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Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001062993-10-003746.txt : 20101115
<SEC-HEADER>0001062993-10-003746.hdr.sgml : 20101115
<ACCEPTANCE-DATETIME>20101115171833
ACCESSION NUMBER:		0001062993-10-003746
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		7
CONFORMED PERIOD OF REPORT:	20100930
FILED AS OF DATE:		20101115
DATE AS OF CHANGE:		20101115

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TASEKO MINES LTD
		CENTRAL INDEX KEY:			0000878518
		STANDARD INDUSTRIAL CLASSIFICATION:	GOLD & SILVER ORES [1040]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			A1
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31965
		FILM NUMBER:		101194001

	BUSINESS ADDRESS:	
		STREET 1:		SUITE 1020
		STREET 2:		800 WEST PENDER STREET
		CITY:			VANCOUVER
		STATE:			A1
		ZIP:			V6C 2V6
		BUSINESS PHONE:		604-684-6365

	MAIL ADDRESS:	
		STREET 1:		SUITE 1020
		STREET 2:		800 WEST PENDER STREET
		CITY:			VANCOUVER
		STATE:			A1
		ZIP:			V6C 2V6
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>form6k.htm
<DESCRIPTION>FORM 6-K
<TEXT>
<HTML>
<HEAD>
<TITLE>Taseko Mines Ltd.: Form 6-K - Filed by newsfilecorp.com</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF" style="font-size: 10pt;">
<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"><b>REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16
  OR 15d-16 <br>
  UNDER THE SECURITIES EXCHANGE ACT OF 1934</b></p>
<p align="center">As at <b>November 15, 2010</b></p>

<p align="center">Commission File Number: <b>001-31965</b></p>

<p align="center"><b><u><font size="5">TASEKO MINES LTD.</font></u></b><br>
  (Translation of registrant's name into English) </p>

<p align="center"><b>Suite 300 &#150; 905 West Pender Street<br>
  Vancouver, British Columbia<br>
  <u>Canada V6C 1L6</u></b><br>
  (Address of principal executive offices) </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.</p>
<p align="center">[<font style="font-size:1px;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>]
  Form 20-F&nbsp;&nbsp;&nbsp;[ x ] Form 40-F</p>
<p align="center">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): [<font style="font-size:1px;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>]</p>
<p align="center"> 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): [<font style="font-size:1px;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>]</p>
<p align="center">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.</p>
<p align="center">Yes [<font style="font-size:1px;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>]
  No [ x ]</p>
<p align="center"> If &quot;Yes&quot; is marked, indicate below the file number
  assigned to the registrant in connection with Rule 12g3-2(b): 82- _________
</p>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<p align="center"><img src="tasekologo.jpg"></p>
<p align="center"><b><u>SUBMITTED HEREWITH</u></b></p>

<p align="left"><u>Exhibits</u></p>

<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top" bgcolor="#EEEEEE">&nbsp;</td>
    <td width="5%" valign="top" bgcolor="#EEEEEE"><a href="exhibit99-1.htm">99.1</a></td>
    <td bgcolor="#EEEEEE"><a href="exhibit99-1.htm">Interim Consolidated Financial
      Statements for the Period Ended September 30, 2010</a></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" bgcolor="#EEEEEE">&nbsp;</td>
    <td valign="top" bgcolor="#EEEEEE"><a href="exhibit99-2.htm">99.2</a></td>
    <td bgcolor="#EEEEEE"><a href="exhibit99-2.htm">Management's Discussion and
      Analysis for the Period Ended September 30, 2010</a></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" bgcolor="#EEEEEE"><a href="exhibit99-3.htm"></a></td>
    <td valign="top" bgcolor="#EEEEEE"><a href="exhibit99-3.htm">99.3</a></td>
    <td bgcolor="#EEEEEE"><a href="exhibit99-3.htm">CEO-Certification</a></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" bgcolor="#EEEEEE"><a href="exhibit99-4.htm"></a></td>
    <td valign="top" bgcolor="#EEEEEE"><a href="exhibit99-4.htm">99.4</a></td>
    <td bgcolor="#EEEEEE"><a href="exhibit99-4.htm">CFO-Certification</a></td>
  </tr>
</table>
<p>&nbsp;</p>

<hr noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">

<p align="center"><strong><u>SIGNATURES</u></strong></p>

<p align="justify">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;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="50%" valign="top">&nbsp;</td>
    <td colspan="2" valign="top"><b>Taseko Mines Ltd.</b></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td colspan="2" valign="top">(Registrant)</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">Date: November 15, 2010</td>
    <td valign="top">By:</td>
    <td style="BORDER-BOTTOM: #000000 1px solid"><I>/s/ Peter Mitchell</I></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td>Peter C. Mitchell</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="50%" valign="top">&nbsp;</td>
    <td width="5%" valign="top">Title:</td>
    <td> 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>INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2010
<TEXT>



<HTML>
<HEAD>
   <TITLE>Taseko Mines Limited - Exhibit 99.1 - Filed by newsfilecorp.com</TITLE>
   <META name="HandheldFriendly" content="true">
</HEAD>

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

<HR noshade align="center" width=100% size=3 color="black">
<A name=page_1></A>
<P align=center>&nbsp;</P>
<P align=center>&nbsp;</P>
<P align=center>&nbsp;</P>
<P align=center><IMG
src="tasekologo.jpg" width="384" height="52"
border=0></P>
<BR>
<P align=center>INTERIM CONSOLIDATED FINANCIAL STATEMENTS</P>
<P align=center>&nbsp;</P>
<P align=center>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</P>
<P align=center>&nbsp;</P>
<P align=center>(Expressed in thousands of Canadian
Dollars)<BR>(Unaudited)<BR></P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_2></A>
<P align=justify><B><FONT size=4>TASEKO MINES LIMITED</FONT></B><BR><B>Interim
Consolidated Balance Sheets</B><BR>(Unaudited - Expressed in thousands of
Canadian Dollars)</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left valign="bottom" style="BORDER-TOP: #000000 2px solid" >&nbsp;    </TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-TOP: #000000 2px solid"
    >&nbsp;</TD>
    <TD
      width="17%" align=right valign="bottom" nowrap style="BORDER-TOP: #000000 2px solid">September 30 </TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-TOP: #000000 2px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-TOP: #000000 2px solid"
    >&nbsp;</TD>
    <TD width="17%" align=right valign="bottom" nowrap style="BORDER-TOP: #000000 2px solid">December
      31 </TD>
  <TD width="2%" align=left valign="bottom" style="BORDER-TOP: #000000 2px solid"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp; </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="17%" align=right valign="bottom">2010 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="17%" align=right valign="bottom">2009 </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
      >&nbsp; </TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="17%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(unaudited) </TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="17%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
  <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff ><B>ASSETS </B></TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="17%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="17%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" >&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="17%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="17%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff ><B>Current assets </B></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="17%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="17%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;Cash and equivalents </TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="17%">&nbsp;195,417 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="17%">&nbsp;35,082 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >&nbsp;Restricted cash (note
      10) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>2,603 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>3,153 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;Marketable securities and investments
      (note 5) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">11,518 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">11,856 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >&nbsp;Accounts receivable </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>13,485 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>12,505 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;Inventory (note 6) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">29,713 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">21,792 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >&nbsp;Prepaid expenses </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>1,493 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>2,112 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;Advances for equipment (note 15(a)) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">&#150; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">1,119 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >&nbsp;Current portion of
      promissory note </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>5,411 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>4,697 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
      >&nbsp;Asset under derivative instruments (note 12) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%">2,941 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%">&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >&nbsp; </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>262,581 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>92,316 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD valign="bottom" >&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="17%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="17%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff ><B>Advances for equipment
      </B>(note 15(a)) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>1,726 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>2,122 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" ><B>Reclamation deposits </B></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">23,179 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">29,421 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff ><B>Promissory note </B></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>71,285 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>73,400 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
      ><B>Mineral property interests, plant and equipment </B>(note
      7) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%">291,132 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%">337,836 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 3px double"
    >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="17%" bgColor=#e6efff><B>&nbsp;649,903 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="17%" bgColor=#e6efff><B>&nbsp;535,095 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD valign="bottom" >&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="17%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="17%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff ><B>LIABILITIES AND
      SHAREHOLDERS' EQUITY </B></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="17%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="17%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD valign="bottom" >&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="17%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="17%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff ><B>Current liabilities
</B></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="17%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="17%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;Accounts payable and accrued
      liabilities </TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="17%">&nbsp;23,435 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="17%">&nbsp;14,821 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >&nbsp;Amounts due to a
      related party (note 8) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>178 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>13 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;Current portion of long-term credit
      facility (note 11) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">&#150; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">21,896 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >&nbsp;Current portion of
      long-term loan obligations (note 9) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>8,397 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>5,782 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;Current portion of deferred revenue </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">16,654 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">175 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >&nbsp;Current portion of
      royalty obligations (note 13) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>5,411 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>11,208 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;Liability under derivative instruments
      (note 12) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">&#150; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">18,935 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >&nbsp;Income taxes payable</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>25,291 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>370 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
      >&nbsp;Current portion of future income taxes </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%">1,632 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%">1,979 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >&nbsp; </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>80,998 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>75,179 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD valign="bottom" >&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="17%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="17%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff ><B>Income taxes </B>(note 14)    </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>2,078 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>32,299 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" ><B>Royalty obligations </B>(note 13) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">53,160 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">57,621 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff ><B>Deferred revenue </B></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>525 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>656 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" ><B>Long-term credit facility </B>(note 11)</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">&#150; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">29,609 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff ><B>Long-term loan obligations
      </B>(note 9) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>22,512 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>16,916 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" ><B>Site closure and reclamation obligation
      </B></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">8,025 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">9,807 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"
    ><B>Future income taxes </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%" bgColor=#e6efff>42,326 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%" bgColor=#e6efff>16,315 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp; </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">209,624 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">238,402 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff >&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="17%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="17%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" ><B>Shareholders' equity </B></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="17%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="17%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >&nbsp;Share capital </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>337,434 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>323,734 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;Tracking preferred shares (note 17c)</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">26,642 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">26,642 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >&nbsp;Contributed surplus </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>25,961 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>20,318 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;Accumulated other comprehensive income    </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">5,552 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">4,576 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;Retained earnings (deficit) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%" bgColor=#e6efff>44,690 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%" bgColor=#e6efff>(78,577</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp; </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">440,279 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">296,693 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Commitments (note 15) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="17%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="17%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
      >Subsequent events (note 17) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="17%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="17%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 3px double"
    >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="17%" bgColor=#e6efff><B>&nbsp;649,903 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="17%" bgColor=#e6efff><B>&nbsp;535,095 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=justify><I>See accompanying notes to consolidated financial
statements.</I></P>
<P align=justify><B>Approved by the Board of Directors</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><I>/s/ Ronald W. Thiessen </I></TD>
    <TD align=left width="50%"><I>/s/ Russell E. Hallbauer </I></TD></TR>
  <TR vAlign=top>
    <TD align=left>Ronald W. Thiessen </TD>
    <TD align=left width="50%">Russell E. Hallbauer </TD></TR>
  <TR vAlign=top>
    <TD align=left>Director </TD>
    <TD align=left width="50%">Director </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_3></A>
<P align=justify><B><FONT size=4>TASEKO MINES LIMITED</FONT></B><BR><B>Interim
Consolidated Statements of Operations and Comprehensive Income</B><BR>(Unaudited
- - Expressed in thousands of Canadian Dollars, except per share amounts)</P>
<DIV>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 9pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
    <TR vAlign=top>
      <TD align=left valign="bottom" style="BORDER-TOP: #000000 2px solid">&nbsp; </TD>
      <TD width="1%"
    align=left valign="bottom" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" >&nbsp;</TD>
      <TD colspan="4"
    align=center valign="bottom" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid">Three
        months ended </TD>
      <TD width="1%"
    align=center valign="bottom" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" >&nbsp;</TD>
      <TD width="1%"
    align=center valign="bottom" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" >&nbsp;</TD>
      <TD colspan="4"
    align=center valign="bottom" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid">Nine
        months ended </TD>
      <TD width="1%"
    align=right valign="bottom" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
      <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD
      width="14%" align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">September 30, 2010 </TD>
      <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD
      width="14%" align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">September 30, 2009 </TD>
      <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD
      width="14%" align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">September 30, 2010 </TD>
      <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD
      width="14%" align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">September 30, 2009 </TD>
      <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    </TR>
    <TR>
      <TD valign="bottom">&nbsp; </TD>
      <TD width="1%" valign="bottom" >&nbsp;</TD>
      <TD width="14%" valign="bottom">&nbsp; </TD>
      <TD width="1%" valign="bottom" >&nbsp;</TD>
      <TD width="1%" valign="bottom" >&nbsp;</TD>
      <TD width="14%" valign="bottom">&nbsp; </TD>
      <TD width="1%" valign="bottom" >&nbsp;</TD>
      <TD width="1%" valign="bottom" >&nbsp;</TD>
      <TD width="14%" valign="bottom">&nbsp; </TD>
      <TD width="1%" valign="bottom" >&nbsp;</TD>
      <TD width="1%" valign="bottom" >&nbsp;</TD>
      <TD width="14%" valign="bottom">&nbsp; </TD>
      <TD width="1%" valign="bottom" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom"><B>Revenue </B></TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;Copper </TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&nbsp;34,320 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&nbsp;37,117 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&nbsp;160,038
      </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&nbsp;124,866
      </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;Molybdenum      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">3,220 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">3,015 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">9,463 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">8,070 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>37,540 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>40,132 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>169,501 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>132,936 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom"><B>Cost of sales </B></TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">18,858 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">29,082 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">95,842 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">94,550 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom"
      bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>Depletion, depreciation and amortization </B></TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>1,217 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>1,677 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>5,699 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>5,729 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>Operating profit
        </B></TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">17,465 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">9,373 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">67,960 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">32,657 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    </TR>
    <TR>
      <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom"><B>Expenses (income) </B></TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;Accretion of reclamation obligation      </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>202 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>245 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>655 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>718 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp;Exploration </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">3,619 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">805 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">6,119 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">1,888 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;Foreign exchange loss (gain) </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>1,972 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(3,108</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(1,392</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(8,119</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp;Gain on convertible bond repurchase </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(948</TD>
      <TD vAlign=bottom align=left width="1%" >) </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(1,630</TD>
      <TD vAlign=bottom align=left width="1%" >) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;General and administration </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>3,139 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>1,752 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>9,194 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>6,185 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp;Interest accretion on convertible debt </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">156 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">1,260 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;Interest and other income </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(2,917</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(1,529</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(15,158</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(5,700</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp;Interest expense </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">652 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">1,885 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">3,484 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">6,330 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;Loss (gain) on sale of marketable securities      </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(2,973</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>816 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(4,087</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>816 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp;Loss on prepayment of credit facility (note 11) </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">834 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;Premium paid on the redemption of royalty
        obligation (note 13) </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>1,302 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp;Realized loss on derivative instruments (note 12) </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">3,568 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">11,542 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">3,568 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom"
      bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;Stock-based compensation </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>1,176 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>1,073 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>7,740 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>3,311 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">4,870 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">4,715 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">20,233 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">8,627 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    </TR>
    <TR>
      <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">Earnings before other items </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">12,595 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">4,658 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">47,727 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">24,030 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
    <TR>
      <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">Other items </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;Gain (loss) on contribution to the
        joint venture (note 4) </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(3,363</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>94,019 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;Unrealized
        gain (loss) on derivative instruments (note 12) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">(5,015</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">(8,829</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">11,386 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">(11,538</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>Earnings (loss) before income taxes </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>4,217 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(4,171</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>153,132 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>12,492 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR>
      <TD valign="bottom">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp;Current income tax expense (recovery)
        (note 14) </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(3,622</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(1,220</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>4,341 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>1,542 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp; &nbsp;Future
        income tax expense (recovery) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">6,461 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">(602</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">25,524 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">(1,614</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >) </TD>
    </TR>
    <TR>
      <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 3px double"><B>Net earnings
        (loss) for the period </B></TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%">&nbsp;1,378 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%">&nbsp;(2,349</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >) </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%">&nbsp;123,267 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%">&nbsp;12,564 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    </TR>
    <TR>
      <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">Other comprehensive income (loss) </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;Unrealized gain (loss) on available-for-sale
        reclamation deposit </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>70 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>344 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>85 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(661</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp;Unrealized gain on available-for-sale marketable securities      </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">2,776 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">1,027 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">2,061 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">7,753 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;Reclassification of realized gain (loss)
        sale of marketable securities </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>936 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(1,031</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>936 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;Tax effect      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">(355</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">(289</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">(139</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">(1,154</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom"
      bgColor=#e6efff style="BORDER-BOTTOM: #000000 3px double"><B>Other comprehensive income </B></TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>&nbsp;2,491 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>&nbsp;2,018 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>&nbsp;976 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>&nbsp;6,874 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR>
      <TD valign="bottom">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom"
      bgColor=#e6efff style="BORDER-BOTTOM: #000000 3px double"><B>Total comprehensive income (loss) </B></TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>&nbsp;3,869 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>&nbsp;(331</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>) </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>&nbsp;124,243 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>&nbsp;19,438 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR>
      <TD valign="bottom">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff><B>Earnings (loss) per share </B></TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp;Basic </TD>
      <TD vAlign=bottom align=left width="1%" >$</TD>
      <TD vAlign=bottom align=right width="14%">&nbsp;0.01 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >$</TD>
      <TD vAlign=bottom align=right width="14%">&nbsp;(0.01</TD>
      <TD vAlign=bottom align=left width="1%" >) </TD>
      <TD vAlign=bottom align=left width="1%" >$</TD>
      <TD vAlign=bottom align=right width="14%">&nbsp;0.66 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >$</TD>
      <TD vAlign=bottom align=right width="14%">&nbsp;0.07 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;Diluted </TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&nbsp;0.01 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&nbsp;(0.01</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&nbsp;0.64 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&nbsp;0.07 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR>
      <TD valign="bottom">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff><B>Weighted average number of common shares
        outstanding (expressed in thousands) </B></TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp;Basic </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">184,975 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">182,197 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">185,748 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">170,027 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;Diluted </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>192,419 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>182,197 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>193,192 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>176,301 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P align=justify><I>See accompanying notes to consolidated financial
statements.</I></P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_4></A>
<P align=justify><B><FONT size=4>TASEKO MINES LIMITED</FONT></B><BR><B>Interim
Consolidated Statements of Shareholders' Equity</B><BR>(Expressed in thousands
of Canadian Dollars, except for per share and share amounts)</P>
<DIV>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 9pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
    <TR vAlign=top>
    <TD align=left valign="bottom" style="BORDER-TOP: #000000 2px solid">&nbsp; </TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-TOP: #000000 2px solid"
    >&nbsp;</TD>
      <TD width="14%" align=left valign="bottom" style="BORDER-TOP: #000000 2px solid">&nbsp; </TD>
      <TD width="1%" align=left valign="bottom" style="BORDER-TOP: #000000 2px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-TOP: #000000 2px solid"
    >&nbsp;</TD>
      <TD width="14%" align=right valign="bottom" style="BORDER-TOP: #000000 2px solid">Nine months
        ended </TD>
      <TD width="1%" align=left valign="bottom" style="BORDER-TOP: #000000 2px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-TOP: #000000 2px solid"
    >&nbsp;</TD>
      <TD width="14%" align=left valign="bottom" style="BORDER-TOP: #000000 2px solid">&nbsp; </TD>
      <TD width="1%" align=left valign="bottom" style="BORDER-TOP: #000000 2px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-TOP: #000000 2px solid"
    >&nbsp;</TD>
      <TD width="14%" align=right valign="bottom" style="BORDER-TOP: #000000 2px solid">Year ended      </TD>
      <TD width="1%" align=left valign="bottom" style="BORDER-TOP: #000000 2px solid"
    >&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
      <TD width="14%" align=left valign="bottom">&nbsp; </TD>
      <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
      <TD width="14%" align=right valign="bottom" nowrap>September 30, 2010 </TD>
      <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
      <TD width="14%" align=left valign="bottom">&nbsp; </TD>
      <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
      <TD width="14%" align=right valign="bottom" nowrap>December 31, 2009 </TD>
      <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="14%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
      <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD
      width="14%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><I>(unaudited) </I></TD>
      <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="14%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
      <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
      <TD width="14%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
      <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
      <TD width="14%" valign="bottom">&nbsp; </TD>
      <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
      <TD width="14%" valign="bottom">&nbsp; </TD>
      <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
      <TD width="14%" valign="bottom">&nbsp; </TD>
      <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
      <TD width="14%" valign="bottom">&nbsp; </TD>
      <TD width="1%" valign="bottom" >&nbsp;</TD>
    </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom"><B>Common shares </B></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD width="14%" align=right vAlign=bottom nowrap><B><U>Number of shares </U></B></TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD width="14%" align=right vAlign=bottom nowrap><B><U>Number of shares </U></B></TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Balance at beginning of the period </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>182,924,664 $ </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>323,734 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>153,187,116 $ </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>285,690 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Share purchase options at $1.00 per share </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">554,000 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">554 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">893,750 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">894 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Share purchase options at $1.15 per share    </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>1,236,667 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>1,422 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>66,333 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>76 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Share purchase options at $1.71 per share </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">100,667 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">172 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">33,666 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">58 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Share purchase options at $1.90 per share    </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>7,000 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>13 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Share purchase options at $2.07 per share </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">20,000 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">41 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">50,000 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">103 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Share purchase options at $2.18 per share    </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>32,000 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>70 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>100,000 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>218 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Share purchase options at $3.07 per share </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">35,000 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">108 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">11,000 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">34 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Share purchase options at $4.03 per share    </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>60,000 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>242 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Share purchase options at $4.50 per share </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">52,000 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">234 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Share purchase options at $4.77 per share    </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>4,000 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>19 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Fair value of stock options allocated to shares issued on
      exercise </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">2,097 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">2,108 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Shares issued for the purchase of royalty
      interest (note 13) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>1,556,355 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>7,813 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Shares issued for donation </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">225,000 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">928 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Equity financings at $1.45 per share, net
      of issue costs </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>19,490,084 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>26,817 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">Warrants exercised    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">&#150; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">&#150; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">9,085,715 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">7,723 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom"
      bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">Balance at end of the period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>186,800,353 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>337,434 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>182,924,664 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>323,734 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Equity component of convertible debt
    </B></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left>Balance at beginning of the period </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">3,832 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Repurchase of convertible bond </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>&#150; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>(3,832</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>) </TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">Balance at end of
      the period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="14%">&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">&#150; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="14%">&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">&#150; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom"><B>Tracking preferred shares </B></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom"
      bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">Balance at beginning and end of the period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>26,642 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>26,642 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Contributed surplus </B></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Balance at beginning of the period </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">20,318 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">14,561 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Stock-based compensation </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>7,740 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>5,696 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Repurchase of convertible bond </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">2,169 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom"
      bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">Fair value of stock options allocated to shares issued on
      exercise </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>(2,097</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>(2,108</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>) </TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">Balance at end of
      the period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="14%">&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">25,961 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="14%">&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">20,318 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom"><B>Accumulated other comprehensive income (loss) </B></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Balance at beginning of the period </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>4,576 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(6,680</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>) </TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Unrealized gain (loss) on reclamation deposits </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">85 </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(1,040</TD>
      <TD vAlign=bottom align=left width="1%" >) </TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Unrealized gain on available-for-sale
      marketable securities </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>2,061 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>14,263 </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Reclassification of realized gain on sale of marketable
      securities </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(1,031</TD>
      <TD vAlign=bottom align=left width="1%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(188</TD>
      <TD vAlign=bottom align=left width="1%" >) </TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom"
      bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">Tax effect </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>(139</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>(1,779</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>) </TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">Balance at end of
      the period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="14%">&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">5,552 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="14%">&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">4,576 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom"><B>Retained earnings (deficit) </B></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Balance at beginning of the period </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(78,577</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(89,138</TD>
      <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>) </TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">Net earnings for
      the period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="14%">&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">123,267 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="14%">&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">10,561 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom"
      bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">Balance at end of the period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>44,690 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>(78,577</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>) </TD>
    </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%" >&nbsp;</TD>
    </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom"
      bgColor=#e6efff style="BORDER-BOTTOM: #000000 3px double"><B>TOTAL SHAREHOLDERS' EQUITY </B></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%" bgColor=#e6efff></TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>440,279 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%" bgColor=#e6efff></TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>296,693 </TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    </TR></TABLE></DIV>
<P align=justify><I>See accompanying notes to consolidated financial
statements.</I></P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_5></A>
<P align=justify><B><FONT size=4>TASEKO MINES LIMITED</FONT></B><BR><B>Interim
Consolidated Statements of Cash Flows</B><BR>(Unaudited - Expressed in thousands
of Canadian Dollars)</P>
<DIV>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 9pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
    <TR vAlign=top>
      <TD align=left valign="bottom" style="BORDER-TOP: #000000 2px solid">&nbsp; </TD>
      <TD width="1%"
    align=left valign="bottom" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD colspan="4"
    align=center valign="bottom" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid">Three
        months ended </TD>
      <TD width="1%"
    align=center valign="bottom" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD width="1%"
    align=center valign="bottom" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD colspan="4"
    align=center valign="bottom" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid">Nine months ended </TD>
      <TD width="1%"
    align=right valign="bottom" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
      <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
      width="14%" align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">September 30, 2010 </TD>
      <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
      width="14%" align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">September 30, 2009 </TD>
      <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
      width="14%" align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">September 30, 2010 </TD>
      <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD
      width="14%" align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid">September 30, 2009 </TD>
      <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    </TR>
    <TR>
      <TD valign="bottom">&nbsp; </TD>
      <TD width="1%" valign="bottom">&nbsp;</TD>
      <TD width="14%" valign="bottom">&nbsp; </TD>
      <TD width="1%" valign="bottom">&nbsp;</TD>
      <TD width="1%" valign="bottom">&nbsp;</TD>
      <TD width="14%" valign="bottom">&nbsp; </TD>
      <TD width="1%" valign="bottom">&nbsp;</TD>
      <TD width="1%" valign="bottom">&nbsp;</TD>
      <TD width="14%" valign="bottom">&nbsp; </TD>
      <TD width="1%" valign="bottom">&nbsp;</TD>
      <TD width="1%" valign="bottom">&nbsp;</TD>
      <TD width="14%" valign="bottom">&nbsp; </TD>
      <TD width="1%" valign="bottom">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom"><B>Operating activities </B></TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;Net (loss) earnings for the period      </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&nbsp;1,378 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&nbsp;(2,349</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&nbsp;123,267
      </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&nbsp;12,564 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp;Items not involving cash </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Accretion of reclamation
        obligation </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>202 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>245 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>655 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>718 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp;Depreciation, depletion and amortization      </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">1,217 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">1,677 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">5,699 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">5,729 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Unrealized foreign exchange
        loss (gain) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>155 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(4,050</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(1,723</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(7,876</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp;Future income taxes </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">6,461 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(602</TD>
      <TD vAlign=bottom align=left width="1%">) </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">25,524 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(1,614</TD>
      <TD vAlign=bottom align=left width="1%">) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Loss (gain) on contribution
        to the joint venture (note 4) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>3,363 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(94,019</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp;Gain on convertible debt repurchase </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(948</TD>
      <TD vAlign=bottom align=left width="1%">) </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(1,630</TD>
      <TD vAlign=bottom align=left width="1%">) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Loss (gain) on sale of
        marketable securities </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(2,973</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>816 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(4,087</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>816 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp;Interest accretion on convertible debt      </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">156 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">1,260 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Interest accretion on
        long-term credit facility </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>128 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>211 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>293 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp;Loss on prepayment of credit facility
        (note 11) </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">834 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Non cash donation expense      </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>425 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>928 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp;Premium paid on the redemption of royalty
        obligation (note 13) </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">1,302 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Site closure and reclamation
        expenditures </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(45</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(66</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(85</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(1,045</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp;Stock-based compensation </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">1,176 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">1,073 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">7,740 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">3,311 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Unrealized loss (gain)
        on derivative instruments </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>5,015 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>8,829 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(11,386</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>11,538 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp;Changes in non-cash operating working capital </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Accounts payable and
        accrued liabilities </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>8,110 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>1,076 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>8,614 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(36,398</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp;Accounts receivable </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">11,196 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">266 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(980</TD>
      <TD vAlign=bottom align=left width="1%">) </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(3,070</TD>
      <TD vAlign=bottom align=left width="1%">) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Accrued interest recovery
        (expense) on royalty obligation </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>317 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>335 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(3,747</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(2,379</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp;Accrued interest income on promissory
        note </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(1,110</TD>
      <TD vAlign=bottom align=left width="1%">) </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(1,114</TD>
      <TD vAlign=bottom align=left width="1%">) </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">1,401 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">85 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Amounts due to a related
        party </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>2,104 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>364 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>165 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(871</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp;Deferred revenue </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">16,436 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">3,953 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">16,348 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">3,865 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Income taxes payable      </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(4,305</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(464</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(5,300</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>1,406 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp;Inventory </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(14,498</TD>
      <TD vAlign=bottom align=left width="1%">) </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(4,988</TD>
      <TD vAlign=bottom align=left width="1%">) </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(13,158</TD>
      <TD vAlign=bottom align=left width="1%">) </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(2,123</TD>
      <TD vAlign=bottom align=left width="1%">) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Asset/liability under
        derivative instruments </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>1,790 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(3,160</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>1,790 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp; &nbsp; &nbsp;Prepaid
        expenses </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">740 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">(397</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">235 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">(2,720</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom"
      bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">Cash provided by (used for) operating activities </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>35,364 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>5,730 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>55,278 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>(16,351</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>) </TD>
    </TR>
    <TR>
      <TD valign="bottom">&nbsp; </TD>
      <TD vAlign=bottom width="1%">&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%">&nbsp;</TD>
      <TD vAlign=bottom width="1%">&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%">&nbsp;</TD>
      <TD vAlign=bottom width="1%">&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%">&nbsp;</TD>
      <TD vAlign=bottom width="1%">&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff><B>Investing activities </B></TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp;Accrued interest income on reclamation deposits </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(465</TD>
      <TD vAlign=bottom align=left width="1%">) </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(305</TD>
      <TD vAlign=bottom align=left width="1%">) </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(1,003</TD>
      <TD vAlign=bottom align=left width="1%">) </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(1,601</TD>
      <TD vAlign=bottom align=left width="1%">) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;Advances to joint venture (note 4)      </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(132</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(3,363</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp;Funds released from reclamation deposits </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">3,900 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;Funds released from restricted cash      </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(95</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>2,326 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>514 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>4,400 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp;Investment in derivative asset </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(7,331</TD>
      <TD vAlign=bottom align=left width="1%">) </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(7,331</TD>
      <TD vAlign=bottom align=left width="1%">) </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;Investment in marketable securities      </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(7,793</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(4,421</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(10,993</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(4,421</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp;Proceeds from contribution to the joint venture (note
        4) </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">186,811 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;Proceeds from sale of marketable securities      </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>14,049 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>3,565 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>16,449 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>3,565 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp;Purchase of property, plant and equipment </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(26,115</TD>
      <TD vAlign=bottom align=left width="1%">) </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(1,769</TD>
      <TD vAlign=bottom align=left width="1%">) </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(38,417</TD>
      <TD vAlign=bottom align=left width="1%">) </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(14,327</TD>
      <TD vAlign=bottom align=left width="1%">) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom"
      bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;Reclamation deposits </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>&#150; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>(45</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>&#150; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>(45</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">Cash provided by
        (used for) investing activities </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">(27,882</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">(649</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">142,667 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">(8,529</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">) </TD>
    </TR>
    <TR>
      <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom width="14%" bgColor=#e6efff>&nbsp; </TD>
      <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom"><B>Financing activities </B></TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="14%">&nbsp; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;Capital lease payments </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(726</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(802</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(2,239</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(2,340</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp;Common shares issued for cash, net of issue costs </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">88 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">307 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">2,862 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">35,148 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;Principal repayment of loan obligations      </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(651</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(1,520</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp;Repayment of bank indebtedness </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">(5,737</TD>
      <TD vAlign=bottom align=left width="1%">) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;Proceeds from loan obligations </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>14,077 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>1,820 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>14,077 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>5,016 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom">&nbsp;Proceeds from royalty obligation </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">6,511 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">&#150; </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%">6,511 </TD>
      <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;Repayment (proceeds) of long term credit
        facility (note 11) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>&#150; </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>20,910 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>(50,790</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>) </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>56,997 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;Re-purchase
        of convertible debt </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">&#150; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">(25,270</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">&#150; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">(33,678</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom"
      bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">Cash provided by (used for) financing activities </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>12,788 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>3,476 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>(37,610</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%" bgColor=#e6efff>61,917 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR>
      <TD valign="bottom">&nbsp; </TD>
      <TD vAlign=bottom width="1%">&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%">&nbsp;</TD>
      <TD vAlign=bottom width="1%">&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%">&nbsp;</TD>
      <TD vAlign=bottom width="1%">&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%">&nbsp;</TD>
      <TD vAlign=bottom width="1%">&nbsp;</TD>
      <TD vAlign=bottom width="14%">&nbsp; </TD>
      <TD vAlign=bottom width="1%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" bgColor=#e6efff><B>Increase in cash and equivalents </B></TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>20,270 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>8,557 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>160,335 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD vAlign=bottom align=right width="14%" bgColor=#e6efff>37,037 </TD>
      <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">Cash and equivalents,
        beginning of period </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">175,147 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">33,067 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">35,082 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="14%">4,587 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left valign="bottom"
      bgColor=#e6efff style="BORDER-BOTTOM: #000000 3px double"><B>Cash and equivalents, end of period </B></TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><B>$</B></TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%" bgColor=#e6efff><B>&nbsp;195,417 </B></TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><B>$</B></TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%" bgColor=#e6efff><B>&nbsp;41,624 </B></TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><B>$</B></TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%" bgColor=#e6efff><B>&nbsp;195,417 </B></TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><B>$</B></TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="14%" bgColor=#e6efff><B>&nbsp;41,624 </B></TD>
      <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P align=justify>Supplemental cashflow information (note 16) </P>
<P align=justify><I>See accompanying notes to consolidated financial
statements.</I></P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_6></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Interim Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2010 and
      2009 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      Expressed in thousands of Canadian dollars, except per ounce figures,
      unless stated otherwise) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>1. </B></TD>
    <TD>
      <P align=justify><B>NATURE OF OPERATIONS AND BASIS OF
    PRESENTATION</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Taseko Mines Limited (the "Company") is engaged in mining
      and mine development. The Company operates one mine, and holds two
      advanced stage projects and one exploration property, all located in
      British Columbia, Canada. These are the Gibraltar copper-molybdenum mine,
      the Prosperity gold-copper project, the Harmony gold project and the Aley
      niobium property.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>These interim consolidated financial statements have been
      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. These
      interim consolidated financial statements should be read in conjunction
      with the Company's annual consolidated financial statements for the year
      ended December 31, 2009, which are available through the internet on SEDAR
      at <U><FONT color=#0000ff>www.sedar.com</FONT></U>.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>These interim consolidated financial statements include
      the accounts of the Company and its subsidiaries. Interests in joint
      ventures are accounted for using the proportionate consolidation method.
      Under this method, the Company includes in its accounts the Company's
      proportionate share of assets, liabilities, revenues, and expenses. These
      consolidated financial statements include the Company's pro-rata share of
      its 75% interest in the Gibraltar Joint Venture since its formation on
      March 31, 2010 (note 4).</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>All material intercompany accounts and transactions have
      been eliminated.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Operating results for the nine months ended September 30,
      2010 are not necessarily indicative of the results that may be expected
      for the full fiscal year ending December 31, 2010.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>2. </B></TD>
    <TD>
      <P align=justify><B>SIGNIFICANT ACCOUNTING POLICIES</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>These interim consolidated financial statements follow
      the same accounting policies and methods of application as the Company's
      most recent audited annual financial statements for the financial year
      ended December 31, 2009, except as described in note 3.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>3. </B></TD>
    <TD>
      <P align=justify><B>CHANGES IN ACCOUNTING
POLICIES</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><I>(a) </I></TD>
    <TD>
      <P align=justify><I>New Accounting Standards Adopted:</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>As a result of the Company&#146;s joint venture over the
      Gibraltar Mine (note 4) on March 31, 2010, the Company has adopted the
      following standard on a prospective basis.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><I>CICA 3055 &#150; "Interests in Joint
Ventures"</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company's interests in jointly controlled assets
      (note 4) are accounted for using proportionate consolidation. The Company
      combines its share of the joint venture&#146;s individual income and expenses,
      assets and liabilities and cash flows on a line-by-line basis with similar
      items in the Company's financial statements. The Company recognizes the
      portion of gains or losses on the sale of assets by the Company to the
      joint venture that is attributable to the other venturers.
  The Company does not recognize its share of profits or losses
      from the joint venture that result from the Company's purchase of assets
      from the joint venture until it resells the assets to an independent
      party. However, a loss on the transaction is recognized immediately if the
      loss provides evidence of a reduction in the net realizable value of
  current assets, or an impairment loss.</P></TD></TR></TABLE>
<BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_7></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Interim Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2010 and
      2009 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      Expressed in thousands of Canadian dollars, except per ounce figures, unless
      stated otherwise) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>
  <TR>
    <TD vAlign=top width="5%"><I>(b)</I> </TD>
    <TD>
      <P align=justify><I>New Accounting Standards Not Yet
  Adopted:</I></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>(i)&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;International Financial Reporting Standards ("IFRS") </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>The Accounting Standards Board ("AcSB")
has announced its decision to replace Canadian generally accepted accounting
principles ("Canadian GAAP") with IFRS for all Canadian publicly-listed
companies. The AcSB announced that the changeover date will commence for interim
and annual financial statements relating to fiscal years beginning on or after
January 1, 2011. The transition date for the Company to changeover to IFRS will
be January 1, 2010. Therefore, the IFRS adoption will require the restatement
for comparative purposes of amounts reported by the Company for the year ending
December 31, 2010. The Company has already established a formal project plan,
allocated internal resources and engaged expert consultants, monitored by a
steering committee to manage the transition from Canadian GAAP to IFRS
reporting. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>(ii)</B> </TD>
    <TD>
      <P align=justify><B>Business Combinations, Consolidated Financial
      Statements, Non-Controlling Interests</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The AcSB issued CICA Sections 1582, <I>Business
      Combinations</I>, 1601, <I>Consolidated Financial Statements</I>, and
      1602, <I>Non-Controlling Interests</I>, which superseded current Sections
      1581, <I>Business Combinations</I>, and 1600, Consolidated Financial
      Statements. These new Sections replace existing guidance on business
      combinations and consolidated financial statements to harmonize Canadian
      accounting for business combinations with IFRS. These Sections will be
      applied prospectively to business combinations for which the acquisition
      date is on or after the beginning of the first annual reporting period
      beginning on or after January 1, 2011. Earlier adoption is permitted. If
      an entity applies these Sections before January 1, 2011, it is required to
      disclose that fact and apply each of the new sections concurrently. The
      Company is currently evaluating the impact of the adoption of these
      changes on its consolidated financial statements.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>4.</B> </TD>
    <TD>
      <P align=justify><B>GIBRALTAR JOINT VENTURE</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>On March 31, 2010 (the "Effective Date"), the Company
      entered into a Joint Venture Formation Agreement (the "JVFA") with Cariboo
      Copper Corp. ("Cariboo") to establish an unincorporated joint venture, the
      Gibraltar Joint Venture (the "Joint Venture"), over the Gibraltar Mine.
      The Company and Cariboo (the "Venturers") hold a 75% and a 25% beneficial
      interest in the Joint Venture, respectively.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Under the JVFA, the Company contributed certain assets
      and liabilities of the Gibraltar Mine with a deemed fair value of $747,245
      to the Joint Venture on the Effective Date. Cariboo paid the Company
      $186,811 to acquire a 25% interest in the Joint Venture. The Company
      continues to be the operator of the Gibraltar Mine under a Joint Venture
      Operating Agreement.</P></TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_8></A> <BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Interim Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2010 and
      2009 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      Expressed in thousands of Canadian dollars, except per ounce figures, unless
      stated otherwise) </TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The assets and liabilities contributed
by the Company to the Joint Venture were mineral property interests, plant and
equipment, inventory, prepaid expenses, reclamation deposits, capital lease
obligations, and site closure and reclamation obligations. </P>
<P style="MARGIN-LEFT: 5%" align=justify>As part of the JVFA, the Company and
Cariboo have votes equal to their interest in the Joint Venture. However,
certain key strategic, operating, investing and financing policies of the Joint
Venture require unanimous approval from the Venturers such that neither of the
Venturers is in a position to exercise unilateral control over the Joint
Venture.</P>
<P style="MARGIN-LEFT: 5%" align=justify>The total gain on the Company's
contribution to the Joint Venture was $389,528, of which $94,019 (net of
purchase price allocation adjustments) was recognized based on the 25%
investment by Cariboo. The remaining 75% of the gain related to the Company's
interest in the Joint Venture has been eliminated upon consolidation. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company was required to ensure that
the Joint Venture had 30 days of working capital for operations upon
commencement of the Joint Venture. The Company funded this working capital
requirement and for the period ended June 30, 2010 recorded an advance to Joint
Venture in the amount of $3,231. During the period, the Company reclassified
this advance as a purchase price adjustment in the amount of $3,363, which
included additional costs on the arrangement of $132. The Company&#146;s 75% interest
in the assets and liabilities of the Joint Venture as at September 30, 2010 are
as follows:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 3px double; BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 3px double; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD width="17%"
    align=right nowrap style="BORDER-TOP: #000000 3px double; BORDER-BOTTOM: #000000 1px solid" ><B>September 30, 2010</B> </TD>
  <TD style="BORDER-TOP: #000000 3px double; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Assets </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="17%" bgColor=#e6efff >&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp;Current assets </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="17%" >&nbsp;77,855 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;Advances for equipment </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff >1,188 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp;Reclamation deposits </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%" >22,890 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;Mineral property interests, plant and
      equipment, net </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff >281,735 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="17%" >&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Liabilities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="17%" bgColor=#e6efff >&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp;Current liabilities </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="17%" >&nbsp;28,143 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;Deferred revenue &#150; current </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff >16,479 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp;Long-term liabilities </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%" >22,512 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left
      bgColor=#e6efff>&nbsp;Site closure &amp; reclamation obligation </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="17%"
    bgColor=#e6efff >8,025 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_9></A> <BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Interim Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2010 and
      2009 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      Expressed in thousands of Canadian dollars, except per ounce figures, unless
      stated otherwise) </TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Included within the Company&#146;s statement
of operations and comprehensive income for the three and nine months ended
September 30, 2010 is the Company's 75% interest in the operations of the Joint
Venture since inception. This 75% interest is summarized as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left >&nbsp;
    </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="17%" align=right nowrap style="BORDER-TOP: #000000 1px solid"><B>Three
      months ended</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="17%" align=right nowrap style="BORDER-TOP: #000000 1px solid"><B>Nine
      months ended</B> </TD>
  <TD style="BORDER-TOP: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="17%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>September 30, 2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="17%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>September 30, 2010</B> </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Revenues </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="17%" bgColor=#e6efff>&nbsp;36,697 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="17%" bgColor=#e6efff>&nbsp;82,699 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >Operating expenses </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">18,844 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">50,653 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Depreciation and depletion
</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>1,121 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>2,929 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >Other (income) expenses </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">2,294 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">2,643 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >Other comprehensive income </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    bgColor=#e6efff>70 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    bgColor=#e6efff>164 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left
      ><B>Total comprehensive income</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="17%"><B>&nbsp;14,508</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="17%"><B>&nbsp;22,638</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Included within the cash flows of the
Company for the three and nine months ended September 30, 2010, are the
Company's 75% interest in the cash flows of the Joint Venture. This 75% interest
is summarized as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left >&nbsp;
    </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="17%" align=right nowrap style="BORDER-TOP: #000000 1px solid"><B>Three
      months ended</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="17%" align=right nowrap style="BORDER-TOP: #000000 1px solid"><B>Nine
      months ended</B> </TD>
  <TD style="BORDER-TOP: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="17%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>September 30, 2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="17%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>September 30, 2010</B> </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Operating activities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="17%" bgColor=#e6efff>&nbsp;35,327 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="17%" bgColor=#e6efff>&nbsp;38,325 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >Investing activities </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">(26,446</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">(30,196</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >Financing activities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    bgColor=#e6efff>11,550 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    bgColor=#e6efff>15,148 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>5.</B> </TD>
    <TD>
      <P align=justify><B>MARKETABLE SECURITIES AND
  INVESTMENTS</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left >&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD colspan="7"
    align=center nowrap style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"><B>As at September 30, 2010</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >&nbsp; </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD width="15%" align=right vAlign=bottom nowrap>Unrealized </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="15%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD
    width="15%" align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">Cost </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD
    width="15%" align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">gain </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD
    width="15%" align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">Fair value </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left bgColor=#e6efff
    >Continental Minerals Corporation &#150; common shares </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>&nbsp;5,657 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>&nbsp;5,861 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>&nbsp;11,518 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD colspan="7" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>As
      at December 31, 2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="15%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="15%" align=right nowrap>Unrealized </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="15%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD
    width="15%" align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">Cost </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%">gain </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD
    width="15%" align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">Fair value </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left bgColor=#e6efff
    >Continental Minerals Corporation &#150; common shares </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>&nbsp;7,026 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>&nbsp;4,830 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>&nbsp;11,856 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>As at September 30, 2010, the Company
held 4,481,526 (December 31, 2009 &#150; 5,566,126) shares of Continental Minerals
Corporation ("Continental"), a Canadian public company with certain directors in
common with the Company. During the three month period ending September 30,
2010, the Company sold the shares of an unrelated Canadian public company for
total proceeds of $14,049 realizing a gain of $2,973 on the disposition. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_10></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Interim Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2010 and
      2009 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      Expressed in thousands of Canadian dollars, except per ounce figures, unless
      stated otherwise) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>6.</B> </TD>
    <TD>
      <P align=justify><B>INVENTORY</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left >&nbsp;
    </TD>
    <TD style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD width="17%"
    align=right nowrap style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"><B>September 30</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD width="17%"
    align=right nowrap style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"><B>December 31</B> </TD>
  <TD style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="17%"><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="17%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Copper concentrate </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="17%" bgColor=#e6efff>&nbsp;17,037 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="17%" bgColor=#e6efff>&nbsp;5,830 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >Ore in-process </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">2,352 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">1,897 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Copper cathode </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>617 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>178 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >Molybdenum </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">46 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">70 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >Materials and supplies </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    bgColor=#e6efff>9,661 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    bgColor=#e6efff>13,817 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="17%"><B>&nbsp;29,713</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="17%"><B>&nbsp;21,792</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>7.</B> </TD>
    <TD>
      <P align=justify><B>MINERAL PROPERTY INTERESTS, PLANT AND
    EQUIPMENT</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left >&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD colspan="7"
    align=center style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"> <B>September 30, 2010</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="15%" align=right nowrap>Cost </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="15%" align=right nowrap>Accumulated </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="15%" align=right nowrap>Net book value </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="15%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%">amortization </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="15%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Buildings and equipment </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>&nbsp;4,711 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>&nbsp;2,301 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>&nbsp;2,410 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >Mine equipment </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">104,800 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">9,962 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">94,838 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Plant and equipment </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>78,579 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>6,953 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>71,626 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >Vehicles </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">3,157 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">1,493 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">1,664 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Computer equipment </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>2,543 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>2,421 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>122 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >Social assets </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">301 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">&#150; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">301 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Deferred pre-stripping costs </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>39,403 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>5,947 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>33,456 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >Construction in progress </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">45,507 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">&#150; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">45,507 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Assets under capital lease </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>16,896 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>541 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>16,355 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >Asset retirement costs </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">209 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">&#150; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">209 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >Net asset retirement obligation adjustment </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>(3,987</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>(3,987</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%">292,119 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%">&nbsp;29,618 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%">262,501 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff >&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="15%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="15%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="15%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >Other equipment and leasehold improvements </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">1,462 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">420 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">1,042 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >Total mineral property interests </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="15%" bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="15%" bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>27,589 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left
      ><B>Mineral properties, plant and equipment</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="15%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="15%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="15%"><B>&nbsp;291,132</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_11></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Interim Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2010 and
      2009 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      Expressed in thousands of Canadian dollars, except per ounce figures, unless
      stated otherwise) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left >&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD colspan="7"
    align=center style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"> <B>December 31, 2009</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="15%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="15%">Accumulated </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="15%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%">Cost
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD width="1%" align=left style="BORDER-BOTTOM: #000000 1px solid" >&nbsp;</TD>
    <TD width="15%" align=right style="BORDER-BOTTOM: #000000 1px solid">amortization </TD>
    <TD width="2%" align=left style="BORDER-BOTTOM: #000000 1px solid" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%">Net book
      value </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Buildings and equipment </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>&nbsp;6,281 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>&nbsp;2,807 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>&nbsp;3,474 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >Mine equipment </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">93,043 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">11,265 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">81,778 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Plant and equipment </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>104,449 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>6,824 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>97,625 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >Vehicles </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">2,856 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">1,593 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">1,263 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Computer equipment </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>3,390 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>3,130 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>260 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >Social assets </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">402 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">&#150; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">402 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Deferred pre-stripping costs </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>52,535 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>5,307 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>47,228 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >Construction in progress </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">60,616 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">&#150; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">60,616 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Assets under capital lease </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>18,222 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>333 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%" bgColor=#e6efff>17,889 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >Asset retirement costs </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">62 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">&#150; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">62 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >Net asset retirement obligation adjustment </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>(5,608</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    <TD width="1%" align=left vAlign=bottom
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="15%" align=right vAlign=bottom bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&#150; </TD>
    <TD width="2%" align=left vAlign=bottom
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>(5,608</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%">&nbsp;336,248 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom style="BORDER-BOTTOM: #000000 1px solid" >$</TD>
    <TD width="15%" align=right vAlign=bottom style="BORDER-BOTTOM: #000000 1px solid">&nbsp;31,259 </TD>
    <TD width="2%" align=left vAlign=bottom style="BORDER-BOTTOM: #000000 1px solid" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%">&nbsp;304,989 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff >&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="15%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="15%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="15%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >Other equipment and leasehold improvements </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">423 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">207 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="15%">216 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >Total mineral property interests </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="15%" bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="15%" bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="15%" bgColor=#e6efff>32,631 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left
