SOURCE: Newgold, Inc.

May 23, 2006 10:15 ET

Newgold, Inc. Nears Completion of Environmental Work at Its Relief Canyon Mine in Nevada

SACRAMENTO, CA -- (MARKET WIRE) -- May 23, 2006 -- Newgold, Inc. (OTCBB: NGLD) has announced that it has completed approximately 75% of all environmental work at the Relief Canyon Mine as previously required by the Nevada Department of Environmental Protection (NDEP) in an Administrative Order on Consent (AOC) issued in May 2005. Additionally, Newgold expects to be completed with all aspects of the AOC within the next 30 days. The purpose of the AOC was to bring the mine back into environmental compliance.

The work required to be completed, included among other things, repair of heap leach pad liners, engineering and contouring of new drainage ditches, sampling solution from the existing ponds and draining as necessary, installing new monitor wells, and the posting of a $243,204 environmental performance bond. Additionally, all Water Pollution Control fees have been paid.

During the course of this project Newgold hired Dyer Engineering Consultants, Inc. (DEC) as its lead engineering firm. Newgold expects to continue to use DEC for its permitting and compliance engineering work at the Relief Canyon mining project and the Crescent Valley and Red Caps exploration projects in Nevada. DEC, headed by Dan Dyer, offers a broad range of civil, geotechnical, and environmental engineering services to the mining industry.

Going forward, Newgold's business will be to explore, develop and operate various mining properties located in Nevada. It currently owns the Relief Canyon mine project in Pershing County, Nevada, with mining infrastructure in place as previously constructed by Newgold. In late January 2006 Newgold also acquired a joint venture interest in, and is the manager of the Crescent Red Caps Joint Venture, which is currently focused on exploration activities of potential mining projects in Lander County, Nevada. The joint venture includes the Red Caps Project which covers over 1900 acres and the Crescent Valley project which covers over 750 acres, for a total of over 2600 acres on the two properties. Located on the Battle Mountain-Eureka mineral belt and the Cortez trend, these mineral trends are parallel to the Carlin Trend about 50 kilometers to the east. These projects are located close to Barrick Gold Corporation's (NYSE) Cortez and Pipeline mine holdings which are currently in production. Newgold plans to carryout comprehensive exploration and development programs on its properties.

Please check Newgold's recently enhanced website at 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 that 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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