NewWest Gold Corporation

NewWest Gold Corporation Reports Third Quarter Results

    Lakewood, Colorado, November 9 (ots/PRNewswire) -

@@start.t1@@      - All figures in US Dollars
        Third Quarter Highlights
        ------------------------
        -    Successfully completed IPO; listed on TSX
        -    Announced Phase One drilling program results at Long Canyon
        -    Subsequent to quarter-end, NewWest reported multiple high grade
              intercepts at its Sandman project and positive results from roadcut
              rock-chip samples at Long Canyon@@end@@

    NewWest Gold Corporation (TSX:NWG) ("NewWest"), one of the largest holders of precious metals mineral rights projects in Nevada's gold trends,  today announced its third quarter results for the three months and nine  months ended September 30, 2006. The net loss for the three months ended  September 30, 2006 was US$3.1 million or US$0.06 per share, compared to  US$1.2 million or US$0.02 per share in the comparable period last year. The  net loss for the nine months ended September 30, 2006 was US 5.3 million or  US$0.10 per share compared to US$4.6 million or US$0.09 per share in the  comparable period last year. The increase in losses can primarily be attributed to increased exploration drilling expenses related to the Sandman and Long Canyon projects as well as stock-based compensation expense and  bonuses paid in conjunction with the IPO. Total expenses for the quarter  were US$3.3 million, compared to US$1.3 million last year.

    On August 29, 2006, NewWest successfully completed an initial public  offering (IPO) raising net proceeds of US$15.8 million to help fund the  advancement of its projects along the pipeline and into production. As a  result of the IPO, NewWest's working capital was US$13.2 million at the end  of the third quarter. The Company anticipates that this level of working  capital will be sufficient to fund its planned exploration activities  through 2007.

    "Since our IPO, NewWest has made tremendous progress on our active projects as demonstrated by the results of our Phase One drill programs at  Sandman and Long Canyon," said Steve Alfers, President and Chief Executive  Officer. "The working capital provided by our IPO positions us to  aggressively pursue our Phase Two drill programs, allowing us to expand our  knowledge of the mineralization and structure of the mineralization at both  projects and move towards establishing additional resources."

    Full interim consolidated financial statements and notes, as well as  management's discussion and analysis, are available on NewWest's website at  www.newwestgold.com, or www.sedar.com.

    Project Update

    During the third quarter, NewWest announced results from its Phase One  drilling program at Long Canyon, one of NewWest's principal projects in the  Eastern Great Basin area of Elko County, Nevada. The drilling program  successfully extended the known mineralization approximately 500 feet to  the Northeast and 1,200 feet to the Southwest, defining a current  cumulative strike length of approximately 3,000 feet. Gold mineralization  remains open in all directions and at depth. The best results at Long  Canyon include grades of 0.585 ounces of gold per ton (oz Au/ton) over 45  feet and 0.092 oz Au/ton over 85 feet. For a full description of the Long Canyon Phase One results, please see the Company's news release dated September 21, 2006. The release, drill results and a drill hole map are  available at www.newwestgold.com.

    Roadcut rock-chip sample results from Long Canyon were released subsequent to the end of the third quarter, supporting the interpretation  of structure and stratigraphy of the geologic model. Phase Two drilling at  Long Canyon is scheduled to begin this month to further define the size and  geometry of the mineralization. For a full description of the Long Canyon  roadcut rock-chip results, please see the Company's news release dated  October 31, 2006. The release and a map of the locations of the mineralized  roadcut intervals are available at www.newwestgold.com.

    NewWest and AuEx Ventures Inc. ("AuEx") agreed by way of a letter of  intent to complete a definitive joint venture agreement for the Long Canyon  project whereby the two parties will combine their respective land  positions in the Long Canyon Area. The joint venture agreement is currently  being negotiated and is expected to be completed in the near future. It is anticipated that under the terms of this agreement, the Company will act as operator and may earn a 51% interest in the consolidated project if it spends US$5 million on the project over a five year period. After completion, the  Company may elect to carry AuEx through feasibility, if warranted, thereby earning an additional 14%.

    Subsequent to quarter-end, NewWest reported multiple high-grade intercepts at its Phase One drilling program at its Sandman Project in  Humboldt County, Nevada. The drilling continued to produce high-grade  intercepts associated with known mineralization at Silica Ridge, Southeast  Pediment and North Hill. The drilling also identified new gold  mineralization at Abel Knoll, including 420 feet of continuous  mineralization with an average grade of 0.087 oz Au/ton. The success of the  Phase One drilling demonstrates the potential of the district exploration  program. Phase Two drilling at Sandman, which includes an additional 100  holes, is underway. For a full description of the Sandman Phase One results,  please see the Company's news release dated October 16, 2006. The release,  drill results and drill hole maps are available at www.newwestgold.com.

    Conference Call and Webcast

    Management will host a conference call at 10 a.m. ET on Thursday, November 9, 2006 to discuss the third quarter results. The call can be  accessed by dialling 416-644-3422 or 1-866-250-4907. A replay of the call  will be available until midnight on November 23, 2006. It can be accessed  by dialing 1-877-289-8525 or 416-640-1917 and entering the passcode  21206625 followed by the number sign. The webcast can be accessed at  NewWest's web site at www.newwestgold.com/net.

    Qualified Person

    Michael Gustin, Ph.D., of Mine Development Associates, Reno, Nevada,  is NewWest's qualified person as defined by NI43-101 and has reviewed and  approved the technical data in this news release.

    About NewWest Gold Corporation

    NewWest Gold Corporation is one of the largest holders of precious metals mineral rights in Nevada's gold trends, spanning approximately 623, 000 acres. NewWest holds a total of 19 exploration projects, including two  projects with measured and indicated resources that are NI43-101 compliant.  NewWest's goal is to advance its projects along the pipeline into  production. NewWest has active drilling programs underway at Northumberland,  Sandman and Long Canyon.

    Forward-Looking Statements

    This news release includes certain "forward-looking statements" within  the meaning of Canadian securities laws. Forward-looking statements involve  risks, uncertainties and other factors that could cause actual results,  performance, prospects and opportunities to differ materially from those  expressed in such forward-looking statements. Forward-looking statements in  this news release, include but are not limited to, economic performance,  statements regarding potential mineralization and reserve exploration, and  future plans and objectives of NewWest Gold Corporation including future exploration and development. Any number of important factors could cause  actual results to differ materially from these forward-looking statements,  including those set out in the Company's prospectus dated August 18, 2006,  as well as future results. Although the Company believes that the  assumptions and factors used in preparing the forward-looking statements  are reasonable, undue reliance should not be placed on these statements,  which only apply as of the date of this news release, and no assurance can  be given that such events will occur in the disclosed timeframes or at all.  The Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future  events or otherwise.

