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<SEC-DOCUMENT>0001062993-05-000372.txt : 20050303
<SEC-HEADER>0001062993-05-000372.hdr.sgml : 20050303
<ACCEPTANCE-DATETIME>20050303143132
ACCESSION NUMBER:		0001062993-05-000372
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20040930
FILED AS OF DATE:		20050303
DATE AS OF CHANGE:		20050303

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:		05657404

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

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


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


</HEAD>

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

<!--$$/page=-->
<A name="page_1"></A><HR noshade align="center" width="100%" size=3 color="black"><P align="center"><font size="5"><strong>UNITED STATES<br>SECURITIES AND EXCHANGE COMMISSION</strong></font><br> Washington, D.C. 20549</P>
<P align="center"><B><font size="5">FORM 6-K</font></B></P>
<P align="center">REPORT OF FOREIGN PRIVATE ISSUER</P>
<p align="center">Pursuant to Rule 13a-16 or 15d-16<br>
  under the Securities Exchange Act of 1934 </p>
<p align="center">As at February 23, 2005</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;">
<!--$$/page=-->
<A name="page_2"></a>
<p align="center"><b>SUBMITTED HEREWITH</b></p>
<p align="left"><u>Exhibits</u></p>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr bgcolor="#EEEEEE">
    <td width="5%" valign="top">&nbsp;</td>
    <td width="5%" valign="top"><a href="exhibit99-1.htm">99.1</a></td>
    <td><a href="exhibit99-1.htm">Audited Annual Consolidated Financial Statements
      for the Year ended September 30, 2004</a></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td></td>
  </tr>
  <tr bgcolor="#EEEEEE">
    <td valign="top">&nbsp;</td>
    <td valign="top"><a href="exhibit99-2.htm">99.2</a></td>
    <td><a href="exhibit99-2.htm">Management's Discussion and Analysis for the
      Year ended September 30, 2004</a></td>
  </tr>
</table>
<br>
<hr noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<!--$$/page=-->
<A name="page_3"></A>
<P 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: February 23, 2005</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>AUDITED ANNUAL CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2004
<TEXT>
<!DOCTYPE HTML PUBLIC "fs">


<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<br>
  CONSOLIDATED FINANCIAL STATEMENTS</P>
<P align="center">
SEPTEMBER 30, 2004</P>
<P align="center">
(Expressed in Canadian Dollars)</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_2"></A>
<p><img src="kpmg.gif" width="153" height="59"> </p>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="top">&nbsp;</td>
    <td width="35%" valign="top"><b>KPMG LLP<br>
      Chartered Accountants</b><br>
      PO Box 10426 777 Dunsmuir Street<br>
      Vancouver BC V7Y 1K3<br>
      Canada<br></td>
    <td width="35%" valign="top">Telephone (604) 691-3000<br>
      Fax (604) 691-3031<br>
      Internet www.kpmg.ca</td>
  </tr>
</table>
<p><b><font size="4">AUDITORS' REPORT TO THE SHAREHOLDERS</font></b></p>
<P align="justify"> We have audited the consolidated balance sheets of Taseko
  Mines Limited as at September 30, 2004 and 2003 and the consolidated statements
  of operations, deficit and cash flows for each of the years in the three year
  period ended September 30, 2004. These financial statements are the responsibility
  of the Company's management. Our responsibility is to express an opinion on
  these financial statements based on our audits.</P>
<P align="justify"> We conducted our audits in accordance with Canadian generally
  accepted auditing standards. Those standards require that we plan and perform
  an audit to obtain reasonable assurance whether the financial statements are
  free of material misstatement. An audit includes examining, on a test basis,
  evidence supporting the amounts and disclosures in the financial statements.
  An audit also includes assessing the accounting principles used and significant
  estimates made by management, as well as evaluating the overall financial statement
  presentation.</P>
<P align="justify"> In our opinion, these consolidated financial statements present
  fairly, in all material respects, the financial position of the Company as at
  September 30, 2004 and 2003 and the results of its operations and its cash flows
  for each of the years in the three year period ended September 30, 2004 in accordance
  with Canadian generally accepted accounting principles.</P>
<P><b>KPMG LLP (signed)</b><br>
  Chartered Accountants</P>
<p>Vancouver, Canada</p>
<p> January 24, 2005, except as to note 12(e)<br>
  &nbsp;&nbsp;&nbsp;which is as of February 3, 2005 </p>
<p align="center"><font size="1">KPMG LLP, a Canadian limited liability partnership
  is the Canadian<br>
  member firm of KPMG International, a Swiss cooperative.</font></p>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_3"></A>
<P> <B>TASEKO MINES LIMITED</B><br>
  <B>Consolidated Balance Sheets</B><br>
  (Expressed in Canadian Dollars)</P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR valign="bottom">
    <TD align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=right nowrap style="border-top-width:1px;border-top-style:solid">
      September 30, </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=right nowrap style="border-top-width:1px;border-top-style:solid">
      September 30, </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 2004 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 2003 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&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 valign="bottom">
    <TD align=left> <B>Assets</B>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&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>
  </TR>
  <TR valign="bottom">
    <TD align=left> <B>Current assets</B>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Cash and equivalents&nbsp;
    </TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> 14,892,947 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> 2,424,221 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Amounts receivable&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 2,766,184 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 1,049,093 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Advances to related parties
      (note 11)&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 194,857 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 224,538 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Supplies inventory&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 2,277,397 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 2,278,096 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> &nbsp; &nbsp; &nbsp; &nbsp;Prepaid expenses&nbsp;
    </TD>
    <TD width=1% align=left 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"> 210,015 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 134,207 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 20,341,400 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 6,110,155 </TD>
    <TD width=2% align=left>&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>
  </TR>
  <TR valign="bottom">
    <TD align=left> <B>Property, plant and equipment </B>(note 5)&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 35,759,634 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 9,554,186 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> <B>Reclamation deposits </B>(notes 4, 6(a) and 6(d))&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 17,647,056 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 16,757,274 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <B>Promissory note </B>(note 6(f))&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 68,172,380 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> <B>Mineral property interests </B>(note 6)&nbsp;
    </TD>
    <TD width=1% align=left 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"> 3,000 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 28,813,296 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> <B>&#36;</B>&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> <B>141,923,470</B> </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> <B>&#36;</B>&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> <B>61,234,911</B> </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double">&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>
  </TR>
  <TR valign="bottom">
    <TD align=left> <B>Liabilities and Shareholders' Equity</B>&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&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>
  </TR>
  <TR valign="bottom">
    <TD align=left> <B>Current liabilities</B>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Operating line of credit
      (note 7)&nbsp; </TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> 1,857,740 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> 1,993,396 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap> &nbsp; &nbsp; &nbsp; &nbsp;Accounts payable and accrued
      liabilities&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 14,578,172 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 1,857,740 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> &nbsp; &nbsp; &nbsp; &nbsp;Income taxes (note 9)&nbsp;
    </TD>
    <TD width=1% align=left 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"> 23,744,000 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left 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"> &#8211; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 40,179,912 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 3,851,136 </TD>
    <TD width=2% align=left>&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>
  </TR>
  <TR valign="bottom">
    <TD align=left> <B>Reclamation liability </B>(note 5)&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 32,700,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 32,700,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> <B>Royalty obligation </B>(note 6(f))&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 67,357,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> <B>Deferred revenue </B>(note 6(f))&nbsp;
    </TD>
    <TD width=1% align=left 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"> 1,750,000 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left 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"> &#8211; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left 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"> 141,986,912 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 36,551,136 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
  </TR>
  <TR 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>
  </TR>
  <TR valign="bottom">
    <TD align=left> <B>Shareholders' equity</B>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Share capital (note 8)&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 150,481,429 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 99,446,319 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Convertible debenture
      (note 8(c))&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 20,577,225 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 19,599,520 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Tracking preferred shares
      (note 4)&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 26,641,948 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 26,641,948 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Contributed surplus (note
      8(f))&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 4,947,588 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 65,344 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> &nbsp; &nbsp; &nbsp; &nbsp;Deficit&nbsp; </TD>
    <TD width=1% align=left 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"> (202,711,632 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"> )&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> (121,069,356 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"> )&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (63,442 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 24,683,775 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Nature of operations (note 1)&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Commitments and contingencies (note 6)&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> Subsequent events (notes 5, 6, 8 and 12)&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=12% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=12% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> <B>&#36;</B>&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> <B>141,923,470</B> </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> <B>&#36;</B>&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> <B>61,234,911</B> </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp; </TD>
  </TR>
</TABLE>
<BR>
See accompanying notes to consolidated financial statements.
<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 valign="bottom">
    <TD width=50% align=left> <I>/s/ Ronald W. Thiessen</I>&nbsp; </TD>
    <TD width=50% align=left> <I>/s/ Jeffrey R. Mason</I>&nbsp; </TD>
  </TR>
  <TR>
    <TD width="50%">&nbsp; </TD>
    <TD width="50%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=50% align=left> Ronald W. Thiessen&nbsp; </TD>
    <TD width=50% align=left> Jeffrey R. Mason&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=50% align=left> Director&nbsp; </TD>
    <TD width=50% align=left> Director&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> <B>TASEKO MINES LIMITED</B><br>
  <B>Consolidated Statements of Operations</B><br>
  (Expressed in Canadian Dollars)</P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR valign="bottom">
    <TD align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD colspan=7 align=center style="border-top-width:1px;border-top-style:solid"> Years ended September 30</TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> <B>2004</B> </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> <B>2003</B> </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> <B>2002</B> </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
  </TR>
  <TR>
    <TD style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <B>Expenses</B>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Conference and travel&nbsp; </TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> 93,071 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> 43,398 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> 44,429 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Consulting&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 251,790 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 178,104 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 133,672 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Corporation taxes&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 45,352 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 76,135 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 577,228 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Depreciation&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 723,249 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 711,170 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 714,065 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Exploration (schedule)&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 4,457,600 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 2,029,529 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 2,071,885 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Gibraltar mine refinery project
      (schedule)&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 500,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 1,698,826 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Gibraltar mine restart project
      (schedule)&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 14,982,008 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Interest and finance charges (note
      6(d))&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 499,294 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 201,942 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 507,790 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Legal, accounting and audit&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 458,238 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 169,356 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 334,492 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Office and administration&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 599,450 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 292,853 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 247,061 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Premium paid for acquisition of&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;Gibraltar Reclamation Trust Limited Partnership (note 6(d))&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 5,095,249 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Property investigation&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 141,067 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Shareholder communication&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 657,342 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 74,687 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 90,835 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Stock-based compensation (note
      8(d))&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 5,172,244 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 65,344 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Trust and filing&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 88,530 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 21,113 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 36,802 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left 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"> 33,264,484 </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left 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"> 4,363,631 </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left 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"> 6,457,085 </TD>
    <TD width=2% align=left 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>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> <B>Other items</B>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Interest and other income&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 5,154,209 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 721,480 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 551,842 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Gain on sale of property, plant
      and equipment&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 131,638 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 1,314 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Write down of mineral property
      acquisition costs (note 6(c))&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (28,810,296 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (600,000 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Income taxes (note (9))&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (23,744,000 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left 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"> (47,400,087 </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> )&nbsp; </TD>
    <TD width=1% align=left 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"> 853,118 </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left 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"> (46,844 </TD>
    <TD width=2% align=left 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>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-bottom-width:4px;border-bottom-style:double"> <B>Loss for the year</B>&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> (80,664,571 </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double"> )&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> (3,510,513 </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double"> )&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> (6,503,929 </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double"> )&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>
  </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>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left style="border-bottom-width:4px;border-bottom-style:double"> <B>Basic and diluted loss per common share </B>(notes 3(h)
      and 8)&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> (1.09 </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double"> )&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> (0.09 </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double"> )&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> (0.24 </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double"> )&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>
  </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>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-bottom-width:4px;border-bottom-style:double"> <B>Weighted average number of common shares outstanding</B>&nbsp;
    </TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> 75,113,426 </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> 46,984,378 </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> 30,338,098 </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp; </TD>
  </TR>
</TABLE>
<BR>
<P> <B>Consolidated Statements of Deficit</B><br>
  (Expressed in Canadian Dollars)</P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR valign="bottom">
    <TD align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid"> </TD>
    <TD colspan=7 align=center style="border-top-width:1px;border-top-style:solid"> Years ended September 30 </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid"> </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> <B>2004</B> </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid"> </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> <B>2003</B> </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid"> </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> <B>2002</B> </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
  </TR>
  <TR>
    <TD style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> <B>Deficit, beginning of year</B>&nbsp; </TD>
    <TD width=1% align=right> &#36; </TD>
    <TD width=12% align=right> (121,069,356 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=right> &#36; </TD>
    <TD width=12% align=right> (116,670,020 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=right> &#36; </TD>
    <TD width=12% align=right> (109,358,070 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Loss for the year&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> (80,664,571 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> (3,510,513 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> (6,503,929 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left nowrap style="border-bottom-width:1px;border-bottom-style:solid">
      Accretion expense on convertible debenture (note 8(c))&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> (977,705 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"> )&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> (888,823 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"> )&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> (808,021 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"> )&nbsp; </TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&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 valign="bottom" bgcolor="#E6EFFF">
    <TD align=left style="border-bottom-width:4px;border-bottom-style:double"> <B>Deficit, end of year</B>&nbsp; </TD>
    <TD width=1% align=right style="border-bottom-width:4px;border-bottom-style:double"> &#36; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> (202,711,632 </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double"> )&nbsp; </TD>
    <TD width=1% align=right style="border-bottom-width:4px;border-bottom-style:double"> &#36; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> (121,069,356 </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double"> )&nbsp; </TD>
    <TD width=1% align=right style="border-bottom-width:4px;border-bottom-style:double"> &#36; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> (116,670,020 </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double"> )&nbsp; </TD>
  </TR>
</TABLE>
<br>
See accompanying notes to consolidated financial statements. <br>
<br>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_5"></A>
<P> <B>TASEKO MINES LIMITED</B><br>
  <B>Consolidated Statements of Cash Flows</B><br>
  (Expressed in Canadian Dollars)</P>
<TABLE style="font-size:9pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR valign="bottom">
    <TD align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD colspan=7 align=center style="border-top-width:1px;border-top-style:solid"> Years ended September 30</TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <B>Cash provided by (used for):</B>&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"><strong> 2004 </strong></TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"><strong> 2003 </strong></TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"><strong> 2002 </strong></TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
  </TR>
  <TR>
    <TD style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <B>Operating activities</B>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Loss for the year&nbsp;
    </TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> (80,664,571 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> (3,510,513 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> (6,503,929 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Items not involving cash&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Accrued interest on reclamation deposits&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (488,471 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (680,750 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (546,632 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Depreciation&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 723,249 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 711,170 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 714,065 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Stock-based compensation&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 5,172,244 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 65,344 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Income taxes&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 23,744,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Write down of mineral property acquisition costs&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 28,810,296 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 600,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Gain on sale of property, plant and equipment&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (131,638 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (1,314 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Acquisition premium paid for Gibraltar Refinery (2002) Ltd.&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 314,330 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Acquisition premium paid for remaining business of&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left nowrap> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Gibraltar Engineering
      Services Limited Partnership (note 6(d))&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 500,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Acquisition premium paid for&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Gibraltar Reclamation Trust
      Limited Partnership (note (6(d))&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 5,095,249 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Shares issued for loan guarantee&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 450,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 400,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Shares issued pursuant to farmout agreement (note 6(e))&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 935,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Changes in non-cash operating
      working capital&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;Amounts receivable&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (1,717,091 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (712,846 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (104,815 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;Supplies inventory&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 699 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 4,858 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 117,046 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;Prepaid expenses&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (75,808 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (30,576 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (76,448 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;Accounts payable and accrued liabilities&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 12,720,432 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 288,452 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 764,478 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Cash used by operating activities&nbsp;
    </TD>
    <TD width=1% align=left 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"> (5,294,772 </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> )&nbsp; </TD>
    <TD width=1% align=left 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"> (3,496,499 </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> )&nbsp; </TD>
    <TD width=1% align=left 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"> (4,323,219 </TD>
    <TD width=2% align=left 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>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> <B>Investing activities</B>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Cash paid on acquisition
      of Harmony Gold Property&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (2,230,000 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Purchase of property, plant
      and equipment&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (26,928,697 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (135,193 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Proceeds on sale of mineral
      property interests&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 1 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Proceeds received on sale
