37 WWWNEW G O L D C O M TSXNGD NY SE Am er ic an NG D CONT ROL S AND PROCEDURES Disclosure Controls and Procedures The Com pan ys man age m ent with the partici pation of and under the supe rvi s i on of its President Chief Executive Off i cer a nd Chi e f Financi a l Officer ha s e v al uated the effective n e ss of the Com pan y s disclo su re controls and pro c ed ures a s define d in Rule s 13 a1 5 e a nd 15 d1 5 e und er th e Secu rities Exch ang e Act of 1934 as a m ende d E xcha nge Act and in Natio nal In strum e nt 5210 9 Ce rtification of Disclo su re in Issu ers Ann ual and Interi m Filings as at and for the ye ar en d ed De cem b e r 31 2019 Based o n that eval uation th e Co mpan y s Chief E x e c ut ive Officer an d Chi e f Fina n c ial Officer h a ve co ncl ude d that as at and for the year end ed Decem b e r 31 2019 the Com pan y s disclo sure cont rols and procedures were effective to provid e rea s on able assu ran c e that the in formatio n req u ired to be discl osed by th e Compa n y i n repo rts it files is re corded pro c e s sed summari ze d a nd rep o rte d within the ap prop riate time period s Internal Controls over Financial Reporting Ne w Golds manag eme n t with the participation of its Presi dent and Chief Exe c utive Officer and Chief Finan cial Officer is re spo n s ible for esta blishi ng and maintainin g adequ ate internal controls o v er finan cial repo rting Internal controls over finan cia l reportin g is a pro c e ss de sign ed by or under the su pervisi on of the Compa n ys prin cipal e x ecuti v e and p r inci pal finan cial officers an d effected by the Compa n ys Board of Dire cto r s ma nagem ent an d other p e rso nnel to pro v i de rea s o nabl e assuran c e rega rdi ng the reliability of financi a l repo rting and the prepa ration of financial st atem ents fo r external pu rp ose s in acco rdan ce with Internation a l Finan cial Re porting Stan d a rd s Ne w G o lds m anag e m ent asse ssed the effecti v en ess of th e Comp an ys in ternal control s over finan ci al repo rting a s of Decemb er 31 2019 b a se d on the 2013 upd ate d Committee of Sponso r ing Orga nization of the Tread wa y Commi ssion COSO and h a s co nclu ded that Ne w Gold s i n ternal cont ro ls over finan ci al repo rting a r e effecti v e a s of De cemb er 31 201 9 The effective ness of the Compan y s internal cont rol ove r finan cial repo rting a s of Decembe r 31 2019 ha s been au dited by Deloitte L L P the Compan ys ind e p ende nt regi stered p ublic a c countin g firm as stated in their repo rt i mmediatel y p r ecedin g the Comp an ys a udited con s ol idated fina nci a l statem ents for the ye a r ende d De ce mber 3 1 201 9 Limitations of Control s and Procedures The Co mpan ys ma nag em ent includin g its Preside n t and Chief Executive Off i cer a nd Chi e f Financi a l Officer belie ve that any internal controls and pr ocedures for finan cial rep o rting no matter how wel l con c ei ve d an d operated can pro v id e only re asona bl e not absolut e assu ra nce that the obj ectives of the control syste m are met Furthe rmo r e the desi gn of a c ontrol syst em must refl ect the fact that there are resou r ce con s traint s an d t he be nefits o f controls m u st be con s id e r ed relati ve t o their co sts Due to th e inherent limitations of all control sy stem s they can n o t provi de ab solute assu ran c e that all co ntrol issu es and inst ance s of fraud if any withi n the Comp an y h a ve b een p r e v ente d ando r detecte d These inhe rent limitations include the realit ies that judg ments in de ci sion ma k in g can be faulty and bre a kdo w n s can o c cu r becau se of simple error o r mistake Additionall y co ntrols can be circum vente d by the individu al acts of some pe rson s by coll usi o n of two o r m o re p eopl e o r by una utho rized override control The desi gn of a n y system of co n t rols is al so b a se d in part u pon ce rtai n a s sumption s a bout the likeli hood of future event s and there can be no assu ran c e that any design will su cce ed in achie v i ng its stated goal s unde r all potential future conditi ons Acco rdi ngly be ca use of the inh e r ent limitati ons in a co steffective co ntrol system misstat ement s due to e rro r or fraud m a y occur an d no t be detected