@@start.t2@@                                            NEWWEST GOLD CORPORATION
                              INTERIM CONSOLIDATED FINANCIAL STATEMENTS
                                         (EXPRESSED IN U.S. DOLLARS)
                                  FOR THE THREE AND NINE MONTHS ENDED
                                                SEPTEMBER 30, 2006
                                  (Unaudited - Prepared by Management)
                                            NEWWEST GOLD CORPORATION
                                      (a British Columbia Corporation)
                                         CONSOLIDATED BALANCE SHEETS
                                                      (US Dollars)
                                                                                                 As at
                                                                            -----------------------------
                                                                                September 30,  December 31,
                                                                                      2006                 2005
                                                                              -------------- -------------
                                                                                 (Unaudited)
        Assets
        Current
          Cash and cash equivalents.................$  13,553,944  $         24,251
          Accounts receivable trade.................          98,205              14,900
          Accrued interest receivable...............            1,853              20,656
          Prepaid expenses and other................         489,143                4,953
                                                                              -------------- -------------
          Total current assets......................    14,143,145              64,760
        Property, plant and equipment (net).........      4,390,424         4,329,735
        Northumberland Project......................    10,187,605        10,187,605
        Reclamation bonds...........................         987,720            947,506
                                                                              -------------- -------------
        Total assets................................$  29,708,894  $  15,529,606
                                                                              -------------- -------------
                                                                              -------------- -------------
        Liabilities and Shareholders' Equity
        Current
          Accounts payable trade and
            accrued expenses.........................$        871,132  $        764,457
          Due to Predecessor Companies..............          22,765            919,545
          Current portion of reclamation costs......          73,253              72,196
                                                                              -------------- -------------
          Total current liabilities.................         967,150         1,756,198
        Long-term reclamation costs.................         938,310            892,152
        Shareholders' equity(Note 3)................    27,803,434        12,881,256
                                                                              -------------- -------------
        Total liabilities and shareholders' equity..$  29,708,894  $  15,529,606
                                                                              -------------- -------------
                                                                              -------------- -------------
        Approved on Behalf of the Board,
        Signed:  Marvin Kaiser
        Director
        Signed:  Richard Graff
        Director
                      The accompanying notes are an integral part of these
                                              financial statements.
                                            NEWWEST GOLD CORPORATION
                                      (a British Columbia Corporation)
                        CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
                                            (Unaudited, US Dollars)
                                                                                      Three Months Ended
                                                                                          September 30,
                                                                            -----------------------------
                                                                                      2006                 2005
                                                                              -------------- -------------
        Revenues                                                         $        126,622  $         74,970
        Expenses:
          Exploration(Note 7)......................        1,673,826            613,429
          Operations...............................            57,919              39,266
          Reclamation accretion expense............            16,650              18,029
          General and administrative...............        1,567,895            581,647
          Depreciation and amortization............              6,657                4,600
                                                                              -------------- -------------
          Total expenses...........................        3,322,947         1,256,971
        Other income (expense):
          Interest expense(Note 5).................                    -                      -
          Interest income..........................            63,542                5,164
          Other income (expense), net..............                    -                (500)
                                                                              -------------- -------------
          Total other income (expense).............            63,542                4,664
                                                                              -------------- -------------
        Loss from continuing
         operations before taxes..................      (3,132,783)      (1,177,337)
        Income tax provision.......................                    -                      -
                                                                              -------------- -------------
        Loss from continuing operations...........      (3,132,783)      (1,177,337)
        Loss from discontinued operations..........                    -                      -
                                                                              -------------- -------------
        Net loss.................................. $  (3,132,783) $  (1,177,337)
                                                                              -------------- -------------
                                                                              -------------- -------------
        Accumulated deficit beginning of period....
        Accumulated deficit end of period..........
        Loss per share from continuing operations.. $         (0.06) $          (0.02)
                                                                              -------------- -------------
                                                                              -------------- -------------
        Net loss per share......................... $         (0.06) $          (0.02)
                                                                              -------------- -------------
                                                                              -------------- -------------
        Weighted average shares outstanding........      52,945,475        50,000,000
                                                                              -------------- -------------
                                                                              -------------- -------------
                                                                                        Nine Months Ended
                                                                                            September 30,
                                                                            -----------------------------
                                                                                        2006                 2005
                                                                              -------------- -------------
        Revenues                                                         $        192,337  $        106,040
        Expenses:
          Exploration(Note 7)......................        2,842,895         1,268,461
          Operations...............................            92,525              43,002
          Reclamation accretion expense............            49,948              56,277
          General and administrative...............        2,604,434         1,594,347
          Depreciation and amortization............            17,162              13,536
                                                                              -------------- -------------
          Total expenses...........................        5,606,964         2,975,623
        Other income (expense):
          Interest expense(Note 5).................                    -      (1,640,976)
          Interest income..........................          105,309              15,761
          Other income (expense), net..............            11,055              15,873
                                                                              -------------- -------------
          Total other income (expense).............          116,364      (1,609,342)
                                                                              -------------- -------------
        Loss from continuing
         operations before taxes...................      (5,298,263)    (4,478,925)
        Income tax provision                                                         -                      -
                                                                              -------------- -------------
        Loss from continuing operations............      (5,298,263)    (4,478,925)
        Loss from discontinued operations..........                    -         (130,264)
                                                                              -------------- -------------
        Net loss................................... $  (5,298,263) $ (4,609,189)
                                                                              -------------- -------------
                                                                              -------------- -------------
        Accumulated deficit beginning of period....$(144,963,254) $(138,598,843)
                                                                              -------------- -------------
                                                                              -------------- -------------
        Accumulated deficit end of period..........$(150,261,517) $(143,208,032)
                                                                              -------------- -------------
                                                                              -------------- -------------
        Loss per share from continuing operations.. $          (0.10) $         (0.09)
                                                                              -------------- -------------
                                                                              -------------- -------------
        Net loss per share......................... $          (0.10) $         (0.09)
                                                                              -------------- -------------
                                                                              -------------- -------------
        Weighted average shares outstanding........      50,992,615        50,000,000
                                                                              -------------- -------------
                                                                              -------------- -------------
                      The accompanying notes are an integral part of these
                                                financial statements.
                                            NEWWEST GOLD CORPORATION
                                      (a British Columbia Corporation)
                                  CONSOLIDATED STATEMENTS OF CASH FLOW
                                            (Unaudited US Dollars)
                                                                                      Three Months Ended
                                                                                          September 30,
                                                                            -----------------------------
                                                                                      2006                 2005
                                                                              -------------- -------------
        Cash flows from operating activities:
        Loss from continuing operations............ $  (3,132,783) $ (1,177,337)
        Adjustments to reconcile loss from
         continuing operations to net cash used
         in operating activities:
          Depreciation and amortization............              6,657                4,600
          Reclamation accretion expense............            16,650              18,029
          Reclamation expenditures.................            (2,733)                    -
          Stock-based compensation(Note 3).........          653,126                      -
          Loss on disposal of assets...............                    -                  500
          Interest accrued on loans to
            Ultimate Shareholder....................                    -                      -
          Changes in operating working capital:
              Accounts receivable trade..............          (38,002)         (59,816)
