<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>ascii_tko6kq220030331.txt
<DESCRIPTION>TASEKO MINES LIMITED FINANCIAL STATEMENTS
<TEXT>
                                    FORM 6-K


                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                        REPORT OF FOREIGN PRIVATE ISSUER


                        Pursuant to Rule 13a-16 or 15d-16
                     of the Securities Exchange Act of 1934


                              As at March 31, 2003

                              CIK Number 0000878518


                              TASEKO MINES LIMITED
           ----------------------------------------------------------

            1020 - 800 West Pender Street, Vancouver, Canada V6C 2V6
           ----------------------------------------------------------
                    (Address of principal executive offices)


 Indicate by check mark whether the registrant files or will file
               annual reports under cover Form 20-F or Form 40-F.

                           Form 20-F [X] Form 40-F [ ]

       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): [ ]


  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.


  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): [ ]


 Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper
               of a Form 6-K if submitted to furnish a report or
  other document that the registrant foreign private issuer must furnish
               and make public under the laws of the jurisdiction
   in which the registrant is incorporated, domiciled or legally organized
                (the registrant's "home country"), or under the
 rules of the home country exchange on which the registrant's securities
              are traded, as long as the report or other document
  is not a press release, is not required to be and has not been distributed
                 to the registrant's security holders, and, if
   discussing a material event, has already been the subject of a
            Form 6-K submission or other Commission filing on EDGAR.


     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.

                                 Yes [ ] No [X]

 If "Yes" is marked, indicate below the file number assigned to the registrant
                 in connection with Rule 12g3-2(b): 82-________

                                   Signatures
    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.


                          ----------------------------
                                  (Registrant)

                              /s/ Jeffrey R. Mason
                          ----------------------------
                                Jeffrey R. Mason
                Director, Chief Financial Officer and Secretary

                               Date: May 30, 2003


     * Print the name and title of the signing officer under his signature.


<PAGE>

                              TASEKO MINES LIMITED
                                QUARTERLY REPORT
                                 MARCH 31, 2003
--------------------------------------------------------------------------------


                              MANAGEMENT DISCUSSION

Taseko Mines Limited  ("Taseko" or the "Company") is a mineral  exploration  and
mining company with three projects located in British  Columbia,  Canada.  These
are the Gibraltar copper mine, which is currently on stand-by,  and two advanced
exploration stage projects:  the Prosperity  gold-copper project and the Harmony
gold project.

The Gibraltar  mine is a 35,000 tonnes per day mine and mill facility  which has
had a successful 27-year operating history, and is currently being maintained on
care and maintenance  awaiting higher copper prices.  Approximately  760 million
tonnes of  measured  and  indicated  resources  are  currently  outlined  on the
property,  containing  4.7 billion  pounds of copper.  This  amount  includes an
estimated in-pit sulphide resource, based on a 15-year mine plan, of 189 million
tonnes  grading  0.31% copper and 0.01%  molybdenum  at a cut-off grade of 0.20%
copper.  There are also in-pit  oxide  resources  that would be processed in the
existing solvent extraction-electrowinning plant.

The  Company's  Prosperity  project is a large  gold-copper  deposit.  Estimated
measured  and  indicated  resources  within an open pit designed for a potential
70,000 tonnes per day operation are 491 million  tonnes grading 0.22% copper and
0.43  grams of gold per  tonne at a  $3.25/tonne  net  smelter  return  cut-off,
containing  2.3  billion  pounds of copper and 6.7 million  ounces of gold.  The
Harmony property is located on British  Columbia's west coast.  Harmony hosts an
estimated  measured and  indicated  resource of 64 million  tonnes  grading 1.53
grams of gold per  tonne at a  cut-off  grade of 0.60  grams of gold per  tonne,
containing 3 million ounces of gold.

Gibraltar and the Cariboo Regional District ("CRD"),  where the mine is located,
have agreed to develop a landfill on the Gibraltar mine  property.  Construction
of the landfill is planned to begin in June 2003, and operations  could commence
in October 2003.  Gibraltar will be the exclusive  long-term  partner of the CRD
over the  80-year  designed  life of the  landfill  and has been  contracted  to
construct,  operate and maintain the landfill site on a fee basis.  The landfill
project will offset the cost of reclamation activities at the mine site.

During  fiscal  2003,  the  Company  has  continued  to focus its  resources  on
Gibraltar.  Activities are directed toward care and maintenance of the Gibraltar
mine site,  including  monitoring and maintenance of the tailings pond and plant
facilities,  ongoing water management,  environmental  work, and administration.
The Company's  technical team also continues to evaluate  exploration targets of
interest upon which drilling and other programs would be completed utilizing the
proceeds of the December 2002 flow-through financing.

MARKET TRENDS

Copper prices fluctuated over the year in 2002, averaging US$0.71 per pound, but
began to  improve  at  year-end.  Prices  are  projected  to  increase  to about
US$0.90/lb by 2004.

The gold price increased significantly in 2002, averaging about US$309/oz.  Gold
prices,  although volatile,  have continued to improve in 2003,  averaging about
US$346/oz in the year to date.

FINANCIAL POSITION

As a  consequence  of the  acquisition  of the  Gibraltar  Mine in 1999,  Taseko
received  funding  pursuant to a  $17 million  non-interest-bearing  convertible
debenture financing by Boliden Westmin (Canada) Ltd. As Taseko has the right and
the  intention  to convert the  debenture  into common  shares,  the $17 million
Gibraltar  debenture is  classified  as equity rather than as a liability on the
Company's balance sheet.

Reclamation deposits totalling $16.3 million, including interest, are to be used
at a later date for reclamation  purposes at Gibraltar and Harmony.  As a result
of  progressive  reclamation  work and the landfill  project at Gibraltar,  $2.5
million was released from the cash reclamation fund in December 2002.

The  reclamation  liability  is $32.7  million  and is  secured  by  reclamation
deposits and plant and equipment.  The $26.6 million liability shown as tracking
preferred shares of subsidiary,  Gibraltar,  is the net book value of 12,483,916
shares issued as part of the cost to acquire the Harmony gold project from Misty
Mountain Gold Limited.  The tracking  preferred shares are designed to track and
capture the value of the Harmony  gold  property  and will be  convertible  into
common shares of the Company upon a realization  event such as a sale to a third
party or commercial  production at the Harmony gold property.  As Taseko has the
right and the intention to settle these  preferred  shares with common shares of
the  Company,  they have been  included in  shareholders'  equity on the balance
sheet.

In December  2002,  Taseko closed equity  private  placements of its  securities
totalling $4.24 million.  The placements  include $655,500 of common shares at a
subscription price of $0.30 per common share,  $1,269,600 of units at a price of
$0.30 per unit, and $2,315,000 of flow-through  units at a subscription price of
$0.40 per  flow-through  unit.  Each unit  consisted of one common share and one
non-transferable common share purchase warrant. Each flow-through 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 until  December 31, 2004.  The
common share purchase  warrants are subject to an accelerated  expiry  provision
under certain conditions.

Dundee Securities  Corporation,  Strand Securities Corporation and certain other
agents   collectively   acted  as  the  agents  for  the  private  placement  of
flow-through units. The agents' compensation  included a cash fee equal to 6% of
the gross proceeds and broker warrants, entitling them to purchase common shares
equal to 6% of the number of  flow-through  units sold. The broker  warrants are
exercisable at $0.40 per common share and expire on December 31, 2003.  Finders'
fees were paid on other  portions of the  financing  in cash and common  shares.
There were no fees on the $655,500 subscription by Hunter Dickinson Inc.

The net proceeds of the units and common shares will be used for general working
capital  purposes.  Taseko will utilize the gross  proceeds of the  flow-through
financing to undertake a program to follow up on deposit-scale  targets outlined
by  geophysical  surveys  completed on the  Gibraltar  property in 2000,  and to
evaluate and test other potential  exploration projects that may be of interest.
Drilling at Gibraltar would be completed in stages that are success contingent.

At March 31, 2003,  Taseko had working capital of $1.02 million,  as compared to
$1.8 million at the end of the previous quarter. The Company also had 46,434,164
common shares issued and outstanding.

Subsequent to the end of the quarter,  in April 2003,  the Company  acquired the
remaining  business  of the GESL  Partnership  under a plan of  arrangement.  In
fiscal  2002,  the Company had  acquired a 38% initial  position in these assets
comprising  primarily of  technological  and operating  rights.  The fiscal 2003
transaction resulted in a reduction of certain Taseko liabilities by $3 million.
Further, the acquisition consolidated the Company's 100% ownership of the copper
refinery  engineering  business  of the GESL  Partnership.  Upon  receiving  TSX
Venture  Exchange and judicial  approvals the Company  issued  7,446,809  common
shares having a deemed value of $0.47 per share, for total consideration of $3.5
million.

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  ensure  continuation  of  the
Company'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.  Failure to continue as a going concern
would  require  that the  Company's  assets and  liabilities  be  restated  on a
liquidation  basis,  which may differ materially from those expressed on a going
concern basis.

RESULTS OF OPERATIONS

Expenses in the second quarter of fiscal 2003 totaled $1.1 million,  an increase
from $0.70  million  spent in the prior  quarter,  but a decrease from the $1.25
million  spent in the last three  months of fiscal 2002.  The main  expenditures
during the quarter were $687,681 on exploration (an increase from $285,089 spent
in the previous quarter) and $176,617 on depreciation  ($178,377 in the previous
quarter).  A portion of the current year  exploration  cost is also related to a
mandatory  change in accounting for stock-based  compensation  (see notes to the
financial  statements).  Exploration  costs are mainly  attributable  to on-site
activities  at  Gibraltar.  Scrap sales and cost  recoveries  offset some of the
costs of site  activities  during the first quarter and this,  combined with the
completion  of  a  freshwater  conversion  project,  led  to  lower  exploration
expenditures in the prior period.

Most costs have  decreased when compared to the first six months of fiscal 2002;
administrative costs have decreased from the prior fiscal year when the refinery
project  was  underway  and more  support  activities  were  required.  The most
significant  decreases are  consulting,  interest and finance  charges and legal
accounting  and audit.  Higher  costs in fiscal  2002 were  attributable  to the
activities associated with financing the refinery studies. Exploration, property
investigation and shareholder communications costs, however, have increased over
the previous year. Property  investigation costs are associated with evaluations
of new projects.  Expenditures  on shareholder  communications  increased due to
increased  salaries and participation in investor  conferences in fiscal 2003. A
recovery of $229,999 for the  Westgarde  property  was received  during the same
period in 2002 and  accounts for the lower  exploration  expense in the previous
year. Of the  exploration  expenditures  in the year to date,  $910,096 has been
spent on Gibraltar  (mostly on site  maintenance,  a decrease from $1,026,957 in
2002),  $46,146  has been  spent on  Prosperity  mainly  for mine  planning  (an
increase  from  $12,095  in 2002) and  $16,528  has been  spent on  Harmony  for
environmental monitoring and mine planning (an increase from $nil in 2002).

RELATED PARTY TRANSACTIONS

Hunter  Dickinson  Inc.  ("HDI") of Vancouver,  British  Columbia,  is a private
company  with  certain  directors in common that  provides  investor  relations,
geological,  corporate  development,  administrative and management services to,
and incurs  third party  costs on behalf of, the Company  pursuant to a December
1996 agreement. In the quarter ended March 31, 2002, Taseko and its subsidiaries
paid  $113,087  to HDI for  services  rendered  as  compared  to $124,208 in the
previous quarter.

LIMITED PARTNERSHIP FINANCING STRUCTURES

In order to facilitate  financing for refinery feasibility and other exploration
work at Gibraltar,  Taseko sponsored the formation of two limited  partnerships,
in which the Company was the initial sole limited partner, as financing vehicles
separate  from  their  independent  corporate  general  partner.  The  Gibraltar
Engineering  Services Limited  Partnership  ("GESL  Partnership")  was formed to
conduct  engineering and contract  operation service support for a determination
of the feasibility of the hydrometallurgical copper refinery process,  developed
by Cominco  Engineering  Services  Limited  ("CESL") to be  potentially  used at
Gibraltar and possibly, other similar copper deposits in British Columbia, owned
by third parties, but which also produce copper in concentrate.

Taseko  also  retains  Procorp  Services  Limited  Partnership   ("Procorp")  of
Vancouver,  British  Columbia 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 and specialized independent contractors,  as well as members who are
also directors and officers of the Company.  Compensation to Procorp  included a
US$900,000 initial payment in 2001 for services rendered in 2001 and 2002, and a
second  payment  of  US$900,000  to be paid upon  successful  recommencement  of
commercial  production of the Gibraltar  mine. In addition,  the Company agreed,
subject to  regulatory  approval,  to issue  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. As part of its services,  Procorp structured an agreement in principle for
the Company with two limited  partnerships,  including the GESL Partnership,  to
advance the  hydrometallurgical  process  developed  by CESL and its  commercial
application.

Partnership business expenses are shown in the Consolidated Schedule of Refinery
Project  Expenses.  This amount  represents  work  carried out by  personnel  at
Taseko,  Gibraltar,  HDI  and  third  party  contractors  retained  by the  GESL
Partnership and billed by those parties to the GESL Partnership. As at September
30, 2002, the Company had incurred accumulated  expenditures of $5.3 million for
the Refinery Project.  In December 2002, the parties were successful in securing
the required additional third party partnership funding.

On April 4, 2003,  the  Company  acquired  the  remaining  business  of the GESL
Partnership under a plan of arrangement.  In fiscal 2002, the Company acquired a
38% initial position in these assets comprising  primarily of technology rights.
The  fiscal  2003  transaction   resulted  in  a  reduction  of  certain  Taseko
liabilities by $3 million.  Further, the acquisition  consolidated the Company's
100%  ownership  of  the  copper  refinery  engineering  business  of  the  GESL
Partnership.  Upon  receiving  TSX Venture  Exchange and judicial  approvals the
Company issued 7,446,809 common shares having a deemed value of $0.47 per share,
for total consideration of $3.5 million.


<PAGE>

                              TASEKO MINES LIMITED
                        CONSOLIDATED FINANCIAL STATEMENTS

                         SIX MONTHS ENDED MARCH 31, 2003

                         (Expressed in Canadian Dollars)
                                   (Unaudited)


<PAGE>


TASEKO MINES LIMITED
Consolidated Balance Sheets
(Expressed in Canadian Dollars)
(Unaudited)

<TABLE>
<CAPTION>

                                                                                             March 31,                September 30,
                                                                                                  2003                         2002
                                                                                         -------------               --------------
Assets

Current assets
<S>                                                                                      <C>                          <C>
Cash and equivalents .....................................................               $   2,028,234                $      39,104
Amounts receivable .......................................................                     242,175                      336,247
Supplies inventory .......................................................                   2,293,580                    2,282,954
Prepaid expenses .........................................................                      26,825                      103,631
                                                                                         -------------                -------------
                                                                                             4,590,814                    2,761,936

Property, plant and equipment (note 4) ...................................                   9,775,169                   10,158,525
Reclamation deposits (notes 3 and 7(c)(ii)) ..............................                  16,294,315                   18,576,524
Mineral property interests (note 5) ......................................                  28,813,296                   28,813,296
                                                                                         -------------                -------------
                                                                                         $  59,473,594                $  60,310,281
                                                                                         =============                =============

Liabilities and Shareholders' Equity

Current liabilities
Bank operating loan (note 6) .............................................               $   1,989,949                $   2,000,000
Accounts payable and accrued liabilities .................................                   1,581,659                    1,569,288
Advances from related parties (note 10) ..................................                         267                    3,469,168
                                                                                         -------------                -------------
                                                                                             3,571,875                    7,038,456
Reclamation liability (note 4) ...........................................                  32,700,000                   32,700,000
                                                                                         -------------                -------------
                                                                                            36,271,875                   39,738,456
                                                                                         -------------                -------------

Shareholders' equity
Share capital (note 7) ...................................................                  95,943,058                   91,889,200
Convertible debenture (note 7(c)) ........................................                  17,000,000                   17,000,000
Tracking preferred shares (note 3) .......................................                  26,641,948                   26,641,948
Contributed surplus (note 7(f)) ..........................................                      14,802                          -
Deficit ..................................................................                (116,398,089)                (114,959,323)
                                                                                         -------------                -------------
                                                                                            23,201,719                   20,571,825
Continuing operations (note 1)
Commitments (note 5 and 7(b)(iii))
Subsequent event (note 11)
                                                                                         -------------                -------------
                                                                                         $  59,473,594                $  60,310,281
                                                                                         =============                =============

</TABLE>

See accompanying notes to consolidated financial statements.

Approved by the Board of Directors

/s/ Ronald W. Thiessen                                      /s/ Jeffrey R. Mason

Ronald W. Thiessen                                              Jeffrey R. Mason
Director                                                        Director



<PAGE>



TASEKO MINES LIMITED
Consolidated Statements of Operations
(Expressed in Canadian Dollars)
(Unaudited)

<TABLE>
<CAPTION>


                                                                         Three months ended               Six months ended March 31
                                                                  -----------------------------       ------------------------------
                                                                         2003              2002              2003              2002
                                                                  -----------        ----------       -----------        ----------
Expenses
<S>                                                              <C>               <C>               <C>               <C>
Conference and travel ......................................     $      6,962      $      4,028      $     26,457      $     10,184
Consulting .................................................           58,011           123,716           107,677           204,966
Corporation taxes ..........................................           11,594            87,063            19,738            87,063
Depreciation ...............................................          176,617           178,266           354,994           356,532
Exploration (schedule) .....................................          687,681           552,958           972,770           809,053
Interest and finance charges ...............................           28,590            33,384            51,777           451,738
Legal, accounting and audit ................................           18,272            49,463            74,870           191,182
Office and administration ..................................           63,676            79,388           115,446           130,309
Property investigation .....................................           10,734               -              10,734               -
Refinery project (schedule) ................................              -             523,554               -           1,795,264
Shareholder communication ..................................           39,104             9,178            62,631            42,407
Trust and filing ...........................................           10,698            19,284            11,442            24,341
                                                                   ----------        ----------        ----------        ----------
                                                                    1,111,939         1,660,282         1,808,536         4,103,039
                                                                   ----------        ----------        ----------        ----------
Other items
   Interest and other ......................................          (64,623)         (179,249)          238,132           224,021
   Gain on sale of property, plant and equipment ...........          131,638               -             131,638               -
   Write down of mineral property acquisition costs ........              -                 -                 -            (600,000)
                                                                   ----------        ----------        ----------        ----------
                                                                       67,015          (179,249)          369,770          (375,979)
                                                                   ----------        ----------        ----------        ----------
Loss for the period ........................................     $ (1,044,924)     $ (1,839,531)     $ (1,438,766)     $ (4,479,018)
                                                                   ==========        ==========        ==========        ==========
Basic and diluted loss per common share (note 2) ...........     $      (0.02)     $      (0.07)     $      (0.04)     $      (0.18)
                                                                   ==========        ==========        ==========        ==========
Weighted average number of
common shares outstanding ..................................       46,423,942        28,283,114        40,172,639        25,519,062
                                                                   ==========        ==========        ==========        ==========
</TABLE>




Consolidated Statements of Deficit
(Expressed in Canadian Dollars)
(Unaudited)


<TABLE>
<CAPTION>
                                                        Three months ended March 31                   Six months ended March 31
                                                    ----------------------------------          ------------------------------------
                                                             2003                  2002                  2003                  2002
                                                    -------------         -------------         -------------         -------------

<S>                                                 <C>                   <C>                   <C>                   <C>
Deficit, beginning of period ...............        $(115,353,165)        $(111,094,882)        $(114,959,323)        $(108,455,395)
Loss for the period ........................           (1,044,924)           (1,839,531)           (1,438,766)           (4,479,018)
                                                    -------------         -------------         -------------         -------------
Deficit, end of period .....................        $(116,398,089)        $(112,934,413)        $(116,398,089)        $(112,934,413)
                                                    =============         =============         =============         =============

</TABLE>


See accompanying notes to consolidated financial statements.



