27 WWWNEW G O L D C O M TSXNGD NY SE Am er ic an NG D figure The ta ble Su s tainin g Capital Exp enditure Re c oncili ation re con c ile s New Golds su stai ning capital to its cash flow statem en t The definition of sust a i ning versu s nonsu staini n g is simila rly applied to capitali ze d an d exp e n s ed e x plo r ation co sts an d lea s e paym ents E x plo r ation co sts an d lea s e paym ents to develop ne w operation s or that relate to major p r oje c ts at exi s tin g operation s whe r e the s e proje c ts a r e exp e cte d to materiall y increa se produ ction are cla s sified as no nsustai ning and are e x cluded Gol d equi valent o u n ce s of copp er an d sil v e r prod uced o r sold in a q uart e r a r e comp u t ed usi ng a consi s tent ratio of coppe r an d silve r pri c e s to the gold price and m u lt iplyin g this ratio by the pound s of cop per and sil v e r oun ce s pro d u c ed o r sol d d u ring that qu a r ter Co sts e x clud ed from alli n su stainin g costs are no n su stainin g ca pital expen ditu re s no nsu staining le ase paym ents an d exploration co sts fi nan cing co sts t a x e x p e n s e and tra n sacti on cost s a s sociate d with merg ers acq u isition s and divest itures and any items that are dedu cted for the purpose s of adjusted earni ng s Ne w Gold h a s cal c ul ated Ne w Afton allin sustai ning cost s pe r ou nce n e t of byprodu ct sil v e r and cop per sale s revenu e for comp ara t ive pu rpo s e s Allin su stai ning co sts p e r gold oun ce net of byp rod u ct sale s an d are divi ded b y gold oun ce s sold to arrive at a per ounc e figure New Gold note s that in connecti on with New Afton the copper b y prod u ct re ven ue wa s suffici ent ly larg e to re sult in a negati v e all in susta i ning cost To pro v ide a dditional information to investors Ne w Go ld ha s also calculated Ne w Afton allin su staini ng co sts p e r o u n c e o n an i ndividual copro d u ct ba si s whi c h a ppo rtion s the allin su st aining co sts t o ea ch metal prod uced on a percenta ge of revenue ba sis an d su bseque ntly di vid e s the am oun t by the total gold oun ce s silver ou nces or pou nd s of cop per sold as the case may be to arrive at pe r ou nce o r pe r po und figures