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<SEC-DOCUMENT>0001062993-04-000989.txt : 20040621
<SEC-HEADER>0001062993-04-000989.hdr.sgml : 20040621
<ACCEPTANCE-DATETIME>20040621144919
ACCESSION NUMBER:		0001062993-04-000989
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20040331
FILED AS OF DATE:		20040621

FILER:

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

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31965
		FILM NUMBER:		04872466

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

	MAIL ADDRESS:	
		STREET 1:		1020-800 W. PENDER STREET
		STREET 2:		V6C 2V6
		CITY:			VANCOUVER
		STATE:			A1
		ZIP:			00000
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>form6k.htm
<DESCRIPTION>REPORT OF FOREIGN PRIVATE ISSUER
<TEXT>
<!DOCTYPE HTML PUBLIC "form20f">


<HTML>
<HEAD>
   <TITLE>Filed by Automated Filing Services Inc. (604) 609-0244 - Taseko Mines Limited - Form 6-K</TITLE>


</HEAD>

<BODY bgcolor="#FFFFFF" style="font-size: 10pt;">

<!--$$/page=-->
<A name="page_1"></A><HR noshade align="center" width="100%" size=3 color="black"><P align="center"><font size="5"><strong>UNITED STATES<br>SECURITIES AND EXCHANGE COMMISSION</strong></font><br> Washington, D.C. 20549</P>
<P align="center"><B><font size="5">FORM 6-K</font></B></P>
<P align="center">REPORT OF FOREIGN PRIVATE ISSUER</P>
<p align="center">Pursuant to Rule 13a-16 or 15d-16<br>
  under the Securities Exchange Act of 1934 </p>
<p align="center">As at March 31, 2004</p>
<P align="center"> <B><u><font size="5">TASEKO MINES LIMITED</font></u></B> <br>
  (Exact name of Registrant specified in its charter) </P>
<P align="center"> <B><u>BRITISH COLUMBIA, CANADA</u></B> <br>
  (Jurisdiction of incorporation or organization) </P>
<P align="center"> <B>Suite 1020, 800 West Pender Street <br>
  <u>Vancouver, British Columbia, Canada, V6C 2V6</u></B> <br>
  (Address of principal executive offices) </P>
<P align="center"> Securities for which there is a reporting obligation pursuant
  to Section 15(d) of the Act. <u><strong><br>
  None </strong></u></P>
<P align="center">Indicate by check mark whether the registrant files or will
  file annual reports under cover Form 20-F or Form 40-F. <br>
  &nbsp; Form 20-F&nbsp;<strong>&nbsp;<font size="3" face="WINGDINGS">&#120;</font></strong>&nbsp;&nbsp;&nbsp;
  Form 40-F&nbsp;&nbsp;<strong>&nbsp;<font size="3" face="WINGDINGS">&#168;</font></strong>&nbsp;&nbsp;&nbsp;<br>
  &nbsp; <br>
  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): ____ <br>
  &nbsp; <br>
  &nbsp; <br>
  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. <br>
  &nbsp; <br>
  &nbsp; <br>
  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): ____ <br>
  &nbsp; <br>
  &nbsp; <br>
  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. <br>
  &nbsp; <br>
  Yes&nbsp;&nbsp;<strong>&nbsp;<font size="3" face="WINGDINGS">&#168;</font></strong>&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;<strong>&nbsp;<font size="3" face="WINGDINGS">&#168;</font></strong>&nbsp;&nbsp;&nbsp;<br>
  &nbsp; <br>
  If &quot;Yes&quot; is marked, indicate below the file number assigned to the
  registrant in connection with Rule 12g3-2(b): 82- ________ <br>
  &nbsp; <br>
</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<!--$$/page=-->
<A name="page_2"></a>
<p align="center"><b>SUBMITTED HEREWITH</b></p>
<p align="left"><u>Exhibits</u></p>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr bgcolor="#EEEEEE">
    <td width="5%" valign="top">&nbsp;</td>
    <td width="5%" valign="top"><a href="exhibit99-1.htm">99.1</a></td>
    <td><a href="exhibit99-1.htm">Second Quarter Financial Statements for the
      Period Ended March 31, 2004</a></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td></td>
  </tr>
  <tr bgcolor="#EEEEEE">
    <td valign="top">&nbsp;</td>
    <td valign="top"><a href="exhibit99-2.htm">99.2</a></td>
    <td><a href="exhibit99-2.htm">Management's Discussion and Analysis for
      the Period Ended March 31, 2004</a></td>
  </tr>
</table>
<p>&nbsp;</p>
<hr noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<!--$$/page=-->
<A name="page_3"></A>
<P align="center"><b>SIGNATURES</b></P>
<P align="left">Pursuant to the requirements of the Securities Exchange Act of
  1934, the registrant has duly caused this report to be signed on its behalf
  by the undersigned, thereunto duly authorized. </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="50%">&nbsp;</TD>
    <TD colspan=2><strong>TASEKO MINES LIMITED</strong></TD>
  </TR>
  <TR>
    <TD width="50%" height="16">&nbsp;</TD>
    <TD width="4%" align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="50%">Dated: June 8, 2004</TD>
    <TD width="4%">By:</TD>
    <TD><u>/s/ Jeffery R. Mason</u></TD>
  </TR>
  <TR>
    <TD width="50%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD> Jeffrey R. Mason</TD>
  </TR>
  <TR>
    <TD width="50%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD>Director and Chief Financial Officer</TD>
  </TR>
</TABLE>
<p>&nbsp;</p><HR noshade align="center" width="100%" size=5 color="black">
</BODY>

</HTML>


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exhibit99-1.htm
<DESCRIPTION>SECOND QUARTER FINANCIAL STATEMENTS FOR THE PERIOD ENDED MARCH 31, 2004
<TEXT>
<!DOCTYPE HTML PUBLIC "exhibit99-1">


<HTML>
<HEAD>
   <TITLE>Filed by Automated Filing Services Inc. (604) 609-0244 - Taseko Mines Limited - Exhibit 99.1</TITLE>


</HEAD>

<BODY bgcolor="#FFFFFF" style="font-size: 10pt;">
<!--$$/page=-->
<A name="page_1"></A>
<hr noshade align="center" width="100%" size=3 color="black">
<P align="center"> TASEKO MINES LIMITED <br>
  CONSOLIDATED FINANCIAL STATEMENTS </P>
<P align="center">
SIX MONTHS ENDED MARCH 31, 2004
</P>
<P align="center">
(Expressed in Canadian Dollars)
</P>
<P align="center"> (Unaudited) </P>
<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<P align="center"> <I>These financial statements have not been reviewed by the
  Company's auditors</I> </P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<!--$$/page=-->
<A name="page_2"></A>
<P> <B><font size="4">TASEKO MINES LIMITED</font></B> <br>
  <B>Consolidated Balance Sheets</B> <br>
  (Expressed in Canadian Dollars) <br>
  (Unaudited) </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:3px;border-top-style:solid">March 31,</TD>
    <TD width="2%" align="left" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:3px;border-top-style:solid">September 30,</TD>
    <TD width="2%" align="left" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%" align="center">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%" align="center">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Assets</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Current assets</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and equivalents</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">28,427,761</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">2,424,221</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts receivable</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">406,224</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">1,049,093</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances to related
      parties (note 11)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">224,538</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Supplies inventory</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">2,293,417</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">2,278,096</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid
      expenses</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">69,897</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">134,207</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">31,197,299</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">6,110,155</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Property, plant and equipment </B>(note 5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">9,222,466</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">9,554,186</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><B>Deposits </B>(note 5(a))</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">2,361,169</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Reclamation deposits </B>(notes 4, 6(a) and 6(d))</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">17,441,496</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">16,757,274</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid"><B>Mineral property interests </B>(note 6)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">28,813,296</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">28,813,296</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid"><B>$</B></TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid"><B>89,035,726</B></TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid"><B>$</B></TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid"><B>61,234,911</B></TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Liabilities and Shareholders' Equity</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Current liabilities</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating line of
      credit (note 7)</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">1,993,396</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable
      and accrued liabilities</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">1,068,010</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">1,857,740</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances
      from related parties (note 11)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">343,528</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">-</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">1,411,538</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">3,851,136</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:1px;border-bottom-style:solid"><B>Reclamation liability (note 5)</B></TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">32,700,000</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">32,700,000</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">34,111,538</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">36,551,136</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Shareholders' equity</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share capital (note
      8)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">138,615,851</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">99,446,319</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Convertible debenture
      (note 8(c))</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">20,087,703</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">19,599,520</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tracking preferred
      shares (note 4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">26,641,948</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">26,641,948</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contributed surplus
      (note 8(f))</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">1,437,326</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">65,344</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deficit</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(131,858,640</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(121,069,356</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">54,924,188</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">24,683,775</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Nature of operations (note 1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Commitments (note 6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">Subsequent events (notes 8 and 12)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid"><B>$</B></TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid"><B>89,035,726</B></TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid"><B>$</B></TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid"><B>61,234,911</B></TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
</TABLE>
<P>
See accompanying notes to consolidated financial statements.
</P>
<P>
Approved by the Board of Directors
</P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
   <TD><I>/s/ Ronald W. Thiessen</I></TD>
   <TD align="left" width="50%"><I>/s/ Jeffrey R. Mason</I></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD width="50%" align="left">&nbsp;</TD>
</TR>
<TR>
   <TD>Ronald W. Thiessen</TD>
   <TD width="50%" align="left">Jeffrey R. Mason</TD>
</TR>
<TR>
   <TD>Director</TD>
   <TD width="50%" align="left">Director</TD>
</TR>
</TABLE>

<br>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<!--$$/page=-->
<A name="page_3"></A>
<P> <B><font size="4">TASEKO MINES LIMITED</font></B> <br>
  <B>Consolidated Statements of Operations</B><br>
  (Expressed in Canadian Dollars) <br>
  (Unaudited) </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD colspan=4 align="center" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">Three months
      ended March 31,</TD>
    <TD width="2%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD colspan=4 align="center" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">Six months
      ended March 31,</TD>
    <TD width="2%" align="left" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%" align="center">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%" align="center">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%" align="center">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%" align="center">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Expenses</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conference and travel</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">22,051</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">6,962</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">62,320</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">26,457</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consulting</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">(10,462</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">58,011</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">100,465</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">107,677</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporation taxes</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">11,168</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">11,594</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">11,168</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">19,738</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">180,407</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">176,617</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">360,385</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">354,994</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exploration (schedule)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">975,538</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">687,681</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">3,106,084</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">972,770</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and finance
      charges</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">9,201</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">28,590</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">28,540</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">51,777</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Laboratory and other
      services</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(732,054</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal, accounting
      and audit</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">22,913</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">18,272</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">39,731</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">74,870</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Office and administration</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">189,976</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">63,676</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">311,714</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">115,446</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premium paid
      for acquisition of Gibraltar Reclamation</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trust
      Limited Partnership</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">5,095,249</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">5,095,249</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property investigation</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">10,734</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">141,063</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">10,734</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholder communication</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">530,704</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">39,104</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">604,506</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">62,631</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation
      (note 8(d))</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">296,686</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">1,610,982</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trust
      and filing</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">17,241</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">10,698</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">21,636</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">11,442</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">7,340,672</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">1,111,939</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">10,761,789</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">1,808,536</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Other items</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and other
      income</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">325,399</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(64,623</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">460,688</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">238,132</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain
      on sale of property, plant and equipment</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">-</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">131,638</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">-</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">131,638</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">325,399</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">67,015</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">460,688</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">369,770</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:2px;border-bottom-style:solid"><B>Loss for the period</B></TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(7,015,273</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(1,044,924</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(10,301,101</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(1,438,766</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:2px;border-bottom-style:solid"><B>Basic and diluted loss per common share </B>(notes
      3 and 8(c))</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(0.10</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(0.03</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(0.17</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(0.05</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><B>Weighted average number of</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>common
      shares outstanding</B></TD>
    <TD width="1%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">72,608,680</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">46,423,942</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">65,005,138</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">40,172,639</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><B>Consolidated Statements of Deficit</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>(Expressed in Canadian Dollars)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>(Unaudited)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD colspan=4 align="center" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">Three months
      ended March 31,</TD>
    <TD width="2%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD colspan=4 align="center" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">Six months
      ended March 31,</TD>
    <TD width="2%" align="left" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Deficit, beginning of period</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>As original reported</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="11%">(124,600,615</TD>
    <TD width="2%" align="left">)</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="11%">(115,353,165</TD>
    <TD width="2%" align="left">)</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="11%">(121,069,356</TD>
    <TD width="2%" align="left">)</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="11%">(114,959,323</TD>
    <TD width="2%" align="left">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>To adjust for the accounting for the convertible</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;debenture
      (note 8(c))</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">-</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(1,933,817</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">-</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(1,710,697</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>As restated</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">(124,600,615</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">(117,286,982</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">(121,069,356</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">(116,670,020</TD>
    <TD width="2%" align="left">)</TD>
  </TR>
  <TR>
    <TD>Loss for the period</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(7,015,273</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(1,044,924</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(10,301,101</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(1,438,766</TD>
    <TD width="2%" align="left">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:1px;border-bottom-style:solid">Accretion expense on convertible debenture</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(242,752</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(220,683</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(488,183</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(443,802</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:2px;border-bottom-style:solid"><B>Deficit, end of period</B></TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(131,858,640</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(118,552,589</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(131,858,640</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(118,552,588</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
  </TR>
</TABLE>
<P>
See accompanying notes to consolidated financial statements.
</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<!--$$/page=-->
<A name="page_4"></A>
<P> <B><font size="4">TASEKO MINES LIMITED</font></B> <br>
  <B>Consolidated Statements of Cash Flows</B><br>
  (Expressed in Canadian Dollars) <br>
  (Unaudited) </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD colspan=4 align="center" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">Three months
      ended March 31,</TD>
    <TD width="2%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD colspan=4 align="center" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">Six months
      ended March 31,</TD>
    <TD width="2%" align="left" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:1px;border-bottom-style:solid"><B>Cash provided by (used for):</B></TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Operating activities</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss for the period</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="11%">(7,015,273</TD>
    <TD width="2%" align="left">)</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="11%">(1,044,924</TD>
    <TD width="2%" align="left">)</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="11%">(10,301,101</TD>
    <TD width="2%" align="left">)</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="11%">(1,438,766</TD>
    <TD width="2%" align="left">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Items not involving cash</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued
      interest on reclamation deposits</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(171,191</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">81,093</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(282,911</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(217,791</TD>
    <TD width="2%" align="left">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">180,407</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">176,617</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">360,385</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">354,994</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based
      compensation</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">296,686</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">14,802</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">1,610,982</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">14,802</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain
      on sale of property, plant and equipment</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">(131,638</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">(131,638</TD>
    <TD width="2%" align="left">)</TD>
  </TR>
  <TR>
    <TD nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition
      premium paid for Gibraltar Reclamation</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trust
      Limited Partnership</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">5,095,249</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">5,095,249</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in non-cash operating working
      capital</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts
      receivable</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">676,026</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">531,861</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">642,869</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">94,072</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Supplies
      inventory</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(4,659</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(9,152</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(15,321</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(10,626</TD>
    <TD width="2%" align="left">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid
      expenses</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">35,718</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">23,112</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">64,310</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">76,806</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts
      payable and accrued liabilities</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(774,056</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(24,433</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(789,730</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">12,371</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(1,681,093</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(382,662</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(3,615,268</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(1,245,776</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Investing activities</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposit on property, plant and equipment</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(2,361,169</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(2,361,169</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of property, plant and equipment</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">(13,432</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">(28,665</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds received on sale of
      property, plant and equipment</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">160,000</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">160,000</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclamation
      deposits</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(401,311</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">-</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(401,311</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2,500,000</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(2,775,912</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">160,000</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(2,791,145</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2,660,000</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><B>Financing activities</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank operating loan</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">(1,713,358</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">30,352</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">(1,993,396</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">(10,051</TD>
    <TD width="2%" align="left">)</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances from related parties</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">112,882</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(487,631</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">568,066</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(3,468,901</TD>
    <TD width="2%" align="left">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances from Gibraltar Reclamation
      Trust</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limited
      Partnership</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">17,099,866</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">17,099,866</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common shares
      issued for cash, net of issue costs</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">8,468,759</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(735</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">16,735,417</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">4,053,858</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">23,968,149</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(458,014</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">32,409,953</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">574,906</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><B>Increase in cash and equivalents</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">19,511,144</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">(680,676</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">26,003,540</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">1,989,130</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:1px;border-bottom-style:solid">Cash and equivalents, beginning of period</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">8,916,617</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2,708,910</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2,424,221</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">39,104</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:2px;border-bottom-style:solid"><B>Cash and equivalents, end of period</B></TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">28,427,761</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">2,028,234</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">28,427,761</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">2,028,234</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
</TABLE>
<P>
Supplementary cash flow disclosures (note 10)
</P>
<P>
See accompanying notes to consolidated financial statements.
</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<!--$$/page=-->
<A name="page_5"></A>
<P> <B><font size="4">TASEKO MINES LIMITED</font></B> <br>
  <B>Consolidated Schedules of Exploration Expenses</B><br>
  (Expressed in Canadian Dollars) <br>
  (Unaudited) </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD colspan=7 align="center" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">Property</TD>
    <TD width="2%" align="left" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" align="left" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid"><B>Six months ended March 31, 2004</B></TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">Prosperity</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">Gibraltar</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">Harmony</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">Total</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Exploration expenses</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assays and analysis</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="11%">10,006</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="11%">826,523</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="11%">236</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="11%">836,765</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Drilling</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">397,596</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">397,596</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equipment rentals</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">1,984</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">26,198</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">28,182</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Geological</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">2,184</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">200,402</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">2,480</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">205,066</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mine planning</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">19,176</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">360,420</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">15,112</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">394,708</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Site
      activities</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">1,593</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">1,242,174</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">-</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">1,243,767</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Exploration expenses during the period</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">34,943</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">3,053,313</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">17,828</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">3,106,084</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:1px;border-bottom-style:solid">Cumulative expenses, beginning of period</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">41,576,410</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">10,902,295</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">27,317</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">52,506,022</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:2px;border-bottom-style:solid">Cumulative expenses, end of period</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">41,611,353</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">13,955,608</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">45,145</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">55,612,106</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD colspan="7" align="center" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">Property</TD>
    <TD width="2%" align="left" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" align="left" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid"><B>Six months ended March 31, 2003</B></TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">Prosperity</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">Gibraltar</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">Harmony</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">Total</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Exploration expenses</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assays and analysis</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="11%">9,223</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="11%">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="11%">2,270</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="11%">11,493</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equipment rentals</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">(89</TD>
    <TD width="2%" align="left">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">-</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">(89</TD>
    <TD width="2%" align="left">)</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Geological</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">162</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">25,482</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">486</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="11%">26,130</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mine planning</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">36,685</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">89,083</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">7,816</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">133,584</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Site
      activities</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">165</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">795,531</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">5,956</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">801,652</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Exploration expenses during the period</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">46,146</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">910,096</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">16,528</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" align="right">972,770</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">Cumulative expenses, beginning of period</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">41,487,910</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">8,988,583</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">-</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="11%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">50,476,493</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:2px;border-bottom-style:solid">Cumulative expenses, end of period</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">41,534,056</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">9,898,679</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">16,528</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="11%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">51,449,263</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
</TABLE>

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<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="top"><B><font size="4">TASEKO MINES LIMITED</font></B> <br>
      Notes to Consolidated Financial Statements <br>
      For the period ended March 31, 2004<br>
      (Expressed in Canadian Dollars) <br>
      (Unaudited) </td>
  </tr>
  <tr>
    <td valign="top" bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD valign="top" width="5%"><B>1.</B></TD>
    <TD valign="top"><p align="justify"><B>Nature of operations</B></p>
      <p align="justify">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&#146;s
        100% owned Gibraltar area exploration properties, the Prosperity Gold-Copper
        Property, and the Harmony Gold Property. The Gibraltar Mine and the Prosperity
        Gold Property are located in south central British Columbia, Canada, near
        the City of Williams Lake. The Harmony Gold Property is located on Graham
        Island, Queen Charlotte Islands - Haida Gwaii, British Columbia.</p>
      <p align="justify"> The Company&#146;s continuing operations and the underlying
        value and recoverability of the amounts shown for the Prosperity and Harmony
        mineral property interests are entirely dependent upon the existence of
        economically recoverable mineral reserves, the ability of the Company
        to obtain the necessary financing to complete the exploration and development
        of its mineral property interests, and upon future profitable production
        or proceeds from the disposition of its mineral property interests. The
        recoverability of the amounts shown for the Gibraltar Mine mineral property
        interest and related plant and equipment and supplies inventory is dependent
        upon the ability of the Company to obtain the necessary financing to re-start
        operations of the mine, should metal prices and other factors warrant
        it, and upon future profitable production or proceeds from the disposition
        of the mine.</p>
      <p align="justify"> These financial statements are prepared on the basis
        that the Company will continue as a going concern. The Company has 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&#146;s operations and exploration programs.
        However, there can be no assurances that the Company will obtain additional
        financial resources and/or achieve profitability or positive cash flows.
        If the Company is unable to obtain adequate additional financing, the
        Company will be required to curtail operations and exploration activities.
        These financial statements do not reflect adjustments, which could be
        material, to the carrying values of assets and liabilities which may be
        required should the Company be unable to continue as a going concern.</p></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%"><B>2.</B></TD>
    <TD valign="top"><p align="justify"><B>Basis of presentation and principles
        of consolidation</B></p>
      <p align="justify"> 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 subsidiary, Gibraltar Mines Ltd. (note 6(a)), its 70% owned
        subsidiary Cuisson Lake Mines Ltd. and its interest in Gibraltar Reclamation
        Trust Limited Partnership (&#147;GRT Partnership&#148;) (note 6(d)). All
        material intercompany accounts and transactions have been eliminated.</p></TD>
  </TR>
</TABLE>

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<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="top"><B><font size="4">TASEKO MINES LIMITED</font></B> <br>
      Notes to Consolidated Financial Statements <br>
      For the period ended March 31, 2004<br>
      (Expressed in Canadian Dollars) <br>
      (Unaudited) </td>
  </tr>
  <tr>
    <td valign="top" bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD valign="top" width="5%"><B>3.</B></TD>
    <TD valign="top"><div align="justify"><B>Significant accounting policies</B></div></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%"><I>(a)</I></TD>
    <TD valign="top"><p align="justify"><I>Cash and equivalents</I></p>
      <p align="justify"> Cash and equivalents consist of cash and highly liquid
        investments, having maturity dates of three months or less from the date
        of acquisition, that are readily convertible to known amounts of cash.</p></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%"><I>(b)</I></TD>
    <TD valign="top"><p align="justify"><I>Supplies inventory</I></p>
      <p align="justify"> Supplies inventory is reported at the lower of moving
        average cost and net realizable value.</p></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%"><I>(c)</I></TD>
    <TD valign="top"><p align="justify"><I>Property, plant and equipment</I></p>
      <p align="justify"> 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
        5), which are depreciated on a straight line basis at rates from 20% to
        50% per annum.</p></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%"><I>(d)</I></TD>
    <TD valign="top"><p align="justify"><I>Mineral property interests</I></p>
      <p align="justify">The Company defers mineral property acquisition costs
        on a property-by-property basis. Exploration expenditures and option payments
        incurred prior to the determination of the feasibility of mining operations
        are charged to operations as incurred. Development expenditures incurred
        subsequent to such determination, to increase production, or to extend
        the life of existing production are capitalized, except as noted below.
        Such acquisition costs and deferred development expenditures are amortized
        and depreciated over the estimated life of the property, or written off
        to operations if the property is abandoned, allowed to lapse, or if there
        is little prospect of further work being carried out by the Company or
        its option or joint venture partners.</p>
      <p align="justify"> All costs incurred by the Company during the standby
        care and maintenance period at the Gibraltar Mine are expensed as incurred.</p>
      <p align="justify"> Mineral property acquisition costs include the cash
        consideration and the fair market value of common shares, based on the
        trading price of the shares at the agreement date, issued for mineral
        property interests, pursuant to the terms of the relevant agreement. Payments
        relating to a property acquired under an option or joint venture agreement,
        where such payments are made at the sole discretion of the Company, are
        recorded in the accounts upon payment.</p>
      <p align="justify"> Costs related to feasibility work and the development
        of processing technology are expensed as incurred. Costs incurred subsequent
        to the determination of the feasibility of the processing technology will
        be capitalized and amortized over the life of the related plant.</p>
      <p align="justify"> Administrative expenditures are expensed as incurred.</p></TD>
  </TR>
</TABLE>

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<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="top"><B><font size="4">TASEKO MINES LIMITED</font></B> <br>
      Notes to Consolidated Financial Statements <br>
      For the period ended March 31, 2004<br>
      (Expressed in Canadian Dollars) <br>
      (Unaudited) </td>
  </tr>
  <tr>
    <td valign="top" bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top"><div align="justify">The amount presented for mineral property
        interests represents costs incurred to date and the accumulated fair value
        of shares issued to date relating to acquisition costs, less write-downs
        (note 6), but does not necessarily reflect present or future values.</div></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%"><I>(e)</I></TD>
    <TD valign="top"><p align="justify"><I>Share capital</I></p>
      <p align="justify"> The Company records proceeds from share issuances net
        of issue costs. Shares issued for consideration other than cash are valued
        at the quoted market price on the date the agreement to issue shares was
        reached.</p>
      <p align="justify"> The proceeds, net of issue costs, from common shares
        issued pursuant to flow-through share financing agreements are credited
        to share capital and the tax benefits of these exploration expenditures
        are transferred to the purchaser of the shares.</p></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%"><I>(f)</I></TD>
    <TD valign="top"><p align="justify"><I>Share-based compensation </I>(see also
        note 3(g))</p>
      <p align="justify"> The Company has a share option plan which is described
        in note 8(d). The Company accounts for all non-cash share-based payments
        and awards that are direct awards of stock, that call for settlement in
        cash or other assets, or that are share 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.</p>
      <p align="justify"> Under the fair value based method, share-based payments
        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 share-based payments
        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 share-based payments that are fully
        vested and non-forfeitable at the grant date is measured and recognized
        at that date.</p>
      <p align="justify"> Under the fair value based method, compensation cost
        attributable to awards that are direct awards of shares, or share 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 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.</p>
      <p align="justify"> Consideration received on the exercise of stock options
        is recorded as share capital and the related contributed surplus is transferred
        to share capital.</p></TD>
  </TR>
</TABLE>

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<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="top"><B><font size="4">TASEKO MINES LIMITED</font></B> <br>
      Notes to Consolidated Financial Statements <br>
      For the period ended March 31, 2004<br>
      (Expressed in Canadian Dollars) <br>
      (Unaudited) </td>
  </tr>
  <tr>
    <td valign="top" bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD valign="top" width="5%"><I>(g)</I></TD>
    <TD valign="top"><p align="justify"><I>Change in Accounting Policy &#150;
        Share-Based Compensation</I></p>
      <p align="justify"> 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 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, are accounted for using the fair
        value method and the related compensation expense is included in operations,
        with an offset to contributed surplus. No compensation expense is required
        to be recorded for all other non-cash stock-based employee compensation
        awards; however the Company is permitted to, and has elected to, include
        these costs in operations.</p>
      <p align="justify"> Prior to the adoption of the new standard, no compensation
        expense was recorded for the Company's share-based incentive plans when
        the options were granted. Any consideration paid by those exercising share
        options was credited to share capital upon receipt.</p>
      <p align="justify"> The new Recommendations have been applied prospectively.
        The adoption of this new standard has resulted in no changes to amounts
        previously reported.</p></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%"><I>(h)</I></TD>
    <TD valign="top"><p align="justify"><I>Income taxes</I></p>
      <p align="justify"> 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 amounts of assets
        and liabilities on the balance sheet and their corresponding tax values,
        generally using the substantively enacted income tax rates expected to
        apply to taxable income in the years in which those temporary difference
        are expected to be recovered or settled. Future income tax assets also
        result from unused loss carry forwards, resource-related pools, and other
        deductions. Future tax assets are recognized to the extent that they are
        considered more likely than not to be realized. The valuation of future
        income tax assets is adjusted, if necessary, by the use of a valuation
        allowance to reflect the estimated realizable amount.</p></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%"><I>(i)</I></TD>
    <TD valign="top"><p align="justify"><I>Loss per common share</I></p>
      <p align="justify"> Basic loss per common share is calculated by dividing
        the loss available to common shareholders by the weighted average number
        of common shares outstanding during the period. For all periods presented,
        loss available to common shareholders equals the reported loss.</p>
      <p align="justify"> 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 share options and warrants are used to repurchase common shares
        at the average market price during the period.</p></TD>
  </TR>
</TABLE>

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<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="top"><B><font size="4">TASEKO MINES LIMITED</font></B> <br>
      Notes to Consolidated Financial Statements <br>
      For the period ended March 31, 2004<br>
      (Expressed in Canadian Dollars) <br>
      (Unaudited) </td>
  </tr>
  <tr>
    <td valign="top" bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top"><div align="justify">In the Company&#146;s case, diluted
        loss per share is the same as basic loss per share as the effect of the
        outstanding options and warrants would be anti-dilutive.</div></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%"><I>(j)</I></TD>
    <TD valign="top"><p align="justify"><I>Fair value of financial instruments</I></p>
      <p align="justify"> The carrying amounts of cash and equivalents, amounts
        receivable, prepaids, reclamation deposits, bank operating loan and accounts
        payable and accrued liabilities, approximate their fair values due to
        their short term nature. The fair values 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/from 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 these notes
        to the financial statements.</p></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%"><I>(k)</I></TD>
    <TD valign="top"><p align="justify"><I>Use of estimates</I></p>
      <p align="justify"> The presentation of financial statements 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 relate to the impairment of mineral property
        interests and plant and equipment, the balance of reclamation liability,
        rates for depreciation and the assumptions used in computing share-based
        compensation and the fair value of the convertible debentures. Actual
        results could differ from these estimates.</p></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%"><I>(l)</I></TD>
    <TD valign="top"><p align="justify"><I>Segment disclosures</I></p>
      <p align="justify"> The Company operates in a single reportable operating
        segment, the exploration, development and operation of mineral property
        interests, within the geographic area of British Columbia, Canada.</p></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%"><I>(m)</I></TD>
    <TD valign="top"><p align="justify"><I>Comparative figures</I></p>
      <p align="justify"> Certain of the prior periods&#146; comparative figures
        have been restated to conform with the presentation adopted for the current
        period.</p></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%"><B>4.</B></TD>
    <TD valign="top"><p align="justify"><B>Arrangement agreement</B></p>
      <p align="justify"> In October 2001, the Company and its subsidiary Gibraltar
        Mines Ltd. (&#147;Gibraltar") completed the acquisition of the Harmony
        Gold Property and related assets from Continental Minerals Corporation
        ("Continental"), 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. 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</p></TD>
  </TR>
</TABLE>

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<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="top"><B><font size="4">TASEKO MINES LIMITED</font></B> <br>
      Notes to Consolidated Financial Statements <br>
      For the period ended March 31, 2004<br>
      (Expressed in Canadian Dollars) <br>
      (Unaudited) </td>
  </tr>
  <tr>
    <td valign="top" bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</td>
  </tr>
</table>
<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td><P align="justify">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&#146; equity on the consolidated
        balance sheet. </P>
      <P align="justify"> As this acquisition was a related party transaction
        not in the normal course of business and did not result in the culmination
        of an earnings process, the acquisition was recorded by the Company at
        the net book value of the assets transferred, net of cash consideration,
        as follows: </P>
</td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%">&nbsp;&nbsp;&nbsp;</TD>
    <TD bgcolor="#E6EFFF"><B>Assets acquired</B></TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="center" bgcolor="#E6EFFF"><B>Amount</B></TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">8,488</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclamation deposit</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">175,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mineral property
      interests</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">28,811,296</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">28,994,784</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD><B>Consideration given</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">2,230,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,483,916 tracking
      preferred shares of Gibraltar</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">26,641,948</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;114,800 common shares
      of the Company to a dissenting shareholder</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">122,836</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:4px;border-bottom-style:double">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:4px;border-bottom-style:double">28,994,784</TD>
    <TD width="2%" style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
  </TR>
</TABLE>
<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td><P align="justify">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. </P>
      <P align="justify"> In connection with this acquisition, Taseko sold its
        interest in the Westgarde Property to Continental for $0.23 million cash,
        which was presented as a recovery of exploration expenses incurred, and
        exchanged its 5% net profits interest, valued at $0.6 million, in the
        Harmony Project for a 1% working interest, valued at $0.6 million, in
        the Company&#146;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 $2.0 million, 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 7) to the guarantor. </P>

</td>
  </tr>
</table>
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<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="top"><B><font size="4">TASEKO MINES LIMITED</font></B> <br>
      Notes to Consolidated Financial Statements <br>
      For the period ended March 31, 2004<br>
      (Expressed in Canadian Dollars) <br>
      (Unaudited) </td>
  </tr>
  <tr>
    <td valign="top" bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</td>
  </tr>
</table>
<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><B>5.</B>&nbsp; </td>
    <td><B>Property, plant and equipment </B></td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%">&nbsp;&nbsp;&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD colspan=7 align="center" style="border-bottom-width:1px;border-bottom-style:solid">March 31, 2004</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD colspan=7 align="center" style="border-bottom-width:1px;border-bottom-style:solid">September 30, 2003</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD><B>Prosperity Property</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD align="right" width="1%">&nbsp;</TD>
    <TD align="right" width="10%">Accumulated</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">Net book</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD align="right" width="1%">&nbsp;</TD>
    <TD align="right" width="10%">Accumulated</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">Net book</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid"><B>Equipment</B></TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">Cost</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">depreciation</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">value</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">Cost</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">depreciation</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">value</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Field</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">11,879</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">10,420</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">1,459</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">11,879</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">10,162</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">1,717</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">Computer and office</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">15,172</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">14,066</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">1,106</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">15,172</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">13,871</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">1,301</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">Total Prosperity Property</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">27,051</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">24,486</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">2,565</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">27,051</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">24,033</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">3,018</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD><B>Gibraltar Mine</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD align="right" width="1%">&nbsp;</TD>
    <TD align="right" width="10%">Accumulated</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">Net book</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD align="right" width="1%">&nbsp;</TD>
    <TD align="right" width="10%">Accumulated</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">Net book</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid"><B>Plant and equipment</B></TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">Cost</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">depreciation</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">value</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">Cost</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">depreciation</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">value</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD nowrap bgcolor="#E6EFFF">Buildings and equipment</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">5,931,580</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">454,128</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">5,477,452</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">5,931,580</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">416,225</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">5,515,355</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>Mine equipment</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">5,589,193</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">2,303,829</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">3,285,364</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">5,589,193</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">2,063,493</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">3,525,700</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Plant and equipment</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">975,493</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">603,937</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">371,556</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">962,061</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">541,935</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">420,126</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>Vehicles</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">168,087</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">102,026</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">66,061</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">152,854</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">90,680</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">62,174</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">Computer equipment</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">101,162</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">81,694</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">19,468</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">101,162</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">73,349</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">27,813</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:2px;border-bottom-style:solid">Total Gibraltar Mine</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">12,765,515</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">3,545,614</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">9,219,901</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">12,736,850</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">3,185,682</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">9,551,168</TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD><B>Total property, plant</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid"><B>and equipment</B></TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">12,792,566</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">3,570,100</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">9,222,466</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">12,763,901</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">3,209,715</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">9,554,186</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
</TABLE>
<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td><div align="justify">In accordance with the Gibraltar mine permit, the
        Company has pledged the mine's plant and equipment which, when taken at
        market value and combined with reclamation deposits (approximately $17.3
        million at March 31, 2004), provide the Government of British Columbia
        with the required security for the estimated reclamation liability on
        the Gibraltar mine of $32.7 million. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><B>6.</B>&nbsp;</td>
    <td><B>Mineral property interests </B></td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:3px;border-top-style:solid">March 31,</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:3px;border-top-style:solid">September 30,</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Gibraltar Copper Mine (note 6(a))</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">1,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">$</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">1,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>Prosperity Gold-Copper Property (note 6(b))</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="right" width="12%">1,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">1,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">Harmony Gold Property (note 6(c))</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">28,811,296</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">28,811,296</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid"><strong>$</strong></TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid"><B>28,813,296</B></TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:2px;border-bottom-style:solid"><strong>$</strong></TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid"><B>28,813,296</B></TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
</TABLE>
<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><em>(a)</em></td>
    <td><p align="justify"><I>Gibraltar Copper Mine</I></p>
      <p align="justify"> In 1999, the Company 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 $3.3
        million. The acquisition included plant and equipment and supplies inventory
        of the Gibraltar mine. As part of its operating permits, a subsidiary
        of the Company 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 March 31, 2004.</p></td>
  </tr>
</table>
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  <tr>
    <td valign="top"><B><font size="4">TASEKO MINES LIMITED</font></B> <br>
      Notes to Consolidated Financial Statements <br>
      For the period ended March 31, 2004<br>
      (Expressed in Canadian Dollars) <br>
      (Unaudited) </td>
  </tr>
  <tr>
    <td valign="top" bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</td>
  </tr>
</table>
<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td><P align="justify">In fiscal 2001, Gibraltar Mines Ltd., Gibraltar Engineering
        Services Limited Partnership (the "GESL Partnership") (see note 6(d)),
        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. </P>
      <P align="justify"> 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").
      </P>
      <P align="justify"> The GESL Partnership has the right to provide necessary
        engineering services relating to a startup 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. </P>
      <P align="justify"> If Gibraltar Mines Ltd. does not proceed with the construction
        of the Gibraltar Refinery, the GESL Partnership also has the right to
        construct, own and operate a refinery utilizing the CESL technology at
        the Gibraltar mine site, subject to the approval by CESL of satisfactory
        licensing arrangements for the use of the CESL technology. In addition,
        if Gibraltar Mines Ltd. does not proceed with the construction of the
        Gibraltar Refinery, the GESL Partnership has the right, until July 1,
        2006, to provide engineering and contract operation services to Gibraltar
        Mines Ltd. or any other party, for the construction and operation of a
        refinery using the CESL technology on the Gibraltar property, subject
        to the approval by CESL of satisfactory licensing arrangements for the
        use of the CESL technology. </P>
      <P align="justify"> To September 30, 2002, the GESL Partnership incurred
        project costs of $4,956,438 (September 30, 2001 - $3,571,942), including
        expenses originally contemplated under the MOA. Expenses incurred in excess
        of the amounts agreed to in the original MOA were funded by the Company
        and the GESL Partnership. During fiscal 2002 and 2003, the Company acquired
        the business carried on by the GESL Partnership (note 6(d)). </P>
      <P align="justify"> 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$0.9 million for services rendered in
      </P>

</td>
  </tr>
</table>
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  <tr>
    <td valign="top"><B><font size="4">TASEKO MINES LIMITED</font></B> <br>
      Notes to Consolidated Financial Statements <br>
      For the period ended March 31, 2004<br>
      (Expressed in Canadian Dollars) <br>
      (Unaudited) </td>
  </tr>
  <tr>
    <td valign="top" bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top"><p align="justify">fiscal 2001 and 2002 (which has been paid)
        and a second payment of US$0.9 million upon successful recommencement
        of commercial production of the Gibraltar Mine. In addition, the Company
        agreed, subject to regulatory approval, to issue to Procorp 3.4 million
        warrants to purchase common shares of the Company at a price of $1.70
        per share for five years upon successful recommencement of commercial
        production at the Gibraltar Mine.</p>
      <p align="justify"> The Gibraltar Mine has been on care and maintenance
        since being acquired in 1999. During fiscal 2001, 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 $5.9 million to a nominal $1,000.</p>
      <p align="justify"> Part of the Gibraltar Mine consists of waste rock dumps
        which the Company has an obligation to reclaim. On November 1, 2002, the
        Company entered into a Landfill Management Agreement and an associated
        Partnering Agreement with the Cariboo Regional District (&#147;CRD&#148;),
        whereby the Company would construct (which has been completed by the Company)
        and manage a municipal landfill on certain of the waste rock dumps for
        the CRD for the life of the landfill, expected to be in excess of 80 years.
        As a result of these agreements, the Company&#146;s reclamation obligation
        was reduced and accordingly, during fiscal 2003, the Government of British
        Columbia released $2.5 million of the reclamation deposits held.</p>
      <p align="justify"> During the quarter ended December 31, 2003, the Company
        acquired 100% of the claims held by Cuisson Lake Mines Ltd. by the payment
        of approximately $65,800.</p>
      <p align="justify"> In March 2004, the Company entered into an agreement
        to purchase a mining shovel for approximately US$10.1 million, of which
        US$1,800,000 ($2,361,169) has been paid as an initial deposit. Subsequent
        to March 31, 2004, the Company paid an additional US$4.6 million ($6.18
        million) toward this purchase.</p></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%"><I>(b)</I></TD>
    <TD valign="top"><p align="justify"><I>Prosperity Gold-Copper Property</I></p>
      <p align="justify"> 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 $28.66 million. 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.</p></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%"><I>(c)</I></TD>
    <TD valign="top"><p align="justify"><I>Harmony Gold Property (note 4)</I></p>
      <p align="justify"> 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 $0.6 million, and purchased for $1, an exclusive farm-out
        right to earn up to a 10% working interest in the Harmony Property, by
        expending $0.6 million for each 1% working interest prior to January 1,
        2001. The Harmony Gold Property was owned by</p></TD>
  </TR>
</TABLE>

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  <tr>
    <td valign="top"><B><font size="4">TASEKO MINES LIMITED</font></B> <br>
      Notes to Consolidated Financial Statements <br>
      For the period ended March 31, 2004<br>
      (Expressed in Canadian Dollars) <br>
      (Unaudited) </td>
  </tr>
  <tr>
    <td valign="top" bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top"><div align="justify">
        <p>Continental, a public British Columbia company with certain directors
          and officers in common with the Company. During fiscal 2001, the Company
          allowed this working interest option to expire, unexercised.</p>
        <p> Under the terms of an Arrangement Agreement (note 4), the Company
          acquired a 100% interest in the Harmony Gold Property in fiscal 2002.</p>
      </div></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%"><I>(d)</I></TD>
    <TD valign="top"><div align="justify">
        <p><I>Acquisition agreements</I></p>
        <p> In December 2001, the GESL Partnership completed a private placement
          of limited partnership units for aggregate proceeds of $1.85 million.
          In February 2002, the Company issued 4,966,659 Taseko common shares
          at $0.44 per share to acquire Gibraltar Refinery (2002) Ltd., which
          had acquired certain of 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 $4.85 million. In December 2002, a general
          partnership interest in the GRP Partnership was acquired and financed
          by a third party for $3.0 million. In April 2003, under a plan of arrangement,
          the Company issued 7,446,809 Taseko common shares for total consideration
          of $3.5 million to complete the acquisition of Gibraltar Engineering
          Services Limited ("GESL"), which had acquired the remaining business
          of the GESL Partnership.</p>
        <p> In December 2003, the GRT Partnership completed a private placement
          of limited partnership units for aggregate proceeds of $18.6 million
          to partially fund the possible re-start of the Gibraltar copper mine
          owned by a subsidiary of the Company, Gibraltar Mines Ltd. As part of
          the financing the GRT Partnership entered into a joint venture arrangement
          with Gibraltar Mines Ltd. to proceed towards possibly restarting the
          Gibraltar copper mine. Gibraltar Mines Ltd, as its contribution to the
          Joint Venture, will contribute the use of its mine assets and fund the
          start-up expenses of the Gibraltar mine, and the GRT Partnership funded
          a qualifying environmental trust (&#147;QET&#148;), which has allowed
          Gibraltar to access other funds which were previously held by the Government
          of British Columbia as a security for the mine&#146;s environmental
          reclamation obligations. Under the joint venture agreement, the GRT
          Partnership will be entitled to certain revenues or production share
          from the Gibraltar mine following the resumption of production. In March
          2004, the Company issued 7,967,742 common shares at $2.79 per share
          for total consideration of $22.23 million to acquire all of the units
          of the GRT Partnership.</p>
      </div></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%"><I>(e)</I></TD>
    <TD valign="top"><div align="justify">
        <p><I>Farmout Agreement</I></p>
        <p> In December 2003, the Company entered into a Farmout Agreement (the
          "Agreement") with Northern Dynasty Minerals Ltd. ("Northern Dynasty"),
          and Rockwell Ventures Inc. ("Rockwell"), each public companies with
          certain directors in common with the Company. Under the terms of the
          Agreement, the Company granted to Northern Dynasty and to Rockwell rights
          to earn joint venture working interests, subject to a maximum of $650,000
          in the case of Northern Dynasty and $200,000 in the case of Rockwell,
          on certain exploration properties located</p>
      </div></TD>
  </TR>
</TABLE>

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<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="top"><B><font size="4">TASEKO MINES LIMITED</font></B> <br>
      Notes to Consolidated Financial Statements <br>
      For the period ended March 31, 2004<br>
      (Expressed in Canadian Dollars) <br>
      (Unaudited) </td>
  </tr>
  <tr>
    <td valign="top" bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD valign="top"><p>&nbsp;</p></TD>
    <TD valign="top"><p align="justify">in the vicinity of the Gibraltar mine
        property. For a period of 150 days after Northern Dynasty and Rockwell
        have earned their working interests, the Company has the right to purchase
        their interests at 110% in cash or in common shares of the Company, at
        the Company's option. If the Company elects to issue common shares, the
        common shares to be issued upon exercise will be valued at the weighted
        average ten-day trading price as traded on the TSX Venture Exchange.</p>
      <p align="justify">During the quarter ended December 31, 2003, Northern
        Dynasty had earned an interest in these properties to the extent of $650,000
        and Rockwell had earned an interest in these properties to the extent
        of $200,000.</p>
      <p align="justify"> During the quarter ended March 31, 2004, Taseko exercised
        its right to purchase the interests earned by Northern Dynasty and Rockwell,
        by issuing, 256,272 Taseko common shares to Northern Dynasty and 78,853
        Taseko common shares to Rockwell. This issuance is subject to regulatory
        approvals.</p></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%"><B>7.</B></TD>
    <TD valign="top"><p align="justify"><B>Operating line of credit</B></p>
      <p align="justify"> During fiscal 2002, the Company negotiated a $2 million
        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 provided a fully collateralized guarantee and received
        606,061 common shares of the Company in exchange for the guarantee. The
        market value of the shares issued was included in interest expense in
        the fiscal 2002 consolidated statement of operations.</p></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%"><B>8.</B></TD>
    <TD valign="top"><div align="justify"><B>Share capital</B></div></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%"><I>(a)</I></TD>
    <TD valign="top"><p align="justify"><I>Authorized</I></p>
      <p align="justify"> Authorized share capital of the Company consists of
        200,000,000 common shares without par value.</p></TD>
  </TR>
</TABLE>

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<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="top"><B><font size="4">TASEKO MINES LIMITED</font></B> <br>
      Notes to Consolidated Financial Statements <br>
      For the period ended March 31, 2004<br>
      (Expressed in Canadian Dollars) <br>
      (Unaudited) </td>
  </tr>
  <tr>
    <td valign="top" bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</td>
  </tr>
</table>
<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><I>(b)</I> </td>
    <td><I> Issued and outstanding </I></td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%"></TD>
    <TD style="border-top-width:3px;border-top-style:solid"> </TD>
    <TD width="12%" align="center" style="border-top-width:3px;border-top-style:solid">Number</TD>
    <TD width="2%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" align="left" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid"><B>Common shares </B></TD>
    <TD width="12%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">of
      Shares</TD>
    <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">Amount</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;&nbsp;&nbsp;</TD>
    <TD bgcolor="#E6EFFF"><B>Balance, September 30, 2002 </B></TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF"><B>33,921,663</B></TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF"><B>$</B></TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF"><B>91,889,200</B></TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>Issued during the year </TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share purchase options
      at $0.50 per share </TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">40,000</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">20,000</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Private placement at
      $0.30 per share, net of issue costs </TD>
    <TD align="right" width="12%">2,185,000</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">645,245</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Private placement at
      $0.30 per share, net of issue costs </TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">4,470,001</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">1,253,654</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Private placement at
      $0.40 per share, net of issue costs </TD>
    <TD align="right" width="12%">5,817,500</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">2,146,666</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For acquisition of the
      remaining business of the GESL Partnership, </TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;net
      of issue costs (note 6(d)) </TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">7,446,809</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">3,491,554</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF"><B>Balance, September 30, 2003 </B></TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF"><B>53,880,973</B></TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF"><B>$</B></TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF"><B>99,446,319</B></TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>Issued during the period </TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share purchase options
      at $0.50 per share </TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">2,024,000</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">1,012,000</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share purchase options
      at $0.40 per share </TD>
    <TD align="right" width="12%">152,500</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">61,000</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share purchase options
      at $0.25 per share </TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">75,000</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">18,750</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share purchase options
      at $0.55 per share </TD>
    <TD align="right" width="12%">355,000</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">195,250</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value of stock options
      allocated to shares issued on exercise </TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">239,000</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share purchase warrants
      at $0.58 per share</TD>
    <TD align="right" width="12%">276,596</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">160,426</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share purchase warrants
      at $0.55 per share</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">414,850</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">228,168</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share purchase warrants
      at $0.40 per share</TD>
    <TD align="right" width="12%">302,250</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">120,900</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share purchase warrants
      at $0.50 per share</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">7,393,751</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">3,696,876</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Private placement at
      $0.60 per share, net of issue costs </TD>
    <TD align="right" width="12%">6,700,000</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">3,910,801</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Private placement at
      $2.00 per share, net of issue costs </TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">3,900,000</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">7,331,247</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For acquisition of Gibraltar
      Reclamation Trust Limited Partnership </TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;at
      $ 2.79 per share, net of issue costs (note 6(d))</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">7,967,742</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">22,195,114</TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:2px;border-bottom-style:solid"><B>Balance, March 31, 2004 </B></TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid"><B>83,442,662</B></TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid"><B>$</B></TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid"><B>138,615,851</B></TD>
    <TD width="2%" align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
</TABLE>
<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><em>(c)</em></td>
    <td><p align="justify"><I>Convertible debenture</I></p>
      <p align="justify"> On July 21, 1999, in connection with the acquisition
        of the Gibraltar Mine, the Company issued a $17 million interest-free
        debenture to BWCL, which is due on July 21, 2009, but is convertible into
        common shares of the Company over a 10 year period commencing at a price
        of $3.14 per share in year one and escalating by $0.25 per share per year
        thereafter (currently $4.14 per share). BWCL&#146;s purchase of the convertible
        debenture was receivable as to $4,000,000 in July 1999, $1,000,000 on
        October 19, 1999, $3,500,000 on July 21, 2000, and $8,500,000 by December
        31, 2000, all of which were received. BWCL has the right to convert, in
        part or in all from time to time, the debenture into fully paid common
        shares of the Company from year one to year ten.</p>
      <p align="justify"> 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&#146;s right
        to settle the debenture with cash, it has been included as a separate
        component of shareholders&#146; equity on the balance sheet.</p></td>
  </tr>
</table>
<br>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<!--$$/page=-->
<A name="page_18"></A> <br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="top"><B><font size="4">TASEKO MINES LIMITED</font></B> <br>
      Notes to Consolidated Financial Statements <br>
      For the period ended March 31, 2004<br>
      (Expressed in Canadian Dollars) <br>
      (Unaudited) </td>
  </tr>
  <tr>
    <td valign="top" bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</td>
  </tr>
</table>
<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td><div align="justify">Accounting standards in Canada for compound financial
        instruments require the Company to allocate the proceeds received from
        the convertible debenture between (i) the fair value of the option to
        convert the debenture into common shares and (ii) the fair value of the
        future cash outflows related to the debenture. At issuance, the Company
        estimated the fair value of the conversion option by deducting the present
        value of the future cash outflows of the convertible debenture, calculated
        using a risk-adjusted discount rate of 10%, from the face value of the
        principal of the convertible debenture. The residual carrying value of
        the convertible debenture is required to be accreted to the face value
        of the convertible debenture over the life of the debenture by, in the
        Company&#146;s case, a direct charge to deficit. During the year ended
        September 30, 2003, the Company restated the prior years' convertible
        debenture and deficit balances within shareholders&#146; equity on the
        balance sheet and the statements of deficit for the years ended September
        30, 2002 and 2001 to reflect the required accretion of the convertible
        debenture. </div></td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" align="center" style="border-top-width:3px;border-top-style:solid">Six
      months</TD>
    <TD width="2%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="center" width="12%">ended</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="12%">For year ended</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="center" width="12%">March 31,</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="12%">September 30,</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Present value of convertible debenture</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning
      of period</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">9,777,058</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">8,888,235</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accretion
      for the period</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">488,183</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">888,823</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End
      of period</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">10,265,241</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">9,777,058</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">Conversion right</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">9,822,462</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">9,822,462</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">20,087,703</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">19,599,520</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" align="center" style="border-top-width:3px;border-top-style:solid">Six
      months</TD>
    <TD width="2%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="center" width="12%">ended</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="12%">For year ended</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="center" width="12%">March 31,</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD width="1%" align="center">&nbsp;</TD>
    <TD align="center" width="12%">September 30,</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Summary of the convertible debenture terms</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal amount of convertible debenture</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">17,000,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">17,000,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Price per common share of the unexercised
      conversion right</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">4.14</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">4.14</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number of common shares potentially
      issuable under</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;unexercised
      conversion right</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">4,106,280</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">4,106,280</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
</TABLE>
<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><em>(d)</em></td>
    <td><p align="justify"><I>Share purchase option plan</I></p>
      <p align="justify"> The Company has a share purchase option 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 may be set
        equal to or greater than the closing market price of the common shares
        on the TSX Venture Exchange</p></td>
  </tr>
</table>
<br>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<!--$$/page=-->
<A name="page_19"></A> <br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="top"><B><font size="4">TASEKO MINES LIMITED</font></B> <br>
      Notes to Consolidated Financial Statements <br>
      For the period ended March 31, 2004<br>
      (Expressed in Canadian Dollars) <br>
      (Unaudited) </td>
  </tr>
  <tr>
    <td valign="top" bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</td>
  </tr>
</table>
<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td><P align="justify">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&#146;s
        employment or term of engagement, except in the case of retirement or
        death. Vesting of options is at the discretion of the Board of Directors
        at the time the options are granted. </P>
      <P align="justify"> The continuity of share purchase options is as follows:
      </P>
</td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD colspan=4 align="center" style="border-top-width:1px;border-top-style:solid">For the six month</TD>
    <TD width="2%" align="center" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="10%" align="center" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" align="center" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="7%" align="center" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" align="center" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="10%" align="center" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" align="center" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="7%" align="center" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" align="center" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD colspan=4 align="center">period ended</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="10%">&nbsp;</TD>
    <TD align="center" width="2%">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="7%">&nbsp;</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="10%">&nbsp;</TD>
    <TD align="center" width="2%">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="7%">&nbsp;</TD>
    <TD width="2%" align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD colspan=4 align="center">March 31,</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD colspan=10 align="center" style="border-bottom-width:1px;border-bottom-style:solid">For the years ended September 30,</TD>
    <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD colspan=4 align="center" style="border-bottom-width:1px;border-bottom-style:solid"><B>2004</B></TD>
    <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD colspan=4 align="center" style="border-bottom-width:1px;border-bottom-style:solid"><B>2003</B></TD>
    <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD colspan=4 align="center" style="border-bottom-width:1px;border-bottom-style:solid"><B>2002</B></TD>
    <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="center" width="10%">Number</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="7%">Average</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD width="1%" align="center">&nbsp;</TD>
    <TD width="10%" align="center">Number</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="7%">Average</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="10%">Number</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="7%">Average</TD>
    <TD width="2%" align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">of shares</TD>
    <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="7%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">Price</TD>
    <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">of shares</TD>
    <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="7%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">Price</TD>
    <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">of shares</TD>
    <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="7%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">Price</TD>
    <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Opening balance</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">4,685,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="7%" align="right" bgcolor="#E6EFFF">0.48</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">4,145,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="7%" align="right" bgcolor="#E6EFFF">0.50</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">657,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="7%" align="right" bgcolor="#E6EFFF">1.56</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>Granted during the period</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">3,010,500</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="7%">0.61</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">770,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="7%">0.41</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="1%">&nbsp;</TD>
    <TD align="right" width="10%">4,042,500</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="7%">0.50</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Exercised during the period</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">(2,606,500</TD>
    <TD width="2%" bgcolor="#E6EFFF">)</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="7%" align="right" bgcolor="#E6EFFF">0.49</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">(40,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">)</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="7%" align="right" bgcolor="#E6EFFF">0.50</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="7%" align="right" bgcolor="#E6EFFF">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">Expired/cancelled during period</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&#150;</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="7%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&#150;</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(190,000</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid"> )</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="7%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">0.50</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(554,500</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid"> )</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="7%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">1.38</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Closing balance</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">5,089,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="7%" align="right" bgcolor="#E6EFFF">0.55</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">4,685,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="7%" align="right" bgcolor="#E6EFFF">0.48</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">4,145,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="7%" align="right" bgcolor="#E6EFFF">0.50</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">Contractual remaining life (years)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="7%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">1.51</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="7%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">1.03</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="7%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">1.96</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">Range of exercise prices</TD>
    <TD width="1%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$0.25-$1.65</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="7%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$0.25-$0.50</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="7%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$0.50</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="7%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
</TABLE>
<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td><P align="justify">As at March 31, 2004, 4,648,750 of the options outstanding
        had vested with optionees. Subsequent to March 31, 2004, a total of 404,000
        options were exercised for gross proceeds of $202,000. </P>
      <P align="justify"> 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 during the period have been reflected
        in the statement of operations as follows: </P>
</td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="right" width="14%">Six months ended</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="right" width="14%">Year ended</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="right" width="14%">March 31,</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="right" width="14%">September 30,</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="14%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="14%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD><B>Total compensation cost recognized in operations,</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>credited
      to contributed surplus</B></TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid"><B>$</B></TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid"><B>1,610,982</B></TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid"><B>$</B></TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid"><B>65,344</B></TD>
    <TD width="2%" align="left" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
</TABLE>

<br>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<!--$$/page=-->
<A name="page_20"></A> <br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="top"><B><font size="4">TASEKO MINES LIMITED</font></B> <br>
      Notes to Consolidated Financial Statements <br>
      For the period ended March 31, 2004<br>
      (Expressed in Canadian Dollars) <br>
      (Unaudited) </td>
  </tr>
  <tr>
    <td valign="top" bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</td>
  </tr>
</table>
<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td>The weighted average assumptions used to estimate the fair value of options
      granted during the period were: </td>
  </tr>
</table>
<br>
<TABLE width="70%" border="0" align="center" cellpadding="0" cellspacing="0" style="font-size:10pt;border-color:black;border-collapse:collapse;">
  <TR bgcolor="#E6EFFF">
    <TD>Risk free interest rate</TD>
    <TD width="40%" align="right">3%</TD>
  </TR>
  <TR>
    <TD>Expected life</TD>
    <TD align="right" width="40%">2.6 years</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Volatility</TD>
    <TD width="40%" align="right">100%</TD>
  </TR>
  <TR>
    <TD>Expected dividends</TD>
    <TD align="right" width="40%">nil</TD>
  </TR>
</TABLE>
<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><em>(e)</em></td>
    <td><p><I>Share purchase warrants</I></p>
      <p> The continuity of share purchase warrants is as follows:</p></td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="10%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:3px;border-top-style:solid">Outstanding</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:3px;border-top-style:solid">Outstanding</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" width="2%">&nbsp;</TD>
    <TD align="center" width="10%">Exercise</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">September 30,</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">March 31,</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">Expiry dates</TD>
    <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">price</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">Issued</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">Exercised</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">October 19, 2003</TD>
    <TD width="2%" align="center" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="center" bgcolor="#E6EFFF">$0.58</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">276,596</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">(276,596</TD>
    <TD width="2%" bgcolor="#E6EFFF">)</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>December 27, 2003</TD>
    <TD align="center" width="2%">&nbsp;</TD>
    <TD align="center" width="10%">$0.55</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">414,850</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">(414,850</TD>
    <TD width="2%">)</TD>
    <TD align="right" width="12%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">January 8, 2006</TD>
    <TD width="2%" align="center" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="center" bgcolor="#E6EFFF">$0.40</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">375,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">375,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>December 31, 2003</TD>
    <TD align="center" width="2%">&nbsp;</TD>
    <TD align="center" width="10%">$0.40</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">302,250</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">(302,250</TD>
    <TD width="2%">)</TD>
    <TD align="right" width="12%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">December 31, 2004</TD>
    <TD width="2%" align="center" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="center" bgcolor="#E6EFFF">$0.50</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">7,393,751</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">(7,393,751</TD>
    <TD width="2%" bgcolor="#E6EFFF">)</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>December 31, 2005</TD>
    <TD align="center" width="2%">&nbsp;</TD>
    <TD align="center" width="10%">$0.75</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">6,700,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">6,700,000</TD>
    <TD width="2%"> <SUP><i>(i)</i></SUP></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">March 10, 2005</TD>
    <TD width="2%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">$2.25</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">3,900,000</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">3,900,000</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"><SUP><i>(ii)</i></SUP></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">8,762,447</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">10,600,000</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(8,387,447</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">10,975,000</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
</TABLE>
<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td width="5%" valign="top">(<I>i</I>) </td>
    <td><div align="justify">Subject to a 45-day accelerated expiry upon notice
        if, at any time after the regulatory four-month hold period, the closing
        price of the Company's common shares, as traded on the TSX Venture Exchange,
        is at least $1.50 for ten consecutive trading days.</div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top"><em>(ii)</em></td>
    <td> <div align="justify">
        <p>Subject to a 45-day accelerated expiry upon notice if, at any time
          after the regulatory four-month hold period, the closing price of the
          Company's common shares, as traded on the TSX Venture Exchange, is at
          least $4.50 for ten consecutive trading days.</p>
        <p> Subsequent to March 31, 2004, a total of 215,000 warrants were exercised
          for gross proceeds of $0.16 million.</p>
      </div></td>
  </tr>
</table>
<br>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<!--$$/page=-->
<A name="page_21"></A> <br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="top"><B><font size="4">TASEKO MINES LIMITED</font></B> <br>
      Notes to Consolidated Financial Statements <br>
      For the period ended March 31, 2004<br>
      (Expressed in Canadian Dollars) <br>
      (Unaudited) </td>
  </tr>
  <tr>
    <td valign="top" bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</td>
  </tr>
</table>
<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td>The continuity of share purchase warrants during the previous fiscal year
      is as follows: </td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="10%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:3px;border-top-style:solid">Outstanding</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:3px;border-top-style:solid">Outstanding</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" width="2%">&nbsp;</TD>
    <TD align="center" width="10%">Exercise</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">September 30,</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">September 30,</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">Expiry dates</TD>
    <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">price</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2002</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">Issued</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">Exercised</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">October 19, 2003</TD>
    <TD width="2%" align="center" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="center" bgcolor="#E6EFFF">$0.58</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">276,596</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">276,596</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>December 27, 2003</TD>
    <TD align="center" width="2%">&nbsp;</TD>
    <TD align="center" width="10%">$0.55</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">414,850</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">414,850</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">January 8, 2006</TD>
    <TD width="2%" align="center" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="center" bgcolor="#E6EFFF">$0.40</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">375,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">375,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>December 31, 2003</TD>
    <TD align="center" width="2%">&nbsp;</TD>
    <TD align="center" width="10%">$0.40</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">302,250</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">302,250</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">December 31, 2004</TD>
    <TD width="2%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">$0.50</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">7,393,751</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">7,393,751</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="10%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">1,066,446</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">7,696,001</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">&#150;</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">8,762,447</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD colspan="12">&nbsp;</TD>
  </TR>
  <TR>
    <TD><I>(f) </I></TD>
    <TD colspan="12"><I>Contributed surplus </I></TD>
  </TR>
</TABLE>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%">&nbsp;&nbsp;&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Balance, September 30, 2002</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>Changes during fiscal 2003:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash
      stock-based compensation (note 8(d))</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">65,344</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>Contributed surplus, September 30, 2003</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">65,344</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Changes during fiscal 2004:</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash stock-based
      compensation (note 8(d))</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">1,610,982</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair
      value of stock options allocated to shares issued on exercise</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">(239,000</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:2px;border-bottom-style:solid">Contributed surplus, March 31, 2004</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">1,437,326</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
</TABLE>
<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><strong>9.</strong></td>
    <td><p align="justify"><B>Income taxes</B></p>
      <p align="justify"> Substantially all of the difference between the actual
        income tax expense (recovery) of $nil (2002 - $nil) and the expected statutory
        corporate income tax recovery relates to losses not recognized. As at
        September 30, 2003 and 2002, the tax effect of the significant components
        within the Company&#146;s future tax assets were as follows:</p></td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">2002</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Mineral property deductions</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">1,555,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>Loss carry forwards</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">1,778,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">3,211,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Equipment</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">1,085,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">840,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:2px;border-bottom-style:solid">Other tax pools</TD>
    <TD width="1%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">775,000</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">716,000</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">3,638,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">6,322,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:2px;border-bottom-style:solid">Valuation allowance</TD>
    <TD width="1%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(3,638,000</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(6,322,000</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">Net future income tax asset (liability)</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
</TABLE>
<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td><div align="justify">At September 30, 2003, the Company&#146;s tax attributes
        include non-capital losses for income tax purposes in Canada totaling
        approximately $5.0 million, expiring in various periods from 2004 to 2010,
        and certain resource related and other tax pools. The Gibraltar tracking
        preferred shares </div></td>
  </tr>
</table>
<br>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<!--$$/page=-->
<A name="page_22"></A> <br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="top"><B><font size="4">TASEKO MINES LIMITED</font></B> <br>
      Notes to Consolidated Financial Statements <br>
      For the period ended March 31, 2004<br>
      (Expressed in Canadian Dollars) <br>
      (Unaudited) </td>
  </tr>
  <tr>
    <td valign="top" bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</td>
  </tr>
</table>
<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td><div align="justify">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 4).</div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><strong>10.</strong></td>
    <td><p align="justify"><B>Supplementary cash flow disclosures</B></p>
      <p align="justify"> In addition to the non-cash operating, financing and
        investing activities primarily disclosed, the Company&#146;s non-cash
        operating, financing and investing activities were as follows:</p></td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%">&nbsp;&nbsp;&nbsp;</TD>
    <TD align="left" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" align="center" style="border-top-width:3px;border-top-style:solid">March 31,</TD>
    <TD width="2%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" align="center" style="border-top-width:3px;border-top-style:solid">September 30,</TD>
    <TD width="2%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" align="center" style="border-top-width:3px;border-top-style:solid">September 30,</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">2002</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD align="left" bgcolor="#E6EFFF">Issuance of tracking preferred shares of Gibraltar Mines</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" align="center">&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ltd.
      on acquisition of Harmony Gold Property (note 4)</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">$</TD>
    <TD align="right" width="12%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">$</TD>
    <TD align="right" width="12%">26,764,784</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD align="left" bgcolor="#E6EFFF">Issuance of common shares on acquisition of Gibraltar</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" align="center">&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Refinery
      (2002) Ltd. (note 6(d))</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="right" width="12%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">2,163,330</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD align="left" bgcolor="#E6EFFF">Issuance of common shares on acquisition of remaining</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" align="center">&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;business
      of GESL Partnership</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="right" width="12%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">3,500,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD align="left" bgcolor="#E6EFFF">Issuance of common shares on acquisition of Gibraltar</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" align="center">&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclamation
      Trust Limited Partnership</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="right" width="12%">22,230,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD align="left" bgcolor="#E6EFFF">Issuance of common shares on redemption of Gibraltar</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" align="center">&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;tracking
      preferred shares held by a dissenting</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="right" width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" align="center">&nbsp;</TD>
    <TD align="left" bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continental
      shareholder (note 4)</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">122,836</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD align="left">Issuance of common shares for loan guarantee (note 7)</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="right" width="12%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">400,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD align="left" bgcolor="#E6EFFF">Issuance of common shares settlement of debt</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">840,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD align="left">Accretion of convertible debenture (note 8(c))</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="right" width="12%">488,183</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">888,823</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">808,021</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD align="left" bgcolor="#E6EFFF">Fair value of stock options allocated to shares issued on</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" align="center">&nbsp;</TD>
    <TD align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;exercise</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">239,000</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&#150;</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&#150;</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD width="1%" align="center">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD align="left" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" align="center" style="border-top-width:3px;border-top-style:solid">March 31,</TD>
    <TD width="2%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" align="center" style="border-top-width:3px;border-top-style:solid">September 30,</TD>
    <TD width="2%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" align="center" style="border-top-width:3px;border-top-style:solid">September 30,</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD align="left" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">2002</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD align="left"><B>Supplemental cash flow information</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD align="left" bgcolor="#E6EFFF">Cash paid during the period for</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest</TD>
    <TD width="1%" align="center">$</TD>
    <TD width="12%" align="right">28,540</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">$</TD>
    <TD width="12%" align="right">101,942</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">$</TD>
    <TD width="12%" align="right">107,790</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD align="left" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">11,168</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">6,135</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">117,333</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
</TABLE>

<br>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<!--$$/page=-->
<A name="page_23"></A> <br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="top"><B><font size="4">TASEKO MINES LIMITED</font></B> <br>
      Notes to Consolidated Financial Statements <br>
      For the period ended March 31, 2004<br>
      (Expressed in Canadian Dollars) <br>
      (Unaudited) </td>
  </tr>
  <tr>
    <td valign="top" bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</td>
  </tr>
</table>
<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><B>11. </B></td>
    <td><B>Related party transactions and advances </B></td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%" align="left">&nbsp;</TD>
    <TD align="left" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="13%" align="center" style="border-top-width:3px;border-top-style:solid">Six
      months ended</TD>
    <TD width="2%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="13%" align="center" style="border-top-width:3px;border-top-style:solid">Year
      ended</TD>
    <TD width="2%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" align="left">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="13%">March 31,</TD>
    <TD align="center" width="2%">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="13%">September 30,</TD>
    <TD align="center" width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" align="left">&nbsp;</TD>
    <TD align="left" style="border-bottom-width:1px;border-bottom-style:solid"><B>Transactions</B></TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" align="left">&nbsp;</TD>
    <TD align="left" bgcolor="#E6EFFF">Hunter Dickinson Inc</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="13%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="13%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" align="left">&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Services rendered to
      the Company and its subsidiaries</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" align="left">&nbsp;</TD>
    <TD align="left" bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
      reimbursement of third party expenses (a)</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="13%" align="right" bgcolor="#E6EFFF">490,519</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="13%" align="right" bgcolor="#E6EFFF">253,859</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" align="left">&nbsp;</TD>
    <TD align="left">Hunter Dickinson Group Inc</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" align="left">&nbsp;</TD>
    <TD align="left" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consulting
      services rendered to the Company (b)</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="13%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">6,400</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="13%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">9,600</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" align="left">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" align="left">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" align="left">&nbsp;</TD>
    <TD align="left" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="13%" align="center" style="border-top-width:3px;border-top-style:solid">March 31,</TD>
    <TD width="2%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="13%" align="center" style="border-top-width:3px;border-top-style:solid">September 30,</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" align="left">&nbsp;</TD>
    <TD align="left" style="border-bottom-width:1px;border-bottom-style:solid"><B>Advances</B></TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" align="left">&nbsp;</TD>
    <TD align="left" bgcolor="#E6EFFF">Advances to (from) (c)</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="13%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="13%" align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" align="left">&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hunter Dickinson Inc.
      (a)</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="13%">(340,104</TD>
    <TD width="2%">)</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="13%">229,129</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" align="left">&nbsp;</TD>
    <TD align="left" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hunter
      Dickinson Group Inc. (b)</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">(3,424</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">(4,591</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
  </TR>
  <TR>
    <TD width="5%" align="left">&nbsp;</TD>
    <TD align="left" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances
      to (from) related parties</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="13%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(343,528</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="13%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">224,538</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
</TABLE>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%" valign="top">&nbsp;</TD>
    <TD valign="top" width="5%"><div align="justify">(a)</div></TD>
    <TD valign="top"><div align="justify">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. </div></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top" width="5%"><div align="justify">(b)</div></TD>
    <TD valign="top"><div align="justify">Hunter Dickinson Group Inc. is a private
        company with certain directors in common that provides consulting services
        to the Company at market rates. </div></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top" width="5%"><div align="justify">(c)</div></TD>
    <TD valign="top"><div align="justify">Advances are non-interest bearing and
        are due on demand.</div></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><B>12.</B></TD>
    <TD colspan="2" valign="top"><p align="justify"><B>Subsequent events</B></p>
      <p align="justify"> Subsequent to March 31, 2004</p></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top"><div align="justify">(a)</div></TD>
    <TD valign="top"><div align="justify">404,000 options were exercised for gross
        proceeds of $0.202 million (note 8(d)).</div></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top"><div align="justify">(b) </div></TD>
    <TD valign="top"><div align="justify">215,000 warrants were exercised for
        gross proceeds of $0.16 million (note 8(e)).</div></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top"><div align="justify">(c) </div></TD>
    <TD valign="top"><div align="justify">To facilitate the possible re-start
        of the Gibraltar copper mine, certain directors and officers of the Company
        personally guaranteed certain obligations to third parties on behalf of
        the Company to the extent of $4.5 million. In consideration for the guarantee,
        the Company issued 225,000 shares at $2.00 per share.</div></TD>
  </TR>
</TABLE>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>exhibit99-2.htm
<DESCRIPTION>MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE PERIOD ENDED MARCH 31, 2004
<TEXT>
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   <TITLE>Filed by Automated Filing Services Inc. (604) 609-0244 - Taseko Mines Limited - Exhibit 99.2</TITLE>


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      <B>TASEKO MINES LIMITED </B> <br> <B>QUARTERLY REPORT </B> <br> <B>MARCH
      31, 2004 </B> </td>
  </tr>
  <tr>
    <td align="center" valign="top" bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</td>
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<P align="center"><B>MANAGEMENT'S DISCUSSION AND ANALYSIS </B> </P>
<P align="justify"> 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 and two advanced exploration stage
  projects: the Prosperity gold-copper project and the Harmony gold project. The
  Company is currently focussing its activities on the Gibraltar project. </P>
<P align="justify"> The Gibraltar mine is a 35,000 tonnes per day mine and mill
  facility, which has had a successful 27-year operating history, and has been
  maintained on "care and maintenance" awaiting higher copper prices. On March
  25, 2004, the Company announced that it expects to resume operations at Gibraltar
  in the summer of 2004, with copper concentrate shipments to customers commencing
  by October. In preparation, Taseko, in concert with a potential joint venture
  partner, is currently finalizing negotiations for equipment purchases and contracts,
  including: </P>
<div align="justify">
  <UL>
    <LI>major mining equipment, in particular a new mining shovel that is critical
      for production planning, has been secured for delivery, ex-factory, in mid
      June;<BR>
      <BR>
    </LI>
    <LI>purchase and treatment terms for mine concentrates have been agreed to
      by a major buyer, and detailed contract documents are being finalized;<BR>
      <BR>
    </LI>
    <LI>operating and manpower alternatives are being considered and assessed
      for direct and/or joint venture operations; and<BR>
      <BR>
    </LI>
    <LI>transportation and materials handling arrangements for port and rail are
      well advanced, and within necessary lead times.</LI>
  </UL>
</div>
<P align="justify"> A 12-year mine plan is being used as the basis for re-start
  studies. The plan would be to mine 148 million tonnes over 12 years to produce
  an average of 70 million pounds of copper and 980,000 pounds of molybdenum per
  year in concentrate plus additional cathode copper from the 10 million pound
  per year solvent extraction electro-winning plant. </P>
<P align="justify"> As part of the planning for possible re-start, Roscoe Postle
  is completing a review and update of the estimate that will be included in a
  NI43-101 compliant technical report. </P>
<P align="justify"> <B>Other Properties</B> </P>
<P align="justify"> In December 2003, Taseko entered into a Farmout Agreement
  (the "Agreement") with Northern Dynasty Minerals Ltd. (&#147;Northern Dynasty&#148;)
  and Rockwell Ventures Inc. (&#147;Rockwell&#148;), each public companies with
  certain directors in common with the Company. Under the terms of the Agreement,
  Northern Dynasty and Rockwell were granted rights to earn joint venture working
  interests, subject to a maximum of $650,000 for Northern Dynasty and $200,000
  for Rockwell, on certain exploration properties located in the vicinity of the
  Gibraltar mine property. For a period of 150 days after Northern Dynasty and
  Rockwell have earned their working interests, Taseko has the right to purchase
  their interests at 110% in cash or in common shares of the Company (at Taseko's
  option). If Taseko elects to issue common shares, the common shares to be issued
  upon exercise will be valued at the weighted average ten-day trading price as
  traded on the TSX Venture Exchange. During the year ended December 31, 2003,
  Northern Dynasty had earned an interest in these properties to the extent of
  $650,000 and Rockwell to the extent of $200,000. In the first quarter of fiscal
  2004, Taseko exercised its right to purchase these interests by issuing 335,125
  common shares. These issuances are subject to regulatory approvals. </P>
<P align="justify"> <B>Market Trends </B> </P>
<P align="justify"> Gold prices improved significantly in 2003, averaging about
  US$364/oz for the year. The upward trend has continued in 2004, with the gold
  price averaging approximately US$402/oz in the year to date. The </P>