<PAGE>



TASEKO MINES LIMITED
Consolidated Statements of Cash Flows
(Expressed in Canadian Dollars)
(Unaudited)

<TABLE>
<CAPTION>

                                                                     Three months ended March 31,        Six months ended March 31,
                                                                     ---------------------------       ----------------------------
Cash provided by (used for): ...................................            2003             2002             2003             2002
                                                                     -----------      -----------      -----------      -----------

Operating activities
<S>                                                                  <C>              <C>              <C>              <C>
Loss for the period ............................................     $(1,044,924)     $(1,839,531)     $(1,438,766)     $(4,479,018)
Items not involving cash
       Accrued interest on reclamation deposits ................          81,093          179,910         (217,791)        (222,600)
   Depreciation ................................................         176,617          178,266          354,994          356,532
   Stock-based compensation ....................................          14,802              -             14,802              -
   Write down of mineral property acquisition costs ............             -                -                -            600,000
   Gain on sale of property, plant and equipment ...............        (131,638)             -           (131,638)             -
   Acquisition premium paid for Gibraltar
        Refinery (2002) Ltd. ...................................             -            314,330              -            314,330
   Shares issued for loan guarantee ............................             -                -                -            400,000
Changes in non-cash operating working capital
   Amounts receivable ..........................................         531,861         (131,578)          94,072           23,952
   Supplies inventory ..........................................          (9,152)          (1,557)         (10,626)           3,777
   Prepaid expenses ............................................          23,112          (17,000)          76,806          (11,268)
   Accounts payable and accrued liabilities ....................         (24,433)         688,814           12,371          802,137
                                                                     -----------      -----------      -----------      -----------
                                                                        (382,662)        (628,346)      (1,245,776)      (2,212,158)
                                                                     -----------      -----------      -----------      -----------

Investing activities
   Cash paid on acquisition of Harmony Gold Property ...........             -                -                -         (2,230,000)
   Proceeds on sale of mineral property interests ..............             -                -                -                  1
   Proceeds received on the sale of property, plant
        and equipment ..........................................         160,000              -            160,000              -
   Reclamation deposit .........................................             -                -          2,500,000              -
                                                                     -----------      -----------      -----------      -----------
                                                                         160,000              -          2,660,000       (2,229,999)
                                                                     -----------      -----------      -----------      -----------

Financing activities
   Bank operating loan .........................................          30,352              -            (10,051)       2,000,000
   Advances from related parties ...............................        (487,631)         343,634       (3,468,901)         238,244
   Advances from Gibraltar Engineering Services
        Limited Partnership ....................................             -                -                -          1,849,000
   Common shares issued for cash, net of issue costs ...........            (735)         172,000        4,053,858          302,000
                                                                     -----------      -----------      -----------      -----------
                                                                        (458,014)         515,634          574,906        4,389,244
                                                                     -----------      -----------      -----------      -----------

Increase (decrease) in cash and equivalents ....................        (680,676)        (112,712)       1,989,130          (52,913)
Cash and equivalents, beginning of period ......................       2,708,910          142,095           39,104           82,296
                                                                     -----------      -----------      -----------      -----------
Cash and equivalents, end of period ............................     $ 2,028,234      $    29,383      $ 2,028,234      $    29,383
                                                                     ===========      ===========      ===========      ===========
</TABLE>


Supplementary cash flow disclosures (note 9)

See accompanying notes to consolidated financial statements.



<PAGE>


TASEKO MINES LIMITED
Consolidated Schedules of Mineral Property Exploration Expenses
(Expressed in Canadian dollars)
(Unaudited)


<TABLE>
<CAPTION>

                                                                                           Property
                                                                        -------------------------------------------
Six months ended March 31, 2003 .....................................     Prosperity       Gibraltar        Harmony           Total
                                                                        ------------    ------------   ------------    ------------

Exploration expenses
<S>                                                                     <C>                    <C>     <C>             <C>
     Assays and analysis ............................................   $      9,223           $ -     $      2,270    $     11,493
     Equipment rentals ..............................................            (89)            -              -               (89)
     Geological .....................................................            162          25,482            486          26,130
     Mine planning ..................................................         36,685          89,083          7,816         133,584
     Site activities ................................................            165         795,531          5,956         801,652
                                                                        ------------    ------------   ------------    ------------
Exploration expenses during the period ..............................         46,146         910,096         16,528         972,770
Cumulative expenses, beginning of period ............................     41,487,910       8,988,583            -        50,476,493
                                                                        ------------    ------------   ------------    ------------
Cumulative expenses, end of period ..................................   $ 41,534,056    $  9,898,679   $     16,528    $ 51,449,263
                                                                        ============    ============   ============    ============


                                                                                            Property
                                                                        -------------------------------------------
Six months ended March 31, 2002 .....................................     Prosperity       Gibraltar      Westgarde           Total
                                                                        ------------    ------------   ------------    ------------
Exploration expenses
     Assays and analysis ............................................   $      6,110    $        367          $ -      $      6,477
     Equipment rentals ..............................................          3,993             -              -             3,993
     Geological .....................................................            -             1,382            -             1,382
     Mine planning ..................................................          1,313          25,888            -            27,201
     Site activities ................................................            679         999,320            -           999,999
     Recovery of exploration expenses incurred on sale (note 3) .....            -               -         (229,999)       (229,999)
                                                                        ------------    ------------   ------------    ------------
Exploration expenses (recovery) during the period ...................         12,095       1,026,957       (229,999)        809,053
Cumulative expenses, beginning of period ............................     41,523,768       6,650,841        210,976      48,385,585
                                                                        ------------    ------------   ------------    ------------
Cumulative expenses, end of period ..................................   $ 41,535,863    $  7,677,798   $    (19,023)   $ 49,194,638
                                                                        ============    ============   ============    ============


