5 WWWNEW G O L D C O M TSXNGD NY SE Am er ic an NG D CORPORAT E DEVELOPMENT S In the first quarter of 202 0 New Gol d entered into a strategi c pa rtnership with Ontario Te achers Pensi o n Plan Onta r i o Teach e rs Under the term s of the strategi c pa rtnership Ont a rio Tea c h e rs acq u ired a 460 free cash flo w interest in the Ne w Afton mine for upfro nt cash p r o c e e d s of 300 milli on Ontari o Teache rs ha s an option t o co nvert the free ca sh flo w in te re st into a 460 j o i n t ventu r e i n tere st in Ne w Afton in four yea r s or h a ve their free cash flow inte rest remai n as a free cash flow interest a t a reduce d rate of 425 The procee ds from the transactio n ha ve improved Ne w Gold s finan cial flexibi lity and will be use d to redu ce net indebte dne ss The transactio n clo s ed o n March 31 2020 Duri ng the qu arter the Co mpan y rele ased update d life of mine results for Rain y Rive r and New Afton At Rain y Ri ve r the Com pan y has e v al uate d vari ou s ope n pit and und erg r ou nd mini ng scen ario s that prio ritize d mining in are a s that g ene rate po sitive m a rgin s a nd d r i v e me anin g fu l ca sh flo w o v er the b a lan c e of a shorte r but more prof itable mine life At New Afton the Comp any ha s focu sed on de ri sking the exe c ution of the C zone incl uding the finali z at ion of the mine design ta ili ngs disposal plan subsid ence and stabilization and advan cing pe rmitting effort s Natio nal In strum ent 43 101 te chni cal rep o rts fo r th e mine s were filed and th e repo rts a r e a v ailable u nde r Ne w Gold s p r ofile on SED A R at wwwsed a rco m and o n the Com p a n y s web s ite at wwwne wg oldcom Also du ring th e quarte r the novel co ron a v iru s COVID 1 9 be cam e a global pa n demic resulting in action s by n a tional a nd lo cal g o ve rnme nts a nd busi n e s ses t hat ha ve had signifi cant i m pact on the eco nom y a n d on indivi dual busi n e s ses inclu d ing New Gold There wa s a tempo r ary two wee k shutd o wn o f the Rainy River Mi ne fro m March 2 0 to April 2 to allow the l o cal workfo rce to complete a 14 day peri od of selfi solatio n recomme nde d by the Canadian go ve rn ment after travel outsid e of Canada as frequ ent bord e r cro s sing s to the United States are a common practi ce in the regi on ne ar th e Rainy Ri ve r Mi ne On Ap ril 3 operation s resume d usi n g a local wo rkforce with op eration s g r ad ually rampi n g up over the coming wee k s refe r to the Comp an y s A p ril 3 2 020 pre s s rel e a s e for fu rthe r i n formatio n Both the Briti s h Colu mbia and Ontari o pro v in cial g o v ernme n ts o r dere d no nessential bu sin e ss e s to cl ose to help sto p the spread of COVID19 As of the date of this MDA New Gold s operation s fit within the current list of essential busin esse s relate d to these o r d e r s However there i s no g u a rante e that Ne w Gold s o peratio ns will not be suspe nded o r shut down in who l e or in part i n the future a s a re sult of revi sion s to the list of esse ntial busi nesses mad e by the provin ce s of Ontari o British Colu mbi a or both a s t he COVID19 pand emic progre s se s Ple a se se e the Enterp r i s e Ri sk Mana gem ent and Ri sk Facto r s Oth e r Ri sks COVID1 9 se ction belo w a s well a s the Risk Fa ctors se ction of the Compa n y s most re ce nt Annual Information Form for further inf o rmatio n OUT L OOK F O R 2020 In light of th e COVID19 pandemi c the Com pan y is asse ssi n g potential ri sks an d de velopin g viabl e contin gen cy plan s that en able u s to sta y ah ead of a n y pote n tial sa fety and healt h risks for o u r emplo y ee s and mem bers of our Indig enou s and ot her lo cal com m uni ties Designated team s from rel e va nt function s are proa ctivel y planni ng for vario u s conti ngen cie s and resp ondin g to daily ch ang es and ci rcu m stan ce s We are p r oa ctivel y prepa ring fo r the potentia l spread of COVID1 9 to a n y of Ne w G o lds lo cation s with spe c ific busi n e ss cont inuity pla n s in place Ne w Gold ha s taken nu m e rou s step s to ensure nee ds a r e bei ng addresse d in local com m unities O u r operation s h a ve sha r ed a c tion plan s a nd pre v e n tative mea s u r e s being imple m ented whil e see k ing a n d con s id erin g in put from our e m ployee s co ntracto r s and comm unitie s to ensure we are deliveri n g re spo n si ve action s con s i s tent with broade r effort s Acro ss the Comp an y we contin ue to identify a n d impleme n t