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<SEC-DOCUMENT>0001062993-04-001378.txt : 20040901
<SEC-HEADER>0001062993-04-001378.hdr.sgml : 20040901
<ACCEPTANCE-DATETIME>20040901150318
ACCESSION NUMBER:		0001062993-04-001378
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20040630
FILED AS OF DATE:		20040901
DATE AS OF CHANGE:		20040901

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:		041010940

	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">Filed as at July 26, 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;">
<!--$$/page=-->
<A name="page_2"></a>
<p align="center"><b>SUBMITTED HEREWITH</b></p>
<p align="left"><u>Exhibits</u></p>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr bgcolor="#EEEEEE">
    <td width="5%" valign="top">&nbsp;</td>
    <td width="5%" valign="top"><a href="exhibit99-1.htm">99.1</a></td>
    <td><a href="exhibit99-1.htm">Third Quarter Financial Statements for the Period
      Ended June 30, 2004</a></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td></td>
  </tr>
  <tr bgcolor="#EEEEEE">
    <td valign="top">&nbsp;</td>
    <td valign="top"><a href="exhibit99-2.htm">99.2</a></td>
    <td><a href="exhibit99-2.htm">Management's Discussion and Analysis for the
      Period Ended June 30, 2004</a></td>
  </tr>
</table>
<p>&nbsp;</p>
<hr noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<!--$$/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: July 26, 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>THIRD QUARTER FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2004
<TEXT>
<!DOCTYPE HTML PUBLIC "financials">


<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;">
<A name="page_1"></A>
<hr noshade align="center" width="100%" size=3 color="black">
<P align="center"> TASEKO MINES LIMITED </P>
<P align="center">
CONSOLIDATED FINANCIAL STATEMENTS
</P>
<P align="center">
NINE MONTHS ENDED JUNE 30, 2004
</P>
<P align="center">
(Expressed in Canadian Dollars)
</P>
<P align="center">
(Unaudited)
</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;">
<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%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" style="border-top-width:3px;border-top-style:solid">June 30,</TD>
    <TD width="2%" align="right" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" 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>
  </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="13%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" align="right" 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="13%" align="right" 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>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="center">&nbsp;</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="center">&nbsp;</TD>
    <TD width="2%" align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Assets</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Current assets</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Cash and equivalents</TD>
    <TD width="1%">$</TD>
    <TD align="right" width="13%">19,319,636</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">$</TD>
    <TD align="right" width="13%">2,424,221</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Amounts receivable</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">349,210</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">1,049,093</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Advances to related parties (note 11)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">456,927</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">224,538</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Supplies inventory</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">2,313,664</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">2,278,096</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;Prepaid expenses</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">64,548</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="13%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">134,207</TD>
    <TD width="2%" 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="13%" align="right">22,503,985</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">6,110,155</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Property, plant and equipment</B> (note 5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">9,071,464</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">9,554,186</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD><B>Deposits</B> (note 6(a))</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">10,833,626</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">-</TD>
    <TD width="2%">&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="13%" align="right">17,548,485</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">16,757,274</TD>
    <TD width="2%">&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="13%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">28,813,296</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="13%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">28,813,296</TD>
    <TD width="2%" 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%" style="border-bottom-width:2px;border-bottom-style:solid"><B>$</B></TD>
    <TD width="13%" align="right" style="border-bottom-width:2px;border-bottom-style:solid"><B>88,770,856</B></TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:2px;border-bottom-style:solid"><B>$</B></TD>
    <TD width="13%" align="right" style="border-bottom-width:2px;border-bottom-style:solid"><B>61,234,911</B></TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Liabilities and Shareholders' Equity</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Current liabilities</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Operating line of credit (note 7)</TD>
    <TD width="1%">$</TD>
    <TD align="right" width="13%">1,509,289</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">$</TD>
    <TD align="right" width="13%">1,993,396</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&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="13%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2,573,325</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="13%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">1,857,740</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">4,082,614</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">3,851,136</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid"><B>Reclamation liability</B> (note 5)</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">32,700,000</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="13%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">32,700,000</TD>
    <TD width="2%" 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="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&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="13%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">36,782,614</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="13%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">36,551,136</TD>
    <TD width="2%" 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="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD><B>Shareholders' equity</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Share capital (note 8)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">140,483,399</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">99,446,319</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Convertible debenture (note 8(c))</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">20,331,794</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">19,599,520</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Tracking preferred shares (note 4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">26,641,948</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">26,641,948</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Contributed surplus (note 8(f))</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">2,963,410</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">65,344</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;Deficit</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(138,432,309</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="13%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(121,069,356</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">51,988,242</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">24,683,775</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Nature of operations (note 1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Commitments (note 6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <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="13%" 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="13%" 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>
  </TR>
  <TR>
    <TD style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:2px;border-bottom-style:solid"><B>$</B></TD>
    <TD width="13%" align="right" style="border-bottom-width:2px;border-bottom-style:solid"><B>88,770,856</B></TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:2px;border-bottom-style:solid"><B>$</B></TD>
    <TD width="13%" align="right" style="border-bottom-width:2px;border-bottom-style:solid"><B>61,234,911</B></TD>
    <TD width="2%" 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 width="50%"><I>/s/ Ronald W. Thiessen</I></TD>
    <TD width="50%"><I>/s/ Jeffrey R. Mason</I></TD>
</TR>
<TR>
    <TD width="50%">&nbsp; </TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<TR>
    <TD width="50%">Ronald W. Thiessen</TD>
    <TD width="50%">Jeffrey R. Mason</TD>
</TR>
<TR>
    <TD width="50%">Director</TD>
    <TD width="50%">Director</TD>
</TR>
</TABLE>

<br>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<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="right" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">Three months
      ended June 30,</TD>
    <TD width="2%" align="right" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD colspan="4" align="right" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">Nine months
      ended June 30,</TD>
    <TD width="2%" align="center" 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="right" 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="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" align="right" 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="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" align="right" 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="12%" align="right" 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>&nbsp;</TD>
    <TD width="1%" align="center">&nbsp;</TD>
    <TD width="12%" align="center">&nbsp;</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD width="1%" align="center">&nbsp;</TD>
    <TD width="12%" align="center">&nbsp;</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD width="1%" align="center">&nbsp;</TD>
    <TD width="12%" align="center">&nbsp;</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD width="1%" align="center">&nbsp;</TD>
    <TD width="12%" align="center">&nbsp;</TD>
    <TD width="2%" align="center">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Expenses</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conference and travel</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">19,062</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">12,492</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">81,382</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">38,949</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consulting</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">94,875</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">40,309</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">195,340</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">147,986</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporation taxes</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">20,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(44,911</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">31,168</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(25,173</TD>
    <TD width="2%">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">181,434</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">176,617</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">541,819</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">531,611</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exploration (schedule)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">3,939,477</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">449,458</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">7,045,561</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">1,422,228</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and finance charges</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">452,616</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">25,952</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">481,156</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">77,729</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Laboratory and other services</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(732,054</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal, accounting and audit</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">92,940</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">53,960</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">132,671</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">128,830</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Office and administration</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">199,224</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">78,827</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">510,938</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">194,273</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premium paid for acquisition of Gibraltar
      Reclamation</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">5,095,249</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property investigation</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">37,071</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">141,063</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">47,805</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Refinery project</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">500,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">500,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholder communication</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">18,694</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">4,223</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">623,200</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">66,854</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation (note 8(d))</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">1,526,084</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">3,137,066</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trust and filing</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">13,842</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">8,421</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">35,478</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">19,863</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">6,558,248</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">1,342,419</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">17,320,037</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">3,150,955</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;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%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD><B>Other items</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Interest and other income</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">228,670</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">353,537</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">689,358</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">591,669</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Gain on sale of property, plant and equipment</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">131,638</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">228,670</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">353,537</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">689,358</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">723,307</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <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">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(6,329,578</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(988,882</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">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(16,630,679</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(2,427,648</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap style="border-bottom-width:2px;border-bottom-style:solid"><B>Basic and diluted loss per common share
      (notes 3 and 8(c)) &nbsp;</B></TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(0.08</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(0.02</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">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(0.24</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(0.07</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD><B>Weighted average number of</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&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="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">84,210,353</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">53,635,474</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">71,383,512</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">44,660,250</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD><B>Consolidated Statements of Deficit</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>(Expressed in Canadian Dollars)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>(Unaudited)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD 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%" 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="1%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" 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="1%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" 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="1%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" 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>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD colspan=4 align="right" style="border-bottom-width:1px;border-bottom-style:solid">Three months ended June
      30,</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD colspan=4 align="right" style="border-bottom-width:1px;border-bottom-style:solid">Nine months ended June
      30,</TD>
    <TD width="2%">&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="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>
    <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">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>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Deficit, beginning of period</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>As original reported</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">(131,858,640</TD>
    <TD width="2%">)</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">(116,398,089</TD>
    <TD width="2%">)</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">(121,069,356</TD>
    <TD width="2%">)</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">(114,959,323</TD>
    <TD width="2%">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>To adjust for the accounting for the convertible</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&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="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">-</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">(2,154,500</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="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">-</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">(1,710,697</TD>
    <TD width="2%" 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="12%" align="right">(131,858,640</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">(118,552,589</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">(121,069,356</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">(116,670,020</TD>
    <TD width="2%">)</TD>
  </TR>
  <TR>
    <TD>Loss for the period</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(6,329,578</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(988,882</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(16,630,679</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(2,427,648</TD>
    <TD width="2%">)</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="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(244,091</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="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(221,900</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="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(732,274</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="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(665,703</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&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">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(138,432,309</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(119,763,371</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">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(138,432,309</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">)</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">(119,763,371</TD>