      of property, plant and equipment&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 160,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 9,802 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Funds advanced on promissory
      note&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (68,172,380 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Reclamation deposits&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (401,311 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 2,500,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Cash provided (used) by
      investing activities&nbsp; </TD>
    <TD width=1% align=left 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"> (95,502,388 </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> )&nbsp; </TD>
    <TD width=1% align=left 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"> 2,524,807 </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left 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"> (2,220,197 </TD>
    <TD width=2% align=left 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>
  </TR>
  <TR valign="bottom">
    <TD align=left> <B>Financing activities</B>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Operating line of credit&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (135,656 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (6,604 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 2,000,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Advances from related parties&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 29,681 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (3,693,706 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 2,185,389 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Advances from Gibraltar
      Engineering Services Limited Partnership&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 3,000,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 1,849,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Advances from Gibraltar
      Reclamation Trust Limited Partnership&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 17,097,792 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Proceeds on sale of royalty&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 67,357,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Common shares issued for
      cash, net of issue costs&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 27,167,069 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 4,057,119 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 465,835 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">
    <TD align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Cash provided by financing
      activities&nbsp; </TD>
    <TD width=1% align=left 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"> 111,515,886 </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left 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"> 3,356,809 </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left 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"> 6,500,224 </TD>
    <TD width=2% align=left 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>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> <B>Increase (decrease) in cash and equivalents</B>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 10,718,726 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 2,385,117 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (43,192 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> Cash and equivalents, beginning of year&nbsp; </TD>
    <TD width=1% align=left 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% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left 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% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left 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"> 82,296 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&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 valign="bottom">
    <TD align=left style="border-bottom-width:2px;border-bottom-style:solid"> <B>Cash and equivalents, end of year</B>&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:2px;border-bottom-style:solid"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:2px;border-bottom-style:solid"> 13,142,947 </TD>
    <TD width=2% align=left style="border-bottom-width:2px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:2px;border-bottom-style:solid"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:2px;border-bottom-style:solid"> 2,424,221 </TD>
    <TD width=2% align=left style="border-bottom-width:2px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:2px;border-bottom-style:solid"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:2px;border-bottom-style:solid"> 39,104 </TD>
    <TD width=2% align=left style="border-bottom-width:2px;border-bottom-style:solid">&nbsp; </TD>
  </TR>
</TABLE>
<BR>
Supplementary cash flow disclosures (note 10)
<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_6"></A>
<P> <B>TASEKO MINES LIMITED</B><br>
  <B>Consolidated Schedules of Exploration Expenses</B><br>
  (Expressed in Canadian Dollars)</P>
<TABLE style="font-size:9pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR valign="bottom">
    <TD align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid"> </TD>
    <TD colspan="7" align=center style="border-top-width:1px;border-top-style:solid"> Property</TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <B>Year ended September 30, 2004</B>&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid"> </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> Prosperity&nbsp; </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> Gibraltar&nbsp; </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=center style="border-top-width:1px;border-top-style:solid"> Harmony&nbsp; </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> Total&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width="1%" align="left" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="left" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="left" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="left" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <B>Exploration expenses</B>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp;Assays and analysis&nbsp; </TD>
    <TD width=1% align=left> &#36; </TD>
    <TD width=12% align=right> 18,867&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> 831,951&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> 11,786&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> 862,604&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp;Drilling&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 1,332,596&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 1,332,596&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp;Equipment rentals&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 5,283&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 26,198&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 31,481&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp;Geological&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 5,299&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 225,429&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 3,328&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 234,056&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp;Mine planning&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 37,612&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 464,351&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 27,597&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 529,560&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> &nbsp; &nbsp; &nbsp;Site activities, net&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 2,713&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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"> 1,464,280&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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"> 310&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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"> 1,467,303&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp; </TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Exploration expenses during the year&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 69,774&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 4,344,805&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 43,021&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 4,457,600&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> Cumulative expenses, beginning of year&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 41,576,410&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left style="border-bottom-width:4px;border-bottom-style:double"> Cumulative expenses, end of year&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> 41,646,184&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> 15,247,100&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> 70,338&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> 56,963,622&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid"> </TD>
    <TD colspan="7" align=center style="border-top-width:1px;border-top-style:solid"> Property</TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <B>Year ended September 30, 2003</B>&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid"> </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> Prosperity&nbsp; </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> Gibraltar&nbsp; </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=center style="border-top-width:1px;border-top-style:solid"> Harmony&nbsp; </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> Total&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width="1%" align="left" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="left" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="left" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="left" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <B>Exploration expenses</B>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp;Assays and analysis&nbsp; </TD>
    <TD width=1% align=left> &#36; </TD>
    <TD width=12% align=right> 27,727&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> 354&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> 3,177&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> 31,258&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp;Claim staking&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 500&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 500&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp;Drilling&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 439,950&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 439,950&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp;Equipment rentals&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 2,746&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 6,000&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 8,746&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp;Geological&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 3,965&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 174,508&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 1,309&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 179,782&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp;Mine planning&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 38,023&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 190,010&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 16,875&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 244,908&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> &nbsp; &nbsp; &nbsp;Site activities, net&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 16,039&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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"> 1,102,390&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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"> 1,124,385&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Exploration expenses during the year&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 88,500&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 1,913,712&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 27,317&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 2,029,529&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap style="border-bottom-width:1px;border-bottom-style:solid">
      Cumulative expenses, beginning of year&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 41,487,910&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid">
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&#8211;&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp; </TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-bottom-width:4px;border-bottom-style:double"> Cumulative expenses, end of year&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> 41,576,410&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> 10,902,295&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> 27,317&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> 52,506,022&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE style="font-size:9pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR valign="bottom">
    <TD align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD colspan="7" align=center style="border-top-width:1px;border-top-style:solid"> Property</TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=left style="border-top-width:1px;border-top-style:solid"> </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <B>Year ended September 30, 2002</B>&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> Prosperity </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> Gibraltar&nbsp; </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=center style="border-top-width:1px;border-top-style:solid"> Westgarde </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> Total </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <B>Exploration expenses</B>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp;Assays and analysis&nbsp; </TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> 7,352 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> 367&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> 7,719 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp;Equipment rentals&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 6,546 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 6,546 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp;Geological&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 39,830&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 39,830 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp;Mine planning&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (50,800 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 215,900&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 165,100 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> &nbsp; &nbsp; &nbsp;Site activities&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 1,044 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 2,081,645&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 2,082,689 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap style="border-bottom-width:1px;border-bottom-style:solid">
      &nbsp; &nbsp; &nbsp;Recovery of exploration expenses incurred on sale (note
      4)&nbsp; </TD>
    <TD width=1% align=left 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"> &#8211; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left 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"> &#8211;&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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"> (229,999 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"> )&nbsp; </TD>
    <TD width=1% align=left 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"> (229,999 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"> )&nbsp; </TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&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 valign="bottom">
    <TD align=left> Exploration expenses (recovery) during the year&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (35,858 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 2,337,742&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> (229,999 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 2,071,885 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> Cumulative expenses, beginning of year&nbsp; </TD>
    <TD width=1% align=left 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"> 41,523,768 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left 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"> 6,650,841&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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"> 210,976 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left 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"> 48,385,585 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&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 valign="bottom" bgcolor="#E6EFFF">
    <TD align=left style="border-bottom-width:4px;border-bottom-style:double"> Cumulative expenses, end of year&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> 41,487,910 </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> 8,988,583&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> (19,023 </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double"> )&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> 50,457,470 </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp; </TD>
  </TR>
</TABLE>
<BR>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_7"></A>
<P> <B>TASEKO MINES LIMITED</B><br>
  <B>Consolidated Schedules of Gibraltar Mine Restart Project Expenses</B><br>
  (Expressed in Canadian Dollars)</P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR valign="bottom">
    <TD align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD colspan=7 align=center style="border-top-width:1px;border-top-style:solid"> Years ended September 30&nbsp; </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap> <B>Gibraltar Mine Restart Project Expenses</B>&nbsp;
    </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;<B>2004</B>&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=12% align=right style="border-top-width:1px;border-top-style:solid"> <B>2003</B>&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=12% align=right style="border-top-width:1px;border-top-style:solid"> <B>2002</B>&nbsp; </TD>
    <TD width=2% align=center style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width="1%" align="left" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" align="left" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="left" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" align="left" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="left" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Mine&nbsp; </TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> 6,421,828&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> &nbsp;&#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Mill&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 5,432,869&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &nbsp; &nbsp;&#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Site services&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 1,657,567&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &nbsp; &nbsp;&#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Administration&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 916,866&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &nbsp; &nbsp;&#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Warehouse&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 311,099&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &nbsp; &nbsp;&#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Engineering&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 125,865&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &nbsp; &nbsp;&#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> Environmental&nbsp; </TD>
    <TD width=1% align=left 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"> 115,914&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> &nbsp; &nbsp;&#8211;&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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"> &#8211;&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Expenses during the year&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 14,982,008&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &nbsp; &nbsp;&#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &nbsp; &nbsp;&#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> Cumulative expenses, beginning of year&nbsp; </TD>
    <TD width=1% align=left 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"> &#8211;&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> &nbsp; &nbsp;&#8211;&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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"> &#8211;&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp; </TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%" align="left">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-bottom-width:4px;border-bottom-style:double"> Cumulative expenses, end of year&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> 14,982,008&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> &nbsp;&#8211;&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> &nbsp;&#8211;&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<B>Consolidated Schedules of Gibraltar Mine Refinery Project Expenses</B><br>
(Expressed in Canadian Dollars)<br>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR valign="bottom">
    <TD align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid"> </TD>
    <TD colspan=7 align=center style="border-top-width:1px;border-top-style:solid"> Years ended September 30&nbsp; </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <B>Gibraltar Mine Refinery Project Expenses</B>&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid"> </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> <B>2004</B>&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=12% align=right style="border-top-width:1px;border-top-style:solid"> <B>2003</B>&nbsp; </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> <B>2002</B>&nbsp; </TD>
    <TD width=2% align=right style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width="1%" align="left" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="left" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="1%" align="left" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="12%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width="2%" style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Concentrate production&nbsp; </TD>
    <TD width=1% align=left>&#36; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=center>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Engineering&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 403,494&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Environmental and permitting&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right>&#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 57,988&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Interest&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right>&#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 73,289&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Metallurgy&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right>&#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 10,883&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Pilot plant testwork&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right>&#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 290,680&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Support services&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right>&#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 548,162&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Acquisition premium paid for Gibraltar Refinery (2002) Ltd.&nbsp;
    </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 314,330&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left nowrap style="border-bottom-width:1px;border-bottom-style:solid">
      Acquisition premium paid for remaining business of GESL Partnership&nbsp;
    </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid">
      &#8211;&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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"> 500,000&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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"> &#8211;&nbsp; </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="left">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Expenses during the year&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right>&#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 500,000&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 1,698,826&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> Cumulative expenses, beginning of year&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 5,770,768&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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"> 5,270,768&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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"> 3,571,942&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp; </TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" align="left">&nbsp;</TD>
    <TD width="12%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-bottom-width:4px;border-bottom-style:double"> Cumulative expenses, end of year&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> 5,770,768&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> 5,770,768&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width=1% align=left style="border-bottom-width:4px;border-bottom-style:double"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> 5,270,768&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<B><A name="page_1"></A></B>
<p style="border-bottom-width:1px;border-bottom-style:solid"><B>TASEKO MINES LIMITED</B> <br>
  Notes to Consolidated Financial Statements<br>
  For the year ended September 30, 2004<br>
  (Expressed in Canadian Dollars) </p>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><b>1. </b></td>
    <td><b>Nature of operations </b></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">Taseko Mines Limited ("Taseko" or the "Company")
        is a public company incorporated under the laws of the Province of British
        Columbia. At September 30, 2004, the Company's principal business activities
        relate to the restart of operations of the Gibraltar Copper Mine, and
        exploration on the Company&#8217;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. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">The recoverability of the amounts shown for the
        Gibraltar mine and related plant and equipment and supplies inventory
        is dependent upon the existence of economically recoverable mineral resources
        and future profitable production or proceeds from the disposition of the
        mine. The Company is exploring its Prosperity and Harmony mineral properties
        and has not yet determined the existence of economically recoverable reserves.
      </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">The Company&#8217;s continuing operations 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.</div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div 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 is actively pursuing
        restart of the Company&#8217;s operations at the Gibraltar mine and is
        continuing with its exploration programs. However, there can be no assurances
        that the Company will obtain sufficient financial resources and/or achieve
        profitability or positive cash flows. If the Company is unable to obtain
        adequate additional financing or successful restart, 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. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><b>2. </b></td>
    <td> <b>Basis of presentation and principles of consolidation </b></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div 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 private company subsidiaries, Gibraltar Mines Ltd. (note
        6(a)), 688888 BC Ltd., and Cuisson Lake Mines Ltd., and its interest in
        Gibraltar Reclamation Trust Limited Partnership (&#8220;GRT Partnership&#8221;)
        (note 6(d)). All material intercompany accounts and transactions have
        been eliminated. </div></td>
  </tr>
</table>
<br>
<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>TASEKO MINES LIMITED</B> <br>
  Notes to Consolidated Financial Statements<br>
  For the year ended September 30, 2004<br>
  (Expressed in Canadian Dollars)</P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><b>3. </b></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> <div align="justify"><i>Cash and equivalents </i></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div 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. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top"><i>(b) </i></td>
    <td> <div align="justify"><i>Supplies inventory </i></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify">Supplies inventory is reported at the lower of moving
        average cost and net realizable value. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top"><i>(c) </i></td>
    <td> <div align="justify"><i>Property, plant and equipment </i></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div 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. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top"><i>(d) </i></td>
    <td> <div align="justify"><i>Mineral property interests </i></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">The Company capitalizes 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. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify">All costs incurred by the Company during the standby
        care and maintenance and restart period at the Gibraltar mine are expensed
        as incurred. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div 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. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div 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. </div></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 style="border-bottom-width:1px;border-bottom-style:solid"><B>TASEKO MINES LIMITED</B> <br>
  Notes to Consolidated Financial Statements<br>
  For the year ended September 30, 2004<br>
  (Expressed in Canadian Dollars)</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">Administrative expenditures are expensed as incurred.
      </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td 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),
        and does not necessarily reflect present or future values. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top"><i>(e) </i></td>
    <td> <div align="justify"><i>Share capital</i><b><i> </i></b></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div 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. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div 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. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top"><i>(f) </i></td>
    <td> <div align="justify"><i>Stock-based compensation </i></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">The Company has a share option plan which is described
        in note 8(d). The Company accounts for all non-cash stock-based payments
        and awards that are direct awards of stock, that call for settlement in
        cash or other assets, or that are stock appreciation rights which call
        for settlement by the issuance of equity instruments, granted on or after
        October 1, 2002, using the fair value based method.</div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify">Under the fair value based method, stock-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 stock-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 stock-based payments that are fully
        vested and non-forfeitable at the grant date is measured and recognized
        at that date.</div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div 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. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div 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. </div></td>
  </tr>
</table>
<br>
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<A name="page_4"></A>
<P style="border-bottom-width:1px;border-bottom-style:solid"><B>TASEKO MINES LIMITED</B> <br>
  Notes to Consolidated Financial Statements<br>
  For the year ended September 30, 2004<br>
  (Expressed in Canadian Dollars</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><div align="justify"><i>Income taxes</i></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div 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. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top"><i>(h) </i></td>
    <td> <div align="justify"><i>Loss per common share</i><b><i> </i></b></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div 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. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div 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. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">In the Company&#8217;s case, diluted loss per share
        for all years presented 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><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top"><i>(i) </i></td>
    <td><div align="justify"><i>Fair value of financial instruments </i></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">The carrying amounts of cash and equivalents, amounts
        receivable, reclamation deposits, operating line of credit, and accounts
        payable and accrued liabilities, approximate their fair values due to
        their short term nature.</div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">At September 30, 2004, the carrying values of the
        promissory note and the royalty obligation approximate their fair values,
        due to the timing of the transaction. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">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. </div></td>
  </tr>
</table>
<br>
<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>TASEKO MINES LIMITED</B> <br>
  Notes to Consolidated Financial Statements<br>
  For the year ended September 30, 2004<br>
  (Expressed in Canadian Dollars)</P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><i>(j) </i></td>
    <td><div align="justify"><i>Use of estimates </i></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">The preparation 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, income taxes, rates for depreciation and the assumptions
        used in computing share-based compensation. Actual results could differ
        from these estimates. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top"><i>(k) </i></td>
    <td> <div align="justify"><i>Segment disclosures </i></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div 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. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top"><i>(l) </i></td>
    <td> <div align="justify"><i>Comparative figures </i></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify">Certain of the prior years&#8217; comparative figures
        have been restated to conform with the presentation adopted for the current
        period. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top"><b>4. </b></td>
    <td> <div align="justify"><b>Arrangement agreement </b></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">In October 2001, the Company and its subsidiary
        Gibraltar Mines Ltd. (&#8220;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 &#36;2.23 million cash. The tracking preferred
        shares are designed to track and capture the value of the Harmony Gold
        Property and will be redeemed for common shares of Taseko upon a realization
        event, such as a sale to a third party or commercial production at the
        Harmony Gold Property, or at the option of Gibraltar, if a realization
        event has not occurred within ten years. Accordingly, the tracking preferred
        shares have been classified within shareholders&#8217; equity on the consolidated
        balance sheet. </div></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 style="border-bottom-width:1px;border-bottom-style:solid"><B>TASEKO MINES LIMITED</B> <br>
  Notes to Consolidated Financial Statements<br>
  For the year ended September 30, 2004<br>
  (Expressed in Canadian Dollars)</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">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: </div></td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> <B>Assets acquired</B>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> <B>Amount</B>&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &nbsp; &nbsp;Property and equipment&nbsp;
    </TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 8,488&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp;Reclamation deposit&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 175,000&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &nbsp; &nbsp;Mineral property interests&nbsp;
    </TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 28,811,296&nbsp;
    </TD>
    <TD width=2% align=right bgcolor="#E6EFFF" 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%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> &#36;&nbsp;
    </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 28,994,784&nbsp;
    </TD>
    <TD width=2% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> <B>Consideration given</B>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &nbsp; &nbsp;Cash&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 2,230,000&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp;12,483,916 tracking preferred shares of Gibraltar&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 26,641,948&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left nowrap bgcolor="#E6EFFF"> &nbsp; &nbsp;114,800 common shares
      of the Company to a dissenting shareholder&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 122,836&nbsp;
    </TD>
    <TD width=2% align=right bgcolor="#E6EFFF" 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%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> &#36;&nbsp;
    </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 28,994,784&nbsp;
    </TD>
    <TD width=2% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td><div align="justify">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 &#36;3.39 and escalating by &#36;0.25 per
        year (&#36;3.89 per share as at September 30, 2004). 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 &#36;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. </div></td>
  </tr>
</table>
<br>
<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>TASEKO MINES LIMITED</B> <br>
  Notes to Consolidated Financial Statements<br>
  For the year ended September 30, 2004<br>
  (Expressed in Canadian Dollars)</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 valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD colspan=7 align=center style="border-bottom-width:1px;border-bottom-style:solid"> September 30, 2004</TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD colspan=7 align=center style="border-bottom-width:1px;border-bottom-style:solid"> September 30, 2003</TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> <B>Equipment - Prosperity</B>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=10% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=left>&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=10% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> <B>Property and Harmony</B>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=10% align=left>&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=1% align=right>&nbsp; </TD>
    <TD width=10% align=right>Accumulated</TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=right> Net book&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=10% align=left>&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=1% align=right>&nbsp; </TD>
    <TD width=10% align=right>Accumulated</TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=right> Net book&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> <B>Property</B>&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=10% align=right style="border-bottom-width:1px;border-bottom-style:solid"> Cost&nbsp; </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=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=10% align=right style="border-bottom-width:1px;border-bottom-style:solid"> Cost&nbsp; </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=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> Field&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 11,879&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 10,677&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 1,202&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 11,879&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 10,162&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 1,717&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> Computer and office&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=10% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 15,172&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=10% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 14,262&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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"> 910&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=10% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 15,172&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=10% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 13,871&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=10% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 1,301&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> &#36; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 27,051&nbsp;
    </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> &#36;&nbsp;
    </TD>
    <TD width=10% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 24,939&nbsp;
    </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> &#36;&nbsp;
    </TD>
    <TD width=10% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 2,112&nbsp;
    </TD>
    <TD width=2% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> &#36; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 27,051&nbsp;
    </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> &#36;&nbsp;
    </TD>
    <TD width=10% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 24,033&nbsp;
    </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> &#36;&nbsp;
    </TD>
    <TD width=10% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 3,018&nbsp;
    </TD>
    <TD width=2% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%">&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="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 valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> <B>Gibraltar Mine</B>&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=10% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=right bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF">Accumulated</TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> Net book&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=10% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=right bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF">Accumulated</TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> Net book&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> <B>Plant and equipment</B>&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=10% align=right style="border-bottom-width:1px;border-bottom-style:solid"> Cost&nbsp; </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=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=10% align=right style="border-bottom-width:1px;border-bottom-style:solid"> Cost&nbsp; </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=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left nowrap bgcolor="#E6EFFF"> Buildings and equipment&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 5,931,580&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 492,030&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 5,439,550&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 5,931,580&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 416,225&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 5,515,355&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> Mine equipment&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=10% align=right> 32,458,793&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=right> 2,544,160&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=right> 29,914,633&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=10% align=right> 5,589,193&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=right> 2,063,493&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=right> 3,525,700&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> Plant and equipment&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 975,493&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 666,369&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 309,124&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 962,061&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 541,935&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 420,126&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> Vehicles&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=10% align=right> 198,519&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=right> 115,426&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=right> 83,093&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=10% align=right> 152,854&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=right> 90,680&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=right> 62,174&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> Computer equipment&nbsp;
    </TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=10% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 101,162&nbsp;
    </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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"> 90,040&nbsp;
    </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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"> 11,122&nbsp;
    </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=10% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 101,162&nbsp;
    </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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&nbsp;
    </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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&nbsp;
    </TD>
    <TD width=2% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=right style="border-bottom-width:1px;border-bottom-style:solid"> &#36; </TD>
    <TD width=10% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 39,665,547&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> &#36;&nbsp; </TD>
    <TD width=10% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 3,908,025&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> &#36;&nbsp; </TD>
    <TD width=10% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 35,757,522&nbsp; </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"> &#36; </TD>
    <TD width=10% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 12,736,850&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> &#36;&nbsp; </TD>
    <TD width=10% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 3,185,682&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> &#36;&nbsp; </TD>
    <TD width=10% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 9,551,168&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> <B>Total property, plant</B>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=10% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=left>&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=10% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF" style="border-bottom-width:3px;border-bottom-style:double"> <B>and equipment</B>&nbsp;
    </TD>
    <TD width=1% align=right bgcolor="#E6EFFF" style="border-bottom-width:3px;border-bottom-style:double"> &#36; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF" style="border-bottom-width:3px;border-bottom-style:double"> 39,692,598&nbsp;
    </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:3px;border-bottom-style:double">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:3px;border-bottom-style:double"> &#36;&nbsp;
    </TD>
    <TD width=10% align=right bgcolor="#E6EFFF" style="border-bottom-width:3px;border-bottom-style:double"> 3,932,964&nbsp;
    </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:3px;border-bottom-style:double">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:3px;border-bottom-style:double"> &#36;&nbsp;
    </TD>
    <TD width=10% align=right bgcolor="#E6EFFF" style="border-bottom-width:3px;border-bottom-style:double"> 35,759,634&nbsp;
    </TD>
    <TD width=2% align=right bgcolor="#E6EFFF" style="border-bottom-width:3px;border-bottom-style:double">&nbsp;</TD>
    <TD width=1% align=right bgcolor="#E6EFFF" style="border-bottom-width:3px;border-bottom-style:double"> &#36; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF" style="border-bottom-width:3px;border-bottom-style:double"> 12,763,901&nbsp;
    </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:3px;border-bottom-style:double">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:3px;border-bottom-style:double"> &#36;&nbsp;
    </TD>
    <TD width=10% align=right bgcolor="#E6EFFF" style="border-bottom-width:3px;border-bottom-style:double"> 3,209,715&nbsp;
    </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:3px;border-bottom-style:double">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:3px;border-bottom-style:double"> &#36;&nbsp;
    </TD>
    <TD width=10% align=right bgcolor="#E6EFFF" style="border-bottom-width:3px;border-bottom-style:double"> 9,554,186&nbsp;
    </TD>
    <TD width=2% align=right bgcolor="#E6EFFF" style="border-bottom-width:3px;border-bottom-style:double">&nbsp;</TD>
  </TR>
</TABLE>
<div align="justify"><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 certain equipment which, when
          taken at market value and combined with reclamation deposits (approximately
          &#36;17.6 million at September 30, 2004), provide the Government of
          British Columbia with the required security for the estimated reclamation
          liability on the Gibraltar mine of &#36;32.7 million. </div></td>
    </tr>
    <tr>
      <td valign="top">&nbsp;</td>
      <td><div align="justify"></div></td>
    </tr>
    <tr>
      <td valign="top">&nbsp;</td>
      <td><div align="justify">In March 2004, the Company purchased a mining shovel
          for approximately US&#36;10.1 million (&#36;13.0 million). In May 2004,
          the Company purchased five mine haul trucks for approximately US&#36;8.2
          million (&#36;10.7 million), of which US&#36;4.9 million (&#36;6.4 million)
          had been paid to September 30, 2004. Subsequent to September 30, 2004,
          the Company paid the remaining US&#36;3.3 million (&#36;4.3 million)
          to complete the purchase of the five mine haul trucks. Also subsequent
          to September 30, 2004, the Company sold the mining shovel and the five
          haul trucks for approximately US&#36;18.3 million (&#36;22.0 million),
          of which US&#36;15.6 million (&#36;18.8 million) was received in November
          2004. The purchaser leased the shovel and trucks to a subsidiary of
          Ledcor CMI Ltd. ("Ledcor"), the Company's joint venture partner at the
          Gibraltar mine (note 6(a)), and this equipment forms part of Ledcor's
          contribution to the joint venture. </div></td>
    </tr>
  </table>
  <br>
</div>
<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>TASEKO MINES LIMITED</B> <br>
  Notes to Consolidated Financial Statements<br>
  For the year ended September 30, 2004<br>
  (Expressed in Canadian Dollars)</P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><b>6. </b></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 valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> September 30,&nbsp; </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> September 30,&nbsp; </TD>
    <TD width=2% align=right style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left 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&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> Gibraltar Copper Mine (note 6(a))&nbsp;
    </TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 1,000&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 1,000&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left nowrap> Prosperity Gold-Copper Property (note 6(b))&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 1,000&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 1,000&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> Harmony Gold Property
      (note 6(c))&nbsp; </TD>
    <TD width=1% align=left 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"> 1,000&nbsp;
    </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 28,811,296&nbsp;
    </TD>
    <TD width=2% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=right style="border-bottom-width:1px;border-bottom-style:solid"> <B>&#36;</B>&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> <B>3,000</B>&nbsp; </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"> <B>&#36;</B>&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> <B>28,813,296</B>&nbsp;
    </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td><i>(a) Gibraltar Copper Mine </i></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">In July 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 &#36;3.3 million. The acquisition included plant and equipment and
        supplies inventory of the Gibraltar mine, and &#36;8 million of funds
        set aside for future reclamation. As part of its 1999 operating permits,
        the Company had agreed to incur a total of &#36;4 million on reclamation
        and environmental programs during the six year period July 1999 to July
        2005. The Gibraltar mine final reclamation and closure plan is updated
        every five years. The most recent reclamation plan and closure report
        was approved by the British Columbia Ministry of Energy and Mines in 2004.
        Pursuant to this approved closure plan, the Ministry agreed that the Company
        had satisfied the &#36;4 million reclamation obligation required under
        the 1999 operating permits. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">The agreement contained certain indemnification
        clauses. The &#36;8 million of funds set aside for future reclamation
        were considered a "Qualified Environmental Trust" for Canadian income
        tax purposes. During the year ended September 30, 2003, the Government
        of British Columbia released these funds from the Trust, which resulted
        in an income inclusion to the Company, and consequently resulted the Company
        utilizing &#36;3.57 million of tax pools otherwise available to it. The
        Company has made claim to BWCL for this estimated tax liability under
        the indemnification terms of the agreement. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">During the year ended September 30, 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 (using CESL technology)
        at the Gibraltar mine. Expenses incurred in excess of the &#36;2.7 million
        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)). </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div 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&#36;0.9 million for services rendered
        in fiscal 2001 and 2002 (which has been paid) and a second payment of
        US&#36;0.9 million upon </div></td>
  </tr>
</table>
<br>
<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>TASEKO MINES LIMITED</B> <br>
  Notes to Consolidated Financial Statements<br>
  For the year ended September 30, 2004<br>
  (Expressed in Canadian Dollars)</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">successful recommencement of commercial production
        of the Gibraltar mine using the CESL technology prior to October 31, 2005.
        In addition, the Company agreed, subject to regulatory approval, to issue
        to Procorp 3.5 million warrants to purchase common shares of the Company
        at a price of &#36;1.70 per share for two years and a royalty of US&#36;0.01
        per pound of copper sold, upon successful recommencement of commercial
        production using the hydrometallurgical refinery by October 31, 2005.
      </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">The Gibraltar mine had been on care and maintenance
        since being acquired in 1999 and commenced restart activities during the
        year ended September 30, 2004. 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 &#36;5.9 million to a nominal amount of &#36;1,000. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div 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 (&#8220;CRD&#8221;),
        whereby the CRD funded the Company to construct (which was completed by
        the Company), operate, manage and maintain, on an ongoing basis, 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&#8217;s reclamation obligation was reduced and
        accordingly, during fiscal 2003, the Government of British Columbia released
        &#36;2.5 million of the reclamation deposits held. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">During the year ended September 30, 2004, the Company
        formed a joint venture with Ledcor CMI Ltd. (&#8220;Ledcor&#8221;), whereby
        Ledcor would commission, restart, and operate the Gibraltar mine. As operator,
        Ledcor&#8217;s primary responsibility would be 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 the maintenance of equipment and facilities. Ledcor will
        contribute to the joint venture its own mine equipment and will purchase
        or lease additional equipment as necessary. Taseko would contribute to
        the joint venture certain mineral rights and usage rights to the existing
        mill and equipment.</div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top"><i>(b) </i></td>
    <td> <div align="justify"><i>Prosperity Gold-Copper Property </i></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">The Company owns 100% of the Prosperity Gold-Copper
        Property, consisting of 196 mineral claims covering the mineral rights
        for approximately 85 square km in the Clinton Mining Division in south
        central British Columbia, Canada. The &#36;28.66 million cash and share
        consideration to acquire the Prosperity property was written down to a
        nominal &#36;1,000 value in fiscal 2001, to reflect the extended depressed
        conditions in the metals markets. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top"><i>(c) </i></td>
    <td> <div align="justify"><i>Harmony Gold Property </i></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div 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. </div></td>
  </tr>
</table>
<br>
<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>TASEKO MINES LIMITED</B> <br>
  Notes to Consolidated Financial Statements<br>
  For the year ended September 30, 2004<br>
  (Expressed in Canadian Dollars)</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 Company does not believe there has been a fundamental
        change in the nature of the Harmony Gold Property; however, as the Company
        had not conducted significant exploration or development on the property
        in the last several years the Harmony Gold Property was written down to
        a nominal value of &#36;1,000 during the year ended September 30, 2004.</div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top"><i>(d) </i></td>
    <td> <div align="justify"><i>Acquisition agreements </i></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify"><i>Gibraltar Engineering Services Limited Partnership
        </i></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">In December 2001, the GESL Partnership completed
        a private placement of limited partnership units for aggregate proceeds
        of &#36;1.85 million. In February 2002, the Company issued 4,966,659 Taseko
        common shares at &#36;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
        &#36;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 &#36;4.85 million.
        In December 2002, a general partnership interest in the GRP Partnership
        was acquired and financed by a third party for &#36;3.0 million. In April
        2003, under a plan of arrangement, the Company issued 7,446,809 Taseko
        common shares for total consideration of &#36;3.5 million to complete
        the acquisition of Gibraltar Engineering Services Limited ("GESL"), which
        had acquired the remaining business of the GESL Partnership. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"><i>Gibraltar Reclamation Trust Limited Partnership
        </i></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">In December 2003, the GRT Partnership completed
        a private placement of limited partnership units for aggregate proceeds
        of &#36;18.6 million, and entered into a joint venture arrangement with
        Gibraltar Mines Ltd. to proceed towards restarting the Gibraltar mine
        with the funds raised. Gibraltar Mines Ltd., as its contribution to the
        joint venture, was 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 (&#8220;QET&#8221;), which consequently
        allowed Gibraltar Mines Ltd. to access other funds then held by the Government
        of British Columbia as a security for the mine&#8217;s environmental reclamation
        obligations. Under the joint venture agreement, the GRT Partnership was
        to 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 &#36;2.79 per share for total consideration
        of &#36;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 &#36;4.5 million. In consideration
        for the guarantee, the Company issued 225,000 common shares at &#36;2.00
        per share to those directors and officers. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top"><i>(e) </i></td>
    <td><div align="justify"><i>Farmout Agreement </i></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div 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"), </div></td>
  </tr>
</table>
<br>
<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>TASEKO MINES LIMITED</B> <br>
  Notes to Consolidated Financial Statements<br>
  For the year ended September 30, 2004<br>
  (Expressed in Canadian Dollars)</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">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 &#36;650,000 in the case of Northern
        Dynasty and &#36;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 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 were to have been valued at the weighted average ten-day trading
        price as traded on the TSX Venture Exchange. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">In December 2003, Northern Dynasty earned an interest
        in these properties to the extent of &#36;650,000 and Rockwell earned
        an interest in these properties to the extent of &#36;200,000. In March
        2004, Taseko exercised its right to purchase the interests earned by Northern
        Dynasty and Rockwell by issuing 256,272 common shares to Northern Dynasty
        and 78,853 common shares to Rockwell. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top"><i>(f) </i></td>
    <td> <div align="justify"><i>Royalty Agreement </i></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">In September 2004, the Company entered into agreements
        with an unrelated investment partnership, the Red Mile Resources No. 2
        Limited Partnership (&#8220;Red Mile&#8221;). Gibraltar Mines Ltd. sold
        to Red Mile a royalty for &#36;67.357 million cash, which cash was received
        on September 29, 2004. These funds were subsequently loaned to a financial
        institution (and a promissory note received) and the Company has pledged
        these funds to secure its obligations under the agreements.</div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">Pursuant to the agreements, the Company received
        an aggregate of &#36;10.5 million in fees and interest for services performed
        in relation to the Red Mile transaction, of which &#36;5.25 million was
        received on each of September 2004 and in December 2004. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify">The amount of &#36;5.25 million received in September
        2004 included &#36;1.75 million for indemnifying an affiliate of Red Mile
        from any claims relating to a breach by Gibraltar Mines Ltd. under the
        royalty agreement. The funds received in respect of the indemnification
        are presented as deferred revenue, and are recognized over the expected
        remaining life of the royalty agreement.</div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">Annual royalties will be payable by Gibraltar Mines
        Ltd. at rates ranging from &#36;0.01 per pound to &#36;0.14 per pound
        of copper produced during the period from the commencement of commercial
        production (as defined in the agreement) to December 2014. Gibraltar Mines
        Ltd. is entitled to have released to it funds held under the promissory
        note to fund its royalty obligations to the extent of its royalty payments.</div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">The Company has a pre-emptive option to effectively
        purchase (&#8220;call&#8221;) the royalty interest by acquiring the Red
        Mile partnership units at a future date in consideration of a payment
        commensurate with the funds received by the Company. Under certain circumstances,
        the investors in Red Mile also have a right to sell (&#8220;put&#8221;)
        their Red Mile partnership units to the </div></td>
  </tr>
</table>
<br>
<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>TASEKO MINES LIMITED</B> <br>
  Notes to Consolidated Financial Statements<br>
  For the year ended September 30, 2004<br>
  (Expressed in Canadian Dollars)</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">Company; however such right is subject to the Company's
        pre-emptive right to exercise the &#8220;call&#8221; in advance of any
        &#8220;put&#8221; being exercised and completed. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">The Company has granted to Red Mile a net profits
        interest (&#8220;NPI&#8221;), which survives any &#8220;put&#8221; or
        &#8220;call&#8221; of the Red Mile units. For the years 2011 to 2014,
        the NPI is 2% if the price of copper averages US&#36;2.50 to US&#36;2.74
        per pound, 3% if the price of copper averages US&#36;2.75 to US&#36;2.99
        per pound and 4% if the price of copper averages US&#36;3.00 per pound
        or greater for any year during that period. The US-dollar pricing amounts
        specified above are based upon an exchange rate of US&#36;0.75 for CDN&#36;1.00,
        and shall be adjusted from time to time by any variation of such exchange
        rates. No NPI is payable until the Company reaches a pre-determined aggregate
        level of revenues less defined operating costs and expenditures. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top"><b>7. </b></td>
    <td> <div align="justify"><b>Operating line of credit </b></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">The Company has an unsecured &#36;2 million operating
        line of credit with a Canadian chartered bank at an interest rate of prime,
        due on demand, with no fixed terms of repayment. At September 30, 2004,
        approximately &#36;1.86 million was outstanding on this line of credit.
        This operating line of credit is guaranteed by a director of the Company.
      </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top"><b>8. </b></td>
    <td><div align="justify"><b>Share capital </b></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top"><i>(a) </i></td>
    <td> <div align="justify"><i>Authorized </i></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">Authorized share capital of the Company consists
        of 200,000,000 common shares without par value. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">At the Company&#8217;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.
      </div></td>
  </tr>
</table>
<br>
<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>TASEKO MINES LIMITED</B> <br>
  Notes to Consolidated Financial Statements<br>
  For the year ended September 30, 2004<br>
  (Expressed in Canadian Dollars)</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 valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid"> </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> Number of&nbsp; </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid"></TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid"> </TD>
    <TD width=12% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> <B>Common shares</B>&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> Shares&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> Amount&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> Balance, September 30, 2001&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 25,067,697&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 87,897,199&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> Issued during the year&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &nbsp; &nbsp;To a dissenting Continental
      shareholder in exchange for&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Gibraltar preferred shares at &#36;1.07
      per share (note 4)&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 114,800&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 122,836&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &nbsp; &nbsp;Loan guarantee at &#36;0.66
      per share (note 7)&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 606,061&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 400,000&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp;Private placement at &#36;0.50 per share&nbsp;
    </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 414,850&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 185,835&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &nbsp; &nbsp;Private placement at &#36;0.47
      per share&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 276,596&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 130,000&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp;Private placement at &#36;0.40 per share&nbsp;
    </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 375,000&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 150,000&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &nbsp; &nbsp;For acquisition of Gibraltar
      Refinery (2002) Ltd. at &#36;0.44 per share,&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;net of issue costs (note 6(d))&nbsp;
    </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 4,966,659&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 2,163,330&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> &nbsp; &nbsp;For
      debt settlement at &#36;0.40 per share&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 2,100,000&nbsp;
    </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 840,000&nbsp;
    </TD>
    <TD width=2% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> <B>Balance, September 30, 2002</B>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> <B>33,921,663</B>&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> <B>91,889,200</B>&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> Issued during the year&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp;Share purchase options at &#36;0.50 per share&nbsp;
    </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 40,000&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 20,000&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &nbsp; &nbsp;Private placement at &#36;0.30
      per share, net of issue costs&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 2,185,000&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 645,245&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp;Private placement at &#36;0.30 per share, net
      of issue costs&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 4,470,001&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 1,253,654&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &nbsp; &nbsp;Private placement at &#36;0.40
      per share, net of issue costs&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 5,817,500&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 2,146,666&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left nowrap> &nbsp; &nbsp;For acquisition of the remaining business
      of the GESL Partnership,&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> &nbsp; &nbsp; &nbsp;
      &nbsp;net of issue costs (note 6(d))&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 7,446,809&nbsp;
    </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 3,491,554&nbsp;
    </TD>
    <TD width=2% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> <B>Balance, September 30, 2003</B>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> <B>53,880,973</B>&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> <B>99,446,319</B>&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> Issued during the year&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp;Share purchase options at &#36;0.50 per share&nbsp;
    </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 4,265,000&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 2,132,500&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &nbsp; &nbsp;Share purchase options at &#36;0.40
      per share&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 152,500&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 61,000&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp;Share purchase options at &#36;0.25 per share&nbsp;
    </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 75,000&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 18,750&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &nbsp; &nbsp;Share purchase options at &#36;0.55
      per share&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 380,000&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 209,000&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp;Share purchase options at &#36;0.65 per share&nbsp;
    </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 25,500&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 16,575&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &nbsp; &nbsp;Fair value of stock options
      allocated to shares issued on exercise&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &#8211;&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 290,000&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp;Share purchase warrants at &#36;0.58 per share&nbsp;
    </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 276,596&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 160,426&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &nbsp; &nbsp;Share purchase warrants at
      &#36;0.55 per share&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 414,850&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 228,168&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp;Share purchase warrants at &#36;0.40 per share&nbsp;
    </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 302,250&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 120,900&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &nbsp; &nbsp;Share purchase warrants at
      &#36;0.50 per share&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 7,393,751&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 3,696,876&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp;Share purchase warrants at &#36;0.75 per share&nbsp;
    </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 473,332&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 354,999&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &nbsp; &nbsp;Private placement at &#36;0.60
      per share, net of issue costs&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 6,700,000&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 3,910,728&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp;Private placement at &#36;2.00 per share, net
      of issue costs&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 3,900,000&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 7,323,943&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &nbsp; &nbsp;Private placement at &#36;1.25
      per share, net of issue costs&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 8,000,000&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 8,933,206&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp;For acquisition of Gibraltar Reclamation Trust
      Limited Partnership&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &nbsp; &nbsp; &nbsp; &nbsp;at &#36;2.79
      per share, net of issue costs (note 6(d))&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 7,967,742&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 22,193,039&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp;Loan guarantee at &#36;2.00 per share (note 6(d))&nbsp;
    </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 225,000&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 450,000&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &nbsp; &nbsp;Farmout agreement at &#36;2.79
      per share (note 6(e))&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 335,125&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 935,000&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> <B>Balance, September 30, 2004</B>&nbsp;
    </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> <B>94,767,619</B>&nbsp;
    </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% align=right style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> <B>&#36;</B> </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> <B>150,481,429</B>&nbsp;
    </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>
  </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><i>Convertible debenture </i></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">On July 21, 1999, in connection with the acquisition
        of the Gibraltar mine, the Company issued a &#36;17 million interest-free
        debenture to BWCL, which is due on July 21, 2009, but is convertible </div></td>
  </tr>
</table>
<br>
<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>TASEKO MINES LIMITED</B> <br>
  Notes to Consolidated Financial Statements<br>
  For the year ended September 30, 2004<br>
  (Expressed in Canadian Dollars)</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">into common shares of the Company over a 10 year
        period commencing at a price of &#36;3.14 per share in year one and escalating
        by &#36;0.25 per share per year thereafter (&#36;4.39 per share as at
        September 30, 2004). BWCL&#8217;s purchase of the convertible debenture
        was receivable as to &#36;4,000,000 in July 1999, &#36;1,000,000 on October
        19, 1999, &#36;3,500,000 on July 21, 2000, and &#36;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.</div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">From the commencement of the sixth year to the tenth
        year, the Company has the right to automatically convert the debenture
        into common shares at the then-prevailing market price. Since the Company
        has the right and the intention to settle the convertible debenture through
        the issuance of common shares, notwithstanding the Company&#8217;s right
        to settle the debenture with cash, it has been included as a separate
        component of shareholders&#8217; equity on the balance sheet. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">Accounting standards in Canada for compound financial
        instruments require the Company to allocate the proceeds received from
        the convertible debenture between (i) the fair value of the option to
        convert the debenture into common shares and (ii) the fair value of the
        future cash outflows related to the debenture. At issuance, the Company
        estimated the fair value of the conversion option by deducting the present
        value of the future cash outflows of the convertible debenture, calculated
        using a risk-adjusted discount rate of 10%, from the face value of the
        principal of the convertible debenture. The residual carrying value of
        the convertible debenture is required to be accreted to the face value
        of the convertible debenture over the life of the debenture by, in the
        Company&#8217;s case, a direct charge to deficit. </div></td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid"> </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> September 30,&nbsp; </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid"></TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid"> </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> September 30,&nbsp; </TD>
    <TD width=2% align=right style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 2004&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 2003&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left nowrap> Present value of convertible debenture&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &nbsp; &nbsp;Beginning of year&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 9,777,058&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 8,888,235&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> &nbsp; &nbsp;Accretion for the year&nbsp;
    </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 977,705&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 888,823&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &nbsp; &nbsp;End of year&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 10,754,763&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 9,777,058&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> Conversion right&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 9,822,462&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 9,822,462&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> &#36; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 20,577,225&nbsp;
    </TD>
    <TD width=2% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> &#36; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 19,599,520&nbsp;
    </TD>
    <TD width=2% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%">&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 width="5%">&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width="1%" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width="12%" 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="12%" 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 valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> September 30,&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> September 30,&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 2004&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 2003&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> Summary of the convertible debenture terms&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &nbsp; &nbsp;Principal amount of convertible
      debenture&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 17,000,000&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 17,000,000&nbsp; </TD>
    <TD width=2% align=center bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left nowrap> &nbsp; &nbsp;Price per common share of the unexercised
      conversion right&nbsp; </TD>
    <TD width=1% align=right> &#36; </TD>
    <TD width=12% align=right> 4.39&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=1% align=right> &#36; </TD>
    <TD width=12% align=right> 4.14&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &nbsp; &nbsp;Number of common shares potentially
      issuable under&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=12% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=center>&nbsp;</TD>
    <TD style="border-bottom-width:1px;border-bottom-style:solid"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;unexercised conversion
      right&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 3,872,437&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 4,106,280&nbsp; </TD>
    <TD width=2% align=right 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_15"></A>
<P style="border-bottom-width:1px;border-bottom-style:solid"><B>TASEKO MINES LIMITED</B> <br>
  Notes to Consolidated Financial Statements<br>
  For the year ended September 30, 2004<br>
  (Expressed in Canadian Dollars)</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><i> Share purchase option plan </i></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div 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&#8217;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.</div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> The continuity of share purchase options is as follows: </td>
  </tr>
</table>
<br>
<TABLE style="font-size:9pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid"> </TD>
    <TD colspan="4" align=center style="border-top-width:1px;border-top-style:solid"><B>2004</B> </TD>
    <TD width=2% align=center style="border-top-width:1px;border-top-style:solid"></TD>
    <TD width=1% align=center style="border-top-width:1px;border-top-style:solid"> </TD>
    <TD colspan="4" align=center style="border-top-width:1px;border-top-style:solid"> <B>2003</B> </TD>
    <TD width=2% align=center style="border-top-width:1px;border-top-style:solid"></TD>
    <TD width=1% align=center style="border-top-width:1px;border-top-style:solid"> </TD>
    <TD colspan="4" align=center style="border-top-width:1px;border-top-style:solid"> <B>2002</B> </TD>
    <TD width=2% align=center style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=10% align=center> Number</TD>
    <TD width=2% align=center>&nbsp; </TD>
    <TD width=1% align=center>&nbsp;</TD>
    <TD width=10% align=center> Average</TD>
    <TD width=2% align=center></TD>
    <TD width=1% align=center> </TD>
    <TD width=10% align=center>Number </TD>
    <TD width=2% align=center>&nbsp; </TD>
    <TD width=1% align=center>&nbsp;</TD>
    <TD width=10% align=center> Average</TD>
    <TD width=2% align=center></TD>
    <TD width=1% align=center> </TD>
    <TD width=10% align=center> Number</TD>
    <TD width=2% align=center>&nbsp; </TD>
    <TD width=1% align=center>&nbsp;</TD>
    <TD width=10% align=center> Average</TD>
    <TD width=2% align=center>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=10% align=center style="border-bottom-width:1px;border-bottom-style:solid"> of shares</TD>
    <TD width=2% align=center style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=center style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=10% 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"></TD>
    <TD width=1% align=center style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=10% align=center style="border-bottom-width:1px;border-bottom-style:solid">of shares</TD>
    <TD width=2% align=center style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=center style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=10% 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"></TD>
    <TD width=1% align=center style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=10% align=center style="border-bottom-width:1px;border-bottom-style:solid"> of shares</TD>
    <TD width=2% align=center style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=center style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=10% align=center style="border-bottom-width:1px;border-bottom-style:solid"> Price</TD>
    <TD width=2% align=center style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> Opening balance&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 4,685,000 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 0.48&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 4,145,000 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 0.50&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 657,000 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 1.56&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> Granted during the period&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=10% align=right> 8,855,500 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=right> 1.12&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=10% align=right> 770,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=right> 0.41&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=10% align=right> 4,042,500 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=right> 0.50&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> Exercised during the period&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> (4,898,000 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"> )&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 0.50&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> (40,000 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"> )&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 0.50&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> &#8211; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> &#8211;&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> Expired/cancelled during period&nbsp;
    </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=10% align=right style="border-bottom-width:1px;border-bottom-style:solid"> (15,000 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"> )&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=10% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 1.36&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=10% align=right style="border-bottom-width:1px;border-bottom-style:solid"> (190,000 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"> )&nbsp; </TD>
    <TD width=1% align=left 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"> 0.50&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=10% align=right style="border-bottom-width:1px;border-bottom-style:solid"> (554,500 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"> )&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=10% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 1.38&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> Closing balance&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 8,627,500 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 1.13&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 4,685,000 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 0.48&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"></TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 4,145,000 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=10% align=right bgcolor="#E6EFFF"> 0.50&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left nowrap> Contractual remaining life (years)&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=10% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=right> 1.93&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=10% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=right> 1.03&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=10% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=10% align=right> 1.96&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> Range of exercise
      prices&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> &#36;
    </TD>
    <TD width=10% align=right bgcolor="#E6EFFF" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">
      0.25-&#36;1.65 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=10% align=left bgcolor="#E6EFFF" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=right bgcolor="#E6EFFF" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> &#36;
    </TD>
    <TD width=10% align=right bgcolor="#E6EFFF" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">
      0.25-&#36;0.50 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=10% align=left bgcolor="#E6EFFF" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=right bgcolor="#E6EFFF" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> &#36;
    </TD>
    <TD width=10% align=right bgcolor="#E6EFFF" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">
      0.50 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=10% align=left bgcolor="#E6EFFF" style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" 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;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td>The following table summarizes information about share purchase options
      outstanding at September 30, 2004: </td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR valign="bottom">
    <TD width=5% align=left></TD>
    <TD align=left>&nbsp; </TD>
    <TD colspan=6 align=center style="border-bottom-width:1px;border-bottom-style:solid"> Options outstanding</TD>
    <TD width=2% align=right 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"> Options exercisable</TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left></TD>
    <TD align=left>&nbsp; </TD>
    <TD width=12% align=right> Number&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right> Weighted&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=3% align=left> </TD>
    <TD width=12% align=right> Weighted&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right> Number&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=3% align=left> </TD>
    <TD width=12% align=right> Weighted&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left></TD>
    <TD align=left>&nbsp; </TD>
    <TD width=12% align=right> outstanding at&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right> average&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=3% align=left> </TD>
    <TD width=12% align=right> average&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right> exercisable at&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=3% align=left> </TD>
    <TD width=12% align=right> average&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left></TD>
    <TD> Range of exercise&nbsp; </TD>
    <TD width=12% align=right> September 30,&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right> remaining&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=3% align=left> </TD>
    <TD width=12% align=right> exercise&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right> September 30,&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=3% align=left> </TD>
    <TD width=12% align=right> exercise&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left></TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> prices&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 2004&nbsp; </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"> contractual life&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=3% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> price&nbsp; </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"> 2004&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=3% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> price&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=right>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &#36;0.25 to &#36;0.49&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 192,500&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 0.56&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=3% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 0.31&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 192,500&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=3% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 0.31&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=right>&nbsp;</TD>
    <TD align=left> &#36;0.50&nbsp;to &#36;0.74 </TD>
    <TD width=12% align=right> 2,390,000&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right> 2.00&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=3% align=right> &#36; </TD>
    <TD width=12% align=right> 0.55&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right> 2,390,000&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=3% align=right> &#36; </TD>
    <TD width=12% align=right> 0.55&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=right>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &#36;0.75&nbsp;to &#36;0.99&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 45,000&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 0.97&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=3% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 0.81&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 45,000&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=3% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 0.81&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=right>&nbsp;</TD>
    <TD align=left> &#36;1.00&nbsp;to &#36;1.24&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=3% align=left> </TD>
    <TD width=12% align=right> N/A&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=3% align=left> </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=center>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=right>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &#36;1.25&nbsp;to &#36;1.49&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 5,920,000&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 1.97&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=3% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 1.38&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 5,577,500&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=3% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 1.38&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=right>&nbsp;</TD>
    <TD align=left> &#36;1.50&nbsp;to &#36;1.74&nbsp; </TD>
    <TD width=12% align=right> 80,000&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right> 1.10&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=3% align=right> &#36; </TD>
    <TD width=12% align=right> 1.63&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right> 70,000&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=3% align=right> &#36; </TD>
    <TD width=12% align=right> 1.65&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=right>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> Over &#36;1.74&nbsp;
    </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> &#8211;&nbsp;
    </TD>
    <TD width=2% align=right 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"> &#8211;&nbsp;
    </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=3% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> N/A&nbsp;
    </TD>
    <TD width=2% align=right 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"> &#8211;&nbsp;
    </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=3% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> &#8211;&nbsp;
    </TD>
    <TD width=2% align=center bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left></TD>
    <TD align=left style="border-bottom-width:4px;border-bottom-style:double">&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> 8,627,500&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> 1.93&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width=3% align=right style="border-bottom-width:4px;border-bottom-style:double"> &#36; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> 1.13&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> 8,275,000&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
    <TD width=3% align=right style="border-bottom-width:4px;border-bottom-style:double"> &#36; </TD>
    <TD width=12% align=right style="border-bottom-width:4px;border-bottom-style:double"> 1.12&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:4px;border-bottom-style:double">&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td><div align="justify">Subsequent to September 30, 2004, to January 24,
        2005, a total of 324,500 options were exercised for gross proceeds of
        &#36;417,800. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">The exercise prices of all share purchase options
        granted during the year were equal to the market price at the grant date.
        Using an option pricing model with the assumptions noted below, the </div></td>
  </tr>
</table>
<br>
<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>TASEKO MINES LIMITED</B> <br>
  Notes to Consolidated Financial Statements<br>
  For the year ended September 30, 2004<br>
  (Expressed in Canadian Dollars)</P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td>estimated fair value of all options granted during the year have been
      reflected in the statement of operations 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 valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> Year ended&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> Year ended&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right nowrap> September 30,&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right nowrap> September 30,&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left 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&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left nowrap> <B>Total compensation cost recognized in operations,</B>&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;<B>&nbsp;&nbsp;credited
      to contributed surplus</B>&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid"><B>&#36;</B>&nbsp;
    </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid"> &nbsp;
      <B>5,172,244</B>&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid"><B>&#36;</B>&nbsp;
    </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:2px;border-bottom-style:solid"> <B>65,344</B>&nbsp;
    </TD>
    <TD width=2% align=center 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>The weighted average assumptions used to estimate the fair value of options
      granted during the year were: </td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width=12% align=right> <B><U>2004</U></B> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=12% align=right> <B><U>2003</U></B> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> Risk free interest rate&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 3% </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 3% </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> Expected life&nbsp; </TD>
    <TD width=12% align=right> 2.4 years </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=12% align=right> 2.5 years </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> Volatility&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 95% </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 145% </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> Expected dividends&nbsp; </TD>
    <TD width=12% align=right> nil </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=12% align=right> nil </TD>
    <TD width=2% align=left>&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><i>Share purchase warrants </i> </td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> The continuity of share purchase warrants during the year ended September
      30, 2004 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 valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid"> </TD>
    <TD width=12% align=center style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=center style="border-top-width:1px;border-top-style:solid"> Outstanding</TD>
    <TD width=12% align=center style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=center style="border-top-width:1px;border-top-style:solid"> </TD>
    <TD width=2% align=center style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=center style="border-top-width:1px;border-top-style:solid"> Outstanding</TD>
    <TD width=2% align=center style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=center> Exercise</TD>
    <TD width=12% align=center nowrap> September 30,</TD>
    <TD width=12% align=center>&nbsp; </TD>
    <TD width=12% align=center> </TD>
    <TD width=2% align=center>&nbsp; </TD>
    <TD width=12% align=center nowrap> September 30,</TD>
    <TD width=2% align=center>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> Expiry dates&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=center style="border-bottom-width:1px;border-bottom-style:solid"> price</TD>
    <TD width=12% align=center style="border-bottom-width:1px;border-bottom-style:solid"> 2003</TD>
    <TD width=12% align=center style="border-bottom-width:1px;border-bottom-style:solid"> Issued</TD>
    <TD width=12% align=center style="border-bottom-width:1px;border-bottom-style:solid"> Exercised</TD>
    <TD width=2% 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>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> October 19, 2003&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=12% align=center bgcolor="#E6EFFF">0.58</TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 276,596&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &#8211;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> (276,596 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"> )&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &#8211; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> December&nbsp;27, 2003&nbsp; </TD>
    <TD width=1% align=right> &#36; </TD>
    <TD width=12% align=center>0.55</TD>
    <TD width=12% align=right> 414,850&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=12% align=right> (414,850 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> January 8, 2006&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=12% align=center bgcolor="#E6EFFF"> 0.40</TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 375,000&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &#8211;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &#8211; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 375,000 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> December&nbsp;31, 2003&nbsp; </TD>
    <TD width=1% align=right> &#36; </TD>
    <TD width=12% align=center> 0.40</TD>
    <TD width=12% align=right> 302,250&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=12% align=right> (302,250 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> December&nbsp;31, 2004 </TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=12% align=center bgcolor="#E6EFFF"> 0.50</TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 7,393,751&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &#8211;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> (7,393,751 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"> )&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &#8211; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> December&nbsp;31, 2005 </TD>
    <TD width=1% align=right> &#36; </TD>
    <TD width=12% align=center> 0.75</TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=12% align=right> 6,700,000&nbsp; </TD>
    <TD width=12% align=right> (473,332 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=12% align=right> 6,226,668 </TD>
    <TD width=2% align=left> <SUP>(</SUP><I><SUP>i</SUP></I><SUP>)</SUP>&nbsp;
    </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> March 10, 2005&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=12% align=center bgcolor="#E6EFFF"> 2.25</TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &#8211;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 3,900,000&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &#8211; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 3,900,000 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"> <SUP>(</SUP><I><SUP>ii</SUP></I><SUP>)</SUP>&nbsp;
    </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> September 28, 2006&nbsp; </TD>
    <TD width=1% align=right style="border-bottom-width:1px;border-bottom-style:solid"> &#36; </TD>
    <TD width=12% align=center style="border-bottom-width:1px;border-bottom-style:solid"> 1.40</TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> &#8211;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 8,000,000&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> &#8211; </TD>
    <TD width=2% align=left 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"> 8,000,000 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"><sup>(</sup><i><sup>iii</sup></i><sup>)</sup>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=left 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"> 8,762,447&nbsp;
    </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 18,600,000&nbsp;
    </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> (8,860,779
    </TD>
    <TD width=2% align=left 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"> 18,501,668
    </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
  </TR>
</TABLE>
<BR>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td 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 &#36;1.50 for ten consecutive trading days. As at September
        30, 2004 management had not given notice of this accelerated expiry. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top"><i>(ii)</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 &#36;4.50 for ten consecutive trading days. </div></td>
  </tr>
</table>
<br>
<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>TASEKO MINES LIMITED</B> <br>
  Notes to Consolidated Financial Statements<br>
  For the year ended September 30, 2004<br>
  (Expressed in Canadian Dollars</P>
<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>(iii)</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 &#36;2.80 for ten consecutive trading days. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td colspan="2" valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td colspan="2" valign="top"> Subsequent to September 30, 2004, to January
      24, 2005, a total of 1,430,001 warrants were exercised for gross proceeds
      of &#36;1,072,501. </td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td colspan="2" valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td colspan="2" valign="top"> The continuity of share purchase warrants during
      the year ended September 30, 2003 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 valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid"> </TD>
    <TD width=12% align=center style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> Outstanding&nbsp; </TD>
    <TD width=12% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> Outstanding&nbsp; </TD>
    <TD width=2% align=right style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=center> Exercise</TD>
    <TD width=12% align=right> September 30,&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=12% align=right> September 30,&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> Expiry dates&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=center style="border-bottom-width:1px;border-bottom-style:solid"> price</TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 2002&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> Issued&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> Exercised&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 2003&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> October 19, 2003&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &nbsp; &nbsp; &nbsp;0.58&nbsp;
    </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 276,596&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &#8211;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &#8211;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 276,596&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> December&nbsp;27, 2003 </TD>
    <TD width=1% align=right> &#36; </TD>
    <TD width=12% align=right> &nbsp; &nbsp; &nbsp;0.55&nbsp; </TD>
    <TD width=12% align=right> 414,850&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=12% align=right> 414,850&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> January 8, 2006&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &nbsp; &nbsp; &nbsp;0.40&nbsp;
    </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 375,000&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &#8211;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &#8211;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 375,000&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> December&nbsp;31, 2003 </TD>
    <TD width=1% align=right> &#36; </TD>
    <TD width=12% align=right> &nbsp; &nbsp; &nbsp;0.40&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=12% align=right> 302,250&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=12% align=right> 302,250&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> December&nbsp;31,
      2004 </TD>
    <TD width=1% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> &#36; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> &nbsp;
      &nbsp; &nbsp;0.50&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> &#8211;&nbsp;
    </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 7,393,751&nbsp;
    </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&#8211;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 7,393,751&nbsp;
    </TD>
    <TD width=2% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=left 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"> 1,066,446&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 7,696,001&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> &#8211;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 8,762,447&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td>The continuity of share purchase warrants during the year ended September
      30, 2002 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 valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid"> </TD>
    <TD width=12% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> Outstanding&nbsp; </TD>
    <TD width=12% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=left style="border-top-width:1px;border-top-style:solid"> </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> Outstanding&nbsp; </TD>
    <TD width=2% align=right style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=center> Exercise</TD>
    <TD width=12% align=right> September 30,&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=12% align=right> September 30,&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> Expiry dates&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=center style="border-bottom-width:1px;border-bottom-style:solid"> price</TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 2001&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> Issued&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> Expired </TD>
    <TD width=2% align=left 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&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> March 3, 2002&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 1.30&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 138,089&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &#8211;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> (138,089 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"> )&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &#8211;&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> March 3, 2002&nbsp; </TD>
    <TD width=1% align=right> &#36; </TD>
    <TD width=12% align=right> 2.35&nbsp; </TD>
    <TD width=12% align=right> 407,877&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=12% align=right> (407,877 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> December 31, 2000/01&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 1.38&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 1,245,000&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &#8211;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> (1,245,000 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"> )&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &#8211;&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> October 19, 2003&nbsp; </TD>
    <TD width=1% align=right> &#36; </TD>
    <TD width=12% align=right> 0.58&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=12% align=right> 276,596&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=12% align=right> 276,596&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> December 27, 2003&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 0.55&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &#8211;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 414,850&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &#8211; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 414,850&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> January 8, 2006&nbsp; </TD>
    <TD width=1% align=right style="border-bottom-width:1px;border-bottom-style:solid"> &#36; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 0.40&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> &#8211;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 375,000&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> &#8211; </TD>
    <TD width=2% align=left 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"> 375,000&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=left 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"> 1,790,966&nbsp;
    </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 1,066,446&nbsp;
    </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> (1,790,966
    </TD>
    <TD width=2% align=left 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"> 1,066,446&nbsp;
    </TD>
    <TD width=2% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><i>(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 valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> Balance, September 30, 2002&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &#8211; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> Changes during fiscal 2003:&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> &nbsp; &nbsp;Non-cash
      stock-based compensation (note 8(d))&nbsp; </TD>
    <TD width=1% align=left 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% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> Contributed surplus, September 30, 2003&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 65,344 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> Changes during fiscal 2004:&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=12% align=left bgcolor="#E6EFFF"> </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp;Non-cash stock-based compensation (note 8(d))&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 5,172,244 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left nowrap bgcolor="#E6EFFF"> &nbsp; &nbsp;Fair value of stock
      options allocated to shares issued on exercise&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> (290,000 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF"> )&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> Contributed surplus, September
      30, 2004&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> 4,947,588 </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid;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_18"></A>
<P style="border-bottom-width:1px;border-bottom-style:solid"><B>TASEKO MINES LIMITED</B> <br>
  Notes to Consolidated Financial Statements<br>
  For the year ended September 30, 2004<br>
  (Expressed in Canadian Dollars)</P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><b>9. </b></td>
    <td><b>Income taxes </b></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">Substantially all of the difference between the
        actual income tax expense of &#36;23,744,000 (2003 &#8211; &#36;nil) and
        the expected statutory corporate income tax recovery relates to losses
        not recognized and income realized for tax purposes but not accounting
        purposes. As at September 30, 2004 and 2003, the tax effect of the significant
        components within the Company&#8217;s future tax assets were as follows:
      </div></td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left 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"> <B>2004</B> </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left 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"> <B>2003</B> </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> Mineral properties&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 7,472,000 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &#8211; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> Loss carry forwards&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 1,412,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 1,778,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> Equipment&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 15,000 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 1,085,000 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> Reclamation obligation&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 5,359,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> Royalty obligation&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 23,979,000 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> &#8211; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> Other tax pools&nbsp; </TD>
    <TD width=1% align=left 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"> 740,000 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left 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% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 38,977,000 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 3,638,000 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> Valuation allowance&nbsp; </TD>
    <TD width=1% align=left 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"> (38,977,000 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"> )&nbsp; </TD>
    <TD width=1% align=left 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% align=left style="border-bottom-width:1px;border-bottom-style:solid"> )&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left nowrap bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">
      <B>Future income tax asset</B>&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> <B>&#36;</B>&nbsp;
    </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> <B>&#8211;</B>
    </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> <B>&#36;</B>&nbsp;
    </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> <B>&#8211;</B>
    </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
  </TR>
</TABLE>
<BR>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td><div align="justify">The Company has accrued a tax provision of a subsidiary
        company of &#36;23.7 million. This provision reflects an amount which
        management believes is less than likely of ever becoming payable. The
        subsidiary has a June 30, 2005 taxation year end. Prior to making its
        ultimate tax calculations, the subsidiary will consider tax planning strategies
        which might be put in place subsequent to the Company's financial reporting
        date of September 30, 2004. In addition, the subsidiary would exhaust
        all appeals if any taxes in connection with this accrual were actually
        assessed against the subsidiary. The amount represents a potential liability
        which has been recognized in a conservative manner in accordance with
        Canadian generally accepted accounting principles. It does not represent
        a payable amount based on any filed, or expected to be filed, tax return.
