----

----

----

----

| (Signed) Robert Gallagher | (Signed) Brian Penny         |
|---------------------------|------------------------------|
|                      |                         |
| Robert Gallagher          | Brian Penny                  |
| Chief Executive Officer   | Executive Vice-President and |
|                      | Chief Financial Officer      |

----

----

| · | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (Signed) Robert Gallagher | (Signed) Brian Penny         |
|---------------------------|------------------------------|
|                      |                         |
| Robert Gallagher          | Brian Penny                  |
| Chief Executive Officer   | Executive Vice-President and |
|                      | Chief Financial Officer      |

----

----

----

----

----

----

| FINANCIAL STATEMENTS |                                            | NOTES TO THE FINANCIAL STATEMENTS |
|----------------------|-------------------------------------------------|-----------------------------------|
|                 |                                            |                              |   |   |
| 1                    | CONSOLIDATED INCOME STATEMENTS                  |                              | 6 | 1. DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS |
|                 |                                            |                              |   |   |
| 2                    | CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |                              | 6 | 2. SIGNIFICANT ACCOUNTING POLICIES |
|                 |                                            |                              |   |   |
| 3                    | CONSOLIDATED STATEMENTS OF FINANCIAL POSITION   |                              | 15 | 3. CRITICAL JUDGMENTS AND ESTIMATION UNCERTAINTIES |
|                 |                                            |                              |   |   |
| 4                    | CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY    |                              | 17 | 4. FUTURE CHANGES IN ACCOUNTING POLICIES |
|                 |                                            |                              |   |   |
| 5                    | CONSOLIDATED STATEMENTS OF CASH FLOWS           |                              | 17 | 5. ACQUISITION OF RAINY RIVER RESOURCES |
|                 |                                            |                              |   |   |
|                 |                                            |                              | 19 | 6. EXPENSES |
|                 |                                            |                              |   |   |
|                 |                                            |                              | 21 | 7. TRADE AND OTHER RECEIVABLES |
|                 |                                            |                              |   |   |
|                 |                                            |                              | 21 | 8. TRADE AND OTHER PAYABLES |
|                 |                                            |                              |   |   |
|                 |                                            |                              | 21 | 9. INVENTORIES |
|                 |                                            |                              |   |   |
|                 |                                            |                              | 22 | 10. MINING INTERESTS |
|                 |                                            |                              |   |   |
|                 |                                            |                              | 23 | 11. IMPAIRMENT |
|                 |                                            |                              |   |   |
|                 |                                            |                              | 25 | 12. INVESTMENT IN ASSOCIATE |
|                 |                                            |                              |   |   |
|                 |                                            |                              | 26 | 13. LONG-TERM DEBT |
|                 |                                            |                              |   |   |
|                 |                                            |                              | 28 | 14. DERIVATIVE INSTRUMENTS |
|                 |                                            |                              |   |   |
|                 |                                            |                              | 30 | 15. SHARE CAPITAL |
|                 |                                            |                              |   |   |
|                 |                                            |                              | 34 | 16. INCOME AND MINING TAXES |
|                 |                                            |                              |   |   |
|                 |                                            |                              | 37 | 17. RECLAMATION AND CLOSURE COST OBLIGATIONS |
|                 |                                            |                              |   |   |
|                 |                                            |                              | 38 | 18. SUPPLEMENTAL CASH FLOW INFORMATION |
|                 |                                            |                              |   |   |
|                 |                                            |                              | 39 | 19. SEGMENTED INFORMATION |
|                 |                                            |                              |   |   |
|                 |                                            |                              | 41 | 20. CAPITAL RISK MANAGEMENT |
|                 |                                            |                              |   |   |
|                 |                                            |                              | 41 | 21. FINANCIAL RISK MANAGEMENT |
|                 |                                            |                              |   |   |
|                 |                                            |                              | 45 | 22. FAIR VALUE MEASUREMENT |
|                 |                                            |                              |   |   |
|                 |                                            |                              | 48 | 23. PROVISIONS |
|                 |                                            |                              |   |   |
|                 |                                            |                              | 48 | 24. OPERATING LEASES |
|                 |                                            |                              |   |   |
|                 |                                            |                              | 49 | 25. COMPENSATION OF DIRECTORS AND OTHER KEY MANAGEMENT PERSONNEL |
|                 |                                            |                              |   |   |
|                 |                                            |                              |  49 | 26. COMMITMENTS AND CONTINGENCIES |
|                 |                                            |                              |   |   |

----

| CONSOLIDATED INCOME STATEMENTS                              |   |                                                                                                                        |
|-------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------|
|                                                        |   |  Years ended December 31                                                                                               |
|                                                        |   | $                                                                                                                           | $ |
| (In millions of U.S. dollars, except per share amounts)     | Note   |                  2013                  |                  2012 |
|                                                        |   |                                                                                                                        |   |
|                                                        |   |                                                                                                                        |   |
| Revenues                                                    |   |                779.7                             |                791.3 |
| Operating expenses                                          | 6      |                435.5                             |                344.3 |
| Depreciation and depletion                                  |   |                177.4                             |                116.4 |
| Earnings from mine operations                               |   |                166.8                             |                330.6 |
|                                                        |   |                                                                                                                        |   |
| Corporate administration                                    |   |                   26.7            |                   25.2 |
| Share-based payment expenses                                | 15     |                     8.5 |                   10.9 |
| Asset impairment                                            | 11     |                272.5                             |                       - |
| Exploration and business development                        |   |                   34.1            |                   20.6 |
| (Loss) income from operations                               |   |              (175.0)                                       |                273.9 |
|                                                        |   |                                                                                                                        |   |
| Finance income                                              | 6      |                     2.7 |                     1.4 |
| Finance costs                                               | 6      |                (40.3)                            |                (16.4) |
| Rainy River acquisition costs                               | 5      |                   (5.0)           |                       - |
| Other gains                                                 | 6      |                   26.0            |                   19.9 |
|                                                        |   |                                                                                                                        |   |
| (Loss) earnings before taxes                                |   |              (191.6)                                       |                278.8 |
| Income tax recovery (expense)                               | 16     |                     0.4 |                (79.8) |
|                                                        |   |                                                                                                                        |   |
| Net (loss) earnings                                         |   |              (191.2)                                       |                199.0 |
|                                                        |   |                                                                                                                        |   |
| (Loss) earnings per share                                   |   |                                                                                                                        |   |
| Basic                                                       | 15     |                (0.39)                            |                   0.43 |
| Diluted                                                     | 15     |                (0.39)                            |                   0.42 |
|                                                        |   |                                                                                                                        |   |
| Weighted average number of shares outstanding (in millions) |   |                                                                                                                        |   |
| Basic                                                       | 15     |                488.0                             |                463.4 |
| Diluted                                                     | 15     |                488.0                             |           468.4 |
|                                                        |   |                                                                                                                        |   |

----

| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME                                      |                                |                                                                                                                                  |                                                                                                                                  |
|--------------------------------------------------------------------------------------|-------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                 |   Years ended December 31 |
|                                                                                 |                                | $                                                                                                                                     | $                                                                                                                                     |
| (In millions of U.S. dollars)                                                        | Note                                |                  2013                            |                  2012                            |
|                                                                                 |                                |                                                                                                                                  |                                                                                                                                  |
| Net (loss) earnings                                                                  |                                |              (191.2)                                                 |                199.0                                       |
|                                                                                 |                                |                                                                                                                                  |                                                                                                                                  |
| Other comprehensive (loss) income                                                    |                                |                                                                                                                                  |                                                                                                                                  |
| Unrealized gains (losses) on mark-to-market of gold contracts                        | 14                                  |                   18.1                      |                (23.8)                                      |
| Realized gains on settlement of gold contracts                                       | 14                                  |                   13.8                      |                   47.9                      |
| Reclassification of discontinued gold contracts                                      | 14                                  |                   18.7                      |                       - |
| Unrealized gains (losses) on available-for-sale securities (net of tax)              |                                |                       - |                   (0.8)                     |
| Reclassification of unrealized losses on impairment of available-for-sale securities | 6                                   |                     3.0           |                       - |
| Foreign currency translation adjustment                                              |                                |                       - |                   22.5                      |
| Deferred Income tax related to gold contracts                                        | 14                                  |                (20.7)                                      |                   (9.9)                     |
| Total other comprehensive income                                                     |                                |                   32.9                      |                   35.9                      |
| Total comprehensive (loss) income                                                    |                                |              (158.3)                                                 |                234.9                                       |
|                                                                                 |                                |                                                                                                                                  |                                                                                                                                  |

----

| CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
|-----------------------------------------------|
|                                          |   | As at December 31 |
|                                          |   | $ | $ |
| (In millions of U.S. dollars)                 | Note |                  2013 |                  2012 |
|                                          |   |   |   |
| Assets                                        |   |   |   |
| Current assets                                |   |   |   |
| Cash and cash equivalents                     |   |                414.4 |                687.8 |
| Trade and other receivables                   | 7 |                   19.3 |                   46.9 |
| Inventories                                   | 9 |                182.0 |                163.3 |
| Current income tax receivable                 |   |                   31.8 |                     6.6 |
| Prepaid expenses and other                    |   |                   10.5 |                   12.9 |
| Total current assets                          |   |                658.0 |                917.5 |
|                                          |   |   |   |
| Investments                                   |   |                     0.5 |                     1.0 |
| Non-current inventories                       | 9 |                   31.0 |                   32.4 |
| Mining interests                              | 10 |             3,336.5 |             3,134.9 |
| Deferred tax assets                           | 16 |                171.0 |                194.1 |
| Other                                         |   |                     2.0 |                     3.8 |
| Total assets                                  |   |             4,199.0 |             4,283.7 |
|                                          |   |   |   |
| Liabilities and equity                        |   |   |   |
| Current liabilities                           |   |   |   |
| Trade and other payables                      | 8 |                   90.2 |                120.7 |
| Current derivative liabilities                | 14 |                       - |                   56.4 |
| Total current liabilities                     |   |                   90.2 |                177.1 |
|                                          |   |   |   |
| Reclamation and closure cost obligations      | 17 |                   61.4 |                   68.5 |
| Provisions                                    | 23 |                     9.4 |                     9.5 |
| Non-current derivative liabilities            | 14 |                       - |                   54.1 |
| Non-current non-hedged derivative liabilities | 14 |                   27.8 |                   80.3 |
| Long-term debt                                | 13 |                862.5 |                847.8 |
| Deferred tax liabilities                      | 16 |                381.0 |                322.9 |
| Deferred benefit                              |   |                   46.3 |                   46.3 |
| Other                                         |   |                     0.5 |                     0.7 |
| Total liabilities                             |   |             1,479.1 |             1,607.2 |
|                                          |   |   |   |
| Equity                                        |   |   |   |
| Common shares                                 | 15 |             2,815.3 |             2,618.4 |
| Contributed surplus                           |   |                   90.0 |                   85.2 |
| Other reserves                                |   |                (17.6) |                (50.5) |
| (Deficit) retained earnings                   |   |              (167.8) |                   23.4 |
| Total equity                                  |   |             2,719.9 |             2,676.5 |
| Total liabilities and equity                  |   |             4,199.0 |             4,283.7 |

| "Robert Gallagher"         |   | "James Estey"         |
|----------------------------|--------|-----------------------|
| Robert Gallagher, Director |   | James Estey, Director |

