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| INTRODUCTORY NOTES                                         | 1                                                         |
|------------------------------------------------------------|-----------------------------------------------------------|
| CORPORATE STRUCTURE                                        | 5                                                         |
| GENERAL DEVELOPMENT OF THE BUSINESS                        | 6                                                         |
| DESCRIPTION OF THE BUSINESS                                | 9                                                         |
|                                                       | Overview                                                  | 9 |
|                                                       | Specialized skill and knowledge                           | 9 |
|                                                       | Principal products                                        | 9 |
|                                                       | Competitive conditions                                    | 9 |
|                                                       | Operations                                                | 9 |
|                                                       | Environmental protection                                  | 10 |
|                                                       | Technical information                                     | 11 |
|                                                       | Summary of mineral reserve and mineral resource estimates | 11 |
| MINERAL PROPERTIES                                         | 15                                                        |
|                                                       | Mesquite Mine, United States                              | 15 |
|                                                       | Cerro San Pedro Mine, Mexico                              | 20 |
|                                                       | Peak Gold Mines, Australia                                | 28 |
|                                                       | New Afton Project, Canada                                 | 36 |
|                                                       | El Morro Project, Chile                                   | 43 |
| RISK FACTORS                                               | 52                                                        |
| NOTES AND DEBENTURES                                       | 60                                                        |
| DIVIDENDS                                                  | 61                                                        |
| DESCRIPTION OF CAPITAL STRUCTURE                           | 61                                                        |
| TRADING PRICE AND VOLUME                                   | 61                                                        |
| DIRECTORS AND OFFICERS                                     | 65                                                        |
| AUDIT COMMITTEE                                            | 70                                                        |
| LEGAL PROCEEDINGS AND REGULATORY ACTIONS                   | 72                                                        |
| INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS | 73                                                        |
| TRANSFER AGENT AND REGISTRAR                               | 73                                                        |
| MATERIAL CONTRACTS                                         | 73                                                        |
| INTERESTS OF EXPERTS                                       | 74                                                        |
| ADDITIONAL INFORMATION                                     | 76                                                        |
| Schedule “A” Audit Committee Charter           | A-1                                                       |
| Schedule “B”  Definitions            | B-1                                                       |
| Schedule “C”  List of Abbreviations  | C-1                                                       |

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| ·   | price levels and volatility in the spot and forward markets for commodities; |
|--------------------|------------------------------------------------------------------------------|

| ·   | the uncertainties inherent to current and future legal challenges New Gold is or may become a party to, including the third party claim related to the El Morro transaction with respect to New Gold's exercise of its right of first refusal on the El Morro copper-gold project in Chile and its partnership with Goldcorp Inc., which transaction and third party claim were announced by New Gold in January 2010; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | controls, regulations and political or economic developments in the countries in which New Gold does or may carry on business; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes in national and local government legislation in Canada, the United States, Australia, Mexico and Chile or any other country in which New Gold currently does or may in the future carry on business; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| ·   | the speculative nature of mineral exploration and development, including the risks of obtaining and maintaining the validity and enforceability of the necessary licenses and permits and complying with the permitting requirements of each jurisdiction that New Gold operates, including, but not limited to, Mexico, where New Gold is involved with ongoing challenges relating to its environmental impact statement for the Cerro San Pedro Mine; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | discrepancies between actual and estimated production, between actual and estimated costs, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | actual results of current exploration or reclamation activities; |
|--------------------|------------------------------------------------------------------|

| ·   | fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States, Australia, Mexico and Chile; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | significant capital requirements; |
|--------------------|-----------------------------------|

| ·   | impact of any hedging activities; |
|--------------------|-----------------------------------|

| ·   | taxation; |
|--------------------|-----------|

| ·   | additional funding requirements; |
|--------------------|----------------------------------|

| ·   | loss of key employees; |
|--------------------|------------------------|

| ·   | diminishing quantities or grades of reserves; |
|--------------------|-----------------------------------------------|

| ·   | changes in project parameters as plans continue to be refined; |
|--------------------|----------------------------------------------------------------|

| ·   | accidents; |
|--------------------|------------|

| ·   | labour disputes; |
|--------------------|------------------|

| ·   | defective title to mineral claims or property or contests over claims to mineral properties; and |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | competition. |
|--------------------|--------------|

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|        | 2010   | 2009   | 2008   |
|-------------|--------|--------|--------|
| High        | 1.0778 | 1.3000 | 1.2969 |
| Low         | 0.9946 | 1.0292 | 0.9719 |
| Average (1) | 1.0299 | 1.1420 | 1.0660 |
| Closing     | 0.9946 | 1.0466 | 1.2246 |

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

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|    | 2010($) | 2009($) | 2008($) |
|---------|---------|---------|---------|
| High    | 1,421   | 1,213   | 1,011   |
| Low     | 1,058   | 810     | 713     |
| Average | 1,225   | 972     | 872     |
| Closing | 1,406   | 1,088   | 870     |

|    | 2010($) | 2009($) | 2008($) |
|---------|---------|---------|---------|
| High    | 30.70   | 19.18   | 20.92   |
| Low     | 15.14   | 10.51   | 8.88    |
| Average | 20.16   | 14.65   | 14.99   |
| Closing | 30.63   | 16.99   | 10.79   |

|    | 2010($) | 2009($) | 2008($) |
|---------|---------|---------|---------|
| High    | 4.418   | 3.333   | 4.076   |
| Low     | 2.763   | 1.384   | 1.256   |
| Average | 3.417   | 2.350   | 3.153   |
| Closing | 4.418   | 3.330   | 1.316   |

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| ·   | 100% interest in the Mesquite Mine in Imperial County, California, United States (the “Mesquite Mine”). |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| ·   | 100% interest in the Cerro San Pedro Mine in Mexico (the “Cerro San Pedro Mine”). |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | 100% interest in the Peak Gold Mines in Australia (the “Peak Gold Mines”). |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | 100% interest in the New Afton Project in Kamloops, British Columbia, Canada (the “New Afton Project”). |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| ·   | 30% interest in the El Morro Project in Chile (the “El Morro Project”). |
|--------------------|-------------------------------------------------------------------------------------|

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| ·   | gold at the Mesquite Mine; |
|--------------------|----------------------------|

| ·   | gold and silver at the Cerro San Pedro Mine; |
|--------------------|----------------------------------------------|

| ·   | gold and copper at the Peak Gold Mines and the El Morro Project; and |
|--------------------|----------------------------------------------------------------------|

| ·   | gold, silver and copper at the New Afton Project. |
|--------------------|---------------------------------------------------|

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|  Location             | Full-Time | Contractors |
|----------------------------|-----------|-------------|
|                       |      |        |
| Vancouver Office           | 18        | 3           |
| Toronto Office             | 15        | -           |
| Corporate Exploration Team | 7         | -           |
| Mesquite Mine              | 262       | 12          |
| Cerro San Pedro Mine       | 403       | 42          |
| Peak Gold Mines            | 284       | 23          |
| New Afton Project          | 242       | 152         |
| El Morro Project           | -         | -           |
|                       | 1,191     | 229         |

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|                                                                                                                  | Contained Metals |
|-----------------------------------------------------------------------------------------------------------------------|------------------|
|                                                                                                                  | GoldKoz          | SilverKoz | CopperMlbs | ZincMlbs | LeadMlbs |
| Mineral Reserves                                                                                                      |             |   |   |   |   |
| Proven                                                                                                                | 2,662            | 24,074 | 930 | - | - |
| Probable                                                                                                              | 5,852            | 22,334 | 1,956 | - | - |
| Total P&P                                                                                                         | 8,514            | 46,408 | 2,886 | - | - |
|                                                                                                                  |             |   |   |   |   |
| Mineral Resources                                                                                                     |             |   |   |   |   |
| Measured                                                                                                              | 4,243            | 35,388 | 1,939 | 355 | 73 |
| Indicated                                                                                                             | 8,817            | 48,126 | 1,599 | 765 | 133 |
| Total M&I                                                                                                         | 13,060           | 83,514 | 3,538 | 1,120 | 206 |
| Inferred                                                                                                              | 4,097            | 48,531 | 1,128 | 1,436 | 254 |
| Notes to the Mineral Reserve and Resource statements are provided on pages 14&15 of this Annual Information Form. |

