Shareholders of Silver Quest Resources Ltd. Approve Plan of Arrangement With New Gold Inc.

Press Release: Silver Quest Resources Ltd. – 31 minutes ago

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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2011) - New Gold Inc. ("New Gold") (TSX:NGD.TO - News)(NYSE Amex:NGD) and Silver Quest Resources Ltd. ("Silver Quest") (TSX VENTURE:SQI) are pleased to announce that at a special meeting of Silver Quest shareholders held on Thursday, December 15, 2011 in Vancouver, British Columbia (the "Meeting"), the Silver Quest shareholders voted overwhelmingly in favour of a special resolution to approve the proposed plan of arrangement with New Gold (the "Arrangement").

Upon closing of the Arrangement, New Gold will acquire Silver Quest's 25% interest in the Davidson Property, which forms the northern half of the Blackwater Project and in which New Gold currently holds the remaining 75% interest, as well as Silver Quest's Capoose Property.

As part of the Arrangement, Silver Quest's remaining properties, including its 3Ts Gold Project in central British Columbia, will be spun-out into Independence Gold Corp. ("Independence") and New Gold will purchase, on a private placement basis, $3.5 million of Independence common shares, which will result in New Gold holding 9.9% of the outstanding common shares of Independence.

At the Meeting, Silver Quest shareholders also voted to approve the stock option plan of Independence. Additionally, the TSX Venture Exchange has advised that it has conditionally approved the listing of Independence, subject to, amongst other things, review by the exchange of final documentation.

For additional details of the Arrangement, please see Silver Quest's management information circular dated November 16, 2011 and New Gold and Silver Quest's joint press releases dated November 7, 2011 and October 17, 2011, all having been filed on New Gold and Silver Quest's respective profiles on SEDAR at www.sedar.com.

Silver Quest's application to the Supreme Court of British Columbia to obtain the final court order approving the Arrangement is expected to take place on Friday, December 16, 2011. Assuming court approval is obtained and that all other conditions to the Arrangement are satisfied or waived, the Arrangement is expected to become effective on or around December 20, 2011.

About New Gold Inc.

New Gold is an intermediate gold mining company. New Gold has a portfolio of three producing assets and three significant development projects. The Mesquite Mine in the United States, the Cerro San Pedro Mine in Mexico and Peak Gold Mines in Australia are expected to produce between 380,000 and 400,000 ounces of gold in 2011. The fully-funded New Afton project in Canada is scheduled to add further growth in 2012. In addition, New Gold owns 30% of the world-class El Morro project located in Chile and, in June 2011, New Gold acquired the exciting Blackwater Project in Canada. For further information on New Gold, please visit www.newgold.com.

About Silver Quest Resources Ltd.

Silver Quest is a gold and silver exploration company, whose main areas of interest are central British Columbia and the White Gold District of the Yukon. Silver Quest maintains a portfolio of highly prospective projects, ranging from grassroots exploration through advanced stage resource expansion. The Company is poised to add shareholder value through project advancement, while evaluating early to advanced stage gold and silver projects for possible acquisition. For further information on Silver Quest, please visit www.silverquest.