    <TD width="2%" 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;">
<A name="page_4"></A>
<P> <B><font size="4">TASEKO MINES LIMITED</font><br>
  </B><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="right" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">Three months
      ended June 30,</TD>
    <TD width="2%" align="right" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD colspan=4 align="right" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">Nine months
      ended June 30,</TD>
    <TD width="2%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <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="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" align="right" 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="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" align="right" 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="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" align="right" 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="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>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Operating activities</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss for the period</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">(6,329,578</TD>
    <TD width="2%">)</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">(988,882</TD>
    <TD width="2%">)</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">(16,630,679</TD>
    <TD width="2%">)</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">(2,427,648</TD>
    <TD width="2%">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Items not involving cash</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest
      on reclamation deposits</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(106,989</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(339,552</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(389,900</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(557,343</TD>
    <TD width="2%">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">181,434</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">176,617</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">541,819</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">531,611</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">1,526,084</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">69,355</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">3,137,066</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">84,157</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write down on dissolution
      of subsidiaries</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">13,253</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">13,253</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of
      property, plant and equipment</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(131,638</TD>
    <TD width="2%">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition premium
      paid for remaining business</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
      GESL Partnership</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">500,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">500,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition premium
      paid for Gibraltar Reclamation</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">5,095,249</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares issued for
      loan guarantee</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">450,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">450,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">-</TD>
    <TD width="2%">&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="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&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="12%" align="right">57,014</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">(262,128</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">699,883</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">(168,056</TD>
    <TD width="2%">)</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="12%">(20,247</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">10,003</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(35,568</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(623</TD>
    <TD width="2%">)</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="12%" align="right">5,349</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">3,102</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">69,659</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">79,908</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts
      payable and accrued liabilities</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">1,505,315</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(88,106</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">715,585</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(75,735</TD>
    <TD width="2%">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">(2,731,618</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">(906,338</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">(6,346,886</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">(2,152,114</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">)</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Investing activities</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Deposit on property, plant and equipment</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(8,472,457</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(10,833,626</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Purchase of property, plant and equipment</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">(30,432</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">(59,097</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">-</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap>&nbsp;&nbsp;&nbsp;Proceeds received on sale of property, plant
      and equipment</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">160,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Reclamation deposits</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">(401,311</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">2,500,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">(8,502,889</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">-</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">(11,294,034</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">2,660,000</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;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%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD><B>Financing activities</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Bank operating loan</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">1,509,289</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">6,671</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">(484,107</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">(3,380</TD>
    <TD width="2%">)</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Advances from related parties</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(800,455</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(2,884,833</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(232,389</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(6,353,734</TD>
    <TD width="2%">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Advances from Gibraltar Engineering Services</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limited Partnership</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">3,000,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">3,000,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Advances from Gibraltar Reclamation Trust</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limited Partnership</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">17,097,792</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Common shares issued for cash, net of issue costs</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">1,417,548</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">(8,361</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">18,155,039</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">4,045,497</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">2,126,382</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">113,477</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">34,536,335</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">688,383</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;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%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD><B>Increase in cash and equivalents</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(9,108,125</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">(792,861</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">16,895,415</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">1,196,269</TD>
    <TD width="2%">&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="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">28,427,761</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">2,028,234</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">2,424,221</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">39,104</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&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">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">19,319,636</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">1,235,373</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">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">19,319,636</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">1,235,373</TD>
    <TD width="2%" 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;">
<A name="page_5"></A>
<P> <B><font size="4">TASEKO MINES LIMITED</font><br>
  </B><B>Consolidated Schedules of Exploration Expenses<br>
  </B>(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 width="12%" align="center" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" align="center" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-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 width="12%" align="center" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">Property</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%" align="center" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="center" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" 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="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid"><B>Nine months ended June 30, 2004</B></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">Prosperity</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="center" style="border-bottom-width:1px;border-bottom-style:solid">Gibraltar</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="center" style="border-bottom-width:1px;border-bottom-style:solid">Harmony</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="center" style="border-bottom-width:1px;border-bottom-style:solid">Total</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Exploration expenses</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Assays and analysis</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">14,384</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">829,119</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">236</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">843,739</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Drilling</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">1,332,596</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">1,332,596</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Equipment rentals</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">3,493</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">26,198</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">29,691</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Geological</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">3,823</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">219,830</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">2,480</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">226,133</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Mine planning</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">19,176</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">411,103</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">22,370</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">452,649</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;Site activities</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">2,403</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">4,158,350</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">-</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">4,160,753</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Exploration expenses during the period</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">43,279</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">6,977,196</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">25,086</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">7,045,561</TD>
    <TD width="2%">&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="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">41,576,410</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">10,902,295</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">27,317</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">52,506,022</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&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">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">41,619,689</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">17,879,491</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">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">52,403</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">59,551,583</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&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 width="12%" align="center" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" align="center" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-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 width="12%" 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="center" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-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 width="12%" align="center" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</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 style="border-bottom-width:1px;border-bottom-style:solid"><B>Nine months ended June 30, 2003</B></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">Prosperity</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">Gibraltar</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">Harmony</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">Total</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD><B>Exploration expenses</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Assays and analysis</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">13,567</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">3,177</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">16,744</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Equipment rentals</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">(89</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">(89</TD>
    <TD width="2%">)</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Claim staking</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">500</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">-</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">500</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;&nbsp;&nbsp;Geological</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">3,965</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">43,213</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">486</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">47,664</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;Mine planning</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">45,352</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">189,165</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">10,940</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">245,457</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;Site activities</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">165</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">1,105,831</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">5,956</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">1,111,952</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Exploration expenses during the period</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">62,960</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">1,338,709</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">20,559</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="right">1,422,228</TD>
    <TD width="2%">&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="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">41,487,910</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">8,988,583</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">-</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">50,476,493</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&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">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">41,550,870</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">10,327,292</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">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">20,559</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">51,898,721</TD>
    <TD width="2%" 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;">
<A name="page_1"></A>
<P style="border-bottom-width:1px;border-bottom-style:solid"> <B><font size="4">TASEKO MINES LIMITED</font></B><br>
  Notes to Consolidated Financial Statements <br>
  For the period ended June 30, 2004 <br>
  (Expressed in Canadian Dollars) <br>
  (Unaudited) <br>
  &nbsp;</P>
<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"><B>1.</B></td>
    <td><P><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>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><B>2.</B>&nbsp;</td>
    <td><P><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>
<P align="right">page 6 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_2"></A>
<P style="border-bottom-width:1px;border-bottom-style:solid"> <B><font size="4">TASEKO MINES LIMITED</font></B><br>
  Notes to Consolidated Financial Statements <br>
  For the period ended June 30, 2004 <br>
  (Expressed in Canadian Dollars) <br>
  (Unaudited) <br>
  &nbsp;</P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><B>3.</B>&nbsp;</td>
    <td><B>Significant accounting policies</B> </td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><I>(a)</I></td>
    <td><P><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>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><I>(b) </I></td>
    <td><P><I>Supplies inventory </I> </P>
      <P> 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>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><I>(c)</I></td>
    <td><P><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>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><I>(d)</I></td>
    <td><P><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>
<P align="right">page 7 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_3"></A>
<P style="border-bottom-width:1px;border-bottom-style:solid"> <B><font size="4">TASEKO MINES LIMITED</font></B><br>
  Notes to Consolidated Financial Statements <br>
  For the period ended June 30, 2004 <br>
  (Expressed in Canadian Dollars) <br>
  (Unaudited) <br>
  &nbsp;</P>
<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">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>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><I>(e)</I></td>
    <td><P><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>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><I>(f)</I></td>
    <td><P><I> Share-based compensation</I> (see also note 3(g))<I> </I> </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>
<P align="right"> page 8</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_4"></A>
<P style="border-bottom-width:1px;border-bottom-style:solid"> <B><font size="4">TASEKO MINES LIMITED</font></B><br>
  Notes to Consolidated Financial Statements <br>
  For the period ended June 30, 2004 <br>
  (Expressed in Canadian Dollars) <br>
  (Unaudited) <br>
  &nbsp;</P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><I>(g) </I></td>
    <td><P><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>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><I>(h)</I></td>
    <td><P><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 differences
        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>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><I>(i)</I></td>
    <td><P><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>
<P align="right">page 9 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_5"></A>
