New Gold and Western Goldfields report that RiskMetrics Group and Glass, Lewis and Co. have each formally recommended that their subscribers vote FOR the proposed business combination of New Gold and Western. RiskMetrics and Glass, Lewis are leading providers of proxy research and voting recommendations to institutional investors in Canada and the US. Highlights of the Transaction include a diversified gold production base from three gold mines in mining-friendly jurisdictions with forecaste gold production of some 335,000 oz in 2009 and organic growth with cash on hand and cash flow from operations  sufficient to fund development of the New Afton copper-gold project in British Columbia, Canada

Under the terms of the Transaction, shareholders of Western will receive one common share of New Gold and C$0.0001 in cash for each common share of Western. Upon completion of the transaction, existing New Gold and Western shareholders will own approximately 58% and 42% of the combined company, respectively. It is expected that the transaction will deliver on industry consolidation and production growth in a rising gold price environment. It will also enhance market presence, providing increased liquidity

New Gold is an intermediate gold mining company with operating assets in Mexico and Australia and two development projects in Canada and Chile. www.newgold.com. Western is a gold production and exploration company with a focus on precious metal mining opportunities in North America. The Mesquite mine, currently the company’s sole asset, was brought into production in January 2008. www.westerngoldfields.com