----

| CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY               |
|------------------------------------------------------------|
|                                                       |   |  Years ended December 31 |
|                                                       |   | $ | $ |
| (In millions of U.S. dollars)                              | Note |                  2013 |                  2012 |
|                                                       |   |   |   |
| Common shares                                              |   |   |   |
| Balance, beginning of year                                 |   |             2,618.4 |             2,464.0 |
| Acquisition of Rainy River                                 | 5 |                188.2 |                       - |
| Shares issued for exercise of options                      | 15 |                     8.5 |                   11.6 |
| Shares issued for exercise of warrants                     | 15 |                     0.2 |                   75.5 |
| Shares issued for the conversion of convertible debentures |   |                       - |                   67.3 |
| Balance, end of year                                       |   |             2,815.3 |             2,618.4 |
|                                                       |   |   |   |
| Contributed surplus                                        |   |   |   |
| Balance, beginning of year                                 |   |                   85.2 |                   80.4 |
| Exercise of options                                        |   |                   (3.5) |                   (3.7) |
| Equity settled share-based payments                        |   |                     8.1 |                     8.5 |
| Purchase of non-controlling interest                       | 5 |                     0.2 |                       - |
| Balance, end of year                                       |   |                   90.0 |                   85.2 |
|                                                       |   |   |   |
| Other reserves                                             |   |   |   |
| Balance, beginning of year                                 |   |                (50.5) |                (86.4) |
| Foreign currency translation adjustment                    |   |                       - |                   22.5 |
| Change in fair value of available-for-sale investments     | 6 |                     3.0 |                   (0.8) |
| Change in fair value of hedging instruments (net of tax)   |   |                   29.9 |                   14.2 |
| Balance, end of year                                       |   |                (17.6) |                (50.5) |
|                                                       |   |   |   |
| Retained earnings (deficit)                                |   |   |   |
| Balance, beginning of year                                 |   |                   23.4 |              (175.6) |
| Net (loss) earnings                                        |   |              (191.2) |                199.0 |
| Balance, end of year                                       |   |              (167.8) |                   23.4 |
|                                                       |   |   |   |
| Total equity                                               |   |             2,719.9 |             2,676.5 |
|                                                       |   |   |   |

----

| CONSOLIDATED STATEMENTS OF CASH FLOWS                              |
|--------------------------------------------------------------------|
|                                                               |   |   | Years ended December 31 |
|                                                               |   | $ | $ |
| (In millions of U.S. dollars)                                      | Note |                  2013 |                  2012 |
|                                                               |   |   |   |
| Operating activities                                               |   |   |   |
| Net (loss) earnings                                                |   |              (191.2) |                199.0 |
| Adjustments for:                                                   |   |   |   |
| Realized losses (gains) on gold contracts                          |   |                   15.2 |                   (9.9) |
| Realized and unrealized foreign exchange losses                    | 6 |                   25.7 |                     1.3 |
| Realized and unrealized gains on non-hedged derivatives            | 6 |                (49.3) |                (61.1) |
| Unrealized losses on concentrate contracts                         |   |                     1.2 |                     2.4 |
| Settlement payment of gold hedge contracts                         | 14 |                (65.7) |                       - |
| Payment of Rainy River acquisition expenses                        |   |                (12.9) |                       - |
| Loss on redemption of senior secured notes                         | 6 |                       - |                   31.8 |
| Reclamation and closure costs paid                                 | 17 |                   (2.2) |                   (8.0) |
| Loss on disposal and impairment of assets                          |   |                275.1 |                     3.3 |
| Impairment loss of available-for-sale securities                   | 6 |                     3.0 |                       - |
| Depreciation and depletion                                         |   |                178.6 |                116.2 |
| Equity-settled share-based payment expense                         | 15 |                     8.1 |                     8.5 |
| Realized and unrealized (gains) losses on cash flow hedging items  | 6 |                   (9.5) |                     2.9 |
| Income tax (recovery) expense                                      | 16 |                   (0.4) |                   79.8 |
| Finance income                                                     | 6 |                   (2.7) |                   (1.4) |
| Finance costs                                                      | 6 |                   40.3 |                   16.4 |
|                                                               |   |                213.3 |                381.2 |
| Change in non-cash operating working capital                       | 18 |                   (9.7) |                (44.8) |
| Cash generated from operations                                     |   |                203.6 |                336.4 |
| Income taxes paid                                                  |   |                (31.7) |              (100.6) |
| Net cash generated from operations                                 |   |                171.9 |                235.8 |
|                                                               |   |   |   |
| Investing activities                                               |   |   |   |
| Mining interests                                                   |   |              (289.3) |              (516.0) |
| Proceeds received from government assistance                       |   |                     5.7 |                       - |
| Proceeds received from sale of pre-commercial production inventory |   |                       - |                   14.5 |
| Purchase of additional Blackwater mining claims                    |   |                       - |                   (6.0) |
| Acquisition of Rainy River (net of cash received)                  | 5 |              (112.6) |                       - |
| Recovery of reclamation deposits                                   |   |                       - |                     8.9 |
| Proceeds from sale of assets                                       |   |                     0.4 |                       - |
| Interest received                                                  |   |                     2.1 |                     1.1 |
| Cash used in investing activities                                  |   |              (393.7) |              (497.5) |
|                                                               |   |   |   |
| Financing activities                                               |   |   |   |
| Issuance of common shares on exercise of options and warrants      | 15 |                     5.5 |                   75.4 |
| Redemption of senior secured notes                                 |   |                       - |              (197.6) |
| Proceeds from issuance of senior notes                             |   |                       - |                800.0 |
| Financing initiation costs                                         |   |                   (0.3) |                (17.9) |
| Interest paid                                                      |   |                (52.3) |                (20.0) |
| Cash (used) generated by financing activities                      |   |                (47.1) |                639.9 |
|                                                               |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents       |   |                   (4.5) |                     0.2 |
|                                                               |   |   |   |
| Change in cash and cash equivalents                                |   |              (273.4) |                378.4 |
| Cash and cash equivalents, beginning of the year                   |   |                687.8 |                309.4 |
| Cash and cash equivalents, end of the year                         |   |                414.4 |                687.8 |
|                                                               |   |   |   |
| Cash and cash equivalents are comprised of:                        |   |   |   |
| Cash                                                               |   |                274.4 |                277.5 |
| Short-term money market instruments                                |   |                140.0 |                410.3 |
|                                                               |   |                414.4 |                687.8 |
|                                                               |   |   |   |

----

----

----

| · | Derivative financial instruments; |
|--------|-----------------------------------|

| · | Financial instruments at fair value through profit and loss; and |
|--------|------------------------------------------------------------------|

| · | Available-for-sale securities. |
|--------|--------------------------------|

----

|   Name of Subsidiary/Associate |   Principal activity |  Method of accounting | Country of incorporationand operation | Interest atDecember 312013 | Interest atDecember 312012 |
|------------------------------------------|--------------------------------|----------------------------|---------------------------------------|----------------------------|----------------------------|
| New Gold Canada Inc.                     | Holding company                | Consolidated               | Canada                                | 100%                       | 100%                       |
| Minera Metallica Resources Chile Ltd.    | Mining                         | Consolidated               | Chile                                 | 100%                       | 100%                       |
| Minera San Xavier S.A. de C.V.           | Mining                         | Consolidated               | Mexico                                | 100%                       | 100%                       |
| Peak Gold Mines Pty Ltd                  | Mining                         | Consolidated               | Australia                             | 100%                       | 100%                       |
| Inversiones El Morro Limitada            | Holding company                | Consolidated               | Chile                                 | 100%                       | 100%                       |
| Rainy River Resources Ltd.               | Mining                         | Consolidated               | Canada                                | 100%                       | 0%                         |
| Sociedad Contractual Minera El Morro     | Mining                         | Equity                     | Chile                                 | 30%                        | 30%                        |
| Western Goldfields (USA) Inc.            | Holding company                | Consolidated               | USA                                   | 100%                       | 100%                       |

| · | Has begun planned principal activities; |
|--------|-----------------------------------------|

| · | Has employees, intellectual property and other inputs and processes that could be applied to those inputs; |
|--------|------------------------------------------------------------------------------------------------------------|

| · | Is pursuing a plan to produce outputs; and |
|--------|--------------------------------------------|

| · | Will be able to obtain access to customers that will purchase the outputs. |
|--------|----------------------------------------------------------------------------|

| · | The identifiable assets acquired, liabilities assumed and any non-controlling interest in the acquiree; |
|--------|---------------------------------------------------------------------------------------------------------|

| · | The consideration transferred in exchange for interest in the acquiree; |
|--------|-------------------------------------------------------------------------|

| · | In a business combination achieved in stages, the equity interest in the acquiree previously held by the acquirer; and |
|--------|------------------------------------------------------------------------------------------------------------------------|

| · | The resulting goodwill or gain on a bargain purchase. |
|--------|-------------------------------------------------------|

----

----

| · | The Company controls access to the benefit; |
|--------|---------------------------------------------|

| · | Internal project economics are beneficial to the Company; |
|--------|-----------------------------------------------------------|

| · | The project is technically feasible; and |
|--------|------------------------------------------|

| · | Costs can be reliably measured. |
|--------|---------------------------------|

|                |          | Estimated useful life |
|---------------------|---------------|-----------------------|
| Building            | 15 – 17 |
| Plant and machinery | 3 – 17  |
| Office equipment    | 5 – 10  |
| Vehicles            | 5 – 7   |
| Computer equipment  | 3 - 5         |

| · | All major capital expenditures to bring the mine to the condition necessary for it to be capable of operating in the manner intended by management have been completed; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The completion of a reasonable period of testing of the mine plant and equipment; |
|--------|-----------------------------------------------------------------------------------|

----

| · | The mine or mill has reached a pre-determined percentage of design capacity; and |
|--------|----------------------------------------------------------------------------------|

| · | The ability to sustain ongoing production of ore. |
|--------|---------------------------------------------------|

----

| · | The main influences of sales prices for goods and the country whose competitive forces and regulations mainly determine the sales price; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|

| · | The currency that mainly influences labour, material and other costs of providing goods; |
|--------|------------------------------------------------------------------------------------------|

| · | The currency in which funds from financing activities are generated; and |
|--------|--------------------------------------------------------------------------|

| · | The currency in which receipts from operating activities are usually retained. |
|--------|--------------------------------------------------------------------------------|