<P style="border-bottom-width:1px;border-bottom-style:solid"> <B><font size="4">TASEKO MINES LIMITED</font></B><br>
  Notes to Consolidated Financial Statements <br>
  For the period ended June 30, 2004 <br>
  (Expressed in Canadian Dollars) <br>
  (Unaudited) <br>
  &nbsp;</P>
<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 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>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><I>(j)</I></td>
    <td><P><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>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><I>(k)</I></td>
    <td><P><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>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><I>(l)</I></td>
    <td><P><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>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><I>(m)</I></td>
    <td><P><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>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><B>4.</B>&nbsp;</td>
    <td><P><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>
<P align="right"> page 10</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_6"></A>
<P style="border-bottom-width:1px;border-bottom-style:solid"> <B><font size="4">TASEKO MINES LIMITED</font></B><br>
  Notes to Consolidated Financial Statements <br>
  For the period ended June 30, 2004 <br>
  (Expressed in Canadian Dollars) <br>
  (Unaudited) <br>
  &nbsp;</P>
<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;</TD>
    <TD><B>Assets acquired</B></TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="13%"><B>Amount</B></TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;Property and equipment</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="13%" align="right" bgcolor="#E6EFFF">8,488</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;Reclamation deposit</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">175,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;Mineral property interests</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">28,811,296</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="13%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">28,994,784</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF"><B>Consideration given</B></TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="13%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;Cash</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="13%">2,230,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;12,483,916 tracking preferred shares
      of Gibraltar</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="13%" align="right" bgcolor="#E6EFFF">26,641,948</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;114,800 common shares of the Company to a dissenting
      shareholder</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">122,836</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&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">28,994,784</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 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>
<P align="right">page 11 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_7"></A>
<P style="border-bottom-width:1px;border-bottom-style:solid"> <B><font size="4">TASEKO MINES LIMITED</font></B><br>
  Notes to Consolidated Financial Statements <br>
  For the period ended June 30, 2004 <br>
  (Expressed in Canadian Dollars) <br>
  (Unaudited) <br>
  &nbsp;</P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><B>5.</B></td>
    <td><B>Property, plant and equipment </B></td>
  </tr>
</table>
<br>
<TABLE style="font-size:9pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD colspan=8 align="center" style="border-bottom-width:1px;border-bottom-style:solid">June 30, 2004</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD colspan=8 align="center" style="border-bottom-width:1px;border-bottom-style:solid">September 30, 2003</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD><B>Prosperity Property</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD align="right" width="1%">&nbsp;</TD>
    <TD align="right" width="10%">Accumulated</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD align="right" width="10%">Net book</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="10%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD align="right" width="1%">&nbsp;</TD>
    <TD align="right" width="10%">Accumulated</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD align="right" width="10%">Net book</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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="right" 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="right" 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">value</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" align="right">&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">Cost</TD>
    <TD width="2%" align="right" 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="right" 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">value</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">10,548</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">1,331</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">11,879</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">10,162</TD>
    <TD width="2%" 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%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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 align="right" width="10%" style="border-bottom-width:1px;border-bottom-style:solid">15,172</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 align="right" width="10%" style="border-bottom-width:1px;border-bottom-style:solid">14,165</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 align="right" width="10%" style="border-bottom-width:1px;border-bottom-style:solid">1,007</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD align="right" width="10%" style="border-bottom-width:1px;border-bottom-style:solid">15,172</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 align="right" width="10%" style="border-bottom-width:1px;border-bottom-style:solid">13,871</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 align="right" width="10%" style="border-bottom-width:1px;border-bottom-style:solid">1,301</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD nowrap bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">Total Prosperity Property
      &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%" 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">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">24,713</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">2,338</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">27,051</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">24,033</TD>
    <TD width="2%" 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%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD style="border-top-width:1px;border-top-style:solid"><B>Gibraltar Mine</B></TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" align="right" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-top-width:1px;border-top-style:solid">Accumulated</TD>
    <TD width="2%" align="right" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-top-width:1px;border-top-style:solid">Net book</TD>
    <TD width="2%" align="right" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" align="right" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-top-width:1px;border-top-style:solid">Accumulated</TD>
    <TD width="2%" align="right" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="10%" align="right" style="border-top-width:1px;border-top-style:solid">Net book</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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="right" 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="right" 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">value</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" align="right">&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">Cost</TD>
    <TD width="2%" align="right" 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="right" 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">value</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD 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%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">473,079</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">5,458,501</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">5,931,580</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">416,225</TD>
    <TD width="2%" 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%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>Mine equipment</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">5,589,193</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">2,423,997</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">3,165,196</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">5,589,193</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">2,063,493</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">3,525,700</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">635,153</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">340,340</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">962,061</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">541,935</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" align="right" bgcolor="#E6EFFF">420,126</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>Vehicles</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">198,519</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">108,725</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">89,794</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">152,854</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">90,680</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="10%">62,174</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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%" 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">85,867</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="10%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">15,295</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" 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%" 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%" 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%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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">12,795,947</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">$</TD>
    <TD width="10%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">3,726,821</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">9,069,126</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">12,736,850</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">3,185,682</TD>
    <TD width="2%" 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">$</TD>
    <TD width="10%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">9,551,168</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD><B>Total property, plant</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD style="border-bottom-width:2px;border-bottom-style:solid"><B>and equipment</B></TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">12,822,998</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">$</TD>
    <TD width="10%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">3,751,534</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">9,071,464</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">12,763,901</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="10%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">3,209,715</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="10%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">9,554,186</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><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 $17.5
        million at June 30, 2004), provide the Government of British Columbia
        with the required security for the estimated reclamation liability on
        the Gibraltar mine of $32.7 million. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><B>6.</B>&nbsp;</td>
    <td><B>Mineral property interests </B></td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" style="border-top-width:3px;border-top-style:solid">June 30,</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" style="border-top-width:3px;border-top-style:solid">September 30,</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Gibraltar Copper Mine (note 6(a))</TD>
    <TD width="1%" bgcolor="#E6EFFF">$</TD>
    <TD width="13%" align="right" bgcolor="#E6EFFF">1,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">$</TD>
    <TD width="13%" align="right" bgcolor="#E6EFFF">1,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>Prosperity Gold-Copper Property (note 6(b))</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">1,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">1,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">Harmony Gold Property (note 6(c))</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">28,811,296</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">28,811,296</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:2px;border-bottom-style:solid"><b>$</b></TD>
    <TD width="13%" 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"><b>$</b></TD>
    <TD width="13%" 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"><I>(a)</I></td>
    <td><P><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 June 30, 2004. </P></td>
  </tr>
</table>
<P align="right">page 12</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_8"></A>
<P style="border-bottom-width:1px;border-bottom-style:solid"> <B><font size="4">TASEKO MINES LIMITED</font></B><br>
  Notes to Consolidated Financial Statements <br>
  For the period ended June 30, 2004 <br>
  (Expressed in Canadian Dollars) <br>
  (Unaudited) <br>
  &nbsp;</P>
<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>
<P align="right">page 13 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_9"></A>
<P style="border-bottom-width:1px;border-bottom-style:solid"> <B><font size="4">TASEKO MINES LIMITED</font></B><br>
  Notes to Consolidated Financial Statements <br>
  For the period ended June 30, 2004 <br>
  (Expressed in Canadian Dollars) <br>
  (Unaudited) <br>
  &nbsp;</P>
<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">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$6.4 million ($8.5 million) has been paid as a deposit. Subsequent to
        June 30, 2004, the Company paid an additional US$2.7 million ($3.7 million).
        In May 2004, the Company entered into an agreement to purchase five mine
        haul trucks for approximately US$8.2 million, of which US$1.6 million
        ($2.3 million) has been paid as a deposit. </P>
      <P align="justify"> In June 2004, the Company signed a Framework Agreement
        to create a Joint Venture (the &#147;JV&#148;) with Ledcor CMI Ltd. (&#147;Ledcor&#148;),
        whereby Ledcor will commission and operate the Gibraltar Mine. Under the
        proposed terms, Ledcor will be the operator, with primary responsibility
        for commissioning and operating the mine in addition to other aspects
        of mine operations, including drilling, blasting, loading and hauling
        of ore and waste as well as the recruitment of personnel and maintenance
        of equipment and facilities. Ledcor will contribute to the JV its own
        mine equipment and purchase or lease additional equipment as necessary.
        Taseko will contribute to the JV certain mineral rights and usage rights
        to the existing mill and equipment. </P></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><I>(b)</I></td>
    <td><P><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 </P></td>
  </tr>
</table>
<P align="right">page 14 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_10"></A>
<P style="border-bottom-width:1px;border-bottom-style:solid"> <B><font size="4">TASEKO MINES LIMITED</font></B><br>
  Notes to Consolidated Financial Statements <br>
  For the period ended June 30, 2004 <br>
  (Expressed in Canadian Dollars) <br>
  (Unaudited) <br>
  &nbsp;</P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td>Company's intention to defer significant work on the project until a sustained
      recovery of metal prices had occurred. </td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><I>(c)</I></td>
    <td><P><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 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 align="justify"> Under the terms of an Arrangement Agreement (note 4),
        the Company acquired a 100% interest in the Harmony Gold Property in fiscal
        2002. </P></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><I>(d)</I></td>
    <td><P><I> Acquisition agreements </I> </P>
      <P align="justify"> 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 align="justify"> 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 </P></td>
  </tr>
</table>
<P align="right">page 15 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_11"></A>
<P style="border-bottom-width:1px;border-bottom-style:solid"> <B><font size="4">TASEKO MINES LIMITED</font></B><br>
  Notes to Consolidated Financial Statements <br>
  For the period ended June 30, 2004 <br>
  (Expressed in Canadian Dollars) <br>
  (Unaudited) <br>
  &nbsp;</P>
<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">consideration of $22.23 million to acquire all of
        the units of the GRT Partnership. In conjunction with this agreement,
        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>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><I>(e)</I></td>
    <td><P><I> Farmout Agreement </I> </P>
      <P align="justify"> 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 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 had 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 elected to issue common shares, the
        common shares to be issued upon exercise were to have been 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. 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. </P></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><B>7.</B>&nbsp;<B></B></td>
    <td><P><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. </P></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><B>8.</B>&nbsp;</td>
    <td><B>Share capital </B></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><I>(a)</I></td>
    <td><P><I> Authorized </I> </P>
      <P> Authorized share capital of the Company consists of 200,000,000 common
        shares without par value. </P>
      <P align="justify"> At the Company&#146;s Annual and Extraordinary General
        Meeting held on February 2, 2004, an increase in authorized share capital
        from 100,000,000 to 200,000,000 was approved by shareholders. </P></td>
  </tr>
</table>
<P align="right"> page 16 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_12"></A>
<P style="border-bottom-width:1px;border-bottom-style:solid"> <B><font size="4">TASEKO MINES LIMITED</font></B><br>
  Notes to Consolidated Financial Statements <br>
  For the period ended June 30, 2004 <br>
  (Expressed in Canadian Dollars) <br>
  (Unaudited) <br>
  &nbsp;</P>
<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%">&nbsp;</TD>
    <TD style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="14%" align="right" style="border-top-width:3px;border-top-style:solid">Number</TD>
    <TD width="2%" align="right" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="right" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="14%" 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>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid"><B>Common shares</B></TD>
    <TD width="14%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">of Shares</TD>
    <TD width="2%" align="right" 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="14%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">Amount</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD><B>Balance, September 30, 2002</B></TD>
    <TD align="right" width="14%"><B>33,921,663</B></TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="1%"><B>$</B></TD>
    <TD align="right" width="14%"><B>91,889,200</B></TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Issued during the year</TD>
    <TD width="14%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="14%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share purchase options at $0.50 per share</TD>
    <TD align="right" width="14%">40,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="14%">20,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Private placement at $0.30
      per share, net of issue costs</TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF">2,185,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF">645,245</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Private placement at $0.30 per share, net
      of issue costs</TD>
    <TD align="right" width="14%">4,470,001</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="14%">1,253,654</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Private placement at $0.40
      per share, net of issue costs</TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF">5,817,500</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF">2,146,666</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For acquisition of the remaining business
      of the GESL Partnership,</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;net
      of issue costs (note 6(d))</TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">7,446,809</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">3,491,554</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD><B>Balance, September 30, 2003</B></TD>
    <TD align="right" width="14%"><B>53,880,973</B></TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="1%"><B>$</B></TD>
    <TD align="right" width="14%"><B>99,446,319</B></TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Issued during the period</TD>
    <TD width="14%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="14%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share purchase options at $0.50 per share</TD>
    <TD align="right" width="14%">2,488,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="14%">1,244,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share purchase options
      at $0.40 per share</TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF">152,500</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF">61,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share purchase options at $0.25 per share</TD>
    <TD align="right" width="14%">75,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="14%">18,750</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share purchase options
      at $0.55 per share</TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF">355,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF">195,250</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value of stock options allocated to
      shares issued on exercise</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="14%">239,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share purchase warrants
      at $0.58 per share</TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF">276,596</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF">160,426</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share purchase warrants at $0.55 per share</TD>
    <TD align="right" width="14%">414,850</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="14%">228,168</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share purchase warrants
      at $0.40 per share</TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF">302,250</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF">120,900</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share purchase warrants at $0.50 per share</TD>
    <TD align="right" width="14%">7,393,751</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="14%">3,696,876</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share purchase warrants
      at $0.75 per share</TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF">346,666</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF">260,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Private placement at $0.60 per share, net
      of issue costs</TD>
    <TD align="right" width="14%">6,700,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="14%">3,910,728</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Private placement at $2.00
      per share, net of issue costs</TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF">3,900,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF">7,323,943</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For acquisition of Gibraltar Reclamation
      Trust Limited Partnership</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&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="14%" align="right" bgcolor="#E6EFFF">7,967,742</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF">22,193,039</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan guarantee at $2.00 per share (note
      6(d))</TD>
    <TD align="right" width="14%">225,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="14%">450,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Farmout
      agreement at $2.79 per share (note 6(e))</TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">335,125</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">935,000</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD style="border-bottom-width:2px;border-bottom-style:solid"><B>Balance, June 30, 2004</B></TD>
    <TD width="14%" align="right" style="border-bottom-width:2px;border-bottom-style:solid"><B>84,813,453</B></TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid"><B>$</B></TD>
    <TD width="14%" align="right" style="border-bottom-width:2px;border-bottom-style:solid"><B>140,483,399</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"><I>(c)</I></td>
    <td><P><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 </P></td>
  </tr>
</table>
<P align="right"> page 17 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_13"></A>
<P style="border-bottom-width:1px;border-bottom-style:solid"> <B><font size="4">TASEKO MINES LIMITED</font></B><br>
  Notes to Consolidated Financial Statements <br>
  For the period ended June 30, 2004 <br>
  (Expressed in Canadian Dollars) <br>
  (Unaudited) <br>
  &nbsp;</P>
<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">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>
      <P 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. </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="1%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="14%" align="center" style="border-top-width:3px;border-top-style:solid">Nine 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="14%" 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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%" align="center">ended</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="14%">For year ended</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%" align="center">June 30,</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="14%">September 30,</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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="14%" 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="14%" 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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Present value of convertible debenture</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="14%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="14%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning of period</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="14%">9,777,058</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="14%">8,888,235</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&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="14%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">732,274</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="14%" 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>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End of period</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="14%">10,509,332</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="14%">9,777,058</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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="14%" 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="14%" 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>&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="14%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">20,331,794</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="14%" 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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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="14%" 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="14%" 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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="center" width="14%">ended</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="14%">For year ended</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="center" width="14%">June 30,</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD width="1%" align="center">&nbsp;</TD>
    <TD align="center" width="14%">September 30,</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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="14%" 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="14%" 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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Summary of the convertible debenture terms</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="14%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="14%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;Principal amount of convertible debenture</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="14%">17,000,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="14%">17,000,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;Price per common share of the unexercised
      conversion right</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF">4.14</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="14%" align="right" bgcolor="#E6EFFF">4.14</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;Number of common shares potentially issuable under</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&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="14%" 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="14%" 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>
<P align="right"> page 18</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_14"></A>
<P style="border-bottom-width:1px;border-bottom-style:solid"> <B><font size="4">TASEKO MINES LIMITED</font></B><br>
  Notes to Consolidated Financial Statements <br>
  For the period ended June 30, 2004 <br>
  (Expressed in Canadian Dollars) <br>
  (Unaudited) <br>
  &nbsp;</P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><I>(d)</I></td>
    <td><P><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 a maximum of 10% of the issued
        and outstanding common shares of the Company at the time an option is
        granted, less common shares reserved or issued in the plan, 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 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>The continuity of share purchase options is as follows: </P></td>
  </tr>
</table>
<br>
<TABLE style="font-size:9pt;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 colspan="4" align="center" style="border-top-width:3px;border-top-style:solid">For the nine month</TD>
    <TD width="2%" 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="8%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</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="8%" 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="1%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
    <TD width="8%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</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="8%" 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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD colspan="4" align="center">period ended</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="8%">&nbsp;</TD>
    <TD align="center" width="2%">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="8%">&nbsp;</TD>
    <TD align="center" width="2%">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD colspan="4" align="center">June 30,</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="1%">&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%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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%" 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 colspan="4" align="center" style="border-bottom-width:1px;border-bottom-style:solid"><B>2003</B></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 colspan="4" align="center" style="border-bottom-width:1px;border-bottom-style:solid"><B>2002</B></TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="center" width="8%">Number</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="8%">Average</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD width="1%" align="center">&nbsp;</TD>
    <TD width="8%" align="center">Number</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="8%">Average</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="8%">Number</TD>
    <TD width="2%" align="center">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="8%">Average</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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="8%" 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="8%" 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="8%" 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="8%" 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="8%" 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="8%" 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>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Opening balance</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="8%" 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="8%" align="right" bgcolor="#E6EFFF">0.48</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="8%" align="right" bgcolor="#E6EFFF">4,145,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="8%" align="right" bgcolor="#E6EFFF">0.50</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="8%" align="right" bgcolor="#E6EFFF">657,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="8%" align="right" bgcolor="#E6EFFF">1.56</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>Granted during the period</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="8%">5,275,500</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="8%">0.93</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="8%">770,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="8%">0.41</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="1%">&nbsp;</TD>
    <TD align="right" width="8%">4,042,500</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="8%">0.50</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Exercised during the period</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="8%" align="right" bgcolor="#E6EFFF">(3,070,500</TD>
    <TD width="2%" bgcolor="#E6EFFF">)</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="8%" align="right" bgcolor="#E6EFFF">0.49</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="8%" align="right" bgcolor="#E6EFFF">(40,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">)</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="8%" align="right" bgcolor="#E6EFFF">0.50</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="8%" align="right" bgcolor="#E6EFFF">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="8%" align="right" bgcolor="#E6EFFF">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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="8%" 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="8%" 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="8%" 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="8%" 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="8%" 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="8%" 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>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Closing balance</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="8%" align="right" bgcolor="#E6EFFF">6,890,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="8%" align="right" bgcolor="#E6EFFF">0.82</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="8%" align="right" bgcolor="#E6EFFF">4,685,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="8%" 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="8%" 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="8%" align="right" bgcolor="#E6EFFF">0.50</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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="8%" 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="8%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">0.88</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="8%" 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="8%" 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="8%" 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="8%" 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>&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="8%" 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="8%" 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="8%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$0.25-$0.50</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="8%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="8%" 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="8%" 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 June 30, 2004, 6,760,000 of the options outstanding
        had vested with optionees. Subsequent to June 30, 2004, a total of 48,500
        options were exercised for gross proceeds of $26,775. </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 width="1%">&nbsp;</TD>
    <TD align="right" width="15%">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD align="right" width="15%">Year</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%" align="right" nowrap>Nine months ended</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD align="right" width="15%">ended</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="15%">June 30,</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%" align="right">&nbsp;</TD>
    <TD width="15%" align="right" nowrap>September 30,</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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="15%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" align="right" 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="15%" 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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD><B>Total compensation cost recognized in operations,</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;<B>credited to contributed surplus</B></TD>
    <TD width="1%" style="border-bottom-width:2px;border-bottom-style:solid"><B>$</B></TD>
    <TD width="15%" align="right" style="border-bottom-width:2px;border-bottom-style:solid"><B>3,137,066</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"><B>$</B></TD>
    <TD width="15%" align="right" style="border-bottom-width:2px;border-bottom-style:solid"><B>65,344</B></TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
</TABLE>
<P align="right"> page 19</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_15"></A>
<p style="border-bottom-width:1px;border-bottom-style:solid"><B><font size="4">TASEKO MINES LIMITED</font></B><br>
  Notes to Consolidated Financial Statements <br>
  For the period ended June 30, 2004 <br>
  (Expressed in Canadian Dollars) <br>
  (Unaudited) <br>
  &nbsp; </p>
<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="60%" 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="20%" align="right">3%</TD>
    <TD width="5%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Expected life</TD>
    <TD align="right" width="20%">2.4 years</TD>
    <TD width="5%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Volatility</TD>
    <TD width="20%" align="right">98%</TD>
    <TD width="5%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Expected dividends</TD>
    <TD align="right" width="20%">nil</TD>
    <TD width="5%">&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>(e)</I></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="12%" 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%" 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%" 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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" width="12%">Exercise</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">September 30,</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">June 30,</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">Expiry dates</TD>
    <TD width="12%" 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%" align="right" 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>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">October 19, 2003</TD>
    <TD width="12%" 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>&nbsp;</TD>
    <TD>December 27, 2003</TD>
    <TD align="center" width="12%">$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>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">January 8, 2006</TD>
    <TD width="12%" 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>&nbsp;</TD>
    <TD>December 31, 2003</TD>
    <TD align="center" width="12%">$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>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">December 31, 2004</TD>
    <TD width="12%" 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>&nbsp;</TD>
    <TD>December 31, 2005</TD>
    <TD align="center" width="12%">$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%">(346,666</TD>
    <TD width="2%">)</TD>
    <TD align="right" width="12%">6,353,334</TD>
    <TD width="2%"><SUP><i>(i)</i> </SUP></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">March 10, 2005</TD>
    <TD width="12%" 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>&nbsp;</TD>
    <TD style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" 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">(8,734,113</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">10,628,334</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"><I>(ii)</I></td>
    <td><div align="justify"><I> </I>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. </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 colspan="2" valign="top">Subsequent to June 30, 2004, a total of 35,000
      warrants were exercised for gross proceeds of $26,250. </td>
  </tr>
</table>
<P align="right">page 20</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_16"></A>