</TABLE>


Consolidated Schedule of Refinery Project Expenses
(Expressed in Canadian dollars)
(Unaudited - prepared by management)


<TABLE>
<CAPTION>

                                                                                                      Six months ended March 31,
                                                                                                  ----------------------------------
Refinery Project Expenses                                                                                2003                   2002
                                                                                                  -----------             ----------

<S>                                                                                                     <C>               <C>
Engineering ..........................................................................            $       -               $  405,910
Environmental and permitting .........................................................                    -                   57,998
Interest .............................................................................                    -                   73,289
Metallurgy ...........................................................................                    -                   10,883
Pilot plant testwork .................................................................                    -                  290,680
Support services .....................................................................                    -                  642,174
Acquisition premium paid for Gibraltar Refinery (2002) Ltd. ..........................                    -                  314,330
                                                                                                   ----------             ----------
Expenses during the period ...........................................................                    -                1,795,264
Cumulative expenses, beginning of period .............................................              5,270,768              3,571,942
                                                                                                   ----------             ----------

Cumulative expenses, end of period ...................................................             $5,270,768             $5,367,206
                                                                                                   ==========             ==========
</TABLE>



<PAGE>



TASEKO MINES LIMITED
Notes to Consolidated Financial Statements
For the period ended March 31, 2003
(Expressed in Canadian Dollars)
(Unaudited)
--------------------------------------------------------------------------------


1.   CONTINUING OPERATIONS

     Taseko Mines Limited ("Taseko" or the "Company") 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'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.

     The  Company'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.

     These financial  statements are prepared on the basis that the Company will
     continue as a going concern. As at March 31, 2003, 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'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.


2.   SIGNIFICANT ACCOUNTING POLICIES

(a)  Basis of presentation and principles of consolidation

     These  financial  statements have been prepared in accordance with Canadian
     generally accepted accounting principles ("GAAP").

     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 ("GESL Partnership")
     (note 5(a) and 11). All  material  intercompany  accounts and  transactions
     have been eliminated.

(b)  Cash and equivalents

     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.

(c)  Supplies inventory

     Supplies  inventory is reported at the lower of moving average cost and net
     realizable value.

(d)  Property, plant and equipment

     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.

(e)  Mineral property interests

     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.

     All costs incurred by the Company  during the standby care and  maintenance
     period at the Gibraltar Mine are expensed as incurred (note 5(a)).

     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.

     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.

     Administrative expenditures are expensed as incurred.

     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.

(f)  Share capital

     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.

     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.

(g)  Stock-based compensation (see also note 2(h))

     The Company has a stock option plan which is  described  in note 7(d).  The
     Company accounts for all non-cash  stock-based  payments to  non-employees,
     and  employee  awards  that are  direct  awards  of  stock,  that  call for
     settlement in cash or other assets, or that are stock  appreciation  rights
     which call for settlement by the issuance of equity instruments, granted on
     or after October 1, 2002, using the fair value based method.

     Under the fair value based method,  stock-based  payments to  non-employees
     are measured at the fair value of the consideration  received,  or the fair
     value of the equity instruments issued, or liabilities incurred,  whichever
     is more  reliably  measurable.  The  fair  value  of  non-cash  stock-based
     payments to non-employees is periodically  re-measured  until  counterparty
     performance  is complete,  and any change  therein is  recognized  over the
     period and in the same manner as if the  Company  had paid cash  instead of
     paying with or using equity instruments.  The cost of non-cash  stock-based
     payments to non-employees that are fully vested and  non-forfeitable at the
     grant date is measured and recognized at that date.

     No  compensation  cost is required to be  recorded  for all other  non-cash
     stock-based employee  compensation awards.  Consideration paid by employees
     upon the  exercise  of stock  options is  credited  to share  capital.  The
     Company presents in the notes to the financial  statements,  if applicable,
     the pro forma loss and loss per share had the fair value  method  been used
     to account for employee non-cash stock-based compensation awards.

     Under the fair value based method, compensation cost attributable to awards
     to employees that are direct awards of stock, or stock appreciation  rights
     which  call for  settlement  by the  issuance  of  equity  instruments,  is
     measured  at fair value at the grant date and  recognized  over the vesting
     period.  Compensation  cost  attributable to awards to employees which call
     for  settlement  in cash or other  assets is  measured at fair value at the
     grant date and recognized over the vesting period.  For awards that vest at
     the  end  of  a  vesting  period,  compensation  cost  is  recognized  on a
     straight-line  basis; for awards that vest on a graded basis,  compensation
     cost is recognized on a pro-rata basis over the vesting period.

(h)  Change in Accounting Policy - Stock-Based Compensation

     Effective October 1, 2002, the Company adopted the new  Recommendations  of
     the Canadian Institute of Chartered  Accountants relating to the accounting
     for stock-based  compensation and other stock-based payments. Under the new
     standard,  payments  to  non-employees,  and to  employees  awards that are
     direct awards of stock,  that call for  settlement in cash or other assets,
     or that are stock  appreciation  rights  which call for  settlement  by the
     issuance  of equity  instruments,  are  accounted  for using the fair value
     method  and is  included  in  operations,  with an  offset  to  contributed
     surplus.  No  compensation  expense  is  recorded  for all  other  non-cash
     stock-based employee  compensation awards;  however pro-forma disclosure of
     net income and  earnings  per share,  had the  Company  used the fair value
     method, is presented if applicable.

     Prior to the  adoption of the new  standard,  no  compensation  expense was
     recorded for the  Company's  stock-based  incentive  plans when the options
     were granted.  Any consideration paid by those exercising stock options was
     credited to share capital upon receipt.

     The new Recommendations are applied prospectively. The adoption of this new
     standard has resulted in no changes to amounts previously reported.

(i)  Income taxes

     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.

(j)  Loss per common share

     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.

     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.

     Diluted  loss  per  share  has not  been  presented  as the  effect  of the
     outstanding options and warrants would be anti-dilutive.

(k)  Fair value of financial instruments

     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.

(l)  Use of estimates

     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,  rates for depreciation and the assumptions used in
     determining  stock-based  compensation.  Actual  results  could differ from
     those estimates.

(m)  Segment disclosures

     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.

(n)  Comparative figures

     Certain of the prior  periods'  comparative  figures have been  restated to
     conform with the presentation adopted for the current period.