----

| · | Mining interest and equity method investments using historical exchange rates; |
|--------|--------------------------------------------------------------------------------|

| · | Financial instruments measured at fair value through profit and loss using the closing exchange rate as at the balance sheet date with translation gains and losses recorded in net earnings; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Available-for-sale securities using the closing exchange rate as at the balance sheet date with translation gains and losses recorded in other comprehensive income; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Deferred tax assets and liabilities using the closing exchange rate as at the balance sheet date with translation gains and losses recorded in net earnings; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Other assets and liabilities using the closing exchange rate as at the balance sheet date with translation gains and losses recorded in net earnings; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Income and expenses using the average exchange rate for the period, except for expenses that relate to non-monetary assets and liabilities measured at historical rates, which are translated using the same historical rate as the associated non-monetary assets and liabilities. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Company has transferred to the buyer the significant risks and rewards of ownership; |
|--------|------------------------------------------------------------------------------------------|

| · | The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The amount of revenue can be measured reliably; |
|--------|-------------------------------------------------|

| · | It is probable that the economic benefits associated with the transaction will flow to the entity; and |
|--------|--------------------------------------------------------------------------------------------------------|

| · | The costs incurred or to be incurred in respect of the transaction can be measured reliably |
|--------|---------------------------------------------------------------------------------------------|

| · | Fair value through profit or loss (“FVTPL”) includes: financial assets held for trading; derivatives, unless accounted for as hedges, and other financial assets designated to this category under the fair value option; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Held-to-maturity: non-derivative financial assets with fixed or determinable payments and fixed maturity that the Company has the positive intent and ability to hold to maturity; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Loans and receivables: non-derivative financial assets with fixed or determinable payments that are not quoted in an active market; and |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

| · | Available-for-sale (“AFS”): includes all financial assets that are not classified in another category and any financial asset designated to this category on initial recognition. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| · | All major capital expenditures to bring the mine to the condition necessary for it to be capable of operating in the manner intended by management have been completed; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The completion of a reasonable period of testing of the mine plant and equipment; |
|--------|-----------------------------------------------------------------------------------|

| · | The mine or mill has reached a pre-determined percentage of design capacity; and |
|--------|----------------------------------------------------------------------------------|

| · | The ability to sustain ongoing production of ore. |
|--------|---------------------------------------------------|

----

----

----

----

----

|                                                                  | Purchase cost |
|-----------------------------------------------------------------------|---------------|
|                                                                  | $             |
|                                                                  |          |
| Cash paid to Rainy River shareholders                                 |  192.3   |
| Value of New Gold shares and issuable for Rainy River warrants issued |  188.2   |
| Total acquisition cost                                                |  380.5   |
| Cash acquired with Rainy River                                        |  79.7    |
| Net Consideration                                                     |  300.8   |

|                                     | Summary of purchase price allocation |
|------------------------------------------|--------------------------------------|
|                                     | $                                    |
| Assets                                   |                                 |
| Current assets (including cash of $79.7) |  80.0                           |
| Other assets                             |  0.1                            |
| Property, plant and equipment            |  1.3                            |
| Rainy River project mining interest      |  352.2                          |
| Total assets                             |  433.6                          |
|                                     |                                 |
| Liabilities                              |                                 |
| Current liabilities                      |  17.4                           |
| Deferred income tax liabilities          |  35.9                           |
| Total liabilities                        |  53.3                           |
|                                     |                                 |
| Equity                                   |                                 |
| Contributed surplus                      |  (0.2)                          |
| Net assets                               |  380.5                          |

----

----

|                                       | $            |   | $            |
|--------------------------------------------|--------------|--------|--------------|
|                                       | 2013         |   | 2012         |
|                                       |         |   |         |
| Raw materials and consumables              |  168.4  |   |  145.9  |
| Salaries and employee benefits             |  120.7  |   |  105.2  |
| Redundancy charges                         |  2.4    |   |  -      |
| Repairs and maintenance                    |  30.1   |   |  25.5   |
| Contractors                                |  53.1   |   |  35.2   |
| Royalties                                  |  13.8   |   |  18.2   |
| Change in inventories and work-in-progress |  (15.5) |   |  (34.0) |
| Inventory write-down (Note 9)              |  6.5    |   |  -      |
| Operating leases                           |  23.5   |   |  31.7   |
| General and administrative                 |  30.3   |   |  14.6   |
| Other                                      |  2.2    |   |  2.0    |
|                                       |  435.5  |   |  344.3  |

|                                                    | $            |   | $            |
|---------------------------------------------------------|--------------|--------|--------------|
|                                                    | 2013         |   | 2012         |
| Finance costs                                           |         |   |         |
| Interest on senior unsecured notes                      |  53.7   |   |  20.1   |
| Interest on senior secured notes                        |  -      |   |  7.0    |
| Interest on convertible debentures                      |  -      |   |  5.0    |
| Other interest                                          |  3.3    |   |  2.1    |
| Unwinding of the discount on decommisioning obligations |  1.5    |   |  1.3    |
| Other finance costs                                     |  3.5    |   |  4.7    |
|                                                    |  62.0   |   |  40.2   |
| Less: amounts included in cost of qualifying assets     |  (21.7) |   |  (23.8) |
|                                                    |  40.3   |   |  16.4   |
|                                                    |         |   |         |
|                                                    | $            |   | $            |
|                                                    | 2013         |   | 2012         |
| Finance income                                          |         |   |         |
| Interest income                                         |  2.7    |   | 1.4          |

|                                                    |   | $            |   | $            |
|---------------------------------------------------------|--------|--------------|--------|--------------|
|                                                    |   | 2013         |   | 2012         |
|                                                    |   |         |   |         |
| Impairment of AFS securities                            | i      |  (3.0)  |   |  -      |
| Ineffectiveness of hedging instruments                  | ii     |  9.5    |   |  (2.9)  |
| Realized and unrealized gains on non-hedged derivatives | iii    |  49.3   |   |  61.1   |
| Loss on redemption of senior secured notes              | iv     |  -      |   |  (31.8) |
| Gain (loss) on foreign exchange                         |   |  (25.7) |   |  (1.3)  |
| Loss on disposal of assets                              |   |  (2.6)  |   |  (3.3)  |
| Other                                                   |   |  (1.5)  |   |  (1.9)  |
|                                                    |   |  26.0   |   |  19.9   |

----

|                                                              | $          |   | $           |
|-------------------------------------------------------------------|------------|--------|-------------|
|                                                              | 2013       |   | 2012        |
|                                                              |       |   |        |
| Unrealized and realized gains (losses) on share purchase warrants |  49.3 |   |  58.6  |
| Unrealized losses on embedded derivative in senior secured notes  |  -    |   |  (3.7) |
| Unrealized losses on equity conversion option on debentures       |  -    |   |  6.2   |
|                                                              |  49.3 |   |  61.1  |

|                      | $           |   | $          |
|---------------------------|-------------|--------|------------|
|                      | 2013        |   | 2012       |
|                      |        |   |       |
| New Gold Series C         |  -     |   |  43.3 |
| New Gold Series B         |  -     |   |  3.3  |
| Silver Quest Warrants - B |  0.1   |   |  -    |
| Silver Quest Warrants - C |  -     |   |  -    |
| Silver Quest Warrants - D |  -     |   |  -    |
|                      |  0.1   |   |  46.6 |
| New Gold Series A         |  49.3  |   |  11.0 |
| Silver Quest Warrants - B |  -     |   |  0.3  |
| Silver Quest Warrants - C |  -     |   |  0.4  |
| Silver Quest Warrants - D |  -     |   |  0.3  |
| Rainy River Warrants      |  (0.1) |   |  -    |
|                      |  49.2  |   |  12.0 |
|                      |  49.3  |   |  58.6 |

----

----

|                                                     |  Years ended December 31 |
|----------------------------------------------------------|-------------------------------|
|                                                     | $                             |   | $ |
|                                                     | 2013                          |   | 2012 |
| Trade receivables                                        |  10.0                    |   |  12.2 |
| Sales tax receivable                                     |  9.9                     |   |  33.9 |
| Unsettled provisionally priced and copper swap contracts |  (1.2)                   |   |  (2.0) |
| Other                                                    |  0.6                     |   |  2.8 |
|                                                     |  19.3                    |   |  46.9 |

----

|                                                     |  Years ended December 31 |
|----------------------------------------------------------|-------------------------------|
|                                                     | $                             |   | $ |
|                                                     | 2013                          |   | 2012 |
| Trade payables                                           |  30.5                    |   |  34.3 |
| Interest payable                                         |  8.4                     |   |  8.4 |
| Accruals                                                 |  49.7                    |   |  74.7 |
| Current portion of decommissioning obligations (Note 17) |  1.6                     |   |  3.3 |
|                                                     |  90.2                    |   |  120.7 |

----

|                          | Years ended December 31 |
|-------------------------------|-------------------------|
|                          | $                       |   | $ |
|                          | 2013                    |   | 2012 |
| Heap leach ore                |  146.2             |   |  129.5 |
| Work-in-process               |  8.9               |   |  18.1 |
| Finished goods                |  14.5              |   |  13.9 |
| Stockpile ore                 |  2.5               |   |  0.3 |
| Supplies                      |  40.9              |   |  33.9 |
|                          |  213.0             |   |  195.7 |
| Less: non-current inventories |  (31.0)            |   |  (32.4) |
|                          |  182.0             |   |  163.3 |