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|                                                                                                    | Metal Grade       | Contained Metal |
|---------------------------------------------------------------------------------------------------------|-------------------|-----------------|
|                                                                                                    | Tonnes000’s | Goldg/t         | Silverg/t | Copper% | GoldKoz | SilverKoz | CopperMlbs |
| Mesquite Mine                                                                                           |              |            |   |   |   |   |   |
| Proven                                                                                                  | 13,915            | 0.74            | - | - | 331 | - | - |
| Probable                                                                                                |  155,198     | 0.56            | - | - | 2,794 | - | - |
| Mesquite P&P                                                                                        | 169,113           | 0.57            | - | - | 3,125 | - | - |
| Cerro San PedroMine                                                                                     |              |            |   |   |   |   |
| Proven                                                                                                  | 36,294            | 0.61            | 20.3 | - | 712 | 23,688 | - |
| Probable                                                                                                | 33,473            | 0.51            | 17.6 | - |   549 | 18,941 | - |
| CSP P&P                                                                                             | 69,767            | 0.56            | 19.0 | - | 1,261 | 42,629 | - |
| Peak Gold Mines                                                                                         |              |            |   |   |   |   |   |
| Proven                                                                                                  | 1,689             | 4.75            | 7.1 | 0.72 | 258 | 386 | 27 |
| Probable                                                                                                | 1,724             | 4.0             |  5.4 | 0.82 | 222 | 299 | 31 |
| Peak P&P                                                                                            | 3,413             | 4.4             | 6.2 | 0.77 | 480 | 685 | 58 |
| New AftonProject                                                                                        |              |            |   |   |   |   |   |
| Proven                                                                                                  | -                 | -               | - | - | - | - | - |
| Probable                                                                                                | 47,400            | 0.69            | 2.03 | 0.95 | 1,052 | 3,094 | 993 |
| New Afton P&P                                                                                       | 47,400            | 0.69            | 2.03 | 0.95 | 1,052 | 3,094 | 993 |
| El MorroProject                                                                                         | 100% Basis        | 30% Basis       |
| Proven                                                                                                  | 240,020           | 0.59            | - | 0.57 | 1,361 | - | 903 |
| Probable                                                                                                | 291,103           | 0.44            | - | 0.48 | 1,235 | - |  932 |
| El Morro P&P                                                                                        | 531,123           | 0.51            | - | 0.52 | 2,596 | - | 1,835 |
| Notes to the Mineral Reserve statement are provided on pages 14&15 of this Annual Information Form. |

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|                                                                                                     | Metal Grade       | Contained Metal |
|----------------------------------------------------------------------------------------------------------|-------------------|-----------------|
|                                                                                                     | Tonnes000’s | Goldg/t         | Silverg/t | Copper% | Zinc% | Lead% | GoldKoz | SilverKoz | CopperMlbs | ZincMlbs | LeadMlbs |
| Mesquite Mine                                                                                            |              |            |   |   |   |   |   |   |   |   |   |
| Measured                                                                                                 | 24,992            | 0.61            | - | - | - | - | 490 | - | - | - | - |
| Indicated                                                                                                | 336,006           | 0.48            | - | - | - | - | 5,185 | - | - | - | - |
| Mesquite M&I                                                                                         | 360,998           | 0.49            | - | - | - | - | 5,675 | - | - | - | - |
| Cerro San Pedro Mine                                                                                     |              |            |   |   |   |   |   |   |   |   |   |
| Measured (oxide)                                                                                         | 39,566            | 0.43            | 16.48 | - | - | - | 547 | 20,964 | - | - | - |
| Indicated (oxide)                                                                                        | 65,478            | 0.29            | 13.04 | - | - | - | 610 | 27,451 | - | - | - |
| CSP M&I (oxide)                                                                                      | 105,044           | 0.34            | 14.34 | - | - | - | 1,157 | 48,415 | - | - | - |
| Measured (sulphide)                                                                                      | 19,405            | 0.53            | 16.78 | - | 0.83 | 0.17 | 331 | 10,469 | - | 355 | 73 |
| Indicated (sulphide)                                                                                     | 51,004            | 0.40            | 10.84 | - | 0.68 | 0.12 | 656 | 17,776 | - | 765 | 133 |
| CSP M&I (sulphide)                                                                                   | 70,409            | 0.40            | 12.48 | - | 0.72 | 0.13 | 987 | 28,245 | - | 1,120 | 206 |
| Peak Gold Mines                                                                                          |              |            |   |   |   |   |   |   |   |   |   |
| Measured                                                                                                 | 3,091             | 4.9             | 8.0 | 0.90 | - | - | 487 | 795 | 61 | - | - |
| Indicated                                                                                                | 4,205             | 3.6             | 5.8 | 1.15 | - | - | 487 |   784 | 107 | - | - |
| Peak M&I                                                                                             | 7,296             | 4.2             | 6.7 | 1.04 | - | - | 974 | 1,579 | 168 | - | - |
| New AftonProject                                                                                         |              |            |   |   |   |   |   |   |   |   |   |
| Measured                                                                                                 | 35,100            | 0.91            | 2.80 | 1.26 | - | - | 1,027 | 3,160 | 975 | - | - |
| Indicated                                                                                                | 29,900            | 0.67            | 2.20 | 0.85 | - | - |   644 | 2,115 |   560 | - | - |
| New Afton M&I                                                                                        | 65,000            | 0.80            | 2.60 | 1.07 | - | - | 1,671 | 5,275 | 1,535 | - | - |
| El MorroProject                                                                                          | 100% Basis        | 30% Basis       |
| Measured                                                                                                 | 240,020           | 0.59            | - | 0.57 | - | - | 1,361 | - | 903 | - | - |
| Indicated                                                                                                | 291,103           | 0.44            | - | 0.48 | - | - | 1,235 | - | 932 | - | - |
| El Morro M&I                                                                                         | 531,123           | 0.51            | - | 0.52 | - | - | 2,596 | - | 1,835 | - | - |
| Notes to the Mineral Resource statement are provided on pages 14&15 of this Annual Information Form. |

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|                                                                                                  | Metal Grade       | Contained Metal |
|-------------------------------------------------------------------------------------------------------|-------------------|-----------------|
|                                                                                                  | Tonnes000’s | Goldg/t         | Silverg/t | Copper% | Zinc% | Lead% | GoldKoz | SilverKoz | CopperMlbs | ZincMlbs | LeadMlbs |
| Mesquite Mine                                                                                         | 59,232            | 0.53            | - | - | - | - | 1,019 | - | - | - | - |
| Cerro San Pedro Mine                                                                                  |              |            |   |   |   |   |   |   |   |   |   |
| Open Pit Resources                                                                                    |              |            |   |   |   |   |   |   |   |   |   |
| Oxides                                                                                                | 42,380            | 0.20            | 8.03 | - | - | - | 273 | 10,941 | - | - | - |
| Sulphides                                                                                             | 40,457            | 0.29            | 11.63 | - | 0.90 | 0.07 | 377 | 15,127 | - | 803 | 63 |
|                                                                                                  |              |            |   |   |   |   | 650 | 26,068 |   | 803 | 63 |
| Underground Resources                                                                                 |              |            |   |   |   |   |   |   |   |   |   |
| Manto Sulphides                                                                                       | 6,098             | 1.89            | 105.15 | - | 4.71 | 1.42 | 371 | 20,615 | - | 633 | 191 |
| Peak Gold Mines                                                                                       | 3,665             | 2.6             | 4.0 | 1.54 | - | - | 306 | 471 | 124 | - | - |
| New Afton Project                                                                                     | 25,200            | 0.54            | 1.70 | 0.66 | - | - | 438 | 1,377 | 367 | - | - |
| El Morro Project                                                                                      | 100% Basis        | 30% Basis       |
|                                                                                                  | 137,555           | 0.99            | - | 0.70 | - | - | 1,313 | - | 637 | - | - |
| Notes to inferred resource statement are provided on pages 14&15 of this Annual Information Form. |

| 1)   | Mineral Reserves |
|----------------|------------------|

| Mineral Property | GoldUS$/oz | SilverUS$/oz | CopperUS$/lb | Lower cutoff                                                                        |
|------------------|------------|--------------|--------------|-------------------------------------------------------------------------------------|
| Mesquite         | $900       | -            | -            | 0.19 g/t  Au – Oxide reserves0.37 g/t Au – Non-oxide reserves |
| Cerro San Pedro  | $900       | $15.00       | -            | US$2.58/t NSR                                                                       |
| Peak Mines       | $900       | $15.00       | $2.25        | AU$123 - 156/t NSR                                                                  |
| New Afton        | $800       | $12.00       | $2.00        | US$19/t NSR                                                                         |
| El Morro         | $950       | -            | $2.00        | 0.30% CuEq (*)                                                                      |