3.   ARRANGEMENT AGREEMENT

(a)  Harmony Gold Property

     In October  2001,  the  Company  and its  subsidiary  Gibraltar  Mines Ltd.
     ("Gibraltar")  completed the  acquisition  of the Harmony Gold Property and
     related  assets  from  Continental  Minerals  Corporation   ("Continental")
     (formerly  Misty Mountain Gold Limited),  a British  Columbia  company with
     certain  directors  in  common  with  Taseko,  for  12,483,916  series  "A"
     non-voting  tracking  preferred shares of Gibraltar and $2.23 million cash.
     Subsequent to closing,  a dissenting  shareholder of Continental  exchanged
     their 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' equity on the consolidated balance sheet.

     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:

     Assets acquired .................................           Amount
                                                            -----------
       Property and equipment ..........................    $     8,488
       Reclamation deposit .............................        175,000
       Mineral property interests ......................     28,811,296
                                                            -----------
                                                            $28,994,784
                                                            ===========

     Consideration given
      Cash ............................................     $ 2,230,000
      12,483,916 tracking preferred shares of Gibraltar      26,641,948
      114,800 common shares of the Company ............         122,836
                                                            -----------
                                                            $28,994,784
                                                            ===========

     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 on or
     before  October 16,  2011,  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.

(b)  Westgarde Property

     In  connection  with this  acquisition,  Taseko  sold its  interest  in the
     Westgarde Property to Continental for $230,000 cash, which was 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'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) to the guarantor.


4.   PROPERTY, PLANT AND EQUIPMENT

                                             Accumulated
                                            depreciation
                                      Cost            to        Net book value
     Prosperity Property .......  March 31,     March 31,   March 31,   Sept 30,
     Equipment .................      2003          2003         2003       2002
                                   -------       -------   ----------    -------
     Field .....................   $11,879       $ 9,794   $    2,085    $ 2,453
     Computer and office .......    15,172        13,593        1,579      1,858
                                   -------       -------   ----------    -------
     Total Prosperity Property .   $27,051       $23,387   $    3,664    $ 4,311
                                   =======       =======   ==========    =======

<TABLE>
<CAPTION>

                                                                                       Accumulated
                                                                            Cost   depreciation to              Net book value
     Gibraltar Mine                                                     March 31,        March 31,        March 31,    September 30,
     Plant and Equipment                                                     2003             2003             2003             2002
     -------------------                                              -----------      -----------      -----------      -----------
<S>                                                                   <C>              <C>              <C>              <C>
     Buildings and equipment ...................................      $ 5,931,580      $   378,323      $ 5,553,257      $ 5,591,160
     Mine equipment ............................................        5,454,001        1,826,102        3,627,899        3,862,349
     Plant and equipment .......................................          962,061          480,361          481,700          573,392
     Vehicles ..................................................          152,854           80,363           72,491           82,809
     Computer equipment ........................................          101,162           65,004           36,158           44,504
                                                                      -----------      -----------      -----------      -----------
     Total Gibraltar Mine ......................................      $12,601,658      $ 2,830,153      $ 9,771,505      $10,154,214
                                                                      ===========      ===========      ===========      ===========

     Total property, plant and equipment .......................      $12,628,709      $ 2,853,540      $ 9,775,169      $10,158,525
                                                                      ===========      ===========      ===========      ===========
</TABLE>

     Total  cost  of  buildings   and   equipment  at  September  30,  2002  was
     $12,681,952.

     In  accordance  with the  Gibraltar  mine permit,  the Company  pledged the
     mine's  plant and  equipment  combined  with  reclamation  deposits  ($16.3
     million  at March 31,  2003),  to  provide  the  required  security  to the
     Government for the estimated reclamation liability of $32.7 million.


5.   Mineral property interests

                                                         March 31, September 30,
                                                              2003          2003
                                                      ------------ -------------

     Gibraltar Copper Mine (note 5(a)) ..............  $     1,000   $     1,000
     Prosperity Gold-Copper Property (note 5(b)) ....        1,000         1,000
     Harmony Gold Property (note 5(c)) ..............   28,811,296    28,811,296
                                                        ----------    ----------
                                                       $28,813,296   $28,813,296
                                                       ===========   ===========

(a)  Gibraltar Copper Mine

     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 ("BWCL"),  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.

     In fiscal  2001,  Gibraltar  Mines  Ltd.,  Gibraltar  Engineering  Services
     Limited  Partnership (the "GESL  Partnership")  (see note 5(e)) and Cominco
     Engineering  Services  Ltd.  ("CESL")  concluded a Memorandum  of Agreement
     ("MOA")   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's  existing pilot plant.  CESL and
     GESL  Partnership were each responsible for funding 50% of these evaluation
     costs.

     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 "Gibraltar Refinery").

     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.

     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.

     To  March  31,  2003,  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 (note 5(e)).  Expenses  incurred in excess of the amounts agreed
     to in the original MOA were funded by Taseko and the GESL Partnership.

     The Company retained Procorp  Services Limited  Partnership  ("Procorp") 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.

     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.

(b)  Prosperity Gold-Copper Property

     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).

     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'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.

(c)  Harmony Gold Property (note 3(a))

     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.

     Under the terms of an Arrangement  Agreement (note 3), the Company acquired
     a 100% interest in the Harmony Gold Property in fiscal 2002.

(d)  Westgarde Property

     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.

     Revelation  Exploration  Limited  Partnership   ("Revelation"),   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).

(e)  Farm-out, joint venture and acquisition agreements

     In  February  1999,  the Company  entered  into a farm-out  agreement  with
     Concentrated  Exploration  1999  Limited  Partnership  ("CELP99"),  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's Prosperity and Gibraltar mining projects. The
     Company  had a call right to  repurchase  both of CELP99's  Prosperity  and
     Gibraltar  working  interests by issuing shares of the Company for CELP99's
     investment in each project, at 122% and 135% of the earn-in expenditures of
     the respective projects.

     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's  subsidiary,  Concentrated  Exploration  2000 Ltd.
     ("CEL2000")  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.

     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.

     A further $3 million of expenditures were incurred by the GESL Partnership,
     which were financed by a separate  partnership,  the GESL Refinery  Process
     ("GRP")  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.  Subsequent to March
     31, 2003, in April 2003,  under a plan of  arrangement,  the Company issued
     7,446,809  Taseko  common  shares at a value of $0.47 per share to complete
     the acquisition of Gibraltar  Engineering Services Limited ("GESL"),  which
     had acquired the remaining units of the GESL Partnership.


6.   BANK OPERATING LOAN

     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.


7.   SHARE CAPITAL

(a)  Authorized

     Authorized  share  capital of the Company  consists of  100,000,000  common
     shares without par value.