      ><B>Mineral properties, plant and equipment</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="15%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="15%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="15%"><B>&nbsp;337,836</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>As at September 30, 2010, approximately $45,507 (December
      31, 2009 &#150; $60,616) of plant and equipment was under construction, and
      consequently was not amortized during the period.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>8.</B> </TD>
    <TD>
      <P align=justify><B>RELATED PARTY TRANSACTIONS AND
  BALANCES</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left><B>Transactions</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD colspan="4" align=center nowrap style="BORDER-TOP: #000000 1px solid"><B>Three
      months ended</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD colspan="4" align=center nowrap style="BORDER-TOP: #000000 1px solid"><B>Nine
      months ended</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=right width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD colspan="4" align=center style="BORDER-BOTTOM: #000000 1px solid"><B>September
      30</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD colspan="4" align=center style="BORDER-BOTTOM: #000000 1px solid"><B>September
      30</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2010
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2009
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2010
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2009
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Joint Venture &#150; Management fee income
      (note 8(b)) </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;187 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;&#150; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;375 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Hunter Dickinson Services Inc. (note 8(a)) &#150;&nbsp;<BR>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Services rendered to the Company
      and&nbsp;<BR> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reimbursement of
      third party expenses </TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;860 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;574 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;2,053 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;2,103 </TD>
    <TD vAlign=bottom align=left width="2%"
>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      ><B>Due to (from) related parties:</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="17%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>September 30, 2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="17%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2009</B> </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left bgColor=#e6efff
    >Hunter Dickinson Services Inc </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="17%"
    bgColor=#e6efff><B>&nbsp;178</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="17%"
    bgColor=#e6efff><B>&nbsp;13</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><I>(a)</I> </TD>
    <TD>
      <P align=justify><I>Hunter Dickinson Services Inc. ("HDSI")</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>HDSI is a private company which until recently was owned
      equally by eight public companies, one of which was Taseko. During the
      first quarter, the Company sold its interest in HDSI for nominal value.
      HDSI has certain directors in common with the Company and provides
      geological, corporate development, administrative and management services
      to, and incurs third party costs on behalf of the Company and its
      subsidiaries. On July 2, 2010, the HDSI services agreement was modified
      and services are now provided based on annually set hourly rates.
      Transactions with HDSI are reflected in the Company's statement of
      operations and comprehensive income and are measured at the exchange
      amount based on the agreement. Advances are interest bearing and due on
      demand.</P></TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_12></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Interim Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2010 and
      2009 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      Expressed in thousands of Canadian dollars, except per ounce figures, unless
      stated otherwise) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><I>(b)</I> </TD>
    <TD>
      <P align=justify><I>Management Fee</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Under the terms of the Joint Venture Operating Agreement,
      the Joint Venture pays a management fee to the Company for services
      rendered by the Company to the Joint Venture as operator of the Gibraltar
      Mine. During the nine month period ended September 30, 2010, the Company
      earned $1,500 in management fees, of which the net amount of $375 (25%)
      (2009 &#150; Nil), was recorded in the Company&#146;s accounts as other
    income.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><I>(c)</I> </TD>
    <TD>
      <P align=justify><I>Investment in Common Shares</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company holds common shares of Continental Minerals
      Corporation, a public company related by virtue of certain directors in
      common (note 5).</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>9.</B> </TD>
    <TD>
      <P align=justify><B>LONG-TERM LOAN OBLIGATIONS</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Future obligations under capital leases and long-term
      loans are as follows:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left ><B>As at September 30, 2010</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="19%"><B>Capital Lease</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="19%"><B>Long-Term</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="19%"><B>Total Long-Term</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="19%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Obligations (a)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="19%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Equipment Loan (b)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="19%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Loan Obligations</B> </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >2010 </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="19%" bgColor=#e6efff>&nbsp;1,193 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="19%" bgColor=#e6efff>&nbsp;1,486 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="19%" bgColor=#e6efff>&nbsp;2,679 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >2011 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="19%">3,946 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="19%">5,941 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="19%">9,887 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >2012 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="19%" bgColor=#e6efff>3,908 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="19%" bgColor=#e6efff>7,448 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="19%" bgColor=#e6efff>11,356 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >2013 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="19%">2,704 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="19%">3,916 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="19%">6,620 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >Thereafter until 2015 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="19%" bgColor=#e6efff>1,242 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="19%" bgColor=#e6efff>2,611 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="19%" bgColor=#e6efff>3,853 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >Total payments </TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="19%">&nbsp;12,993 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="19%">&nbsp;21,402 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="19%">&nbsp;34,395 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >Less: interest portion </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="19%" bgColor=#e6efff>(1,296</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="19%" bgColor=#e6efff>(2,190</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="19%" bgColor=#e6efff>(3,486</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Present value of obligations </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="19%">&nbsp;11,697 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="19%">&nbsp;19,212 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="19%">&nbsp;30,909 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >Current portion </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="19%" bgColor=#e6efff>(3,515</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="19%" bgColor=#e6efff>(4,882</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="19%" bgColor=#e6efff>(8,397</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      >Non-current portion </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="19%">&nbsp;8,182 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="19%">&nbsp;14,330 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="19%">&nbsp;22,512 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_13></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Interim Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2010 and
      2009 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      Expressed in thousands of Canadian dollars, except per ounce figures, unless
      stated otherwise) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left ><B>As at December 31, 2009</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="19%"><B>Capital Lease</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="19%"><B>Long-Term</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="19%"><B>Total Long-Term</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="19%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Obligations (a)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="19%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Equipment Loan (b)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="19%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Loan Obligations</B> </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >2010 </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="19%" bgColor=#e6efff>&nbsp;4,543</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="19%" bgColor=#e6efff>&nbsp;2,701</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="19%" bgColor=#e6efff>&nbsp;7,244</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >2011 </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="19%">4,266</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="19%">2,701</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="19%">6,967</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >2012 </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="19%" bgColor=#e6efff>4,215</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="19%" bgColor=#e6efff>4,710</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="19%" bgColor=#e6efff>8,925</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Thereafter until 2013 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="19%">2,612</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="19%">&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="19%">2,612</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Total payments </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="19%" bgColor=#e6efff>&nbsp;15,636</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="19%" bgColor=#e6efff>&nbsp;10,112</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="19%" bgColor=#e6efff>&nbsp;25,748</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Less: interest portion </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="19%">(1,648</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="19%">(1,402</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="19%">(3,050</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Present value of obligations
    </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="19%" bgColor=#e6efff>&nbsp;13,988</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="19%" bgColor=#e6efff>&nbsp;8,710</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="19%" bgColor=#e6efff>&nbsp;22,698 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Current portion </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="19%">(3,750</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="19%">(2,032</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="19%">(5,782</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left bgColor=#e6efff
    >Non-current portion </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="19%" bgColor=#e6efff>&nbsp;10,238</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="19%" bgColor=#e6efff>&nbsp;6,678</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="19%" bgColor=#e6efff>&nbsp;16,916 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><I>(a)</I> </TD>
    <TD>
      <P align=justify><I>Capital Lease Obligations</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Included in property, plant and equipment are mining
      equipment that the Joint Venture acquired pursuant to four to five year
      capital lease agreements.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Capital lease obligations as detailed above are secured
      by plant and equipment and are repayable in monthly installments with
      fixed interest rates. The capital lease obligations bear fixed interest
      rates ranging from 5.93% to 8.80% per annum.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>During the period, the Joint Venture entered into a
      5-year capital lease agreement to finance the purchase of a new haul truck
      for the Gibraltar Mine in the amount of $4,306. The terms of the lease
      require monthly installments of approximately $83 beginning in September,
      2010 and ending in August, 2015 at a nominal annual interest rate of
      5.99%. The Company guaranteed this financing.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><I>(b)</I> </TD>
    <TD>
      <P align=justify><I>Long-Term Equipment Loan</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Joint Venture has two existing 3-year term equipment
      loan agreements in place. These loans are secured by the underlying
      equipment at the Gibraltar Mine. The loans are repayable one month after
      inception in equal monthly installments in the amount of $169 until 2012.
      The last installments are payable in 2012 for a total amount of $2,131.
      They currently bear fixed interest rates of 8.53% and 8.63%.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>During the period, the Joint Venture entered into a new
      48-month term equipment loan to finance the purchase of a new shovel for
      the Gibraltar Mine in the amount of $18,769. The loan is secured by the
      shovel. The loan is repayable in monthly installments of $435 beginning in
      September, 2010 through to August, 2014. The loan bears a fixed interest
      rate of 5.349% and is guaranteed by the Company and
  Cariboo.</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>10.</B> </TD>
    <TD>
      <P align=justify><B>RESTRICTED CASH</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company has pledged $2,573 (US$2,500) (December 31,
      2009 &#150; nil) of cash as collateral in favor of Investec Bank plc
      ("Investec") in relation to the Company's producer put and call option
      contract with Investec (note 12).</P></TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_14></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Interim Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2010 and
      2009 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      Expressed in thousands of Canadian dollars, except per ounce figures, unless
      stated otherwise) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>During the year ended December 31, 2009, the Company had
      pledged $3,153 (US$3,000) as cash collateral in favour of Credit Suisse to
      obtain a waiver on a certain clause in the term facility agreement with
      Credit Suisse. During the three months ended March 31, 2010, these funds
      were released from restriction due to the prepayment of the term facility
      (note 11).</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>11.</B> </TD>
    <TD>
      <P align=justify><B>LONG-TERM CREDIT FACILITY</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>In February 2009, the Company entered into and drew upon
      a US$30,000 36-month term facility agreement (the "Facility") with Credit
      Suisse. In September 2009, the Company and Credit Suisse, as Facility
      Agent, and Investec Bank plc ("Investec") amended the Facility to increase
      the existing Facility by an additional US$20,000 and the Company drew an
      additional US$20,000. Under the amended facility agreement, the US$50,000
      Facility was repayable commencing April 2010 and every second month
      thereafter in equal installments of US$4,167 until February 2012. The
      Facility bore interest at LIBOR plus 5 percent which was due and payable
      bi-monthly. The long-term credit facility security provided under the
      terms of the relevant agreements included certain equipment at the
      Gibraltar Mine, a general security pledge, and the treatment and refining
      off-take agreement (note 15(b) and (c)) in addition to a corporate
      guarantee.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>During the first quarter of 2010, the Company repaid the
      Facility. A loss of $834 was recorded in the Company's statement of
      operations as a result of the early pre-payment of the Facility. The
      continuity of the Facility is as follows:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Balance at December 31, 2009 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;51,505. </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Accretion for the period </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">211 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Foreign exchange loss (gain) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(1,760</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Prepayment of Facility </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(50,790</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Loss on prepayment of facility </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>834 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left><B>Balance at
      September 30, 2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="12%"><B>&nbsp;&#150;</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>12.</B> </TD>
    <TD>
      <P align=justify><B>DERIVATIVE FINANCIAL INSTRUMENTS</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Consistent with the Company's existing strategy to manage
      its operating margins effectively in volatile copper markets, the Company
      entered into producer put and call option contracts for approximately 50%
      of its targeted copper production to the end of 2010.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Contracts outstanding at September 30, 2010 are as
      follows:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left >&nbsp; </TD>
    <TD align=right width="22%"><B>Floor Price</B> </TD>
    <TD align=right width="22%"><B>Cap Price</B> </TD>
    <TD align=right width="22%"><B>Purchased metric</B> </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      ><B>Contract Period</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="22%"><B>US$/lb</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="22%"><B>US$/lb</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="22%"><B>tonnes (mt) of copper</B> </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >October to December 2010 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="22%"
    bgColor=#e6efff>$ 2.50 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="22%"
    bgColor=#e6efff>$ 3.95 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="22%"
    bgColor=#e6efff>2,250 </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_15></A> <BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Interim Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2010 and
      2009 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      Expressed in thousands of Canadian dollars, except per ounce figures, unless
      stated otherwise) </TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Under the terms of the above contracts,
the Company will receive the prevailing market copper price while within the
price range. Should the market price be outside the price range, the Company
will receive a minimum of the floor price or a maximum of the cap price if the
market price is below the floor price and above the cap price, respectively.</P>
<P style="MARGIN-LEFT: 5%" align=justify>In August, 2010, the Company purchased
a series of put options, for 15,600 metric tonnes of copper commencing in
January, 2011 and ending in June, 2011 at a strike price of US $3.00/lb. , with
a premium per option ranging between $0.199401 and $0.211376.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="14%" align=right nowrap><B>Strike Price</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="14%" align=right nowrap><B>Premium per</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="17%" align=right nowrap ><B>Purchased metric</B> </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      ><B>Contract Period</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="14%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>US$/lb</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="14%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Contract US$</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="17%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B>tonnes (mt) of copper</B> </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >January to June 2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="14%"
    bgColor=#e6efff>&nbsp;3.00 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="14%"
    bgColor=#e6efff>&nbsp;5,275 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    bgColor=#e6efff >12,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >January to June 2011</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="14%">&nbsp;3.00 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="14%">&nbsp;1,678 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    >3,600 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The strike price sets the gross minimum
price that the Company seeks to realise for its copper production. These put
options are only exercised if the spot price declines below the set put strike
price. The Company participates in the full upside price increases and is
protected from price decreases. </P>
<P style="MARGIN-LEFT: 5%" align=justify>For accounting purposes, the Company
determined that these contracts are derivative financial instruments that should
be measured at fair value at each reporting date with all changes in fair value
included in the net earnings (loss) in the period in which they arise. During
the nine month period ended September 30, 2010, the Company recorded a
mark-to-market net loss of $156 (three month period ended September 30, 2010 &#150;
$5,015) of which a loss of $11,542 was realized (three month period ended
September 30, 2010 &#150; nil). The Company recorded an unrealized gain of $11,386 on
contracts outstanding as at September 30, 2010. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The fair value of contracts outstanding
at September 30, 2010 is as follows:</P>
<DIV align=right>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="95%" border=0>
    <TR vAlign=top>
      <TD align=left >&nbsp; </TD>
      <TD width="21%" align=center nowrap ><B>Strike Price</B> </TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD width="18%" align=right nowrap><B>Notional Quantity</B> </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=left width="18%">&nbsp; </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >&nbsp;</TD>
      <TD align=right width="18%" ><B>Fair Value</B> </TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      ><B>Option</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="21%"
    ><B>US$/lb</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="18%"><B>mt
        of copper</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="18%"><B>Due Date</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
      <TD width="18%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B>(Liability)/Asset US$</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >Call option </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="21%"
     bgColor=#e6efff>$ 3.95 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="18%"
    bgColor=#e6efff>2,250 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="18%"
    bgColor=#e6efff>Dec 31, 2010 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="18%"
    bgColor=#e6efff >&nbsp;(413</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left >Put option </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="21%"
    >$ 2.50 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="18%">2,250
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="18%">Dec
        31, 2010 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="18%"
    >&nbsp;7 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    </TR>
    <TR>
      <TD bgColor=#e6efff >&nbsp; </TD>
      <TD align=center width="21%"  bgColor=#e6efff>&nbsp;</TD>
      <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD width="18%" bgColor=#e6efff>&nbsp; </TD>
      <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="18%" bgColor=#e6efff>&nbsp; </TD>
      <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD width="18%" bgColor=#e6efff >&nbsp; </TD>
      <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left >Put option </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="21%"
    >$ 3.00 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="18%">15,600 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="18%">Jun
        30, 2011 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="18%"
    >&nbsp;3,265 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    </TR>
    <TR>
      <TD bgColor=#e6efff >&nbsp; </TD>
      <TD width="21%"  bgColor=#e6efff>&nbsp;</TD>
      <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD width="18%" bgColor=#e6efff>&nbsp; </TD>
      <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD align=left width="18%" bgColor=#e6efff>&nbsp; </TD>
      <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
      <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
      <TD width="18%" bgColor=#e6efff >&nbsp; </TD>
      <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD colspan="7" align=center > Total Fair Value of Contracts (in US) </TD>
      <TD align=left width="2%" >&nbsp;</TD>
      <TD align=left width="1%" >$</TD>
      <TD align=right width="18%" >&nbsp;2,859 </TD>
      <TD align=left width="2%" >&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD colspan="7" align=center bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"
    > Total Fair Value of Contracts (in CAD) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="18%"
    bgColor=#e6efff >&nbsp;2,941 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_16></A> <BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Interim Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2010 and
      2009 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      Expressed in thousands of Canadian dollars, except per ounce figures, unless
      stated otherwise) </TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The following table reconciles the
Company's derivative financial instruments measured at fair value from January
1, 2010 to September 30, 2010: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%" ><B>Fair value</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="17%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B>measurements</B> </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Balance at December 31, 2009 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="17%" bgColor=#e6efff >&nbsp;(18,935</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Purchases </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%" >7,330 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Settlements </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff >14,702 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Loss included in
      net income </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    >(156</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff><B>Balance at September 30, 2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="17%"
    bgColor=#e6efff ><B>&nbsp;2,941</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>13.</B> </TD>
    <TD>
      <P align=justify><B>ROYALTY OBLIGATIONS</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="16%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>September 30, 2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="16%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2009</B> </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff >Royalty Agreement &#150; Red Mile
      No. 2 LP </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="16%" bgColor=#e6efff>&nbsp;58,571 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="16%" bgColor=#e6efff>&nbsp;62,318 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Gibraltar Royalty LP </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="16%">&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="16%">6,511 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left bgColor=#e6efff
    ><B>Total royalty obligations</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="16%" bgColor=#e6efff><B>&nbsp;58,571</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="16%" bgColor=#e6efff>&nbsp;<B>68,829</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><I>(a)</I> </TD>
    <TD>
      <P align=justify><I>Gibraltar Royalty LP</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>During 2009, the Company entered into an agreement with
      an unrelated investment partnership, Gibraltar Royalty Limited Partnership
      ("GRLP") whereby Gibraltar sold to GRLP a production royalty for $6,511
      cash.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Annual royalties were payable by Gibraltar to GRLP at
      rates ranging from $0.003 per pound to $0.004 per pound of copper produced
      during the period from September 1, 2009 to December 31, 2030 (the
      "Royalty Period"). For the three and nine months ended September 30, 2010,
      Gibraltar paid $nil and $65 respectively to GRLP. These royalty payments
      were recognized as an expense during the period.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company classified the principal balance of royalty
      obligation as a current financial liability to be settled in a future
      period. The Company had a pre-emptive option to repurchase ("call") the
      royalty obligation by acquiring the GRLP partnership units during the
      period from March 1, 2010 to December 31, 2012 in consideration of a
      payment equal to the funds received by the Company plus a 20% premium
      payable in the Company's shares or cash. GRLP also had a right to sell
      ("put") its GRLP partnership units to the Company at fair value during the
      period from April 1, 2012 to December 31, 2012. However, this "put" right
      was subject to the Company's pre-emptive right to exercise the "call" in
      advance of any "put" being exercised and completed.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>On March 24, 2010, the Company exercised its "call"
      option through the issuance of 1,556,355 shares of the Company. The
      1,556,355 shares were recorded at $7,813 in the Company's accounts to
      settle the carrying value of royalty obligation in the amount of $6,511. A
      premium of $1,302 was recorded in the Company's statement of operations as
      a result of the exercise of the call option. Consequently, at September
      30, 2010, no amounts were owed to GRLP (December 31, 2009 &#150;
  $6,511).</P></TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name="page_17"></A> <BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Interim Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2010 and
      2009 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      Expressed in thousands of Canadian dollars, except per ounce figures, unless
      stated otherwise) </TD>
  </TR>
</TABLE>
<BR><TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
<B>14.</B> 	</TD>
	<TD>
<P align="justify"><B>TAX AND INTEREST RECOVERIES</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">During the three and nine months ended September 30, 2010, provisions for certain long term income tax liabilities and associated interest relating to historical tax estimates for the 2004 fiscal year for one of the
Company' s subsidiaries were reversed. Management believes the probability of this provision being realized would be unlikely. Consequently, the Company included the reversal of this tax provision in its statement of operations and recognized a
reversal of income tax in the amount of &#36;22,523 (three and nine months ended September 30, 2009 &ndash; &#36;nil) and interest in the amount of &#36;8,098 (three and nine months ended September 30, 2009 &ndash; &#36;nil).</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>15.</B> 	</TD>
	<TD>
<P align="justify"><B>COMMITMENTS</B></P>
	</TD>
</TR>
</TABLE>
<BR><TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
(a) 	</TD>
	<TD>
<P align="justify">Advances for equipment</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">As at September 30, 2010, the Joint Venture paid &#36;1,188 in advance deposits for equipment to be received in subsequent periods, all currently classified as long-term. The Joint Venture is further committed to equipment
purchases in relation to its expansion activities in the amount of &#36;9,694. The Company also has an equipment advance for equipment of &#36;538 in relation to its Prosperity project.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<I>(b)</I> 	</TD>
	<TD>
<P align="justify"><I>Treatment and refining agreement</I></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Joint Venture has an agreement with MRI Trading AG, a Swiss-based metal trading company, for the treatment and refining certain of copper concentrate from the Gibraltar Mine. Under the terms of the agreement, the Joint Venture
has secured long-term and fixed rates for processing copper concentrate until December 31, 2014. The Joint Venture has the right to price payable copper within the concentrate based on a quotational period, declared prior to, and covering each
ensuing calendar year.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<I>(c)</I> 	</TD>
	<TD>
<P align="justify"><I>Off-Take Agreement</I></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">As part of the JVFA, the Joint Venture entered into an off-take agreement with Cariboo for the treatment and refining of certain of copper concentrate from the Gibraltar Mine. Under the terms of the off-take agreement, the Joint
Venture has secured long-term and fixed rates for processing copper concentrate. The Joint Venture has the right to price payable copper within the concentrate based on a quotational period, declared prior to, and covering each ensuing calendar
year</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<I>(d)</I> 	</TD>
	<TD>
<P align="justify"><I>Franco-Nevada Gold Stream Transaction</I></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">In May 2010, the Company entered into a gold production stream transaction with Franco- Nevada Corporation ("Franco Nevada") under which Franco-Nevada purchased a gold stream covering 22% of the life-of-mine gold to be produced by
the Company from its proposed Prosperity Gold and Copper Mine. Commencing with the construction of the Prosperity Mine, the Company is to receive from Franco-Nevada funding in staged deposits totaling US&#36;350,000 (the "Deposit"). Upon delivery of
gold to Franco Nevada once the Prosperity Mine is in production, fixed price payments are to be made to the Company equal to the lesser of US&#36;400 per ounce and the spot price at the time of sale (subject to certain adjustments).</P>
	</TD>
</TR>
</TABLE>
<BR>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name=page_18></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Interim Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2010 and
      2009 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      Expressed in thousands of Canadian dollars, except per ounce figures, unless
      stated otherwise) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Under the terms of the agreements with Franco-Nevada, the
      unpaid amount of the Deposit will remain refundable until it is reduced to
      nil. The Deposit will be reduced by an amount equal to the difference
      between the spot price of gold and the US$400 per ounce fixed price,
      multiplied by the total ounces of gold delivered to Franco-Nevada. If at
      the end of the initial 40&#150;year term of the arrangement the Deposit has not
      been reduced to nil, the Company is to refund the outstanding portion of
      the Deposit to Franco-Nevada.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>16.</B> </TD>
    <TD>
      <P align=justify><B>SUPPLEMENTARY CASH FLOW DISCLOSURES</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>In addition to the non-cash operating, financing and
      investing activities primarily disclosed, the Company's non-cash
      operating, financing and investing activities were as
  follows:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD colspan="4" align=center style="BORDER-TOP: #000000 1px solid"><B>Three
      months ended</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD colspan="4" align=center style="BORDER-TOP: #000000 1px solid"><B>Nine
      months ended</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=right width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD colspan="4" align=center style="BORDER-BOTTOM: #000000 1px solid"><B>September
      30</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD colspan="4" align=center style="BORDER-BOTTOM: #000000 1px solid"><B>September
      30</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Shares issued for donation </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;425 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;&#150; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;928 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;&#150; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Assets under capital lease </TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;3,230 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;&#150; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;3,230 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;&#150; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Shares issued for redemption of royalty obligation
    </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;&#150; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;&#150; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;7,813 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;&#150; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left style="BORDER-BOTTOM: #000000 1px solid">Fair value of stock options transferred to share capital from
      contributed surplus on exercise of options </TD>
    <TD width="1%" align=left vAlign=bottom style="BORDER-BOTTOM: #000000 1px solid" >$</TD>
    <TD width="12%" align=right vAlign=bottom style="BORDER-BOTTOM: #000000 1px solid">&nbsp;34 </TD>
    <TD width="2%" align=left vAlign=bottom style="BORDER-BOTTOM: #000000 1px solid" >&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom style="BORDER-BOTTOM: #000000 1px solid" >$</TD>
    <TD width="12%" align=right vAlign=bottom style="BORDER-BOTTOM: #000000 1px solid">&nbsp;809 </TD>
    <TD width="2%" align=left vAlign=bottom style="BORDER-BOTTOM: #000000 1px solid" >&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom style="BORDER-BOTTOM: #000000 1px solid" >$</TD>
    <TD width="12%" align=right vAlign=bottom style="BORDER-BOTTOM: #000000 1px solid">&nbsp;2,097 </TD>
    <TD width="2%" align=left vAlign=bottom style="BORDER-BOTTOM: #000000 1px solid" >&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom style="BORDER-BOTTOM: #000000 1px solid" >$</TD>
    <TD width="12%" align=right vAlign=bottom style="BORDER-BOTTOM: #000000 1px solid">&nbsp;897 </TD>
    <TD width="2%" align=left vAlign=bottom style="BORDER-BOTTOM: #000000 1px solid"
>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>17.</B> </TD>
    <TD>
      <P align=justify><B>SUBSEQUENT EVENTS</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><I>(a)</I> </TD>
    <TD>
      <P align=justify><I>Capital Leases</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Subsequent to September 30, 2010 and commencing in
      October, the Joint Venture entered into a five year lease agreement with a
      third party, for the purchase of a new haul truck in the amount of
      approximately $4,309. The truck was commissioned in October 2010. The
      Company guaranteed this financing.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><I>(b)</I> </TD>
    <TD>
      <P align=justify><I>Equity Financings</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Subsequent to September 30, 2010, the Company obtained a
      receipt in respect of the final short- form base shelf prospectus from
      regulatory authorities. The shelf registration will, subject to securities
      regulatory requirements, allow the Company to make offerings of common
      shares, warrants, subscription receipts, debt securities, or any
      combination of such securities up to an aggregate offering price of
      $300,000 during the 25 month period that the final short form base shelf
      prospectus, including any amendments thereto, remains effective.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>During October, the Company filed a prospectus supplement
      to its final base shelf prospectus, with regulatory authorities. The
      Company also entered into an &#145;At the Market Issuance Agreement&#146;, with a
      third party, under which the Company may, at its discretion, from time to
      time sell up to a maximum of 18,600,000 of its common shares through
      "at-the-market" ("ATM") issuance. The third party will act as sales agent
      for any sales made under the ATM. The common shares will be sold at market
      prices prevailing at the time of a sale. The Company is not required to
      sell any of the reserved shares at any time during the term of the ATM,
      which extends until November 1, 2012, and there are no fees for having
      established the arrangement. The ATM Issuance Agreement does not prohibit
      the Company from conducting other financings.</P></TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name="page_19"></A> <BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Interim Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2010 and
      2009 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      Expressed in thousands of Canadian dollars, except per ounce figures, unless
      stated otherwise) </TD>
  </TR>
</TABLE>
<BR><TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
<I>(c)</I> 	</TD>
	<TD>
<P align="justify"><I>Gibraltar Tracking Preferred Shares</I></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">In October 2001, the Company and its subsidiary Gibraltar Mines Ltd. ("Gibraltar") completed the acquisition of the Harmony Gold Property (&quot; Harmony&quot; ) and related assets from Continental, for 12,483,916 series "A"
non-voting tracking preferred shares of Gibraltar and &#36;2,230 cash. The tracking preferred shares were recorded at &#36;26,642, being their then fair value, and are designed to track and capture the value of Harmony and will be redeemed for
common shares of Taseko upon a realization event, such as a sale of Harmony to a third party or commercial production at the Harmony or, at the option of Gibraltar, if a realization event has not occurred by 2011. Accordingly, the tracking preferred
shares have been classified within shareholders'  equity on the consolidated balance sheet.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The initial paid-up amount for the Gibraltar preferred shares is &#36;62,770, subject to reduction prior to redemption for certain stated events. The amount will be reduced to the extent that the actual net proceeds of disposition
of Harmony is less than &#36;62,770, or to the extent that the fair market value of Gibraltar's interest in a mine at Harmony is determined to be less than &#36;62,770. The paid-up amount (as adjusted) will be increased in the event Gibraltar
receives consideration by way of granting an option to a third party which forfeits such option and also, in the event of any reduction of the paid-up amount (as adjusted), such amount will be credited to the account should the proceeds of
disposition exceed the reduced paid-up amount (as adjusted) by an amount greater than the reduction. In no event will the paid-up amount (as adjusted) exceed &#36;62,770 nor be less than &#36;20,000. Net proceeds of disposition shall mean the fair
value of all consideration received by Gibraltar as a consequence of a sale of Harmony, net of Gibraltar's reasonable costs of disposition, costs incurred by Gibraltar after the effective date in connection with Harmony, and a reasonable reserve for
Gibraltar's taxes arising in consequence of the sale or other disposition of Harmony.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">On the occurrence of a realization event (as mentioned above), Gibraltar must redeem the Gibraltar preferred shares by distributing that number of Taseko common shares equal to the paid-up amount (as adjusted) divided by a deemed
price per Taseko common share, which will vary dependent on the timing of such realization event. 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,
currently at &#36;5.39 (as of December 31, 2009).</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">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 then 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.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">If an unrelated third party' s acquisition of Continental (the &quot; Acquisition&quot; ) announced September 17, 2010 proceeds, it is planned, subject to ongoing negotiations with Continental, that the redemption of the
tracking preferred shares for Taseko common shares be accelerated to occur just before closing of the Acquisition, which is currently targeted for late 2010. The Taseko common shares issued will be subject to a contractual hold period until October
16, 2011.</P>
	</TD>
</TR>
</TABLE>
<BR>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name=page_20></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Interim Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2010 and
      2009 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      Expressed in thousands of Canadian dollars, except per ounce figures, unless
      stated otherwise) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>18.</B> </TD>
    <TD>
      <P align=justify><B>RECONCILIATION WITH UNITED STATES GENERALLY ACCEPTED
      ACCOUNTING PRINCIPLES</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The interim consolidated financial statements of the
      Company as at September 30, 2010, and for the three and nine month periods
      ended September 30, 2010 and 2009 have been prepared in accordance with
      Canadian generally accepted accounting principles (&#147;Canadian GAAP&#148;) for
      interim financial reporting. Such principles differ in certain respects
      from those applicable in the United States (&#147;US GAAP&#148;). For information on
      material differences between Canadian GAAP and US GAAP, reference should
      be made to the discussion of the principal differences between the
      Company&#146;s financial results determined under Canadian GAAP and under US
      GAAP that is contained in the supplementary note to the Company&#146;s audited
      consolidated financial statements entitled &#147;Reconciliation with United
      States Generally Accepted Accounting Principles&#148; for the year ended
      December 31, 2009, the fifteen months ended December 31, 2008 and the year
      ended September 30, 2007.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The financial information presented in the interim
      consolidated financial statements and in this reconciliation to US GAAP is
      unaudited. However, in the opinion of management such information reflects
      all adjustments, consisting solely of normal recurring adjustments, which
      are necessary to a fair statement of the results for the interim periods
      presented.</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=right width="12%">3 months
    </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=right width="12%">3 months
    </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=right width="12%">9 months
    </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=right width="12%">9 months
    </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">ended </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">ended </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">ended </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">ended </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap>September </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap>September </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap>September </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap>September </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">30, </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">30, </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">30, </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">30, </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Consolidated
      Statements of Operations </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2010
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2009
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2010
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2009
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Earnings (loss) for the period under
      Canadian GAAP Adjustments under US GAAP </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;1,378 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;(2,349</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;123,267
</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;12,564 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Interest accretion on convertible debt (a)
    </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>(71</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>(898</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
  </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Amortization of deferred financing costs
      (a) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>(78</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>(312</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
  </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Foreign exchange gain on convertible debt
      (a) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>3,003 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>2,977 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Reduction of gain on convertible bond repurchase (a) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(3,513</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(3,707</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Adjustment to gain recognized on Joint Venture (b) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(10,089</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">282,057 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Adjustment to future income taxes related
      to gain (b) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>2,522 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>(70,514</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Additional depreciation and depletion (b)
    </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>(2,111</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>(3,792</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Tax effect of
      additional depreciation and depletion (b) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">528 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">948 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Earnings (loss) for the period under US GAAP </TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;(7,772</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;(3,008</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;331,966 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;10,624 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Other
      comprehensive income under Canadian and US GAAP &#150; no differences </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">2,491 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">2,018 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">976 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">6,874 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left>Total
      comprehensive income (loss) under US GAAP </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;(5,281</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;(990</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;332,942 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;17,498 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_21></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Interim Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2010 and
      2009 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      Expressed in thousands of Canadian dollars, except per ounce figures, unless
      stated otherwise) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>Earnings (loss) per
      Share </TD>
    <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom align=left
    width="12%">&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom align=left
    width="12%">&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom align=left
    width="12%">&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom align=left
    width="12%">&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Earnings (loss)per share for the period
      under US GAAP </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;(0.04</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;(0.02</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;1.79 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;0.06 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Diluted earnings
      per share for the period under US GAAP </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">&nbsp;(0.04</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">&nbsp;(0.02</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">&nbsp;1.72 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">&nbsp;0.06 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Weighted average number of common shares
      outstanding (in thousands) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" bgColor=#e6efff></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" bgColor=#e6efff></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" bgColor=#e6efff></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" bgColor=#e6efff></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Basic </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>184,975 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>182,197 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>185,748 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>170,027 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left
      bgColor=#e6efff>Diluted </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>184,975 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>182,197 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>193,192 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>176,301 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">As at </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">As at </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Consolidated Balance Sheets </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="17%" align=right nowrap>September 30, </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="17%" align=right nowrap>December 31, </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%">2010
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%">2009
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Total assets under Canadian
      GAAP </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>&nbsp;649,903
</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>&nbsp;535,095
</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Adjustments under US GAAP </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="17%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="17%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >Fair value adjustment to mineral property interests, plant
      and equipment, net of depreciation (b) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%" bgColor=#e6efff>278,265 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left
      >Total assets under US GAAP </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="17%">&nbsp;928,168 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="17%">&nbsp;535,095 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff >&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="17%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="17%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Total liabilities under Canadian GAAP </TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="17%">&nbsp;209,624 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="17%">&nbsp;238,402 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Adjustments under US GAAP </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="17%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="17%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; &nbsp;Additional future income tax liabilities
      recognized (b) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%">69,566 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left bgColor=#e6efff
    >Total liabilities under US GAAP </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="17%" bgColor=#e6efff>&nbsp;279,190 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="17%" bgColor=#e6efff>&nbsp;238,402 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="17%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="17%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Total shareholders' equity
      under Canadian GAAP </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>&nbsp;440,279
</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>&nbsp;296,693
</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Adjustments under US GAAP </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="17%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="17%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >&nbsp; &nbsp;
      &nbsp;Convertible debenture presented as debt (a) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%" bgColor=#e6efff>1,628 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Deferred financing costs presented as asset
      (a) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="17%">312 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >&nbsp; &nbsp;Current year income statement adjustments under
      US GAAP </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%" bgColor=#e6efff>208,699 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="17%" bgColor=#e6efff>(1,940</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="17%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="17%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left bgColor=#e6efff
    >Total shareholders' equity under US GAAP </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="17%" bgColor=#e6efff>&nbsp;648,978 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="17%" bgColor=#e6efff>&nbsp;296,693 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>There are no material differences
between Canadian GAAP and US GAAP relating to total operating, investing or
financing cash flows in the consolidated statements of cash flows. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_22></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Interim Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2010 and
      2009 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      Expressed in thousands of Canadian dollars, except per ounce figures, unless
      stated otherwise) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>The significant measurement differences listed in the US
      GAAP Reconciliations are as follows:</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>(a)</B> </TD>
    <TD colSpan=2>
      <P align=justify><B>Convertible debt</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>Pursuant to Canadian GAAP, the Company&#146;s convertible
      instruments require the bifurcation of their equity and debt components
      whereas under US GAAP, there would be no requirement to bifurcate the
      instrument. Therefore, under US GAAP, all of the value would be attributed
      to the debt component.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>Under Canadian GAAP, the accretion of the residual
      carrying value of the convertible instrument to the face value of the
      convertible instrument over the life of the instrument is charged to
      operations. Under US GAAP, no such accretion would be required.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>Under US GAAP, effective on January 1, 2009 (&#147;Effective
      Date&#148;), a convertible instrument&#146;s underlying unit (&#147;conversion feature&#148;)
      is not considered to be indexed to the Company&#146;s own shares if it is
      denominated in a currency other than the Company&#146;s functional currency. If
      the conversion feature is considered not to be indexed to the Company&#146;s
      shares, it must be separated from the host contract and accounted for as a
      derivative instrument under the new guidance.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>Since the US$30,000 Convertible Bond&#146;s (the &#147;Bonds&#148;)
      conversion share price was stated in US dollars and the Company&#146;s
      functional currency is the Canadian dollar, the Company separated and
      accounted for the conversion feature as a separate derivative instrument
      to comply with the new guidance.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>As a result, the Company has determined the value of the
      derivative liability related to the conversion feature and the revised
      value of the debt under US GAAP as at the Effective Date. The guidance
      requires retrospective application without restatement. Therefore, a
      cumulative adjustment has been recorded to opening deficit to reflect the
      impact of the adoption of this guidance on prior period earnings. The
      amounts recognized in the consolidated balance sheet under US GAAP are
      determined based on the amounts that would have been recognized if the
      guidance had been applied from August 29, 2006, the original issuance date
      of the Bonds (the &#147;Issuance Date&#148;). Accordingly, the following cumulative
      adjustments were recorded as at the Effective Date for US GAAP
      purposes:</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"> <P>&#8226;</P></TD>
    <TD>
      <P align=justify>the fair value of the conversion feature in the amount of
      $21 was bifurcated from the Bonds and reflected as a derivative
      liability;</P></TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"> <P>&#8226;</P></TD>
    <TD>
      <P align=justify>a net $1,649 decrease to the Bonds to reflect the reduced
      carrying value of the Bonds under US GAAP; and</P></TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"> <P>&#8226;</P></TD>
    <TD>
      <P align=justify>a cumulative adjustment to reduce opening deficit by
      $1,628.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>During the nine month period ended September 30, 2009,
      all of the Bonds were repurchased or redeemed. Under Canadian GAAP, the
      Company allocated the consideration paid on the extinguishment of the
      Bonds to the liability and equity elements of the security based on their
      relative fair values at the date of the transaction. A gain of $1,630
      which was attributed to the liability portion was recorded in the
      Company&#146;s statement of operations as a result of the convertible bond
      redemptions. A gain of $2,169 which was attributed to the equity portion
      was recorded in contributed surplus as a result of the convertible bond
      redemptions.</P></TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_23></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Interim Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2010 and
      2009 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      Expressed in thousands of Canadian dollars, except per ounce figures, unless
      stated otherwise) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>For US GAAP purposes, the Company reversed $3,513 and
      $3,707 of the total gain for the three and nine months ended September 30,
      2009 respectively on settlement of the Bonds and the derivative liability
      related to the conversion feature. In addition, the Company recognized a
      foreign exchange gain of $3,003 and $2,977 for the three and nine months
      ended September 30, 2009 respectively on the repurchase of the Bonds under
      US GAAP.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>Accretion expense of $156 and $1,260 was recorded under
      Canadian GAAP for the three and nine months ended September 30, 2009,
      respectively. An additional $71 and $898 in accretion expense was
      recognized for the three and nine months ended September 30, 2010
      respectively under US GAAP.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>Under US GAAP, deferred financing costs are separately
      disclosed as an asset, whereas under Canadian GAAP, effective October 1,
      2006, such costs are netted against the associated debt. Accordingly,
      amortization of deferred financing costs of $78 and $312 were recorded for
      the three and nine months ended September 30, 2009 respectively under US
      GAAP.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>(b)</B> </TD>
    <TD colSpan=2>
      <P align=justify><B>Gibraltar Joint Venture</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD align=left width="5%"></TD>
    <TD align=left colSpan=2>
      <P align=justify>During the 2010 period, the Company entered into a joint
      venture over the Gibraltar mine as disclosed in note 4 to the unaudited
      interim consolidated financial statements as at September 30, 2010 and for
      the three and nine month periods then ended. Under US GAAP, the
      disposition of the controlling financial interest in the group of assets
      that comprises the net assets contributed to the joint venture are
      accounted for as a disposition at fair value in accordance with ASU
      2010-02, <I>Consolidation (Topic 810): Accounting and Reporting for
      Decreases in Ownership of a Subsidiary&#151;a Scope Clarification. </I>Under
      this guidance, the Company&#146;s gain on disposition of its controlling
      financial interest is calculated as the difference between the fair value
      of the consideration received, including the fair value of the retained
      non-controlling 75% interest in the Gibraltar Joint Venture, and the
      carrying value of the net interest deemed to have been disposed on the
      Effective Date. Accordingly, under US GAAP the full gain of $376,076 has
      been recognized on contribution to the Joint Venture resulting in a net
      increase of $282,057 to the gain recognized under Canadian GAAP of
      $94,019. The Company has recorded additional income taxes of $70,514 under
      US GAAP relating to the additional gain recognized under US GAAP. The
      preliminary allocation of the fair value resulted in an adjustment to the
      Company&#146;s 75% interest in mineral property interests, plant and equipment
      of $282,057 as at the Effective Date. The fair values allocated to the
      underlying assets and liabilities of the Company&#146;s 75% interest in the
      Gibraltar Joint Venture as at September 30, 2010 are preliminary and
      subject to adjustment based on further information to be acquired. The
      analysis is expected to be completed in fiscal 2010.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>Summarized information in respect of the Company&#146;s 75%
      interest in the Joint Venture that has been proportionately consolidated
      by the Company is included in note 4 to the unaudited interim consolidated
      financial statements as at September 30, 2010 and for the three and nine
      month periods then ended, except that:</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(i) </TD>
    <TD>
      <P align=justify>the carrying value of the mineral property interest and
      total assets is increased by $278,265;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(ii) </TD>
    <TD>
      <P align=justify>additional depreciation and depletion under US GAAP
      relating to the Company&#146;s 75% interest in the Joint Venture&#146;s mineral
      property interests, plant and equipment for
the three and nine months ended September 30, 2010 is $2,111
      and $3,792 respectively offset by $528 and $948 respectively in income tax
  expense; and</P></TD></TR></TABLE>
<BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_24></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Interim Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2010 and
      2009 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      Expressed in thousands of Canadian dollars, except per ounce figures, unless
      stated otherwise) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top width="5%">(iii) </TD>
    <TD>
      <P align=justify>included in the Company&#146;s statement of operations under
      US GAAP for the nine months ended September 30, 2010 are the Company&#146;s 75%
      interest in the Joint Venture&#146;s gross profit, net income and total
      comprehensive income of $32,046, $14,702 and $14,866
  respectively.</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>There are no material differences
between Canadian GAAP and US GAAP in respect of the Company&#146;s 75% interest in
the Joint Venture&#146;s cash flows from operating activities, investing activities
and financing activities.</P>
<P align=justify><B>(c)&nbsp;&nbsp;&nbsp; Current assets</B></P>
<P style="MARGIN-LEFT: 5%" align=justify><I>Balance Sheets </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>For Canadian GAAP purposes, the Company
combines all accounts receivables on the consolidated balance sheets. The form
and content of financial statements as presented in Regulation S-X, Rule 5-02
requires segregation of current assets based on their nature and materiality.
The information with respect to receivables as required by US GAAP at September
30, 2010 and December 31, 2009 is as follows:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="16%">September 30, 2010 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD width="1%" align=left style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="16%" align=right style="BORDER-BOTTOM: #000000 1px solid">December 31, 2009 </TD>
  <TD width="2%" align=left style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="16%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD align=right width="1%">&nbsp;</TD>
    <TD align=right width="16%">&nbsp;</TD>
    <TD align=right width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Trade receivables </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="16%" bgColor=#e6efff>&nbsp;8,296 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="16%" bgColor=#e6efff>&nbsp;10,802 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>GST receivables </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="16%">4,055 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="16%">1,378 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Other receivables </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="16%"
    bgColor=#e6efff>1,134 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="16%" align=right bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">325 </TD>
  <TD width="2%" align=left bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Total accounts
      receivable </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="16%">&nbsp;13,485 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="16%">&nbsp;12,505 </TD>
  <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
  </TR></TABLE>
<P align=justify><I style="margin-left:5%">Statements of Cash Flows</I></P>
<P align=justify style="margin-left:5%">Cash flows from receivables are included in aggregate in the
consolidated statement of cash flows as a component of changes in operating
working capital. The detailed cash flows are as follows:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">Three months </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">Three months </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">Nine months </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">Nine months </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">ended </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">ended </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">ended </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">ended </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD width="12%" align=right nowrap>September 30, </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD width="12%" align=right nowrap>September 30, </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD width="12%" align=right nowrap>September 30, </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD width="12%" align=right nowrap>September 30, </TD>
  <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2010
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2009
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2010
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2009
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Decrease (increase) in trade receivables
</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;12,630 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;(362</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;2,506 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;(6,560</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Decrease (increase) in GST receivable </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(1,101</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">558 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(2,677</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">739 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Decrease (increase) in other receivables </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>(332</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>70 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>(808</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>2,751 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Total decrease
      (increase) in accounts receivable </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%">&nbsp;11,197 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%">&nbsp;266 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%">&nbsp;(979</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%">&nbsp;(3,070</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">) </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_25></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Interim Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2010 and
      2009 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      Expressed in thousands of Canadian dollars, except per ounce figures, unless
      stated otherwise) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>(d)</B> </TD>
    <TD>
      <P align=justify><B>Current Liabilities</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><I>Balance Sheets</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>For Canadian GAAP purposes, the Company combines accounts
      payable and accrued liabilities on the consolidated balance sheets. The
      form and content of financial statements as presented in Regulation S-X,
      Rule 5-02 requires segregation of payables and other current liabilities
      based on their nature and materiality. The information with respect to
      current payables and accrued current liabilities as required by US GAAP at
      September 30, 2010 and December 31, 2009 is as
follows:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="17%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">September 30, 2010 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="17%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">December 31, 2009 </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="17%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="17%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Trade payables </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="17%" bgColor=#e6efff>&nbsp;13,059 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="17%" bgColor=#e6efff>&nbsp;5,008 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Accrued liabilities </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">8,051 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">7,685 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Payroll liabilities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>2,162 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>2,034 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Other payables </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%">163
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%">94
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left bgColor=#e6efff
    >Total accounts payable and accrued liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="17%"
    bgColor=#e6efff>&nbsp;23,435 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="17%"
    bgColor=#e6efff>&nbsp;14,821 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><I>Statements of Cash Flows</I></P>
<P style="MARGIN-LEFT: 5%" align=justify>Cash flows from accounts payables and
accrued liabilities are included in aggregate in the consolidated statement of
cash flows as a component of changes in operating working capital. The detailed
cash flows are as follows:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=right width="12%">Three
      months </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=right width="12%">Three
      months </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=right width="12%">Nine
      months </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=right width="12%">Nine
      months </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">ended </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">ended </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">ended </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">ended </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap>September 30, </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap>September 30, </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap>September 30, </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap>September 30, </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2010
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2009
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2010
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2009
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Increase (decrease) in concentrate payable
    </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;(18,260</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
  </TD></TR>
  <TR vAlign=top>
    <TD align=left>Increase (decrease) in trade payables </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">8,537 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">1,881 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">8,051 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(6,933</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Increase (decrease) in accrued liabilities
    </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>(894</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>(1,013</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>366 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>(10,139</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
  </TD></TR>
  <TR vAlign=top>
    <TD align=left>Increase (decrease) in payroll liabilities </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">441 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">180 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">128 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(1,173</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Increase (decrease) in other payables </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>27 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>32 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>69 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>107 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Total increase
      (decrease) in accounts payable and accrued liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%">&nbsp;8,111 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%">&nbsp;1,080 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%">&nbsp;8,614 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%">&nbsp;(36,398</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>(e)</B> </TD>
    <TD colSpan=2>
      <P align=justify><B>Fair Value Hierarchy</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>Financial instruments measured at fair value are
      classified into one of three levels in the fair value hierarchy according
      to the relative reliability of the inputs used to estimate the fair
      values. The three levels of the fair value hierarchy are:</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"> <P>&#8226;</P></TD>
    <TD>
      <P align=justify>Level 1 &#150; Unadjusted quoted prices in active markets for
      identical assets or liabilities;</P></TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"> <P>&#8226;</P></TD>
    <TD>
      <P align=justify>Level 2 &#150; Inputs other than quoted prices that are
      observable for the asset or liability either directly or indirectly;
      and</P></TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"> <P>&#8226;</P></TD>
    <TD>
      <P align=justify>Level 3 &#150; Inputs that are not based on observable market
      data.</P></TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_26></A> <BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Interim Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2010 and
      2009 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      Expressed in thousands of Canadian dollars, except per ounce figures, unless
      stated otherwise) </TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The following table illustrates the
classification of the Company&#146;s financial instruments recorded at fair value
within the fair value hierarchy as at September 30, 2010: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 2px solid" align=left >&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD colspan="13"
    align=center style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"> <B>Financial assets at fair value</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Level 1</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Level 2</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Level 3</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>September 30,</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>December 31,</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Cash and equivalents </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>&nbsp;195,147 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>&nbsp;- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><B>$</B></TD>
    <TD vAlign=bottom align=right width="10%"
      bgColor=#e6efff><B>&nbsp;195,147</B> </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>&nbsp;35,082 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Restricted cash </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">2,603 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">2,603 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">3,153 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >Asset under derivative instrument </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>2,941 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>2,941 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Held for trading </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">197,750 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">2,941 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">200,691 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">38,235 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff >&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Marketable securities and investments </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">11,518 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">11,518 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">11,856 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >Reclamation deposits </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>23,179 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>23,179 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>29,421 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Available for sale financial assets </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%">34,697 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%">34,697 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%">41,277 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff >&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      >Total financial assets at fair value </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;267,144 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;2,941 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;270,085 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;79,512 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 2px solid" align=left >&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD colspan="13"
    align=center style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"> <B>Financial</B> <B>liabilities at fair value</B>
    </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>Level 1</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>Level 2</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>Level 3</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>September 30,</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>December 31,</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left bgColor=#e6efff
    >Liability under derivative financial instruments </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>&nbsp;18,935 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>(f)</B> </TD>
    <TD>
      <P align=justify><B>Site Closure and Reclamation Obligation</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The estimated amount of the reclamation costs, adjusted
      for estimated inflation at 2.5% per year, in 2032 dollars, as at September
      30, 2010 was $90,000 (2009 - $90,000) and is expected to be spent over a
      period of approximately three years beginning in 2032. The credit-adjusted
      risk free rates at which the estimated future cash flows have been
      discounted are 7.1% to 10%.</P></TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_27></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Interim Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2010 and
      2009 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      Expressed in thousands of Canadian dollars, except per ounce figures, unless
      stated otherwise) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>(g)</B> </TD>
    <TD>
      <P align=justify><B>Earnings per Share</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The following table sets forth the computation of diluted
      earnings per share:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD  >&nbsp;</TD>
    <TD align=left style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left style="BORDER-BOTTOM: #000000 1px solid" >&nbsp;</TD>
    <TD colspan="4" align=center style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=center style="BORDER-BOTTOM: #000000 1px solid" >&nbsp;</TD>
    <TD align=center style="BORDER-BOTTOM: #000000 1px solid" >&nbsp;</TD>
    <TD colspan="4" align=center style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=right style="BORDER-BOTTOM: #000000 1px solid" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD colspan="4" align=center><B>Three Months Ended</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD colspan="4" align=center><B>Nine Months Ended</B> </TD>
    <TD align=right width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&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>
    <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=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Earnings (loss) available to common shareholders    </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;(7,772</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;(3,008</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;331,966 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;10,624 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Basic weighted-average number of shares outstanding
      (in 000&#146;s) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>184,975 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>182,197 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>185,748 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>170,027 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Effect of dilutive securities (in 000&#146;s): </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;Stock options </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>4,780 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>3,610 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp;Tracking preferred shares </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">2,664 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">2,664 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Diluted weighted-average number of shares outstanding
      (in 000&#146;s) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>184,975 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>182,197 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>193,192 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>176,301 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left><B>Earnings(loss) per share</B> </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Basic </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;(0.04</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;(0.02</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;1.79 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;0.06 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>&nbsp; &nbsp;Diluted </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;(0.04</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;(0.02</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;1.72 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;0.06 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>(h)</B> </TD>
    <TD>
      <P align=justify><B>Recently Adopted US GAAP Accounting
      Pronouncements</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>(i)</B> </TD>
    <TD>
      <P align=justify><B>Measuring Fair Value of Liabilities</B></P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>In August 2009, FASB issued a new standard related to
      measuring fair values of liabilities, which is effective prospectively in
      the Company&#146;s 2010 fiscal year. The new standard requires that the fair
      value of liabilities be measured under the assumption that the liability
      is transferred to a market participant. It provides further clarification
      that the fair value measurement of a liability should assume transfer to a
      market participant as of the measurement date without settlement with the
      counterparty. Therefore, the fair value of the liability shall reflect
      non-performance risk, including but not limited to a reporting entity&#146;s
      own credit risk.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The adoption of the new standard did not have a material
      effect on the Company&#146;s consolidated results of operations, cash flows or
      financial position.</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>(ii)</B> </TD>
    <TD>
      <P align=justify><B>Disclosures by Public Entities (Enterprises) about
      Transfers of Financial Assets and Interests in Variable Interest
      Entities</B></P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>In December 2008, FASB issued guidance for the purpose of
      improving the transparency of transfers of financial assets and an
      enterprise&#146;s involvement with variable
interest entities (&#147;VIEs&#148;), including
qualifying special-purpose entities (&#147;QSPEs&#148;). The impact on the Company&#146;s
financial reporting requirements is limited to the new VIE disclosures.</P></TD></TR></TABLE>
<BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_28></A> <BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Interim Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>For the three and nine months ended September 30, 2010 and
      2009 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Unaudited &#150;
      Expressed in thousands of Canadian dollars, except per ounce figures, unless
      stated otherwise) </TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>These statements eliminate the concept
of a qualifying special-purpose entity, establish new criteria for the
consolidation of VIEs, and create more stringent conditions for the treatment of
transfers of financial assets. The statements are significant for entities that
have interests in potential VIEs or engage in transfers of financial assets.
</P>
<P style="MARGIN-LEFT: 10%" align=justify>Additional disclosure requirements are
intended to assist financial statement users in understanding the significant
judgments and assumptions made in determining whether a company must consolidate
and/or disclose information about its involvement with a VIE.</P>
<P style="MARGIN-LEFT: 10%" align=justify>The statements are effective for the
Company&#146;s 2010 fiscal year, and for subsequent interim and annual reporting
periods. The adoption of the new standard did not have a material effect on the
Company&#146;s consolidated results of operations, cash flows or financial position
since the Company has determined that it is not the primary beneficiary of
certain variable interest entities in which the Company holds a variable
interest. Therefore, it is not required to consolidate any of such entities.
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>(i)</B> </TD>
    <TD>
      <P align=justify><B>Future US GAAP Accounting Policy
  Changes</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>The Company has not identified any
changes in US GAAP that may have a significant impact on the Company&#146;s future
financial statements. With the transition to reporting under IFRS in 2011, new
US GAAP pronouncements effective from 2011 onwards will not impact the remaining
periods of 2010 for which we will prepare US GAAP based financial statements.
</P>
<HR align=center width="100%" color=black noShade SIZE=5>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>exhibit99-2.htm
<DESCRIPTION>MD&A FOR THE PERIOD ENDED SEPTEMBER 30, 2010
<TEXT>



<HTML>
<HEAD>
   <TITLE>Taseko Mines Limited - Exhibit 99.2 - Filed by newsfilecorp.com</TITLE>
   <META name="HandheldFriendly" content="true">
</HEAD>

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

<HR noshade align="center" width=100% size=3 color="black">
<A name=page_1></A>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B>
  </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD></TR></TABLE>
<P align=center><B>T A B L E&nbsp;&nbsp; O F&nbsp;&nbsp; C O N T E N T S
</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee ><A
      href="#page_2">1.1 </A></TD>
    <TD colspan="2" align=left  bgColor=#eeeeee ><A
      href="#page_2">Date </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_2">2 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee ><A
      href="#page_3">1.2 </A></TD>
    <TD colspan="2" align=left  bgColor=#eeeeee ><A
      href="#page_3">Overview </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_3">3 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee >&nbsp; </TD>
    <TD align=left width="7%"  bgColor=#eeeeee ><A
      href="#page_4">1.2.1</A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_4">Gibraltar Mine </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_4">4 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee >&nbsp; </TD>
    <TD align=left width="7%"  bgColor=#eeeeee ><A
      href="#page_9">1.2.2</A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_9">Prosperity Project </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_9">9 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee >&nbsp; </TD>
    <TD align=left width="7%"  bgColor=#eeeeee ><A
      href="#page_10">1.2.3</A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_10">Harmony Project </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_10">10 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee >&nbsp; </TD>
    <TD align=left width="7%"  bgColor=#eeeeee ><A
      href="#page_10">1.2.4</A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_10">Aley Project </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_10">10 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee >&nbsp; </TD>
    <TD align=left width="7%"  bgColor=#eeeeee ><A
      href="#page_10">1.2.5</A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_10">Market Trends </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_10">10 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee ><A
      href="#page_10">1.3 </A></TD>
    <TD colspan="2" align=left  bgColor=#eeeeee ><A
      href="#page_10">Selected Annual Information </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_10">10 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee ><A
      href="#page_11">1.4 </A></TD>
    <TD colspan="2" align=left  bgColor=#eeeeee ><A
      href="#page_11">Summary of Quarterly Results </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_11">11 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee ><A
      href="#page_12">1.5 </A></TD>
    <TD colspan="2" align=left  bgColor=#eeeeee ><A
      href="#page_12">Results of Operations </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_12">12 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee ><A
      href="#page_15">1.6 </A></TD>
    <TD colspan="2" align=left  bgColor=#eeeeee ><A
      href="#page_15">Liquidity </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_15">15 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee ><A
      href="#page_16">1.7 </A></TD>
    <TD colspan="2" align=left  bgColor=#eeeeee ><A
      href="#page_16">Capital Resources </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_16">16 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee ><A
      href="#page_17">1.8 </A></TD>
    <TD colspan="2" align=left  bgColor=#eeeeee ><A
      href="#page_17">Off-Balance Sheet Arrangements </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_17">17 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee ><A
      href="#page_18">1.9 </A></TD>
    <TD colspan="2" align=left  bgColor=#eeeeee ><A
      href="#page_18">Transactions with Related Parties </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_18">18 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee ><A
      href="#page_18">1.10 </A></TD>
    <TD colspan="2" align=left  bgColor=#eeeeee ><A
      href="#page_18">Fourth Quarter </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_18">18 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee ><A
      href="#page_18">1.11 </A></TD>
    <TD colspan="2" align=left  bgColor=#eeeeee ><A
      href="#page_18">Proposed Transactions </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_18">18 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee ><A
      href="#page_19">1.12 </A></TD>
    <TD colspan="2" align=left  bgColor=#eeeeee ><A
      href="#page_19">Critical Accounting Estimates </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_19">19 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee ><A
      href="#page_19">1.13 </A></TD>
    <TD colspan="2" align=left  bgColor=#eeeeee ><A
      href="#page_19">Change in Accounting Policies including Initial Adoption
      </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_19">19 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee ><A
      href="#page_24">1.14 </A></TD>
    <TD colspan="2" align=left  bgColor=#eeeeee ><A
      href="#page_24">Financial Instruments and Other Instruments </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_24">24 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee ><A
      href="#page_26">1.15 </A></TD>
    <TD colspan="2" align=left  bgColor=#eeeeee ><A
      href="#page_26">Other MD&amp;A Requirements </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_26">26 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee >&nbsp; </TD>
    <TD align=left width="7%"  bgColor=#eeeeee ><A
      href="#page_26">1.15.1</A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_26">Additional Disclosure for Venture Issuers without Significant
      Revenue </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_26">26 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee >&nbsp; </TD>
    <TD align=left width="7%"  bgColor=#eeeeee ><A
      href="#page_27">1.15.2</A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_27">Disclosure of Outstanding Share Data </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_27">27 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee >&nbsp; </TD>
    <TD align=left width="7%"  bgColor=#eeeeee ><A
      href="#page_28">1.15.3</A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_28">Internal Controls over Financial Reporting Procedures </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_28">28 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee >&nbsp; </TD>
    <TD align=left width="7%"  bgColor=#eeeeee ><A
      href="#page_28">1.15.4</A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_28">Disclosure Controls and Procedures </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_28">28 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee >&nbsp; </TD>
    <TD align=left width="7%"  bgColor=#eeeeee ><A
      href="#page_28">1.15.5</A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_28">Non GAAP Measures </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_28">28 </A></TD>
  </TR>
  <TR>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left width="7%" >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right width="5%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" align=left bgColor=#eeeeee >&nbsp; </TD>
    <TD align=left width="7%"  bgColor=#eeeeee ><A
      href="#page_28">1.15.3</A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_28">Risk Factors </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_28">28 </A></TD>
  </TR>
</TABLE>
<P align=center>1 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_2></A>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify><B><FONT
color=#0000ff>1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Date </FONT></B></P>
<P align=justify>This Management Discussion and Analysis ("MD&amp;A") should be
read in conjunction with the unaudited interim consolidated financial statements
of Taseko Mines Limited ("Taseko", or the "Company") for the three and nine
months ended September 30, 2010 and the audited consolidated financial
statements for the year ended December 31, 2009, prepared in accordance with
Canadian generally accepted accounting principles, and publicly available on
SEDAR at <U><FONT color=#0000ff>www.sedar.com</FONT></U>.</P>
<P align=justify>This MD&amp;A is prepared as of November 9, 2010. All dollar
figures stated herein are expressed in Canadian dollars, unless otherwise
specified. </P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD align=left>
      <P align=justify>This discussion includes certain statements that may be
      deemed "forward-looking statements". All statements in this discussion,
      other than statements of historical facts, that address future production,
      reserve potential, exploration drilling, exploitation activities and
      events or developments that the Company expects are forward-looking
      statements. Although the Company believes the expectations expressed in
      such forward-looking statements are based on reasonable assumptions, such
      statements are not guarantees of future performance and actual results or
      developments may differ materially from those in the forward-looking
      statements. Factors that could cause actual results to differ materially
      from those in forward-looking statements include market prices,
      exploitation and exploration successes, continued availability of capital
      and financing and general economic, market or business conditions.
      Investors are cautioned that any such statements are not guarantees of
      future performance and actual results or developments may differ
      materially from those projected in the forward-looking statements.
  </P></TD></TR></TABLE></DIV><BR>
<DIV>
<TABLE
style="BORDER-COLOR: red; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=3 width="100%" border=0>

  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #ff0000 1px solid; BORDER-TOP: #ff0000 1px solid; BORDER-LEFT: #ff0000 1px solid"
    align=center><FONT color=#ff0000><B>Cautionary Note to Investors
      Concerning Estimates of Measured and Indicated Resources </B></FONT></TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #ff0000 1px solid; BORDER-LEFT: #ff0000 1px solid; BORDER-BOTTOM: #ff0000 1px solid"
    align=left>
      <P align=justify>This discussion uses the terms 'measured resources' and
      'indicated resources'. The Company advises investors that while those
      terms are recognized and required by Canadian regulations, the U.S.
      Securities and Exchange Commission does not recognize them. <B>Investors
      are cautioned not to assume that any </B><B>part or all of mineral
      deposits in these categories will ever be converted into reserves.
    </B></P></TD></TR></TABLE></DIV><BR>
<DIV>
<TABLE
style="BORDER-COLOR: red; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=3 width="100%" border=0>

  <TR vAlign=bottom>
    <TD
    style="BORDER-RIGHT: #ff0000 1px solid; BORDER-TOP: #ff0000 1px solid; BORDER-LEFT: #ff0000 1px solid"
    align=center><FONT color=#ff0000><B>Cautionary Note to Investors
      Concerning Estimates of Inferred Resources </B></FONT></TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #ff0000 1px solid; BORDER-LEFT: #ff0000 1px solid; BORDER-BOTTOM: #ff0000 1px solid"
    align=left>This discussion uses the term 'inferred resources'. The Company
      advises investors that while this term is recognized and required by
      Canadian regulations, the U.S. Securities and Exchange Commission does not
      recognize it. 'Inferred resources' have a great amount of uncertainty as
      to their existence, and as to their economic and legal feasibility. It
      cannot be assumed that all or any part of a mineral resource will ever be
      upgraded to a higher category. Under Canadian rules, estimates of Inferred
      Mineral Resources may not form the basis of economic studies, except in
      rare cases. <B>Investors are cautioned not to assume that </B><B>any part
      or all of an inferred resource exists, or is economically or legally
      mineable. </B></TD></TR></TABLE></DIV>
<P align=center>2 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_3></A>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<BR>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=3 width="100%" border=0>