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| 2)   | Mineral Resources |
|----------------|-------------------|

| Mineral Property                                                                        | GoldUS$/oz       | SilverUS$/oz | CopperUS$/lb     | ZincUS$/lb | LeadUS$/lb | Lower cut-off                                                                                                                                          |
|-----------------------------------------------------------------------------------------|------------------|--------------|------------------|------------|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| Mesquite                                                                                | $1,000           | -            | -                | -          | -          | 0.11 g/t Au – Oxide resources0.22 g/t Au – Non-oxide resources                                                                             |
| Cerro San Pedro                                                                         | $1,000           | $18.00       | -                | $1.00      | $0.75      | 0.1 g/t AuEq – Open pit oxide resources0.4 g/t AuEq – Open pit sulphide resources2.5 g/t AuEq – Underground manto sulphide resources |
| Peak Mines                                                                              | $900             | $15.00       | $2.25            | $0.85      | $0.65      | AU$90 - 100/t NSR                                                                                                                                      |
| New Afton                                                                               | $900             | -            | $2.50            | -          | -          | 0.4% CuEq – All resources                                                                                                                        |
| El Morro*    Meas’d & Ind    Inferred |  $950$1,100 |  --     |  $2.00$2.50 |  --   |  --   |  0.30% CuEq0.17% CuEq                                                                                                                             |

| 3)   | Cerro San Pedro Mineral Resources include measured, indicated and inferred resources that are contained within a “Mineral Resource Pit” and reported at lower cut-offs of 0.1 g/t AuEq for oxide mineralization and 0.4 g/t AuEq for sulphide mineralization based on the Mineral Resource metal prices noted above. Inferred manto sulphide Mineral Resources represent mineralization that is potentially mineable via underground mining methods and delimited by a 2.5 g/t AuEq grade shell based on the Mineral Resource metal prices noted above. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Year        | Work Type                                                                                                               | Results                                                                                                                |
|-------------|-------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|
| 1995 - 1997 | Mapping and Sampling.Exploration and RC and core drilling: 49,000 m in about 213 holes.Feasibility Study (1st)          | Proven and probable reserve estimated: 77.3 Mt @ 0.60 g/t Au, 24.8 g/t Ag (based on $360/oz gold, $5.25/oz silver)(1)  |
| 1997 - 2000 | Mapping and Sampling. Exploration andcore drilling: 7,612 m in about 53 holesFeasibility Study (2nd)                    | Proven and probable reserve estimated: 63.5 Mt @ 0.62 g/t Au, 24.6 g/t Ag (based on $300/oz gold, $5.50/oz silver).(1) |
| 2000 - 2002 | Feasibility Study (3rd)                                                                                                 | Proven and probable reserve estimated: 50 Mt @ 0.77 g/t Au, 23.0 g/t Ag (based on $275/oz gold, $5.25/oz silver).(1)   |
| 2003 - 2008 | Mine Development: Feb – Dec 2003Construction – Jan 2004 to April 2007Commercial Production – May 2007 | Proven and probable reserve estimated: 61 Mt @ 0.59 g/t Au, 24.0 g/t Ag (based on $325/oz gold, $4.62/oz silver).      |
| 2008 - 2010 | Exploration and core/RC drilling: 25,689 m in 49 holes                                                                  | Refer to Mmineral Reserve and Mineral Resource statements as of December 31, 2010.                                     |

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| CERRO SAN PEDRO DRILL HOLE DATABASENew Gold Inc. - Cerro San Pedro Mine, Mexico |
|---------------------------------------------------------------------------------|
|                                                                            |   | Core Holes | RC Holes | Total |
| Company                                                                         | Year | No. | Metres | No. | Metres | No. | Metres |
| Bear Creek                                                                      | 1982 | - | - | 3 | 276 | 3 | 276 |
| Fresnillo                                                                       | 1992 | - | - | 49 | 9,518 | 49 | 9,518 |
| Metallica - MSX                                                                 | 1995 | - | - | 47 | 11,970 | 47 | 11,970 |
| Metallica - MSX                                                                 | 1996 | 28 | 8,568 | 78 | 20,895 | 106 | 29,463 |
| Cambior - MSX                                                                   | 1997 | 11 | 2,650 | - | - | 11 | 2,650 |
| Cambior – MSX  Surface                                          | 1998 | 13 | 1,439 | - | - | 13 | 1,439 |
| Cambior – MSX Underground                                                 | 1998 | 42 | 3,523 | - | - | 42 | 3,523 |
| New Gold – MSX                                                            | 2008-10 | 42 | 24,178 | 7 | 1,511 | 49 | 25,689 |
| Total                                                                           | 136 | 40,358 | 184 | 44,170 | 320 | 84,528 |

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| Peak Gold Mines – Summary of  Drilling Programs |
|-----------------------------------------------------------------|
| PROJECT AREA                                                    |
| Year                                                            | Perseverance | Peak | New Occidental | Chesney | New Cobar | Great Cobar | Other Targets |
|                                                            | DDH | DD | RDH | DDH | DD | RDH | DDH | DD | RDH | DDH | DD | RDH | DDH | DD | RDH | DDH | DD | RDH | DDH | DD | RDH |
|                                                            | Metres | Metres | Metres | Metres | Metres | Metres | Metres | Metres | Metres | Metres | Metres | Metres | Metres | Metres | Metres | Metres | Metres | Metres | Metres | Metres | Metres |
|                                                            | # holes | # holes | # holes | # holes | # holes | # holes | # holes | # holes | # holes | # holes | # holes | # holes | # holes | # holes | # holes | # holes | # holes | # holes | # holes | # holes | # holes |
|  Pre 2004                                                  | 90,485 | 19,752 | 1,096 | 156,370 | 66,137 | 17,352 | 45,572 | 58,896 | 2,606 | 4,616 | 51,765 | 18,607 | 5,439 | 83,218 | 30,509 |  - | 26,143 | 5,838 |  - | 31,992 | 55,332 |
|                                                            | 370 | 25 | 13 | 1,396 | 129 | 205 | 495 | 95 | 26 | 52 | 106 | 181 | 147 | 221 | 351 |  - | 54 | 73 |  - | 101 | 972 |
| 2005 - 2009                                                     | 90,679 | 1,903 |  - | 6,781 | 5,671 |  320 | 26,342 | 1,294  |  - |  15,131 | 12,744 |  - | 33,173 |  5,948 |  - |  - |  - |  - |  - | 7,421 | 7,027 |
| 665                                                             | 5 |  - | 39 | 23 |  4 | 231 |  3 |  - |  125 | 28 |  - | 294 |  18 |  - |  - |  - |  - |  - | 22 | 47 |
| 2010                                                            | 30,672 | 906 |  - |  - |  - |  - | 5,350 |  - |  - | 2,640 |  - |  - | 4,363 | 2,787 |  - |  - | 7,674 |  - |  - | 5,329 |  - |
|                                                            | 222 | 1 |  - |  - |  - |  - | 15 |  - |  - | 32 |  - |  - | 25 | 4 |  - |  - | 11 |  - |  - | 3 |  - |
| TOTAL                                                           | 211,836 | 22,561 | 1,096 | 163,151 | 71,808 | 17,672 | 77,264 | 60,190 | 2,606 | 22,387 | 64,509 | 18,607 | 42,975 | 91,953 | 30,509 |   | 33,817 | 5,838 | 0 | 44,742 | 62,359 |
| 1,257                                                           | 31 | 13 | 1,435 | 152 | 209 | 741 | 98 | 26 | 209 | 134 | 181 | 466 | 243 | 351 |   | 65 | 73 | 0 | 126 | 1,019 |
| Notes:                                                          | DDH – Underground diamond drill core hole delineation |
|                                                            | DD – Surface diamond drill core hole exploration |
|                                                            | RDH – reverse circulation drill hole |
|                                                            | Other Targets - Fortitude, Mt Boppy, Queen Bee, Stone Tank and Regional |