(b)  Issued and outstanding

<TABLE>
<CAPTION>

                                                                                                Number
     Common shares                                                                           of Shares         Amount
                                                                                            ----------   ------------

<S>                     <C> <C>      <C>                                                    <C>            <C>
     Balance, September 30, 2000 and 2001 .............................................     25,067,697     87,897,199
     Issued and outstanding during the year
         To a dissenting Continental shareholder in exchange for
             Gibraltar preferred shares at $1.07 per share (note 3) ...................        114,800        122,836
         Loan guarantee at $0.66 per share (note 6) ...................................        606,061        400,000
         Private placement at $0.50 per share, net of issue costs .....................        414,850        185,835
         Private placement at $0.47 per share, net of issue costs .....................        276,596        130,000
         Private placement at $0.40 per share, net of issue costs .....................        375,000        150,000
         For the acquisition of Gibraltar Refinery (2002) Ltd. at $0.44 per share,
             net of issue costs (note 5(e)) ...........................................      4,966,659      2,163,330
         For debt settlement at $0.40 per share .......................................      2,100,000        840,000
                                                                                            ----------   ------------
     Balance, September 30, 2002 ......................................................     33,921,663   $ 91,889,200
     Issued during the period
         Share purchase options at $0.50 per share ....................................         40,000         20,000
         Private placement at $0.30 per share(i) ......................................      2,185,000        655,500
         Private placement at $0.30 per share(ii) .....................................      4,232,001      1,269,600
         Private placement at $0.40 per share(iii) ....................................      5,787,500      2,315,000
         Issue costs ..................................................................        268,000       (206,242)
                                                                                            ----------   ------------
     Balance, March 31, 2003 ..........................................................     46,434,164   $ 95,943,058
                                                                                            ==========   ============
</TABLE>

     On December 31, 2002, the Company closed three equity private placements of
     its securities, as follows:

          (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.

          (ii)  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.

          (iii) 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 ("CEE") 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.

     Pursuant to these  private  placements,  the  Company  issued to the agents
     268,000 shares and 268,000 common share  purchase  warrants  exercisable at
     $0.50 per share until December 31, 2004.

(c)  Convertible debenture
                                                             March 31, 2003 and,
                                                              September 30, 2002
                                                             -------------------

     Convertible debenture .............................             $17,000,000
     Price per common share of the unexercised
         conversion right ..............................             $      3.89
     Number of common shares potentially issuable
         under unexercised conversion right ............               4,370,180
                                                                     ===========

     (i)  On July 21, 1999, as part of 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'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.

          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's right to
          settle the  debenture  with cash,  it has been  included as a separate
          component of shareholders' equity on the balance sheet.

     (ii) As per agreed with BWCL the Company deposited the $8,500,000 debenture
          payment  received on  December  29,  2000 as  reclamation  security to
          replace an $8,500,000 letter of credit previously posted by BWCL.


(d)  Share purchase option compensation plan

     The Company has a share purchase option  compensation  plan approved by the
     shareholders  that  allows  it to  grant  up to  8,200,000  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's  employment  or term of  engagement,  except in the case of
     retirement  or death.  Vesting of options is done at the  discretion of the
     Board of Directors at the time the options are granted.

     The continuity of share purchase options is as follows:

<TABLE>
<CAPTION>
                                                                    For the
                                                                 period ended
                                                                    March 31,               For the years ended September 30,
                                                                     2003                      2002                      2001
                                                              Number     Average        Number     Average        Number     Average
                                                           of shares       Price     of shares       Price     of shares       Price
                                                         ----------     ---------    ---------   ---------    ----------   ---------

<S>                                                       <C>           <C>            <C>        <C>          <C>         <C>
     Opening balance .................................    4,145,000     $    0.50      657,000    $   1.56     2,242,500   $    2.31
     Granted during the period .......................      175,000          0.40    4,042,500        0.50       218,500        1.07
     Exercised during the period .....................      (40,000)         0.50            -           -             -           -
     Expired/cancelled during period .................      (30,000)         0.50     (554,500)       1.38    (1,804,000)       2.43
                                                         ----------     ---------    ---------   ---------    ----------   ---------
     Closing balance .................................    4,250,000     $    0.50    4,145,000   $    0.50       657,000   $    1.56
     Contractual remaining life (years) ..............                       1.46                     1.96                      1.21
                                                         ----------     ---------    ---------   ---------   -----------   ---------
     Range of exercise prices ........................  $0.40-$0.50                  $    0.50               $1.65-$3.64
                                                         ==========                  =========               ===========
</TABLE>

     As at March 31, 2003,  4,075,000 of the options outstanding had vested with
     optionees.

     Subsequent to March 31, 2003 a total of 120,000  options at exercise prices
     ranging from $0.30 to $0.38 expiring in two years were granted.


     The exercise prices of all share purchase options granted during the period
     were equal to the market price at the grant date.  Using an option  pricing
     model with the  assumptions  noted below,  the estimated  fair value of all
     options granted to  non-employees  during the period have been reflected in
     the statement of operations as follows:

     Exploration .....................................................   $ 8,458
     Office and administration .......................................     6,344
                                                                         -------
     Total compensation cost recognized in operations,
        credited to contributed surplus...............................   $14,802
                                                                         =======


     The  Company  did not  issue any  stock-based  compensation  to  directors,
     officers or employees during the period. Accordingly, there is no pro forma
     disclosure required.

     The weighted-average assumptions used to estimate the fair value of options
     granted during the period were:

     Risk free interest rate                                                  3%
     Expected life                                                     1.7 years
     Expected volatility                                                     50%
     Expected dividends                                                      nil


(e)  Share purchase warrants

     The  continuity of share purchase warrants is as follows:
<TABLE>
<CAPTION>

                                                                     Outstanding                                    Outstanding
                                                         Exercise  September 30,                                      March 31,
     Expiry dates                                           price           2002        Issued          Expired            2003
     ------------                                        --------  -------------     ---------         --------     -----------

<S>          <C> <C>                                     <C>             <C>              <C>           <C>             <C>
     October 19, 2003 ..............................     $   0.58        276,596           -                  -         276,596
     December 27, 2003 .............................     $   0.55        414,850           -                  -         414,850(i)
     January 8, 2006 ...............................     $   0.40        375,000           -                  -         375,000
     December 31, 2003 .............................     $   0.40            -         302,250                -         302,250
     December 31, 2004 (note 7(b)) .................     $   0.50            -       7,393,751                -       7,393,751(ii)
                                                                       ---------     ---------          --------      ---------
                                                                       1,066,446     7,696,001                -       8,762,447
                                                                       =========     =========          ========      =========
</TABLE>

     (i)  Subject to a 45-day  accelerated  expiry if the  closing  price of the
          Company's common shares, as traded on the TSX Venture Exchange,  is at
          least $0.83 for ten consecutive trading days.

