A mineral deposit, consisting of a zone of veins, veinlets or disseminations, in consolidated rock as opposed to a placer deposit.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| long-hole open stoping                | A method of underground mining involving the drilling of holes up to 30 metres or longer into an ore-bearing zone and then blasting a slice of rock which falls into an open space. The broken rock is extracted and the resulting open chamber may or may not be filled with supporting material.                                                                                                                                                                                                                                                                                                                                                              |
| low-grade                             | Descriptive of ores relatively poor in the metal they are mined for; lean ore.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| mafic                                 | A group of dark-colored minerals, composed chiefly of magnesium and iron, that occur in igneous rocks.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Measured Mineral Resource*            | The part of a Mineral Resource for which quantity, grade or quality, densities, shape, physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity. |
| metamorphism                          | The process by which the form or structure of rocks is changed by heat and pressure.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| mill                                  | A processing facility where ore is finely ground and then undergoes physical or chemical treatment to extract the valuable metals. Also, the device used to perform grinding (milling).                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| mineral claim / property / concession | Authorizes the holder to prospect and mine for minerals and to carry out works in connection with prospecting and mining.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

----

| Term                                  | Definition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Mineral Reserve*                      | The economically mineable part of a Measured or Indicated Mineral Resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. A Mineral Reserve includes diluting materials and allowances for losses that may occur when the material is mined. Mineral Reserves are sub-divided in order of increasing confidence into Probable Mineral Reserves and Proven Mineral Reserves.                                                    |
| Mineral Resource*                     | A concentration or occurrence of diamonds, natural, solid, inorganic or natural fossilized organic material including base and precious metals, coal, and industrial minerals in or on the Earth’s crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are subdivided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories. |
| muscovite                             | A phyllosilicate mineral of aluminium and potassium. It has a highly-perfect basal cleavage yielding very thin sheets, which are often highly elastic.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| net cash costs                        | A non-GAAP financial measure calculating the costs of production, at site level, per unit of output. Includes operational costs, such as transport, refining, administration, and royalties.                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| net smelter return (NSR)              | A type of royalty payment where the royalty owner receives a fixed percentage of the revenues of a property or operation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| NI 43-101                             | Canadian National Instrument NI 43-101 - A strict guideline for how public companies in Canada can disclose scientific and technical information about mineral projects.                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| offtake agreement                     | A contractual agreement for one party to supply another with a product within certain conditions such as purity, timing, and volume. It obligates the off-taker to accept the product regardless of market conditions.                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| open-pit mine                         | A mine where materials are removed entirely from a working that is open to the surface.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| ore                                   | Rock, generally containing metallic or non-metallic minerals, which can be mined and processed at a profit.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| outcrop                               | A rock formation that is visible on the surface.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| oxidation                             | Reaction of a material with an oxidizer such as pure oxygen or air in order to alter the state of the material.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| oxide ore                             | Mineralized rock in which some of the original minerals have been oxidized. Oxidation tends to make the ore more amenable to cyanide solutions so that minute particles of gold will be readily dissolved.                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Paleozoic                             | An era of geologic time that includes the Cambrian, Ordovician, Silurian, Devonian, Mississippian, Pennsylvanian and Permian periods and is characterized by the appearance of marine invertebrates, primitive fishes, land plants and primitive reptiles.                                                                                                                                                                                                                                                                                                                                                                                              |
| preliminary economic assessment (PEA) | A study, other than a pre-feasibility study or feasibility study, which includes an economic analysis of the potential viability of mineral resources. The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves and there is no certainty that the PEA based on these Mineral Resources will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.                                                                |
| porphyry                              | A variety of igneous rock consisting of large-grained crystals, such as feldspar or quartz, dispersed in a fine-grained feldspathic matrix or groundmass.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| pre-feasibility study                 | Preliminary assessment of project viability that usually takes place in the identification stage of the project cycle. Pre-feasibility studies generally cover the same subjects as feasibility studies, but in much less detail.                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Probable Mineral Reserve*             | The economically mineable part of an Indicated and, in some circumstances, a Measured Mineral Resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.                                                                                                                                                                                                                                                                          |