----

----

|                                |   | $             |   | $             |   | $            |   | $             |   | $                |   | $             |
|-------------------------------------|--------|---------------|--------|---------------|--------|--------------|--------|---------------|--------|------------------|--------|---------------|
|                                |   |          |   | Non           |   | Plant &  |   | Construction  |   | Exploration      |   |          |
|                                |   | Depletable    |   | depletable    |   | equipment    |   | in progress   |   | & evaluation |   | Total         |
|                                |   |          |   |          |   |         |   |          |   |             |   |          |
| Cost                                |   |          |   |          |   |         |   |          |   |             |   |          |
| As at December 31, 2011             |   |  674.1   |   |  1,722.1 |   |  554.9  |   |  31.0    |   |  9.7        |   |  2,991.8 |
| Additions                           |   |  23.4    |   |  326.8   |   |  114.9  |   |  135.5   |   |  -          |   |  600.6   |
| Disposals                           |   |  (0.1)   |   |  -       |   |  (15.8) |   |  -       |   |  -          |   |  (15.9)  |
| Transfers                           |   |  791.7   |   |  (742.8) |   |  35.9   |   |  (111.8) |   |  -          |   |  (27.0)  |
| Pre-commerical production revenue   |   |  -       |   |  (14.5)  |   |  -      |   |  -       |   |  -          |   |  (14.5)  |
| Foreign exchange translation        |   |  10.6    |   |  7.4     |   |  3.3    |   |  -       |   |  -          |   |  21.3    |
| As at December 31, 2012             |   |  1,499.7 |   |  1,299.0 |   |  693.2  |   |  54.7    |   |  9.7        |   |  3,556.3 |
| Additions                           |   |  66.6    |   |  113.9   |   |  31.3   |   |  120.4   |   |  -          |   |  332.2   |
| Acquisition of Rainy River (Note 5) |   |  -       |   |  352.2   |   |  1.3    |   |  -       |   |  -          |   |  353.5   |
| Disposals                           |   |  -       |   |  -       |   |  (9.3)  |   |  -       |   |  -          |   |  (9.3)   |
| Impairments (Note 11)               |   |  (338.1) |   |  (70.7)  |   |  (6.3)  |   |          |   |             |   |  (415.1) |
| Government grant received           |   |  -       |   |  (5.7)   |   |  -      |   |  -       |   |  -          |   |  (5.7)   |
| Transfers                           |   |  121.9   |   |  (26.9)  |   |  54.4   |   |  (149.4) |   |  -          |   |  -       |
| As at December 31, 2013             |   |  1,350.1 |   |  1,661.8 |   |  764.6  |   |  25.7    |   |  9.7        |   |  3,811.9 |
|                                |   |          |   |          |   |         |   |          |   |             |   |          |
| Accumulated depreciation            |   |          |   |          |   |         |   |          |   |             |   |          |
| As at December 31, 2011             |   |  176.5   |   |  -       |   |  120.0  |   |  -       |   |  -          |   |  296.5   |
| Depreciation for the period         |   |  78.1    |   |  -       |   |  58.8   |   |  -       |   |  -          |   |  136.9   |
| Disposals                           |   |  -       |   |  -       |   |  (12.5) |   |  -       |   |  -          |   |  (12.5)  |
| Foreign exchange translation        |   |  -       |   |  -       |   |  0.5    |   |  -       |   |  -          |   |  0.5     |
| As at December 31, 2012             |   |  254.6   |   |  -       |   |  166.8  |   |  -       |   |  -          |   |  421.4   |
| Depreciation for the period         |   |  134.2   |   |  -       |   |  68.7   |   |  -       |   |  -          |   |  202.9   |
| Disposals                           |   |  -       |   |  -       |   |  (6.3)  |   |  -       |   |  -          |   |  (6.3)   |
| Impairments (Note 11)               |   |  (139.8) |   |  -       |   |  (2.8)  |   |  -       |   |  -          |   |  (142.6) |
| As at December 31, 2013             |   |  249.0   |   |  -       |   |  226.4  |   |  -       |   |  -          |   |  475.4   |
|                                |   |          |   |          |   |         |   |          |   |             |   |          |
| Carrying amount                     |   |          |   |          |   |         |   |          |   |             |   |          |
| As at December 31, 2012             |   |  1,245.1 |   |  1,299.0 |   |  526.4  |   |  54.7    |   |  9.7        |   |  3,134.9 |
| As at December 31, 2013             |   |  1,101.1 |   |  1,661.8 |   |  538.2  |   |  25.7    |   |  9.7        |   |  3,336.5 |

----

|                 | $             |   | $             |   | $           |   | $            |   | $             |
|----------------------|---------------|--------|---------------|--------|-------------|--------|--------------|--------|---------------|
|                 |          |   | Non           |   | Plant & |   | Construction |   |          |
|                 | Depletable    |   | depletable    |   | equipment   |   | in Progress  |   | Total         |
|                 |          |   |          |   |        |   |         |   |          |
| New Afton Mine       |  783.1   |   |  -       |   |  300.3 |   |  3.7    |   |  1,087.1 |
| Mesquite Mine        |  166.3   |   |  26.2    |   |  86.3  |   |  1.1    |   |  279.9   |
| Peak Mines           |  121.4   |   |  27.4    |   |  84.5  |   |  17.0   |   |  250.3   |
| Cerro San Pedro Mine |  30.3    |   |  -       |   |  9.6   |   |  3.9    |   |  43.8    |
| Rainy River project  |  -       |   |  377.0   |   |  1.2   |   |  -      |   |  378.2   |
| Blackwater project   |  -       |   |  798.1   |   |  47.8  |   |  -      |   |  845.9   |
| El Morro project     |  -       |   |  433.1   |   |  -     |   |  -      |   |  433.1   |
| Other                |  -       |   |  9.7     |   |  8.5   |   |  -      |   |  18.2    |
|                 |  1,101.1 |   |  1,671.5 |   |  538.2 |   |  25.7   |   |  3,336.5 |

| 1. | Other includes corporate balances and exploration properties. |
|----|---------------------------------------------------------------|

|                 | $             |   | $             |   | $           |   | $            |   | $             |
|----------------------|---------------|--------|---------------|--------|-------------|--------|--------------|--------|---------------|
|                 |          |   | Non           |   | Plant & |   | Construction |   |          |
|                 | Depletable    |   | depletable    |   | equipment   |   | in Progress  |   | Total         |
|                 |          |   |          |   |        |   |         |   |          |
| New Afton Mine       |  753.4   |   |  -       |   |  302.9 |   |  9.6    |   |  1,065.9 |
| Mesquite Mine        |  169.9   |   |  30.6    |   |  91.1  |   |  1.1    |   |  292.7   |
| Peak Mines           |  103.4   |   |  49.0    |   |  87.6  |   |  10.2   |   |  250.2   |
| Cerro San Pedro Mine |  218.4   |   |  70.7    |   |  11.1  |   |  9.6    |   |  309.8   |
| Blackwater project   |  -       |   |  725.5   |   |  23.5  |   |  24.2   |   |  773.2   |
| El Morro project     |  -       |   |  423.2   |   |  -     |   |  -      |   |  423.2   |
| Other                |  -       |   |  9.7     |   |  10.2  |   |  -      |   |  19.9    |
|                 |  1,245.1 |   |  1,308.7 |   |  526.4 |   |  54.7   |   |  3,134.9 |

| 1. | Other includes corporate balances and exploration properties. |
|----|---------------------------------------------------------------|

----

----

|                                            | $               | $           | $            |
|-------------------------------------------------|-----------------|-------------|--------------|
|                                            | Cerro San Pedro | Peak Mines  | Total        |
| Within income from operations:                  |            |        |         |
| Cerro San Pedro plant & equipment           | 3.5             | -           | 3.5          |
| Cerro San Pedro depletable mining interest      |  191.9     |  -     |  191.9  |
| Cerro San Pedro non-depletable mining interest  |  70.7      |  -     |  70.7   |
| Peak Mines depletable mining interest (Note 10) |  -         |  6.4   |  6.4    |
| Total before tax                                |  266.1     |  6.4   |  272.5  |
| Tax recovery                                    |  (64.2)    |  (2.0) |  (66.2) |
| Total after tax                                 |  201.9     |  4.4   |  206.3  |

----

|                      | $           |      | $           |
|---------------------------|-------------|-----------|-------------|
|  2014 - 2018 Average |        | Long term |
| Gold (per ounce)          |  1,350 |      |  1,300 |
| Silver (per ounce)        |  22.50 |      |  22.00 |
| Copper (per pound)        |  3.16  |      |  3.00  |
| Exchange rates:           |        |      |        |
| CAD:USD                   |  0.92  |      |  0.91  |
| AUD:USD                   |  0.87  |      |  0.88  |
| MSX:USD                   |  12.33 |      |  12.62 |

|                                |   | $          |
|-------------------------------------|--------|------------|
|                                |   |       |
| $100 per ounce change in gold price |   |  15.8 |
| 0.5% change in discount rate        |   |  1.0  |
| 5% change in exchange rate          |   |  7.3  |
| 5% change in operating costs        |   |  12.3 |
|                                |   |       |

----

----

|                                                              | $                                                                                                                                             |   | $            |
|-------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|
|                                                              | 2013                                                                                                                                          |   | 2012         |
| Current assets                                                    |                        1.2 |   |  1.6    |
| Non-current assets                                                |                   271.5                             |   |  247.4  |
| Current liabilities                                               |                   (14.7)                            |   |  (22.0) |
| Equity                                                            |                   258.0                             |   |  227.0  |
| Portion of the Company's ownership                                | 30%                                                                                                                                           |   | 30%          |
| The Company's share of net assets in Associate                    |                      77.4            |   |  68.1   |
| Initial purchase price allocation and other consolidation entries |                   355.7                             |   |  355.1  |
| Carrying amount of the investment                                 |                   433.1                             |   |  423.2  |

----

|                                           |   | $           |   | $           |
|------------------------------------------------|--------|-------------|--------|-------------|
|                                           |   | 2013        |   | 2012        |
| Senior unsecured notes - due April 15, 2020    | a      |  293.3 |   |  292.5 |
| Senior unsecured notes - due November 15, 2022 | b      |  490.8 |   |  490.1 |
| El Morro project funding loan                  | c      |  78.4  |   |  65.2  |
| Revolving credit facility                      | d      |  -     |   |  -     |
|                                           |   |  862.5 |   |  847.8 |

| · | At any time prior to April 15, 2016 at a redemption price of 100% of the aggregate principal amount of the notes, plus a make-whole premium, plus accrued and unpaid interest, if any, to the redemption date. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | During the 12 month period beginning on April 15 of the years indicated at the redemptions prices below, expressed as a percentage of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to the redemption date. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2016      | 103.50% |
|---------------------|---------|
| 2017           | 101.75% |
| 2018 and thereafter | 100.00% |

----

| · | At any time prior to November 15, 2017 at a redemption price of 100% of the aggregate principal amount of the notes, plus a make-whole premium, plus accrued and unpaid interest, if any, to the redemption date. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | During the 12 month period beginning on November 15 of the years indicated at the redemptions prices below, expressed as a percentage of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to the redemption date. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2017                                                                                                                                                                                                   | 103.13% |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
| 2018                                                                                                                                                                                                   | 102.08% |
| 2019                                   | 101.04% |
| 2020 and thereafter                                                                                                                        | 100.00% |

|                                                                              |               |         |   |          |
|-----------------------------------------------------------------------------------|--------------------|--------------|--------|---------------|
|                                                                              | Financial covenant | 2013         |   | 2012          |
|                                                                              |               |         |   |          |
| Minimum tangible net worth ($1.38 billion + 25% of positive quarterly net income) | >$1.51 billion  | $3.1 billion |   | $3.05 billion |
| Minimum interest coverage ratio (EBITDA to interest)                              | >4.0:1.0        | 5.7 : 1      |   | 13.2 : 1      |
| Maximum leverage ratio (net debt to EBITDA)1                                      | <3.0:1.0        | 1.3 : 1      |   | 2.0 : 1       |