              Accrued interest receivable............            39,042            (5,164)
              Accounts payable trade
                and accrued expenses..................          624,840            128,406
              Loan from Predecessor Companies........          943,776            501,261
              Repayment of Loan from
                Predecessor Companies.................      (1,222,199)                    -
              Prepaid expenses and other.............         (421,239)              5,937
                                                                              -------------- -------------
          Net cash used in operating activities
            from continuing operations..............      (2,532,865)        (583,584)
                                                                              -------------- -------------
        Cash flows from investing activities:
          Capital expenditures.....................          (60,853)          (3,720)
          Cash retained by Predecessor
            Companies on restructuring
            of NewWest Delaware.....................                    -                      -
                                                                              -------------- -------------
          Net cash used in investing activities
            from continuing operations..............          (60,853)          (3,720)
                                                                              -------------- -------------
        Cash flows from financing activities:
          Net proceeds from issuance of shares
            from initial public offering............      15,807,333                      -
            Reclamation bonds.......................          (12,414)                    -
          Contributions from Ultimate Shareholder..                    -            585,000
          Loan from Predecessor Company............                    -                      -
          Repayment of loan from
            Predecessor Company.....................                    -                      -
                                                                              -------------- -------------
          Net cash provided by financing activities
            from continuing operations..............      15,794,919            585,000
          Effect of exchange rate changes
            on cash and cash equivalents............                 971                      -
          Net cash provided by (used in)
            continuing operations...................      13,202,172            (2,304)
          Net cash used in discontinued
            operations..............................                    -                      -
                                                                              -------------- -------------
          Increase (decrease) in cash
            and cash equivalents....................      13,202,172            (2,304)
          Cash and cash equivalents at
            beginning of period.....................          351,772                9,034
                                                                              -------------- -------------
          Cash and cash equivalents
            at end of period........................ $  13,553,944  $          6,730
                                                                              -------------- -------------
                                                                              -------------- -------------
                                                                                        Nine Months Ended
                                                                                            September 30,
                                                                            -----------------------------
                                                                                        2006                 2005
                                                                              -------------- -------------
        Cash flows from operating activities:
        Loss from continuing operations............ $  (5,298,263)  $(4,478,925)
        Adjustments to reconcile loss from
         continuing operations to net cash used
         in operating activities:
          Depreciation and amortization............            17,162              13,536
          Reclamation accretion expense............            49,948              56,277
          Reclamation expenditures.................            (2,733)          (2,374)
          Stock-based compensation(Note 3).........          653,126                      -
          Loss on disposal of assets...............                 300                1,850
          Interest accrued on loans to
            Ultimate Shareholder....................                    -         1,640,976
          Changes in operating working capital:
              Accounts receivable trade..............          (83,305)         (87,264)
              Accrued interest receivable............            18,813          (15,492)
              Accounts payable trade
                and accrued expenses..................          105,674            187,760
              Loan from Predecessor Companies........        1,668,049            501,261
              Repayment of Loan from
                Predecessor Companies.................      (2,564,829)                    -
              Prepaid expenses and other.............         (484,190)                    -
                                                                              -------------- -------------
          Net cash used in operating activities
            from continuing operations..............      (5,920,248)    (2,182,395)
                                                                              -------------- -------------
        Cash flows from investing activities:
          Capital expenditures.....................          (78,149)          (7,890)
          Cash retained by Predecessor
            Companies on restructuring
            of NewWest Delaware.....................                    -         (391,013)
                                                                              -------------- -------------
          Net cash used in investing activities
            from continuing operations..............          (78,149)        (398,903)
                                                                              -------------- -------------
        Cash flows from financing activities:
          Net proceeds from issuance of shares
            from initial public offering............      15,807,333                      -
            Reclamation bonds.......................          (40,214)                    -
          Contributions from Ultimate Shareholder..        3,760,000         2,758,000
          Loan from Predecessor Company............        1,700,000                      -
          Repayment of loan from
            Predecessor Company.....................      (1,700,000)                    -
                                                                              -------------- -------------
          Net cash provided by financing activities
            from continuing operations..............      19,527,119         2,758,000
                                                                              -------------- -------------
          Effect of exchange rate changes
            on cash and cash equivalents............                 971                      -
          Net cash provided by (used in)
            continuing operations...................      13,529,693            176,702
          Net cash used in discontinued
            operations..............................                    -         (268,209)
                                                                              -------------- -------------
          Increase (decrease) in cash
            and cash equivalents....................      13,529,693          (91,507)
          Cash and cash equivalents at
            beginning of period.....................            24,251              98,237
                                                                              -------------- -------------
          Cash and cash equivalents
            at end of period........................  $ 13,553,944  $          6,730
                                                                              -------------- -------------
                                                                              -------------- -------------
                      The accompanying notes are an integral part of these
                                              financial statements.
                                            NEWWEST GOLD CORPORATION
                                      (a British Columbia Corporation)
                            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                      (Unaudited US Dollars, unless otherwise indicated)
        1. BASIS OF PRESENTATION
            These unaudited interim consolidated financial statements of NewWest
            Gold Corporation (the "Company") have been prepared in accordance
            with Canadian generally accepted accounting principles. These interim
            consolidated financial statements of the Company do not include all
            information and note disclosures as required under Canadian generally
            accepted accounting principles for annual financial statements. The
            interim consolidated financial statements should be read in
            conjunction with the Company's consolidated annual financial
            statements included in the Company's final prospectus dated as of
            August 18, 2006.
            The assets and liabilities of the Company's British Columbia company,
            whose functional currency is the Canadian dollar, are translated at
            the exchange rate in effect on the last day of the period, and income
            and expenses are translated at the average exchange rate during the
            reporting period. The net effect of translation gains and losses is
            accumulated as a separate component of shareholders' equity. The
            functional currency of all of the Company's other subsidiaries is the
            United States ("US") dollar. The consolidated financial statements
            and related notes are presented in US dollars, unless otherwise
            indicated.
            The Company's consolidated financial statements have been prepared on
            a going concern basis, which presumes the realization of assets and
            discharge of liabilities in the normal course of business for the
            foreseeable future. The Company is currently an exploration and
            development stage company and does not have any mining operations
            which generate revenues or profits. Further, there can be no
            assurance that the Company will either achieve or maintain
            profitability in the future.
            The Company believes that the net proceeds from its initial public
            offering will be sufficient to meet its working capital requirements
            and its currently anticipated expenditure levels through 2007.
            Additional financing by way of other public offerings, private
            placements or bank borrowings will also be required in the future,
            the outcome of which cannot be predicted at this time. These
            consolidated financial statements do not include any adjustments and
            reclassifications of assets and liabilities, which might be necessary
            should the Company be unable to continue its exploration and
            development efforts.
        2. HISTORY OF THE COMPANY
            Formation
            On and as of June 30, 2005, a restructuring was completed where
            NewWest Delaware Corporation (a Delaware Corporation)("NewWest
            Delaware") consolidated the rights to possess, explore, develop and
            mine the precious metals mineral interests of Western States Minerals
            Corporation, Zaca Resources Corp. and 26 Ranch Inc. (collectively,
            the "Predecessor Companies" and each individually a "Predecessor
            Company").
            On and as of May 3, 2006, the Company was incorporated under the
            Business Corporations Act as a British Columbia company.
            The Company was formed for the initial purpose of, through a series
            of transactions completed on July 5, 2006, acquiring certain precious
            metal mineral interests consisting of mineral rights located on
            private lands and mining claims located on public lands in the United
            States. These mineral interests are located primarily in the state of
            Nevada, with smaller land positions in the states of California, Utah
            and Arizona. The mineral interests were 100% controlled by Mr. Jacob
            E. Safra ("the Ultimate Shareholder") through NewWest Delaware and
            its wholly owned subsidiary Nevada Western Gold Corporation, as well
            as Western States Royalty Corporation (together referred to as the
            "Sellers"). Following completion of the series of transactions and
            the IPO, NWG Investments (the "Principal Shareholder") owns
            approximately 86% of the Company, and 100% of the Principal
            Shareholder is indirectly controlled by the Ultimate Shareholder. As
            part of the series of transactions completed, 50 million common
            shares were issued and outstanding as of July 5, 2006.
            For financial reporting purposes, the Sellers and the Predecessor
            Companies' results are considered to be the historical results of the
            Company under the continuity of interest basis of accounting
            Completion of Offering
            On August 29, 2006, the Company completed its initial public offering
            and issued 8.2 million common shares for gross proceeds of
            approximately $18.5 million. The Underwriters were issued an