        It does not arise from a transaction in any completed taxation year, nor
        has any taxation authority assessed the amount or any portion thereof
        as payable. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify">At September 30, 2004, the Company&#8217;s tax attributes
        include non-capital losses for income tax purposes in Canada totaling
        approximately &#36;3,063,000 expiring in various periods from 2005 to
        2014. </div></td>
  </tr>
</table>
<br>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_19"></A>
<P style="border-bottom-width:1px;border-bottom-style:solid"><B>TASEKO MINES LIMITED</B> <br>
  Notes to Consolidated Financial Statements<br>
  For the year ended September 30, 2004<br>
  (Expressed in Canadian Dollars)</P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><b>10. </b></td>
    <td><b>Supplementary cash flow disclosures </b></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> In addition to the non-cash operating, financing and investing activities
      previously disclosed, the Company&#8217;s non-cash operating, financing
      and investing activities were 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 valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> September 30,</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=12% align=right style="border-top-width:1px;border-top-style:solid"> September 30,</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"> </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> September 30,</TD>
    <TD width=2% align=right style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left 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"> </TD>
    <TD width=12% 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>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD width=5% align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left> Issuance of tracking preferred shares of Gibraltar Mines&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp;Ltd. on acquisition of Harmony Gold Property
      (note 4)&nbsp; </TD>
    <TD width=1% align=left> &nbsp;&#36;&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=right> &#36; </TD>
    <TD width=12% align=right> 26,764,784&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD width=5% align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left> Issuance of common shares on acquisition of Gibraltar&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp;Refinery (2002) Ltd. (note 6(d))&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 2,163,330&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD width=5% align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left> Issuance of common shares on acquisition of remaining&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp;business of GESL Partnership&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 3,500,000&nbsp; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD width=5% align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left> Issuance of common shares on acquisition of Gibraltar&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp;Reclamation Trust Limited Partnership&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 22,230,000&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD width=5% align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left> Issuance of common shares on redemption of Gibraltar&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp;tracking preferred shares held by a dissenting&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD width=5% align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp;Continental shareholder (note 4)&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 122,836&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left> Issuance of common shares for loan guarantee (note 7)&nbsp;
    </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 450,000&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 400,000&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD width=5% align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left> Issuance of common shares settlement of debt&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 840,000&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left> Accretion of convertible debenture (note 8(c))&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 977,705&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=right> 888,823&nbsp; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 808,021&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD width=5% align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left nowrap> Fair value of stock options allocated to shares issued
      on&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> &nbsp; &nbsp;exercise&nbsp; </TD>
    <TD width=1% align=left 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"> 290,000&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left 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"> &#8211;&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> &#8211;&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" bgcolor="#FFFFFF">&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%" 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="12%" 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="12%" 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 valign="bottom">
    <TD width=5% align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=center> September 30,</TD>
    <TD width=2% align=center>&nbsp;</TD>
    <TD width=1% align=center>&nbsp; </TD>
    <TD width=12% align=center> September 30,</TD>
    <TD width=2% align=center>&nbsp; </TD>
    <TD width=1% align=center> </TD>
    <TD width=12% align=center> September 30,</TD>
    <TD width=2% align=center>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=12% align=center style="border-bottom-width:1px;border-bottom-style:solid"> 2004</TD>
    <TD width=2% align=center style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=center style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=12% align=center style="border-bottom-width:1px;border-bottom-style:solid"> 2003</TD>
    <TD width=2% align=center style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=center style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=center style="border-bottom-width:1px;border-bottom-style:solid"> &nbsp; &nbsp; &nbsp;2002</TD>
    <TD width=2% align=center style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left> <B>Supplemental cash flow information</B>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left> Cash paid during the year for&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD width=5% align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left> &nbsp; &nbsp;Interest&nbsp; </TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> 49,294&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left> &#36;&nbsp; </TD>
    <TD width=12% align=right> 101,942&nbsp; </TD>
    <TD width=2% align=left> &#36;&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 107,790&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> &nbsp; &nbsp;Taxes&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 45,352&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 6,135&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"> &#36;&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 117,333&nbsp; </TD>
    <TD width=2% align=right 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_20"></A>
<P style="border-bottom-width:1px;border-bottom-style:solid"><B>TASEKO MINES LIMITED</B> <br>
  Notes to Consolidated Financial Statements<br>
  For the year ended September 30, 2004<br>
  (Expressed in Canadian Dollars)</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>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> Details of related party transactions and advances not disclosed elsewhere
      in these financial statements include: </td>
  </tr>
</table>
<br>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD width=50% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=center style="border-top-width:1px;border-top-style:solid"> September 30,</TD>
    <TD width=2% align=center style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width=1% align=center style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=center style="border-top-width:1px;border-top-style:solid"> September 30,</TD>
    <TD width=2% align=center style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
    <TD width=1% align=center style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=center style="border-top-width:1px;border-top-style:solid"> September 30,</TD>
    <TD width=2% align=right style="border-top-width:1px;border-top-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD width=50% align=left style="border-bottom-width:1px;border-bottom-style:solid"> <B>Transactions</B>&nbsp;
    </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=12% align=center style="border-bottom-width:1px;border-bottom-style:solid"> 2004</TD>
    <TD width=2% align=center style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=center style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=12% align=center style="border-bottom-width:1px;border-bottom-style:solid"> 2003</TD>
    <TD width=2% align=center style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
    <TD width=1% align=center style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=12% align=center style="border-bottom-width:1px;border-bottom-style:solid"> 2002</TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD width=50% align=left> Hunter Dickinson Inc.&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD width=50% align=left nowrap> &nbsp; &nbsp;Services rendered to the Company
      and its subsidiaries&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=right>&nbsp;</TD>
    <TD width=50% bgcolor="#E6EFFF"> &nbsp; &nbsp;&nbsp; &nbsp;and reimbursement
      of third party expenses (a)&nbsp; </TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 806,970&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 253,859&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=right bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 574,892&nbsp; </TD>
    <TD width=2% align=right bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD width=50% align=left> &nbsp; &nbsp;Services rendered to GESL Partnership
      (b)&nbsp; </TD>
    <TD width=1% align=right> &#36;&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=1% align=right> &#36;&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=1% align=right> &#36;&nbsp; </TD>
    <TD width=12% align=right> 1,384,496&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD width=50% align=left bgcolor="#E6EFFF"> Hunter Dickinson Group Inc.&nbsp;
    </TD>
    <TD width=1% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=12% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=12% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=12% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD width=50% align=left> &nbsp; &nbsp;Consulting services rendered to the
      Company (c)&nbsp; </TD>
    <TD width=1% align=right> &#36;&nbsp; </TD>
    <TD width=12% align=right> 12,800&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=1% align=right> &#36;&nbsp; </TD>
    <TD width=12% align=right> 9,600&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=1% align=right> &#36;&nbsp; </TD>
    <TD width=12% align=right> &#8211;&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD width=50% align=left bgcolor="#E6EFFF"> Tom Milner Enterprises Inc.&nbsp;
    </TD>
    <TD width=1% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=12% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=12% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width=1% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=12% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD width=50% align=left style="border-bottom-width:1px;border-bottom-style:solid"> &nbsp; &nbsp;Consulting services
      rendered to the Company (d)&nbsp; </TD>
    <TD width=1% align=right style="border-bottom-width:1px;border-bottom-style:solid"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 115,155&nbsp; </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"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> &#8211;&nbsp; </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"> &#36;&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> &#8211;&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR valign="bottom">
    <TD width=5% height="18" align=left>&nbsp;</TD>
    <TD align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> September 30, </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid"> September 30, </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> <B>Advances</B>&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 2004 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 2003 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left> Advances to (from) (e)&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left>&nbsp; </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF"> &nbsp; &nbsp;Hunter Dickinson Inc. (a)&nbsp;
    </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 198,281 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF"> &#36;&nbsp; </TD>
    <TD width=12% align=right bgcolor="#E6EFFF"> 229,129 </TD>
    <TD width=2% align=left bgcolor="#E6EFFF">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> &nbsp; &nbsp;Hunter Dickinson Group
      Inc. (c)&nbsp; </TD>
    <TD width=1% align=left 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"> (3,424 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"> )&nbsp; </TD>
    <TD width=1% align=left 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"> (4,591 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"> )&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=5% align=left>&nbsp;</TD>
    <TD align=left nowrap bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">
      &nbsp; &nbsp;Advances to (from) related parties&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> &#36;&nbsp;
    </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 194,857
    </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> &#36;&nbsp;
    </TD>
    <TD width=12% align=right bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid"> 224,538
    </TD>
    <TD width=2% align=left bgcolor="#E6EFFF" style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
  </TR>
</TABLE>
<BR>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td 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><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">(b) </td>
    <td> <div align="justify">During fiscal 2001 and 2002, Hunter Dickinson Inc.
        provided engineering and other services to the GESL Partnership at industry
        standard rates. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">(c) </td>
    <td> <div align="justify">Hunter Dickinson Group Inc. is a private company
        with certain directors in common with the Company that provides consulting
        services to the Company.</div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">(d) </td>
    <td> <div align="justify">Tom Milner Enterprises Inc. is a private company
        controlled by a director of the Company that provides consulting services
        to the Company.<b> </b></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">(e) </td>
    <td> <div align="justify">Advances are non-interest bearing and due on demand.
      </div></td>
  </tr>
</table>
<br>
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<P style="border-bottom-width:1px;border-bottom-style:solid"><B>TASEKO MINES LIMITED</B> <br>
  Notes to Consolidated Financial Statements<br>
  For the year ended September 30, 2004<br>
  (Expressed in Canadian Dollars)</P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top"><b>12. </b></td>
    <td colspan="2" valign="top"><b>Subsequent events</b></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td width="5%" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td colspan="2" valign="top">Subsequent to September 30, 2004 </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><div align="justify">324,500 options were exercised for gross proceeds
        of &#36;417,800 (note 8(d)); </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">(b)</td>
    <td> <div align="justify">1,430,001 warrants were exercised for gross proceeds
        of &#36;1,072,501 (note 8(e)); </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">(c)</td>
    <td> <div align="justify">the Company sold and arranged lease financing for
        the mining shovel and five haul trucks acquired in fiscal 2004, for net
        proceeds of US&#36;14.6 million (note 5); </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">(d) </td>
    <td><div align="justify">the Company executed its first shipment of copper
        concentrate, pursuant to its restart plan, in December 2004;</div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">(e) </td>
    <td> <div align="justify">On February 3, 2005, the Company announced that
        it had reached agreements with a number of accredited investors to privately
        place up to 5,172,500 units in its capital, at a price of &#36;1.45 per
        unit, for gross proceeds of up to &#36;7.5 million. Each unit will consist
        of one common share and one common share purchase warrant exercisable
        to purchase an additional common share at a price of &#36;1.66 for an
        18 month period from the completion of the financing. This private placement
        is subject to regulatory approval and is scheduled to close in February
        2005. </div></td>
  </tr>
</table>
<br>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>exhibit99-2.htm
<DESCRIPTION>MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2004
<TEXT>
<!DOCTYPE HTML PUBLIC "FINAL TKO YE Sep200">


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   <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;">
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<P align="center"> <B>TASEKO MINES LIMITED<br>
  </B><B>YEAR ENDED SEPTEMBER 30, 2004</B></P>
<P align="center" style="border-bottom-width:1px;border-bottom-style:solid"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS<br>
  </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 audited financial statements of Taseko Mines
  Limited ("Taseko", or the "Company") for the year ended September 30, 2004.</P>
<P align="justify"> This MD&amp;A is prepared as of February 8, 2005. All dollar
  figures stated herein are expressed in Canadian dollars, unless otherwise specified.</P>
<table width="100%" border="1" cellpadding="3" cellspacing="0" bordercolor="#000000" style="font-size: 10pt;">
  <tr>
    <td valign="top"><div align="justify">This discussion includes certain statements
        that may be deemed "forward-looking statements". All statements in this
        discussion, other than statements of historical facts, that address future
        production, reserve potential, exploration drilling, exploitation activities
        and events or developments that the Company expects are forward-looking
        statements. Although the Company believes the expectations expressed in
        such forward-looking statements are based on reasonable assumptions, such
        statements are not guarantees of future performance and actual results
        or developments may differ materially from those in the forward-looking
        statements. Factors that could cause actual results to differ materially
        from those in forward-looking statements include market prices, exploitation
        and exploration successes, continued availability of capital and financing
        and general economic, market or business conditions. Investors are cautioned
        that any such statements are not guarantees of future performance and
        that actual results or developments may differ materially from those projected
        in the forward-looking statements. </div></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 exploration projects: the
  Prosperity gold-copper project and the Harmony gold project.</P>
<P align="justify"> In 2004, the Company focused on pre-production activities
  at the Gibraltar mine. The restart plan called for six months of pre-production
  mining and mill commissioning activities. This was revised to a four month plan
  that included pre-production mining and refurbishing the crushing and milling
  facilities, but focussing on copper circuit. Re-start of the operation took
  place subsequent to the fiscal year end in October 2004.</P>
<P align="justify"> On October 4, 2004, Taseko began trading on the American Stock
  Exchange under the symbol &#8220;TGB&#8221;. Also in October, two new independent
  directors joined the Board. David Elliott, CA, has a strong and diverse background
  as a public accountant and corporate executive. Wayne Kirk is an attorney with
  extensive experience in public practice and also as in-house counsel to companies
  within the mining sector. </P>
<P>
<B>Gibraltar mine </B></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 which had
  been maintained on a standby basis for five years, awaiting higher copper prices.
  With the improvement in copper markets, the Company raised approximately &#36;18.6
  million to fund the restart of the Gibraltar mine.</P>
<P align="justify"> Planning for restart took place in the first and second quarters
  of fiscal 2004. An independent review of the capital and operating costs and
  mineral reserves and resources was completed by Roscoe Postle and Associates
  (&#8220;RPA&#8221;) in the third quarter. There was no significant change in
  the reserves from the audit of the estimates that had been carried out by RPA
  in December 1998 when the mine was closed. </P>

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<P align="center"><B>TASEKO MINES LIMITED<br>
  </B><B>YEAR ENDED SEPTEMBER 30, 2004</B></P>
<P align="center" style="border-bottom-width:1px;border-bottom-style:solid"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS<br>
  </B></P>
<P align="justify"> Under the Gibraltar mine plan, 163.5 million tons (148 million
  tonnes) of sulphide material is to be extracted over 12 years, producing an
  estimated average of 70 million pounds (31,750 tonnes) of copper and 980,000
  pounds (450 tonnes) of molybdenum per year in concentrate. A 10 million pound
  (4,550 tonnes) per year solvent extraction-electrowinning plant is available
  to produce copper cathode from oxide mineralization when accessed. </P>
<P align="justify"> Taseko received approval for the mine plan from the British
  Columbia Ministry of Energy and Mines on June 1, 2004. Personnel were mobilized
  to site in late May to accelerate preparations for restart. One shovel, three
  haul trucks and one drill were re-commissioned and put into operation, culminating
  in the commencement of pre-development work in the Pollyanna Pit on June 10.
  Between June and September 30, 2004, approximately 5.56 million tons (5.05 million
  tonnes) of overburden material was stripped to expose Pollyanna mineralization.</P>
<P align="justify"> Maintenance on other mining equipment and refurbishment of
  site facilities was carried out concurrently with the pre-development activities.
  First, water, air and lighting infrastructure was re-established and electrical
  systems tested and commissioned in the mill, then maintenance of the major crushing,
  grinding and flotation circuits began. Copper circuit operations in the mill
  were initiated subsequent to the end of the fiscal year in October. </P>
<P align="justify"> The mining and construction industry suffered from equipment
  shortages and delays in delivery 2004, and Gibraltar&#8217;s experience was
  similar. New mining equipment, including five mine-haul trucks and a P&amp;H
  2800XPB shovel, arrived at site commencing in July and continuing through October
  and then was assembled. Late delivery of this equipment, however, delayed some
  pre-stripping and mining activities. The majority of the equipment was in operation
  when the copper concentrator was restarted subsequent to year end in October.</P>
<P align="justify"> During pre-stripping, 600,000 tons (545,000 tonnes) of additional
  ore was encountered near surface. This oxidized material was processed once
  the copper concentrator was restarted in the first fiscal quarter.</P>
<P align="justify"> In fiscal 2003, the Company developed, in partnership with
  the Cariboo Regional District, a community landfill at the Gibraltar site. The
  landfill operates in an area where mining is completed. To October 2004, the
  Gibraltar Landfill had been in full operation for twelve months.</P>
<P align="justify"> The Company shipped its first copper concentrate in early
  December. Upgrading of the molybdenum circuit and copper cleaner circuit was
  initiated in October. Commissioning of the molybdenum circuit is expected to
  be completed in the second quarter of fiscal 2005.</P>
<P align="justify"> <I>Gibraltar-Ledcor Joint Venture </I></P>
<P align="justify"> In May 2004, Taseko and Ledcor CMI Ltd. (&#8220;Ledcor&#8221;)
  signed a framework agreement whereby re-commissioning and operation of the Gibraltar
  mine would proceed as a joint venture. In September, Taseko and Ledcor concluded
  a Joint Venture Operating Agreement (&#8220;the Joint Venture&#8221;). Taseko
  (through its wholly owned operating subsidiary Gibraltar Mines Ltd., &#8220;Gibraltar&#8221;)
  has an 85% interest in the residual profits of the Joint Venture (i.e. profits
  after payment of usage fees to the participants for contributed assess and services)
  and Ledcor has a 15% interest in the residual profits. The Joint Venture holds
  rights to operate the mine as well as leases on certain mining equipment such
  as a mechanical shovel and trucks, but the mill and other mine assets, including
  mineral titles, belong to Gibraltar. The Joint Venture pays usage fees to each
  of Gibraltar and Ledcor for use of their respectively contributed </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>
  </B><B>YEAR ENDED SEPTEMBER 30, 2004</B></P>
<P align="center" style="border-bottom-width:1px;border-bottom-style:solid"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS<br>
  </B></P>
<P align="justify"> assets as well as for services that they contribute to the
  Joint Venture. Taseko is responsible for concentrate sales, off-site activities
  and certain aspects of administration and Ledcor is responsible for on-site
  operations and Ledcor, as Operator of the Joint Venture, has primary responsibility
  for carrying out mining and milling activities as well as recruitment of personnel
  and maintenance of the equipment and facilities. Over 250 people are currently
  employed at the mine. </P>
<P align="justify"> As part of its contributions to the joint venture, Ledcor
  provided important lease financing guarantees to third parties that allowed
  for a timely acquisition of the new shovel and five new mine-haul trucks valued
  at US&#36;18.3 million (&#36;22.0 million).<I> </I></P>
<P align="justify"> <I>Labour Relations Board</I> </P>
<P align="justify"> The Company and its former union, the National Automobile,
  Aerospace, Transportation and General Workers Union of Canada (the &#8220;CAW&#8221;),
  appeared before the British Columbia Labour Relations Board (&#8220;LRB&#8221;),
  which ruled on June 29, 2004 (the &#8220;Original Decision&#8221;) that the
  Company was entitled to contract with Ledcor to commission and start up the
  Gibraltar 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 which union would represent those employees
  &#8211; the CAW, or the Christian Labour Association of Canada (&#8220;CLAC&#8221;),
  which represent Ledcor&#8217;s employees. Ledcor has a labour agreement in place
  with CLAC. </P>
<P align="justify"> The CAW applied for leave and reconsideration of the Original
  Decision, on the basis that the joint venture formed to operate the Gibraltar
  mine has not proceeded in a manner represented to the original LRB panel. A
  representation vote was held on November 15 and 16, 2004, but before the vote
  can be counted, the LRB must be satisfied that the terms of the JV Agreement
  have been implemented and the necessary elements of a successorship have been
  established. The ballot boxes were ordered sealed by the LRB, and the original
  LRB panel, pending those determinations, will decide whether the vote results
  will be counted.</P>
<P align="justify"> A series of submissions were made by the unions and the JV
  in December 2004 and January 2005. On February 16, 2005, the LRB ruled that
  the Taseko-Ledcor JV had proceeded as represented to the original LRB panel
  and that Taseko-Ledcor is the successor employer at Gibraltar. As a result,
  the ballots will be counted to determine which union will represent the employees.
