[Newgold Letterhead]


July 13, 2006


Mr. Jason Wynn/Mail Stop 7010
Division of Corporation Finance
Securities and Exchange Commission
100 F Street, N.E.
Washington, D.C.  20549

RE:      NEWGOLD, INC.
         REGISTRATION STATEMENT ON FORM SB-2
         FILE NO. 333-132218

Dear Mr. Wynn:

Pursuant  to Rule 461 of  Regulation  C under  the  Securities  Act of 1933,  as
amended, the undersigned, being the issuer of securities to which the referenced
Registration  Statement relates (the "Company"),  hereby  respectfully  requests
that the effectiveness of said Registration  Statement be accelerated so that it
will become effective at 4:00 p.m.,  Washington,  D.C. time, on Monday, July 17,
2006, or as soon thereafter as practicable,  unless we request by telephone that
said Registration Statement be declared effective at some other time.

The Company further acknowledges that:

     o   Should the Securities and Exchange Commission (the "SEC") or the staff,
         acting pursuant to delegated  authority,  declare the filing effective,
         it does not  foreclose  the SEC from taking any action with  respect to
         the filing;

     o   The  action  of the SEC or the  staff,  acting  pursuant  to  delegated
         authority,  in  declaring  the filing  effective,  does not relieve the
         Company from its full  responsibility  for the adequacy and accuracy of
         the disclosure in the filing; and

     o   The  Company  may not assert  staff  comments  and the  declaration  of
         effectiveness  as a defense in any  proceeding  initiated by the SEC or
         any person under the federal securities laws of the United States.

     Very truly yours,

     Newgold, Inc.


     By: /s/ A. SCOTT DOCKTER
        ------------------------------
         A. Scott Dockter, President


     cc: Roger Linn, Esq.