<P style="border-bottom-width:1px;border-bottom-style:solid"> <B><font size="4">TASEKO MINES LIMITED</font></B><br>
  Notes to Consolidated Financial Statements <br>
  For the period ended June 30, 2004 <br>
  (Expressed in Canadian Dollars) <br>
  (Unaudited) <br>
  &nbsp;</P>
<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="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>
    <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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" width="12%">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>&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">Expiry dates</TD>
    <TD width="12%" 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>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">October 19, 2003</TD>
    <TD width="12%" 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>&nbsp;</TD>
    <TD>December 27, 2003</TD>
    <TD align="center" width="12%">$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>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">January 8, 2006</TD>
    <TD width="12%" 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>&nbsp;</TD>
    <TD>December 31, 2003</TD>
    <TD align="center" width="12%">$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>&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">December 31, 2004</TD>
    <TD width="12%" 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>&nbsp;</TD>
    <TD style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" 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>
</TABLE>
<br>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><I>(f)</I></td>
    <td><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;</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>&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>&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&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>&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>&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>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;Non-cash stock-based compensation (note 8(d))</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">3,137,066</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&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>&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">Contributed surplus, June 30, 2004</TD>
    <TD width="1%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2,963,410</TD>
    <TD width="2%" 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 valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="5%" valign="top"><B>9.</B>&nbsp;</td>
    <td><P><B>Income taxes </B> </P>
      <P align="justify"> Substantially all of the difference between the actual
        income tax expense (recovery) of $nil (2002 - $nil) and the expected statutory
        corporate income tax recovery relates to losses not recognized. As at
        September 30, 2003 and 2002, the tax effect of the significant components
        within the Company&#146;s future tax assets were as follows: </P></td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" align="right" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">2002</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Mineral property deductions</TD>
    <TD width="1%" bgcolor="#E6EFFF">$</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">&#150;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">$</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">1,555,000</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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>&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>&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">Other tax pools</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">775,000</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">716,000</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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>&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">Valuation allowance</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">(3,638,000</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="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(6,322,000</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align="right" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD style="border-bottom-width:2px;border-bottom-style:solid">Net future income tax asset (liability)</TD>
    <TD width="1%" style="border-bottom-width:2px;border-bottom-style:solid">$</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="1%" style="border-bottom-width:2px;border-bottom-style:solid">$</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>
  </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>
<P align="right"> page 21 </P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_17"></A>
<P style="border-bottom-width:1px;border-bottom-style:solid"> <B><font size="4">TASEKO MINES LIMITED</font></B><br>
  Notes to Consolidated Financial Statements <br>
  For the period ended June 30, 2004 <br>
  (Expressed in Canadian Dollars) <br>
  (Unaudited) <br>
  &nbsp;</P>
<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">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><B>10.</B></td>
    <td><p><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;</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">June 30,</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="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>
    <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">September 30,</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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%" 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">2003</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="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>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Issuance of tracking preferred shares of Gibraltar Mines</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="center" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="center" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" align="center" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="center">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;Ltd. on acquisition of Harmony Gold Property (note 4)</TD>
    <TD width="1%">$</TD>
    <TD align="right" width="12%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">$</TD>
    <TD align="right" width="12%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">$</TD>
    <TD align="right" width="12%">26,764,784</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Issuance of common shares on acquisition of Gibraltar</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 align="center">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;Refinery (2002) Ltd. (note 6(d))</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>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">2,163,330</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Issuance of common shares on acquisition of remaining</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 align="center">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;business of GESL Partnership</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%">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>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Issuance of common shares on acquisition of Gibraltar</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 align="center">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;Reclamation Trust Limited Partnership</TD>
    <TD 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>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Issuance of common shares on redemption of Gibraltar</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 align="center">&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;tracking preferred shares held by a dissenting</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>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="center">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;Continental shareholder (note 4)</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">&#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>&nbsp;</TD>
    <TD>Issuance of common shares for loan guarantee (note 7)</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>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">400,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Issuance of common shares settlement of debt</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">&#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>&nbsp;</TD>
    <TD>Accretion of convertible debenture (note 8(c))</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="12%">732,274</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>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Fair value of stock options allocated to shares issued
      on</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 align="center">&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;exercise</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">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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="center">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="center">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" align="center">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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">June 30,</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="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>
    <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">September 30,</TD>
    <TD width="2%" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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%" 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">2003</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="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>&nbsp;</TD>
    <TD bgcolor="#E6EFFF"><B>Supplemental cash flow information</B></TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</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>&nbsp;</TD>
    <TD>Cash paid during the period for</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;Interest</TD>
    <TD width="1%" bgcolor="#E6EFFF">$</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">481,156</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">$</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">101,942</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">$</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">107,790</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;Taxes</TD>
    <TD width="1%" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">31,168</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">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">6,135</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">117,333</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
</TABLE>
<P align="right"> page 22</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_18"></A>
<P style="border-bottom-width:1px;border-bottom-style:solid"> <B><font size="4">TASEKO MINES LIMITED</font></B><br>
  Notes to Consolidated Financial Statements <br>
  For the period ended June 30, 2004 <br>
  (Expressed in Canadian Dollars) <br>
  (Unaudited) <br>
  &nbsp;</P>
<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%">&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="center" style="border-top-width:3px;border-top-style:solid">Nine 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%" align="center" style="border-top-width:3px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="12%">ended</TD>
    <TD align="center" width="2%">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="12%">Year ended</TD>
    <TD align="center" width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="12%">June 30,</TD>
    <TD align="center" width="2%">&nbsp;</TD>
    <TD align="center" width="1%">&nbsp;</TD>
    <TD align="center" width="12%">September 30,</TD>
    <TD align="center" width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="center">&nbsp;</TD>
    <TD 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="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>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Hunter Dickinson Inc</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</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>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;Services rendered to the Company and its subsidiaries</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and reimbursement
      of third party expenses (a)</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">628,536</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF">$</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF">253,859</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>Hunter Dickinson Group Inc</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&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">$</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">9,600</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">9,600</TD>
    <TD width="2%" bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&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">June 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>&nbsp;</TD>
    <TD 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="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>&nbsp;</TD>
    <TD bgcolor="#E6EFFF">Advances to (from) (c)</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</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>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;Hunter Dickinson Inc. (a)</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">460,351</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="1%">$</TD>
    <TD align="right" width="12%">229,129</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&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="12%" 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="12%" 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>&nbsp;</TD>
    <TD style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;&nbsp;&nbsp;Advances to (from) related parties</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">456,927</TD>
    <TD width="2%" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" align="center" style="border-bottom-width:2px;border-bottom-style:solid">$</TD>
    <TD width="12%" align="right" style="border-bottom-width:2px;border-bottom-style:solid">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;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td width="5%" valign="top">(a)</td>
    <td> <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>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">(b)</td>
    <td> <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>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">(c) </td>
    <td>Advances are non-interest bearing and are due on demand. </td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><B>12. </B></td>
    <td colspan="2" valign="top"><p><B>Subsequent events</B> </p>
      <p>Subsequent to June 30, 2004 </p></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">(a)</td>
    <td> 48,500 options were exercised for gross proceeds of $26,775 (note 8(d)).
    </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">(b)</td>
    <td> 25,000 warrants were exercised for gross proceeds of $26,250 (note 8(e)).
    </td>
  </tr>
</table>
<P align="right">page 23 </P>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>exhibit99-2.htm
<DESCRIPTION>MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE PERIOD ENDED JUNE 30, 2004
<TEXT>
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<HTML>
<HEAD>
   <TITLE>Filed by Automated Filing Services Inc. (604) 609-0244 - Taseko Mines Limited - Exhibit 99.2</TITLE>


</HEAD>

<BODY bgcolor="#FFFFFF" style="font-size: 10pt;">
<A name="page_1"></A>
<hr noshade align="center" width="100%" size=3 color="black">
<P align="center"> <B>TASEKO MINES LIMITED<br>
  NINE MONTHS ENDED JUNE 30, 2004 </B> </P>
<P align="center" style="border-bottom-width:1px;border-bottom-style:solid"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS
  <br>
  &nbsp; </B> </P>
<P>
<B>1.1 Date </B>
</P>
<P align="justify"> This Management Discussion and Analysis ("MD&amp;A") should
  be read in conjunction with the unaudited financial statements of Taseko Mines
  Limited ("Taseko", or the "Company") for the nine months ended June 30, 2004.
</P>
<P align="justify"> This MD&amp;A is prepared as of July 26, 2004. All dollar
  figures stated herein are expressed in Canadian dollars, unless otherwise specified.
</P>
<P align="justify" style="font-size:9pt;"> 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>
<table width="100%" border="2" cellpadding="3" cellspacing="0" bordercolor="#000000" style="font-size: 9pt;">
  <tr>
    <td><P align="center"><B><font color="#FF0000">Cautionary Note to U.S. Investors
        Concerning Estimates of Measured and Indicated Resources. </font></B>
      </P>
      <P align="justify"> This management discussion and analysis uses the terms
        &#145;measured resources&#146; and &#145;indicated resources&#146;. The
        Company advises U.S. investors that while these terms are recognized and
        required by Canadian regulations (under National Instrument 43-101 Standards
        of Disclosure for Mineral Projects), the U.S. Securities and Exchange
        Commission does not recognize them. U.S. investors are cautioned not to
        assume that any part or all of the mineral deposits in these categories
        will ever be converted into reserves. </P>
</td>
  </tr>
</table>
<P> <B>1.2 Overview </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-stage exploration
  projects: the Prosperity gold-copper project and the Harmony gold project. The
  Company is currently focussing on re-start activities at the Gibraltar mine.
</P>
<P>
<I>Gibraltar </I>
</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" for the past five years awaiting higher
  copper prices. With the improvement in copper markets, the Company raised approximately
  $20 million in funding from investors to commence restart and commissioning
  of the Gibraltar mine. Such activities commenced at Gibraltar in June, and the
  Company plans to begin copper concentrate shipments in October 2004. </P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_2"></A>
<P align="center"><B>TASEKO MINES LIMITED<br>
  NINE MONTHS ENDED JUNE 30, 2004 </B> </P>
<P align="center" style="border-bottom-width:1px;border-bottom-style:solid"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS
  <br>
  &nbsp; </B></P>
<P align="justify">In June 2004, Taseko announced that it had signed a Framework
  Agreement to create a Joint Venture (the &#147;JV&#148;) with Ledcor CMI Ltd.
  (&#147;Ledcor&#148;), a private, British Columbia-based, construction and contract
  mining company. Under the proposed terms, Ledcor will be the mine operator,
  with primary responsibility for commissioning and operating the mine in addition
  to other aspects of mine operations, including drilling, blasting, loading and
  hauling of ore and waste as well as recruitment of personnel and maintenance
  of the equipment and facilities. Ledcor will contribute its own mine equipment
  to the JV and purchase or lease additional equipment, including a large new
  shovel and new trucks worth a total of $25 million, to supplement the existing
  site equipment. Taseko will contribute to the JV certain existing mine assets,
  including mineral rights and usage rights to the existing mill and equipment.
</P>
<P align="justify"> The Company and its former union, the Canadian Auto Workers
  (&#147;CAW&#148;), appeared before the British Columbia Labour Relations Board
  (&#147;LRB&#148;), which ruled that the Company is entitled to contract with
  Ledcor to commission and start up the mine. Further the LRB ruled that once
  the majority of workers on the Gibraltar site consist of the longer term mining
  and mill operating personnel, a vote would be held to determine who would represent
  those employees, CAW or Christian Labour Association of Canada, which represent
  Ledcor&#146;s employees. The representation vote is to be held no later than
  10 days after the first shipment of copper concentrate, planned to occur in
  October 2004. The JV is proceeding with the commissioning and start up of the
  mine. </P>
<P align="justify"> A long-term copper concentrate sales contract has also been
  signed with Glencore Ltd. (&#147;Glencore&#148;), a major international metals
  buyer. Glencore is a diversified natural resources group based in Switzerland,
  with assets of US$15 billion. The sales contract is for 100% of the production
  from the mine for 40 months beginning in October 2004, and has fixed terms for
  treatment and refining charges at a discount to prevailing market prices. Arrangements
  have also been made with rail carriers and port facilities for the transportation,
  storage and shipment of Gibraltar&#146;s copper concentrates to Glencore smelters
  overseas. </P>
<P align="justify"> The current plan is to extract 148 million tonnes in sulphide
  material over 12 years, producing an average of 70 million pounds of copper
  and 980,000 pounds of molybdenum per year in concentrate. Oxide material, when
  accessed, will also be processed by the 10 million pound per year solvent extraction-electrowinning
  plant to produce copper cathode. </P>
<P align="justify"> Personnel from Ledcor began work at site in late May 2004.