</P>
<P align="justify"> <I>Series A non-voting redeemable preferred shares </I></P>
<P align="justify"> In October 2001, the Company&#8217;s subsidiary Gibraltar
  Mines Ltd. (&#8220;Gibraltar&#8221;) 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 &#36;2.23 million cash and issued to Continental, 12,483,916 series A non-voting
  redeemable preferred shares in exchange for Continental&#8217;s interest in
  the Harmony Gold Project.</P>
<P align="justify"> Gibraltar is obligated to redeem the series A preferred upon
  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&#8217;s interest in the Harmony Gold Property), or upon
  the commencement of commercial production at the Harmony Gold Property (an &#8220;HP
  Realization Event&#8221;). Upon the occurrence of an HP Realization event, Gibraltar
  must redeem Gibraltar preferred shares by </P>

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<A name="page_4"></A>
<P align="center"><B>TASEKO MINES LIMITED<br>
  </B><B>YEAR ENDED SEPTEMBER 30, 2004</B></P>
<P align="center" style="border-bottom-width:1px;border-bottom-style:solid"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS<br>
  </B></P>
<P align="justify"> distributing that number of Taseko common shares (&#8220;Taseko
  Shares&#8221;) 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 September 30, 2004, the paid up amount was approximately &#36;62.77
  million and the conversion rate was &#36;4.39 per Taseko Share.</P>
<P align="justify"> <B>Market Trends </B></P>
<P align="justify"> Copper prices strengthened throughout 2004. The average price
  for the year was about US&#36;1.30 per pound, compared to US&#36;0.81 per pound
  in 2003. </P>
<P align="justify"> The price of molybdenum oxide also increased from US&#36;7.60
  per pound early in 2004 to US&#36;34.00 per pound by calendar year end, averaging
  US&#36;16.88 per pound for the year, well above its long term price of US&#36;4.00
  per pound.</P>
<P align="justify"> Gold prices continued an overall uptrend in 2004. The average
  gold price for 2004 was US&#36;410 per ounce, compared to US&#36;364 per ounce
  in 2003.</P>
<P align="justify"> The Company is subject to currency exchange rate risk. The
  prices of copper and molybdenum oxide are denominated in United States dollars
  and, accordingly, the Company&#8217;s revenues will be received in United States
  dollars. The Company&#8217;s operations are almost entirely paid for in Canadian
  dollars, which has recently shown strength against the United States dollar.
  The further strengthening in the Canadian dollar, if it continues, will negatively
  impact the profitability of the Company&#8217;s mining operations. </P>

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<A name="page_5"></A>
<P align="center"> <B>TASEKO MINES LIMITED<br>
  </B><B>YEAR ENDED SEPTEMBER 30, 2004</B></P>
<P align="center" style="border-bottom-width:1px;border-bottom-style:solid"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS<br>
  </B></P>
<P align="left"> <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 valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> <B>As at</B> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> <B>As at</B>&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> <B>As at</B>&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right nowrap> <B>September 30</B> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right nowrap> <B>September 30</B>&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right nowrap> <B>September 30</B>&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> <B>Balance Sheet</B>&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> <B>2004</B> </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> <B>2003</B>&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> <B>2002</B>&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Current assets&nbsp; </TD>
    <TD width=1% align=right> &#36; </TD>
    <TD width=12% align=right> 20,341,400 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=right> &#36; </TD>
    <TD width=12% align=right> 6,110,155&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=1% align=right> &#36; </TD>
    <TD width=12% align=right> 2,761,936&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Mineral properties&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 3,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 28,813,296&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 28,813,296&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> Other assets&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 121,579,070 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 26,311,460&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 28,735,049&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> Total assets&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 141,923,470 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 61,234,911&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 60,310,281&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&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 valign="bottom">
    <TD align=left> Current liabilities&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 40,179,912 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 3,851,136&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 7,038,456&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Other liabilities&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 101,807,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 32,700,000&nbsp; </TD>
    <TD width=2% align=left></TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 32,700,000&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> Shareholders&#8217; equity (deficit)&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> (63,442 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"> )&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 24,683,775&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 20,571,825&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> Total shareholders&#8217; equity &amp; liabilities&nbsp;
    </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 141,923,470 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 61,234,911&nbsp; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"></TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 60,310,281&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> <B>Year ended</B> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> <B>Year ended</B> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> <B>Year ended</B> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right nowrap> <B>September 30</B> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right nowrap> <B>September 30</B> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right nowrap> <B>September 30</B> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> <B>Operations</B>&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> <B>2004</B> </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> <B>2003</B> </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> <B>2002</B> </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Conference and travel&nbsp; </TD>
    <TD width=1% align=right>&nbsp;&#36;</TD>
    <TD width=12% align=right> 93,071 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=right> &#36; </TD>
    <TD width=12% align=right> 43,398 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=right> &#36; </TD>
    <TD width=12% align=right> 44,429 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Consulting&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 251,790 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 178,104 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 133,672 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Corporation taxes&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 45,352 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 76,135 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 577,228 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Depreciation&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 723,249 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 711,170 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 714,065 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Exploration&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 4,457,600 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 2,029,529 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 2,071,885 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Interest and finance charges&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 499,294 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 201,942 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 507,790 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Legal, accounting and audit&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 458,238 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 169,356 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 334,492 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Office and administration&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 599,450 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 292,853 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 247,061 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Premium paid for acquisition of Gibraltar&nbsp;
    </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD> &nbsp; &nbsp; &nbsp;Reclamation Trust Limited Partnership&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 5,095,249 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Property investigation&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 141,067 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Refinery project&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 500,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 1,698,826 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Restart project&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 14,982,008 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Shareholder communication&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 657,342 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 74,687 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 90,835 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Trust and filing&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 88,530 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 21,113 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 36,802 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Interest and other (income)&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> (5,154,209 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> (721,480 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> (551,842 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Gain on sale of property, plant and equipment&nbsp;
    </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> (131,638 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> (1,314 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Income taxes&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 23,744,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Write down of mineral property acquisition costs&nbsp;
    </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 28,810,296 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 600,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Stock-based compensation&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 5,172,244 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 65,344 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> Loss for the period&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> 80,664,571 </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% 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% align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% 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% align=left 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>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> Accretion expense&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 977,705 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 888,823 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=1% align=left style="border-bottom-width:1px;border-bottom-style:solid"> </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 808,021 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&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 valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Basic and diluted loss per share&nbsp; </TD>
    <TD width=1% align=right> &#36; </TD>
    <TD width=12% align=right> (1.09 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=right> &#36; </TD>
    <TD width=12% align=right> (0.09 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=1% align=right> &#36; </TD>
    <TD width=12% align=right> (0.24 </TD>
    <TD width=2% align=left> )&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>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Weighted average number of&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp;common shares outstanding&nbsp;
    </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 75,113,426 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 46,984,378 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=1% align=left> </TD>
    <TD width=12% align=right> 30,338,098 </TD>
    <TD width=2% align=left>&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>
  </B><B>YEAR ENDED SEPTEMBER 30, 2004</B></P>
<P align="center" style="border-bottom-width:1px;border-bottom-style:solid"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS<br>
  </B></P>
<P>
<B>1.4 Results of Operations </B></P>
<P align="justify"> The Company&#8217;s loss for the year increased to &#36;80.7
  million in 2004 from &#36;3.5 million in 2003. The loss arose primarily from
  (a) a &#36;28.8 million write down of the Company's interest in the Harmony
  Gold Property, (b) an accrual of &#36;23.7 million for taxes related to the
  sale of the royalty, (c) a &#36;5.1 million premium paid to acquire all the
  units of the Gibraltar Reclamation Trust Limited Partnership, (d) exploration
  expenses of &#36;4.5 million, and (e) expenses totaling &#36;15.0 million related
  to the restart of the Gibraltar mine. </P>
<P align="justify"> Management does not believe there has been a fundamental change
  in the nature of the Harmony Gold Property; however, during the year, the Harmony
  Gold Property was written down to a nominal value of &#36;1,000. Accounting
  rules require that the Company must write down its investment in the property
  if it has not conducted significant exploration or development on the property
  in the last several years.</P>
<P align="justify"> The Company has accrued a tax provision of a subsidiary company
  of &#36;23.7 million in the accompanying financial statements. This provision
  reflects an amount which management believes is less than likely of ever becoming
  payable. The subsidiary has a June 30, 2005 taxation year end. Prior to making
  its ultimate tax calculations, the subsidiary will consider tax planning strategies
  which might be put in place subsequent to the Company's financial reporting
  date of September 30, 2004. In addition, the subsidiary would exhaust all appeals
  if any taxes were actually assessed against the subsidiary. The amount represents
  a potential liability which has been recognized in a conservative manner in
  accordance with Canadian generally accepted accounting principles. It does not
  represent a payable amount based on any filed, or expected to be filed, tax
  return. It does not arise from a transaction in any completed taxation year,
  nor has any taxation authority assessed the amount or any portion thereof as
  payable. </P>
<P align="justify"> The Company issued approximately 8 million common shares at
  &#36;2.79 per share for total consideration of &#36;22.23 million to acquire
  all of the units of the Gibraltar Reclamation Trust Limited Partnership, which
  resulted in a non-cash accounting loss of &#36;5.1 million. </P>
<P align="justify"> Of the &#36;4.5 million in exploration expenditures, &#36;4.3
  million was spent on Gibraltar, and the remainder spent on the Prosperity Project
  and the Harmony Project. The expenditures include the cost of standby care and
  maintenance and exploratory drilling activities at Gibraltar, as well as routine
  ongoing costs for environmental monitoring, property assessment and claim fees,
  and mine planning studies for Prosperity and Harmony. The drilling costs included
  in exploration include the cost of exercising the Company&#8217;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"> Consulting, legal, and office costs increased as a result
  of legal and labour matters related to the restart of the Gibraltar mine. Shareholder
  communications also increased as a result of the Company's drive to restart
  the mine. Trust and filing fees increased as a result of the Company earning
  a listing on the American Stock Exchange. </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>
  </B><B>YEAR ENDED SEPTEMBER 30, 2004</B></P>
<P align="center" style="border-bottom-width:1px;border-bottom-style:solid"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS<br>
  </B></P>
<P align="left"> <B>1.5 Summary of Quarterly Results </B></P>
<P align="left"> The following summary is presented in Canadian dollars except
  common shares outstanding. </P>
<TABLE style="font-size:9pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD width=8% align=right>Sep 30, </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> Jun 30, </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> Mar 31, </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> Dec 31, </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> Sep 30, </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> Jun 30, </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> Mar 31, </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> Dec 31, </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left 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">
      2004 </TD>
    <TD width=2% align=left 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"> 2004 </TD>
    <TD width=2% align=left 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"> 2004 </TD>
    <TD width=2% align=left 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"> 2003 </TD>
    <TD width=2% align=left 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"> 2003 </TD>
    <TD width=2% align=left 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"> 2003 </TD>
    <TD width=2% align=left 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"> 2003 </TD>
    <TD width=2% align=left 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"> 2002 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Current assets&nbsp; </TD>
    <TD width=8% align=right> 20,341,400 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 22,503,985 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 31,197,299 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 12,393,240 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 6,110,155 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 6,931,542 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 4,590,814 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 5,817,311 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Mineral properties&nbsp; </TD>
    <TD width=8% align=right> 3,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 28,813,296 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 28,813,296 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 28,813,296 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 28,813,296 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 28,813,296 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 28,813,296 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 28,813,296 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Other assets&nbsp; </TD>
    <TD width=8% align=right> 121,579,070 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 37,453,575 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 29,025,131 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 26,258,435 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 26,311,460 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 26,232,419 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 26,069,484 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 26,355,556 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> Total assets&nbsp; </TD>
    <TD width=8% align=right style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> 141,923,470 </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=8% align=right style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> 88,770,856 </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=8% align=right style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> 89,035,726 </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=8% align=right style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> 67,464,971 </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=8% 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=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=8% align=right style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> 61,977,257 </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=8% align=right style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> 59,473,594 </TD>
    <TD width=2% align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=8% align=right style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> 60,986,163 </TD>
    <TD width=2% align=left 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="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Current liabilities&nbsp; </TD>
    <TD width=8% align=right> 40,179,912 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 4,082,614 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 1,411,538 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 3,786,070 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 3,851,136 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 3,490,173 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 3,571,875 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 4,053,587 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Other liabilities&nbsp; </TD>
    <TD width=8% align=right> 101,807,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 32,700,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 32,700,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 32,700,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 32,700,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 32,700,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 32,700,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 32,700,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Shareholders&#8217; equity&nbsp; </TD>
    <TD width=8% align=right> (63,442 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=8% align=right> 51,988,242 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 54,924,188 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 30,978,901 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 24,683,775 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 25,787,084 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 23,201,719 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 24,232,576 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> Total shareholders&#8217; equity&nbsp;
      <br>
      and liabilities&nbsp; </TD>
    <TD width=8% align=right style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> 141,923,470 </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=8% align=right style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> 88,770,856 </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=8% align=right style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> 89,035,726 </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=8% align=right style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> 67,464,971 </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=8% 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=8% align=right style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> 61,977,257 </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=8% align=right style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> 59,473,594 </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=8% align=right style="border-top-width:1px;border-top-style:solid;border-bottom-width:1px;border-bottom-style:solid"> 60,986,163 </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>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Expenses:&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Conference and travel&nbsp; </TD>
    <TD width=8% align=right> 11,689 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 19,062 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 22,051 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 40,269 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 4,449 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 12,492 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 6,962 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 19,495 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Consulting&nbsp; </TD>
    <TD width=8% align=right> 56,450 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 94,875 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> (10,462 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=8% align=right> 110,927 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 30,118 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 40,309 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 58,011 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 49,666 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Corporation taxes&nbsp; </TD>
    <TD width=8% align=right> 14,184 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 20,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 11,168 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 101,308 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> (44,911 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=8% align=right> 11,594 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 8,144 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Deprecation&nbsp; </TD>
    <TD width=8% align=right> 181,430 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 181,434 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 180,407 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 179,978 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 179,559 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 176,617 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 176,617 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 178,377 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Exploration&nbsp; </TD>
    <TD width=8% align=right> (2,587,961 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=8% align=right> 3,939,477 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 975,538 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 2,130,546 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 607,301 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 449,458 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 687,681 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 285,089 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left nowrap> Interest and finance charges&nbsp; </TD>
    <TD width=8% align=right> 18,138 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 452,616 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 9,201 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 19,339 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 124,213 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 25,952 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 28,590 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 23,187 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Laboratory and other&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> services&nbsp; </TD>
    <TD width=8% align=right> 732,054 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> (732,054 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Legal, accounting and audit&nbsp; </TD>
    <TD width=8% align=right> 325,567 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 92,940 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 22,913 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 16,818 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 40,526 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 53,960 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 18,272 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 56,598 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Office and administration&nbsp; </TD>
    <TD width=8% align=right> 88,512 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 199,224 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 189,976 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 121,738 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 98,580 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 78,827 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 63,676 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 51,770 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Premium paid for GRTLP&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 5,095,249 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Property investigation&nbsp; </TD>
    <TD width=8% align=right> 4 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 141,063 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> (47,805 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=8% align=right> 37,071 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 10,734 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Refinery project&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 500,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Restart project&nbsp; </TD>
    <TD width=8% align=right> 14,982,008 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; 500,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Salaries and benefits&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Shareholder&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> communications&nbsp; </TD>
    <TD width=8% align=right> 34,142 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 18,694 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 530,704 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 73,802 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 7,833 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 4,223 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 39,104 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 23,527 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Trust and filing&nbsp; </TD>
    <TD width=8% align=right> 53,052 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 13,842 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 17,241 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 4,395 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 1,250 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 8,421 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 10,698 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 744 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Interest and other (income)&nbsp; </TD>
    <TD width=8% align=right> (4,464,851 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=8% align=right> (228,670 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=8% align=right> (325,399 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=8% align=right> (135,289 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=8% align=right> (129,811 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=8% align=right> (353,537 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=8% align=right> 64,623 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> (302,755 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Gain on sale of property&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> plant and equipment&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> (131,638 </TD>
    <TD width=2% align=left> )&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Income taxes&nbsp; </TD>
    <TD width=8% align=right> 23,744,000 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Write down of mineral&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> property acquisition costs&nbsp; </TD>
    <TD width=8% align=right> 28,810,296 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> &#8211; </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> Stock-based compensation&nbsp; </TD>
    <TD width=8% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 2,035,178 </TD>
    <TD width=2% align=left 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"> 1,526,084 </TD>
    <TD width=2% align=left 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"> 296,686 </TD>
    <TD width=2% align=left 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"> 1,314,296 </TD>
    <TD width=2% align=left 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"> 65,344 </TD>
    <TD width=2% align=left 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"> &#8211; </TD>
    <TD width=2% align=left 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"> &#8211; </TD>
    <TD width=2% align=left 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"> &#8211; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Loss for the period&nbsp; </TD>
    <TD width=8% align=right> 64,033,892 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 6,329,578 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 7,015,273 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 3,285,828 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 1,082,865 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 988,882 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 1,044,924 </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=right> 393,842 </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Accretion expense on&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> convertible debenture&nbsp; </TD>
    <TD width=8% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 245,431 </TD>
    <TD width=2% align=left 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"> 244,091 </TD>
    <TD width=2% align=left 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"> 242,752 </TD>
    <TD width=2% align=left 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"> 245,431 </TD>
    <TD width=2% align=left 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"> 888,823 </TD>
    <TD width=2% align=left 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"> &#8211; </TD>
    <TD width=2% align=left 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"> &#8211; </TD>
    <TD width=2% align=left 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"> &#8211; </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Basic and diluted loss per&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> share&nbsp; </TD>
    <TD width=8% align=right style="border-bottom-width:1px;border-bottom-style:solid"> (0.74 </TD>
    <TD width=2% align=left 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"> (0.08 </TD>
    <TD width=2% align=left 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"> (0.10 </TD>
    <TD width=2% align=left 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"> (0.06 </TD>
    <TD width=2% align=left 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"> (0.04 </TD>
    <TD width=2% align=left 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"> (0.02 </TD>
    <TD width=2% align=left 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"> (0.02 </TD>
    <TD width=2% align=left 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"> (0.01 </TD>
    <TD width=2% align=left style="border-bottom-width:1px;border-bottom-style:solid"> )&nbsp; </TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Weighted average number&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> of common shares&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
    <TD width=8% align=left> </TD>
    <TD width=2% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid"> outstanding (thousands)&nbsp; </TD>
    <TD width=8% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 87,368 </TD>
    <TD width=2% align=left 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"> 71,384 </TD>
    <TD width=2% align=left 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"> 65,005 </TD>
    <TD width=2% align=left 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"> 57,481 </TD>
    <TD width=2% align=left 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"> 46,984 </TD>
    <TD width=2% align=left 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"> 44,660 </TD>
    <TD width=2% align=left 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"> 40,173 </TD>
    <TD width=2% align=left 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"> 34,057 </TD>
    <TD width=2% align=left 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_8"></A>
<P align="center"><B>TASEKO MINES LIMITED<br>
  </B><B>YEAR ENDED SEPTEMBER 30, 2004</B></P>
<P align="center" style="border-bottom-width:1px;border-bottom-style:solid"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS<br>
  </B></P>
<P>
<B>1.6 Liquidity </B></P>
<P align="justify"> Historically Taseko&#8217;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 &#36;17 million non-interest-bearing
  convertible debenture financing by Boliden Westmin (Canada) Ltd. Taseko has
  the right and the intention to convert the debenture into common shares. Accordingly,
  under Canadian accounting standards, the &#36;17 million debenture is classified
  as equity on the Company's balance sheet. </P>
<P align="justify"> Reclamation deposits totaling approximately &#36;17.6 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 &#36;32.7 million is secured
  by reclamation deposits and plant and equipment. The &#36;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. 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&#8217;
  equity on the balance sheet.</P>
<P align="justify"> At September 30, 2004, Taseko had a working capital deficiency
  of approximately &#36;19.8 million, as compared to positive working capital
  of &#36;18.4 million at the end of the previous quarter, and &#36;2.3 million
  at the end of the same period in 2003. The decrease in working capital from
  the end of the previous quarter was principally a result of deposits made for
  the purchase of a mining shovel and for five mine haul trucks as well as an
  accrual for taxes.</P>
<P align="justify"> The Company has accrued a tax provision of a subsidiary company
  of &#36;23.7 million in the accompanying financial statements. Although management
  believes it is less than likely that this amount ever becoming payable, a liability
  has been recognized in a conservative manner in accordance with Canadian generally
  accepted accounting principles. It does not represent a payable amount based
  on any filed, or expected to be filed, tax return. It does not arise from a
  transaction in any completed taxation year, nor has any taxation authority assessed
  the amount or any portion thereof as payable. Accordingly there is no immediate
  impact on liquidity. </P>
<P align="justify"> Management anticipates that revenues from copper and molybdenum
  sales along with the funds from a yet to be completed &#36;7.5 million financing
  announced in February 2005, will be sufficient to cover operating costs and
  working capital during 2005. </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&#36;10.1 million, which was completed by
  September 30, 2004. </P>
<P align="justify"> In May 2004, the Company entered into an agreement to purchase
  five mining trucks for approximately US&#36;8.2 million, of which US&#36;4.9
  million had been paid to September 30, 2004. Subsequent to September 30, 2004,
  the Company entered into arrangement with Ledcor whereby the shovel and trucks
  were sold to a third party leasing company. Ledcor has leased the equipment
  and will be reimbursed, at Ledcor&#8217;s cost, as consideration for making
  the equipment available to the joint venture in order to facilitate the operation
  of the Gibraltar mine. </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>
  </B><B>YEAR ENDED SEPTEMBER 30, 2004</B></P>
<P align="center" style="border-bottom-width:1px;border-bottom-style:solid"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS<br>
  </B></P>
<P align="justify"> The Company has a &#36;2 million operating line of credit
  with a Canadian chartered bank at an interest rate of prime, due on demand,
  with no fixed terms of repayment. As at September 30, 2004, &#36;1.86 million
  was outstanding under this line of credit. </P>
<P align="justify"> As of the date of this MD&amp;A, the Company had approximately
  16.7 million warrants outstanding, of which approximately 12.8 million were
  in-the-money. No assurance can be given that these warrants will be exercised.
  Certain of these warrants are subject to an accelerated expiry provision upon
  notice by the Company if the closing market price of the Company's shares exceeds
  &#36;1.50 for 10 consecutive trading days. Although this was achieved for a
  short period, the Company has chosen not to give notice due to variable market
  conditions, but maintains its right to do so in the future. </P>
<P align="justify"> <B>1.8 Off-Balance Sheet Arrangements </B></P>
<P align="justify"> <I>Gibraltar Engineering Services Limited Partnership </I></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 &#36;3 million and consolidated the Company&#8217;s 100% ownership
  of the copper refinery engineering business held by the GESL Partnership.</P>
<P align="justify"> <I>Gibraltar Reclamation Trust Limited Partnership</I></P>
<P align="justify"> On December 31, 2003, the Company reached agreements with
  Gibraltar Reclamation Trust Limited Partnership (the &#8220;GRT Partnership&#8221;),
  a largely arm&#8217;s-length private Vancouver-based mining investment partnership
  which completed a financing to raise proceeds of &#36;18.6 million to partially
  fund a planned restart of the Gibraltar copper mine. As part of the financing
  the GRT Partnership entered into a Joint Venture arrangement with Gibraltar
  Mines Ltd. to proceed towards restarting the Gibraltar open pit copper mine.
  Gibraltar Mines Ltd., 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 (&#8220;QET&#8221;)
  with the &#36;18.6 million, which has allowed Gibraltar to access other funds
  currently held by the Government of British Columbia as a security for the mine&#8217;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"> To facilitate the start-up transactions, five directors and
  officers of the Company personally guaranteed certain obligations (each as to
  one fifth) to third parties on behalf of the Company to the extent of &#36;4.5
  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 &#36;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 &#36;2.79 each. Certain
  directors and officers participated as investors in the GRT Partnership in the
  aggregate amount of &#36;1,300,000, or about 8% of the financing. 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>

<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>
  </B><B>YEAR ENDED SEPTEMBER 30, 2004</B></P>
<P align="center" style="border-bottom-width:1px;border-bottom-style:solid"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS<br>
  </B></P>
<P align="justify"> <B>1.9 Transactions with Related Parties </B></P>
<P align="justify"> Hunter Dickinson Inc. (&#8220;HDI&#8221;) 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 increased
  to &#36;807,000 in fiscal 2004 as compared to &#36;254,000 in fiscal 2003, primarily
  related to the increased activity of the Company. </P>
<P align="justify"> To facilitate the startup of the Gibraltar mine, certain directors
  and officers of the Company 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 &#36;1.3 million (see item 1.8
  above).</P>
<P align="justify"> Tom Milner Enterprises Inc. is a private company controlled
  by a director of the Company that provides consulting services to the Company.
  During the year ended September 30, 2004, the Company paid approximately &#36;115,000
  to this private company. </P>
<P align="justify"> <B>1.10 Fourth Quarter </B></P>
<P align="justify"> <I>Results of operations </I></P>
<P align="justify"> The Company&#8217;s loss increased to &#36;64.0 million from
  &#36;6.3 million in the third quarter of the year due to &#36;13.1 million in
  restart expenses, a non-cash &#36;23.7 million charge to income tax expense,
  and a non-cash &#36;28.8 million write down of the Harmony Project.</P>
<P align="justify"> A total of &#36;13.1 million was spent on mine restart. Restart
  expenses of &#36;1.9 million were incurred in the third quarter (beginning in
  June) but were included as exploration expenses (under site activities) in the
  third quarter statements. (As a result, exploration expenses have decreased
  from &#36;7.1 million at the end of the third quarter to &#36;5.2 million at
  year end, including a total of &#36;44,430 spent on Prosperity and Harmony in
  the fourth quarter). Exploration expenditures in the fourth quarter of fiscal
  2003 were &#36;0.6 million.</P>
<P align="justify"> The main restart expenditures were &#36;6.4 million for stripping
  at the Pollyanna pit, &#36;5.4 million for refurbishing the mill, &#36;1.7 million
  for rehabilitating site infrastructure, and &#36;0.9 million for administration.
</P>
<P align="justify"> Administrative costs in the fourth quarter were &#36;2.8 million,
  an increase from &#36;2.7 million in the fourth quarter of fiscal 2003. The
  increase is primarily related to a non-cash charge of &#36;2.0 million for stock-based
  compensation, the accounting for which began in fiscal 2004.</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>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_11"></A>
<P align="center"><B>TASEKO MINES LIMITED<br>
  </B><B>YEAR ENDED SEPTEMBER 30, 2004</B></P>
<P align="center" style="border-bottom-width:1px;border-bottom-style:solid"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS<br>
  </B></P>
<P>
<B>1.12 Critical Accounting Estimates </B></P>
<P align="justify"> The Company's accounting policies are presented in note 3
  of the accompanying financial statements. The preparation of consolidated financial
  statements in accordance with generally accepted accounting principles requires
  management to select accounting policies and make estimates. Such estimates
  may have a significant impact on the financial statements. These include:</P>
<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td width="5%" height="15" align="center" valign="top"><div align="center">&#8226;</div></td>
    <td>the estimation of mineral resources and reserves, </td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td height="15" align="center" valign="top">&#8226;</td>
    <td>the carrying values of mineral properties, </td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td height="15" align="center" valign="top">&#8226;</td>
    <td>the carrying values of property, plant and equipment, </td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td height="15" align="center" valign="top">&#8226;</td>
    <td>reclamation obligation, and </td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td height="15" align="center" valign="top">&#8226;</td>
    <td>the valuation of stock-based compensation expense. </td>
  </tr>
</table>
<P align="justify">Actual amounts could differ from the estimates used and, accordingly,
  effect the results of operation. </P>
<P align="justify"> <I>Mineral resources and reserves, and the carrying values
  of mineral properties, and of property, plant and equipment</I></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">Mineral resources and reserves are estimated by professional
        geologists and engineers in accordance with recognized industry, professional
        and regulatory standards. These estimates require inputs such as future
        metals prices, future operating costs, and various technical geological,
        engineering, and construction parameters. Changes in any of these inputs
        could cause a significant change in the resources and reserves determined,
        which in turn could have a material effect on the carrying value of property,
        plant and equipment. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">The carrying value of mineral properties is also
        dependant on the valuation used for the common shares and warrants of
        the Company issued for the acquisition of mineral properties. The value
        of the common shares issued is the price of the common shares of the Company
        at the date of issuance to effect the acquisition. </div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td> <div align="justify">The carrying value of property, plant, and equipment
        is dependant on rates used for depreciation, which themselves are estimates.
      </div></td>
  </tr>
</table>
<P align="justify"><I>Stock-based compensation expense</I></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">From time to time, the Company may grant share purchase
        options to employees, directors, and service providers. The Company uses
        the Black-Scholes option pricing model to estimate a value for these options.
        This model, and other models which are used to value options, require
        inputs such as expected volatility, expected life to exercise, and interest
        rates. Changes in any of these inputs could cause a significant change
        in the stock-based compensation expense charged in a period. </div></td>
  </tr>
</table>
<P align="justify"><I>Reclamation obligation</I></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 Company has an obligation to reclaim its properties,
        and has estimated the costs necessary to comply with existing reclamation
        standards. At September 30, 2004, the Company has estimated total reclamation
        costs to be &#36;32.7 million for its current properties, which it has
        fully accrued. The estimates are reviewed both in-house and by outside
        consultants and government authorities </div></td>
  </tr>
</table>
<br>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_12"></A>
<P align="center"><B>TASEKO MINES LIMITED<br>
  </B><B>YEAR ENDED SEPTEMBER 30, 2004</B></P>
<P align="center" style="border-bottom-width:1px;border-bottom-style:solid"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS<br>
  </B></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">on a routine basis as to the accuracy of remaining
        costs to be incurred. Estimates are adjusted as necessary and reflected
        on a prospective basis. Changes in this estimate could cause a significant
        charge to the reclamation expense recorded during a period.</div></td>
  </tr>
</table>
<P align="justify"><B>1.13 Changes in Accounting Policies including Initial Adoption
  </B></P>
<P align="justify"> The Company anticipates that it will change its accounting
  policy, effective next year, for asset retirement obligations, in accordance
  with new Canadian guidance. </P>
<P align="justify"> <B>1.14 Financial Instruments and Other Instruments </B></P>
<P align="justify"> None. </P>
<P align="justify"> <B>1.15 Other MD&amp;A Requirements </B></P>
<P align="justify"> <B>1.15.1 Other MD&amp;A Requirements </B></P>
<P align="justify"> Additional information relating to the Company, including
  the Company's Annual Information Form, is available on SEDAR at www.sedar.com.
</P>
<P align="justify"> <B>1.15.2 Additional Disclosure for Venture Issuers Without
  Significant Revenue </B></P>
<P align="justify"> Not applicable &#8211; the Company is not a "Venture Issuer".
</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_13"></A>
<P align="center"> <B>TASEKO MINES LIMITED<br>
  </B><B>YEAR ENDED SEPTEMBER 30, 2004</B></P>
<P align="center" style="border-bottom-width:1px;border-bottom-style:solid"> <B>MANAGEMENT'S DISCUSSION AND ANALYSIS<br>
  </B></P>
<P align="left"> <B>1.15.3 Disclosure of Outstanding Share Data </B></P>
<P align="left"> The following details the share capital structure as at February
  8, 2005, 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 valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=12% align=right>Exercise&nbsp;</TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left style="border-bottom-width:1px;border-bottom-style:solid">&nbsp; </TD>
    <TD width=12% align=left style="border-bottom-width:1px;border-bottom-style:solid"> Expiry date&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> price&nbsp; </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"> Number&nbsp; </TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> Number&nbsp; </TD>
    <TD width=2% align=right style="border-bottom-width:1px;border-bottom-style:solid">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Common shares&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=12% align=right> 97,120,452&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Share purchase options&nbsp; </TD>
    <TD width=12% align=left> May 9, 2005&nbsp; </TD>
    <TD width=12% align=right> &#36; 0.38&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right> 20,000&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD width=12% align=left> July 29, 2005&nbsp; </TD>
    <TD width=12% align=right> 0.25&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right> 50,000&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left>&nbsp; </TD>
    <TD width=12% align=left> September&nbsp;29,&nbsp;2006&nbsp; </TD>
    <TD width=12% align=right> 0.55&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right> 2,235,000&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD width=12% align=left> September&nbsp;20, 2005&nbsp; </TD>
    <TD width=12% align=right> 0.81&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right> 35,000&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left>&nbsp; </TD>
    <TD width=12% align=left> September&nbsp;20, 2005&nbsp; </TD>
    <TD width=12% align=right> 1.40&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right> 68,000&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD width=12% align=left> September&nbsp;20, 2005</TD>
    <TD width=12% align=right> 1.65&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right> 60,000&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left>&nbsp; </TD>
    <TD width=12% align=left> September&nbsp;20, 2006&nbsp;</TD>
    <TD width=12% align=right> 1.40&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right> 3,580,000&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD width=12% align=left> September&nbsp;29, 2006&nbsp; </TD>
    <TD width=12% align=right> 1.36&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right> 1,973,200&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left>&nbsp; </TD>
    <TD width=12% align=left> September&nbsp;29, 2006&nbsp; </TD>
    <TD width=12% align=right> 1.50&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 10,000&nbsp; </TD>
    <TD width=12% align=right> 8,031,200&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left> Warrants&nbsp; </TD>
    <TD width=12% align=left> January 8, 2006&nbsp; </TD>
    <TD width=12% align=right> 0.40&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right> 375,000&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD width=12% align=left> December 31, 2005&nbsp; </TD>
    <TD width=12% align=right> 0.75&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right> 4,463,335&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E6EFFF">
    <TD align=left>&nbsp; </TD>
    <TD width=12% align=left> March 10, 2005&nbsp; </TD>
    <TD width=12% align=right> 2.25&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right> 3,900,000&nbsp; </TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=2% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD width=12% align=left> September&nbsp;28, 2006&nbsp; </TD>
    <TD width=12% align=right> 1.40&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
    <TD width=12% align=right style="border-bottom-width:1px;border-bottom-style:solid"> 8,000,000&nbsp; </TD>
    <TD width=12% align=right> 16,738,335&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
  <TR bgcolor="#E6EFFF">
    <TD>&nbsp; </TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> Preferred shares redeemable into Taseko Mines Limited common
      shares&nbsp; </TD>
    <TD width=12% align=left>&nbsp;</TD>
    <TD width=12% align=left>&nbsp;</TD>
    <TD width=2% align=left>&nbsp;</TD>
    <TD width=12% align=left>&nbsp; </TD>
    <TD width=12% align=right> 12,483,916&nbsp; </TD>
    <TD width=2% align=right>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
The Company's auditors have not opined on this MD&amp;A. <br>
<br>
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