----

----

|                                 |   | $       |   | $            |
|--------------------------------------|--------|---------|--------|--------------|
|                                 |   | 2013    |   | 2012         |
|                                 |   |    |   |         |
| Gold contracts                       |   |  - |   |  110.5  |
| Less: current derivative liabilities |   |  - |   |  (56.4) |
| Non-current derivative liabilities   |   |  - |   |  54.1   |

|       | $           | $           | $            | $           | $           | $           |
|------------|-------------|-------------|--------------|-------------|-------------|-------------|
|       | Gold        | Copper      | 2013Total    | Gold        | Copper      | 2012Total   |
| Realized   |  (7.4) |  (8.6) |  (16.0) |  (0.3) |  0.1   |  (0.2) |
| Unrealized |  (1.5) |  2.8   |  1.3    |  (1.0) |  (0.3) |  (1.3) |
|       |  (8.9) |  (5.8) |  (14.7) |  (1.3) |  (0.2) |  (1.5) |

|       | $           | $           |
|------------|-------------|-------------|
|       | 2013        | 2012        |
| Realized   |  4.3   |  (0.2) |
| Unrealized |  (2.5) |  (0.7) |
|       |  1.8   |  (0.9) |

|                                        | $          | $           |
|---------------------------------------------|------------|-------------|
|                                        | 2013       | 2012        |
| Share purchase warrants                     |  49.3 |  58.6  |
| Prepayment option on senior secured notes   |  -    |  (3.7) |
| Conversion option on convertible debentures |  -    |  6.2   |
|                                        |  49.3 |  61.1  |

|                                                             | $            | $            |
|------------------------------------------------------------------|--------------|--------------|
|                                                             | 2013         | 2012         |
| Effective portion of change in fair value of hedging instruments |         |         |
| Gold hedging contracts - unrealized                              |  18.1   |  (23.8) |
| Gold hedging contracts - realized                                |  32.5   |  47.9   |
| Deferred income tax                                              |  (20.7) |  (9.9)  |
|                                                             |  29.9   |  14.2   |

----

|   Warrant Series |  Number of warrants |  Commonshares issuable |   Exercise price |   Expiry date |
|----------------------------|-------------------------------|-----------------------------|----------------------------|-------------------------|
|                       | (000s)                        | (000s)                      | C$                         |                    |
|                       |                          |                        |                       |                    |
| At December 31, 2013       |                          |                        |                       |                    |
| New Gold Series A          | 27,850                        | 27,850                      | 15.00                      | June 28, 2017           |
| Rainy River Warrants       | 50                            | 50                          | 20.00                      | February 2, 2017        |
|                       | 27,900                        | 27,900                      |                       |                    |
|                       |                          |                        |                       |                    |
| At December 31, 2012       |                          |                        |                       |                    |
| New Gold Series A          | 27,850                        | 27,850                      | 15.00                      | June 28, 2017           |
| Silver Quest Warrants - B  | 122                           | 122                         | 10.22                      | January 19, 2013        |
| Silver Quest Warrants - C  | 148                           | 148                         | 11.56                      | January 20, 2013        |
| Silver Quest Warrants - D  | 126                           | 126                         | 11.56                      | January 29, 2013        |
|                       | 28,246                        | 28,246                      |                       |                    |

----

|                    | $          | $          |
|-------------------------|------------|------------|
|                    | 2013       | 2012       |
| Share purchase warrants |  27.8 |  80.3 |

----

|                        |   | Number        |          |
|-----------------------------|--------|---------------|---------------|
|                        |   | of shares     |          |
|                        |   | (000s)        | $             |
|                        |   |          |          |
| Balance - December 31, 2011 |   |  461,358 |  2,464.0 |
| Exercise of options         |   |  1,339   |  11.6    |
| Exercise of warrants        |   |  7,434   |  75.5    |
| Conversion of debentures    |   |  5,872   |  67.3    |
| Balance - December 31, 2012 |   |  476,003 |  2,618.4 |
| Exercise of options         | i      |  1,521   |  8.5     |
| Exercise of warrants        | ii     |  39      |  0.2     |
| Acquisition of Rainy River  | iii    |  25,874  |  188.2   |
| Balance - December 31, 2013 |   |  503,437 |  2,815.3 |

|                              |   | $           | $          |
|-----------------------------------|--------|-------------|------------|
|                              |   | 2013        | 2012       |
| Stock option expense              | i      |  8.1   |  8.5  |
| Performance share unit expense    | ii     |  0.8   |  -    |
| Restricted share unit expense     | iii    |  (0.3) |  1.9  |
| Deferred share award unit expense | iv     |  (0.1) |  0.5  |
|                              |   |  8.5   |  10.9 |

----

|                        | Numberof option | Weighted avg.exercise price |
|-----------------------------|-----------------|-----------------------------|
|                        | (000s)          | C$                          |
| Balance - December 31, 2011 |  10,280.   | 4.83                        |
| Granted                     | 2,160.          | 11.46                       |
| Exercised                   | (1,339)         | 5.92                        |
| Forfeited                   | (56)            | 6.62                        |
| Expired                     | (106)           | 7.98                        |
| Balance - December 31, 2012 |  10,939.   | 5.96                        |
| Granted                     |  1,689.    | 9.46                        |
| Exercised                   |  (1,521)   | 3.40                        |
| Forfeited                   |  (198)     | 10.41                       |
| Expired                     |  (595)     | 7.89                        |
| Balance - December 31, 2013 |  10,314.   | 6.72                        |

|                     |      |      |
|--------------------------|-----------|-----------|
|                     | 2013      | 2012      |
|                     |      |      |
| Grant price              | C$10.01   | C$11.61   |
| Expected dividend yield  | 0.0%      | 0.0%      |
| Expected volatility      | 60.0%     | 60.0%     |
| Risk-free interest rate  | 0.61%     | 0.70%     |
| Expected life of options | 3.7 years | 3.7 years |

----

|               |         | Options outstanding |           |  Options exercisable |
|--------------------|--------------|---------------------|----------------|---------------------------|
|               | Weighted avg |                |           | Weighted avg              |   |   |
|               | remaining    | Number of           |           | remaining                 | Number of |   |
|               | contractual  | options             | Weighted avg   | contractual               | options | Weighted avg |
|               | life         | outstanding         | exercise price | life                      | exercisable | exercise price |
| Exercise Prices C$ | (years)      | (000s)              | C$             | (years)                   | (000s) | C$ |
| 0.74 - 0.99        |  1.5    |  150.0         |  0.80     |  1.5                 |  150.0 |  0.80 |
| 1.00 - 1.99        |  -      |  -             |  -        |  -                   |  - |  - |
| 2.00 - 2.99        |  2.1    |  638.4         |  2.64     |  2.1                 |  638.4 |  2.64 |
| 3.00 - 3.99        |  2.2    |  2,930.0       |  3.22     |  2.2                 |  2,930.0 |  3.22 |
| 4.00 - 4.99        |  2.9    |  1,058.0       |  4.39     |  2.9                 |  1,058.0 |  4.39 |
| 5.00 - 5.99        |  1.9    |  216.3         |  5.88     |  1.9                 |  216.3 |  5.88 |
| 6.00 - 6.99        |  4.5    |  100.0         |  6.46     |  -                   |  - |  - |
| 7.00 - 7.99        |  4.1    |  1,543.8       |  7.65     |  4.0                 |  880.3 |  7.67 |
| 8.00 - 8.99        |  3.6    |  273.0         |  8.70     |  3.8                 |  191.0 |  8.78 |
| 9.00 - 9.99        |  2.4    |  93.5          |  9.59     |  2.4                 |  62.3 |  9.59 |
| 10.00 - 10.99      |  4.0    |  1,638.1       |  10.08    |  3.7                 |  126.8 |  10.35 |
| 11.00 - 11.99      |  3.1    |  1,597.3       |  11.87    |  3.1                 |  542.0 |  11.87 |
| 12.00 - 12.22      |  2.9    |  75.0          |  12.22    |  2.9                 |  50.0 |  12.22 |
|               |  3.0    |  10,313.4      |  6.72     |  2.6                 |  6,845.1 |  5.05 |

----

|                        | Numberof units |
|-----------------------------|----------------|
|                        | (000s)         |
| Balance - December 31, 2011 | 1,028.         |
| Granted                     |  437.     |
| Settled                     | (692)          |
| Forfeited                   | (163)          |
| Balance - December 31, 2012 | 610.           |
| Granted                     |  575.     |
| Settled                     | (606)          |
| Forfeited                   | (82)           |
| Balance - December 31, 2013 | 497.           |

|                        | Numberof units |
|-----------------------------|----------------|
|                        | (000s)         |
|                        | (000s)         |
| Balance - December 31, 2011 | 47.            |
| Granted                     |  45.      |
| Exercised                   | (13)           |
| Balance - December 31, 2012 | 79.            |
| Granted                     |  68.      |
| Exercised                   | --             |
| Balance - December 31, 2013 | 147.           |

----

|                                                  | $             |   | $           |
|-------------------------------------------------------|---------------|--------|-------------|
|                                                  | 2013          |   | 2012        |
|                                                  |          |   |        |
| Net (loss) earnings                                   |  (191.2) |   |  199.0 |
|                                                  |          |   |        |
| Basic weighted average number of shares outstanding   |  488.0   |   |  463.4 |
| (in millions)                                         |          |   |        |
|                                                  |          |   |        |
| Dilution of securities                                |          |   |        |
| Stock options                                         |  -       |   |  5.0   |
| Diluted weighted average number of shares outstanding |  488.0   |   |  468.4 |
|                                                  |          |   |        |
| Net (loss) earnings per share                         |          |   |        |
| Basic                                                 |  (0.39)  |   |  0.43  |
| Diluted                                               |  (0.39)  |   |  0.42  |

|          | (000s)       |   | (000s)       |
|---------------|--------------|--------|--------------|
|          | 2013         |   | 2012         |
|          |         |   |         |
| Stock options |  10,314 |   |  1,776  |
| Warrants      |  27,900 |   |  28,124 |

----

|                                              | $            |   | $           |
|---------------------------------------------------|--------------|--------|-------------|
|                                              | 2013         |   | 2012        |
| Current income and mining tax expense (recovery)  |         |   |        |
| Canada                                            |  2.0    |   |  2.7   |
| United States                                     |  (2.1)  |   |  10.9  |
| Australia                                         |  (5.9)  |   |  5.7   |
| Mexico                                            |  11.9   |   |  57.1  |
| Other                                             |  (0.2)  |   |  (5.2) |
|                                              |  5.7    |   |  71.2  |
|                                              |         |   |        |
| Deferred income and mining tax expense (recovery) |         |   |        |
| Canada                                            |  17.9   |   |  (1.8) |
| United States                                     |  25.0   |   |  3.7   |
| Australia                                         |  10.0   |   |  6.9   |
| Mexico                                            |  (58.7) |   |  (9.4) |
| Other                                             |  (0.3)  |   |  9.2   |
|                                              |  (6.1)  |   |  8.6   |
|                                              |         |   |        |
| Income tax (recovery) expense                     |  (0.4)  |   |  79.8  |

