MERGER: New Gold solidifies Rainy River with Bayfield offer

ONTARIO – Toronto's New Gold is consolidating its land position at the Rainy River gold project by making an offer to acquire Bayfield Ventures of Vancouver. Bayfield's assets include three properties adjacent to New Gold's project 160 km south of Kenora.

Bayfield shareholders are to receive 0.0477 of a New Gold common share for each Bayfield share held. The offer represents a premium of 47% per Bayfield share based on the 20-day volume weighted average trading prices of the two companies. The offer values Bayfield at approximately $16.6 million.

Of particular importance is the Burns Block that lies between the eastern margin of the proposed open pit and the underground Intrepid zone at the Rainy River project. The Burns Block has an indicated resource of 1.33 million tonnes grading 1.4 g/t Au and 16.0 g/t Ag. There is also an inferred resource of 2.89 million tonnes at 1.6 g/t Au and 16.4 g/t Ag. New Gold already holds surface rights to the Burns Block and one of the other Bayfield properties.

The Bayfield board has approved the transaction and recommended it to the company's shareholders. The arrangement will move forward if two-thirds of the Bayfield shareholders approve. Closing is expected in early 2015.

Additional details are posted at NewGold.com.