SOURCE: Newgold, Inc.

October 12, 2006 15:43 ET

Newgold to Become Firstgold; Announces Intent to Change Company Name

SACRAMENTO, CA -- (MARKET WIRE) -- October 12, 2006 -- Newgold, Inc. (OTCBB: NGLD) announced today its plans to change the company name from "Newgold, Inc." to "Firstgold Corp." This name change is subject to approval at this year's annual shareholders meeting. Scott Dockter, Chairman and CEO, stated, "The name change is an important part of our plan to increase investor awareness of the Company. There is a Canadian mining company named 'New Gold' and we don't want our investors confused. We are very excited about our future prospects and we believe many investors are not aware of our exploration and development plans and current progress. Going forward we have a multifacitated plan to reach out to the investment community to ensure our company is fairly valued relative to our peers. Changing the name is a logical move that we believe will be well received."

The shareholder's meeting is set for October 20, 2006 at the Incline Village Championship Golf Course and Resort near Lake Tahoe, NV. Beginning at 9 AM, the shareholders will vote on this year's ballot items. After the official meeting is adjourned, shareholders will then be given an in-depth presentation of corporate profiles, properties, and progress. Shareholders will be invited to participate in a question and answer session regarding the company. Following the meeting, a tour bus will take interested shareholders on a 6-hour tour of the Relief Canyon Mine Property. Guided by Scott Dockter, shareholders will have a firsthand view of Newgold's near term production mine.

In order to ensure a quick response, Newgold is asking that all shareholder questions regarding this event be sent via email to Phil@newgold.com.

Newgold expects to move towards its production phase in early 2007, subject to regulatory approval that is anticipated prior to the end of 2006. In addition to Relief Canyon, Newgold has announced its intention to conduct 40,000 feet of drilling at the Red Caps property that is nearby Barrick Gold's Pipeline projects in the highly mineralized Eureka-Cortez-Battle Mountain trend. Additional information about Newgold, Inc. can be found by visiting its web site at www.newgold.com.

Safe Harbor Statement

The matters discussed in this release contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended that involve risks and uncertainties. Although Newgold believes that the expectations reflected in such forward-looking statements are reasonable, the forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected. Newgold cautions investors that any forward-looking statements made by Newgold are not guarantees of future performance and those actual results may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those reflected in forward-looking statements include, but are not limited to, risks and uncertainties regarding the actual mineralization of Newgold's mining properties, the unproven nature of and potential changes to Newgold's business model, the risk that the capital and other resources that Newgold will need to exploit its business model will not be available, and the risks discussed in Newgold's Form 10-KSB and in Newgold's 10-QSBs and in Newgold's other filings with the Securities and Exchange Commission.

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