----

|                                                              | $             |   | $            |
|-------------------------------------------------------------------|---------------|--------|--------------|
|                                                              | 2013          |   | 2012         |
|                                                              |          |   |         |
| Earnings before taxes                                             |  (191.6) |   |  278.8  |
|                                                              |          |   |         |
| Canadian federal and provincial income tax rates                  | 25.8%         |   | 25.1%        |
|                                                              |          |   |         |
| Income tax expense based on above rates                           |  (49.4)  |   |  70.0   |
| Increase (decrease) due to:                                       |          |   |         |
| Non-taxable income                                                |  (3.3)   |   |  (29.2) |
| Non-deductible expenditures                                       |  12.5    |   |  9.2    |
| Different statutory tax rates on earnings of foreign subsidiaries |  (5.9)   |   |  20.1   |
| Foreign exchange on non-monetary assets and liabilities           |  4.0     |   |  3.5    |
| Other foreign exchange differences                                |  10.7    |   |  (2.6)  |
| Adjustment of prior year provision to statutory tax returns       |  4.9     |   |  8.0    |
| Canadian mining tax                                               |  4.2     |   |  (7.1)  |
| Mexican special duty tax                                          |  3.0     |   |  -      |
| Uncertain tax position                                            |  1.2     |   |  (5.0)  |
| Withholding tax                                                   |  0.7     |   |  2.0    |
| Benefit of losses not recognized in the year                      |  18.2    |   |  0.2    |
| Rate change in the year                                           |  0.2     |   |  9.4    |
| Other                                                             |  (1.4)   |   |  1.3    |
| Income tax (recovery) expense                                     |  (0.4)   |   |  79.8   |

----

|                                            | $             | $             | $            | $           | $            | $           | $             |
|-------------------------------------------------|---------------|---------------|--------------|-------------|--------------|-------------|---------------|
|                                            | Canada        | USA           | Australia    | Mexico      | Chile        | Other       | Total         |
| Deferred tax assets                             |          |          |         |        |         |        |          |
| Unused non-capital losses                       |  66.9    |  2.9     |  -      |  -     |  -      |  0.2   |  70.0    |
| Investment tax credits / Government assistance  |  44.2    |  -       |  -      |  -     |  -      |  -     |  44.2    |
| Alternative minimum tax credits and state taxes |  -       |  10.3    |  -      |  -     |  -      |  -     |  10.3    |
| Derivative instruments / Hedging                |  -       |  5.7     |  -      |  -     |  -      |  -     |  5.7     |
| Decommissioning obligations                     |  4.5     |  4.3     |  5.0    |  6.5   |  -      |  -     |  20.3    |
| Accrued liabilities and provisions              |  0.6     |  0.3     |  3.3    |  0.6   |  -      |  -     |  4.8     |
| BC Mining Tax                                   |  3.0     |  -       |  -      |  -     |  -      |  -     |  3.0     |
| Ontario Mining Tax                              |  4.2     |  -       |  -      |  -     |  -      |  -     |  4.2     |
| Other                                           |  6.9     |  -       |  -      |  1.6   |  -      |  -     |  8.5     |
|                                            |  130.3   |  23.5    |  8.3    |  8.7   |  -      |  0.2   |  171.0   |
|                                            |          |          |         |        |         |        |          |
| Deferred tax liabilities                        |          |          |         |        |         |        |          |
| Mining interests                                |  (160.2) |  (69.2)  |  (49.4) |  3.8   |  (71.4) |  -     |  (346.4) |
| Property, plant and equipment                   |  21.4    |  (33.8)  |  1.3    |  (3.8) |  -      |  -     |  (14.9)  |
| BC Mining Tax                                   |  (2.5)   |  -       |  -      |  -     |  -      |  -     |  (2.5)   |
| Mexican Mining Royalty                          |  -       |  -       |  -      |  (2.7) |  -      |  -     |  (2.7)   |
| Other                                           |  (3.6)   |  (4.4)   |  (1.8)  |  (2.5) |  -      |  (2.2) |  (14.5)  |
|                                            |  (144.9) |  (107.4) |  (49.9) |  (5.2) |  (71.4) |  (2.2) |  (381.0) |
| Deferred income tax liabilities, net            |  (14.6)  |  (83.9)  |  (41.6) |  3.5   |  (71.4) |  (2.0) |  (210.0) |

|                                            | $            | $             | $            | $            | $            | $           | $             |
|-------------------------------------------------|--------------|---------------|--------------|--------------|--------------|-------------|---------------|
|                                            | Canada       | USA           | Australia    | Mexico       | Chile        | Other       | Total         |
| Deferred tax assets                             |         |          |         |         |         |        |          |
| Unused non-capital losses                       |  35.9   |  1.7     |  -      |  -      |  -      |  0.2   |  37.8    |
| Investment tax credits / Government assistance  |  52.3   |  -       |  -      |  -      |  -      |  -     |  52.3    |
| Alternative minimum tax credits and state taxes |  -      |  14.8    |  -      |  -      |  -      |  -     |  14.8    |
| Derivative instruments / Hedging                |  -      |  45.0    |  -      |  -      |  -      |  -     |  45.0    |
| Decommissioning obligations                     |  4.8    |  4.3     |  7.0    |  4.8    |  -      |  -     |  20.9    |
| Accrued liabilities and provisions              |  1.3    |  0.4     |  3.7    |  2.5    |  -      |  -     |  7.9     |
| Other                                           |  15.2   |  0.2     |  -      |  -      |  -      |  -     |  15.4    |
|                                            |  109.5  |  66.4    |  10.7   |  7.3    |  -      |  0.2   |  194.1   |
|                                            |         |          |         |         |         |        |          |
| Deferred tax liabilities                        |         |          |         |         |         |        |          |
| Mining interests                                |  (34.4) |  (74.0)  |  (20.0) |  (52.5) |  (71.5) |  (1.6) |  (254.0) |
| Property, plant and equipment                   |  0.4    |  (32.3)  |  (17.8) |  (7.3)  |  -      |  -     |  (57.0)  |
| Other                                           |  (7.7)  |  1.7     |  (1.7)  |  (3.5)  |  -      |  (0.7) |  (11.9)  |
|                                            |  (41.7) |  (104.6) |  (39.5) |  (63.3) |  (71.5) |  (2.3) |  (322.9) |
| Deferred income tax liabilities, net            |  67.8   |  (38.2)  |  (28.8) |  (56.0) |  (71.5) |  (2.1) |  (128.8) |

|                                                    | $             |   | $             |
|---------------------------------------------------------|---------------|--------|---------------|
|                                                    | 2013          |   | 2012          |
| Balance at the beginning of the year                    |  (128.8) |   |  (138.1) |
| Recognized in net earnings                              |  5.7     |   |  (8.6)   |
| Recognized in other comprehensive income                |  (20.7)  |   |  (9.9)   |
| Recognized as reduction in mineral properties           |  (0.2)   |   |  24.0    |
| Recognized as foreign exchange                          |  (32.1)  |   |  5.3     |
| Recognized on acquisition of Rainy River Resources Inc. |  (35.9)  |   |  -       |
| Other                                                   |  2.0     |   |  (1.5)   |
|                                                    |  (210.0) |   |  (128.8) |
|                                                    |          |   |          |

----

| · | Canadian income tax losses of $27.5 million expire between 2014 to 2033; |
|--------|--------------------------------------------------------------------------|

| · | Canadian capital loss carry forwards of $21.7 million with no expiry date; |
|--------|----------------------------------------------------------------------------|

| · | United States loss carry forwards of $7.0 million expire between 2021 to 2028; and |
|--------|------------------------------------------------------------------------------------|

| · | Other loss carry forwards of $2.8 million with varying expiry dates. |
|--------|----------------------------------------------------------------------|

| · | Historic and expected future taxable income; |
|--------|----------------------------------------------|

| · | Any tax planning that can be implemented to realize the tax assets; and |
|--------|-------------------------------------------------------------------------|

| · | The nature, amount and timing and reversal of taxable temporary differences. |
|--------|------------------------------------------------------------------------------|

----

|                                   | New AftonMine | MesquiteMine | Peak Mines  | Cerro SanPedro Mine | Blackwater project | Total       |
|----------------------------------------|---------------|--------------|-------------|---------------------|--------------------|-------------|
|                                   | $             | $            | $           | $                   | $                  | $           |
|                                   |          |         |        |                |               |        |
| Balance, January 1, 2012               |  9.8     |  10.5   |  17.6  |  16.8          |  0.3          |  55.0  |
| Reclamation expenditures               |  (0.3)   |  (7.7)  |  -     |  -             |  -            |  (8.0) |
| Unwinding of discount                  |  0.2     |  0.2    |  0.6   |  0.3           |  -            |  1.3   |
| Revisions to expected cash flows       |  0.4     |  8.4    |  4.6   |  0.3           |  8.4          |  22.1  |
| Foreign exchange movement              |  0.3     |  -      |  (0.2) |  1.3           |  -            |  1.4   |
| Balance, December 31, 2012             |  10.4    |  11.4   |  22.6  |  18.7          |  8.7          |  71.8  |
| Less: current portion of closure costs |  1.2     |  0.7    |  1.2   |  0.2           |  -            |  3.3   |
| Non current portion of closure costs   |  9.2     |  10.7   |  21.4  |  18.5          |  8.7          |  68.5  |
|                                   |          |         |        |                |               |        |
| Balance, December 31, 2012             |  10.4    |  11.4   |  22.6  |  18.7          |  8.7          |  71.8  |
| Reclamation expenditures               |  (0.9)   |  (0.9)  |  (0.2) |  (0.2)         |  -            |  (2.2) |
| Unwinding of discount                  |  0.2     |  0.2    |  0.7   |  0.2           |  0.2          |  1.5   |
| Revisions to expected cash flows       |  (0.9)   |  (0.1)  |  (3.9) |  0.1           |  1.0          |  (3.8) |
| Foreign exchange movement              |  (0.6)   |  -      |  (3.2) |  (0.1)         |  (0.4)        |  (4.3) |
| Balance, December 31, 2013             |  8.2     |  10.6   |  16.0  |  18.7          |  9.5          |  63.0  |
| Less: current portion                  |  0.3     |  0.7    |  0.5   |  0.1           |  -            |  1.6   |
| Non current portion of closure costs   |  7.9     |  9.9    |  15.5  |  18.6          |  9.5          |  61.4  |

----

----

|                                         | $            |   | $            |
|----------------------------------------------|--------------|--------|--------------|
|                                         | 2013         |   | 2012         |
| Operating activities:                        |         |   |         |
| Change in non-cash operating working capital |         |   |         |
| Trade and other receivables                  |  (0.2)  |   |  (3.7)  |
| Inventories                                  |  (15.0) |   |  (34.0) |
| Prepaid expenses and other                   |  3.4    |   |  (3.6)  |
| Trade and other payables                     |  2.1    |   |  (3.5)  |
|                                         |  (9.7)  |   |  (44.8) |