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| ·   | Perseverance |
|--------------------|--------------|

| ·   | Peak |
|--------------------|------|

| ·   | New Occidental |
|--------------------|----------------|

| ·   | Chesney |
|--------------------|---------|

| ·   | New Cobar |
|--------------------|-----------|

| ·   | Great Cobar |
|--------------------|-------------|

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| 1)     | Minera Metallica Limitada and BHP Chile S.A. Purchase Option Agreement – BHP Option                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | In July 2003, the Company and Falconbridge exercised an option and acquired certain mining exploitation concessions from BHP. The concessions are referred to as the BHP concessions and have a combined area of 1,849 hectares. BHP retained a 2% NSR royalty on any mining that occurs on the BHP mining concessions. In December 2004, the Company and Falconbridge acquired the 2% NSR royalty from BHP . The Company acquired a 30% interest in the royalty and Falconbridge acquired a 70% interest in the royalty. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 2)     | Minera Metallica Limitada and Rene Martin Jure Purchase Option Agreement - Martin Option                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | In December 2001, the Company and Falconbridge exercised an option and acquired certain mining exploitation concessions. The exploitation concessions are referred to as the Cantarito and Tronquito mining properties and have a combined area of approximately 305 hectares. The third party has retained a 2% NSR royalty on any mining that occurs on the Cantarito and Tronquito mining concessions.                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 3)     | Falconbridge Chile Limitada and Santiago del Carmen Cayo Salinas, Luis Alberto Cayo Salinas and Johnny Cayo Salinas Purchase Option Agreements – Cayo Options                                                                                                                                                                                                                                                                                                                                                       |
|   | During 2001 and 2002, Falconbridge exercised three option agreements with the shareholders of Santa Julia Uno de la Sierra Fortuna, and acquired certain mining exploitation concessions.The concessions are referred to as the Santa Julia concessions and have a combined area of 61 hectares. Payments of $133,333 are due to each of the three shareholders of Santa Julia Uno de la Sierra Fortuna within two years of commencement of mining on the Santa Julia concessions.                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

----

----

----

----

| El Morro Project – Summary of Exploration Drilling Programs |
|-------------------------------------------------------------------|
| TARGET AREA                                                       |
| Company(year)                                                     | La Fortuna | El Morro | El Negro | Cantarito | Other Areas | TOTAL |
| DDHMetres(no. holes)                                              | RDHMetres(no. holes) | DDHMetres(no. holes) | RDHMetres(no. holes) | DDHMetres(no. holes) | RDHMetres(no. holes) | DDHMetres(no. holes) | RDHMetres(no. holes) | DDHMetres(no. holes) | RDHMetres(no. holes) | DDHMetres(no. holes) | RDHMetres(no. holes) |
| BHP(1993-1994)                                                    | 400(1) | 3,167(13) |   |   |   | 100(1) |   | 1,376(14) |   |   | 400(1) | 4,643(28) |
| Metallica(1999)                                                   |   | 908(4) | 500(1) | 1,547(7) |   | 418(2) |   | 340(4) |   |   | 500(1) | 3,213(17) |
| Falconbridge (2000)                                               | 1,160(4) |   | 2,949(11) |   |   |   |   |   | 199(1) |   | 4,308(16) | 0 |
| Falconbridge(2000-2001)                                           | 9,385(21) |   |   |   | 4,972(16) |   |   |   | 904(3) |   | 15,261(40) | 0 |
| Falconbridge (2002)                                          | 8,248(16) | 1,538(5) |   | 1,094(3) | 749(3) | 912(3) |   | 394(1) |   | 2,536(10) | 8,997(19) | 6,474(22) |
| Falconbridge(2005)                                                | 9,932(23) |   |   |   |   |   |   |   |   |   | 9,932(23) | 0 |
| Falconbridge  (2006)                                    | 28,719(74) |   |   |   |   |   |   |   |   |   | 28,719(74) | 0 |
| Xstrata(2006-2007)                                                | 15,913(32) |   |   |   |   |   |   |   |   |   | 15,913(32) |   |
| TOTAL                                                             | 73,757(171) | 5,613(22) | 3,449(12) | 2,641(10) | 5,721(19) | 1,430(6) |   | 2,110(19) | 1,103(4) | 2,536(10) | 84,030(206) | 14,330(74) |
| Notes:                                                            | DDH – diamond drill core hole |
|                                                              | RDH – reverse circulation drill hole |

----

| ·   | The lack of vegetation in the project area permits nearly complete line-of-sight visibility to all points, lessening the possibility of surveying errors. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | All inclined drill holes were surveyed at a maximum interval of 50 metres down-hole, with the majority of holes surveyed at much closer intervals. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| ·   | Pit Optimization |
|--------------------|------------------|

| ·   | Mine Planning |
|--------------------|---------------|

| ·   | Waste Facility Design |
|--------------------|-----------------------|

| ·   | Equipment Fleet Specification |
|--------------------|-------------------------------|

| ·   | Operating and Capital Cost Calculations |
|--------------------|-----------------------------------------|

| ·   | a general income tax levied on both legal entities and individuals; and |
|--------------------|-------------------------------------------------------------------------|

| ·   | a value-added tax (VAT) levied up to the consumer level. |
|--------------------|----------------------------------------------------------|

----

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

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

----

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

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

----

----

----

| ·   | Transaction exposure:  the Company’s operations sell commodities and incur costs in different currencies. This creates exposure at the operational level, which may affect the Company’s profitability as exchange rates fluctuate; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| ·   | Translation exposure: the Company’s functional and reporting currency is U.S dollars, other than New Afton, whose functional currency will be Canadian dollars. The parent entity and the Company’s operations translate their financial statements from their host currencies to U.S. dollars, with translation foreign exchange gains and losses included in the determination of profit or loss.  Therefore, exchange rate movements in the Australian dollar, Mexican peso, Chilean peso and the Canadian dollar can have a significant impact on the Company’s consolidated operating results. The Company will translate New Afton’s Canadian dollar balances to U.S. dollars through the cumulative translation account in equity; therefore, only foreign currency transaction gains and losses for this entity will be reflected in the consolidated operating results. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

| 2010      | High (C$) | Low (C$) | Volume     |
|-----------|-----------|----------|------------|
| January   | 5.19      | 3.85     | 73,504,972 |
| February  | 5.14      | 4.21     | 63,646,288 |
| March     | 4.98      | 4.22     | 42,373,385 |
| April     | 6.02      | 4.41     | 78,638,254 |
| May       | 6.67      | 5.40     | 85,134,374 |
| June      | 6.97      | 6.39     | 61,791,528 |
| July      | 6.56      | 4.92     | 72,557,810 |
| August    | 6.92      | 5.11     | 37,607,644 |
| September | 6.97      | 5.79     | 62,354,950 |
| October   | 7.60      | 6.65     | 34,628,280 |
| November  | 9.75      | 7.62     | 46,069,060 |
| December  | 10.30     | 8.94     | 31,197,019 |

| 2010      | High (C$) | Low (C$) | Volume    |
|-----------|-----------|----------|-----------|
| January   | 0.73      | 0.49     | 2,640,927 |
| February  | 0.92      | 0.60     | 1,417,230 |
| March     | 0.92      | 0.71     | 726,262   |
| April     | 0.97      | 0.82     | 730,205   |
| May       | 1.25      | 0.85     | 1,835,714 |
| June      | 1.49      | 1.17     | 1,575,377 |
| July      | 1.40      | 0.90     | 1,371,658 |
| August    | 1.55      | 1.10     | 748,517   |
| September | 1.90      | 1.45     | 1,728,308 |
| October   | 2.38      | 1.58     | 716,880   |
| November  | 3.05      | 2.17     | 1,285,861 |
| December  | 3.15      | 2.60     | 783,079   |

----

| 2010      | High (C$)   | Low (C$)    | Volume           |
|-----------|-------------|-------------|------------------|
| January   |  0.050 |  0.030 |  11,890,827 |
| February  |  0.040 |  0.035 |  4,226,373  |
| March     |  0.040 |  0.030 |  9,079,433  |
| April     |  0.040 |  0.030 |  5,080,350  |
| May       |  0.040 |  0.030 |  8,160,740  |
| June      |  0.040 |  0.030 |  13,464,461 |
| July      |  0.035 |  0.030 |  3,384,460  |
| August    |  0.045 |  0.030 |  3,172,200  |
| September |  0.055 |  0.035 |  12,545,517 |
| October   |  0.050 |  0.040 |  9,140,800  |
| November  |  0.090 |  0.045 |  19,070,157 |
| December  |  0.100 |  0.075 |  23,260,423 |

| 2010      | High (C$)   | Low (C$)    | Volume          |
|-----------|-------------|-------------|-----------------|
| January   |  0.240 |  0.140 |  1,631,500 |
| February  |  0.180 |  0.130 |  333,400   |
| March     |  0.165 |  0.100 |  3,574,177 |
| April     |  0.205 |  0.110 |  1,410,803 |
| May       |  0.230 |  0.150 |  1,267,500 |
| June      |  0.245 |  0.150 |  7,832,666 |
| July      |  0.230 |  0.135 |  9,639,000 |
| August    |  0.250 |  0.185 |  2,312,827 |
| September |  0.255 |  0.200 |  2,296,900 |
| October   |  0.255 |  0.205 |  8,668,096 |
| November  |  0.330 |  0.240 |  3,931,785 |
| December  |  0.380 |  0.310 |  1,643,750 |

