SOURCE: Newgold, Inc.

September 19, 2006 12:48 ET

Newgold, Inc. Announces Relief Canyon Pond Improvements Authorized by NDEP; Construction to Commence Immediately

SACRAMENTO, CA -- (MARKET WIRE) -- September 19, 2006 -- Newgold, Inc. (OTCBB: NGLD) announced today that the re-construction of its process solution ponds will commence immediately, as the plans for revitalization have been approved by the Nevada Division of Environmental Protection (NDEP). In conjunction with Newgold's other recent announcements, the development of these ponds signals continued advancement towards production.

Newgold's rapid progression through Nevada state procedures is a result of its solid working relationship with the Bureau of Land Management (BLM) and the NDEP. Scott Dockter, New Gold CEO, stated, "Working together on a proactive basis with these agencies has enabled us to understand and deal with issues quickly and efficiently allowing us to expedite certain processes that will help us realize our goal of near-term production."

The existing pregnant and barren ponds, which manage the process solutions, are being cleaned and relined with the latest technology of fluid containment. In keeping with Newgold's new "Green Initiative," this will include new leak detection equipment and protocols. Additionally, a new solution transmission channel will be constructed between the site of the newly proposed heap leach pad and the existing solution ponds.

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 adjoining 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-QSB's and in Newgold's other filings with the Securities and Exchange Commission.

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