            additional 192,000 common shares on September 29, 2006 pursuant to an
            over-allotment option granted in connection with the initial public
            offering for gross proceeds of approximately $0.4 million
            (collectively, "IPO"). The Underwriters were paid a 7% commission,
            totaling approximately $1.4 million. An additional $1.7 million of
            expenses were incurred in connection with the IPO, resulting in net
            proceeds of approximately $15.8 million.
        3. SHARE CAPITAL
            Shareholders' Equity
                                                                                                        Accumulated
                                                            Shares         Common Stock        Deficit
                                                      -------------- -------------- -------------
              Balance at
              December 31, 2005......      50,000,000  $ 157,844,510  $(144,963,254)
              Contribution from
                Ultimate Shareholder...                    -         3,760,000                      -
              Net proceeds from
                issuance of shares
                from IPO...............        8,392,000        15,807,333                      -
              Stock based
                compensation...........                    -            653,126                      -
              Net loss................                    -                      -      (5,298,263)
              Cumulative translation
                loss...................                    -                      -                      -
                                                      -------------- -------------- -------------
              Balance at
              September 30, 2006.....      58,392,000  $ 178,064,969  $(150,261,517)
                                                      -------------- -------------- -------------
                                                      -------------- -------------- -------------
                                                         Cumulative
                                                        Translation    Shareholders'
                                                         Adjustment         Equity
                                                      -------------- --------------
              Balance at
                December 31, 2005...... $                 -  $  12,881,256
              Contribution from
                Ultimate Shareholder...                    -         3,760,000
              Net proceeds from
                issuance of shares
                from IPO...............                    -        15,807,333
              Stock based
                compensation...........                    -            653,126
              Net loss................                    -        (5,298,263)
              Cumulative translation
                loss...................                 (18)                 (18)
                                                      -------------- --------------
              Balance at
                September 30, 2006..... $              (18) $  27,803,434
                                                      -------------- --------------
                                                      -------------- --------------
              Outstanding Share Data
              As of September 30, 2006, 58,392,000 common shares were issued and
              outstanding. In addition, there were 2,027,500 stock options
              outstanding, as noted below.
              Stock Options
              The stock option activity for the three and nine months ended
              September 30, 2006 follows:
                                                                                                          Weighted
                                                                                                          Average
                                                                                September 30,      Exercise
                                                                                      2006              Price(1)
                                                                              -------------- -------------
              Stock options outstanding at
                beginning of period...................                      - $                 -
              Granted................................         2,027,500                2.25
              Exercised..............................                      -                    -
              Expired and/or cancelled...............                      -                    -
                                                                              -------------- -------------
              Stock options outstanding at
                end of period.........................         2,027,500 $            2.25
                                                                              -------------- -------------
                                                                              -------------- -------------
              Exercisable stock options..............            405,500 $            2.25
                                                                              -------------- -------------
                                                                              -------------- -------------
              (1) Weighted average exercise price is calculated using the C$2.50
                    exercise price converted to US$ using the September 30, 2006
                    exchange rate of 1.1113.
            The 2006 stock options granted have a term of 10 years, with 20%
            vested on the grant date and then 20% shall vest each year thereafter
            on the anniversary of such grant date for the next four years. The
            fair value of the 2006 stock options granted was calculated using the
            Black-Scholes option pricing model with the following assumptions:
            dividend yield 0%, expected volatility of 69.45%, risk free interest
            rate of 4.5 percent, and expected lives of 6.25 years. The stock-
            based compensation expense for the three and nine months ended
            September 30, 2006 was $653,126, of which $77,312 was charged to
            exploration expenses and $575,814 was charged to general and
            administrative expenses.
        4.  PREPAID EXPENSES AND OTHER
                                                                                                          As at
                                                                                                      September 30,
                                                                                                            2006
                                                                                                    --------------
              Annual property rental fees...........................$        311,662
              Drilling deposits.....................................          95,000
              Prepaid insurance.....................................          42,528
              Prepaid property tax..................................          10,301
              Fuel inventory........................................          18,106
              Other.................................................          11,546
                                                                                                    --------------
              Total prepaid expenses and other......................$        489,143
                                                                                                    --------------
                                                                                                    --------------
        5.  RELATED PARTY TRANSACTIONS
              At September 30, 2006, the Company had no employees. The Predecessor
              Companies provide personnel and other services to the Company at
              cost. During the nine months ended September 30, 2006 and 2005,
              advances were made to the Company from Predecessor Companies,
              primarily in respect of these services, of approximately $1,668,049
              and $501,261, respectively, substantially all of which was repaid
              during the nine months ended September 20, 2006. In addition,
              advances outstanding from Predecessor Companies as of December 31,
              2005 of $919,545 were also repaid during the nine months ended
              September 30, 2006. At September 30, 2006, advances to the Company
              from Predecessor Companies totaled $22,765. The Company intends to
              transfer employees to the Company on January 1, 2007.
              During the nine months ended September 30, 2006 and 2005, the
              Ultimate Shareholder made additional capital contributions to the
              Company in the amount of $3,760,000 and $2,758,000, respectively.
              During the nine months ended September 30, 2006, a Predecessor
              Company made a $1.7 million non-interest bearing advance to the
              Company, which was repaid in May 2006.
              The Predecessor Companies received loans from the Ultimate
              Shareholder to finance its activities in the aggregate amount of
              $48,599,798 at June 30, 2005 bearing interest at rates ranging from
              6.5% to 7%. These loans, which were unsecured and payable on demand,
              were retained by the Predecessor Companies on the June 30, 2005
              restructuring of NewWest Delaware (see Note 2). During the nine
              months ended September 30, 2005, interest expense on these loans was
              $1,640,976. No principal or interest payments were made on these
              loans during the 2005 period.
        6.  TAX CONTINGENCIES
              In connection with the series of transactions referred to in Note 2,
              an application for a withholding certificate was made to the Internal
              Revenue Service in the United States indicating that there would be
              no tax liability to the Principal Shareholder on the sale and
              transfer and, as a result, there would be no withholding tax
              liability. Pending receipt of this withholding certificate, the
              Company withheld and pledged 5 million common shares that would
              otherwise have been delivered to the Principal Shareholder pursuant
              to a withholding and pledge agreement. In September 2006, the
              withholding certificate was received from the Internal Revenue
              Service in the United States confirming that there will be no tax
              liability to the Principal Shareholder on the sale and transfer, and
              the 5 million shares were subsequently released to the Principal
              Shareholder.
        7.  EXPLORATION
              Exploration expenditures for the three and nine months ended
              September 30, 2006 and 2005 are as follows:
                                                    Three Months ended          Nine Months ended
                                                    ------------------          -----------------
                                                         September 30,                 September 30,
                                                         -------------                 -------------
              Projects                          2006            2005            2006            2005
              --------                          ----            ----            ----            ----
              Northumberland(1).... $    62,284  $    55,793  $  173,722  $  151,274
              Sandman..............      784,899        155,032    1,279,618        266,314
              Zaca.................         2,655         56,471         15,687        106,277
              Eastern Great
                Basin...............      533,675         98,666        675,182        178,023
              Carlin-Cortez
                Trends..............        34,313         47,134         80,716        132,126
              Other Projects.......         8,680         49,108         28,212        107,856
              Unallocated
                exploration
                personnel and
                overhead............      247,320        151,225        589,758        326,591
                                                 ----------- ----------- ----------- ----------
              Total                          $1,673,826  $  613,429  $2,842,895  $1,268,461
                                                 ----------- ----------- ----------- ----------
                                                 ----------- ----------- ----------- ----------
              (1) Amounts represent expenditures made directly by the Company
                    exclusive of the expenditures made by Newmont USA Limited in
                    accordance with the joint venture agreement.
              Newmont USA Limited ("Newmont"), a subsidiary of Newmont Mining
              Corporation, completed approximately $845,000 and $1,467,000 of
              exploration expenditures under the Northumberland joint venture
              during the three and nine months ended September 30, 2006 compared
              to approximately $663,000 and $1,169,000 for the same periods in
              2005, respectively.
                                            NEWWEST GOLD CORPORATION
                                  MANAGEMENT'S DISCUSSION AND ANALYSIS
                         OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                         (EXPRESSED IN U.S. DOLLARS)
                                  FOR THE THREE AND NINE MONTHS ENDED
                                                SEPTEMBER 30, 2006
                                  MANAGEMENT'S DISCUSSION AND ANALYSIS
                         OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS@@end@@