----

| 2010      | High ($)     | Low ($)      | Volume        |
|-----------|--------------|--------------|---------------|
| January   |  108.00 |  102.00 |  119,010 |
| February  |  106.50 |  105.00 |  15,410  |
| March     |  109.75 |  106.80 |  43,300  |
| April     |  108.50 |  107.00 |  20,200  |
| May       |  107.25 |  103.50 |  185,210 |
| June      |  107.00 |  104.50 |  722,220 |
| July      |  107.50 |  105.00 |  1,670   |
| August    |  108.00 |  106.00 |  40,740  |
| September |  107.95 |  106.00 |  44,340  |
| October   |  108.70 |  107.00 |  57,730  |
| November  |  108.50 |  107.21 |  37,740  |
| December  |  108.25 |  107.50 |  17,180  |

| 2010      | High ($)     | Low ($)      | Volume                                                                                                                 |
|-----------|--------------|--------------|------------------------------------------------------------------------------------------------------------------------|
| January   |  102.00 |  99.50  |  4,453                                                                                                            |
| February  |  101.00 |  99.50  |  4,770                                                                                                            |
| March     |  101.00 |  100.00 |  3,600                                                                                                            |
| April     |  102.00 |  100.50 |  4,280                                                                                                            |
| May       |  105.00 |  102.00 |  4,020                                                                                                            |
| June      |  110.50 |  102.75 |  34,710                                                                                                           |
| July      |  110.00 |  100.00 |  950                                                                                                              |
| August    |  107.00 |  106.00 |  2,650                                                                                                            |
| September |  106.00 |  105.00 |  4,910                                                                                                            |
| October   |  107.51 |  105.25 |  151,850                                                                                                          |
| November  |  119.00 |  109.45 |  3,340                                                                                                            |
| December  | -            | n/a          |                     n/a |

----

|  JAMES ESTEY Ontario, Canada Director since:July 8, 2008Independent               |  James Estey is the retired Chairman of UBS Securities Canada Inc. and has more than 30 years of experience in the financial markets. Mr. Estey joined Alfred Bunting and Company as an institutional equity salesperson in 1980 after working at A.E. Ames & Co. for seven years. In 1994, Mr. Estey became the head of the Canadian Equities business, and in 2002 he was appointed President and Chief Executive Officer of UBS Securities Canada. In January 2008, Mr. Estey assumed the role of Chairman.  He serves on the boards of CNSX, Range Royalty Management Ltd. and Endurance Energy Ltd. He also serves on the boards of The Estey Centre for Law and Economics in International Trade and St. Clements School, and is on the Advisory Board of the Edwards School of Business.  Mr. Estey’s principal occupation is a Corporate Director. |
|-------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  ROBERT GALLAGHER British Columbia, Canada Director since:June 30, 2008Non-Independent |   Robert Gallagher’s principal occupation is the President and Chief Executive Officer of New Gold.  Mr. Gallagher has worked in the mining industry for over 32 years and spent 15 years with Placer Dome Inc. and seven years with Newmont Mining Corporation, most recently as Vice President, Operations, Asia Pacific.  Before the business combination of Peak Gold, Metallica and New Gold, Mr. Gallagher was the President and Chief Executive Officer of Peak Gold from February 2008.  Mr. Gallagher holds a Bachelor of Applied Science in Mineral Processing.                                                                                                                                                                                                                                                                  |

----

|  VAHAN KOLOLIAN Ontario, Canada Director since:June 1, 2009Independent    |  Vahan Kololian is the founder and Managing Partner of TerraNova Partners LP, which invests in the industrial, services and resource sectors. Since 2002, Mr. Kololian has been Chairman of KK Precision Inc., a private engineering and manufacturing company. Mr. Kololian started his career in investment banking in 1980 with Burns Fry Limited (now BMO Nesbitt Burns). Since 1990, he has held leadership positions in private equity partnerships. Mr. Kololian also serves on the board of Manicouagan Minerals Inc., a public mineral exploration company.  Mr. Kololian holds BA and LL.B. degrees.  Mr. Kololian is also co-founder and Chairman of the Mosaic Institute, whose purpose is to bring together Canadians of differing ethnicities whose homelands are in conflict, with the objective of developing new foreign policy ideas directed towards the region in conflict. Mr. Kololian’s principal occupation is the Managing Partner of TerraNova Partners LP. |
|-----------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  MARTYN KONIG Surrey, United Kingdom Director since:June 1, 2009Independent    |  Martyn Konig has 29 years’ experience in investment banking and the commodity markets. He is Executive Chairman and President of AIM and TSX listed European Goldfields Limited (EGU:CN) and was Chief Executive Officer of the Blackfish Capital Group from 2005 until August 2009. He has extensive experience in the natural resource sector, which includes senior management responsibility in resource finance and commodity trading operations at various international investment banks. Mr. Konig was a main Board Director of NM Rothschild and Sons Ltd. for 15 years and held senior positions at Goldman Sachs and UBS. Mr. Konig is a Barrister and Fellow of the Chartered Institute of Bankers.  Mr. Konig’s principal occupation is the Executive Chairman and President of European Goldfields Limited.                                                                                                                                                                |
|  PIERRE LASSONDE Ontario, Canada Director since:June 30, 2008Independent  |   Pierre Lassonde is the Chairman of Franco-Nevada Corporation. He formerly served as President of Newmont Mining Corporation from 2002 to 2006 and resigned as a director and Vice Chairman of Newmont effective as of November 30, 2007. Previously Mr. Lassonde served as a director and President (1982 to 2002) and Co-Chief Executive Officer (1999 to 2002) of Franco-Nevada Corporation.  Mr. Lassonde’s principal occupation is the Chairman of Franco-Nevada Corporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|  CRAIG NELSEN Colorado, United StatesDirector since:June 30, 2008Independent   |  Craig Nelsen was previously the Chairman of Metallica Resources Inc. He has been the President and Chief Executive Officer of Avanti Mining Corporation since 2007. He previously served as Chief Executive Officer of that company from 1994 to 1999. Mr. Nelsen also served as the Executive Vice President, Exploration, for Gold Fields Limited from 1999 to 2007.  Mr. Nelsen’s principal occupation is the President and Chief Executive Officer of Avanti Mining Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

----

|  RANDALL OLIPHANT Ontario, Canada Director since:June 1, 2009Non-Independent                 |  Randall Oliphant’s principal occupations are as the Executive Chairman of New Gold and as the President and Chief Executive Officer of Silver Bear Resources Inc. Mr. Oliphant is on the Advisory Board of Metalmark Capital LLC (formerly Morgan Stanley Capital Partners), and serves on the boards of WesternZagros Resources Ltd. and Franco-Nevada Corporation. Since 2003, Mr. Oliphant has served on the boards of a number of public and private companies and not-for-profit organizations. From 1999 to 2003, he was the President and Chief Executive Officer of Barrick Gold Corporation.  From 2006 to 2009, he was Chairman of Western Goldfields Inc. Mr. Oliphant is a Chartered Accountant.                                                                                                                                                                       |
|------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  IAN TELFER(1)British Columbia, CanadaDirector since:June 30, 2008Independent                          |  Ian Telfer is the Chairman of Goldcorp Inc. and previously served as President and Chief Executive Officer of Goldcorp Inc. from February 2005 until its merger with Glamis Gold Ltd. in November 2006.  Mr. Telfer was previously Chairman and Chief Executive Officer of Wheaton River and has over 26 years of experience in the precious metals business.  Mr. Telfer is a Chartered Accountant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|  RAYMOND THRELKELD North Carolina, United States Director since:June 1, 2009Non-Independent  |  Raymond Threlkeld has over 32 years of mineral industry experience.  From 2005 to 2009, Mr. Threlkeld was the Chief Operating Officer of Silver Bear Resources Inc.  From  2006 to 2009, he was the President and Chief Executive Officer of Western Goldfields Inc. From 1996 to 2005 Mr. Threlkeld held various senior management positions in precious metal mine development with Barrick Gold Corporation and Coeur d’Alene Mines Corporation including the development of the Pierina Mine in Peru, the Bulyanhulu Mine in Tanzania and the Veladero Mine in Argentina. Mr. Threlkeld has had exploration acquisition success in the Western United States in addition to his management and project development experience.  Mr. Threlkeld’s principal occupation is the President and Chief Executive Officer of Rainy River Resources Ltd. |
|  BRIAN PENNY Ontario, CanadaExecutive Vice President and Chief Financial Officer                  |  Mr. Penny has over 23 years of experience in mine finance and accounting. He has been the Executive Vice President and Chief Financial Officer of the Company since June 2009.  He was the Chief Financial Officer of Western Goldfields from 2006 to 2009. Since 2005, Mr. Penny is also the Chief Financial Officer of Silver Bear Resources Inc. Since 2004, Mr. Penny has been a Director of, and chairs the Audit Committee of Equinox Minerals Limited. Mr. Penny was the Chief Financial Officer of Kinross Gold Corporation 1993 – 2004. Mr. Penny is a Certified Management Accountant.  Mr. Penny’s principal occupation is the Executive Vice President and Chief Financial Officer of New Gold.                                                                                                                                                        |