  <TR vAlign=bottom>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=center>Cash Cost of Production </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left>
      <P align=justify>This management discussion uses the term cash cost of
      production which is a non-GAAP measure intended to provide additional
      information to investors and should not be considered in isolation or as a
      substitute for measures of performance prepared in accordance with GAAP
      (see 1.15.5). Cash cost of production is a common performance measure in
      the copper industry and includes direct cost of operations and related
      costs through to refined metal, excluding amortization.
</P></TD></TR></TABLE></DIV><BR>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD align=left>
      <P align=justify><B>Taseko&#146;s 75% (effective March 31, 2010) owned
      Gibraltar Mine is located north of the City of </B><B>Williams Lake in
      south-central British Columbia. Sales and production volumes from the
      Gibraltar </B><B>Mine (the &#147;Gibraltar Joint Venture&#148; or the &#147;Joint
      Venture&#148;) reflected in this MD&amp;A are on a </B><B>100% basis unless
      otherwise indicated. </B></P></TD></TR></TABLE></DIV>
<P align=justify><B><FONT
color=#0000ff>1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Overview
</FONT></B></P>
<P align=justify>Taseko is a mining and mine development company with one
operating mine, two advanced stage projects and one exploration property, all
located in British Columbia, Canada. These are the Gibraltar copper-molybdenum
mine, the Prosperity gold-copper project, the Harmony gold project and the Aley
niobium property. </P>
<P align=justify>During the nine months ended September 30, 2010, Taseko has
continued to focus on completing capital upgrade projects in order to increase
throughput and metal recovery at its Gibraltar mine and on advancing
engineering, permitting and financing for the Prosperity Project.</P>
<P align=justify>Taseko was advised on November 2, 2010 that the Canadian
Federal Government would not proceed with permitting on the Prosperity project
as it is currently proposed. The Company is currently working with both the
Federal and Provincial Governments to define the issues involved so that
Prosperity can move forward while meeting the permitting criteria that the
Federal Government deem appropriate. </P>
<P align=justify>Taseko had an operating profit of $17.5 million and earnings
before tax and other items of $12.6 million for the three months ended September
30, 2010, compared to an operating profit of $9.4 million and earnings before
tax and other items of $4.7 million for the three months ended September 30,
2009. Other items included an adjustment to the gain on the sale of the 25%
interest in the Gibraltar Joint Venture in the amount of $3.4 million and an
unrealized (non-cash) marked-to-market loss attributable to derivative
instruments of $5 million. </P>
<P align=justify>Net earnings were $1.4 million or $0.01 per share for the three
months ended September 30, 2010 as compared to a net loss of $2.3 million or
($0.01) per share for the three months ended September 30, 2009. Net earnings
for the current quarter is lower than expected due to approximately 16 million
lbs of copper concentrate remaining in inventory (100% basis) as at September
30, 2010 due to a shipment of the concentrate that slipped into early October.
The Company received pre-payment for the shipment in the amount of approximately
$16 million prior to September 30, 2010 which was classified as deferred revenue
and represented approximately 90% of the value of the shipment. </P>
<P align=center>3 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_4></A>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify>During the three months ended September 30, 2010, the Gibraltar
Mine produced 25.7 million pounds of copper and 252,000 pounds of molybdenum,
and for the nine months ended September 30, 2010, Gibraltar produced 68.9
million pounds of copper and 665,000 pounds of molybdenum. </P>
<P align=justify>The upgraded Gibraltar concentrate filter/dryer circuits and
tailings handling projects were completed during the quarter and the Semi
Autogenous Grinding (SAG) mill direct feed system is planned to be operating in
the first quarter of 2011. </P>
<P align=justify>The Gibraltar Mine has continued to invest in the mining fleet
during the quarter, purchasing four new 320 tonne capacity haulage trucks all of
which have been delivered to the mine. Two of the trucks were erected and put
into operation in October and the second two are planned to be operational in
December. Also, the construction of a new Bucyrus 495 cable shovel was completed
and the machine was commissioned in October. </P>
<P align=justify>In other developments, in August, 2010 the Company purchased a
series of put options for 15,600 metric tonnes of copper commencing in January
and ending in June, 2011 at a strike price of US$3.00/lb. The strike price sets
the minimum price that the Company will realize for its share of the copper
production. These put options are only exercised if the spot price declines
below the put strike price. The Company participates in the full upside of price
increases and is protected from price decreases.</P>
<P align=justify>Mr. David Rouleau joined Taseko as Vice President, Operations,
during July of 2010. A mining engineer with over 20 years experience in mine
operations and development, Mr. Rouleau most recently worked with Canadian
Natural Resources Limited in the construction and successful start up of the
Horizon Oil Sands project in Fort McMurray, Alberta.</P>
<P align=justify><B>1.2.1&nbsp;&nbsp; &nbsp;Gibraltar Mine </B></P>
<P align=justify>Taseko&#146;s 75% (effective March 31, 2010) owned Gibraltar Mine is
located north of the City of Williams Lake in south-central British Columbia.
The following sales and production volumes reflected are on a 100% basis for the
Gibraltar Mine.</P>
<P align=justify><B><I>Three-Month Sales </I></B></P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>Copper in concentrate sales volume in the three months ended September 30,
  2010 was 11.1 million pounds compared to 11.8 million pounds of copper in
  concentrate sold during the three months ended September 30, 2009. </P>
  <LI>
  <P>There were 0.4 million pounds of copper cathode sold in the three months
  ended September 30, 2010 compared to 0.9 million pounds sold in the three
  months ended September 30, 2009. </P>
  <LI>
  <P>The average price realized for sales of copper during the period was
  US$3.76 per pound, compared to US$2.65 per pound realized in the three months
  ended September 30, 2009. The realized price included adjustments on final
  invoices related to prior quarters. </P></LI></UL>
<P align=center>4 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_5></A>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>Molybdenum in concentrate sales volume in the three months ended September
  30, 2010 was 261,000 pounds compared to 149,000 pounds sold in the three
  months ended September 30, 2009. </P>
  <LI>
  <P>The average price realized for sales of molybdenum for the three months
  ended September 30, 2010 was US$15.89 per pound, compared to US$12.37 per
  pound realized in the three months ended September 30, 2009. </P></LI></UL>
<P align=justify><B><I>Nine Month Sales </I></B></P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>Copper in concentrate sales volume increased to 52.1 million pounds in the
  nine months ended September 30, 2010 from the 49.8 million pounds of copper in
  concentrate sold during the nine months ended September 30, 2009. </P>
  <LI>
  <P>Copper cathode sales decreased in the nine months ended September 30, 2010
  to 0.6 million pounds compared from 1.6 million pounds in the nine months
  ended September 30, 2009. </P>
  <LI>
  <P>The average price realized for sales of copper in the nine months ended
  September 30, 2010 was US$3.37 per pound, compared to US$2.06 per pound
  realized in the nine months ended September 30, 2009. </P>
  <LI>
  <P>Molybdenum in concentrate sales volume increased to 664,000 in the nine
  months ended September 30, 2010 from 595,000 pounds sold in the nine months
  ended September 30, 2009. </P>
  <LI>
  <P>The average price realized for sales of molybdenum for the nine months
  ended September 30, 2010 was US$16.29 per pound, compared to US$11.69 per
  pound realized in the nine months ended September 30, 2009. </P></LI></UL>
<P align=justify><B><I>Quarter-end Inventory</I></B></P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>Copper concentrate inventory at September 30, 2010 was 16.3 million pounds
  compared to 3.1 million pounds at June 30, 2010. </P>
  <LI>
  <P>Copper cathode inventory at September 30, 2010 was 0.44 million pounds
  compared to 0.59 million pounds at June 30, 2010. </P>
  <LI>
  <P>Molybdenum in concentrate inventory at September 30, 2010 was 18,200 pounds
  compared to 27,000 pounds at June 30, 2010. </P></LI></UL>
<P align=center>5 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_6></A>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify><B><I>Gibraltar Mine Production and Cost Performance
</I></B></P>
<P align=justify>The following table is a summary of operating statistics (100%)
for the quarter and year to date: </P>
<DIV>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 9pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>
    <TR vAlign=top bgcolor="#EEEEEE">
      <TD align=left><BR>
        <BR><BR></TD>
      <TD width="17%" align=center><B>Three months</B> <BR>
        <B>ended</B>
      <BR><B>September 30,</B> <BR><B>2010</B> </TD>
      <TD width="17%" align=center><B>Nine months</B> <BR>
        <B>ended</B>
      <BR><B>September 30,</B> <BR><B>2010</B> </TD>
      <TD width="17%" align=center><B>Three months</B> <BR>
        <B>ended</B>
      <BR><B>September 30,</B> <BR><B>2009</B> </TD>
      <TD width="17%" align=center><B>Nine months</B> <BR>
        <B>ended</B>
      <BR><B>September 30,</B> <BR><B>2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Total tons mined (millions)<SUP>1</SUP> </TD>
    <TD vAlign=top align=center width="17%">14.0 </TD>
    <TD vAlign=top align=center width="17%">36.7 </TD>
    <TD vAlign=top align=center width="17%">8.7 </TD>
    <TD vAlign=top align=center width="17%">23.5 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Tons of ore milled (millions) </TD>
    <TD vAlign=top align=center width="17%">3.9 </TD>
    <TD vAlign=top align=center width="17%">11.1 </TD>
    <TD vAlign=top align=center width="17%">3.3 </TD>
    <TD vAlign=top align=center width="17%">9.8 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Stripping ratio </TD>
    <TD vAlign=top align=center width="17%">2.4 </TD>
    <TD vAlign=top align=center width="17%">2.3 </TD>
    <TD vAlign=top align=center width="17%">2.8 </TD>
    <TD vAlign=top align=center width="17%">1.6 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Copper grade (%) </TD>
    <TD vAlign=top align=center width="17%">0.358 </TD>
    <TD vAlign=top align=center width="17%">0.340 </TD>
    <TD vAlign=top align=center width="17%">0.26 </TD>
    <TD vAlign=top align=center width="17%">0.32 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Molybdenum grade (%Mo) </TD>
    <TD vAlign=top align=center width="17%">0.013 </TD>
    <TD vAlign=top align=center width="17%">0.013 </TD>
    <TD vAlign=top align=center width="17%">0.011 </TD>
    <TD vAlign=top align=center width="17%">0.011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Copper recovery (%) </TD>
    <TD vAlign=top align=center width="17%">89.4 </TD>
    <TD vAlign=top align=center width="17%">89.3 </TD>
    <TD vAlign=top align=center width="17%">79.1 </TD>
    <TD vAlign=top align=center width="17%">81.7 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Molybdenum recovery (%) </TD>
    <TD vAlign=top align=center width="17%">24.7 </TD>
    <TD vAlign=top align=center width="17%">23.9 </TD>
    <TD vAlign=top align=center width="17%">15.5 </TD>
    <TD vAlign=top align=center width="17%">25.5 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Copper production (millions lb) <SUP>2</SUP> </TD>
    <TD vAlign=top align=center width="17%">25.7 </TD>
    <TD vAlign=top align=center width="17%">68.9 </TD>
    <TD vAlign=top align=center width="17%">14.0 </TD>
    <TD vAlign=top align=center width="17%">53.0 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Molybdenum production (thousands lb) </TD>
    <TD vAlign=top align=center width="17%">252 </TD>
    <TD vAlign=top align=center width="17%">665 </TD>
    <TD vAlign=top align=center width="17%">112 </TD>
    <TD vAlign=top align=center width="17%">516 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Foreign exchange ($C/$US) </TD>
    <TD vAlign=top align=center width="17%">1.04 </TD>
    <TD vAlign=top align=center width="17%">1.04 </TD>
    <TD vAlign=top align=center width="17%">1.10 </TD>
    <TD vAlign=top align=center width="17%">1.17 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Copper production costs, net of by-product credits , per lb
      of copper 3</TD>
    <TD vAlign=top align=center width="17%">US$1.19 </TD>
    <TD vAlign=top align=center width="17%">US$1.33 </TD>
    <TD vAlign=top align=center width="17%">US$1.56 </TD>
    <TD vAlign=top align=center width="17%">US$1.08 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Off property costs for transport, treatment (smelting &amp;
      refining) &amp; sales per lb of copper </TD>
    <TD vAlign=center align=center width="17%">US$0.21 </TD>
    <TD vAlign=center align=center width="17%">US$0.31 </TD>
    <TD vAlign=center align=center width="17%">US$0.30 </TD>
    <TD vAlign=center align=center width="17%">US$0.30 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Total cash costs of production per lb of copper<SUP>4</SUP>
    </TD>
    <TD vAlign=center align=center width="17%">US$1.40 </TD>
    <TD vAlign=center align=center width="17%">US$1.64 </TD>
    <TD vAlign=center align=center width="17%">US$1.86 </TD>
    <TD vAlign=center align=center width="17%">US$1.38
</TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><SUP>1</SUP> </TD>
    <TD>
      <P align=justify>Total tons mined includes sulphide ore, low grade
      stockpile material, overburden, and waste rock which were moved from
      within pit limit to outside pit limit during the period.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%"><SUP>2</SUP> </TD>
    <TD>
      <P align=justify>Copper production includes concentrate and
  cathode.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%"><SUP>3</SUP> </TD>
    <TD>
      <P align=justify>By-product credit is calculated on a three month total
      and averaged over the quarter.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%"><SUP>4</SUP> </TD>
    <TD>
      <P align=justify>See Section 1.15.5.</P></TD></TR></TABLE>
<P align=justify>Total tons mined in 2010 were higher than the corresponding
periods in 2009 in order to meet the increased processing capacity of the mill
and to operate closer to the deposit average strip ratio based on continued
strength in the price of copper. The Gibraltar concentrator continued to perform
very well on copper recovery while throughput is steadily increasing toward the
targeted 55,000 tons per day level. Copper and molybdenum production for the
period was higher than the previous quarters as a result of increased mill
throughput, head grade and recovery.</P>
<P align=justify>Total cash costs of production for the first nine months of
2010 are higher than the same period 2009 as a result of increased stripping
ratio, strengthening Canadian dollar against the US dollar, higher prices for
fuel, reagents and grinding media, and increased off property transportation
costs in the first and second quarters. Site costs were lower in the current
quarter as a result of increased copper production and off-site costs have
decreased in the current quarter due to low sales volumes. </P>
<P align=center>6 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_7></A>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify><B><I><U>Gibraltar Joint Venture</U></I></B></P>
<P align=justify>The Gibraltar Mine became an unincorporated joint venture
between Taseko Mines Limited and Cariboo Copper Corp. (&#147;Cariboo&#148;) (a Japanese
consortium) on March 31, 2010. The Company and Cariboo hold 75% and 25%
beneficial interests in the Joint Venture, respectively. Under the Joint Venture
Agreement, the Company contributed certain assets and liabilities pertaining to
the Gibraltar Mine with a deemed fair value of $747 million to the Joint Venture
at the effective date, and Cariboo paid the Company US$187 million to obtain a
25% interest in the Joint Venture. The Company continues to be the operator of
the Gibraltar Mine. </P>
<P align=justify>The assets and liabilities contributed by the Company into the
Joint Venture were primarily mineral property interests, plant and equipment,
inventory, prepaid expenses, reclamation deposits, equipment loan, and capital
lease obligations and the site closure and reclamation obligation. </P>
<P align=justify>The Company&#146;s 75% interest in the assets and liabilities of the
Joint Venture as at September 30, 2010, and March 31, 2010, are as follows:</P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="90%" border=0>

