New Gold Granted Injunction to Temporarily Lift Shutdown Order at Cerro San Pedro Mine

Anonymous went from the buy side in the morning to the sell side by days end.

Smart $$$ cashed out on the good news.

New Gold Granted Injunction to Temporarily Lift Shutdown Order at Cerro San Pedro Mine 15:06 EST Monday, December 14, 2009

VANCOUVER, Dec. 14 /CNW/ - New Gold Inc. ("New Gold") (TSX and NYSE AMEX-NGD) today announces that it has been granted an injunction related to the suspension of operations at its Cerro San Pedro mine in Mexico. The court ruling temporarily overturns the Mexican environmental enforcement agency's order to suspend mining operations at the Cerro San Pedro mine. New Gold's wholly owned Mexican subsidiary, Minera San Xavier ("MSX"), filed the appeal seeking to overturn the suspension order on December 3, 2009. Mining operations will recommence at the Cerro San Pedro mine and are expected to continue through the duration of the appeal trial.

"We are very pleased with the court's decision and view this as an important interim step as we continue to work with the government and administrative bodies to find a permanent and mutually-beneficial solution," says Robert Gallagher, New Gold President and CEO. "We believe the information to be provided during the trial should ultimately result in a positive long-term outcome for the company, and equally as important, for the employees at MSX, their families and all of the other key stakeholders of New Gold."

The court decision states that to grant the injunction would not prejudice the social interest or contravene the public order. Over 500 employees and contractors at the Cerro San Pedro Mine and 1,500 indirect jobs could have been impacted if the mine suspension was prolonged. The company has and continues to strive to improve the quality of life of its employees and that of the surrounding communities through various initiatives including: enhancement of education, provision of free medical services and development of improved local infrastructure.

MSX has an enviable record of compliance with Mexican and international environmental standards and enjoys a high degree of acceptance by a majority of the residents in the area surrounding the mine due to its outstanding record of caring for the environment and its positive work in the communities.

New Gold will continue to provide updates on this matter.

About New Gold

New Gold is an intermediate gold mining company with the Mesquite Mine in the United States, Cerro San Pedro Mine in Mexico and Peak Mines in Australia. The company is expected to produce between 270,000 and 300,000 ounces of gold in 2009, growing to over 400,000 ounces in 2012 from assets currently owned by the company. New Gold has a strong portfolio of mining, development and exploration assets in mining friendly jurisdictions. For further information on the company, please visit www.newgold.com.

STOCKS-TSX rises as oils get boost from Exxon deal

CANADA 2 hours ago via Thomson Reuters

* TSX up 0.97 percent at 11,534.52

* Energy sector boosted by $30 billion Exxon deal

* Fertilizer shares fall after Terra rejects new CF offer

* Dubai receives $10 billion bailout from Abu Dhabi (Adds details, comments)

By Irene Kuan

TORONTO, Dec 14 (Reuters) - Toronto's main stock index jumped 1 percent on Monday as Exxon Mobil Corp's $30 billion deal to buy XTO Energy Inc spurred hopes for more acquisition moves in the energy sector.

Shares of EnCana Corp , up 5.76 percent at C$31.76, and Suncor Energy Inc , up 1.85 percent at C$36.96, played the biggest role in leading the index higher.

Exxon's deal raised expectations of a wave of consolidation in the energy sector as cash-rich companies move to snap up smaller players with attractive assets.

"That put an undertone to the (Canadian) market," said Paul Gardner, partner and portfolio manager at Avenue Investment Management.

"It makes a lot of sense. Exxon's got the capital, natural gas is near historic lows and this is probably a perfect opportunity to deploy capital,"

At 11:50 a.m. (1650 GMT), the S&P/TSX composite index <.GSPTSE> was up 110.59 points, or 0.97 percent, at 11,534.52.

Other top gainers on the index were Canadian Natural Resources , up 2.43 percent at C$70.44, and Talisman Energy , up 3.2 percent at C$18.68.

The Exxon deal added impetus to recent economic data that has spurred optimism in the market.

"I get the general sense people have sort of bought into the fact that economic conditions have more than stabilized and we're slowly moving up," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.

Markets were also helped by news that Abu Dhabi threw its debt-laden neighbor Dubai a surprise $10 billion lifeline on Monday to head off a bond default.

Weighing on the market were shares of fertilizer makers, which fell after Terra Industries rejected a sweetened takeover offer from rival CF Industries .

Potash Corp was the biggest drag on the index, down 2.43 percent to C$122.93, while rival Agrium fell 1.31 percent at C$65.53 ($1=$1.06 Canadian) (Reporting by Irene Kuan; Editing by Peter Galloway)