    This Management's Discussions and Analysis of Financial Condition and  Results of Operations ("MD&A") for the three and nine month periods ended  September 30, 2006, prepared as of November 8, 2006, provides information  that management believes is relevant to an assessment and understanding of  the interim consolidated financial condition for NewWest Gold Corporation  ("the Company") as at September 30, 2006 and the results of its operations  and cash flows for the three and nine month periods then ended. This MD&A  should be read in conjunction with the Company's annual consolidated financial statements and the corresponding notes thereto included in the Company's  final prospectus dated as of August 18, 2006.

    The Company's consolidated financial statements have been prepared by  management in accordance with generally accepted accounting principles (" GAAP") in Canada. The consolidated financial statements, related notes and  MD&A are presented in United States ("US") dollars, unless otherwise  indicated.

    Certain statements contained in the MD&A are forward-looking statements that involve risks and uncertainties. The forward-looking statements are not historical facts, but rather are based on the current  plans, objectives, goals, strategies, estimates, assumptions and  projections about the Company's industry, business and future financial  results. Actual results could differ materially from the results  contemplated by these forward-looking statements due to a number of factors , including those discussed in the Company's final prospectus dated as of  August 18, 2006

    Overview

    The Company is an advanced gold exploration and development company  primarily focused in the state of Nevada. The Company is one of the largest  holders of precious metals mineral rights in Nevada's gold trends, spanning  approximately 623,000 acres. The Company holds 19 exploration projects,  including advanced stage projects with measured and indicated resources in  accordance with NI 43-101. The Company's goal is to advance its projects  along the development pipeline into production. The Company has active  drilling programs underway at its three priority projects, Northumberland,  Sandman and Long Canyon.

    Highlights for the 2006 third quarter through the date of this report  are as follows:

@@start.t3@@        -  Successfully completed initial public offering ("IPO") for net
            proceeds of $15.8 million. The Company's working capital at
            September 2006 was approximately $13.2 million.
        -  The Company had net losses of approximately $3.1 million and
            $5.3 million for the three and nine months ended September 30, 2006,
            respectively. This compares to $1.2 million and $4.5 million for the
            same periods in 2005, respectively. The increase in losses during the
            2006 periods is primarily the result of significantly higher
            exploration drilling costs together with stock-based compensation
            expense and bonuses paid in conjunction with the successful
            completion of the IPO.
        -  Completed Phase One of the Sandman 2006 drilling program, with 84
            reverse circulation ("RC") holes completed, exceeding 27,000 feet.
            This program verified newly discovered zones of mineralization at
            Southeast Pediment and expanded mineralization at Silica Ridge and
            North Hill, both laterally and at depth. A new discovery of high-
            grade gold mineralization at Abel Knoll demonstrates the potential of
            the district exploration program. The drilling continued to produce
            high-grade intercepts associated with known mineralization.
        -  Phase Two of the Sandman 2006 drilling program is underway, designed
            to include an additional 100 holes.
        -  Completed Phase One of the Long Canyon 2006 drilling program,
            consisting of 16 RC drill holes, totaling 6,610 feet, construction of
            access roads, continued surface sampling, and geologic mapping. The
            drilling program successfully extended the known mineralization. The
            program produced 13 drill holes with significant near surface
            intercepts.
        -  Completed roadcut rock-chip sampling at Long Canyon, confirming
            interpretation of the structure and stratigraphy. Phase Two of the
            Long Canyon drilling program is currently being evaluated, with
            drilling to commence in November.
        -  Since May 24, 2006 through September 30, 2006, the Company completed
            approximately $561,000 of project expenditures under the Long Canyon
            joint venture. It is anticipated that under the terms of this
            agreement, the Company, as operator, may earn a 51% interest in the
            consolidated project if it spends $5 million on the project over a
            five year period.
        -  Newmont USA Limited ("Newmont"), a subsidiary of Newmont Mining
            Corporation, completed approximately $1.5 million of project
            expenditures under the Northumberland joint venture during the nine
            months ended September 30, 2006, bringing Newmont's inception to date
            project expenditures to approximately $4.8 million. Under the terms
            of the Northumberland joint venture, Newmont must spend a minimum
            cumulative expenditure through the end of 2006 of $6 million.@@end@@

    Company History

    Formation

    The Company was formed for the initial purpose of, through a series of  transactions completed on July 5, 2006, acquiring certain precious metal  mineral interests consisting of mineral rights located on private lands and  mining claims located on public lands in the US, primarily in the state of  Nevada, with smaller land positions in the states of California, Utah and  Arizona. The mineral interests were 100% controlled by Mr. Jacob E. Safra  ("the Ultimate Shareholder") through NewWest Gold Corporation (a Delaware Corporation) ("NewWest Delaware") and its wholly owned subsidiary Nevada  Western Gold Corporation, as well as Western States Royalty Corporation  (together referred to as the "Sellers"). Following completion of the series  of transactions and the IPO, NWG Investments (the "Principal Shareholder")  owns approximately 86% of the Company, and 100% of the Principal  Shareholder is indirectly controlled by the Ultimate Shareholder.

    On June 30, 2005, a restructuring was completed where NewWest Delaware  consolidated the rights to possess, explore, develop and mine the precious  metals mineral interests of Western States Minerals Corporation, Zaca  Resources Corp. and 26 Ranch Inc. (collectively, the "Predecessor Companies " and each individually a "Predecessor Company").