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| Term                                          | Definition                                                                                                                                                                                                                                                                                                                                                                               |
|-----------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Proven Mineral Reserve*                       | The economically mineable part of a Measured Mineral Resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction is justified.                                                        |
| pyrite                                        | A yellow iron sulphide mineral, normally of little value. It is sometimes referred to as “fool’s gold.”                                                                                                                                                                                                                                                           |
| pyroclastic                                   | Rocks produced by explosive or aerial ejection of ash, fragments, and glassy material from a volcanic vent.                                                                                                                                                                                                                                                                         |
| pyrrhotite                                    | A brownish yellow iron sulphide mineral.                                                                                                                                                                                                                                                                                                                                            |
| Qualified Person*                             | An individual who is an engineer or geoscientist with at least five years’ experience in mineral exploration, mine development or operation or mineral project assessment, or any combination of these; has experience relevant to the subject matter of the mineral project and the technical report; and is a member or licensee in good standing of a professional association. |
| quality assurance and quality control (QA/QC) | The process of measuring and assuring product quality to meet consumer expectations.                                                                                                                                                                                                                                                                                                |
| reclamation                                   | The restoration of a site after mining or exploration activity is completed.                                                                                                                                                                                                                                                                                                        |
| reclamation and closure costs                 | The cost of reclamation plus other costs, including without limitation certain personnel costs, insurance, property holding costs such as taxes, rental and claim fees, and community programs associated with closing an operating mine.                                                                                                                                                |
| recovered grade                               | Actual metal grade realized by the metallurgical process and treatment or ore, based on actual experience or laboratory testing.                                                                                                                                                                                                                                                    |
| recovery                                      | A term used in process metallurgy to indicate the proportion of valuable material obtained in the processing of an ore. It is generally stated as a percentage of valuable metal in the ore that is recovered compared to the total valuable metal present in the ore.                                                                                                                   |
| refining                                      | The final stage of metal production in which impurities are removed from the molten metal.                                                                                                                                                                                                                                                                                          |
| refractory material                           | Mineralized material in which the metal is not amenable to recovery by conventional cyanide methods without any pre-treatment.                                                                                                                                                                                                                                                      |
| reverse circulation                           | A drilling method that uses a rotating cutting bit within a double-walled drill pipe and produces rock chips rather than core. Air or water is circulated down to the bit between the inner and outer wall of the drill pipe. The chips are forced to the surface through the centre of the drill pipe and are collected, examined and assayed.                                          |
| run-of-mine (ROM)                             | Ore in its natural, unprocessed state; pertaining to ore just as it is mined.                                                                                                                                                                                                                                                                                                       |
| sample                                        | A small portion of rock, or a mineral deposit, taken so that the metal content can be determined by assaying.                                                                                                                                                                                                                                                                       |
| scoping study                                 | A technical and economic study conducted to investigate the approximate economics and viability of various development options for the mining and treatment of a mineral deposit.                                                                                                                                                                                                   |
| sedimentary rocks                             | Secondary rocks formed from material derived from other rocks and laid down under water. Examples are limestone, shale and sandstone.                                                                                                                                                                                                                                               |
| semi-autogenous (SAG) mill                    | A steel cylinder with steel balls into which run-of-mine material is fed. The ore is ground with the action of large lumps of rock and steel balls.                                                                                                                                                                                                                                 |
| shaft                                         | A vertical passageway to an underground mine for ventilation, moving personnel, equipment, supplies and material including ore and waste rock.                                                                                                                                                                                                                                      |
| shear zone                                    | A geological term used to describe a geological area in which shearing has occurred on a large scale.                                                                                                                                                                                                                                                                               |
| silica                                        | The dioxide of silicon occurring in crystalline, amorphous, and impure forms (as in quartz, opal, and sand respectively). Used to manufacture a wide variety of materials, especially glass and concrete.                                                                                                                                                                                |

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| Term                      | Definition                                                                                                                                           |
|---------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
| sphalerite                | A zinc mineral which is composed of zinc and sulphur.                                                                                                |
| stock                     | A magma that has intruded into pre-existing rock in a columnar shape, typically a kilometre or more in diameter.                                     |
| stockpile                 | Broken ore heaped on the surface, pending treatment or shipment.                                                                                     |
| stockwork                 | A mineral deposit consisting of a three-dimensional network of planar to irregular veinlets closely enough spaced that the whole mass can be mined.  |
| tailings                  | The material that remains after all metals considered economic have been removed from ore during milling.                                            |
| tailings storage facility | A natural or man-made confined area suitable for depositing the material that remains after the treatment of ore.                                    |
| terrane                   | Area of land of a particular character, e.g., mountainous, swampy.                                                                                   |
| tonne                     | Metric unit of mass equaling 1,000 kilograms or 2,240 pounds. Called a "long ton."                                                                   |
| ton                       | Unit of weight equaling 2,000 pounds. Called a "short ton."                                                                                          |
| total cash costs          | A non-GAAP financial measure calculated by dividing all of the costs absorbed into inventory by applicable ounces sold.                              |
| tuff                      | Rock composed of fine volcanic ash.                                                                                                                  |
| vein                      | A fissure, fault or crack in a rock filled by minerals that have traveled upwards from some deep source.                                             |
| volcanics                 | A general collective term for extrusive igneous and pyroclastic material and rocks.                                                                  |

