Peak Gold Mines, a wholly owned subsidiary of New Gold, is located near Cobar in New South Wales, Australia. The Peak operation currently consists of five producing gold and copper deposits that are being mined from underground to provide mill feed to a central gold/copper processing plant. These deposits comprise part of the greater Cobar Gold Field, a 10 kilometer long belt of historic gold and copper mines that extends northwards from the Perseverance-Peak Gold mine to the Tharsis working, immediately north of Cobar township. The Cobar Gold Field is located on the eastern margin of the Cobar Basin and has produced in excess of 3 million ounces of gold and 200,000 tonnes of copper since mining commenced in 1870. The ore bodies currently being mined by Peak Gold Mines are Peak, New Occidental, New Cobar, Perseverance, and Chesney.

The following is a summary of the five producing deposits:

Peak

The Peak orebody was the original discovery in 1980. Mining commenced in 1991 and was completed in 2002. Over one million ounces was produced from the Peak ore body during this period.

Mining recommenced in 2006 at the top of the Peak orebody approximately 300 meters below surface and extending 400 meters to the bottom of the orebody, approximately 715 meters below surface. In December 2007, Peak Mines completed development of a surface decline to connect the underground workings at Peak with the New Occidental ore body to the north.

New Occidental

The New Occidental deposit has been mined sporadically over the last century. In 2001, mining recommenced after 50 years. The New Occidental deposit is located three kilometers north of the Peak ore body and access is via the decline to the Peak workings.

New Cobar

The New Cobar gold deposit is located approximately 2.5 kilometers north of the New Occidental Gold Mine and, like New Occidental, has been mined intermittently over many years. The deposit was mined by open pit methods from 2000 until open pit operations were completed in February 2004, providing a total of 1.0 million tonnes of ore. Mining progressed underground in July 2004 and contines to provide an additional source of mill feed for the copper/gold processing plant.

Perseverance

The Perseverance deposit is located 900 meters south of the Peak ore body. Access is via a decline ramp from the Peak workings to the Zone A orebody. Development of the Perseverance resource commenced in mid 2002 and the first production stope was successfully brought on line in December 2003. Development has continued down dip and plunge from the Zone A ore body to the Perseverance Zone D ore body. Zone D is a relatively high grade deposit and has the bulk of the known gold resources at Peak Gold Mines.

Chesney Deposit

The Chesney deposit is located approximately 0.6 kilometers south of New Cobar and approximately 1.8 kilometers north of the New Occidental deposit. This deposit has also been mined intermittently in the past. Chesney is accessed from the New Cobar workings via a 700m long decline. The Chesney orebody was brought into production in April 2009. Chesney is a copper/gold deposit with the highest copper grades of all the deposits at Peak.