SACRAMENTO, CA--(MARKET WIRE)--Nov 7, 2006 -- Newgold, Inc. (OTC BB:NGLD.OB - News) announced today that it has formalized its lease agreement for the "Antelope Peak" project. Scott Dockter, Newgold CEO, commented, "Antelope Peak is approximately 20 miles NW of the Pequop Range near Wells, Nevada. The project is 40-60 miles east and parallels the Carlin Trend. It consists of nearly 35,000 acres of virtually unexplored private ground. The Dalton and Winchell families have operated a successful private ranch on the property for over forty years. Until now, they were not open to exploring what we believe are the very exciting geological prospects of the property. This stands as Newgold's largest land lease to date."

Newgold's Economic Geologist, Jesse Wellman, stated, "This project has great potential upside. While further exploration is necessary to determine actual mineralization, we are excited about a number of features indicative of a potential gold-bearing system of the Carlin Type deposit model. It definitely warrants a thorough exploration program." Wellman comments, "AUEX Ventures has had some exciting results nearby."

Newgold is scheduled to take control of this property immediately, and has an extensive exploration plan put together to maximize this opportunity. "With $3,650,000 of funding we recently secured, we have adequate capital to move this project forward. We see it as another step forward in our plan to build Newgold into a major exploration and development company focused entirely on Nevada," explained Dockter.

Newgold expects to move towards its production phase in early 2007, subject to regulatory approval that is anticipated prior to the end of 2006. In addition to Relief Canyon, Newgold has announced its intention to conduct 40,000 feet of drilling at the Red Caps property nearby Barrick Gold's Pipeline project (Cortez-JV) in the highly mineralized Eureka-Cortez-Battle Mountain trend. Additional information about Newgold, Inc. can be found by visiting its web site at www.newgold.com.

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 those 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-QSBs and in Newgold's other filings with the Securities and Exchange Commission.

Contact Information:
Scott Dockter
President/CEO
(916) 449-3913
scott@newgold.com