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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0001175596-03-000002.txt : 20030319
<SEC-HEADER>0001175596-03-000002.hdr.sgml : 20030319
<ACCEPTANCE-DATETIME>20030319151254
ACCESSION NUMBER:		0001175596-03-000002
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20020302
FILED AS OF DATE:		20030319

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TASEKO MINES LTD
		CENTRAL INDEX KEY:			0000878518
		STANDARD INDUSTRIAL CLASSIFICATION:	GOLD & SILVER ORES [1040]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-19476
		FILM NUMBER:		03609103

	BUSINESS ADDRESS:	
		STREET 1:		1020-800 W. PENDER STREET
		CITY:			VANCOUVER BC CANADA V6C 2V6
		STATE:			A1
		ZIP:			00000
		BUSINESS PHONE:		(604) 684-6365

	MAIL ADDRESS:	
		STREET 1:		1020-800 W. PENDER STREET
		STREET 2:		V6C 2V6
		CITY:			VANCOUVER
		STATE:			A1
		ZIP:			00000
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>tko6k_dec3102.htm
<DESCRIPTION>QUARTERLY FINANCIAL STATEMENTS
<TEXT>
<font face="Times New Roman, Times, serif"><html>
<head>
<title>Quarterly Financial Statements December 2002</title>
<!--
..Section1
	{page:Section1;}
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</head>
<body bgcolor="#FFFFFF" class="Normal" style='text-justify-trim:punctuation' lang=EN-US>
<div class=Section1>
  <p align=center>SECURITIES AND EXCHANGE COMMISSION<br>
    Washington, DC 20549</p>
  <h1 align=center>FORM
    6-K</h1>
  <p align=center>Report of Foreign Private Issuer</p>
  <p align=center>Pursuant to Rule 13a-16 or 15d-16<br>
    of the Securities Exchange Act of 1934</p>
  <p align=center>CIK # 878518</p>
  <p align=center>As at March 3, 2003</p>
  <h1 align=center>TASEKO
    MINES LIMITED</h1>
  <p align=center>800 West Pender Street, Suite 1020<br>
    Vancouver, British Columbia<br>
    Canada     V6C 2V6</p>
  <p align=center>Indicate by check mark whether the
    registrant files or will file annual reports under cover Form 20-F or Form
    40-F.</p>
  <p align=center>Form 20-F...X....                     Form 40-F.........</p>
  <p align=center>Indicate by check mark if the registrant
    is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
    ____</p>
  <p align=center>Note: Regulation S-T Rule 101(b)(1)
    only permits the submission in paper of a Form 6-K if submitted solely to
    provide an attached annual report to security holders.</p>
  <p align=center>Indicate by check mark if the registrant
    is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
    ____</p>
  <p align=center>Indicate by check mark whether by
    furnishing the information contained in this Form, the registrant is also
    thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b)
    under the Securities Exchange Act of 1934.</p>
  <p align=center>Yes ..... No .....</p>
  <p align=center>If &quot;Yes&quot; is marked, indicate
    below the file number assigned to the registrant in connection with Rule 12g3-2(b):
    82- ________</p>
  <p align=center>Signatures</p>
  <p align=center>Pursuant to the requirements of the
    Securities Exchange Act of 1934, the registrant has duly caused this report
    to be signed on its behalf by the undersigned, thereunto duly authorized.</p>
  <p align=center>By: <i>/s/ Jeffrey R. Mason</i><br>
    Director and Chief Financial Officer</p>
  <p align=center>Date:     March 3, 2003</p>
  <p align=center>* Print the name and title of the
    signing officer under his signature.</p>
  <p><HR SIZE=3></p>
  <div align=center>
    <table border=0 cellspacing=0 cellpadding=0>
      <tr>
        <td width=576 valign=bottom nowrap class="Normal"> <p align=center>TASEKO
            MINES LIMITED</p></td>
      </tr>
      <tr>
        <td width=576 valign=bottom nowrap class="Normal"> <p align=center>CONSOLIDATED
            FINANCIAL STATEMENTS</p></td>
      </tr>
      <tr>
        <td width=576 valign=bottom nowrap class="Normal"> <p align=center>FOR
            THE THREE MONTHS ENDED DECEMBER 31, 2002</p></td>
      </tr>
      <tr>
        <td width=576 valign=bottom nowrap class="Normal"> <p align=center>(Expressed
            in Canadian Dollars)</p></td>
      </tr>
      <tr>
        <td width=576 valign=bottom nowrap class="Normal"> <p align=center>(Unaudited
            - prepared by management)</p></td>
      </tr>
      <tr>
        <td width=576 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
    </table>
  </div>
  <p><b><HR SIZE=3></b></p>
  <div align=center>
    <table border=0 cellspacing=0 cellpadding=0>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal"> <p><b>TASEKO
            MINES LIMITED</b></p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal"> <p><b>Consolidated
            Balance Sheets</b></p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal"> <p>(Expressed
            in Canadian Dollars)</p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal"> <p>(Unaudited
            - prepared by management)</p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>December
            31,</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>September
            30,</p></td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>2002</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>2002</p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal"> <p><b>Assets</b></p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal"> <p><b>Current assets</b></p></td>
        <td width=115 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal"> <p>Cash and equivalents</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  $
            2,708,910 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  $
            39,104 </p></td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal"> <p>Amounts receivable
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  774,036
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  336,247
          </p></td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal"> <p>Supplies inventory</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  2,284,428
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  2,282,954
          </p></td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal"> <p>Prepaid expenses</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
              49,937 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  103,631
          </p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  5,817,311
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  2,761,936
          </p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal"> <p><b>Property, plant
            and equipment </b>(note 4)</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  9,980,148
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            10,158,525 </p></td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal"> <p><b>Reclamation deposits
            </b>(notes 3 and 7(c)(ii))</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            16,375,408 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            18,576,524 </p></td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal"> <p><b>Mineral property
            interests</b> (note 5)</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            28,813,296 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            28,813,296 </p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>  $
              60,986,163 </b></p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>  $
              60,310,281 </b></p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal"> <p><b>Liabilities
            and Shareholders&#039; Equity</b></p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal"> <p><b>Current
            liabilities</b></p></td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal"> <p>Bank operating loan
            (note 6)</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  $
            1,959,597 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  $
            2,000,000 </p></td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal"> <p>Accounts payable
            and accrued liabilities </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  1,606,092
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  1,569,288
          </p></td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal"> <p>Advances from related
            parties (note 10)</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  487,898
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  3,469,168
          </p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  4,053,587
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  7,038,456
          </p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal"> <p><b>Reclamation liability
            (note 4)</b></p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            32,700,000 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            32,700,000 </p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            36,753,587 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            39,738,456 </p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal"> <p><b>Shareholders&#039;
            equity</b></p></td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal"> <p>Share capital (note
            7)</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            95,943,793 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            91,889,200 </p></td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal"> <p>Convertible debenture
            (note 7(c))</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            17,000,000 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            17,000,000 </p></td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal"> <p>Tracking preferred
            shares (note 3)</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            26,641,948 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>    26,641,948
          </p></td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal"> <p>Deficit</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>(115,353,165)</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>(114,959,323)</p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            24,232,576 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            20,571,825 </p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal"> <p>Continuing
            operations (note 1)</p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal"> <p>Commitments
            (note 5 and 7(b)(iii))</p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><b><HR SIZE=1></b></p></td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>  $
              60,986,163 </b></p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>  $
              60,310,281 </b></p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal"> <p>See accompanying
            notes to consolidated financial statements.</p></td>
      </tr>
      <tr>
        <td width=566 colspan=3 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal"> <p>Approved by the
            Board of Directors</p></td>
        <td width=230 colspan=2 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=230 colspan=2 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal"> <p><i>/s/ Ronald W.
            Thiessen</i></p></td>
        <td width=230 colspan=2 valign=bottom nowrap class="Normal"> <p><i>/s/
            Jeffrey R. Mason</i></p></td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=230 colspan=2 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal"> <p>Ronald W. Thiessen</p></td>
        <td width=230 colspan=2 valign=bottom nowrap class="Normal"> <p>Jeffrey
            R. Mason</p></td>
      </tr>
      <tr>
        <td width=336 valign=bottom nowrap class="Normal"> <p>Director</p></td>
        <td width=230 colspan=2 valign=bottom nowrap class="Normal"> <p>Director</p></td>
      </tr>
    </table>
  </div>
  <p><b><HR SIZE=3></b></p>
  <div align=center>
    <table border=0 cellspacing=0 cellpadding=0>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p><b>TASEKO
            MINES LIMITED</b></p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p><b>Consolidated
            Statements of Operations</b></p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p>(Expressed
            in Canadian Dollars)</p></td>
      </tr>
      <tr>
        <td width=518  colspan=3 valign=bottom nowrap class="Normal"> <p>(Unaudited
            - prepared by management)</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=230 colspan=2 valign=bottom nowrap class="Normal"> <p align=right>Three
            months ended December 31,</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>2002</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>2001</p></td>
      </tr>
      <tr>
        <td width=518  colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=115 colspan=3 valign=bottom nowrap class="Normal"> <p align=left><b>Expenses</b></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Conference and travel</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  $
              19,495 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  $
              6,156 </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Consulting</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            49,666 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  81,250
          </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Corporation taxes</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            8,144 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Depreciation</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  178,377
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            178,266 </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Exploration (schedule)</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  285,089
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            256,094 </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Interest and finance
            charges</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            23,187 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            418,354 </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Legal, accounting
            and audit</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            56,598 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            141,719 </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Office and administration</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            51,770 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  50,921
          </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Refinery project
            (schedule)</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            - </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>    1,271,711
          </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Shareholder communication</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            23,527 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  33,229
          </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Trust and filing</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            744 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            5,057 </p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  696,597
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>    2,442,757
          </p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=115 colspan=3 valign=bottom nowrap class="Normal"> <p align=left><b>Other
            items</b></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Interest and other
            income</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  302,755
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            403,270 </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Write down of mineral
            property acquisition costs</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            - </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            (600,000)</p></td>
      </tr>
      <tr>  <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  302,755
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            (196,730)</p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p><b>Loss for the
            period</b> </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>  $
            (393,842)</b></p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>  $
            (2,639,487)</b></p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p><b>Loss per common
            share</b> (note 2)</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>  $
            (0.01)</b></p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>  $
              (0.10)</b></p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p><b>Weighted average
            number of common shares outstanding</b></p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>34,057,234</b></p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>25,273,113</b></p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><b><HR SIZE=3></b></p></td>
      </tr>
      <tr>
        <td width=115 colspan=3 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=518  colspan=3 valign=bottom nowrap class="Normal"> <p><b>Consolidated
            Statements of Deficit</b></p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p>(Expressed
            in Canadian Dollars)</p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p>(Unaudited
            - prepared by management)</p></td>
      </tr>
      <tr>
        <td width=115 colspan=3 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=230 colspan=2 valign=bottom nowrap class="Normal"> <p align=right>Three
            months ended December 31,</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>2002</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>2001</p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Deficit, beginning
            of period</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  $
              (114,959,323)</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  $
            (108,455,394)</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Loss for the period</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>(393,842)</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>(2,639,487)</p></td>
      </tr>
      <tr>
        <td width=115 colspan=3 valign=bottom nowrap class="Normal"> <p align=right></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Deficit, end of
            period</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>  $
              (115,353,165)</b></p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>  $
            (111,094,881)</b></p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p>See accompanying
            notes to consolidated financial statements.</p></td>
      </tr>
    </table>
  </div>
  <p><b><HR SIZE=3></b></p>
  <div align=center>
    <table border=0 cellspacing=0 cellpadding=0>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=288 colspan=3 valign=bottom nowrap class="Normal"> <p><b>TASEKO
            MINES LIMITED</b></p></td>
      </tr>
      <tr>
        <td width=288 colspan=3 valign=bottom nowrap class="Normal"> <p><b>Consolidated
            Statements of Cash Flows</b></p></td>
      </tr>
      <tr>
        <td width=288 colspan=3 valign=bottom nowrap class="Normal"> <p>(Expressed
            in Canadian Dollars)</p></td>
      </tr>
      <tr>
        <td width=288 colspan=3 valign=bottom nowrap class="Normal"> <p>(Unaudited
            - prepared by management)</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=230 colspan=2 valign=bottom nowrap class="Normal"> <p align=right>Three
            months ended December 31,</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p><b>Cash provided
            by (used for)</b></p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>2002</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>2001</p></td>
      </tr>
      <tr>
        <td width=518  colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 colspan=3 valign=bottom nowrap class="Normal"> <p><b>Operating
            activities</b></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Loss for the period</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  $
                (393,842)</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  $
              (2,639,487)</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Items not involving
            cash</p></td>
        <td width=115 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Accrued interest
            income on reclamation deposits</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            (298,884)</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            (402,510)</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Depreciation</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            178,377 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  178,266
          </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Write down of mineral
            property acquisition costs</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  600,000
          </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Shares issued for
            loan guarantee</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  400,000
          </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Changes in non-cash
            operating working capital</p></td>
        <td width=115 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Amounts receivable</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            (437,789)</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  155,530
          </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Supplies inventory</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  (1,474)</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            5,334 </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Prepaid expenses</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  53,694
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            5,732 </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Accounts payable
            and accrued liabilities</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  36,804
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  113,323
          </p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            (863,114)</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            (1,583,812)</p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p><b>Investing activities</b></p></td>
        <td width=115 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Cash paid on acquisition
            of Harmony Gold Property</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            (2,230,000)</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Proceeds on sale
            of mineral property interests</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
              1 </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Reclamation deposit
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>    2,500,000
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>    2,500,000
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            (2,229,999)</p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 colspan=3 valign=bottom nowrap class="Normal"> <p><b>Financing
            activities</b></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Bank operating loan</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            (40,403)</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  2,000,000
          </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Advances from related
            parties</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            (2,981,270)</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            (105,390)</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Advances from Gibraltar
            Engineering Services &nbsp;&nbsp;&nbsp;Limited Partnership</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  1,849,000
          </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Common shares issued
            for cash, net of issue costs</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>    4,054,593
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  130,000
          </p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>    1,032,920
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  3,873,610
          </p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p><b>Increase in cash
            and equivalents</b></p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>    2,669,806
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            59,799 </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p><b>Cash and equivalents,
            beginning of period</b></p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  39,104
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            82,296 </p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p><b>Cash and equivalents,
            end of period</b></p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>  $
              2,708,910 </b></p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>  $
            142,095 </b></p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p>Supplementary
            cash flow disclosures (note 9)</p></td>
      </tr>
      <tr>
        <td width=288 colspan=3 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p>See accompanying
            notes to consolidated financial statements.</p></td>
      </tr>
    </table>
  </div>
  <p><b><HR SIZE=3></b></p>
  <div align=center>
    <table border=0 cellspacing=0 cellpadding=0>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=115 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p><b>TASEKO
            MINES LIMITED</b></p></td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p><b>Consolidated
            Schedules of Mineral Property Exploration Expenses</b></p></td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p>(Expressed
            in Canadian dollars)</p></td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p>(Unaudited
            - prepared by management)</p></td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=346 colspan=3 valign=bottom nowrap class="Normal"> <p align=center>Property</p></td>
        <td width=115 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=346 colspan=3 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
        <td width=115 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p><b>Three months
            ended December 31, 2002</b></p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=center>Prosperity</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=center>Gibraltar</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=center>Harmony</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=center>Total</p></td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p><b>Exploration
            expenses</b></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Assays and analysis</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  $ 5,959
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  $ -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  $
            -     </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  $
            5,959 </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Equipment rentals</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  (89)</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  (89)</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>  Geological</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>    12,902
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>    12,902
          </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Mine planning</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  888
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>    37,629
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  6,848
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>    45,365
          </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Site activities</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  165
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            215,162 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  5,625
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            220,952 </p></td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Exploration expenses
            during the period</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  6,923
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            265,693 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>    12,473
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            285,089 </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Cumulative expenses,
            beginning of period</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  41,487,910
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            8,988,583 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  50,476,493
          </p></td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>

      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Cumulative expenses,
            end of period</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>  $
            41,494,833 </b></p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>  $
              9,254,276 </b></p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>  $
              12,473 </b></p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>  $
            50,761,582 </b></p></td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=346 colspan=3 valign=bottom nowrap class="Normal"> <p align=center>Property</p></td>
        <td width=115 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=346 colspan=3 valign=bottom nowrap class="Normal"> <p align=center><HR SIZE=1></p></td>
        <td width=115 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p><b>Three months
            ended December 31, 2001</b></p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=center>Prosperity</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=center>Gibraltar</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=center>Westgarde</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=center>Total</p></td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p><b>Exploration
            expenses</b></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Assays and analysis</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  $
            5,586 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  $
            5,456 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  $
            -     </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  $
              11,042 </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Equipment rentals</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  3,993
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  3,993
          </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Mine planning</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>    11,486
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>    11,486
          </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Site activities</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            459,572 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            459,572 </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Recovery of exploration
            expenses incurred on sale (note 3)</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  (229,999)</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  (229,999)</p></td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Exploration expenses
            (recovery) during the period</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  9,579
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            476,514 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  (229,999)</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            256,094 </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Cumulative expenses,
            beginning of period</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  41,523,768
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            6,650,841 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            210,976 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  48,385,585
          </p></td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom nowrap class="Normal"> <p>Cumulative expenses,
            end of period</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>  $
            41,533,347 </b></p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>  $
              7,127,355 </b></p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>  $
            (19,023)</b></p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>  $
            48,641,679 </b></p></td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p><b>Consolidated
            Schedule of Refinery Project Expenses</b></p></td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p>(Expressed
            in Canadian dollars)</p></td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p>(Unaudited
            - prepared by management)</p></td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal">&nbsp; </td>
        <td width=230 colspan=2 valign=bottom nowrap class="Normal"> <p align=right>Three
            months ended December 31,</p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p><b>Refinery
            Project Expenses</b></p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>2002</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>2001</p></td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p>Engineering</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  $
              -     </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  $
            320,781 </p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p>Environmental
            and permitting</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            57,998 </p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p>Interest</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            73,289 </p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p>Metallurgy</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            10,883 </p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p>Pilot
            plant test work</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            290,680 </p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p>Support
            services</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            518,080 </p></td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p>Expenses
            during the period</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>  -
          </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            1,271,711 </p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p>Cumulative
            expenses, beginning of period</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            5,270,768 </p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right>
            3,571,942 </p></td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom nowrap class="Normal"> <p>Cumulative
            expenses, end of period</p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>  $
            5,270,768 </b></p></td>
        <td width=115 valign=bottom nowrap class="Normal"> <p align=right><b>  $
            4,843,653 </b></p></td>
      </tr>
      <tr>
        <td width=749 colspan=5 valign=bottom nowrap class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
    </table>
  </div>
  <p><b><HR SIZE=3></b></p>
  <p><b>TASEKO MINES LIMITED<br>
    </b>Notes to Consolidated Financial Statements<br>
    For the period ended December 31, 2002<br>
    (Expressed in Canadian Dollars)<br>
    (Unaudited - prepared by management)<br>
    <br>
  </p>
  <p><b>1.                         Continuing operations</b></p>
  <p>Taseko Mines Limited (&quot;Taseko&quot;
    or the &quot;Company&quot;) is incorporated under the laws
    of the Province of British Columbia.   Its principal business activities are
    the operations of the Gibraltar Copper Mine, which is currently on standby
    care and maintenance, and the exploration of the Company&#039;s 100%
    owned Prosperity Gold-Copper property and the Harmony Gold property. The Gibraltar
    Mine and the Prosperity Gold property are located in south central British
    Columbia, Canada, near the City of Williams Lake.   The Harmony Gold property
    is located on Graham Island, Queen Charlotte Islands - Haida Gwaii, British
    Columbia.</p>
  <p>The Company&#039;s continuing
    operations and the underlying value and recoverability of the amounts shown
    for the Prosperity and Harmony mineral property interests are entirely dependent
    upon the existence of economically recoverable mineral reserves, the ability
    of the Company to obtain the necessary financing to complete the exploration
    and development of its mineral property interests, and upon future profitable
    production or proceeds from the disposition of its mineral property interests.
    The recoverability of the amounts shown for the Gibraltar Mine mineral property
    interest and related plant and equipment and supplies inventory is dependent
    upon the ability of the Company to obtain the necessary financing to re-start
    operations of the mine, should metal prices and other factors warrant it,
    and upon future profitable production or proceeds from the disposition of
    the mine.</p>
  <p>These financial statements
    are prepared on the basis that the Company will continue as a going concern.
    As at December 31, 2002, the Company had recorded significant losses and operating
    cash flow deficiencies in each of the last three fiscal years.   Management
    recognizes that the Company must generate additional financial resources in
    order to meet liabilities as they come due and to enable it to continue operations.
    The Company and its financial advisors are actively targeting sources of additional
    funding through alliances with financial, exploration and mining entities
    or other business and financial transactions which would generate sufficient
    resources to assure continuation of the Company&#039;s operations and
    exploration programs.   However, there can be no assurances that the Company
    will obtain additional financial resources and/or achieve profitability or
    positive cash flows.   If the Company is unable to obtain adequate additional
    financing, the Company will be required to curtail operations and exploration
    activities.   These financial statements do not reflect adjustments, which
    could be material, to the carrying values of assets and liabilities which
    may be required should the Company be unable to continue as a going concern.
  </p>
  <p><b><HR SIZE=3></b></p>
  <p><b>2.                         Significant accounting policies</b></p>
  <p><b><i>Basis of presentation
    and principles of consolidation</i></b></p>
  <p>These financial statements
    have been prepared in accordance with Canadian generally accepted accounting
    principles (&quot;GAAP&quot;).   </p>
  <p>These consolidated financial
    statements include the accounts of Taseko, its wholly-owned subsidiaries,
    Taseko Resources Inc., Concentrated Exploration Ltd. (note 5(e)), Concentrated
    Exploration 2000 Ltd. (note 5(e)), Gibraltar Refinery (2002) Ltd. (note 5(e))
    and Gibraltar Mines Ltd. (note 5(a)), its 70% owned subsidiary Cuisson Lake
    Mines Ltd. (note 5(a)), and its interest in Gibraltar Engineering Services
    Limited Partnership (&quot;GESL Partnership&quot;) (note 5(a)).
    All material intercompany accounts and transactions have been eliminated.
  </p>
  <p><b><i>Cash and equivalents</i></b></p>
  <p>Cash and equivalents consist
    of cash and highly liquid investments, having maturity dates of three months
    or less from the date of acquisition, that are readily convertible to known
    amounts of cash.</p>
  <p><b><i>Supplies inventory </i></b></p>
  <p>Supplies inventory is reported
    at the lower of moving average cost and net realizable value.</p>
  <p><b><i>Property, plant and
    equipment</i></b></p>
  <p>Plant and equipment are stated
    at cost less accumulated depreciation.   Depreciation is recorded over the
    estimated economic life of the plant and equipment on a straight line basis
    at annual rates ranging from 1.3% to 16.5%, except for the solvent extraction/electrowinning
    plant and equipment included in Gibraltar Mine plant and equipment (note 4),
    which are depreciated on a straight line basis at rates from 20% to 50% per
    annum.</p>
  <p><b><i>Mineral property interests</i></b></p>
  <p>The Company defers mineral
    property acquisition costs on a property-by-property basis.   Exploration expenditures
    and option payments incurred prior to the determination of the feasibility
    of mining operations are charged to operations as incurred.   Development expenditures
    incurred subsequent to such determination, to increase production, or to extend
    the life of existing production are capitalized, except as noted below.   Such
    acquisition costs and deferred development expenditures are amortized and
    depreciated over the estimated life of the property, or written off to operations
    if the property is abandoned, allowed to lapse, or if there is little prospect
    of further work being carried out by the Company or its option or joint venture
    partners.</p>
  <p>All costs incurred by the
    Company during the standby care and maintenance period at the Gibraltar Mine
    are expensed as incurred (note 5(a)). </p>
  <p>Mineral property acquisition
    costs include the cash consideration and the fair market value of common shares,
    based on the trading price of the shares at the agreement date, issued for
    mineral property interests, pursuant to the terms of the relevant agreement.
    Payments relating to a property acquired under an option or joint venture
    agreement, where such payments are made at the sole discretion of the Company,
    are recorded in the accounts upon payment.</p>
  <p>Costs related to feasibility
    work and the development of processing technology are expensed as incurred.
    Costs incurred subsequent to the determination of the feasibility of the processing
    technology will be capitalized and amortized over the life of the related
    plant.</p>
  <p>Administrative expenditures
    are expensed as incurred.</p>
  <p>The amount shown for mineral
    property interests represents costs incurred to date and the fair value of
    shares issued to date relating to acquisition costs, less write-downs (note
    5), but does not necessarily reflect present or future values.</p>
  <p><b><i>Share capital</i></b></p>
  <p>Common shares issued for non-monetary
    consideration are recorded at fair value based upon the trading price of the
    shares on the TSX Venture Exchange on the date of the agreement to issue the
    shares. </p>
  <p>The proceeds, net of issue
    costs, from common shares issued pursuant to flow-through share financing
    agreements are credited to share capital and the tax benefits of these exploration
    expenditures are transferred to the purchaser of the shares.</p>
  <p><b><i>Share purchase option
    compensation plan</i></b></p>
  <p>The Company has a share purchase
    option compensation plan, which is described in Note 7(d).   No compensation
    expense is recognized for this plan when stock options are granted.   Any consideration
    paid on exercise of stock options is credited to share capital.</p>
  <p><b><i>Income taxes</i></b></p>
  <p>The Company uses the asset
    and liability method of accounting for income taxes.   Under this method, future
    income tax assets and liabilities are computed based on differences between
    the carrying amount of assets and liabilities on the balance sheet and their
    corresponding tax values, generally using the substantively enacted income
    tax rates expected to apply to taxable income in the years in which those
    temporary difference are expected to be recovered or settled. Future income
    tax assets also result from unused loss carry forwards, resource-related pools,
    and other deductions. Future tax assets are recognized to the extent that
    they are considered more likely than not to be realized. The valuation of
    future income tax assets is adjusted, if necessary, by the use of a valuation
    allowance to reflect the estimated realizable amount.</p>
  <p><b><i>Loss per common share</i></b></p>
  <p>Basic loss per common share
    is calculated by dividing the loss available to common shareholders by the
    weighted average number of common shares outstanding during the period.   For
    all periods presented, loss available to common shareholders equals the reported
    loss.</p>
  <p>Diluted loss per share is
    calculated using the treasury stock method.   Under the treasury stock method,
    the weighted average number of common shares outstanding used for the calculation
    of diluted loss per share assumes that the proceeds to be received on the
    exercise of dilutive stock options and warrants are used to repurchase common
    shares at the average market price during the period. </p>
  <p>Diluted loss per share has
    not been presented as the effect of the outstanding options and warrants would
    be anti-dilutive.</p>
  <p><b><i>Fair value of financial
    instruments</i></b></p>
  <p>The carrying amounts of cash
    and equivalents, amounts receivable, reclamation deposits, bank operating
    loan and accounts payable and accrued liabilities, approximate their fair
    values due to their short terms to maturity.   The fair value of the convertible
    debenture and the tracking preferred shares are not readily determinable with
    sufficient reliability due to the difficulty in obtaining appropriate market
    information.   It is not practicable to determine the fair values of the advances
    due to related parties because of the related party nature of such amounts
    and the absence of a secondary market for such instruments.   Details of the
    terms of these financial instruments are disclosed in the notes to the financial
    statements.</p>
  <p><b><i>Use of estimates</i></b></p>
  <p>The presentation of financial
    statements in conformity with Canadian generally accepted accounting principles
    requires management to make estimates and assumptions that affect the reported
    amounts of assets and liabilities and the disclosure of contingent assets
    and liabilities at the date of the financial statements and the reported amounts
    of revenue and expenses during the reporting period.   Significant areas requiring
    the use of management estimates include the determination of impairment, if
    any, of mineral property interests and plant and equipment, the balance of
    reclamation liability and rates for depreciation.   Actual results could differ
    from those estimates.</p>
  <p><b><i>Segment disclosures</i></b></p>
  <p>The Company operates in a
    single reportable operating segment, the exploration, development and operation
    of mineral property interests, within the geographic area of British Columbia,
    Canada.</p>
  <p><b><i>Comparative figures</i></b></p>
  <p>Certain of the prior periods&#039;
    comparative figures have been restated to conform with the presentation adopted
    for the current period.</p>
  <p><b><HR SIZE=3></b></p>
  <p><b>3.                         Arrangement
    Agreement</b></p>
  <p><b><i>Harmony Gold Property</i></b></p>
  <p>In October 2001, the Company
    and its subsidiary Gibraltar Mines Ltd. (&#039;Gibraltar&quot;)
    completed the acquisition of the Harmony Gold Property and related assets
    from Continental Minerals Corporation (&quot;Continental&quot;)
    (formerly Misty Mountain Gold Limited), a British Columbia company with certain
    directors in common with Taseko, for 12,483,916 series &quot;A&quot;
    non-voting tracking preferred shares of Gibraltar and $2.23 million cash.
    Subsequent to closing, a dissenting shareholder of Continental exchanged his
    717,500 Gibraltar preferred shares for 114,800 common shares of the Company.
    The tracking preferred shares are designed to track and capture the value
    of the Harmony Gold Property and will be converted into common shares of Taseko
    upon a realization event, such as a sale to a third party or commercial production
    at the Harmony Gold Property, or at the option of Gibraltar, if a realization
    event has not occurred within ten years.   Accordingly, the tracking preferred
    shares have been classified within shareholders&#039; equity on the
    consolidated balance sheet.</p>
  <p>As this acquisition was a
    related party transaction not in the normal course of business that was not
    the culmination of an earnings process, the acquisition was recorded by the
    Company at the net book value of the assets transferred, net of cash consideration,
    as follows:</p>
  <div align=center>
    <table border=0 cellspacing=0 cellpadding=0>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p><b>Assets
            acquired</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center><b><u>Amount</u></b></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Property
            and equipment</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$
            8,488</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Reclamation
            deposit</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  175,000</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Mineral
            property interests</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  28,811,296</p></td>
      </tr>
      <tr>
        <td width=403 colspan=2 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
            28,994,784</b></p></td>
      </tr>
      <tr>
        <td width=403 colspan=2 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p><b>Consideration
            given</b></p></td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Cash</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$
              2,230,000</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>12,483,916
            tracking preferred shares of Gibraltar </p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  26,641,948</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>114,800
            common shares of the Company</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  122,836</p></td>
      </tr>
      <tr>
        <td width=403 colspan=2 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
            28,994,784</b></p></td>
      </tr>
      <tr>
        <td width=403 colspan=2 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
    </table>
  </div>
  <p>The Gibraltar tracking preferred
    shares issued to Continental were recorded for Canadian tax purposes at a
    paid up amount of $62.77 million, but such amount is subject to adjustment
    based on the fair value of Taseko common shares ultimately received by Continental.
    As previously noted, the Gibraltar tracking preferred shares are redeemable
    for common shares of Taseko upon the occurrence of certain value realization
    events for the Harmony Gold Property.   The tracking preferred shares are redeemable
    at specified prices per common share of Taseko starting at $3.39 and escalating
    by $0.25 per year.   If a realization event does not occur within ten years
    from the date of issue, Gibraltar has the right to redeem the tracking preferred
    shares for Taseko common shares at a deemed price equal to the greater of
    the average 20 day trading price of the common shares of Taseko and $10.00.
    The Taseko common shares to be issued to Continental upon a realization event
    will in turn be distributed pro-rata, after adjustment for any taxes, to the
    holders of redeemable preferred shares of Continental that were issued to
    Continental shareholders at the time of the Arrangement Agreement.</p>
  <p>In connection with this acquisition,
    Taseko sold its interest in the Westgarde property to Continental for $230,000
    cash, which was been presented as a recovery of exploration expenses incurred,
    and exchanged its 5% net profits interest, valued at $600,000, in the Harmony
    Project for a 1% working interest, valued at $600,000, in the Company&#039;s
    Prosperity Property held by a limited partnership beneficially controlled
    by Continental.   In connection with this Arrangement Agreement, the Company
    undertook a bank loan in the amount of $2,000,000, which is fully secured
    by a private company controlled by one of the directors of Taseko.   In consideration
    for providing security for this loan, the Company issued 606,061 common shares
    (note 6).</p>
  <p><b><HR SIZE=3></b></p>
  <p><b>4.                         Property,
    plant and equipment</b></p>
  <div align=center>
    <table border=0 cellspacing=0 cellpadding=0>
      <tr>
        <td width=192 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
        <td width=230 colspan=2 valign=bottom class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=653 colspan=5 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=192 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal"> <p align=center>Cost
            December 31, 2002 and</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>Accumulated
            depreciation to</p></td>
        <td width=230 colspan=2 valign=bottom class="Normal"> <p align=center>Net
            book value</p></td>
      </tr>
      <tr>
        <td width=192 valign=bottom class="Normal"> <p><b>Prosperity
            Property Equipment</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>September
            30, 2002</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>December
            31, 2002</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>December
            31, 2002</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>September
            30, 2002</p></td>
      </tr>
      <tr>
        <td width=653 colspan=5 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=192 valign=bottom class="Normal"> <p>Field</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$
            11,879</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$
            9,610</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$
            2,269</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$
            2,453</p></td>
      </tr>
      <tr>
        <td width=192 valign=bottom class="Normal"> <p>Computer
            and office</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  15,172</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  13,453</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  1,719</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  1,858</p></td>
      </tr>
      <tr>
        <td width=653 colspan=5 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=192 valign=bottom class="Normal"> <p>Total
            Prosperity Property</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
            27,051</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
            23,063</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
            3,988</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
            4,311</b></p></td>
      </tr>
      <tr>
        <td width=653 colspan=5 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
    </table>
  </div>
  <div align=center>
    <table border=0 cellspacing=0 cellpadding=0>
      <tr>
        <td width=192 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
        <td width=230 colspan=2 valign=bottom class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=653 colspan=5 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=192 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal"> <p align=center>Cost
            December 31, 2002 and</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>Accumulated
            depreciation to</p></td>
        <td width=230 colspan=2 valign=bottom class="Normal"> <p align=center>Net
            book value</p></td>
      </tr>
      <tr>
        <td width=192 valign=bottom class="Normal"> <p><b>Gibraltar
            Mine Plant and Equipment</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>September
            30, 2002</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>December
            31, 2002</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>December
            31, 2002</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>September
            30, 2002</p></td>
      </tr>
      <tr>
        <td width=653 colspan=5 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=192 valign=bottom class="Normal"> <p>Buildings
            and equipment</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$
            5,931,580</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$
            359,370</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$
            5,572,210</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$
            5,591,160</p></td>
      </tr>
      <tr>
        <td width=192 valign=bottom class="Normal"> <p>Mine
            equipment</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  5,454,001</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  1,708,877</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  3,745,124</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  3,862,349</p></td>
      </tr>
      <tr>
        <td width=192 valign=bottom class="Normal"> <p>Plant
            and equipment</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  1,015,303</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  474,458</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  540,845</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  573,392</p></td>
      </tr>
      <tr>
        <td width=192 valign=bottom class="Normal"> <p>Vehicles</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  152,854</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  75,204</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  77,650</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  82,809</p></td>
      </tr>
      <tr>
        <td width=192 valign=bottom class="Normal"> <p>Computer
            equipment</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  101,162</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  60,831</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  40,331</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  44,504</p></td>
      </tr>
      <tr>
        <td width=653 colspan=5 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=192 valign=bottom class="Normal"> <p>Total
            Gibraltar Mine</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
            12,654,900</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
            2,678,740</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
            9,976,160</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
            10,154,214</b></p></td>
      </tr>
      <tr>
        <td width=653 colspan=5 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=192 valign=bottom class="Normal"> <p>Total
            property, plant and equipment</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
            12,681,951</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
            2,701,803</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
            9,980,148</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
            10,158,525</b></p></td>
      </tr>
      <tr>
        <td width=653 colspan=5 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
    </table>
  </div>
  <p>As part of the acquisition
    of the Gibraltar Mine in 1999, the Company pledged the Gibraltar Mine plant
    and equipment as well as reclamation deposits ($16.2 million at December 31,
    2002), as security for the then-estimated environmental liability of $32.7
    million assumed as part of the acquisition.</p>
  <p><b><HR SIZE=3></b></p>
  <p><b>5.                         Mineral
    property interests </b></p>
  <div align=center>
    <table border=0 cellspacing=0 cellpadding=0>
      <tr>
        <td width=518 colspan=3 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal"> <p align=right>December
            31, 2002</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>September
            30, 2001</p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Gibraltar
            Copper Mine (note 5(a))</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$
            1,000</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$
            1,000</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Prosperity
            Gold-Copper Property (note 5(b))</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  1,000</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  1,000</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Harmony
            Gold Property (note 5(c))</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  28,811,296</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  28,811,296</p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
            28,813,296</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
            28,813,296</b></p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
    </table>
  </div>
  <p><b><i>(a)                     Gibraltar
    Copper Mine</i></b></p>
  <p>In 1999, the Company, through
    Gibraltar Mines Ltd., acquired a 100% interest in the Gibraltar Copper Mine
    mineral property, located near Williams Lake, British Columbia, Canada from
    Boliden Westmin (Canada) Limited (&quot;BWCL&quot;), for $3,324,844.
    This acquisition included 100% of NGMT Resources Limited and 70% of the shares
    of Cuisson Lake Mines Ltd., companies with mineral property interests within
    the Gibraltar mine property.   The Company subsequently entered into an agreement
    whereby a party purchased a 7.5% interest in the Gibraltar mine property for
    $352,500, which was subsequently reacquired in fiscal 2000 (note 5(e)).   As
    part of its operating permits, Gibraltar Mines Ltd. agreed to incur a total
    of $4,000,000 on reclamation and environmental programs during the six year
    period July 1999 to July 2005, of which a total of $2,131,650 had been incurred
    to December 31, 2002.</p>
  <p>In fiscal 2001, Gibraltar
    Mines Ltd., Gibraltar Engineering Services Limited Partnership (the &quot;GESL
    Partnership&quot;) (see note 5(e)) and Cominco Engineering Services
    Ltd. (&quot;CESL&quot;) concluded a Memorandum of Agreement
    (&quot;MOA&quot;) to jointly complete an evaluation for a
    potential hydrometallurgical copper refinery at the Gibraltar mine.   The parties
    initially agreed to complete a $2.7 million detailed investigation of the
    feasibility of the refinery, including the production and bulk testing of
    six tonnes of concentrate through CESL&#039;s existing pilot plant.
    CESL and GESL Partnership were each responsible for funding 50% of these evaluation
    costs.</p>
  <p>GESL Partnership is a limited
    partnership formed under the laws of British Columbia, which commenced business
    on October 1, 2000.   The Company was the initial limited partner of the GESL
    Partnership. The principal business activity of the GESL Partnership is to
    conduct an integrated engineering and contract services business. It has implemented
    a defined work program, the results of which will contribute to a final determination
    of the feasibility of commercializing a hydrometallurgical technology developed
    by CESL for extracting copper from concentrates in a proposed refinery to
    be located at the Gibraltar Mine (the &quot;Gibraltar Refinery&quot;).</p>
  <p>The GESL Partnership has the
    right, in the event that a final decision is made to proceed with the construction
    of the Gibraltar Refinery on or before June 30, 2003, to provide necessary
    engineering services relating to a start-up of operations at the Gibraltar
    Mine, and for the final design, tendering, procurement and construction of
    the Gibraltar Refinery, as well as the right to become contract operator of
    the Gibraltar Mine, the Gibraltar Mine concentrator and the Gibraltar Refinery.