    Basis of Presentation

    The consolidated financial statements of the Company are comprised of  the combined financial statements of the Sellers and the Predecessor  Companies using the historical results of operations and the historical  basis of assets and liabilities of these companies. Therefore, even though  the Company is a newly incorporated company, the MD&A is based on the  historical combined financial statements of the Sellers and the Predecessor  Companies. For financial reporting purposes, the Sellers and the  Predecessor Companies' results are considered to be the historical results  of the Company under the continuity of interest basis of accounting.

    The combined results of operations of the Sellers and the Predecessor  Companies will not necessarily be indicative of the consolidated financial  position, operating results or cash flows in the future or what the  consolidated financial position, operation results or cash flows would have  been had the Company been a separate, independent publicly-traded company  during the periods presented. The Company expects that its expenses as a  separate publicly-traded company may be higher than the amounts reflected  in the combined consolidated statements of operations.

    Summary Financial Information (unaudited)

@@start.t4@@                                          Three Months Ended                 Nine Months Ended
                                          ------------------                 -----------------
        Summary Operating            September 30,                        September 30,
        -----------------            -------------                        -------------
         Results                        2006                2005                2006                2005
         -------                        ----                ----                ----                ----
        Revenues.........$      126,622  $        74,970  $      192,337  $      106,040
        Expenses.........$  3,322,947  $  1,256,971  $  5,606,964  $  2,975,623
        Interest
         expense(1)......$                -  $                -  $                -  $  1,640,976
        Loss from
         continuing
         operations......$ (3,132,783) $ (1,177,337) $ (5,298,263) $ (4,478,925)
        Net loss.........$ (3,132,783) $ (1,177,337) $ (5,298,263) $ (4,609,189)
        Net loss per
         share...........$         (0.06) $         (0.02) $         (0.10) $         (0.09)
                                                                                 September 30, December 31,
                                                                                 ------------- ------------
        Summary Balance Sheet                                                2006              2005
        ---------------------                                                ----              ----
        Property, plant and equipment................$ 14,578,029  $ 14,517,340
        Total assets.................................$ 29,708,894  $ 15,529,606
        Total liabilities............................$  1,905,460  $  2,648,350
        Total shareholder's equity...................$ 27,803,434  $ 12,881,256
        (1) The loans giving rise to the interest expense were retained by the
              Predecessor Companies on the restructuring of NewWest Delaware on
              June 30, 2005.@@end@@

    Results of Operations - Three Months and Nine Months Ended September  30, 2006 and 2005

    Summary

    Loss from continuing operations for the three months and nine months  ended September 30, 2006 were $3,132,783 and $5,298,263 compared to $1,177, 337 and $4,478,925 for the same periods in 2005, respectively. Expenses for  the three and nine months ended September 30, 2006 were $3,322,947 and  $5,606,964 up from $1,256,971 and $2,975,623 for the same periods in 2005,  respectively. The increase in losses from continuing operations and  expenses during the 2006 periods can primarily be attributed to  significantly higher exploration expenses resulting from increased  exploration drilling costs together with stock-based compensation expense  associated with stock options granted in August 2006 and bonuses paid in  conjunction with the successful completion of the IPO.

    Revenues

    During the three and nine months ended September 30, 2006, the Company  had $126,622 and $192,337 in revenues from Newmont for services provided by  the Company related to Newmont's earn-in requirements at the Northumberland  Project. This compares to $74,970 and $106,040 of revenues from Newmont for  the three and nine months ended September 30, 2005, respectively. The  higher level of services provided to Newmont is the result of increased  exploration drilling activities in the 2006 periods compared to the 2005  periods.

    Exploration

    Exploration spending varies depending on the perceived potential of  properties in the portfolio and available funds. During 2006, the Company  has been focused on three priority projects; Northumberland, Sandman and  Long Canyon. Exploration expenditures were significantly higher in the  three and nine month periods ended September 30, 2006 primarily due to  exploration drilling at the Sandman and Long Canyon projects, together with  stock-based compensation expense and bonuses paid upon the successful  completion of the IPO. Details of exploration spending by project are as  follows:

@@start.t5@@                                                    Three Months ended          Nine Months ended
                                                    ------------------          -----------------
                                                         September 30,                 September 30,
                                                         -------------                 -------------
        Projects                                 2006            2005            2006            2005
        --------                                 ----            ----            ----            ----
        Northumberland(1)........ $    62,284  $    55,793  $  173,722  $  151,274
        Sandman..................      784,899        155,032    1,279,618        266,314
        Zaca.....................         2,655         56,471         15,687        106,277
        Eastern Great Basin......      533,675         98,666        675,182        178,023
        Carlin-Cortez Trends.....        34,313         47,134         80,716        132,126
        Other Projects...........         8,680         49,108         28,212        107,856
        Unallocated exploration
         personnel and
         overhead................      247,320        151,225        589,758        326,591
                                                 ----------- ----------- ----------- ----------
        Total.................... $1,673,826  $  613,429  $2,842,895  $1,268,461
                                                 ----------- ----------- ----------- ----------
                                                 ----------- ----------- ----------- ----------
        (1) Amounts represent expenditures made directly by the Company
              exclusive of the expenditures made by Newmont in accordance with the
              joint venture agreement.@@end@@

    Newmont completed approximately $845,000 and $1,467,000 of exploration  expenditures at the Northumberland Project during the three and nine months  ended September 30, 2006 compared to approximately $663,000 and $1,169,000  for the same periods in 2005, respectively. The 2006 drilling program for  Northumberland includes four drill rigs, including reverse circulation ("RC ") and core rigs. In addition to the expenditures made by Newmont under the  Joint Venture Agreement, the Company incurred $62,284 and $173,722 of direct exploration related expenditures during the third quarter and first  nine months of 2006 compared to $55,793 and $151,274 for the same periods  in 2005, respectively, related to the Northumberland Project.

    Exploration expenditures at the Sandman Project were higher for the  three and nine months ended September 30, 2006 than the same periods in  2005 primarily as a result of exploration drilling expenditures from the  2006 drill program. The Company recently completed Phase One of the 2006  drilling program, which included 75 RC holes designed to expand and test  shallow and deep targets at the known mineralized zones of Southeast  Pediment, Silica Ridge and North Hill. The Company also completed nine RC  holes to test three district targets at Abel Knoll, Windmill and Sandbowl  as part of the Phase One program. In total, 84 holes were completed,  exceeding 27,000 feet. The drilling continued to produce high-grade  intercepts associated with known mineralization. Phase Two of the 2006  drilling program is underway, and is designed to include an additional 100 holes with an estimated budget of approximately US$1.2 million.

    Exploration expenditures for the Eastern Great Basin Project were higher for the three and nine months ended September 30, 2006 due to 2006  exploration expenditures related to the Long Canyon project. The Company  recently completed Phase One of the Long Canyon 2006 drilling program,  consisting of 16 RC drill holes totaling 6,610 feet, construction of access  roads, continued surface sampling, and geologic mapping. The program  produced 13 drill holes with significant near surface intercepts. Phase Two  of the drilling program is underway.