----

|  JAMES CURRIE British Columbia, CanadaExecutive Vice President and Chief Operating Officer  |  Mr. Currie is a mining engineer with over 31 years of experience in the mining industry, having worked on projects in North and South America, Asia and Africa. Mr. Currie was previously the Vice President Operations of New Gold and Vice President Operations for Miramar Mining Corp. in Vancouver, and was responsible for the development of Miramar’s 10 million ounce gold resource at Hope Bay in the Canadian Arctic. Prior to that, Mr. Currie held the position of General Manager of Mauritanian Copper Mines SA. Mr. Currie’s principal occupation is the Executive Vice President and Chief Operating Officer of New Gold.                                                                                                                                                                                                                                  |
|------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  JOHN MARSHALL British Columbia, CanadaVice President, Human Resources                      |  Mr. Marshall has over 23 years’ experience in human resources spanning the energy, semiconductor and banking industries. He was previously the Director of Worldwide Human Resource Operations for PMC-Sierra Inc. where he managed human resources operations for employees in over 10 countries. Prior to PMC-Sierra, Mr. Marshall held various human resources roles at Duke Energy, Westcoast Energy and NatWest Group plc.  Mr. Marshall’s principal occupation is the Vice President, Human Resources of New Gold.                                                                                                                                                                                                                                                                                                                                                    |
|  MARK PETERSEN Colorado, United StatesVice President, Exploration                           |  Mr. Petersen is an economic geologist with over 28 years of mining industry experience in the Americas. Previously, Mr. Petersen held the position of Vice President of Exploration for Metallica Resources Inc., where he was responsible for leading the exploration and development of the Cerro San Pedro project in Mexico, acting as the company’s technical liaison for the El Morro joint venture project in Chile, developing and managing a portfolio of earlier stage exploration projects in Chile, Brazil, and Alaska, and directing generative exploration work throughout the Americas. Prior to his term with Metallica, Mr. Petersen held positions as an exploration geologist with Lac Minerals Inc. and predecessor companies Bond Gold Inc. and St. Joe Gold Inc.  Mr. Petersen’s principal occupation is the Vice President, Exploration of New Gold. |
|  HANNES PORTMANN Ontario, CanadaVice President, Corporate Development                       |  Mr. Portmann has been working with mining companies in a financial capacity since his career began. Before joining Western Goldfields in 2008 he was an Associate in the Merrill Lynch Investment Banking Mining Group, where he worked in an advisory role on merger and acquisition mandates as well as equity and debt offerings. Previously, Mr. Portmann held roles in both the assurance and advisory practices of PricewaterhouseCoopers LLP. Mr. Portmann holds a Bachelor of Science in Mining Engineering from Queen’s University, a Masters of Management and Professional Accounting from the Rotman School of Management, University of Toronto and is a Canadian Chartered Accountant.  Mr. Portmann’s principal occupation is the Vice President, Corporate Development of New Gold.                                                                         |

----

|  SUSAN TOEWS British Columbia, CanadaVice President, Legal Affairs and Corporate Secretary  |  Ms. Toews has over 18 years corporate, securities legal experience and was previously Corporate Secretary of Peak Gold Ltd.  She was also previously General Counsel at egX Canada, an emerging marketplace working toward the securitization of real estate assets and Senior Legal Counsel with the British Columbia Securities Commission (BCSC).  She was the BCSC representative on the Canadian Securities Administrators committee that developed the national rule on disclosure of corporate governance, corporate governance guidelines and the national rule on auditor oversight. Ms. Toews holds a Bachelor of Arts (Hons.) from the University of Victoria and a Bachelor of Laws from the University of Saskatchewan. Ms. Toews principal occupation is the Vice President, Legal Affairs and Corporate Secretary of New Gold. |
|------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (1) | Ian Telfer, currently a director of the Company will not stand for re-election at the Company’s Annual General and Special Meeting to be held on May 4, 2011. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Board Committee                               | Committee Members      | Status      |
|-----------------------------------------------|------------------------|-------------|
| Audit Committee                               | James Estey (Chair)    | Independent |
| Vahan Kololian                                | Independent            |
| Martyn Konig                                  | Independent            |
| Compensation Committee                        | Vahan Kololian (Chair) | Independent |
| Pierre Lassonde                               | Independent            |
| Ian Telfer(1)                                 | Independent            |
| Corporate Governance and Nominating Committee | James Estey (Chair)    | Independent |
| Martyn Konig                                  | Independent            |
| Ian Telfer(1)                                 | Independent            |
| HSE&S Committee                           | Craig Nelsen (Chair)   | Independent |
| Vahan Kololian                                | Independent            |
| Raymond Threlkeld                             | Non-Independent        |

| (1) | Ian Telfer, currently a director of the Company will not stand for re-election at the Company’s Annual General and Special Meeting to be held on May 4, 2011. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| James Estey - Chair | Independent (1) |  Financially literate (2)       |
|---------------------|-----------------|--------------------------------------|
| Martyn Konig        | Independent (1) |  Financially literate (2)       |
| Vahan Kololian      | Independent (1) |  Financially literate (2)  |

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

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

----

| ·   | all services, not previously approved, up to $10,000; and |
|--------------------|-----------------------------------------------------------|

| ·   | proposals for non-audit related services to be provided by the Company’s auditors up to a value of C$100,000. |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| Financial Year Ending December 31, | Audit Fees  | Audit Related Fees (1) | Tax Fees (2) | All Other Fees (3) |
|------------------------------------|-------------|------------------------|--------------|--------------------|
| 2010                               | C$1,675,500 | C$134,500              | C$87,400     | nil                |
| 2009                               | C$1,658,000 | C$224,800              | C$188,000    | nil                |

| (1) | The aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit or review of the Company’s financial statements which are not included under the heading “Audit Fees”. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The aggregate fees billed for professional services rendered for tax compliance, tax advice and tax planning. |
|-----|---------------------------------------------------------------------------------------------------------------|

| (3) | The aggregate fees billed for services other than as set out under Audit Fees, Audit Related Fees, or Tax Fees. |
|-----|-----------------------------------------------------------------------------------------------------------------|

