SOURCE: Newgold, Inc.

August 01, 2006 09:20 ET

Newgold, Inc. Appoints New Outside Director to Its Board of Directors

SACRAMENTO, CA -- (MARKET WIRE) -- August 1, 2006 -- Newgold, Inc. (OTCBB: NGLD) announced today that it has appointed Terrence Lynch to Newgold's Board of Directors. The appointment is effective as of July 31, 2006.

Mr. Lynch is a partner with Kingsmill Capital Partners, a financial advisory firm specializing in advising early stage growth companies, both public and private. Prior to Kingsmill Capital, he spent the last fifteen years operating start up companies in Industrial Products, Oil & Gas, and Media. Experienced in developing the unique financial structure that mitigates investor risk and maximizes the company's ability to secure growth capital, Mr. Lynch has raised corporate capital via debentures, limited partnerships, and royalty financing in addition to conventional equity placements. Mr. Lynch graduated in 1981 from St. Francis Xavier University with a joint honors degree in Economics and a BBA.

Continuing on Newgold's Board of Directors will be its current Chairman and Chief Executive Officer, A. Scott Dockter and James W. Kluber, its current Chief Financial Officer and Secretary.

Please visit Newgold's website at www.newgold.com for additional information about Newgold, Inc.

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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