    Since May 24, 2006 through September 30, 2006, the Company completed  approximately $561,000 of project expenditures under the Long Canyon joint  venture. The Company and AuEx Ventures Inc. ("AuEx") agreed by way of a  letter of intent to complete a definitive joint venture agreement for the  Long Canyon project whereby the two parties will combine their respective  land positions in the Long Canyon Area. The definitive joint venture  agreement is currently being negotiated and is expected to be completed in  the near future. Under the terms of this agreement, the Company will act as  operator and may earn a 51% interest in the consolidated project if it  spends $5 million on the project over a five year period. After completion,  the Company may elect to carry AuEx through feasibility, if warranted,  thereby earning an additional 14%.

    Exploration expenditures for the Zaca project, the Carlin-Cortez projects and other projects for the three and nine months ended September 30,  2006 were lower than the same periods in 2005 as a result of the Company's  focus on the 2006 drilling programs for its three priority projects.

    Unallocated exploration personnel and overhead increased in the three  and nine months ended September 30, 2006 over the 2005 periods due to  higher exploration staffing levels, stock-based compensation expense and  bonuses paid.

    Exploration expenses for the fourth quarter of 2006 are expected to  slightly increase over the third quarter of 2006 primarily due to exploration activities related to the Sandman and Long Canyon projects.

    Operations Expenses

    Operating expenses related to equipment services provided to Newmont  at the Northumberland Project were $57,919 and $92,525 during the three and  nine months ended September 30, 2006, respectively. This compared to $39, 266 and $43,002 for the same periods in 2005, respectively. Equipment  services were higher in the 2006 periods primarily as a result of more  equipment services provided, given the higher level of exploration drilling  activities, together with higher fuel costs in 2006.

    General and Administrative Expenses

    General and administrative expenses were $1,567,895 and $2,604,434 during the three and nine months ended September 30, 2006 compared to $581, 647 and $1,594,347 during the same periods in 2005, respectively. These  expenses increased in the 2006 periods primarily as a result of the  recognition of stock-based compensation expense, bonuses paid upon the  successful completion of the IPO and expenses associated with being a  separate publicly-traded company.

    On August 17, 2006, stock options were granted for 2,027,500 common  shares of the Company at an exercise price equal to the IPO price of C$2. 50 per share. The 2006 stock options granted have a term of 10 years, with  20% vested on the grant date and then 20% shall vest each year thereafter  on the anniversary of such grant date for the next four years. Under the  fair-value based method of accounting, the value of the options vested on  the grant date is recognized immediately as compensation expense, with the  remaining value of the options being recognized over the applicable vesting period. The stock-based compensation expense for the three and nine months  ended September 30, 2006 was $653,126, of which $575,814 was charged to  general and administrative expenses and $77,312 was charged to exploration  expenses. Additionally, approximately $375,000 of bonuses were paid upon  the successful completion of the IPO, of which $280,000 was charged to  general and administrative expenses and $95,000 was charged to exploration.

    General and administrative expenses for the fourth quarter of 2006 are  expected to decrease from the third quarter of 2006 primarily due to lower  stock-based compensation expense and no bonus expense, which will be  somewhat offset by higher public company expenses.

    Reclamation Accretion Expense

    During the three and nine months ended September 30, 2006 reclamation  accretion expense was $16,650 and $49,948 compared to $18,029 and $56,277  for the same periods in 2005, respectively. The decrease in reclamation  accretion expense reflects a decrease in the overall provision for  reclamation at December 31, 2005.

    Interest Expense

    During the nine months ended September 30, 2005, the Company incurred  $1,640,976 of interest expense on loans payable to the Ultimate Shareholder . These loans were retained by the former companies on the restructuring of  NewWest Delaware in June 2005.

    Interest Income

    During the three and nine months ended September 30, 2006, the Company  had interest income of $63,542 and $105,309 compared to $5,164 and $15,761  for the same periods in 2005, respectively. The increase in interest income  in 2006 was primarily the result of higher cash balances from the IPO that  were invested in interest bearing accounts together with higher interest rates.

    Other Income/Expense

    Other expense was $500 for the three months ended September 30, 2005,  which represented a loss on disposal of assets.

    Other income was $11, 055 and $15,873 during the nine months ended September 30, 2006 and 2005,  respectively. Mineral lease payments of $12,000 were included in other  income during the 2006 and 2005 periods. Other expense during the nine  months ended September 30, 2006 included a foreign exchange loss of $645  and a loss on disposal of assets of $300. Other income for the same period  in 2005 also included oil and gas lease payments of $5,723, net of a loss  on disposal of assets of $1,850. The oil and gas leases were retained by the former companies on the restructuring of NewWest Delaware.

    Income Taxes

    As a result of the series of transactions completed in July 2006, the  Company had a tax basis in excess of its book basis at that date of  approximately $45 million. Additional losses have been incurred through  September 30, 2006. The Company recorded a full valuation allowance against  these future tax assets because of a lack of sufficient positive evidence  to support the future realization of these deferred tax assets.

    The Sellers and the Predecessor Companies retained their net operating  loss carry forwards for US federal tax purposes as part of the series of  transactions completed in July 2006.

    Quarterly Financial Information (unaudited)

    Summarized unaudited financial data for each of the last eleven quarters ended September 30, 2006 is as follows (in thousands, except per  share amounts):

@@start.t6@@                                                                            2006 Quarters Ended
        ------------------------------------------------------------------------
                                                          September 30        June 30         March 31
                                                         -----------------------------------------
        Revenues from continuing
         operations.................... $      126,622  $        65,715  $                -
        Loss from continuing
         operations....................    (3,132,783)    (1,341,274)      (824,206)
        Net loss.......................    (3,132,783)    (1,341,274)      (824,206)
        Net loss per share............. $         (0.06) $         (0.03) $        (0.02)
                                                                  2005 Quarters Ended
        ------------------------------------------------------------------------
                                      December 31  September 30        June 30         March 31
                                  -------------------------------------------------------
        Revenues from
         continuing
         operations...... $        31,342  $        74,970  $        29,870  $         1,200
        Loss from
         continuing
         operations......    (1,755,222)    (1,177,337)    (1,795,959)  (1,505,629)
        Net loss.........    (1,755,222)    (1,177,337)    (1,928,792)  (1,503,060)
        Net loss
         per share....... $         (0.04)    $      (0.02)    $      (0.04)    $    (0.03)
                                                                  2004 Quarters Ended
        ------------------------------------------------------------------------
                                      December 31  September 30        June 30         March 31
                                  -------------------------------------------------------
        Revenues from
         continuing
         operations...... $         1,195  $      122,944  $        49,484  $                -
        Loss from
         continuing
         operations......        (735,702)    (1,499,786)    (1,183,863)  (1,109,387)
        Net loss.........        (743,337)    (1,494,758)    (1,161,091)  (1,076,276)
        Net loss
         per share....... $         (0.01) $         (0.03) $         (0.02) $        (0.02)@@end@@

    Liquidity and Capital Resources

    The Company is currently an exploration and development stage company  and does not have any mining operations which generate revenues or profits.  Further, there can be no assurance that the Company will either achieve or  maintain profitability in the future.

    The Company requires financing to fund its continuing exploration and  development efforts. In this regard, on August 29, 2006, the Company  completed its IPO and issued 8.2 million common shares. The Underwriters  were issued an additional 192,000 common shares on September 29, 2006  pursuant to an over-allotment option granted in connection with the IPO.  The net proceeds from the IPO, after Underwriters commissions and the  expenses of the IPO, were approximately $15.8 million. The Company believes that the net proceeds from this IPO will be sufficient to meet its working capital requirements and  its currently anticipated expenditure levels through 2007. Additional  financing by way of other public offerings, private placements or bank  borrowings will also be required in the future, the outcome of which cannot  be predicted at this time.