    In each case, the GESL Partnership will provide its services for a fixed fee
    equal to industry standard rates for such services, and such services will
    be provided pursuant to a definitive consulting and operating agreement negotiated
    in good faith between the parties and containing customary industry terms
    and conditions<b>.   </b></p>
  <p>If Gibraltar Mines Ltd. does
    not proceed with the construction of the Gibraltar Refinery, the GESL Partnership
    has the right to construct, own and operate a refinery utilizing the CESL
    technology at the Gibraltar mine site, subject to the approval by CESL of
    satisfactory licensing arrangements for the use of the CESL technology.   In
    addition, if Gibraltar Mines Ltd. does not proceed with the construction of
    the Gibraltar Refinery, the GESL Partnership has the right, until July 1,
    2006, to provide engineering and contract operation services to Gibraltar
    Mines Ltd. or any other party, for the construction and operation of a refinery
    using the CESL technology on the Gibraltar property, subject to the approval
    by CESL of satisfactory licensing arrangements for the use of the CESL technology.</p>
  <p>To December 31, 2002, the
    GESL Partnership incurred project costs of $4,956,438 (September 30, 2001
    - $3,571,942), including expenses originally contemplated under the MOA but
    excluding the premium of $314,330 on acquisition of Gibraltar Refinery (2002)
    Ltd., bringing the total to $5,270,768 (see note 5(e)).   Expenses incurred
    in excess of the amounts agreed to in the original MOA were funded by Taseko
    and the GESL Partnership.</p>
  <p>The Company retained Procorp
    Services Limited Partnership (&quot;Procorp&quot;) to provide
    technical, financial, management and marketing services related to all facets
    of the start-up, expansion and development of the Gibraltar Mine and the proposed
    hydrometallurgical refinery.   Procorp is a mining services, financing and
    marketing partnership comprised of experienced, specialized independent contractors
    as well as members who are also directors and officers of the Company.   Compensation
    to Procorp included an initial payment of US$900,000 for services rendered
    in fiscal 2001 and 2002 (paid) and a second payment of US$900,000 upon successful
    recommencement of commercial production of the Gibraltar Mine.   In addition,
    the Company agreed, subject to regulatory approval, to issue to Procorp 3.4
    million warrants to purchase common shares of the Company at a price of $1.70
    per share for five years upon successful recommencement of commercial production
    at the Gibraltar Mine.</p>
  <p>The Gibraltar Mine has been
    on care and maintenance since being acquired in 1999.   Due to continued uncertainty
    regarding start-up and an extended cycle of depressed metal prices, the Company
    wrote down the accumulated mineral property interest acquisition costs of
    $5,936,568 to a nominal $1,000 during fiscal 2001.</p>
  <p><b><i>(b)                     Prosperity
    Gold-Copper Property</i></b></p>
  <p>The Company owns 100% of the
    Prosperity Gold-Copper Property, located in the Clinton Mining Division, British
    Columbia, Canada, which was acquired prior to 1995 for total cash and share
    consideration of $28,660,010.   During fiscal 1999, the Company entered into
    an agreement that allowed a party to earn up to a 5% working interest in the
    Prosperity Property, which was subsequently reacquired in fiscal 2000 (note
    5(e)), and entered into an agreement that allowed an exploration limited partnership
    controlled by Continental to earn a 1% working interest in the property for
    $600,001, which was reacquired in October 2001 (note 3).   </p>
  <p>During fiscal 2001, the Prosperity
    Project was written down to a nominal $1,000 to reflect the extended depressed
    conditions in the metal markets and the Company&#039;s intention to
    defer significant work on the project until a sustained recovery of metal
    prices had occurred.   The working interest previously held by Continental
    was written down to a nominal amount when it was reacquired.</p>
  <p><b><i>(c)                     Harmony
    Gold Property (note 3)</i></b></p>
  <p>In February 1999, the Company
    acquired a 5% net profits royalty on the Harmony Gold Property located in
    the Skeena Mining Division on Graham Island, Queen Charlotte Islands - Haida
    Gwaii, British Columbia, Canada, for $600,000, and purchased for $1, an exclusive
    farm-out right to earn up to a 10% working interest in the Harmony Property,
    by expending $600,000 for each 1% working interest prior to January 1, 2001.
    The Harmony Gold Property was owned by Continental, a public British Columbia
    company with certain directors and officers in common with the Company.   During
    fiscal 2001, the Company allowed this working interest option to expire, unexercised.</p>
  <p>Under the terms of an Arrangement
    Agreement (note 3), the Company acquired a 100% interest in the Harmony Gold
    Property in fiscal 2002.</p>
  <p><b><i>(d)                     Westgarde
    Property</i></b></p>
  <p>The Westgarde Property consists
    of 27 contiguous mineral claims that contain a copper prospect covering an
    area of 6000 hectares located 63 kilometres south of Smithers, British Columbia.</p>
  <p>Revelation Exploration Limited
    Partnership (&quot;Revelation&quot;), of which Gibraltar Mines
    Ltd. is the original limited partner, arranged for the staking of 13 claims
    and signed an option agreement dated December 7, 2000, on behalf of Gibraltar
    Mines Ltd., whereby Revelation may earn a 100% interest in 14 claims known
    as the Star and CL claims.   In order for the option to be exercised, cash
    payments totaling $870,000, plus share issuances of total value of not less
    than $1,290,000 were to be made on or before January 1, 2010.   An initial
    cash payment of $30,000 was paid on December 7, 2000.   During fiscal 2002,
    the Westgarde Property, including the Star and CL claims, was sold to Continental
    for $230,000 (note 3). </p>
  <p><b><i>(e)                     Farm-out,
    joint venture and acquisition agreements</i></b></p>
  <p>In February 1999, the Company
    entered into a farm-out agreement with Concentrated Exploration 1999 Limited
    Partnership (&quot;CELP99&quot;), whereby CELP99 could earn
    up to a 5% working interest in the Prosperity Property project on the basis
    of a 1.5% working interest for each $900,000 expended.   Pursuant to a July
    1999 acquisition and joint venture agreement, CELP99 purchased a 7.5% interest
    in the Gibraltar mineral lands for $352,500 by way of a note receivable due
    July 31, 2001 which bore interest at 8% per annum, and agreed to use reasonable
    efforts to expend up to $4.5 million on the Gibraltar Project by January 31,
    2000.   CELP99 was a private British Columbia based resource exploration limited
    partnership that raised approximately $4.7 million for the purposes of incurring
    exploration expenditures on the Company&#039;s Prosperity and Gibraltar
    mining projects.   The Company had a call right to repurchase both of CELP99&#039;s
    Prosperity and Gibraltar working interests by issuing shares of the Company
    for CELP99&#039;s investment in each project, at 122% and 135% of the
    earn-in expenditures of the respective projects.   </p>
  <p>On January 31, 2000, the Company
    reached an agreement with CELP99 whereby the Company made a takeover bid offer
    to acquire, for Taseko shares, all of the shares of CELP99&#039;s subsidiary,
    Concentrated Exploration 2000 Ltd. (&quot;CEL2000&quot;) for
    $5,484,574, which had acquired the 7.5% interest in the Gibraltar mineral
    lands owned by CELP99 and the 3.61% working interest in the Prosperity mineral
    property earned by CELP99.   In February 2000, the Company issued 2,492,988
    common shares at a value of $2.20 per share to CELP99 to complete the acquisition.
    In addition to the Prosperity and Gibraltar property interests, CEL2000 had
    working capital deficiency of $661,624, which included cash of $52,456, and
    held 34,620 common shares of the Company, at the time of completion of the
    acquisition.</p>
  <p>In December 2001, the GESL
    Partnership completed a private placement of limited partnership units for
    aggregate proceeds of $1.85 million. In February 2002, the Company issued
    4,966,659 Taseko common shares at a value of $0.44 per share to complete the
    acquisition of Gibraltar Refinery (2002) Ltd., which had acquired the private
    placement units of the GESL Partnership.   The Company also issued 50,000 Taseko
    common shares to its financial adviser in connection with this acquisition.</p>
  <p>A further $3 million of expenditures
    were incurred by the GESL Partnership, which were financed by a separate partnership,
    the GESL Refinery Process (&quot;GRP&quot;) Partnership, for a total financing
    amount of $4,850,000. In December 2002, a general partnership interest in
    the GRP Partnership was acquired and financed by a third party for $3,000,000.
    Pursuant to a call option agreement dated December 27, 2002, the Company has
    an exclusive option, until August 31, 2003, to acquire the third party&#039;s
    general partnership interest in the GRP Partnership for $3.5 million, at the
    Company&#039;s sole discretion, in either cash or through an issuance
    of Taseko common shares, valued at the prevailing ten-day weighted average
    closing price of the Company&#039;s common shares as quoted on the TSX
    Venture Exchange for the period ending immediately prior to the Company&#039;s
    delivery of a letter to exercise its option.</p>
  <p><b><HR SIZE=3></b></p>
  <p><b>6.                         Bank operating loan</b></p>
  <p>During fiscal 2002, the Company
    negotiated a $2 million bank operating line of credit with a Canadian chartered
    bank at an interest rate of prime, with no fixed terms of repayment.   A private
    company affiliated with a director has provided a fully collateralized guarantee
    and received 606,061 common shares of the Company in exchange for the guarantee.