  Activities in June have included open pit pre-development work in the Pollyanna
  pit area, where some 7 million tonnes of waste rock needs to be removed to expose
  ore-grade material allowing for continuous mill feed. In addition, mine and
  mill equipment is being reconditioned in preparation for concentrate production.
</P>
<P>
<B>Market Trends </B>
</P>
<P align="justify"> Copper prices have been strong in 2004. Copper has increased
  from the average 2003 price of US$0.81/lb to US$1.25/lb in the year to date
  in 2004. The price of molybdenum oxide has increased substantially in 2004,
  and is currently trading at US$17.50/lb. Gold prices, although volatile in the
  past four to six months, have averaged US$399/oz in the calendar year to date,
  continuing the overall upward trend established in 2003. </P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_3"></A>
<P align="center"><B>TASEKO MINES LIMITED<br>
  NINE MONTHS ENDED JUNE 30, 2004 </B> </P>
<P align="center" style="border-bottom-width:1px;border-bottom-style:solid"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS
  <br>
  &nbsp; </B></P>
<P><B>1.3 Selected Annual Information </B> </P>
<P align="justify"> The consolidated financial statements have been prepared in
  accordance with Canadian generally accepted accounting principles, and are expressed
  in Canadian dollars except common shares outstanding. </P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%"><B>As at</B></TD>
    <TD align="right" width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%"><B>As at</B></TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%"><B>As at</B></TD>
    <TD align="center" width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%"><B>September 30</B></TD>
    <TD align="right" width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%"><B>September 30</B></TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%"><B>September 30</B></TD>
    <TD align="center" width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid"><B>Balance Sheet</B></TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" style="border-bottom-width:1px;border-bottom-style:solid"><B>2003</B></TD>
    <TD width="2%" align="right" 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="13%" align="right" style="border-bottom-width:1px;border-bottom-style:solid"><B>2002</B></TD>
    <TD width="2%" align="right" 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="13%" align="right" style="border-bottom-width:1px;border-bottom-style:solid"><B>2001</B></TD>
    <TD align="center" width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Current assets</TD>
    <TD width="1%">$</TD>
    <TD width="13%" align="right">6,110,155</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%">$</TD>
    <TD width="13%" align="right">2,761,936</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">$</TD>
    <TD width="13%" align="right">2,740,911</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Mineral properties</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">28,813,296</TD>
    <TD align="right" width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">28,813,296</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">602,001</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Other assets</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">26,311,460</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">28,735,049</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">28,727,482</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">Total assets</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">61,234,911</TD>
    <TD width="2%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">60,310,281</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">32,070,394</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Current liabilities</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">3,851,136</TD>
    <TD align="right" width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">7,038,456</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">2,928,589</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Other liabilities</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">32,700,000</TD>
    <TD width="2%" align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">32,700,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">32,700,000</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Shareholders&#146; equity</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">24,683,775</TD>
    <TD align="right" width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">20,571,825</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">(3,558,195</TD>
    <TD width="2%">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">Total shareholders&#146; equity &amp; liabilities</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">61,234,911</TD>
    <TD width="2%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">60,310,281</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">32,070,394</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;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>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%"><B>Year ended</B></TD>
    <TD align="right" width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%"><B>Year ended</B></TD>
    <TD align="right" width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%"><B>Year ended</B></TD>
    <TD align="center" width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%"><B>September 30</B></TD>
    <TD align="right" width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%"><B>September 30</B></TD>
    <TD align="right" width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%"><B>September 30</B></TD>
    <TD align="center" width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid"><B>Operations</B></TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" style="border-bottom-width:1px;border-bottom-style:solid"><B>2003</B></TD>
    <TD width="2%" align="right" 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="13%" align="right" style="border-bottom-width:1px;border-bottom-style:solid"><B>2002</B></TD>
    <TD width="2%" align="right" 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="13%" align="right" style="border-bottom-width:1px;border-bottom-style:solid"><B>2001</B></TD>
    <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Conference and travel</TD>
    <TD width="1%">$</TD>
    <TD width="13%" align="right">43,398</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">$</TD>
    <TD width="13%" align="right">44,429</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">$</TD>
    <TD width="13%" align="right">72,981</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Consulting</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">178,104</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">133,672</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">1,750,662</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Corporation taxes</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">76,135</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">577,228</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">211,486</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Depreciation</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">711,170</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">714,065</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">714,857</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Exploration</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">2,029,529</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">2,071,885</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">3,860,176</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Interest and finance charges</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">201,942</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">507,790</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">73,058</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Legal, accounting and audit</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">169,356</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">334,492</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">483,653</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Office and administration</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">292,853</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">247,061</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">674,783</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Refinery project</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">500,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">1,698,826</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">3,571,942</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Shareholder communication</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">74,687</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">90,835</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">73,523</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Trust and filing</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">21,113</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">36,802</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">51,155</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Interest and other (income)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">(721,480</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">(551,842</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">(1,110,431</TD>
    <TD width="2%">)</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Gain on sale of property, plant and equipment</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">(131,638</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">(1,314</TD>
    <TD width="2%">)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Write down of mineral property acquisition costs</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">600,000</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">44,224,214</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Write down of supplies inventory</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">3,509,465</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Stock-based compensation</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">65,344</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align="right" width="13%">&#150;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">Loss for the period</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">3,510,513</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">6,503,929</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">58,161,524</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:1px;border-bottom-style:solid">Accretion expense</TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="13%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">888,823</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="13%" 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="13%" 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>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Basic and diluted loss per share</TD>
    <TD width="1%">$</TD>
    <TD width="13%" align="right">(0.07</TD>
    <TD width="2%">)</TD>
    <TD width="1%">$</TD>
    <TD width="13%" align="right">(0.21</TD>
    <TD width="2%">)</TD>
    <TD width="1%">$</TD>
    <TD width="13%" align="right">(2.32</TD>
    <TD width="2%">)</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Weighted average number of common shares outstanding</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">46,984,378</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">30,338,098</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%" align="right">25,067,697</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
</TABLE>

<br>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_4"></A>
<P align="center"><B>TASEKO MINES LIMITED<br>
  NINE MONTHS ENDED JUNE 30, 2004 </B> </P>
<P align="center" style="border-bottom-width:1px;border-bottom-style:solid"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS
  <br>
  &nbsp; </B></P>
<P><B>1.4 Results of Operations </B> </P>
<P align="justify"> The Company&#146;s loss for the period decreased in the third
  quarter of the year to $6.3 million from $7.0 million in the second quarter
  of the year due to the $5.1 million premium paid for the acquisition of the
  Gibraltar Reclamation Trust Limited Partnership (&#147;GRT Partnership&#148;)
  in the second quarter. The third quarter loss increased from $1.0 million in
  the same quarter in fiscal 2003 due to the possible restart of the Gibraltar
  mine and the cost of exercising its right to purchase the interest in the Gibraltar
  exploration lands earned by Northern Dynasty Minerals Ltd. and Rockwell Ventures
  Inc. </P>
<P align="justify"> The main expense during the quarter was $3.9 million on exploration,
  an increase from $1.0 million spent in the previous quarter and $0.4 million
  spent in the same quarter in fiscal 2003. </P>
<P align="justify"> Of the $3,939,477 in exploration expenditures, $3,923,883
  was spent on Gibraltar, $8,336 was spent on Prosperity and $7,258 was spent
  on Harmony. The expenditures include the cost of care and maintenance, mine
  restart activities 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 were for site activities ($2,916,986) and drilling
  ($935,000) at Gibraltar. The drilling costs include the cost of exercising the
  Company&#146;s right to purchase the interest in the Gibraltar exploration lands
  earned by Northern Dynasty Minerals Ltd. and Rockwell Ventures Inc. </P>
<P align="justify"> Administrative costs are similar to the previous quarter with
  the exception of legal costs, which increased significantly due to legal issues
  related to the planned re-start of the Gibraltar mine. </P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_5"></A>
<P align="center"><B>TASEKO MINES LIMITED<br>
  NINE MONTHS ENDED JUNE 30, 2004 </B> </P>
<P align="center" style="border-bottom-width:1px;border-bottom-style:solid"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS
  <br>
  &nbsp; </B></P>
<P>
<B>1.5 Summary of Quarterly Results </B>
</P>
<P>
The following summary is presented in Canadian dollars except common shares outstanding.