    Operating Activities

    Net cash used in operating activities was $2,532,865 and $583,584 during the three months ended September 30, 2006 and 2005, respectively.  Net cash used in operating activities during the 2006 third quarter  primarily reflects the loss from continuing operations, adjusted for stock- based compensation of $653,126. Net cash used in operating activities  during the 2005 third quarter primarily reflects the loss from continuing  operations, offset by a loan from Predecessor Companies of $501,261.

    Net cash used in operating activities was $5,920,248 and $2,182,395  during the nine months ended September 30, 2006 and 2005, respectively. Net  cash used in operating activities during 2006 primarily reflects the loss  from continuing operations, a net repayment of advances from Predecessor  Companies of $896,780, and prepaid expenses of $484,190 (primarily  representing annual property rental fees), which were offset by the  adjustment for stock-based compensation of $653,126. Net cash used in  operating activities during 2005 primarily reflects the loss from  continuing operations and a loan from Predecessor Companies of $501,261,  adjusted for interest accrued but not paid on amounts due to the Ultimate Shareholder of $1,640,976.

    Investing Activities

    Net cash used in investing activities was $60,853 and $78,149 during  the three and nine months ended September 30, 2006 compared to $3,720 and  $398,903 for the same periods in 2005, respectively. The 2006 periods and  the third quarter of 2005 included equipment purchases. Net cash used in  investing activities for the nine months ended September 30, 2005 included  $391,013 of cash retained by former companies on a restructuring of NewWest  Delaware in 2005.

    Financing Activities

    Net cash provided by financing activities during the three months ended September 30, 2006 and 2005 was $15,794,919 and $585,000, respectively. During the 2006 third quarter, net proceeds of $15,807,333  were received from the IPO. During the 2005 third quarter, the Ultimate  Shareholder made capital contributions to the Company of $585,000.

    Net cash provided by financing activities during the nine months ended  September 30, 2006 and 2005 was $19,527,119 and $2,758,000, respectively.  During the 2006 nine month period, net proceeds of $15,807,333 were  received from the IPO as mentioned above. Additionally, during the 2006 and  2005 nine month periods, the Ultimate Shareholder made capital  contributions to the Company of $3,760,000 and $2,758,000, respectively.

    Contractual Obligations

    Mining operations and exploration projects are subject to extensive  environmental regulations. Pursuant to environmental regulations, the  Company is required to reclaim the lands that its activities have disturbed . The estimated undiscounted cash outflows of these reclamation obligations  remain unchanged from the end of the previous fiscal year.

    During the nine months ended September 30, 2006 and to the date of this document, the Company has not entered into any contractual obligations  that are outside the ordinary course of its business.

    Related Party Transactions

    At September 30, 2006, the Company had no employees. The Predecessor  Companies provide personnel and other services to the Company at cost.  During the nine months ended September 30, 2006, advances were made to the  Company from Predecessor Companies, primarily in respect of these services,  of approximately $1,668,049, substantially all of which was repaid. In  addition, advances outstanding from Predecessor Companies as of December 31 , 2005 of $919,545 were also repaid during the nine months ended September  30, 2006. At September 30, 2006, advances to the Company from Predecessor Companies totaled $22,765. The Company intends to transfer employees from  the Predecessor Companies on January 1, 2007.

    During the nine months ended September 30, 2006, the Ultimate Shareholder made additional capital contributions to the Company in the  amount of $3.76 million and a Predecessor Company made a $1.7 million non- interest bearing advance to the Company. In May 2006, NewWest Delaware  repaid the $1.7 million advance.

    Contingent Liabilities and Environmental Matters

    Environmental Matters

    The Company's mining and exploration activities are subject to various  federal and state laws and regulations governing the protection of the  environment. These laws and regulations are continually changing and are  generally becoming more restrictive. The Company conducts its activities so  as to protect the public health and environment and believes it is in  substantial compliance with all applicable laws and regulations. The  Company has made, and expects to make in the future, expenditures to comply  with such laws and regulations, but cannot predict the amount of such  future expenditures. At September 30, 2006, the Company had accrued $1,011, 563 in respect of its reclamation and environmental liabilities.

    Tax Contingencies

    In connection with the indirect sale and transfer of assets and liabilities to the Company from the Sellers, an application for a withholding certificate was made to the Internal Revenue Service in the US  indicating that there would be no tax liability to the Principal  Shareholder on the sale and transfer and, as a result, there would be no  withholding tax liability. Pending receipt of this withholding certificate,  the Company withheld and pledged 5 million common shares that would  otherwise have been delivered to the Principal Shareholder pursuant to a  withholding and pledge agreement. In September 2006, the withholding  certificate was received from the Internal Revenue Service in the US  confirming that there will be no tax liability to the Principal Shareholder  on the sale and transfer, and the 5 million shares were subsequently released to the Principal Shareholder.

    Other

    The other contingent liabilities and environmental matters remain unchanged from the end of the previous fiscal year.

    Critical Accounting Policies and Estimates

    The preparation of the Company's consolidated financial statements requires management to make estimates and assumptions. These estimates and  assumptions affect the reported amounts of assets and liabilities, the  disclosure of contingent assets and liabilities as well as the reported  expenses during the reporting period. Such estimates and assumptions affect  the determination of the potential impairment of long-lived assets,  estimated costs associated with reclamation and property closure costs,  income taxes and assumptions in determining stock based compensation.  Management re-evaluates its estimates and assumptions on an ongoing basis;  however, due to the nature of estimates, actual amounts could differ.

    The Company's critical accounting policies remain unchanged from the  end of the previous fiscal year. The Company's critical accounting  estimates, other than stock-based compensation discussed below, also remain  unchanged from the end of the previous fiscal year.

    Stock-Based Compensation

    The Company accounts for stock-based transactions using the fair-value  based method. Under the fair value based method, compensation cost is  measured at fair value of the options at the date of grant and is expensed  over the vesting period of the award. The fair value of the stock options  granted in August 2006 was calculated using the Black-Scholes option  pricing model with the following assumptions: dividend yield 0%, expected  volatility of 69.45%, risk free interest rate of 4.5 percent, and expected  lives of 6.25 years.

    Outstanding Share Data

    As of November 8, 2006, there were 58,392,000 common shares issued and  outstanding and there were an aggregate of 5,839,200 common shares reserved  for issuance upon the exercise of stock options granted. There were 2,027, 500 stock options outstanding as of November 8, 2006.

    Other Information

    Additional information about the Company, including the Company's final prospectus, is available electronically on SEDAR at www.sedar.com.

ots Originaltext: NewWest Gold Corporation
Im Internet recherchierbar: http://www.presseportal.ch

Contact:
For further information: NewWest Gold Corporation, Jennifer Van
Dinter, Director of Investor Relations, Tel: +1-(303)-425-7042, Fax:
+1-(303)-425-6634, info@newwestgold.com; NewWest Gold Corporation,
Stephen Alfers, President and Chief Executive Officer, Tel:
+1-(303)-425-7042, Fax: +1-(303)-425-6634



Weitere Meldungen: NewWest Gold Corporation

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