----

----

|                                 |                                                                            |                                                          |                                                    |                                                    |                                              |                                                            | 2013                                                |
|--------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------|-----------------------------------------------------------------|-----------------------------------------------------|
|                                 | New Afton Mine                                                                  | Mesquite Mine                                                 | Peak Mines                                              | Cerro San Pedro Mine                                    | Corporate                                         | Other(1)                                                        | Total                                               |
|                                 | $                                                                               | $                                                             | $                                                       | $                                                       | $                                                 | $                                                               | $                                                   |
|                                 |                                                                            |                                                          |                                                    |                                                    |                                              |                                                            |                                                |
| Revenues(2)                          |   318.7                                                               |    113.7                                       |    177.7                                 |   169.6                                       |       -             |      -                                 |    779.7                             |
| Operating expenses                   |      105.7                                             |      94.3                            |  126.4                                             |     109.1                           |         - |       -                           |      435.5                 |
| Depreciation and depletion           |       93.7                                        |     25.2                                  |    32.4                                  |      26.1                      |         - |      -                                 |   177.4                                   |
| Earnings from mine operations        |      119.3                                             |      (5.8)                           |     18.9                            |      34.4                      |         - |        -                     |     166.8                       |
|                                 |                                                                            |                                                          |                                                    |                                                    |                                              |                                                            |                                                |
| Corporate administration             |              - |         -             |         -       |         -       |    26.7                            |       -                           |    26.7                              |
| Share-based payment expenses         |         -                               |         -             |          - |        -             |        8.5     |     -                                       |      8.5                   |
| Asset impairment                     |        -                                     |         -             |     6.4                             | 266.1                                                   |        -       |          -         |      272.5                 |
| Exploration and business development |      11.1                                              |       3.5                       |      5.7                       |       -                   |        0.4     |       13.4                        |     34.1                        |
| Income from operations               |      108.2                                             |      (9.3)                           |     6.8                             |    (231.7)                               |      (35.6)              |    (13.4)                                        |    (175.0)                           |
|                                 |                                                                            |                                                          |                                                    |                                                    |                                              |                                                            |                                                |
| Finance income                       |      0.1                                               |           - |       0.9                 |          - |     0.8                       |           0.9 |       2.7             |
| Finance costs                        |      (0.6)                                             |     (0.2)                                 |      (0.9)                     |      (0.3)                     |    (34.8)                          |      (3.5)                             |  (40.3)                                        |
| Rainy River acquisition costs        |           -                   |         -             |       -                   |         -       |       (5.0)         |      -                                 |     (5.0)                       |
| Other (losses) gains                 |    (18.0)                                                        |     7.2                                   |       (1.4)               |       (0.9)               |     49.6                      |    (10.5)                                        |     26.0                        |
| Earnings (loss) before taxes         |      89.7                                              |       (2.3)                     |       5.4                 |    (232.9)                               |      (25.0)              |     (26.5)                                  |     (191.6)                     |
| Income tax (expense) recovery        |    (36.2)                                                        |    (22.9)                                      |     (4.2)                           |     46.9                            |      11.6                |           5.2 |         0.4 |
| Net earnings (loss)                  |   53.5                                                                |     (25.2)                                |     1.2                             |    (186.0)                               |   (13.4)                                |      (21.3)                            |     (191.2)                     |

|                                 |          |         |         |                |         |        | 2012         |
|--------------------------------------|---------------|--------------|--------------|---------------------|--------------|-------------|--------------|
|                                 | New AftonMine | MesquiteMine | Peak Mines   | Cerro SanPedro Mine | Corporate    | Other(1)    | Total        |
|                                 | $             | $            | $            | $                   | $            | $           | $            |
|                                 |          |         |         |                |         |        |         |
| Revenues(2)                          |  127.3   |  190.7  |  191.1  |  282.2         |  -      |  -     |  791.3  |
| Operating expenses                   |  46.3    |  97.4   |  109.5  |  91.1          |  -      |  -     |  344.3  |
| Depreciation and depletion           |  35.0    |  25.7   |  22.8   |  32.9          |  -      |  -     |  116.4  |
| Earnings from mine operations        |  46.0    |  67.6   |  58.8   |  158.2         |  -      |  -     |  330.6  |
|                                 |          |         |         |                |         |        |         |
| Corporate administration             |  -       |  -      |  -      |  -             |  25.2   |  -     |  25.2   |
| Share-based payment expenses         |  -       |  -      |  -      |  -             |  10.9   |  -     |  10.9   |
| Exploration and business development |  4.5     |  -      |  5.9    |  5.1           |  1.3    |  3.8   |  20.6   |
| Income from operations               |  41.5    |  67.6   |  52.9   |  153.1         |  (37.4) |  (3.8) |  273.9  |
|                                 |          |         |         |                |         |        |         |
| Finance income                       |  0.1     |  -      |  0.4    |  -             |  0.9    |  -     |  1.4    |
| Finance costs                        |  (0.5)   |  (0.3)  |  (0.8)  |  (0.4)         |  (12.2) |  (2.2) |  (16.4) |
| Other (losses) gains                 |  (4.3)   |  (4.9)  |  0.8    |  (1.5)         |  27.8   |  2.0   |  19.9   |
| Earnings (loss) before taxes         |  36.8    |  62.4   |  53.3   |  151.2         |  (20.9) |  (4.0) |  278.8  |
| Income tax (expense) recovery        |  (3.9)   |  (14.6) |  (12.6) |  (47.7)        |  4.4    |  (5.4) |  (79.8) |
| Net earnings (loss)                  |  32.9    |  47.8   |  40.7   |  103.5         |  (16.5) |  (9.4) |  199.0  |

----

|                 | Total assets  | Total liabilities | Capital expenditure (2) |
|----------------------|---------------|-------------------|-------------------------|
|                 | 2013          | 2012              | 2013                    | 2012 | 2013 | 2012 |
|                 | $             | $                 | $                       | $ | $ | $ |
|                 |          |              |                    |   |   |   |
| New Afton Mine       |  1,161.8 |  1,181.4     |  77.5              |  76.0 |  122.2 |  302.0 |
| Mesquite Mine        |  437.9   |  471.7       |  129.8             |  238.2 |  17.4 |  10.9 |
| Peak Mines           |  310.1   |  324.9       |  88.2              |  89.3 |  43.0 |  46.8 |
| Cerro San Pedro Mine |  178.5   |  415.5       |  53.0              |  150.1 |  24.5 |  11.4 |
| Rainy River project  |  453.7   |  -           |  70.5              |  - |  21.2 |  - |
| Blackwater project   |  886.7   |  804.8       |  38.7              |  34.0 |  55.2 |  134.2 |
| El Morro project (3) |  433.1   |  423.2       |  190.5             |  136.6 |  - |  - |
| Other(1)             |  337.2   |  662.2       |  830.9             |  883.0 |  0.1 |  2.2 |
|                 |  4,199.0 |  4,283.7     |  1,479.1           |  1,607.2 |  283.6 |  507.5 |

| 1. | Other includes corporate balances and exploration properties. |
|----|---------------------------------------------------------------|

| 2. | Capital expenditure per consolidated statement of cash flows. In the current year, Mining Interests per statement of cash flows are net of proceeds received from government assistance. In the prior year, Mining Interests include the purchase of additional Blackwater mining claims but are net of proceeds received from sale of pre-commercial production inventory. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | As outlined in Note 13 the capital expenditure at El Morro is funded by the El Morro project funding loan. |
|----|------------------------------------------------------------------------------------------------------------|

|          | Revenues (1) |  Non-current assets (2) |
|---------------|--------------|------------------------------|
|          | 2013         | 2012                         | 2013 | 2012 |
|          | $            | $                            | $ | $ |
|          |         |                         |   |   |
| Canada        |  318.7  |  127.3                  |  2,310.6 |  1,842.4 |
| United States |  113.7  |  190.7                  |  279.9 |  292.8 |
| Australia     |  177.7  |  191.1                  |  250.2 |  250.2 |
| Mexico        |  169.6  |  282.2                  |  74.8 |  349.1 |
| Chile         |  -      |  -                      |  442.8 |  432.8 |
| Other         |  -      |  -                      |  6.1 |  - |
|          |  779.7  |  791.3                  |  3,364.4 |  3,167.3 |

|     |                     | $           |
|----------|--------------------------|-------------|
| Customer | Reporting segment        | 2013        |
| 1        | Mesquite Mine (1)        |  110.1 |
|     | Cerro San Pedro Mine (1) |  99.4  |
| 2        | New Afton Mine           |  135.9 |
| 3        | New Afton Mine           |  110.5 |
| 4        | Peak Mines               |  92.8  |
| 5        | Peak Mines               |  85.0  |
| Total    |                     |  633.7 |

----

|     |                     | $           |
|----------|--------------------------|-------------|
| Customer | Reporting segment        | 2012        |
| 1        | Cerro San Pedro Mine (1) |  164.2 |
|     | Mesquite Mine (1)        |  130.1 |
| 2        | Cerro San Pedro Mine     |  116.9 |
| 3        | Peak Mines               |  91.0  |
| 4        | Peak Mines               |  84.7  |
| Total    |                     |  586.9 |

----

|                      | $             |   | $             |
|---------------------------|---------------|--------|---------------|
|                      | December 31   |   | December 31   |
|                      | 2013          |   | 2012          |
| Equity                    |  2,719.9 |   |  2,676.5 |
| Long-term debt            |  862.5   |   |  847.8   |
|                      |  3,582.4 |   |  3,524.3 |
| Cash and cash equivalents |  (414.4) |   |  (687.8) |
| Investments               |  (0.5)   |   |  (1.0)   |
|                      |  3,167.5 |   |  2,835.5 |

----

----

|                      | $           |   | $           |
|---------------------------|-------------|--------|-------------|
|                      | December 31 |   | December 31 |
|                      | 2013        |   | 2012        |
| Cash and cash equivalents |  414.4 |   |  687.8 |
| Trade receivables         |  19.3  |   |  46.9  |
|                      |  433.7 |   |  734.7 |

|                 | 0-30       | 31-60     | 61-90     | 91-120  | Over      | 2013       | 2012       |
|----------------------|------------|-----------|-----------|---------|-----------|------------|------------|
|                 | days       | days      | days      | days    | 120 days  | Total      | Total      |
|                 | $          | $         | $         | $       | $         | $          | $          |
| New Afton Mine       |  1.7  |  4.2 |  -   |  - |  -   |  5.9  |  21.5 |
| Cerro San Pedro Mine |  3.7  |  1.9 |  0.3 |  - |  2.6 |  8.5  |  4.7  |
| Mesquite Mine        |  0.4  |  -   |  -   |  - |  -   |  0.4  |  0.9  |
| Peak Mines           |  3.0  |  -   |  -   |  - |  -   |  3.0  |  5.5  |
| Rainy River project  |  0.8  |  -   |  -   |  - |  -   |  0.8  |  -    |
| Blackwater project   |  0.5  |  -   |  -   |  - |  -   |  0.5  |  13.1 |
| Corporate            |  0.2  |  -   |  -   |  - |  -   |  0.2  |  1.2  |
|                 |  10.3 |  6.1 |  0.3 |  - |  2.6 |  19.3 |  46.9 |

