Filed by Automated Filing Services Inc. (604) 609-0244 - Taseko Mines Ltd.

Filed by Automated Filing Services Inc. (604) 609-0244 - Taseko Mines Ltd. - Exhibit 99.1

FINANCIAL STATEMENTS

SIX MONTHS ENDED MARCH 31, 2006

(Expressed in Canadian Dollars)

(Unaudited)

These financial statements have not been reviewed by the Company's auditors

TASEKO MINES LIMITED

Consolidated Balance Sheets

(Expressed in Canadian Dollars)

		March 31			September 30
		2006			2005
		(unaudited)
Assets

Current assets
Cash and equivalents	$	31,626,616		$	21,728,789
Accounts receivable		12,418,551			6,746,378
Concentrate inventory		12,005,800			16,284,800
Supplies inventory		5,099,497			4,589,431
Prepaid expenses		845,222			1,914,214
Current portion of future income taxes		2,069,000			4,479,000
Current portion of promissory note		774,327			2,637,499
		64,839,013			58,380,111
Restricted cash		5,000,000			5,000,000
Mineral properties, plant and equipment		10,025,533			9,916,992
Assets under capital leases		19,795,000			20,794,000
Reclamation deposits		18,711,938			18,281,420
Promissory note		70,239,750			69,680,355
Future income taxes		8,944,000			8,944,000
	$	197,555,234		$	190,996,878

Liabilities and Shareholders' Equity

Current liabilities
Accounts payable and accrued liabilities	$	8,942,084		$	12,580,463
Advances from related parties (note 4)		397,245			105,067
Current portion of vehicle loans		51,940			214,715
Current portion of capital lease obligation		2,156,674			2,092,334
Current portion of deferred revenue		8,847,469			14,748,000
Current portion of royalty obligation		774,327			2,637,499
Income taxes		19,645,000			19,645,000
		40,814,739			52,023,078
Vehicle loans		–			181,901
Capital lease obligation		11,951,771			12,984,805
Royalty obligation		65,292,865			66,153,298
Deferred revenue		1,312,500			1,400,000
Convertible debenture (note 3(c))		12,420,942			11,830,241
Site closure and reclamation costs		18,180,000			17,314,000
		149,972,817			161,887,323

Shareholders' equity
Share capital (note 3)		168,752,888			160,829,442
Convertible debenture – conversion right (note 3(c))		9,822,462			9,822,462
Tracking preferred shares		26,641,948			26,641,948
Contributed surplus		6,100,530			5,334,614
Deficit		(163,735,411	)		(173,518,911	)
		47,582,417			29,109,555
Contingency (note 5)
Subsequent event (note 6)
	$	197,555,234		$	190,996,878

See accompanying notes to consolidated financial statements.

Approved by the Board of Directors
/s/ Russell E. Hallbauer	/s/ Jeffrey R. Mason
Russell E. Hallbauer	Jeffrey R. Mason
Director	Director

TASEKO MINES LIMITED

Consolidated Statements of Operations

(Expressed in Canadian Dollars)

(Unaudited)

		Three months ended March 31						Six months ended March 31
		2006			2005			2006			2005
					(restated -						(restated -
					note 2)						note 2)

Revenue
Copper	$	31,232,211		$	25,429,196		$	67,380,684		$	25,429,196
Molybdenum		6,278,513			2,989,803			11,401,268			2,989,803
		37,510,724			28,418,999			78,781,952			28,418,999
Cost of sales		(22,573,586	)		(23,635,351	)		(48,620,218	)		(23,635,351	)
Treatment and transportation		(6,642,980	)		(3,847,703	)		(12,919,882	)		(3,847,703	)
Amortization		(852,836	)		(655,179	)		(1,701,724	)		(1,167,352	)
Operating profit (loss)		7,441,322			280,766			15,540,128			(231,407	)

Expenses (income)
Accretion of reclamation obligation		433,000			393,500			866,000			787,000
Exploration		470,840			11,694			740,469			43,741
Foreign exchange		(447,665	)		(120,290	)		(479,816	)		(484,560	)
Loss on sale of equipment		–			(17,000	)		–			2,160,992
General and administration		1,471,915			573,374			2,501,882			971,081
Interest and other income		(1,545,680	)		(1,233,485	)		(3,172,634	)		(7,670,706	)
Interest expense		1,042,774			910,049			2,124,811			1,816,363
Restart project		–			(1,214,796	)		–			6,346,650
Stock-based compensation		535,070			392,697			765,916			557,246
		1,960,254			(304,257	)		3,346,628			4,527,807

Earnings (loss) before income taxes		5,481,068			585,023			12,193,500			(4,759,214	)
Income tax expense		(4,410,000	)		–			(4,410,000	)		–
Future income tax recovery		2,000,000			–			2,000,000			–
Earnings (loss) for the period	$	3,071,068		$	585,023		$	9,783,500		$	(4,759,214	)

Earnings (loss) per share
Earnings (loss) per common share - basic	$	0.03		$	0.01		$	0.09		$	(0.05	)
Earnings (loss) per common share - diluted	$	0.03		$	0.01		$	0.08		$	(0.05	)

Weighted average number of common shares outstanding
Basic		109,111,635			97,781,420			106,830,111			96,766,944
Diluted		121,363,526			114,984,977			116,425,259			96,766,944

Consolidated Statements of Deficit

(Expressed in Canadian Dollars)

(Unaudited)

		Three months ended March 31						Six months ended March 31
		2006			2005			2006			2005
Deficit, beginning of period	$	(166,806,479	)	$	(202,152,921	)	$	(173,518,911	)	$	(196,808,684	)
Earnings (loss) for the period		3,071,068			585,023			9,783,500			(4,759,214	)
Deficit, end of period	$	(163,735,411	)	$	(201,567,898	)	$	(163,735,411	)	$	(201,567,898	)

See accompanying notes to consolidated financial statements.

TASEKO MINES LIMITED

Consolidated Statements of Cash Flows

(Expressed in Canadian Dollars)

		Three months ended March 31						Six months ended March 31
		2006			2005			2006			2005
					(restated -						(restated -
					note 2)						note 2)

Operating activities
Earnings (loss) for the period	$	3,071,068		$	585,023		$	9,783,500		$	(4,759,214	)
Items not involving cash
Loss (gain) on sale of equipment		–			(17,000	)		–			2,160,992
Amortization and accretion		852,836			655,179			1,701,724			1,167,352
Accretion of reclamation obligation		433,000			393,500			866,000			787,000
Stock-based compensation		535,070			392,697			765,916			557,246
Future income taxes		2,410,000			–			2,410,000			–
Changes in non-cash operating working capital
Accounts receivable		(3,234,530	)		(3,102,424	)		(5,672,173	)		(1,997,860	)
Inventories		777,209			(1,227,990	)		3,768,934			(11,628,395	)
Prepaids		791,677			(1,183,668	)		1,068,992			(1,135,407	)
Accrued interest income on promissory note		(1,065,060	)		(1,027,411	)		(2,158,744	)		(2,069,778	)
Accounts payable and accrued liabilities		(1,677,588	)		612,453			(3,638,379	)		(4,262,773	)
Deferred revenue		3,943,213			(43,750	)		(5,988,031	)		(87,500	)
Accrued interest expense on royalty obligation		360,985			371,804			738,916			741,858
Cash provided by (used for) operating activities		7,197,880			(3,591,587	)		3,646,655			(20,526,479	)

Investing activities
Purchase of property, plant and equipment		(490,126	)		(2,912,076	)		(811,265	)		(5,969,680	)
Proceeds received on sale of property, plant and equipment		–			17,000			–			22,067,711
Restricted cash		–			–			–			(5,000,000	)
Accrued interest income on reclamation deposits		(101,269	)		(128,584	)		(430,518	)		(188,430	)
Cash provided by (used for) investing activities		(591,395	)		(3,023,660	)		(1,241,783	)		10,909,601

Financing activities
Principal repayments under capital lease obligation		(459,413	)		(405,215	)		(968,694	)		(5,335,279	)
Bank operating loan		–			341,995			–			(425,021	)
Vehicle loans		(291,993	)		190,028			(344,676	)		500,070
Advances from related parties		67,152			27,120			292,178			302,601
Common shares issued for cash, net of issue costs		4,988,447			7,959,418			7,923,446			9,128,368
Accrued interest expense on convertible debenture		293,729			267,027			590,701			537,002
Cash provided by financing activities		4,597,922			8,380,373			7,492,955			4,707,741

Increase in cash and equivalents		11,204,407			1,765,126			9,897,827			(4,909,137	)
Cash and equivalents, beginning of period		20,422,209			8,218,684			21,728,789			14,892,947
Cash and equivalents, end of period	$	31,626,616		$	9,983,810		$	31,626,616		$	9,983,810

Supplementary cash flow disclosures

Cash paid for:
Interest	$	388,059		$	89,615		$	795,193		$	138,909
Taxes	$	84,349		$	554		$	–		$	45,906

See accompanying notes to consolidated financial statements.

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

For the six months ended March 31, 2006

(Expressed in Canadian Dollars)

(Unaudited)

1.	Basis of presentation and principles of consolidation

	These interim consolidated financial statements are prepared in accordance with Canadian generally accepted accounting principles. They do not include all the disclosures as required for annual financial statements under generally accepted accounting principles. However, these interim consolidated financial statements follow the same accounting policies and methods of application as the Company's most recent annual financial statements, except for the change described in note 2. These interim consolidated financial statements should be read in conjunction with the Company's annual consolidated financial statements.

	Operating results for the six month period ended March 31, 2006 are not necessarily indicative of the results that may be expected for the full fiscal year ending September 30, 2006.

2.	Change in accounting policy

	Effective October 1, 2005 the Company adopted certain new provisions of the Canadian Institute of Chartered Accountants Handbook Section 3860, Financial Instruments – Disclosure and Presentation, which came into effect on that date. The standard requires that convertible debentures which may be settled in cash, or by common shares of the Company at the Company's discretion, be presented as a liability. This change has been applied retroactively. The accretion charges that were previously recorded through deficit have been eliminated and are now included as interest expense. For the year ended September 30, 2005, this amounted to $1,075,478 (2004 – $977,705). For the six months ending March 31, 2006 it amounted to $590,701. This change had no effect on earnings (loss) per share.

3.	Share capital


(a)	Authorized

	Authorized share capital of the Company consists of an unlimited number of common shares without par value, and an unlimited number of preferred shares without par value.

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

For the six months ended March 31, 2006

(Expressed in Canadian Dollars)

(Unaudited)

(b)

Issued and outstanding

Common shares	Number of shares		Amount
Balance, September 30, 2005	103,457,316	$	160,829,442
Issued during the period
Share purchase options at $0.55 per share	610,000		335,500
Share purchase options at $1.15 per share	118,000		135,700
Share purchase options at $1.36 per share	274,300		373,048
Share purchase options at $1.40 per share	375,500		525,700
Share purchase warrants at $0.40 per share	375,000		150,000
Share purchase warrants at $0.75 per share	3,913,332		2,934,999
Share purchase warrants at $1.40 per share	1,950,000		2,730,000
Share purchase warrants at $1.66 per share	444,879		738,499
Balance, March 31, 2006	111,518,327	$	168,752,888

(c)	Convertible debenture and conversion right

	On July 21, 1999, in connection with the acquisition of the Gibraltar mine, the Company issued a $17 million interest-free debenture to Boliden Westmin (Canada) Limited (“BWCL”), which is due on July 21, 2009, but is convertible into common shares of the Company over a 10 year period commencing at a price of $3.14 per share in year one and escalating by $0.25 per share per year thereafter ($4.64 per share as at September 30, 2005). BWCL’s purchase of the convertible debenture was receivable as to $4,000,000 in July 1999, $1,000,000 on October 19, 1999, $3,500,000 on July 21, 2000, and $8,500,000 by December 31, 2000, all of which were received. BWCL has the right to convert, in part or in whole from time to time, the debenture into fully paid common shares of the Company from year one to year ten, but has not requested any conversions to date.