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    <td align="center" valign="top"><B>TASEKO MINES LIMITED </B> <br> <B>QUARTERLY
      REPORT </B> <br>
      <B>MARCH 31, 2004 </B> </td>
  </tr>
  <tr>
    <td align="center" valign="top" bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</td>
  </tr>
</table>
<P align="justify"> copper price also increased in 2003, averaging US$0.81/lb
  for the year. The copper price has averaged approximately US$1.26/lb in the
  first five months of 2004. </P>
<P align="justify"> <B>Financial Position</B> </P>
<P align="justify"> The financial statements of Taseko Mines Limited are prepared
  in accordance with Canadian generally accepted accounting principles ("GAAP").
  These consolidated financial statements include the accounts of Taseko, its
  wholly-owned subsidiary, Gibraltar Mines Ltd. (&#147;Gibraltar&#148;), its 70%
  owned subsidiary, Cuisson Lake Mines Ltd. and its interest in the Gibraltar
  Reclamation Trust Limited Partnership (&#147;GRT Partnership&#148;). All material
  intercompany accounts and transactions have been eliminated. </P>
<P align="justify"> 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 debenture is classified as equity rather than as a liability on
  the Company's balance sheet. </P>
<P align="justify"> Reclamation deposits totaling $17.4 million including interest,
  are to be used at a later date for reclamation purposes at Gibraltar, Prosperity
  and Harmony. </P>
<P align="justify"> The reclamation liability of $32.7 million 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 (subsequently renamed Continental Minerals Corporation).
  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&#146; equity on the balance sheet. </P>
<P align="justify"> In December 2002, the Company renounced approximately $2.3
  million in Canadian exploration expenditures (&#147;CEE&#148;) to flow-through
  investors. Accordingly, the Company was required to spend $2.3 million on qualified
  CEE by December 31, 2003. The Company completed the required expenditures by
  December 31, 2003. </P>
<P align="justify"> At March 31, 2004, Taseko had working capital of $29.8 million,
  as compared to $8.6 million at the end of the previous quarter, and $1.0 million
  at the end of the same period in 2003. The increase was a result of several
  financings during the period. These included: </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD valign="top" width="5%">(i)</TD>
    <TD valign="top"><div align="justify">3,900,000 units (each unit consisting
        of one common share and one common share purchase warrant exercisable
        at $2.25 for a two year period) were issued at $2.00 per unit for gross
        proceeds of $7.8 million;</div></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%">(ii)</TD>
    <TD valign="top"><div align="justify">2,289,000 options were exercised for
        gross proceeds of $1.15 million; and</div></TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top" width="5%">(iii)</TD>
    <TD valign="top"><div align="justify">7,967,742 shares were issued in exchange
        for all of the units of the GRT Partnership, allowing Taseko to access
        funds previously held by the Government of British Columbia as security
        for reclamation obligations in the amount of $16.7 million.</div></TD>
  </TR>
</TABLE>
<P align="justify"> The Company had 83,442,662 common shares outstanding at March
  31, 2004. </P>

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    <td align="center" valign="top"><B>TASEKO MINES LIMITED </B> <br> <B>QUARTERLY
      REPORT </B> <br>
      <B>MARCH 31, 2004 </B> </td>
  </tr>
  <tr>
    <td align="center" valign="top" bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</td>
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<P align="justify"> <B>Subsequent Events </B> </P>
<P align="justify"> Subsequent to March 31, 2004, 404,000 options and 215,000
  warrants were exercised for gross proceeds of $0.36 million. The proceeds of
  these financings will be used to fund operational activities of the Company
  and for general working capital purposes. </P>
<P align="justify"> <B>Results of Operations </B> </P>
<P align="justify"> The Company&#146;s loss for the second quarter of fiscal 2004
  was $7.0 million, as compared to $1.0 million loss in the same quarter in fiscal
  2003. The difference pertains to the acquisition premium paid for the Gibraltar
  Reclamation Trust Limited Partnership and general increase in activity due to
  the possible restart of the Gibraltar mine. This loss was mitigated by the amounts
  earned ($0.7 million) from contracting out the Company&#146;s assay lab at the
  Gibraltar site. </P>
<P align="justify"> Expenses in the second quarter of fiscal 2004 totaled $2.2
  million, if the acquisition premium is factored out, which is a decrease from
  $3.4 million spent in the previous quarter and $1.1 million spent in the same
  period in fiscal 2003. The main expense during the quarter was $0.98 million
  on exploration (a decrease from $2.1 million spent in previous quarter). Of
  the $975,538 in exploration expenditures, $952,674 was spent on Gibraltar, $12,120
  was spent on Prosperity and $10,744 was spent on Harmony. The expenditures include
  the cost of care and maintenance and exploratory drilling activities at Gibraltar,
  as well as routine ongoing costs for environmental monitoring, property assessment
  and claim fees, and mine planning studies for Prosperity and Harmony. The main
  exploration costs during the quarter was for site activities ($635,902) and
  mine planning ($295,455) at Gibraltar. </P>
<P align="justify"> Administrative costs are similar to the previous quarter with
  the exception of shareholder communications costs, which increased significantly
  due to marketing related to the planned re-start of the Gibraltar mine, and
  consulting fees, which decreased because no new financings were undertaken and
  completed during the second quarter. </P>
<P align="justify"> <B>Related Party Transactions </B> </P>
<P align="justify"> Hunter Dickinson Inc. (&#147;HDI&#148;) 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, 2004, Taseko and
  its subsidiaries paid $203,317 to HDI for services rendered as compared to $287,202
  in the previous quarter. The decrease was primarily due to the decreased drilling
  activities of the Company. </P>
<P align="justify"> <B>Limited Partnership Financing Structures </B> </P>
<P align="justify"> In order to facilitate financing for mine re-start, refinery
  feasibility and other exploration work at Gibraltar, Taseko has sponsored the
  formation of several limited partnerships. </P>
<P align="justify"> The Gibraltar Engineering Services Limited (&#147;GESL&#148;)
  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 (&#147;CESL&#148;)
  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. </P>
<P align="justify"> In January 2002, Taseko announced that it would acquire GESL
  Partnership, and acquired a 38% initial position in these assets, comprising
  primarily of technology rights, during fiscal 2002. In the third quarter </P>

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    <td align="center" valign="top"><B>TASEKO MINES LIMITED </B> <br> <B>QUARTERLY
      REPORT </B> <br>
      <B>MARCH 31, 2004 </B> </td>
  </tr>
  <tr>
    <td align="center" valign="top" bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</td>
  </tr>
</table>
<P align="justify"> of fiscal 2003, the Company acquired the remaining business
  of the GESL Partnership under a plan of arrangement. This transaction resulted
  in a reduction of certain liabilities by $3 million and consolidated the Company&#146;s
  100% ownership of the copper refinery engineering business held by the GESL
  Partnership. </P>
<P align="justify"> On December 31, 2003, the Company announced that Gibraltar
  Reclamation Trust Limited Partnership (the &#147;GRT Partnership&#148;), an
  arm&#146;s-length private Vancouver-based mining investment partnership, completed
  a financing to raise proceeds of $18.6 million to partially fund a possible
  re-start of the Gibraltar copper mine owned by a subsidiary of the Company,
  Gibraltar Mines Ltd. As part of the financing the GRT Partnership entered into
  a Joint Venture arrangement with Gibraltar Mines Ltd to proceed towards possibly
  restarting the Gibraltar open pit copper mine. Gibraltar Mines Ltd, as its contribution
  to the Joint Venture, will contribute the use of its mine assets and fund the
  start-up expenses of the Gibraltar mine, and the GRT Partnership funded a qualifying
  environmental trust (&#147;QET&#148;), which has allowed Gibraltar to access
  other funds previously held by the Government of British Columbia as a security
  for the mine&#146;s environmental reclamation obligations. Under the Joint Venture
  agreement, the GRT Partnership will be entitled to certain revenues or production
  share from the Gibraltar mine following the resumption of production. </P>
<P align="justify"> In related agreements, the Company obtained the exclusive
  right (the &#147;Purchase Option&#148;) to purchase the GRT Partnership for
  a fixed price of 130% of the total amount of the net financing proceeds, which
  are actually contributed by the GRT Partnership to the QET (approximately 90%
  of the financing raised). The Purchase Option is payable in common shares of
  the Company valued at the prevailing market price of the Company&#146;s shares
  at the time the Company decides to trigger the purchase, or the price can be
  paid in cash by the Company. The investors in the GRT Partnership also have
  the right to sell the GRT Partnership to the Company for the appraised value
  of the GRT Partnership, payable at the Company&#146;s election in cash or in
  shares of the Company valued at the higher of the then-prevailing market (less
  a stated discount), and the undiscounted market price of the Company&#146;s
  shares on December 31, 2003 (Cdn$2.15). The fixed price Purchase Option takes
  general precedence over the right to sell, and both of these purchase/put rights
  are only in effect during 2004 with Taseko&#146;s call right in effect from
  March 1 and the GRT Partnership&#146;s call right in effect from April 1. Any
  shares of the Company issued to acquire the GRT Partnership will be subject
  to applicable Canadian hold periods, ending no later than April 30, 2004 and
  will not be registered or eligible for resale in the United States. To facilitate
  the start-up transactions, certain Directors and Officers of the Company have
  personally guaranteed certain obligations to third parties on behalf of the
  Company to the extent of $4.5 million inclusive of a pledge of a cash deposit
  of $2 million. In consideration of the guarantee, subject to TSX Venture Exchange
  acceptance, they will receive compensation equal to 10% of the amount guaranteed,
  payable in shares of the Company. </P>
<P align="justify"> If the GRT Partnership elected to exercise these put rights
  and sell the GRT Partnership to the Company, the Company would be obliged to
  issue, for example, approximately 8.7 million shares valued at Cdn$2.15 each,
  assuming the value of the GRT Partnership is basically the same at the time
  of the put as the cash that was invested in it within the previous year. Hunter
  Dickinson Group Master Trust (&#147;HDG MT&#148;), a non-arm&#146;s length party
  to the Company, participated as an investor in the GRT Partnership as to $1,300,000.
  Hunter Dickinson Group Master Trust is a trust for certain families of persons
  who are directors of the Company and other companies associated with it (excluding
  Messrs. Milner and Coughlan). </P>
<P align="justify"> In March 2004, the Company issued 7,967,742 common shares
  (of which 556,226 were issued to HDG MT) at $2.79 per share for total consideration
  of $22.23 million to acquire all of the units of the GRT Partnership. </P>

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    <td align="center" valign="top"><B>TASEKO MINES LIMITED </B> <br> <B>QUARTERLY
      REPORT </B> <br>
      <B>MARCH 31, 2004 </B> </td>
  </tr>
  <tr>
    <td align="center" valign="top" bordercolor="#000000" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</td>
  </tr>
</table>
<br>
<table style="font-size: 8pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="center" valign="top"><B>Cautionary Note to US Investors Concerning
      Estimates of Inferred Resources</B> </td>
  </tr>
  <tr>
    <td valign="top"><P align="justify">This section may use the term &#147;inferred
        resources.&#148; We advise U.S. investors that while this term is recognized
        and required by Canadian regulators, the U.S. Securities and Exchange
        Commission does not recognize it. &#147;Inferred resources&#148; have
        a great amount of uncertainty as to their existence, and great uncertainty
        as to their economic and legal feasibility. It cannot be assumed that
        all or any part of an Inferred Mineral Resource will even be upgraded
        to a higher category. Under Canadian rules, estimates of Inferred Mineral
        Resources may not form the basis of feasibility or other economic studies.
        <B>U.S. investors are cautioned not to assume that part or all of an inferred
        resource exists, or is economically or legally mineable.</B> </P>
      <P align="justify"> This discussion includes certain statements that may
        be deemed "forward-looking statements". All statements in this discussion,
        other than statements of historical facts, that address future production,
        reserve potential, exploration drilling, exploitation activities and events
        or developments that the Company expects are forward-looking statements.
        Although the Company believes the expectations expressed in such forward-looking
        statements are based on reasonable assumptions, such statements are not
        guarantees of future performance and actual results or developments may
        differ materially from those in the forward-looking statements. Factors
        that could cause actual results to differ materially from those in forward-looking
        statements include market prices, exploitation and exploration successes,
        continued availability of capital and financing and general economic,
        market or business conditions. Investors are cautioned that any such statements
        are not guarantees of future performance and that actual results or developments
        may differ materially from those projected in the forward-looking statements.
      </P>

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