----

| ·   | Acquisition and Funding Agreement dated January 6, 2010 between New Gold Inc., Datawave Sciences Inc., Inversiones El Morro Limitada and Goldcorp Inc., described under the heading “General Development of the Business – Post-Western Goldfields Business Combination”. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

| Mineral Property     | Qualified Person(s)                                                                                                                                                                                                                    |
|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Mesquite Mine        | Mr. Wayne W. Valliant, P. Geo., and Principal Geologist for Roscoe Postle Associates, Inc. (formerly Scott Wilson Roscoe Postle Associates, Inc.)                                                                                      |
|                 | Mr. Holger Krutzelmann, P. Eng., formerly Principle Metallurgist for Roscoe Postle Associates, Inc. (formerly Scott Wilson Roscoe Postle Associates, Inc.)                                                                             |
|                 | Mr. Richard J. Lambert, P.E., and Principal Mining Consultant for Roscoe Postle Associates, Inc. (formerly Scott Wilson Roscoe Postle Associates, Inc.)                                                                                |
| Cerro San Pedro Mine | Mr. Holger Krutzelmann, P. Eng., formerly Principle Metallurgist for Roscoe Postle Associates, Inc. (formerly Scott Wilson Roscoe Postle Associates, Inc.)                                                                             |
|                 | Mr. Christopher Moreton, Ph.D. and P. Geo., and Senior Consulting Geologist for Roscoe Postle Associates, Inc. (formerly Scott Wilson Roscoe Postle Associates, Inc.)                                                                  |
|                 | Mr. Richard J. Lambert, P.E., and Principal Mining Consultant for Roscoe Postle Associates, Inc. (formerly Scott Wilson Roscoe Postle Associates, Inc.)                                                                                |
| Peak Gold Mines      | Mr. Peter Lloyd, FAusIMM, BESc (Mining), and Mining Engineer for New Gold Inc.                                                                                                                                                         |
|                 | Mr. Rex Berthelsen, FAusIMM, CPGeo., and Principal Geologist for New Gold Inc.                                                                                                                                                         |
|                 | Mr. Eric Strom P. Eng., and Professional Engineer for New Gold Inc.                                                                                                                                                                    |
|                 | Mr. Sean Pearce MAusIMM, and formerly Manager Mining for New Gold Inc.                                                                                                                                                                 |
| New Afton Project    | Mr. David Rennie, P. Eng., and Principal Geologist for Roscoe Postle Associates, Inc. (formerly Scott Wilson Roscoe Postle Associates, Inc.)                                                                                           |
|                 | Mr. R. Dennis Bergen, P. Eng., and Associate Principal Mining Engineer for Roscoe Postle Associates, Inc. (formerly Scott Wilson Roscoe Postle Associates, Inc.)                                                                       |
|                 | Mr. Kevin C. Scott, P. Eng, and Principal Metallurgist for Roscoe Postle Associates, Inc. (formerly Scott Wilson Roscoe Postle Associates, Inc.)                                                                                       |
| El Morro Project     | Mr. Richard J. Lambert, P.E., and currently Principal Mining Consultant Roscoe Postle Associates, Inc. (formerly Scott Wilson Roscoe Postle Associates, Inc.) (formerly Principal Mining Engineer for Pincock, Allen & Holt Inc.). |
|                 | Barton G. Stone, P. Geo. and Chief Geologist for Pincock, Allen & Holt Inc.                                                                                                                                                        |

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| Mineral Property             | Qualified Person(s)                                                                                                                                                    |
|------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Mesquite MineReserves        | Mr. Hubert Schimann, P.Eng. and Corporate Mining Engineer for New Gold Inc.                                                                                            |
| Resources                    | Mr. Rex Berthelsen, FAusIMM, CPGeo and Principal Geologist for New Gold Inc.                                                                                           |
| Cerro San Pedro MineReserves | Mr. Hubert Schimann, P.Eng. and Corporate Mining Engineer for New Gold Inc.                                                                                            |
| Resources                    | Mr. Rex Berthelsen, FAusIMM, CPGeo and Principal Geologist for New Gold Inc.                                                                                           |
| Peak Gold MinesReserves      | Mr. Sean Pearce, AusIMM formerly Manager Mining for Peak Gold Mines Pty. Ltd.                                                                                          |
| Resources                    | Mr. Manfred Wimberger, MAusIMM, and Geology Superintendent for Peak Gold Mines Pty. Ltd.                                                                               |
| New Afton ProjectReserves    | Mr. Dennis Bergen, P.Eng. and Associate Principal Mining Engineer for  Roscoe Postle Associates, Inc. (formerly Scott Wilson Roscoe Postle Associates, Inc.) |
| Resources                    | Mr. David Rennie, P. Eng. and Principal Geologist for Roscoe Postle Associates, Inc. (formerly Scott Wilson Roscoe Postle Associates, Inc.)                            |
| El Morro ProjectReserves     | Mr. Hubert Schimann, P.Eng. and Corporate Mining Engineer for New Gold Inc.                                                                                            |
| Resources                    | Mr. Rex Berthelsen, FAusIMM, CPGeo and Principal Geologist for New Gold Inc.                                                                                           |

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| 1. | Mesquite Mine – “Technical Report on the Mesquite Mine, Brawley, California” dated February 26, 2010.  The report was prepared by Richard J. Lambert, P.E., Wayne W. Valliant, P. Geo., of RPA and Holger Krutzelmann, P.Eng. formerly of RPA.                                                                |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2. | Cerro San Pedro Mine – “Technical Report on the Cerro San Pedro Mine, San Luis Potosí, Mexico” dated February 16, 2010 and amended March 22, 2010.  The report was prepared by Richard J. Lambert, P.E., Christopher Moreton, Ph.D. and P.Geo., of RPA and Holger Krutzelmann, P.Eng. formerly of RPA.   |
| 3. | Peak Gold Mines – Peak Gold Mines Pty Ltd “Technical Report on Peak Gold Mines, New South Wales, Australia,” dated January 1, 2009, as amended and restated on June 12, 2009. The report was prepared by Peter Lloyd, FAusIMM, Rex Berthelsen, FAusIMM, CPGeo, and Eric Strom, P.Eng. who are employees of the Company. |
| 4. | New Afton Project – “Technical Report on the New Afton Project, British Columbia, Canada”, dated December 31, 2009.  The report was prepared by R. Dennis Bergen, P. Eng., David W. Rennie, P.Eng., and Kevin C. Scott, P.Eng. all of RPA.                                                                    |
| 5. | El Morro Project – “Feasibility NI 43-101 Technical Report for the El Morro Copper-Gold Project, Region III, Chile,” dated May 9, 2008, readdressed to New Gold on August 26, 2009.  The report was prepared by Richard Lambert, P.E., and Barton Stone, P.G. of Pincock, Allen & Holt.                   |

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|   | a.     |   | Review and discuss with management and the outside auditor at the completion of the annual examination:                                                                                                                                                                                                                    |
|--------|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   | i.     | the Company's audited financial statements and related notes;                                                                                                                                                                                                                                                              |
|   |   | ii.    | the outside auditor's audit of the financial statements and their report thereon;                                                                                                                                                                                                                                          |
|   |   | iii.   | any significant changes required in the outside auditor's audit plan;                                                                                                                                                                                                                                                      |
|   |   | iv.    | any serious difficulties or disputes with management encountered during the course of the audit; and                                                                                                                                                                                                                       |
|   |   | v.     | other matters related to the conduct of the audit, which are to be communicated to the Committee under generally accepted auditing standards.                                                                                                                                                                              |
|   | b.     |   | Review and discuss with management and the outside auditor at the completion of any review engagement or other examination, the Company's quarterly financial statements.                                                                                                                                                  |
|   | c.     |   | Review, discuss with management the annual reports, the quarterly reports, the Management Discussion and Analysis ("MD&A"), Annual Information Form, 40-F, prospectus, financial press releases and other disclosures and, if thought advisable, recommend the acceptance of such documents to the Board for approval. |

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|   | d. | Review and discuss with management any guidance being provided to shareholders on the expected future results and financial performance of the Company and provide their recommendations on such documents to the Board.                                                                                                                                                                                                                         |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | e. | Inquire of the auditors the quality and acceptability of the Company's accounting principles, including the clarity of financial disclosure and the degree of conservatism or aggressiveness of the accounting policies and estimates.                                                                                                                                                                                                           |
|   | f. | Review the Company's compliance with any policies and reports received from regulators. Discuss with management and the independent auditor the effect on the Company's financial statements of significant regulatory initiatives.                                                                                                                                                                                                              |
|   | g. | Meet with the outside auditor and management in separate executive sessions, as necessary or appropriate, to discuss any matters that the Committee or any of these groups believe should be discussed privately with the Audit Committee.                                                                                                                                                                                                       |
|   | h. | Ensure that management has the proper system and procedures are in place so that the Company's financial statements, financial reports and other financial information including all Company disclosure of financial information extracted or derived from the Company’s financial statements, and that they satisfy all legal and regulatory requirements. The Audit Committee shall periodically assess the adequacy of such procedures. |
|   | i. | Review with the Company's counsel, management and the independent auditors any legal or regulatory matter, including reports or correspondence, which could have a material impact on the Company's financial statements or compliance policies.                                                                                                                                                                                                 |
|   | j. | Based on discussions with the independent auditor concerning the audit, the financial statement review and such other matters as the Committee deems appropriate, recommend to the Board the filing of the audited annual and unaudited quarterly financial statements and MD&A on SEDAR and the inclusion of the audited financial statements in the Annual Report on Form 40-F.                                                            |

|   | a. | Be responsible for the recommendation to Board and the shareholders for the appointment of the Company's independent auditor and for the compensation, retention and oversight of the work of the independent auditor employed by the Company. The independent auditor shall report directly to the Committee. The Audit Committee shall be responsible to resolve any disagreements between management and the auditors regarding financial reporting. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | b. | Consider, in consultation with the outside auditor, the audit scope and plan of the outside auditor.                                                                                                                                                                                                                                                                                                                                                    |
|   | c. | Approve the outside auditor to be nominated, the cost of their services and review the performance of the auditor, including the lead partner of the external auditor.                                                                                                                                                                                                                                                                                  |
|   | d. | Confirm with the outside auditor and receive written confirmation at least once per year as to the outside auditor's internal processes and quality control and disclosure of any investigations or government enquiries, reviews or investigations of the outside auditor.                                                                                                                                                                             |
|   | e. | Take reasonable steps to confirm at least annually the independence of the outside auditor, which shall include:                                                                                                                                                                                                                                                                                                                                        |

