New Gold Announces Launch of $300 Million Senior Notes Offering (prnews)

(All figures are in US dollars unless otherwise indicated)

VANCOUVER, March 27, 2012 /PRNewswire/ - New Gold Inc. ("New Gold") (TSX and NYSE AMEX:NGD) today announces that it intends to offer a $300 million aggregate principal amount of Senior Notes due 2020 (the "Notes"). The interest rate and other terms of the Notes will be determined based on prevailing market conditions. New Gold intends to use the net proceeds of the Notes to fund the redemption of its 10% Senior Secured Notes due 2017 and for general corporate purposes.

The Notes will be offered and sold in the United States only to qualified institutional buyers in accordance with Rule 144A under the United States Securities Act of 1933, as amended (the "Securities Act"), and outside the United States in reliance on Regulation S under the Securities Act. The Notes will be offered and sold in Canada on a private placement basis pursuant to certain prospectus exemptions.

The offer and sale of the Notes will not be registered under the Securities Act and the Notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall there be any offer or sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful.