Metallica Resources Inc.
TSX : MR
AMEX : MRB

Metallica Resources Inc.
New Gold Inc.
TSX : NGD
AMEX : NGD

New Gold Inc.
Peak Gold Ltd.
TSX VENTURE : PIK

Peak Gold Ltd.

May 12, 2008 11:26 ET

Metallica Resources, New Gold and Peak Gold Announce Signing of Definitive Agreement for US$1.6 Billion Business Combination

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 12, 2008) - Metallica Resources Inc. ("Metallica Resources") (TSX:MR) (AMEX:MRB), New Gold Inc. ("New Gold") (TSX:NGD) (AMEX:NGD) and Peak Gold Ltd. ("Peak Gold") (TSX VENTURE:PIK) are pleased to announce that they have signed a definitive agreement in connection with the previously announced business combination (the "Transaction").

Each of Metallica Resources, New Gold and Peak Gold have scheduled shareholder meetings to be held on June 17, 2008 at which they will seek their respective shareholder approvals required in connection with the Transaction. It is anticipated that materials for such meetings will be mailed to shareholders on or about May 26, 2008. The Transaction is expected to close on or about June 30, 2008.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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