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| m          | micron                                                                                                                                           |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
| AA         | Atomic Absorption                                                                                                                                |
| Ag         | Silver                                                                                                                                           |
| Au         | Gold                                                                                                                                             |
| °C    | degree celsius                                                                                                                                   |
| °F    | degree fahrenheit                                                                                                                                |
| Doré  | Semi-pure alloy of gold and silver, usually created at a mine site, which is transported to a precious metals refinery for further purification. |
| mg         | microgram                                                                                                                                        |
| cm         | centimetre                                                                                                                                       |
| cm2        | square centimetre                                                                                                                                |
| Cu         | Copper                                                                                                                                           |
| ft         | foot                                                                                                                                             |
| g          | gram                                                                                                                                             |
| G          | giga (billion)                                                                                                                                   |
| Gwh        | gigawatt-hour                                                                                                                                    |
| HQ         | diamond drill core measuring 6.35 cm in diameter                                                                                                 |
| hr or h    | hour                                                                                                                                             |
| ha         | hectare                                                                                                                                          |
| ICP        | Induction Coupled Plasmaspectrometry                                                                                                             |
| in         | inch                                                                                                                                             |
| J          | joule                                                                                                                                            |
| K          | kilo (thousand)                                                                                                                                  |
| kg         | kilogram                                                                                                                                         |
| km         | kilometre                                                                                                                                        |
| km2        | kilometres squared                                                                                                                               |
| L          | litre                                                                                                                                            |
| lb         | pound                                                                                                                                            |
| m          | metre                                                                                                                                            |
| m2         | metres squared                                                                                                                                   |
| M          | mega (million)                                                                                                                                   |
| mm         | millimetre                                                                                                                                       |
| MW         | megawatt                                                                                                                                         |
| MWh        | megawatt-hour                                                                                                                                    |
| NQ         | diamond drill core measuring 4.76 cm in diameter                                                                                                 |
| opt, oz/st | ounce per short ton                                                                                                                              |
| oz         | Troy ounce/ounce (31.1035g)                                                                                                                      |
| Pb         | Lead                                                                                                                                             |
| PQ         | diamond drill core measuring 8.5 cm in diameter                                                                                                  |
| RC         | reverse circulation                                                                                                                              |
| RL         | relative elevation                                                                                                                               |
| s          | second                                                                                                                                           |
| st         | short ton (one short ton equals 0.907 metric tonnes)                                                                                             |
| stpa       | short ton per year                                                                                                                               |
| stpd       | short ton per day                                                                                                                                |
| t          | metric tonne (one metric tonne equals 1.102 short tons)                                                                                          |
| tpa/tpy    | metric tonne per year                                                                                                                            |
| tpd        | metric tonne per day                                                                                                                             |
| V          | volt                                                                                                                                             |
| W          | watt                                                                                                                                             |
| yd         | yard                                                                                                                                             |
| Zn         | Zinc                                                                                                                                             |

----

| Imperial                  | Converts to | Metric              |
|---------------------------|-------------|---------------------|
| 1 in                      | =           | 2.54 cm             |
| 1 ft (12 in)              | =           | 0.3048 m            |
| 1 yd (3ft)                | =           | 0.9144 m            |
| 1 mile (1760 yd)          | =           | 1.6093 km           |
| 1 square in (in2)         | =           | 6.4516 cm2          |
| 1 square ft (ft2)         | =           | 0.0929 m2           |
| 1 square yd (yd2)         | =           | 0.8361 m2           |
| 1 acre (4840 yd2)         | =           | 4046.9 m2           |
| 1 square mile (640 acres) | =           | 2.59 km2            |
| short ton                 | =           | 0.907 metric tonnes |

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|        | 2013   | 2012   | 2011   |
|-------------|--------|--------|--------|
| High        | 1.0697 | 1.0418 | 1.0604 |
| Low         | 0.9839 | 0.9710 | 0.9449 |
| Average (1) | 1.0299 | 0.9996 | 0.9891 |
| Closing     | 1.0636 | 0.9949 | 1.0170 |

|   |  (1) Calculated as an average of the daily noon rates for each period. |
|--------|-----------------------------------------------------------------------------|

|    | 2013($) | 2012($) | 2011($) |
|---------|---------|---------|---------|
| High    | 1,694   | 1,792   | 1,895   |
| Low     | 1,192   | 1,540   | 1,319   |
| Average | 1,411   | 1,669   | 1,572   |
| Closing | 1,205   | 1,658   | 1,531   |

|    | 2013($) | 2012($) | 2011($) |
|---------|---------|---------|---------|
| High    | 32.23   | 37.23   | 48.70   |
| Low     | 18.61   | 26.67   | 26.16   |
| Average | 23.79   | 31.15   | 35.12   |
| Closing | 19.50   | 29.95   | 28.18   |

----

|    | 2013($) | 2012($) | 2011($) |
|---------|---------|---------|---------|
| High    | 3.74    | 3.93    | 4.60    |
| Low     | 3.01    | 3.30    | 3.05    |
| Average | 3.32    | 3.61    | 4.00    |
| Closing | 3.35    | 3.59    | 3.43    |

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