    The market value of the shares issued was included in interest expense in
    the fiscal 2002 consolidated statement of operations.</p>
  <p><b><HR SIZE=3></b></p>
  <p><b>7.                         Share capital</b></p>
  <p><b><i>(a)                     Authorized</i></b></p>
  <p>Authorized share capital of
    the Company consists of 100,000,000 common shares without par value.</p>
  <p><b><i>(b)                     Issued
    and outstanding </i></b></p>
  <div align=center>
    <table border=0 cellspacing=0 cellpadding=0>
      <tr>
        <td width=288 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p align=center>Common
            shares</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>Number
            of Shares</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>Amount</p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Balance,
            issued and outstanding, September 30, 2000 and 2001</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  25,067,697</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  $
            87,973,363</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Less
            34,620 shares of the Company held by CEL2000 (note 5(e))</p></td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  (76,164)</p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Balance,
            September 30, 2000 and 2001</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  25,067,697</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>
            87,897,199</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Issued
            during the year to a dissenting Continental shareholder in exchange
            for   Gibraltar preferred shares at $1.07 per share (note 3)</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  114,800</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  122,836</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Loan
            guarantee at $0.66 per share (note 6)</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  606,061</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  400,000</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Private
            placement at $0.50 per share, net of issue costs</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  414,850</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  185,835</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Private
            placement at $0.47 per share, net of issue costs</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  276,596</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  130,000</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Private
            placement at $0.40 per share, net of issue costs</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  375,000</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  150,000</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>For
            the acquisition of Gibraltar Refinery (2002) Ltd. at $0.44 per share,
              net of issue costs (note 5(e))</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>
            4,966,659</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>
            2,163,330</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>For
            debt settlement at $0.40 per share </p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  2,100,000</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  840,000</p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Balance,
            September 30, 2002</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  33,921,663</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$
            91,889,200</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Issued
            during the period</p></td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Private
            placement at $0.30 per share<sup>(<i>i</i>)</sup></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  2,185,000</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  655,500</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Private
            placement at $0.30 per share<sup>(<i>ii</i>)</sup></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  4,232,001</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  1,269,600
          </p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Private
            placement at $0.40 per share<sup>(<i>iii</i>)</sup></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  5,787,500</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  2,315,000</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Issue
            costs</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  268,000</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  (185,507)</p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Balance,
            December 31, 2002</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>  46,394,164</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
            95,943,793</b></p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
    </table>
  </div>
  <p>On December 31, 2002, the
    Company closed three equity private placements of its securities, as follows:</p>
  <p><i>(i)                     </i>2,185,000
    common shares at $0.30 per share, subscribed to by Hunter Dickinson Inc.,
    a private company with certain directors in common.</p>
  <p>(<i>ii</i>)                    4,232,001
    units at $0.30 per unit.   Each unit consisted of one common share and one
    non-transferable common share purchase warrant exercisable at $0.50 per share
    until December 31, 2004.     </p>
  <p>(<i>iii</i>)                 5,787,500
    flow-through units at $0.40 per unit.   Each unit consisted of one flow-through
    common share and one-half of a non-transferable common share purchase warrant.
    Each whole common share purchase warrant entitles the holder to purchase one
    common share at a price of $0.50 per share until December 31, 2004.   Effective
    December 31, 2002, the Company renounced $2.315 million in Canadian Exploration
    Expenditures (&quot;CEE&quot;) to the flow-through investors.
    To meet its flow-through commitments, the Company is required to spend $2.315
    million on qualified CEE by December 31, 2003.</p>
  <p><b><i>(c)                     Convertible
    debenture</i></b></p>
  <div align=center>
    <table border=0 cellspacing=0 cellpadding=0>
      <tr>
        <td width=384 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=633 colspan=2 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal"> <p align=center>December
            31, and September 30, 2002</p></td>
      </tr>
      <tr>
        <td width=633 colspan=2 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=518 valign=bottom class="Normal"> <p>Convertible
            debenture</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$
            17,000,000</p></td>
      </tr>
      <tr>
        <td width=518 valign=bottom class="Normal"> <p>Price
            per common share of the unexercised conversion right</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$      3.89</p></td>
      </tr>
      <tr>
        <td width=518 valign=bottom class="Normal"> <p>Number
            of common shares potentially issuable under unexercised conversion
            right </p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>
            4,370,180</b></p></td>
      </tr>
      <tr>
        <td width=633 colspan=2 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
    </table>
  </div>
  <p>(i)                       On July 21,
    1999, in connection with the acquisition of the Gibraltar Mine, the Company
    issued a $17 million interest-free debenture to BWCL, which is due on July
    21, 2009, but is convertible into common shares of the Company over a 10 year
    period commencing at a price of $3.14 per share in year one and escalating
    by $0.25 per share per year thereafter.   BWCL&#039;s purchase of the
    convertible debenture was payable as to $4,000,000 in July 1999, $1,000,000
    on October 19, 1999, $3,500,000 on July 21, 2000, and $8,500,000 by December
    31, 2000, all of which were received.   BWCL has the right to convert, in part
    or in all from time to time, the debenture into fully paid common shares of
    the Company from year one to year ten. </p>
  <p>From the commencement of the
    sixth year to the tenth year, the Company has the right to automatically convert
    the debenture into common shares at the then-prevailing market price.   Since
    the Company has the right and the intention to settle the convertible debenture
    through the issuance of common shares, notwithstanding the Company&#039;s
    right to settle the debenture with cash, it has been included as a separate
    component of shareholders&#039; equity on the balance sheet.</p>
  <p>(ii)                     In connection with the acquisition of the Gibraltar Mine assets from BWCL, the Company agreed to place the $8,500,000 debenture
    payment received on December 29, 2000 as a reclamation deposit to replace
    an $8,500,000 letter of credit previously posted by BWCL.   </p>
  <p><b><i>(d)                     Share
    purchase option compensation plan</i></b></p>
  <p>The Company has a share purchase
    option compensation plan approved by the shareholders that allows it to grant
    up to 4,400,000 share purchase options, subject to regulatory terms and approval,
    to its employees, officers, directors and consultants.   The exercise price
    of each option can be set equal to or greater than the closing market price
    of the common shares on the TSX Venture Exchange on the day prior to the date
    of the grant of the option, less any allowable discounts.   Options have a
    maximum term of ten years and terminate 30 to 90 days following the termination
    of the optionee&#039;s employment or term of engagement, except in the
    case of retirement or death.   In the case of retirement, they terminate 30
    to 90 days following retirement, at management&#039;s discretion.   In
    the case of death, they terminate at the earlier of one year after the event
    or the expiry of the options.   Vesting of options is done at the discretion
    of the Board of Directors at the time the options are granted.</p>
  <p>The continuity of share purchase
    options is as follows:</p>
  <div align=center>
    <table border=0 cellspacing=0 cellpadding=0>
      <tr>
        <td width=234 valign=bottom class="Normal">&nbsp; </td>
        <td width=87 valign=bottom class="Normal">&nbsp; </td>
        <td width=99 colspan=2 valign=bottom class="Normal">&nbsp; </td>
        <td width=99 colspan=2 valign=bottom class="Normal">&nbsp; </td>
        <td width=99 colspan=2 valign=bottom class="Normal">&nbsp; </td>
        <td width=99 colspan=2 valign=bottom class="Normal">&nbsp; </td>
        <td width=99 colspan=2 valign=bottom class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=920 colspan=12 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=234 valign=bottom class="Normal">&nbsp; </td>
        <td width=193 colspan=4 valign=bottom class="Normal"> <p align=center>For
            the three months ended<br>
            December 31,</p></td>
        <td width=389 colspan=7 valign=bottom class="Normal"> <p align=center>For
            the years ended September 30,</p></td>
      </tr>
      <tr>
        <td width=234 valign=bottom class="Normal">&nbsp; </td>
        <td width=193 colspan=4 valign=bottom class="Normal"> <p align=center><b>2002</b></p></td>
        <td width=193 colspan=4 valign=bottom class="Normal"> <p align=center><b>2002</b></p></td>
        <td width=196 colspan=3 valign=bottom class="Normal"> <p align=center><b>2001</b></p></td>
      </tr>
      <tr>
        <td width=234 valign=bottom class="Normal">&nbsp; </td>
        <td width=690 colspan=11 valign=bottom class="Normal"> <p align=right></p></td>
      </tr>
      <tr>
        <td width=234 valign=bottom class="Normal">&nbsp; </td>
        <td width=98 colspan=2 valign=bottom class="Normal"> <p align=right>Number</p></td>
        <td width=95 colspan=2 valign=bottom class="Normal"> <p align=right>Average</p></td>
        <td width=98 colspan=2 valign=bottom class="Normal"> <p align=right>Number</p></td>
        <td width=95 colspan=2 valign=bottom class="Normal"> <p align=right>Average</p></td>
        <td width=101 colspan=2 valign=bottom class="Normal"> <p align=right>Number</p></td>
        <td width=95 valign=bottom class="Normal"> <p align=right>Average</p></td>
      </tr>
      <tr>
        <td width=234 valign=bottom class="Normal">&nbsp; </td>
        <td width=98 colspan=2 valign=bottom class="Normal"> <p align=right>of
            shares</p></td>
        <td width=95 colspan=2 valign=bottom class="Normal"> <p align=right>Price</p></td>
        <td width=98 colspan=2 valign=bottom class="Normal"> <p align=right>of
            shares</p></td>
        <td width=95 colspan=2 valign=bottom class="Normal"> <p align=right>Price</p></td>
        <td width=101 colspan=2 valign=bottom class="Normal"> <p align=right>of
            shares</p></td>
        <td width=95 valign=bottom class="Normal"> <p align=right>Price</p></td>
      </tr>
      <tr>
        <td width=912 colspan=12 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=234 valign=bottom class="Normal"> <p>Opening
            balance</p></td>
        <td width=98 colspan=2 valign=bottom class="Normal"> <p align=right>  4,145,000</p></td>
        <td width=95 colspan=2 valign=bottom class="Normal"> <p align=right>$
            0.50</p></td>
        <td width=98 colspan=2 valign=bottom class="Normal"> <p align=right>  657,000</p></td>
        <td width=95 colspan=2 valign=bottom class="Normal"> <p align=right>$
            1.56</p></td>
        <td width=101 colspan=2 valign=bottom class="Normal"> <p align=right>  2,242,500</p></td>
        <td width=95 valign=bottom class="Normal"> <p align=right>$
            2.31</p></td>
      </tr>
      <tr>
        <td width=234 valign=bottom class="Normal"> <p>Granted
            during the period</p></td>
        <td width=98 colspan=2 valign=bottom class="Normal"> <p align=right>  175,000</p></td>
        <td width=95 colspan=2 valign=bottom class="Normal"> <p align=right>  0.40</p></td>
        <td width=98 colspan=2 valign=bottom class="Normal"> <p align=right>  4,042,500</p></td>