     (ii) Subject to a 45-day  accelerated  expiry if the  closing  price of the
          Company's common shares, as traded on the TSX Venture Exchange,  is at
          least $0.75 for ten consecutive trading days.

     The continuity of share purchase  warrants  during the previous fiscal year
     is as follows:

<TABLE>
<CAPTION>
                                                                   Outstanding                                      Outstanding
                                                      Exercise   September 30,                                    September 30,
     Expiry dates                                        price            2001          Issued         Expired             2002
     ------------                                     --------   --------------       --------      ----------    -------------

<S>        <C>                                        <C>              <C>                            <C>
     March 3, 2002 ................................   $   1.30         138,089             -          (138,089)             -
     March 3, 2002 ................................   $   2.35         407,877             -          (407,877)             -
     December 31, 2000/01 .........................   $   1.38       1,245,000             -        (1,245,000)             -
     October 19, 2003 .............................   $   0.58             -           276,596             -            276,596
     December 27, 2003 ............................   $   0.55             -           414,850             -            414,850
     January 8, 2006 ..............................   $   0.40             -           375,000             -            375,000
                                                                     ---------       ---------      ----------        ---------
                                                                     1,790,966       1,066,446      (1,790,966)       1,066,446
                                                                     =========       =========      ==========        =========
</TABLE>

(f)  Contributed surplus

     Balance, September 30, 2001 and 2002 ..........   $      -
     Changes during fiscal 2003:
        Non-cash stock-based compensation (note 7(d))    14,802
                                                        -------
     Contributed surplus, March 31, 2003 ............    14,802
                                                        =======


8.   INCOME TAXES

     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's future tax assets were as follows:

                                                         2002            2001
                                                 ------------    ------------

     Resource pools ..........................   $  1,555,000    $  7,041,000
     Loss carry forwards .....................      3,211,000       4,452,000
     Other tax pools .........................      1,556,000         864,000
                                                 ------------    ------------
                                                    6,322,000      13,357,000
     Valuation allowance .....................     (6,322,000)    (13,357,000)
                                                 ------------    ------------
     Net future income tax asset (liability)..   $          -    $          -
                                                 ============    ============


     At September 30, 2002,  the Company'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).


9.   SUPPLEMENTARY CASH FLOW DISCLOSURES

     In addition to the non-cash operating,  financing and investing  activities
     primarily  disclosed,  the  Company's  non-cash  operating,  financing  and
     investing activities were as follows:
<TABLE>
<CAPTION>
                                                                                  March 31,   September 30,     September 30,
                                                                                       2003            2002              2001
                                                                           ----------------   -------------     -------------

<S>  <C>                                                                 <C>                 <C>               <C>
     Issuance of tracking preferred shares of Gibraltar Mines
        Ltd. on acquisition of Harmony Gold Property (note 3) ..........   $            -       $26,764,784    $          -
     Issuance of common shares on acquisition of Gibraltar
        Refinery (2002) Ltd. (note 5(e)) ...............................                -         2,163,330               -
     Issuance of common shares on redemption of Gibraltar
        tracking preferred shares held by a dissenting
        Continental shareholder (note 3) ...............................                -           122,836               -
     Issuance of common shares for loan guarantee (note 6) .............                -           400,000               -
     Issuance of common shares settlement of debt (note 7(c)) ..........                -           840,000               -
                                                                           ----------------   -------------    --------------

                                                                           $            -       $30,290,950    $          -
                                                                           ================   =============    ==============

</TABLE>

<TABLE>
<CAPTION>
                                                                                  March 31,   September 30,     September 30,
                                                                                       2003            2002              2001
                                                                           ----------------   -------------   ---------------
<S>     <C>                                                                 <C>               <C>              <C>

     Supplemental cash flow information
     Cash paid during the period for
       Interest ........................................................   $         51,777   $     107,790    $          -
       Taxes ...........................................................   $            -     $     117,333    $      150,888
                                                                           ================   =============    ==============
</TABLE>


10.  RELATED PARTY TRANSACTIONS AND ADVANCES

<TABLE>
<CAPTION>

                                                                                                  March 31,       September 30,
     Transactions                                                                                     2003                2002
     ------------                                                                              -----------        ------------
     Hunter Dickinson Inc.
<S>     <C>                                                                                    <C>               <C>
       Services rendered to the Company and its subsidiaries and
          reimbursement of third party expenses (a) ...................................        $   237,295         $   574,892
       Services rendered to GESL Partnership (b) ......................................        $       -           $ 1,384,496
                                                                                               ===========         ===========

                                                                                                 March 31,        September 30,
     Advances                                                                                         2003                2002
     --------                                                                                  -----------         -----------
     Advances to (from) (d)
       Hunter Dickinson Inc. (a) ......................................................        $ 3,000,733         $  (468,168)
       Hunter Dickinson Group Inc. (c) ................................................        $(3,001,000)        $(3,001,000)
                                                                                               -----------         -----------
       Advances to (from) related parties .............................................        $      (267)        $(3,469,168)
                                                                                               ===========         ===========
</TABLE>

     (a)  Hunter  Dickinson  Inc.  ("HDI")  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.

     (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)).

     (c)  Hunter  Dickinson Group Inc. ("HDG") 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.

     (d)  Equity private placement (see note 7(b)(i)).

     (e)  Advances are non-interest bearing and due on demand.

     (f)  Bank operating loan (see note 6).


11.  SUBSEQUENT EVENT

     On April 4, 2003, the Company  acquired the remaining  business of the GESL
     Partnership  under a plan of  arrangement.  In  fiscal  2002,  the  Company
     acquired a 38% initial  position in these  assets  comprising  primarily of
     technological and operating rights. The fiscal 2003 transaction resulted in
     a reduction  of certain  Taseko  liabilities  by $3 million.  Further,  the
     acquisition  consolidated  the  Company's  100%  ownership  of  the  copper
     refinery engineering  business of the GESL Partnership.  Upon receiving TSX
     Venture Exchange and judicial approvals the Company issued 7,446,809 common
     shares having a deemed value of $0.47 per share, for total consideration of
     $3.5 million.

</TEXT>
</DOCUMENT>