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|   |   | i.                                                                                                                                                                                                                                                                                                | ensuring receipt from the outside auditor of a formal written statement delineating all relationships between the outside auditor and the Company, consistent with generally accepting auditing practices, and determine that they satisfy the requirements of all applicable securities legislation including the U.S. Securities and Exchange Commission Independence Standards Board Standard No. 1, |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   | ii.                                                                                                                                                                                                                                                                                               | considering and discussing with the outside auditor any disclosed relationships or services, including non audit services, that may impact the objectivity and independence of the outside auditor, and                                                                                                                                                                                                 |
|   |   | iii.                                                                                                                                                                                                                                                                                              | approve in advance any audit or permissible non-audit related services provided by the auditor to the Company with a view to ensuring independence of the auditor, and in accordance with any applicable regulatory requirements, including the requirements of all applicable securities regulations with respect to approval of non audit related serviced performed by the auditor.                  |
|   | f.     | Confirm that the lead audit partner for the Company's independent auditors has not performed audit services for the Company for more than five previous fiscal years, and otherwise ensure the rotation of the lead partner and other partners in accordance with all applicable securities laws. |
|   | g.     | Review and approve the Company's hiring policies regarding partners, employees and former employees of the present and former independent auditors of the Company.                                                                                                                                |

| a. | Review and assess the adequacy and effectiveness of the Corporation's systems of internal and management information systems through discussion with management and the external auditor to ensure that the Company maintains appropriate systems, is able to assess the pertinent risks of the Company and that the risk of a material misstatement in the financial disclosures can be detected.              |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| b. | Assess the requirement for the appointment of an internal auditor for the Company.                                                                                                                                                                                                                                                                                                                              |
| c. | Inquire of management and the outside auditor about the systems of internal controls that management and the Board of Directors have established and the effectiveness of those systems. In addition, inquire of management and the outside auditor about significant financial risks or exposures and the steps management has taken to minimize such risks to the Company.                                    |
| d. | Review disclosures made to the Committee by the Company's CEO and CFO during their certification process required under applicable Canadian and United States security regulations. Review any significant deficiencies in the design and operation of disclosure controls and procedures and any fraud involving management or other employees who have a significant role in the Company's internal controls. |

| a. | Conduct an ongoing review of any transaction now in effect, and review and approve in advance any proposed transaction, that could be within the scope of "related party transactions" as such term is defined in the applicable securities regulations, and establish appropriate procedures to receive material information about and prior notice of any such transaction. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| b. | Establish procedures for the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls or auditing matters; and for the confidential, anonymous submission by employees of the Company of concerns regarding questionable accounting or auditing matters.                                                     |

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| c. | The Committee shall have the power to conduct or authorize investigations into any matter within the scope of this Charter. It may request any officer or employee of the Company, its outside legal counsel or outside auditor to attend a meeting of the Committee or to meet with any member(s) of the Committee. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| d. | Review the qualifications of the accounting and financial personnel.                                                                                                                                                                                                                                                 |
| e. | Perform any other activities consistent with this Charter, the Company's Articles and governing law, as the Committee or the Board deems necessary or appropriate.                                                                                                                                                   |

| a. | provides leadership to the Committee with respect to its functions as described in this Charter and as otherwise may be appropriate, including overseeing the logistics of the operations of the Committee;                                                                                                                                                                                                                                     |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| b. | chairs meetings of the Committee, unless not present, including in camera sessions, and reports to the Board of Directors following each meeting of the Committee on the findings, activities and any recommendations of the Committee;                                                                                                                                                                                                         |
| c. | ensures that the Committee meets on a regular basis and at least quarterly;                                                                                                                                                                                                                                                                                                                                                                     |
| d. | in consultation with the Chair of the Board and the Committee members, establishes a calendar for holding meetings of the Committee;                                                                                                                                                                                                                                                                                                            |
| e. | establishes the agenda for each meeting of the Committee, with input from other Committee members, the Chair of the Board, and any other parties as applicable;                                                                                                                                                                                                                                                                                 |
| f. | acts as liaison and maintains communication with the Chair of the Board and the Board to optimize and co-ordinate input from Board members, and to optimize the effectiveness of the Committee. This includes reporting to the full Board on all proceedings and deliberations of the Committee at the first meeting of the Board after each Committee meeting and at such other times and in such manner as the Committee considers advisable; |

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| g.     | reports annually to the Board on the role of the Committee and the effectiveness of the Committee role in contributing to the objectives and responsibilities of the Board as a whole;                                                                                       |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| h.     | ensures that the members of the Committee understand and discharge their duties and obligations;                                                                                                                                                                             |
| i.     | fosters ethical and responsible decision making by the Committee and its individual members;                                                                                                                                                                                 |
| j.     | together with the Corporate Governance and Nominating Committee, oversees the structure, composition, membership and activities delegated to the Committee from time to time;                                                                                                |
| k.     | ensures that resources and expertise are available to the Committee so that it may conduct its work effectively and efficiently and pre-approves work to be done for the Committee by consultants;                                                                           |
| l.     | facilitates effective communication between members of the Committee and management;                                                                                                                                                                                         |
| m.     | addresses all concerns communicated to him under the Company’s Whistleblower Policy and Code of Ethics;                                                                                                                                                                |
| n.     | performs such other duties and responsibilities as may be delegated to the Chair by the Board of Directors from time to time.The Audit Committee will annually review and reassess the adequacy of this policy and submit any recommended changes to the Board for approval. |
|   |                                                                                                                                                                                                                                                                         |

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| m          | micron                                                  |
|------------|---------------------------------------------------------|
| Ag         | Silver                                                  |
| Au         | Gold                                                    |
| °C    | degree Celsius                                          |
| °F    | degree Fahrenheit                                       |
| mg         | microgram                                               |
| cm         | centimetre                                              |
| cm2        | square centimetre                                       |
| Cu         | Copper                                                  |
| ft         | foot                                                    |
| g          | gram                                                    |
| G          | giga (billion)                                          |
| Gwh        | gigawatt-hour                                           |
| HQ         | diamond drill core measuring 6.35 cm in diameter        |
| hr or h    | hour                                                    |
| ha         | hectare                                                 |
| in         | inch                                                    |
| J          | joule                                                   |
| K          | kilo (thousand)                                         |
| kg         | kilogram                                                |
| km         | kilometre                                               |
| km2        | kilometres squared                                      |
| L          | litre                                                   |
| lb         | pound                                                   |
| m          | metre                                                   |
| m2         | metres squared                                          |
| M          | mega (million)                                          |
| mm         | millimetre                                              |
| MW         | megawatt                                                |
| MWh        | megawatt-hour                                           |
| NQ         | diamond drill core measuring 4.76 cm in diameter        |
| opt, oz/st | ounce per short ton                                     |
| oz         | Troy ounce/ounce (31.1035g)                             |
| Pb         | Lead                                                    |
| PQ         | diamond drill core measuring 8.5 cm in diameter         |
| RC         | reverse circulation                                     |
| RL         | relative elevation                                      |
| s          | second                                                  |
| st         | short ton (one short ton equals 0.907 metric tonnes)    |
| stpa       | short ton per year                                      |
| stpd       | short ton per day                                       |
| t          | metric tonne (one metric tonne equals 1.102 short tons) |
| tpa/tpy    | metric tonne per year                                   |
| tpd        | metric tonne per day                                    |
| V          | volt                                                    |
| W          | watt                                                    |
| yd         | yard                                                    |
| Zn         | Zinc                                                    |

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

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