</P>
<TABLE style="font-size:8pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
   <TD>&nbsp;</TD>
    <TD align="right" width="9%">Jun 30,</TD>
    <TD align="right" width="2%">&nbsp;</TD>
    <TD align="right" width="9%">Mar 31,</TD>
    <TD align="right" width="2%">&nbsp;</TD>
    <TD align="right" width="9%">Dec 31,</TD>
    <TD align="right" width="2%">&nbsp;</TD>
    <TD align="right" width="9%">Sep 30,</TD>
    <TD align="right" width="2%">&nbsp;</TD>
    <TD align="right" width="9%">Jun 30,</TD>
    <TD align="right" width="2%">&nbsp;</TD>
    <TD align="right" width="9%">Mar 31,</TD>
    <TD align="right" width="2%">&nbsp;</TD>
    <TD align="right" width="9%">Dec 31,</TD>
    <TD align="right" width="2%">&nbsp;</TD>
    <TD align="right" width="9%">Sep 30,</TD>
   <TD align="center" width="2%">&nbsp;</TD>
</TR>
<TR>
   <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2004</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2003</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2002</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">2002</TD>
   <TD width="2%" align="center" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
</TR>

<TR>
   <TD>Current assets</TD>
   <TD align="right" width="9%">22,503,985</TD>
   <TD align="right" width="2%">&nbsp;</TD>
   <TD align="right" width="9%">31,197,299</TD>
   <TD align="right" width="2%">&nbsp;</TD>
   <TD align="right" width="9%">12,393,240</TD>
   <TD align="right" width="2%">&nbsp;</TD>
   <TD align="right" width="9%">6,110,155</TD>
   <TD align="right" width="2%">&nbsp;</TD>
   <TD align="right" width="9%">6,931,542</TD>
   <TD align="right" width="2%">&nbsp;</TD>
   <TD align="right" width="9%">4,590,814</TD>
   <TD align="right" width="2%">&nbsp;</TD>
   <TD align="right" width="9%">5,817,311</TD>
   <TD align="right" width="2%">&nbsp;</TD>
   <TD align="right" width="9%">2,761,936</TD>
   <TD align="center" width="2%">&nbsp;</TD>
</TR>
<TR bgcolor="#E6EFFF">
   <TD>Mineral properties</TD>
   <TD width="9%" align="right">28,813,296</TD>
   <TD width="2%" align="right">&nbsp;</TD>
   <TD width="9%" align="right">28,813,296</TD>
   <TD width="2%" align="right">&nbsp;</TD>
   <TD width="9%" align="right">28,813,296</TD>
   <TD width="2%" align="right">&nbsp;</TD>
   <TD width="9%" align="right">28,813,296</TD>
   <TD width="2%" align="right">&nbsp;</TD>
   <TD width="9%" align="right">28,813,296</TD>
   <TD width="2%" align="right">&nbsp;</TD>
   <TD width="9%" align="right">28,813,296</TD>
   <TD width="2%" align="right">&nbsp;</TD>
   <TD width="9%" align="right">28,813,296</TD>
   <TD width="2%" align="right">&nbsp;</TD>
   <TD width="9%" align="right">28,813,296</TD>
   <TD width="2%" align="center">&nbsp;</TD>
</TR>
<TR>
   <TD style="border-bottom-width:1px;border-bottom-style:solid">Other assets</TD>
   <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">37,453,575</TD>
   <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
   <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">29,025,131</TD>
   <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
   <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">26,258,435</TD>
   <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
   <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">26,311,460</TD>
   <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
   <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">26,232,419</TD>
   <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
   <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">26,069,484</TD>
   <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
   <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">26,355,556</TD>
   <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
   <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">28,735,049</TD>
   <TD width="2%" align="center" 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"><B>Total assets</B></TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid"><B>88,770,856</B></TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid"><B>89,035,726</B></TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid"><B>67,464,971</B></TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid"><B>61,234,911</B></TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid"><B>61,977,257</B></TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid"><B>59,473,594</B></TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid"><B>60,986,163</B></TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid"><B>60,310,281</B></TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
</TR>

<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR bgcolor="#E6EFFF">
   <TD>Current liabilities</TD>
   <TD width="9%" align="right">4,082,614</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">1,411,538</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">3,786,070</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">3,851,136</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">3,490,173</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">3,571,875</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">4,053,587</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">7,038,456</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR>
   <TD>Other liabilities</TD>
   <TD align="right" width="9%">32,700,000</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">32,700,000</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">32,700,000</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">32,700,000</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">32,700,000</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">32,700,000</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">32,700,000</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">32,700,000</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:1px;border-bottom-style:solid">Shareholders&#146; equity</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">51,988,242</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">54,924,188</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">30,978,901</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">24,683,775</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">25,787,084</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">23,201,719</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">24,232,576</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">20,571,825</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
</TR>

<TR>
   <TD><B>Total shareholders&#146;</B></TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:1px;border-bottom-style:solid"><B>equity and liabilities</B></TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid"><B>88,770,856</B></TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid"><B>89,035,726</B></TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid"><B>67,464,971</B></TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid"><B>61,234,911</B></TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid"><B>61,977,257</B></TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid"><B>59,473,594</B></TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid"><B>60,986,163</B></TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid"><B>60,310,281</B></TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
</TR>

<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR bgcolor="#E6EFFF">
   <TD><B>Expenses:</B></TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR>
   <TD>Conference and travel</TD>
   <TD align="right" width="9%">19,062</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">22,051</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">40,269</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">4,449</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">12,492</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">6,962</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">19,495</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">24,149</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR bgcolor="#E6EFFF">
   <TD>Consulting</TD>
   <TD width="9%" align="right">94,875</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">(10,462</TD>
   <TD width="2%">)</TD>
   <TD width="9%" align="right">110,927</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">30,118</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">40,309</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">58,011</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">49,666</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">(131,320</TD>
   <TD width="2%">)</TD>
</TR>
<TR>
   <TD>Corporation taxes</TD>
   <TD align="right" width="9%">20,000</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">11,168</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">101,308</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">(44,911</TD>
   <TD width="2%">)</TD>
   <TD align="right" width="9%">11,594</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">8,144</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">375,740</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR bgcolor="#E6EFFF">
   <TD>Deprecation</TD>
   <TD width="9%" align="right">181,434</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">180,407</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">179,978</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">179,559</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">176,617</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">176,617</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">178,377</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">179,719</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR>
   <TD>Exploration</TD>
   <TD align="right" width="9%">3,939,477</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">975,538</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">2,130,546</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">607,301</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">449,458</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">687,681</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">285,089</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">739,340</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR bgcolor="#E6EFFF">
   <TD>Interest and finance</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR>
   <TD>charges</TD>
   <TD align="right" width="9%">452,616</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">9,201</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">19,339</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">124,213</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">25,952</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">28,590</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">23,187</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">37,808</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR bgcolor="#E6EFFF">
   <TD>Laboratory and other</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR>
   <TD>services</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">(732,054</TD>
   <TD width="2%">)</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR bgcolor="#E6EFFF">
   <TD>Legal, accounting and</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR>
   <TD>audit</TD>
   <TD align="right" width="9%">92,940</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">22,913</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">16,818</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">40,526</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">53,960</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">18,272</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">56,598</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">36,230</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR bgcolor="#E6EFFF">
   <TD>Office and administration</TD>
   <TD width="9%" align="right">199,224</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">189,976</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">121,738</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">98,580</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">78,827</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">63,676</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">51,770</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">186,323</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR>
    <TD nowrap>Premium paid for GRTLP</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">5,095,249</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR bgcolor="#E6EFFF">
   <TD>Property investigation</TD>
   <TD width="9%" align="right">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">141,063</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">(47,805</TD>
   <TD width="2%">)</TD>
   <TD width="9%" align="right">37,071</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">10,734</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR>
   <TD>Refinery project</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">500,000</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">(271,801</TD>
   <TD width="2%">)</TD>
</TR>
<TR bgcolor="#E6EFFF">
   <TD>Salaries and benefits</TD>
   <TD width="9%" align="right">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">(160,021</TD>
   <TD width="2%">)</TD>
</TR>
<TR>
   <TD>Shareholder</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR bgcolor="#E6EFFF">
   <TD>communications</TD>
   <TD width="9%" align="right">18,694</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">530,704</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">73,802</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">7,833</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">4,223</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">39,104</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">23,527</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right">8,164</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR>
   <TD>Trust and filing</TD>
   <TD align="right" width="9%">13,842</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">17,241</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">4,395</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">1,250</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">8,421</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">10,698</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">744</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">(368</TD>
   <TD width="2%">)</TD>
</TR>
<TR bgcolor="#E6EFFF">
   <TD>Interest and other</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR>
   <TD>(income)</TD>
   <TD align="right" width="9%">(228,670</TD>
   <TD width="2%">)</TD>
   <TD align="right" width="9%">(325,399</TD>
   <TD width="2%">)</TD>
   <TD align="right" width="9%">(135,289</TD>
   <TD width="2%">)</TD>
   <TD align="right" width="9%">(129,811</TD>
   <TD width="2%">)</TD>
   <TD align="right" width="9%">(353,537</TD>
   <TD width="2%">)</TD>
   <TD align="right" width="9%">64,623</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">(302,755</TD>
   <TD width="2%">)</TD>
   <TD align="right" width="9%">11,382</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR bgcolor="#E6EFFF">
   <TD>Gain on sale of property</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR>
   <TD>plant and equipment</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">(131,638</TD>
   <TD width="2%">)</TD>
   <TD align="right" width="9%">&#150;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD align="right" width="9%">(1,314</TD>
   <TD width="2%">)</TD>
</TR>
<TR bgcolor="#E6EFFF">
   <TD>Stock-based</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">compensation</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">1,526,084</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">296,686</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">1,314,296</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">65,344</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="9%" 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="9%" 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="9%" 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="9%" 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 bgcolor="#E6EFFF">
   <TD><B>Loss for the period</B></TD>
   <TD width="9%" align="right"><B>6,329,578</B></TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right"><B>7,015,273</B></TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right"><B>3,285,828</B></TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right"><B>1,082,865</B></TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right"><B>988,882</B></TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right"><B>1,044,924</B></TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right"><B>393,842</B></TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right"><B>1,034,031</B></TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR bgcolor="#E6EFFF">
   <TD>Accretion expense on</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR>
   <TD style="border-bottom-width:1px;border-bottom-style:solid">convertible debenture</TD>
   <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">244,091</TD>
   <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
   <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">242,752</TD>
   <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
   <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">245,431</TD>
   <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
   <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">888,823</TD>
   <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
   <TD width="9%" 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="9%" 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="9%" 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="9%" 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 bgcolor="#E6EFFF">
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>Basic and diluted loss per</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR bgcolor="#E6EFFF">
    <TD style="border-bottom-width:1px;border-bottom-style:solid">share</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(0.08</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(0.10</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(0.06</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(0.04</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(0.02</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(0.02</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(0.01</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
    <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">(0.01</TD>
    <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">)</TD>
</TR>

<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR bgcolor="#E6EFFF">
   <TD>Weighted average number</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR>
   <TD>of common shares</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%">&nbsp;</TD>
   <TD width="2%">&nbsp;</TD>
</TR>
<TR bgcolor="#E6EFFF">
   <TD style="border-bottom-width:1px;border-bottom-style:solid">outstanding (thousands)</TD>
   <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">71,384</TD>
   <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
   <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">65,005</TD>
   <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
   <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">57,481</TD>
   <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
   <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">46,984</TD>
   <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
   <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">44,660</TD>
   <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
   <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">40,173</TD>
   <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
   <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">34,057</TD>
   <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
   <TD width="9%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">30,338</TD>
   <TD width="2%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
</TR>
</TABLE>

<br>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_6"></A>
<P align="center"><B>TASEKO MINES LIMITED<br>
  NINE MONTHS ENDED JUNE 30, 2004 </B> </P>
<P align="center" style="border-bottom-width:1px;border-bottom-style:solid"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS
  <br>
  &nbsp; </B></P>
<P>
<B>1.6 Liquidity </B>
</P>
<P align="justify"> Historically Taseko&#146;s sole source of funding was the
  sale of equity securities for cash primarily through private placements to sophisticated
  investors and institutions. 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 approximately $17.5 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 June 30, 2004, Taseko had working capital of $18.4 million,
  as compared to $29.8 million at the end of the previous quarter, and $3.4 million
  at the end of the same period in 2003. The decrease from the end of the previous
  quarter was a result of deposits made for the purchase of a mining shovel and
  for five mine haul trucks. The increase as compared to the end of the same period
  in 2003 was a result of several financings. </P>
<P align="justify"> <B>1.7 Capital Resources </B> </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$6.4 million has
  been paid as an initial deposit. Subsequent to June 30, 2004, the Company paid
  an additional US$2.7 million towards this purchase. </P>
<P align="justify"> In May 2004 the Company entered into an agreement to purchase
  5 mining trucks for approximately US$8.2 million, of which US$1.64 million has
  been paid as an initial deposit. </P>
<P align="justify"> The Company has a $2 million operating line of credit with
  a Canadian chartered bank at an interest rate of prime, with no fixed terms
  of repayment. </P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_7"></A>
<P align="center"><B>TASEKO MINES LIMITED<br>
  NINE MONTHS ENDED JUNE 30, 2004 </B> </P>
<P align="center" style="border-bottom-width:1px;border-bottom-style:solid"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS
  <br>
  &nbsp; </B></P>
<P>
<B>1.8 Off-Balance Sheet Arrangements </B>
</P>
<P align="justify"> In October 2001, the Company&#146;s subsidiary Gibraltar Mines
  Ltd. (&#147;Gibraltar&#148;) completed an arrangement agreement with Continental
  Minerals Corporation ("Continental"), which are British Columbia companies with
  certain management and directors in common with the Company. Under the terms
  of the arrangement agreement, among other things, Gibraltar paid $2.23 million
  cash and issued to Continental, 12,483,916 series A non-voting redeemable preferred
  shares in exchange for Continental&#146;s interest in the Harmony Gold Project.