        <td width=95 colspan=2 valign=bottom class="Normal"> <p align=right>  0.50</p></td>
        <td width=101 colspan=2 valign=bottom class="Normal"> <p align=right>  218,500</p></td>
        <td width=95 valign=bottom class="Normal"> <p align=right>  1.07</p></td>
      </tr>
      <tr>
        <td width=234 valign=bottom class="Normal"> <p>Expired/cancelled
            during period</p></td>
        <td width=98 colspan=2 valign=bottom class="Normal"> <p align=right>&nbsp;&nbsp;&nbsp;(30,000
            )</p></td>
        <td width=95 colspan=2 valign=bottom class="Normal"> <p align=right>  0.50</p></td>
        <td width=98 colspan=2 valign=bottom class="Normal"> <p align=right>  (554,500)</p></td>
        <td width=95 colspan=2 valign=bottom class="Normal"> <p align=right>  1.38</p></td>
        <td width=101 colspan=2 valign=bottom class="Normal"> <p align=right>  (1,804,000)</p></td>
        <td width=95 valign=bottom class="Normal"> <p align=right>  2.43</p></td>
      </tr>
      <tr>
        <td width=912 colspan=12 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=234 valign=bottom class="Normal"> <p>Closing
            balance</p></td>
        <td width=98 colspan=2 valign=bottom class="Normal"> <p align=right>  4,290,000</p></td>
        <td width=95 colspan=2 valign=bottom class="Normal"> <p align=right>$
            0.50</p></td>
        <td width=98 colspan=2 valign=bottom class="Normal"> <p align=right>  4,145,000</p></td>
        <td width=95 colspan=2 valign=bottom class="Normal"> <p align=right>$
            0.50</p></td>
        <td width=101 colspan=2 valign=bottom class="Normal"> <p align=right>  657,000</p></td>
        <td width=95 valign=bottom class="Normal"> <p align=right>$
            1.56</p></td>
      </tr>
      <tr>
        <td width=234 valign=bottom class="Normal"> <p>Contractual
            remaining life in years</p></td>
        <td width=98 colspan=2 valign=bottom class="Normal">&nbsp; </td>
        <td width=95 colspan=2 valign=bottom class="Normal"> <p align=right>  1.71</p></td>
        <td width=98 colspan=2 valign=bottom class="Normal">&nbsp; </td>
        <td width=95 colspan=2 valign=bottom class="Normal"> <p align=right>  1.96</p></td>
        <td width=101 colspan=2 valign=bottom class="Normal">&nbsp; </td>
        <td width=95 valign=bottom class="Normal"> <p align=right>  1.21</p></td>
      </tr>
      <tr>
        <td width=920 colspan=12 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=234 valign=bottom class="Normal"> <p>Range
            of exercise prices</p></td>
        <td width=98 colspan=2 valign=bottom class="Normal"> <p align=right><b>  $0.40-$0.50</b></p></td>
        <td width=95 colspan=2 valign=bottom class="Normal">&nbsp; </td>
        <td width=98 colspan=2 valign=bottom class="Normal"> <p align=right><b>  $0.50</b></p></td>
        <td width=95 colspan=2 valign=bottom class="Normal">&nbsp; </td>
        <td width=101 colspan=2 valign=bottom class="Normal"> <p align=right><b>  $1.65-$3.64</b></p></td>
        <td width=95 valign=bottom class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=912 colspan=12 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr height=0>
        <td width=351 class="Normal"></td>
        <td width=131 class="Normal"></td>
        <td width=16 class="Normal"></td>
        <td width=133 class="Normal"></td>
        <td width=10 class="Normal"></td>
        <td width=138 class="Normal"></td>
        <td width=9 class="Normal"></td>
        <td width=140 class="Normal"></td>
        <td width=3 class="Normal"></td>
        <td width=145 class="Normal"></td>
        <td width=6 class="Normal"></td>
        <td width=143 class="Normal"></td>
      </tr>
    </table>
  </div>
  <p><b><i>(e)                     Share
    purchase warrants</i></b></p>
  <p>The continuity of share purchase
    warrants is as follows:</p>
  <div align=center>
    <table border=0 cellspacing=0 cellpadding=0>
      <tr>
        <td width=272 colspan=2 valign=bottom class="Normal">&nbsp; </td>
        <td width=109 colspan=2 valign=bottom class="Normal">&nbsp; </td>
        <td width=108 colspan=2 valign=bottom class="Normal">&nbsp; </td>
        <td width=110 colspan=2 valign=bottom class="Normal">&nbsp; </td>
        <td width=108 colspan=2 valign=bottom class="Normal">&nbsp; </td>
        <td width=110 valign=bottom class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=817 colspan=11 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=267 valign=bottom class="Normal"> <p align=center>Expiry
            dates</p></td>
        <td width=109 colspan=2 valign=bottom class="Normal"> <p align=center>Exercise
            price</p></td>
        <td width=111 colspan=2 valign=bottom class="Normal"> <p align=center>Outstanding
            September 30, 2002</p></td>
        <td width=110 colspan=2 valign=bottom class="Normal"> <p align=center>Issued</p></td>
        <td width=109 colspan=2 valign=bottom class="Normal"> <p align=center>Expired</p></td>
        <td width=111 colspan=2 valign=bottom class="Normal"> <p align=center>Outstanding
            December 31, 2002</p></td>
      </tr>
      <tr>
        <td width=817 colspan=11 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=267 valign=bottom class="Normal"> <p>October
            19, 2003</p></td>
        <td width=109 colspan=2 valign=bottom class="Normal"> <p align=right>$0.58</p></td>
        <td width=111 colspan=2 valign=bottom class="Normal"> <p align=right>  276,596</p></td>
        <td width=110 colspan=2 valign=bottom class="Normal"> <p align=right>  --</p></td>
        <td width=109 colspan=2 valign=bottom class="Normal"> <p align=right>--</p></td>
        <td width=111 colspan=2 valign=bottom class="Normal"> <p align=right>276,596</p></td>
      </tr>
      <tr>
        <td width=267 valign=bottom class="Normal"> <p>December
            27, 2003</p></td>
        <td width=109 colspan=2 valign=bottom class="Normal"> <p align=right>$0.55</p></td>
        <td width=111 colspan=2 valign=bottom class="Normal"> <p align=right>  414,850</p></td>
        <td width=110 colspan=2 valign=bottom class="Normal"> <p align=right>  --</p></td>
        <td width=109 colspan=2 valign=bottom class="Normal"> <p align=right>--</p></td>
        <td width=111 colspan=2 valign=bottom class="Normal"> <p align=right>414,850<sup>(<i>i</i>)</sup></p></td>
      </tr>
      <tr>
        <td width=267 valign=bottom class="Normal"> <p>January
            8, 2006</p></td>
        <td width=109 colspan=2 valign=bottom class="Normal"> <p align=right>$0.40</p></td>
        <td width=111 colspan=2 valign=bottom class="Normal"> <p align=right>  375,000</p></td>
        <td width=110 colspan=2 valign=bottom class="Normal"> <p align=right>  --</p></td>
        <td width=109 colspan=2 valign=bottom class="Normal"> <p align=right>--</p></td>
        <td width=111 colspan=2 valign=bottom class="Normal"> <p align=right>375,000</p></td>
      </tr>
      <tr>
        <td width=267 valign=bottom class="Normal"> <p>December
            31, 2003</p></td>
        <td width=109 colspan=2 valign=bottom class="Normal"> <p align=right>$0.40</p></td>
        <td width=111 colspan=2 valign=bottom class="Normal"> <p align=right>  --</p></td>
        <td width=110 colspan=2 valign=bottom class="Normal"> <p align=right>
            302,250</p></td>
        <td width=109 colspan=2 valign=bottom class="Normal"> <p align=right>--</p></td>
        <td width=111 colspan=2 valign=bottom class="Normal"> <p align=right>302,250</p></td>
      </tr>
      <tr>
        <td width=267 valign=bottom class="Normal"> <p>December
            31, 2004</p></td>
        <td width=109 colspan=2 valign=bottom class="Normal"> <p align=right>$0.50</p></td>
        <td width=111 colspan=2 valign=bottom class="Normal"> <p align=right>  --</p></td>
        <td width=110 colspan=2 valign=bottom class="Normal"> <p align=right>
            7,393,751</p></td>
        <td width=109 colspan=2 valign=bottom class="Normal"> <p align=right>--</p></td>
        <td width=111 colspan=2 valign=bottom class="Normal"> <p align=right>  7,393,751<sup>(<i>ii</i>)</sup></p></td>
      </tr>
      <tr>
        <td width=817 colspan=11 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=377 colspan=3 valign=bottom class="Normal">&nbsp; </td>
        <td width=111 colspan=2 valign=bottom class="Normal"> <p align=right><b>  1,066,446</b></p></td>
        <td width=110 colspan=2 valign=bottom class="Normal"> <p align=right><b>  7,696,001</b></p></td>
        <td width=109 colspan=2 valign=bottom class="Normal"> <p align=right><b>--</b></p></td>
        <td width=111 colspan=2 valign=bottom class="Normal"> <p align=right><b>8,762,447</b></p></td>
      </tr>
      <tr>
        <td width=817 colspan=11 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr height=0>
        <td width=267 class="Normal"></td>
        <td width=4 class="Normal"></td>
        <td width=105 class="Normal"></td>
        <td width=5 class="Normal"></td>
        <td width=106 class="Normal"></td>
        <td width=1 class="Normal"></td>
        <td width=108 class="Normal"></td>
        <td width=2 class="Normal"></td>
        <td width=107 class="Normal"></td>
        <td width=1 class="Normal"></td>
        <td width=110 class="Normal"></td>
      </tr>
    </table>
  </div>
  <p><sup>(<i>i</i>)
    </sup>The 414,850 warrants expiring December 23, 2003 are subject to a 45-day
    accelerated expiry if the closing price of                  the Company&#039;s
    common shares, as traded on the TSX Venture Exchange, is at least $0.83 for
    ten consecutive trading    days.</p>
  <p><sup>(<i>ii</i>)
    </sup>The 7,393,751 warrants expiring December 31, 2004 are subject to a 45-day
    accelerated expiry if the closing price of the Company&#039;s common
    shares, as traded on the TSX Venture Exchange, is at least $0.75 for ten consecutive
    trading days.</p>
  <div align=center>
    <table border=0 cellspacing=0 cellpadding=0>
      <tr>
        <td width=240 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
        <td width=96 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=797 colspan=6 valign=bottom class="Normal"> <p align=right>  <HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=240 valign=bottom class="Normal"> <p>Expiry
            dates</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>Exercise
            price</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>Outstanding
            September 30, 2001</p></td>
        <td width=96 valign=bottom class="Normal"> <p align=center>Issued</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>Expired</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>Outstanding
            September 30, 2002</p></td>
      </tr>
      <tr>
        <td width=797 colspan=6 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=240 valign=bottom class="Normal"> <p>March
            3, 2002</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>$1.30</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  138,089</p></td>
        <td width=96 valign=bottom class="Normal"> <p align=right>  --</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>(138,089)</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  --</p></td>
      </tr>
      <tr>
        <td width=240 valign=bottom class="Normal"> <p>March
            3, 2002</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>$2.35</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  407,877</p></td>
        <td width=96 valign=bottom class="Normal"> <p align=right>  --</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>(407,877)</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  --</p></td>
      </tr>
      <tr>
        <td width=240 valign=bottom class="Normal"> <p>December
            31, 2000/01</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>$1.38</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  1,245,000</p></td>
        <td width=96 valign=bottom class="Normal"> <p align=right>  --</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>(1,245,000)</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  --</p></td>
      </tr>
      <tr>
        <td width=240 valign=bottom class="Normal"> <p>October
            19, 2003</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>$0.58</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  --</p></td>
        <td width=96 valign=bottom class="Normal"> <p align=right>  276,596</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>--</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  276,596</p></td>
      </tr>
      <tr>
        <td width=240 valign=bottom class="Normal"> <p>December
            27, 2003</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>$0.55</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  --</p></td>
        <td width=96 valign=bottom class="Normal"> <p align=right>
            414,850</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>--</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>414,850</p></td>
      </tr>
      <tr>
        <td width=240 valign=bottom class="Normal"> <p>January
            8, 2006</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>$0.40</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  --</p></td>
        <td width=96 valign=bottom class="Normal"> <p align=right>
            375,000</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>--</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  375,000</p></td>
      </tr>
      <tr>
        <td width=797 colspan=6 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=355 colspan=2 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>  1,790,966</b></p></td>
        <td width=96 valign=bottom class="Normal"> <p align=right><b>  1,066,446</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>(1,790,966)</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>  1,066,446</b></p></td>
      </tr>
      <tr>
        <td width=797 colspan=6 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
    </table>
  </div>
  <p><HR SIZE=3></p>
  <p><b>8.                         Income taxes </b></p>
  <p>Substantially all of the difference between the
    actual income tax expense (recovery) of $nil (2001 - $nil) and the expected
    statutory corporate income tax recovery relates to losses not recognized.
