NEWS RELEASENew Gold to Appeal Suspension of Mexican Mining Operation
Vancouver, B.C. - (November 19, 2009)
- New Gold Inc. ("New Gold") (TSX and NYSE AMEX-NGD) is cooperating with Mexican
government authorities and pursuing all legal appeals after the company was
notified yesterday that it must suspend mining operations at its Cerro San Pedro
Mine, known regionally as Minera San Xavier ("MSX"). Although mining has been
suspended, gold recovery operations of existing inventory on the leach pads are
continuing.


Following a ruling by the Federal Court of Fiscal and Administrative Justice,
SEMARNAT, the Mexican government's environmental protection agency nullified the
mine's Environmental Impact Statement ("EIS") which was issued in 2006. PROFEPA, the
Mexican environmental enforcement agency, issued the order requiring MSX to suspend
mining as a consequence of the nullification of the EIS.

MSX has appealed the decision of the Federal Court of Fiscal and Administrative
Justice and intends to pursue all legal avenues with respect to the recent actions
of both SEMARNAT and PROFEPA. New Gold is seeking immediate remedies. MSX has also
filed a new EIS with SEMARNAT.


"This is a continuation of a decade of challenges from a group of individuals
largely from outside the area who are opposed to the mining operations at Cerro San
Pedro. We are taking all possible steps to respond to challenges to our legal
ability to operate the mine, and believe that we will resume full operations" says
New Gold CEO Robert Gallagher.


New Gold's Cerro San Pedro Mine has been operating in full compliance with required
permits and government authorizations. The mine has had excellent operational
performance in 2009 and has an enviable record of meeting its environmental and
social responsibilities. The company will continue to actively safeguard the
environment and enhance the lives of residents of communities around the Cerro San
Pedro Mine.

New Gold will continue to provide updates on this matter.

About New Gold


New Gold is an intermediate gold mining company with the Mesquite Mine in the United
States, Cerro San Pedro Mine in Mexico and Peak Mines in Australia. The company is
expected to produce between 270,000 and 300,000 ounces of gold in 2009 for the
period of ownership, growing to over 400,000 ounces in 2012. In addition, New Gold
has a strong portfolio of mining, development and exploration assets in mining
friendly jurisdictions. For further information on the company, please visit
www.newgold.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain information contained in this press release, including any information
relating to New Gold's future financial or operating performance may be deemed
"forward looking". All statements in this press release, other than statements of
historical fact, that address events or developments that New Gold expects to occur,
are "forward-looking statements". Forward-looking statements are statements that are
not historical facts and are generally, but not always, identified by the words
"expects", "does not expect", "plans", "anticipates", "does not anticipate",
"believes", "intends", "estimates", "projects", "potential", "scheduled",
"forecast", "budget" and similar expressions, or that
events or conditions "will", "would", "may", "could", "should" or "might" occur.
All such forward looking statements are subject to important risk factors and
uncertainties, many of which are beyond New Gold's ability to control or predict.
Forward-looking statements are necessarily based on estimates and assumptions that
are inherently subject to known and unknown risks, uncertainties and other factors
that may cause New Gold's actual results, level of activity, performance or
achievements to be materially different from those expressed or implied by such
forward-looking statements. Such factors include, without limitation: New Gold's
anticipated synergies from the business combination
with Western Goldfields Inc. may not be realized; there may be difficulties in
integrating the operations and personnel of New Gold; significant capital
requirements; fluctuations in the international currency markets and in the rates
of exchange of the currencies of Canada, the United States, Australia, Brazil,
Mexico and Chile; price volatility in the spot and forward markets for commodities;
impact of any hedging activities, including margin limits and margin calls;
discrepancies between actual and estimated production, between actual and estimated
reserves and resources and between actual and estimated metallurgical recoveries;
changes in national and local government legislation in
Canada, the United States, Australia, Brazil, Mexico and Chile or any other country
in which New Gold currently or may in the future carry on business; taxation;
controls, regulations and political or economic developments in the countries in
which New Gold does or may carry on business; 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 Cerro San Pedro Mine; diminishing quantities or grades of reserves;
competition; loss of key employees; additional funding requirements; actual results
of current exploration or reclamation activities; changes in project parameters as
plans continue to be refined; accidents; labour disputes; defective title to
mineral claims or property or contests over claims to mineral properties. In
addition, there are risks and hazards associated with the business of mineral
exploration, development and mining, including environmental hazards, industrial
accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold
bullion losses (and the risk of inadequate insurance
or inability to obtain insurance, to cover these risks) as well as "Risks Factors"
included in New Gold's Annual Information Form filed on March 31, 2009 and
Management Information Circular filed on April 15, 2009, both available at
www.sedar.com