----

|                               | Less than   | 1-3         | 4-5         | After         | 2013          | 2012          |
|------------------------------------|-------------|-------------|-------------|---------------|---------------|---------------|
|                               | 1 year      | years       | years       | 5 years       | Total         | Total         |
|                               | $           | $           | $           | $             | $             | $             |
| Trade and other payables           |  89.4  |  0.8   |  -     |  -       |  90.2    |  120.7   |
| Long-term debt (1)                 |  -     |  -     |  -     |  878.4   |  878.4   |  865.2   |
| Interest payable on long-term debt |  52.3  |  104.5 |  104.5 |  156.5   |  417.8   |  470.1   |
| Copper swap contracts              |  (2.5) |  -     |  -     |  -       |  (2.5)   |  0.9     |
| Gold contracts                     |  -     |  -     |  -     |  -       |  -       |  116.7   |
|                               |  139.2 |  105.3 |  104.5 |  1,034.9 |  1,383.9 |  1,573.6 |

|                                     |         |  December 31, 2013 |
|------------------------------------------|--------------|-------------------------|
|                                     | Canadian     | Australian              | Mexican |
|                                     | dollar       | dollar                  | peso |
| Cash and cash equivalents                |  61.5   |  2.0               |  0.8 |
| Trade and other receivables              |  7.3    |  3.0               |  8.6 |
| Trade and other payables                 |  (41.3) |  (22.2)            |  (22.6) |
| Reclamation and closure cost obligations |  (17.3) |  (15.6)            |  (18.6) |
| Warrants                                 |  (1.6)  |  -                 |  - |
| Share award units                        |  (27.8) |  -                 |  - |
| Gross balance sheet exposure             |  (19.2) |  (32.8)            |  (31.8) |

|                                     |          |  December 31, 2012 |
|------------------------------------------|---------------|-------------------------|
|                                     | Canadian      | Australian              | Mexican |
|                                     | dollar        | dollar                  | peso |
| Cash and cash equivalents                |  19.6    |  10.2              |  0.3 |
| Trade and other receivables              |  35.9    |  2.1               |  4.7 |
| Trade and other payables                 |  (70.8)  |  (18.4)            |  (16.3) |
| Reclamation and closure cost obligations |  (17.9)  |  (21.4)            |  (18.4) |
| Warrants                                 |  (80.3)  |  -                 |  - |
| Share award units                        |  (4.0)   |  -                 |  - |
| Gross balance sheet exposure             |  (117.5) |  (27.5)            |  (29.7) |

----

|              | $           | $            |
|-------------------|-------------|--------------|
|              | December 31 | December 31  |
|              | 2013        | 2012         |
|              |        |         |
| Canadian dollar   |  (1.9) |  (11.8) |
| Australian dollar |  (3.3) |  (2.7)  |
| Mexican peso      |  (3.2) |  (2.9)  |
|              |  (8.4) |  (17.4) |

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

| · | Global or regional political or economic crises; |
|--------|--------------------------------------------------|

| · | 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 holders; |
|--------|-----------------------------------------------------------------|

| · | Demand for jewellery containing gold; and |
|--------|-------------------------------------------|

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

----

|                      |       |    |  Years ended December 31 |
|---------------------------|------------|---------|-------------------------------|
|                      | $          | $       | $                             | $ |
|                      | 2013       | 2013    | 2012                          | 2012 |
|                      |       | Other   |                          | Other |
|                      |       | compre- |                          | compre- |
|                      | Net        | hensive | Net                           | hensive |
|                      | earnings   | income  | earnings                      | income |
|                      |       |    |                          |   |
| Gold price                |  52.4 |  - |  61.3                    |  21.1 |
| Copper price              |  26.6 |  - |  12.7                    |  - |
| Silver price              |  3.0  |  - |  5.9                     |  - |
| Fuel price                |  7.2  |  - |  6.1                     |  - |
| Warrants                  |  2.8  |  - |  8.0                     |  - |
| Share award units         |  0.2  |  - |  0.4                     |  - |
| Total price risk exposure |  92.2 |  - |  94.4                    |  21.1 |

----

|                           |         |        |  December 31, 2013 |
|--------------------------------|--------------|-------------|-------------------------|
|                           | $            | $           | $                       | $ | $ |
|                           | Loans and    |        |                    | Financial |   |
|                           | receivables  | Fair value  | Available               | liabilities at |   |
|                           | at amortized | through     | for sale at             | amortized |   |
|                           | cost         | profit/loss | fair value              | cost | Total |
|                           |         |        |                    |   |   |
| Financial assets               |         |        |                    |   |   |
| Cash and cash equivalents      |  414.4  |  -     |  -                 |  - |  414.4 |
| Trade and other receivables    |  20.5   |  -     |  -                 |  - |  20.5 |
| Provisionally priced contracts |  -      |  1.3   |  -                 |  - |  1.3 |
| Copper swap contracts          |  -      |  (2.5) |  -                 |  - |  (2.5) |
| Investments                    |  -      |  -     |  0.5               |  - |  0.5 |
| Financial liabilities          |         |        |                    |   |   |
| Trade and other payables       |  -      |  -     |  -                 |  90.2 |  90.2 |
| Long-term debt                 |  -      |  -     |  -                 |  862.5 |  862.5 |
| Warrants                       |  -      |  27.8  |  -                 |  - |  27.8 |
| Performance share units        |  -      |  0.8   |  -                 |  - |  0.8 |
| Share award units              |  -      |  0.9   |  -                 |  - |  0.9 |

----

|                           |         |        |  December 31, 2012 |
|--------------------------------|--------------|-------------|-------------------------|
|                           | $            | $           | $                       | $ | $ |
|                           | Loans and    |        |                    | Financial |   |
|                           | receivables  | Fair value  | Available               | liabilities at |   |
|                           | at amortized | through     | for sale at             | amortized |   |
|                           | cost         | profit/loss | fair value              | cost | Total |
|                           |         |        |                    |   |   |
| Financial assets               |         |        |                    |   |   |
| Cash and cash equivalents      |  687.8  |  -     |  -                 |  - |  687.8 |
| Trade and other receivables    |  49.3   |  -     |  -                 |  - |  49.3 |
| Provisionally priced contracts |  -      |  (1.5) |  -                 |  - |  (1.5) |
| Copper swap contracts          |  -      |  (0.9) |  -                 |  - |  (0.9) |
| Investments                    |  -      |  -     |  1.0               |  - |  1.0 |
| Financial liabilities          |         |        |                    |   |   |
| Trade and other payables       |  -      |  -     |  -                 |  117.4 |  117.4 |
| Long-term debt                 |  -      |  -     |  -                 |  847.8 |  847.8 |
| Gold contracts                 |  -      |  110.5 |  -                 |  - |  110.5 |
| Warrants                       |  -      |  80.3  |  -                 |  - |  80.3 |
| Share award units              |  -      |  4.0   |  -                 |  - |  4.0 |

|                        | 2013        | 2013        | 2012        | 2012        |
|-----------------------------|-------------|-------------|-------------|-------------|
|                        | $           | $           | $           | $           |
|                        | Carrying    | Fair        | Carrying    | Fair        |
|                        | Value       | Value       | Value       | Value       |
|                        |        |        |        |        |
| Financial assets            |        |        |        |        |
| Cash and cash equivalents   |  414.4 |  414.4 |  687.8 |  687.8 |
| Trade and other receivables |  19.3  |  19.3  |  46.9  |  46.9  |
| Investments                 |  0.5   |  0.5   |  1.0   |  1.0   |
| Financial liabilities       |        |        |        |        |
| Trade and other payables    |  90.2  |  90.2  |  120.7 |  120.7 |
| Long-term debt              |  862.5 |  870.4 |  847.8 |  902.9 |
| Gold contracts              |  -     |  -     |  110.5 |  110.5 |
| Warrants                    |  27.8  |  27.8  |  80.3  |  80.3  |
| Performance share units     |  0.8   |  0.8   |  -     |  -     |
| Share award units           |  0.9   |  0.9   |  4.0   |  4.0   |

----

|                           |         |  December 31, 2013 |
|--------------------------------|--------------|-------------------------|
|                           | $            | $                       | $ |
| Asset (Liability)              | Level 1      | Level 2                 | Level 3 |
|                           |         |                    |   |
| Investments                    |  0.5    |  -                 |  - |
| Warrants                       |  (27.7) |  (0.1)             |  - |
| Share award units              |  (0.9)  |  -                 |  - |
| Performance share units        |  (0.8)  |  -                 |  - |
| Provisionally priced contracts |  -      |  1.3               |  - |
| Copper swap contracts          |  -      |  (2.5)             |  - |

|                           |         |  December 31, 2012 |
|--------------------------------|--------------|-------------------------|
|                           | $            | $                       | $ |
| Asset (Liability)              | Level 1      | Level 2                 | Level 3 |
|                           |         |                    |   |
| Investments                    |  1.0    |  -                 |  - |
| Warrants                       |  (80.3) |  -                 |  - |
| Share award units              |  (4.0)  |  -                 |  - |
| Provisionally priced contracts |  -      |  (1.5)             |  - |
| Copper swap contracts          |  -      |  (0.9)             |  - |
| Gold contracts                 |  -      |  (110.5)           |  - |

----

----

|                              | Performance | Share award | Employee    |        |
|-----------------------------------|-------------|-------------|-------------|-------------|
|                              | share units | units       | benefits    | Total       |
|                              | $           | $           | $           | $           |
|                              |        |        |        |        |
| Balance, January 1, 2012          |  -     |  5.3   |  7.2   |  12.5  |
| Additional provisions recognized  |  -     |  6.0   |  1.4   |  7.4   |
| Used during the year              |  -     |  (7.5) |  -     |  (7.5) |
| Foreign exchange                  |  -     |  0.2   |  0.1   |  0.3   |
| Balance, December 31, 2012        |  -     |  4.0   |  8.7   |  12.7  |
| Less: current portion             |  -     |  3.2   |  -     |  3.2   |
| Non current portion of provisions |  -     |  0.8   |  8.7   |  9.5   |
| Additional provisions recognized  |  0.8   |  0.3   |  3.9   |  5.0   |
| Used during the year              |  -     |  (2.8) |  (3.9) |  (6.7) |
| Foreign exchange                  |  -     |  (0.2) |  (1.0) |  (1.2) |
| Balance, December 31, 2013        |  0.8   |  1.3   |  7.7   |  9.8   |
| Less: current portion             |  -     |  0.4   |  -     |  0.4   |
| Non current portion of provisions |  0.8   |  0.9   |  7.7   |  9.4   |

----

|                  | $          | $          |
|-----------------------|------------|------------|
|                  | 2013       | 2012       |
|                  |       |       |
| Less than 1 year      |  16.2 |  16.0 |
| Between 1 and 5 years |  18.8 |  32.9 |
| More than 5 years     |  -    |  -    |
|                  |  35.0 |  48.9 |

----

----

|                     | $          | $          |
|--------------------------|------------|------------|
|                     | 2013       | 2012       |
|                     |       |       |
| Short-term benefits (1)  |  5.7  |  5.6  |
| Post-employment benefits |  0.1  |  0.1  |
| Other long-term benefits |  6.0  |  7.5  |
| Share-based payments     |  1.0  |  1.9  |
| Termination benefits     |  -    |  -    |
|                     |  12.8 |  15.1 |

| 1. | Short-term benefits include salaries, bonuses payable within twelve months of the balance sheet date and other annual employee benefits. |
|----|------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----