New Gold owns 100% of the Cerro San Pedro Mine through the Mexican Company, Minera San Xavier (“MSX”). The Cerro San Pedro Mine has a history of ongoing legal challenges related primarily to a land use dispute, which challenges have been successfully overcome. The municipality of Cerro de San Pedro has a municipal land use plan (Plan) that clearly designates the area of the Cerro San Pedro Mine for mining. In August 2011, Semarnat approved a new EIS for the Cerro San Pedro mine based on the Plan. The Cerro San Pedro Mine has an enviable record of compliance with Mexican and international environmental, health and security standards and enjoys overwhelming local support as a trustworthy corporate citizen.