	From the commencement of the sixth year to the tenth year, the Company (which is currently in the seventh year of this debenture term) has the right to automatically convert the debenture into common shares at the then-prevailing market price. Commencing October 1, 2005, as a result of a new accounting standard which the Company adopted on that date, the estimated present value of the convertible debenture is presented as a long term liability (note 2) while the conversion right attributable to the debenture is presented in shareholders' equity.

	Accounting standards in Canada for compound financial instruments require the Company to allocate the proceeds received from the convertible debenture between (i) the estimated fair value of the option to convert the debenture into common shares and (ii) the estimated 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 accreted to the face value of the convertible debenture over the life of the debenture by a charge to earnings. The continuity of the convertible debenture is as follows:

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

For the six months ended March 31, 2006

(Expressed in Canadian Dollars)

(Unaudited)

		Six months ended March 31		Year ended September 30
		2006		2005
Estimated present value of convertible debenture
Beginning of period	$	11,830,241	$	10,754,763
Accretion for the period		590,701		1,075,478
End of period		12,420,942		11,830,241
Conversion right		9,822,462		9,822,462
Convertible debenture and conversion right	$	22,243,404	$	21,652,703

		March 31		September 30
		2006		2005
Summary of the convertible debenture terms
Principal amount of convertible debenture	$	17,000,000	$	17,000,000
Price per common share of the unexercised conversion right	$	4.64	$	4.64
Number of common shares potentially issuable under
unexercised conversion right		3,663,793		3,663,793

4.	Related party transactions and advances

	Related party transactions not disclosed elsewhere in these consolidated financial statements are as follows:

		Six months ended March 31			Year ended September 30
Transactions		2006			2005
Hunter Dickinson Inc.
Services rendered to the Company and its subsidiaries
and reimbursement of third party expenses	$	1,179,149		$	1,222,603
Hunter Dickinson Group Inc.

Consulting services rendered to the Company	$	–		$	12,800

Advances to (from)		March 31 2006			September 30 2005
Hunter Dickinson Inc.	$	(397,245	)	$	(105,067	)

5.	Contingent gain

	Glencore Ltd. ("Glencore") purchases the whole of the copper concentrates produced by the Gibraltar mine pursuant to the terms of a written contract (the "Contract"). Gibraltar Mines Ltd. ("Gibraltar"), which is a wholly owned subsidiary of the Company, and Glencore have a dispute

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

For the six months ended March 31, 2006

(Expressed in Canadian Dollars)

(Unaudited)

	concerning the interpretation of the Contract. Glencore asserts that the Contract provides that the price to be paid for the concentrates should be reduced by a deduction referred to as "price participation". Gibraltar asserts that the Contract does not provide for any such deduction. To March 31, 2006, Glencore has withheld approximately US$5.0 million from invoices rendered by Gibraltar and is claiming repayment of a further US$0.5 million, on the basis of its interpretation of the Contract. Of this amount, US$1.6 million was withheld during the quarter ended March 31, 2006.

	The dispute is set for arbitration in London, England, in June 2006. If Gibraltar is successful in the arbitration, and there is no appeal, then Gibraltar should immediately receive the full amount that has been withheld by Glencore.

	These amounts have not been accrued in the consolidated financial statements of the Company.

6.	Subsequent event

	Subsequent to March 31, 2006, the Company extinguished the capital lease obligations related to certain large mining equipment, with a cash payment of approximately $15.4 million in April 2006.