</P>
<P align="justify"> Gibraltar is obligated to redeem the series A preferred shares
  under certain conditions, notably the sale of all or substantially all (80%)
  of the Harmony Gold Property (excluding options or joint ventures which do not
  result in the certain or immediate transfer of 80% of Gibraltar&#146;s interest
  in the Harmony Gold Property), or upon the commencement of commercial production
  at the Harmony Gold Property (an &#147;HP Realization Event&#148;). Upon the
  occurrence of an HP Realization event, Gibraltar must redeem Gibraltar preferred
  shares by distributing that number of Taseko common shares (&#147;Taseko Shares&#148;)
  equal to the paid-up amount (as adjusted) divided by a deemed price per Taseko
  Share, which will vary dependent on the timing of such HP Realization Event.
  At June 30, 2004, the conversion rate was $4.14 per Taseko Share. </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 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 reached agreements with
  Gibraltar Reclamation Trust Limited Partnership (the &#147;GRT Partnership&#148;),
  a largely arm&#146;s-length private Vancouver-based mining investment partnership
  which completed a financing to raise proceeds of $18.6 million to partially
  fund a planned restart 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 to proceed towards restarting
  the Gibraltar open pit copper mine. Gibraltar, as its contribution to the Joint
  Venture, agreed to 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 currently 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 became 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
  were actually contributed by the GRT Partnership to the QET being an amount
  of $18.6 million. The Purchase Option was 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 acquired 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 </P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_8"></A>
<P align="center"><B>TASEKO MINES LIMITED<br>
  NINE MONTHS ENDED JUNE 30, 2004 </B> </P>
<P align="center" style="border-bottom-width:1px;border-bottom-style:solid"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS
  <br>
  &nbsp; </B></P>
<P align="justify"> (Cdn$2.15). To facilitate the start-up transactions, five
  directors and officers of the Company have personally guaranteed certain obligations
  (each as to one fifth) 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, they each received compensation equal to 10% of the amount
  guaranteed, calculated as 45,000 shares having a value of $2.00 each. </P>
<P align="justify"> In March 2004 Taseko elected to exercise its call rights for
  the GRT Partnership and issued 7,967,742 shares valued at $2.79 each. Certain
  directors and officers participated as investors in the GRT Partnership in the
  aggregate amount of $1,300,000. These directors and officers received shares
  as a consequence of Taseko exercising the call right. The acquisition of the
  GRT Partnership provides Taseko with 100% control of those elements necessary
  for a mine restart decision and will eliminate the royalty entitlement held
  by the GRT Partnership. </P>
<P align="justify"> <B>1.9 Transactions with Related Parties </B> </P>
<P align="justify"> Hunter Dickinson Inc. (&#147;HDI&#148;) carries out investor
  relations, geological, corporate development, administrative and other management
  activities for, and incurs third party costs on behalf of the Company. Taseko
  reimburses HDI on a full cost-recovery basis. </P>
<P align="justify"> Costs for services rendered by HDI to the Company decreased
  to $138,017 in the third quarter of fiscal 2004, as compared to $203,317 in
  the previous quarter and decreased as compared to $159,502 in the second quarter
  of 2003. </P>
<P align="justify"> To facilitate the startup of the Gibraltar Mine, certain directors
  and officers of the Company have personally guaranteed certain obligations on
  behalf of the Company, for which they each received 45,000 shares of the Company
  (see item 1.8 above). </P>
<P align="justify"> Certain directors and officers participated as investors in
  the GRT Partnership in the aggregate amount of $1,300,000 (see item 1.8 above).
</P>
<P align="justify"> <B>1.10 Fourth Quarter </B> </P>
<P align="justify"> No applicable. </P>
<P align="justify"> <B>1.11 Proposed Transactions </B> </P>
<P align="justify"> There are no proposed asset or business acquisitions or dispositions,
  other than those in the ordinary course, before the board of directors for consideration.
</P>
<P align="justify"> <B>1.12 Critical Accounting Estimates </B> </P>
<P align="justify"> Not applicable. The Company is a venture issuer. </P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_9"></A>
<P align="center"><B>TASEKO MINES LIMITED<br>
  NINE MONTHS ENDED JUNE 30, 2004 </B> </P>
<P align="center" style="border-bottom-width:1px;border-bottom-style:solid"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS
  <br>
  &nbsp; </B></P>
<P>
<B>1.13 Changes in Accounting Policies including Initial Adoption </B>
</P>
<P>
None.
</P>
<P>
<B>1.14 Financial Instruments and Other Instruments </B>
</P>
<P>
None.
</P>
<P>
<B>1.15 Other MD&amp;A Requirements </B>
</P>
<P>
<B>1.15.1 Other MD&amp;A Requirements </B>
</P>
<P>
Additional information relating to the Company, including the Company's Annual Information Form, is available on SEDAR at www.sedar.com.
</P>
<P>
<B>1.15.2 Additional Disclosure for Venture Issuers Without Significant Revenue </B>
</P>
<P>
(a) capitalized or expensed exploration and development costs;
</P>
<blockquote>
  <p> The required disclosure is presented in the Consolidated Schedule of Mineral
    Property Interests. </p>
</blockquote>
<P>(b) expensed research and development costs; </P>
<blockquote>
  <p>Not applicable. </p>
</blockquote>
<P>(c) deferred development costs; </P>
<blockquote>
  <p>Not applicable. </p>
</blockquote>
<P>(d) general and administration expenses; and </P>
<blockquote>
  <p>The required disclosure is presented in the Consolidated Statements of Operations.
  </p>
</blockquote>
<P>
(e) any material costs, whether capitalized, deferred or expensed, not referred to in (a) through (d);
</P>
<blockquote>
  <p> None. </p>
</blockquote>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_10"></A>
<P align="center"><B>TASEKO MINES LIMITED<br>
  NINE MONTHS ENDED JUNE 30, 2004 </B> </P>
<P align="center" style="border-bottom-width:1px;border-bottom-style:solid"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS
  <br>
  &nbsp; </B></P>
<P>
<B>1.15.3 Disclosure of Outstanding Share Data </B>
</P>
<P>
The following details the share capital structure as at July 26, 2004, the date of this MD&amp;A.  These figures may be subject to minor accounting adjustments prior to presentation in future consolidated financial statements.
</P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR>
    <TD>&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
    <TD align="right" width="2%">&nbsp;</TD>
    <TD align="center" width="7%">Exercise</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="24%" style="border-bottom-width:1px;border-bottom-style:solid">Expiry date</TD>
    <TD width="2%" 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%" 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">Number</TD>
    <TD width="14%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">Number</TD>
    <TD width="2%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Common shares</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD align="right" width="14%">84,896,953</TD>
    <TD align="right" width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Share purchase options</TD>
    <TD width="24%">September 24, 2004</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="7%">$0.50</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">1,762,000</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="24%">December 20, 2004</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="7%" align="center">0.40</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%" align="right">22,500</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="24%">March 31, 2005</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="7%">0.30</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">100,000</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="24%">May 9, 2005</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="7%" align="center">0.38</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%" align="right">20,000</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="24%">July 29, 2005</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="7%">0.25</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">50,000</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="24%">September 29, 2006</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="7%" align="center">0.55</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%" align="right">2,390,000</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="24%">September 20, 2005</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="7%">0.65</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">17,000</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="24%">September 20, 2005</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="7%" align="center">0.81</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%" align="right">45,000</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="24%">September 20, 2005</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="7%">1.40</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">100,000</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="24%">September 20, 2005</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="7%" align="center">1.65</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%" align="right">70,000</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="24%">September 29, 2006</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="7%">1.36</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">2,240,000</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="24%">September 29, 2006</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="7%" align="center">1.50</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">10,000</TD>
    <TD width="14%" align="right">6,826,500</TD>
    <TD width="2%" align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Warrants</TD>
    <TD width="24%">January 8, 2006</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="7%" align="center">0.40</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%" align="right">375,000</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="24%">December 31, 2005</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="center" width="7%">0.75</TD>
    <TD width="2%">&nbsp;</TD>
    <TD align="right" width="12%">6,318,334</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp;</TD>
    <TD width="24%">March 10, 2005</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="7%" align="center">2.25</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%" align="right" style="border-bottom-width:1px;border-bottom-style:solid">3,900,000</TD>
    <TD width="14%" align="right">10,593,334</TD>
    <TD width="2%" align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>Preferred shares redeemable into</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>Taseko Mines Limited common</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>shares</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="14%" align="right">12,483,916</TD>
    <TD width="2%" align="right">&nbsp;</TD>
  </TR>
</TABLE>
<P align="justify" style="font-size:9pt;"> 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>
<P align="justify" style="font-size:9pt;"> The Company's auditors have not reviewed this MD&amp;A or
  the unaudited quarterly financial statements to which this MD&amp;A relates.
</P>

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