    As at September 30, 2002 and 2001, the tax effect of the significant components
    within the Company&#039;s future tax assets were as follows:</p>
  <div align=center>
    <table border=0 cellspacing=0 cellpadding=0>
      <tr>
        <td width=518 colspan=3 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal"> <p align=center>2002</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>2001</p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Resource
            pools</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$
            1,555,000</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$
            7,041,000</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Loss
            carry forwards</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  3,211,000</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  4,452,000</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Other
            tax pools</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  1,556,000</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  864,000</p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal"> <p align=right>6,322,000</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  13,357,000</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Valuation
            allowance</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  &nbsp;&nbsp;(6,322,000
            )</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  (13,357,000
            )</p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Net
            future income tax asset (liability)</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$ -</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
            -</b></p></td>
      </tr>
      <tr>
        <td width=518 colspan=3 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
    </table>
  </div>
  <p>At September 30, 2002, the
    Company&#039;s tax attributes include non-capital losses for income
    tax purposes in Canada totaling approximately $7.5 million, expiring at various
    times from 2003 to 2009, and certain resource related and other tax pools.
    The Gibraltar tracking preferred shares issued to Continental have initially
    been recorded for Canadian tax purposes at a paid up amount of $62.77 million,
    but such amount is subject to adjustment based on the fair value of Taseko
    common shares ultimately received by Continental (note 3).   </p>
  <p><HR SIZE=3></p>
  <p><b>9.                         Supplementary
    cash flow disclosures</b></p>
  <p>In addition to the non-cash
    operating, financing and investing activities primarily disclosed, the Company&#039;s
    non-cash operating, financing and investing activities were as follows:</p>
  <div align=center>
    <table border=0 cellspacing=0 cellpadding=0>
      <tr>
        <td width=634 colspan=4 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal"> <p align=center>December
            31,</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>September
            30,</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>September
            30,</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal"> <p align=center>2002</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>2002</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>2001</p></td>
      </tr>
      <tr>
        <td width=634 colspan=4 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Issuance
            of tracking preferred shares of Gibraltar
            Mines Ltd. on acquisition of Harmony Gold Property
            (note 3)</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  $
              --</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  $
            26,764,784</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  $
              --</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Issuance
            of common shares on acquisition of
            Gibraltar Refinery (2002) Ltd. (note 5(e))</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>
            --</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>
            2,163,330</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>
            --</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Issuance
            of common shares on redemption of
            Gibraltar tracking preferred shares held by a
            dissenting Continental shareholder (note 3)</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>
            --</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>
            122,836</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>
            --</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Issuance
            of common shares for loan guarantee (note 6)</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  --</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  400,000</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  --</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Issuance
            of common shares settlement of debt
            (note 7(c))</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  --</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  840,000</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  --</p></td>
      </tr>
      <tr>
        <td width=634 colspan=4 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
              --</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>  $
            30,290,950</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>  $
              --</b></p></td>
      </tr>
      <tr>
        <td width=634 colspan=4 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
    </table>
  </div>
  <div align=center>
    <table border=0 cellspacing=0 cellpadding=0>
      <tr>
        <td width=634 colspan=4 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal"> <p align=center>December
            31,</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>September
            30,</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>September
            30,</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal"> <p align=center>2002</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>2002</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>2001</p></td>
      </tr>
      <tr>
        <td width=634 colspan=4 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p><b>Supplemental
            cash flow information</b></p></td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Cash
            paid during the period for</p></td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Interest
          </p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$
            23,187</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$
            107,790</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$
              --</p></td>
      </tr>
      <tr>
        <td width=288 valign=bottom class="Normal"> <p>Taxes
          </p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
              --</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
            117,333</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
            150,888</b></p></td>
      </tr>
      <tr>
        <td width=634 colspan=4 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
    </table>
  </div>
  <p><b><HR SIZE=3></b></p>
  <p><b>10.                   Related party
    transactions and advances</b></p>
  <div align=center>
    <table border=0 cellspacing=0 cellpadding=0>
      <tr>
        <td width=634 colspan=3 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=403 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal"> <p align=center>December
            31,</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>September
            30,</p></td>
      </tr>
      <tr>
        <td width=403 valign=bottom class="Normal"> <p><b>Transactions</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>2002</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=center>2002</p></td>
      </tr>
      <tr>
        <td width=634 colspan=3 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=403 valign=bottom class="Normal"> <p>Hunter
            Dickinson Inc.</p></td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=403 valign=bottom class="Normal"> <p>Services
            rendered to the Company and its subsidiaries and reimbursement of
            third party expenses (a)</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  $
            124,208</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>  $
            574,892</p></td>
      </tr>
      <tr>
        <td width=403 valign=bottom class="Normal"> <p>Services
            rendered to GESL Partnership (b)</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
              --</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
            1,384,496</b></p></td>
      </tr>
      <tr>
        <td width=634 colspan=3 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
    </table>
  </div>
  <div align=center>
    <table border=0 cellspacing=0 cellpadding=0>
      <tr>
        <td width=634 colspan=3 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
      <tr>
        <td width=403 valign=bottom class="Normal"> <p><b>Advances</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>December
            31, 2001 </p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>September
            30, 2002 </p></td>
      </tr>
      <tr>
        <td width=634 colspan=3 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=403 valign=bottom class="Normal"> <p>Advances
            to (from) (d)</p></td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
        <td width=115 valign=bottom class="Normal">&nbsp; </td>
      </tr>
      <tr>
        <td width=403 valign=bottom class="Normal"> <p>Hunter
            Dickinson Inc. (a)</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$
            2,513,102</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$
            (468,168)</p></td>
      </tr>
      <tr>
        <td width=403 valign=bottom class="Normal"> <p>Hunter
            Dickinson Group Inc. (c)</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$
            (3,001,000)</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right>$
            (3,001,000)</p></td>
      </tr>
      <tr>
        <td width=634 colspan=3 valign=bottom class="Normal"> <p align=right><HR SIZE=1></p></td>
      </tr>
      <tr>
        <td width=403 valign=bottom class="Normal"> <p>Advances
            to (from) related parties</p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
            (487,898)</b></p></td>
        <td width=115 valign=bottom class="Normal"> <p align=right><b>$
            (3,469,168)</b></p></td>
      </tr>
      <tr>
        <td width=634 colspan=3 valign=bottom class="Normal"> <p align=right><HR SIZE=3></p></td>
      </tr>
    </table>
  </div>
  <p>(a)                     Hunter Dickinson
    Inc. (&quot;HDI&quot;) is a private company with certain directors
    in common that provides geological, corporate development, administrative
    and management services to, and incurs third party costs on behalf of, the
    Company and its subsidiaries on a full cost recovery basis pursuant to an
    agreement dated December 31, 1996.</p>
  <p>(b)                     During fiscal
    2001 and 2002, Hunter Dickinson Inc. provided engineering and other services
    to the GESL Partnership at industry standard rates (note 5(a)).</p>
  <p>(c)                     Hunter Dickinson
    Group Inc. (&quot;HDG&quot;) is a private company with certain
    directors in common that provides consulting services to the Company, at market
    rates. The balance payable to HDG has resulted from a series of agreements
    between Taseko, HDI, HDG, GESL Partnership and GRP Partnership, whereby HDI
    assigned to HDG the balance payable owed to it by Taseko. </p>
  <p>(d)                     Advances are
    non-interest bearing and due on demand.   </p>
  <p>(e)                     Bank operating
    loan (see note 6).</p>
</div>
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