  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left ><B><I>($ in thousands)</I></B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="17%" align=right nowrap style="BORDER-TOP: #000000 1px solid"><B>September 30</B> </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid"
    align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="17%" align=right nowrap style="BORDER-TOP: #000000 1px solid"><B>March
      31</B> </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid"
    align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="17%"><B>2010</B> </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="17%"><B>2010</B> </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left bgColor=#e6efff >Assets </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="17%" bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="17%" bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left >&nbsp;Current assets </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="17%">&nbsp;77,855 </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="17%">&nbsp;17,701 </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left bgColor=#e6efff >&nbsp;Advances for equipment </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>1,188 </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>1,188 </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left >&nbsp;Reclamation deposits </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">22,890 </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">21,990 </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left bgColor=#e6efff >&nbsp;Mineral property interests,
      plant and equipment, net </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>281,735 </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>251,197 </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    >&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="17%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" width="2%"
    >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="17%">&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left bgColor=#e6efff >Liabilities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="17%" bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="17%" bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left >&nbsp;Current liabilities </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="17%">&nbsp;28,143 </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="17%">&nbsp;4,413 </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left bgColor=#e6efff >&nbsp;Deferred revenue - current
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>16,479 </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left >&nbsp;Long-term liabilities </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">22,512 </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">11,598 </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#e6efff >&nbsp;Site closure &amp;
      reclamation obligation </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    bgColor=#e6efff>8,025 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    bgColor=#e6efff>7,778 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%"
bgColor=#e6efff>&nbsp;</TD></TR></TABLE></DIV>
<P align=justify>Included within the Company&#146;s statement of operations and
comprehensive income for the three and nine months ended September 30, 2010 are
the Company's 75% interest in the operations of the Joint Venture. This 75%
interest is summarized as follows: </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="90%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left
      ><B><I>($ in thousands)</I></B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=right width="17%"><B>Three
      months ended</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=right width="17%"><B>Nine
      months ended</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="17%"><B>September 30, 2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="17%"><B>September 30, 2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Revenues </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="17%" bgColor=#e6efff>&nbsp;36,697 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="17%" bgColor=#e6efff>&nbsp;82,699 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Operating expenses </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">18,844 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">50,653 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Depreciation and depletion
</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>1,121 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="17%" bgColor=#e6efff>2,929 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Other (income) expenses </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">2,294 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="17%">2,643 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >Other comprehensive income </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    bgColor=#e6efff>70 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="17%"
    bgColor=#e6efff>164 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left
      ><B>Total comprehensive income</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="17%"><B>&nbsp;14,508</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="17%"><B>&nbsp;26,638</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD></TR></TABLE></DIV>
<P align=center>7 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_8></A>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify>Included within the cash flows of the Company for the three and
nine months ended September 30, 2010 are the Company&#146;s 75% interest in the cash
flows of the Joint Venture. This 75% interest is reflected as follows: </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="90%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left
      ><B><I>($ in thousands)</I></B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="22%" align=right nowrap style="BORDER-TOP: #000000 1px solid"><B>Three
      months ended</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="22%" align=right nowrap style="BORDER-TOP: #000000 1px solid"><B>Nine
      months ended</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="22%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>September 30, 2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="22%"><B>September 30, 2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Operating activities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="22%" bgColor=#e6efff>&nbsp;35,327 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD width="22%" align=right nowrap bgColor=#e6efff>&nbsp;38,325 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Investing activities </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="22%">(26,446</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="22%" align=right nowrap>(30,196</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >Financing activities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="22%"
    bgColor=#e6efff>11,550 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD width="22%" align=right nowrap
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">15,148 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE></DIV>
<P align=justify><B><I>Infrastructure and Mining Fleet Upgrades</I></B></P>
<P align=justify>During the third quarter, the new in-pit primary crusher and
conveyor system was operational and had reached full production target rates by
the end of the period. This new system reduces the mine&#146;s ore haul distance and
the original primary crusher is acting as backup.</P>
<P align=justify>Replacement of the current single-line tailings system with a
two line system was also completed at the end of the second quarter and
commissioned in the third quarter. Substitution of the natural gas fired
concentrate dryer with a filter press was completed and operating by the end of
the third quarter of 2010. This equipment reduces operating costs, provides a
more stable operating platform, and is able to handle the higher volumes
expected as the mill throughput increases. </P>
<P align=justify>Construction of the new SAG mill direct feed system is underway
and on track for commissioning in the first quarter of fiscal 2011. This feed
system is designed to improve mill availability, increase throughput and reduce
costs by eliminating the complicated secondary crusher and fine ore feed system.
The new direct feed system will also allow larger mill feed more appropriate for
autogenous grinding than can be achieved with the current system. </P>
<P align=justify>Copper production for the first nine months of 2010 (68.9
million pounds) was 30% higher than the first nine months of 2009 (53 million
pounds) as a result of the investments and operational improvements which have
occurred at Gibraltar over the past five years. The Company purchased four new
320 ton capacity haul trucks for the mine and a new 495HR Bucyrus shovel was
commissioned in October. This new mining equipment will replace older, smaller
machinery, thereby increasing productivity and reducing operating and
maintenance costs. </P>
<P align=justify><B><I>Labour and Safety</I></B></P>
<P align=justify>The number of active personnel at the site at the end of
September, 2010 was 440, compared to 377 personnel at the end of December, 2009.
There were no lost time accidents in the third quarter of 2010.</P>
<P align=center>8 </P>
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noShade SIZE=5>
<A name=page_9></A>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify><B>1.2.2&nbsp;&nbsp;&nbsp; Prosperity Project </B></P>
<P align=justify>Taseko holds a 100% interest in the Prosperity property,
located 125 kilometers southwest of the City of Williams Lake. The property
hosts a large porphyry gold-copper deposit amenable to open pit mining.</P>
<P align=justify>In early June, the British Columbia Provincial Government
granted Taseko a long-term, renewable, 25-year mining lease for the Prosperity
Gold-Copper Project, providing the Company with mineral tenure security for the
project. </P>
<P align=justify><I>Permitting </I></P>
<P align=justify>On January 14, 2010, Taseko received the environmental
assessment certificate for the Prosperity Project from the British Columbia
Provincial Ministry of Environment. This is an important milestone as it is the
Provincial Government which is responsible for mine development in British
Columbia. The Provincial Mines Act permit application was submitted to the
Ministry of Energy, Mines, and Petroleum Resources on June 17 and is currently
before the Provincial Mine Development Review Committee.</P>
<P align=justify>The Canadian Environmental Assessment process, in which public
hearings were conducted by a three-person Panel (&#147;Federal Panel&#148;) operating
under defined Terms of Reference, concluded on May 3, 2010. The Federal Panel
submitted its findings to the Federal Minister of Environment on July 2, 2010.
The panel findings were essentially the same as the conclusions reached in the
Provincial Environmental Assessment but they were not mandated to assess
economic and social value generated by the project.</P>
<P align=justify>On November 2, 2010, the Federal Minister of Environment
announced the Prosperity mine project, <I>as proposed</I>, cannot be granted
federal authorizations to proceed. Taseko is currently in discussions with both
the Federal and Provincial Governments to define the issues and determine
solutions so that this mining project can move forward and meet the criteria
that the Federal Government deem appropriate.</P>
<P align=justify><I>Gold Stream Agreement</I></P>
<P align=justify>In May 2010, the Company entered into a gold stream transaction
with Franco-Nevada Corporation (&#147;Franco-Nevada&#148;), under which Franco-Nevada will
purchase gold equal to 22% of the life of mine gold produced at the project.
Staged cash deposits aggregating US$350 million will be paid during mine
construction as well as 2 million Franco-Nevada warrants will be issued on the
date of the first advance of the cash payment. For each ounce of gold delivered
to Franco-Nevada, Taseko will receive a further cash payment of US$400 (subject
to an inflationary adjustment) or the prevailing market price, if lower. The
deposit will be credited with the difference between US$400 and the market price
of gold for each ounce delivered until the deposit is fully credited.</P>
<P align=justify>Each warrant is exercisable to purchase one Franco-Nevada
common share at a price of $75.00 until June 16, 2017 and will be listed under
the same terms as the warrants listed on TSX under the symbol FNV.WT.A.</P>
<P align=justify>The conditions to funding the gold steam include obtaining full
financing of the project, receipt of all material permits to construct and
operate Prosperity and securing marketing arrangements for the majority of the
concentrate.</P>
<P align=center>9 </P>
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noShade SIZE=5>
<A name=page_10></A>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify><B>1.2.3&nbsp;&nbsp;&nbsp; Harmony Project </B></P>
<P align=justify>Taseko holds 100% of the Harmony gold project, located on the
Queen Charlotte Island -Haida Gwaii on the northwest coast of British Columbia.
The Company has undertaken property maintenance and environmental monitoring
activities at Harmony since acquiring the project in 2001. Taseko is considering
initiating a pre-feasibility level study of Harmony during the 2011 fiscal year
to further evaluate the project. The project is in an area designated as a
mineral development zone under the Queen Charlotte-Haida Gwaii Land and Resource
Management Plan. </P>
<P align=justify><B>1.2.4&nbsp;&nbsp;&nbsp; Aley Project </B></P>
<P align=justify>Taseko holds 100% of the Aley niobium project in northern
British Columbia. The Company completed a 4,368 meter exploration drilling
program during the third quarter and is compiling and analyzing the results in
order to determine what work will be carried out during 2011. Management
believes that there is a strong market for niobium in steel production, so there
is excellent opportunity for development if the deposit is confirmed. </P>
<P align=justify><B>1.2.5&nbsp;&nbsp;&nbsp; Market Trends</B></P>
<P align=justify>Copper prices had an overall upward trend between late 2003 and
mid 2008, followed by an unprecedented 70% drop in prices over the final six
months of 2008 as a result of uncertainty in global financial markets. The
average copper price in 2008 was US$3.15/lb. Prices stabilized in January 2009
and then began to increase. The average copper price in 2009 was US$2.34/lb.
Price strength has continued in 2010 albeit with continued volatility averaging
US$3.32/lb up to the date of this report. </P>
<P align=justify>Gold prices were volatile in late 2008, dropping below
US$800/oz for a two-week period in September, and again from mid October through
November. The average gold price for 2008 was US$871/oz and US$974/oz in 2009.
The average price in 2010 to the date of this report is US$1,202/oz. </P>
<P align=justify>Molybdenum prices increased from US$7.60/lb in 2003 to peak at
US$34/lb in 2005. Prices averaged US$25.53/lb in 2006 and US$30.47/lb in 2007.
Molybdenum prices dropped significantly in late 2008, but averaged US$28.98/lb
based on strength earlier in the year. Molybdenum prices continued to drop in
2009 to about US$8.00/lb in early May, but improved after that and averaged
US$11.28/lb for the year. The average price in 2010 to the date of this report
is US$15.80/lb.</P>
<P align=justify>The Company sells its products in United States dollars but its
expenses are denominated primarily in Canadian dollars. The nine-month average
to September 30, 2010 for one United States dollar was 1.0362 Canadian dollars.
At September 30, 2010, one United States dollar was equivalent to 1.0290
Canadian dollars. Current forecasts anticipate continued strength in the
Canadian dollar. </P>
<P align=justify><B><FONT
color=#0000ff>1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selected Annual Information</FONT></B></P>
<P align=justify>Not applicable. Please refer to the MD&amp;A for the fiscal
year December 31, 2009. </P>
<P align=center>10 </P>
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noShade SIZE=5>
<A name=page_11></A>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify><B><FONT
color=#0000ff>1.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Summary of Quarterly
Results </FONT></B></P>
<P align=justify>The consolidated financial results reported for September 30,
2010 and June 30, 2010 reflect the Company&#146;s 75% interest in the new Joint
Venture, which includes the results of operations since April 1, 2010.</P>
<P align=justify><I>Expressed in thousands of Canadian dollars, except per-share
amounts.</I></P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 6pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="6%">Sept 30 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="6%">Jun 30 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="6%">Mar 31 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="6%">Dec 31 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="6%">Sept 30 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="6%">June 30 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="6%">Mar 31 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="6%">Dec 31 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="6%">2010
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="6%">2010
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="6%">2010
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="6%">2009
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="6%">2009
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="6%">2009
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="6%">2009
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="6%">2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Current assets </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>262,581 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>238,691 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>249,118 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>92,316 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>90,209 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>75,950 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>58,357 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>41,283 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Mineral properties </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">27,588 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">26.628 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">26,566 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">32,631 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">32,617 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">32,617 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">32,619 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">32,610 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Plant and equipment </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>263,544 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>235,535 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>233,672 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>305,205 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>303,434 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>301,891 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>295,094 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>292,390 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Other assets </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">96,190 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">99,851 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">96,641 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">104,943 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">107,686 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">107,707 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">112,321 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">111,962 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff><B>Total assets </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff><B>649,903 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff><B>600,705 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff><B>605,997 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff><B>535,095 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff><B>533,946 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff><B>518,165 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff><B>498,391 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff><B>478,245 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="6%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="6%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="6%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="6%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="6%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="6%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="6%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="6%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Current liabilities </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>80,998 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>53,621 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>78,468 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>75,179 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>58,949 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>61,503 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>91,195 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>112,053 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Other liabilities </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">128,626 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">112,362 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">139,077 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">163,223 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">183,856 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">165,341 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">166,596 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">131,285 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Shareholders' equity </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>440,279 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>434,722 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>388,452 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>296,693 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>291,141 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>291,321 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>240,600 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>234,907 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Total
      liabilities and shareholders' equity </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%"><B>649,903 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%"><B>600,705 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%"><B>605,997 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%"><B>535,095 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%"><B>533,946 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%"><B>518,165 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%"><B>498,391 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%"><B>478,245 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="6%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="6%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="6%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="6%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="6%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="6%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="6%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="6%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Revenue </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">37,540 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">56,453 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">75,508 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">55,966 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">40,132 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">52,632 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">40,172 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">10,576 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Mine site operating costs </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>14,743 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>30,488 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>31,559 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>32,160 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>24,528 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>26,203 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>25,454 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>42,021 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Transportation and treatment </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">4,115 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">6,678 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">8,259 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">5,724 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">4,554 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">7,609 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">6,202 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">7,054 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Amortization </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>1,217 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>1,902 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>2,580 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>2,421 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>1,677 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>2,142 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>1,910 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>1,979 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Operating
      profit (loss) </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%"><B>17,465 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%"><B>17,385 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%"><B>33,110 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%"><B>15,661 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%"><B>9,373 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%"><B>16,678 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%"><B>6,606 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%"><B>(40,478</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B><U>Expenses: </U></B></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="6%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="6%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="6%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="6%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="6%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="6%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="6%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="6%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Accretion of reclamation obligation </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">202 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">197 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">256 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">250 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">245 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">239 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">234 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">183 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Asset retirement obligation change of
      estimates </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>(4,504</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Exploration </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">3,619 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">1,519 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">981 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">1,519 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">805 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">549 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">534 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">1,088 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Foreign exchange loss (gain) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>1,972 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>(2,774</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>(590</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>(681</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>(3,108</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>(7,941</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>2,930 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>3,249 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Gain on convertible bond repurchase </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">(948</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">(682</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>General and administration </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>3,139 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>3,270 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>2,785 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>2,197 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>1,752 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>2,104 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>2,329 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>2,220 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Interest expense and accretion charges </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">652 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">731 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">2,101 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">1,935 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">2,041 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">2,765 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">2,784 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">3,839 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Interest and other income </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>(2,917</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>(10,611</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>(1,630</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>(1,702</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>(1,529</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>(1,987</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>(2,184</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>(1,362</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Loss on prepayment of credit facility </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">834 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Loss (gain) on sale of marketable
      securities </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>(2,973</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>(765</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>(349</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>(1,004</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>816 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Loss on equipment disposal </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">701 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Premium paid on redemption of royalty
      obligation </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>1,302 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Realized loss on derivative instrument </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">3,881 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">7,661 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">7,762 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">3,568 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">- </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Stock-based compensation </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>1,176 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>1,110 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>5,454 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>2,385 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>1,073 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>1,581 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>657 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>1,054 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">4,870 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">(3,442</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">18,805 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">12,661 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">4,715 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">(3,372</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">7,284 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">6,468 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Earnings (loss) before other items </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>12,595 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>20,827 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>14,305 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>3,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>4,658 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>20,050 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>(678</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>(46,946</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Other Items: </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="6%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="6%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="6%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="6%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="6%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="6%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="6%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="6%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Gain (loss) on contribution to the joint
      venture </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>(3,363</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>97,382 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Unrealized gain
      (loss) on derivative instruments </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">(5,015</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">8,910 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">7,491 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">(4,237</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">(8,829</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">(2,709</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Earnings (loss) before income taxes </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>4,217 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>29,737 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>119,178 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>(1,237</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>(4,171</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>17,341 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>(678</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff>(46,946</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Income tax expense
      (recovery) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">2,839 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">(15,703</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">42,729 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">766 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">(1,822</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">5,936 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">(4,186</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%">(7,303</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff><B>Earnings (loss) for the period </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff><B>1,378 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff><B>45,440 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff><B>76,449 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff><B>(2,003</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff><B>(2,349</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff><B>11,405 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff><B>3,508 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="6%" bgColor=#e6efff><B>(39,643</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Earnings (loss) per share &#150; basic </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">0.01 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">0.24 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">0.42 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">(0.01</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">(0.01</TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">0.07 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">0.02 </TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%">(0.29</TD>
    <TD vAlign=bottom align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Earnings (loss) per share &#150;diluted </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>0.01 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>0.24 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>0.40 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>(0.01</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>(0.01</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>0.06 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>0.02 </TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="6%" bgColor=#e6efff>(0.26</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>)
</TD></TR></TABLE></DIV>
<P align=center>11 </P>
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noShade SIZE=5>
<A name=page_12></A>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify><B><FONT
color=#0000ff>1.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Results of Operations</FONT></B></P>
<P align=justify>The results of operations reported for the three months and
nine months ended September 30, 2010 reflect the Company&#146;s 75% interest in the
new Joint Venture from the inception date of April 1, 2010. Sales and production
volumes reflected below are on a 100% basis unless otherwise indicated.<B>
</B></P>
<P align=justify><I><U>Three months ended September 30, 2010 </U></I></P>
<P align=justify>During the three months ended September 30, 2010 (&#147;Q3 2010&#148;),
Taseko generated operating profit of $17.5 million compared to $9.4 million
during the three months ended September 30, 2009 (&#147;Q3 2009&#148;) and earnings before
tax and other items of $12.6 million for Q3 2010, compared to a profit before
tax and other items of $4.7 million for Q3 2009. Other items include an
unrealized (non-cash) mark-to-market loss of $5.0 million, attributable to
derivative instruments related to the copper hedging program. This compares to
an unrealized loss of $8.8 million in Q3 2009, resulting in a decrease in the
fair market valuation of the copper hedging program. In addition, the Company
recorded a purchase price adjustment in the amount of $3,363 related to the
formation of the Joint Venture during the quarter. </P>
<P align=justify>During the three months ended September 30, 2010, the Company
had cash outflows from operating activities of $35.4 million, this compared to
an outflow of $5.7 million for Q3 2009.</P>
<P align=justify>The Company recognized revenues of $37.5 million in Q3 2010,
compared to $40.1 million in the same period in fiscal 2009. Revenues consisted
of copper concentrate sales of $32.9 million (Q3 2009 &#150; $34.7 million),
molybdenum concentrate sales of $3.2 million (Q3 2009 &#150; $3.0 million), silver
concentrate sales of $0.3 million (Q3 2009 &#150; $Nil), and copper cathode sales of
$1.1 million (Q3 2009 - $2.4 million). For Q3 2010, 11.5 million pounds of
copper were sold by the Gibraltar Mine compared to 12.7 million pounds of copper
for Q3 2009. The average price per pound of copper sold increased to US$3.76 per
pound for Q3 2010, up from US$2.65 per pound for Q3 2009. Molybdenum sales from
the Gibraltar Mine were 0.3 million pounds for Q3 2010 compared to 0.1 million
pounds for Q3 2009. The average price per pound of molybdenum sold increased to
US$15.89 per pound for Q3 2010, up from US$12.37 per pound for Q3 2009.</P>
<P align=justify>Despite the higher realized prices for copper, there was slight
decrease in revenue in Q3 2010 over the same quarter last year due to the
Company&#146;s 75% joint venture allocation of the total revenues from the Gibraltar
Joint Venture. In addition, approximately 16.3 million lbs of copper concentrate
remained in the Gibraltar Mine ending inventory at September 30, 2010. The
Company received a partial payment for a portion of the inventory (approximately
$16 million) prior to the quarter end, this amount was classified as deferred
revenue at quarter end. The shipment occurred four days after the period
end.</P>
<P align=justify>Cost of sales for Q3 2010 were $18.9 million, compared to $29.1
million for Q3 2009. Cost of sales for Q3 2010 consists of total production cost
of $27.4 million (Q3 2009 &#150; $27.7 million) and a credit concentrate inventory
adjustment of $12.5 million (Q3 2009 &#150; credit $3.2 million). Also included in
cost of sales are transportation and treatment costs, which were $4.0 million
for Q3 2010 (Q3 2009 &#150; $4.6 million). In total, the increase in production costs
at Gibraltar Mine is in line with the increase in production volumes, which
increased by 30% over the same quarter of last year. The decrease in total
production costs reported for the current quarter reflects the Company&#146;s 75%
joint venture allocation of </P>
<P align=center>12 </P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify>the total production costs. The higher credit inventory
adjustment to cost of sales during the period was the result of higher ending
inventory levels at quarter end.</P>
<P align=justify>Amortization expense for Q3 2010 was $1.2 million compared to
$1.7 million in Q3 2009. The decrease was due to the lower net expense
reflecting the Company&#146;s 75% joint venture allocation of the total amortization
costs. Mining and milling assets are amortized using the units of production
method based on tons mined and tons milled during the period and divided by the
estimated tonnage to be mined and milled in the mine plan.</P>
<P align=justify>Exploration expenses increased to $3.6 million in Q3 2010
compared to $0.8 million in Q3 2009, due to a higher level of exploration
activity at the Company's Prosperity and Aley projects (see Section 1.2.2) .</P>
<P align=justify>General and administrative (&#147;G&amp;A&#148;) costs increased to $3.1 million in Q3
  2010 from $1.8 million in Q3 2009. The increase is primarily due to higher
  staffing levels supporting the current and projected growth of the business.</P>
<P align=justify>Stock-based compensation was $1.2 million in Q3 2010 compared
to $1.1 million in Q3 2009.</P>
<P align=justify>Interest and other income increased to $2.9 million as compared
to $1.5 million in Q3 2009. The increase is primarily due to the higher amounts
of interest being earned on the increased cash position in the 2010 period.</P>
<P align=justify>Interest expense and interest accretion decreased to $0.7
million in Q3 2010 compared to $1.9 million in Q3 2009 due to the redemption of
the Company&#146;s convertible bonds during fiscal 2009, and the repayment of the
Credit Suisse loan facility.</P>
<P align=justify>The Company recorded a foreign exchange loss of $2.0 million
for Q3 2010 compared to a gain of $3.1 million in Q3 2009. This was due to the
Company having fewer US denominated liabilities, when compared to the same
quarter of the prior year.</P>
<P align=justify>The Company recognized a gain of $3.0 million on the sale of
marketable securities during the period, compared to a loss of $0.8 million in
the same period last year.</P>
<P align=justify>Under the existing hedging contracts no realized losses were
recorded for Q3 2010 (Q3 2009 &#150; loss $3.6 million), but the Company recorded an
unrealized loss of $5.0 million for the period (Q3 2009 &#150; loss of $8.8 million)
as a result of the decrease in the fair value of the Company&#146;s derivative
financial instruments, and the settlement of various transactions under these
contracts in the first two quarters of 2010.</P>
<P align=justify>Current income taxes recovery in the quarter of $3.6 million
(Q3 2009 &#150; recovery of $1.2 million) and future income tax expense of $6.5
million (Q3 2009 &#150; recovery of $0.6 million) were recorded for Q3 2010. The
current income tax recovery is mostly due to the ability of the company to
reduce current taxes through the reduction of its existing tax pools. This was
offset by the increase in future income tax expense in the quarter and an
increase in net future income tax liabilities.</P>
<P align=center>13 </P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify><I><U>Nine months ended September 30, 2010</U></I> </P>
<P align=justify>Taseko generated operating profit of $68.0 million during the
nine months ended September 30, 2010, compared to $32.7 million during the nine
months ended September 30, 2009. The Company&#146;s earnings before tax and other
items was $47.7 million, compared to $24.0 million for the same period in prior
year. Other items include a gain on the contribution to the Joint Venture of
$94.0 million (2009 - $nil) and an unrealized (non-cash) mark-to-market gain
attributable to derivative instruments related to the copper hedging program of
$11.4 million (2009 unrealized loss of $11.5 million).</P>
<P align=justify>The Company had a cash inflow on operating activities of $55.3
million as compared to an outflow of $16.4 million for the same nine months in
the prior year. The increase in cash inflows primarily result from the increase
in sales over the same period of the prior year. The cash outflow from operating
activities during the nine months ended September 30, 2009 resulted in part from
paying off the negative pricing adjustments that occurred in fiscal 2008 that
were settled during Q1 2009.</P>
<P align=justify>The Company reported revenues of $169.5 million for the first
nine months of 2010, compared to $132.9 million in the same period in fiscal
2009. Revenues consisted of copper concentrate sales of $156.9 million (2009 &#150;
$119.6 million), molybdenum concentrate sales of $9.5 million (2009 &#150; $8.1
million), silver concentrate sales of $1.6 million (2009 &#150; $1.4 million), and
copper cathode sales of $1.5 million (2009 &#150; $3.8 million). The increase in
revenue was the result of higher copper shipments in 2010 as well as a higher
average realized copper price. In 2010, 52.7 million pounds of copper
(concentrate and cathode) were sold by Gibraltar Mine compared to 51.4 million
pounds of copper (concentrate and cathode) for 2009. The average price per pound
of copper sold increased to US$3.37 per pound for 2010, up from US$2.06 per
pound for 2009. Molybdenum sales were 0.6 million pounds for 2010 which matched
the 0.6 million pounds for 2009. The average price per pound of molybdenum sold
increased to US$16.29 per pound for 2010, up from US$11.69 per pound for the
corresponding period in 2009.</P>
<P align=justify>Cost of sales was $95.8 million for the first three quarters of
fiscal 2010, compared to $94.5 million for the same period in fiscal 2009. Cost
of sales includes total production cost of $89.3 million (2009 &#150; $77.7 million)
and a credit concentrate inventory adjustment of $12.5 million (Q3 2009 &#150; credit
adjustment of $1.6 million). Also included in cost of sales is transportation
and treatment costs, which were $19.0 million for 2010 (2009 &#150; $18.4 million).
</P>
<P align=justify>Amortization expense was $5.7 million for the nine months ended
September 30, 2010, which matches the $5.7 million for the same period in fiscal
2009.</P>
<P align=justify>Exploration expenses were $6.1 million, compared to $1.9
million for the same period in 2009. The increase is due to a higher level of
exploration activity at the Company's Prosperity and Aley projects (see Section
1.2.2) .</P>
<P align=justify>General and administrative (&#147;G&amp;A&#148;) costs were $9.2 million
for the nine months of fiscal 2010, compared to $6.2 million for the same period
in fiscal 2009. The increase is due to higher staffing levels and support costs
associated with the growth within the Company. </P>
<P align=justify>Stock-based compensation for the nine months ended September
30, 2010 was $7.7 million, compared to $3.3 million for the same period in
fiscal 2009. The increase is mainly due to the newly granted options in fiscal
2010.</P>
<P align=center>14 </P>
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noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify>Interest and other income was $15.2 million during the first
three quarters of fiscal 2010, compared to $5.7 million for the same period in
fiscal 2009. The increase is primarily due to the interest expense recovery of
$8.1 million during the previous quarter, associated with the reversal of a
provision for tax liabilities.</P>
<P align=justify>Interest expense was $3.5 million for the nine months of fiscal
2010, compared to $7.6 million for the same period in fiscal 2009. The decrease
is due to the redemption of the Company&#146;s convertible bonds during fiscal 2009
and repayment of a credit facility at the end of Q1 2010.</P>
<P align=justify>The Company recorded a foreign exchange gain of $1.4 million
for the nine months ended September 30, 2010, compared to a gain of $8.1 million
for the same period in fiscal 2009. The change year-over-year is due to the
Company having repaid the long-term credit facility in the first quarter of this
year, resulting in a significant decrease in its US-dollar denominated
liabilities at September 30, 2010. </P>
<P align=justify>The Company recognized a gain of $4.0 million on the sale of
marketable securities during the nine month period, compared to a loss of $0.8
million in the same period last year.</P>
<P align=justify>The Company recorded a realized loss of $11.5 million for the
nine months ended September 30, 2010 (Q3 2009 - $3.6 million) and an unrealized
gain of $11.4 million, compared to an unrealized loss of $11.5 million for the
same period last year. This results from the fair market valuation of various
call and put option contracts with three separate counter parties and the
settlement of the transactions under the contracts during the nine month
period.</P>
<P align=justify>The Company recognized current income tax expense of $4.3
million for the nine months ended September 30, 2010, compared to an income tax
expense of $1.5 million for the same period in the prior year. The expense is
derived from income from operations, proceeds from the Cariboo transaction and a
reversal of historical tax reserves. The Company also recorded a future income
tax expense of $25.5 million (Q3 2009 &#150; recovery of $1.6 million), due to the
reduction in tax pools available used to reduce taxable income from the Cariboo
transaction and mine operations. </P>
<P align=justify><B><FONT
color=#0000ff>1.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liquidity
</FONT></B></P>
<P align=justify>At September 30, 2010, the Company had cash and equivalents of
$195.4. million, as compared to $35.1 million at December 31, 2009. In addition,
the Company had working capital of $181.6 million, as compared to working
capital of $17.1 million at December 31, 2009. The increase in working capital
was primarily a result of the proceeds from the sale of the 25% interest in the
Joint Venture to Cariboo and the prepayment of its long term debt facility and
the current portion related thereto. </P>
<P align=justify>Management anticipates that sales from copper and molybdenum
concentrate and copper cathode, along with the various financing activities
disclosed in Section <I>1.7 Capital Resources</I>, and cash management
strategies will be sufficient to fund current operations and satisfy obligations
as they come due. Management continuously monitors all commitments and planned
expenditures necessary to maintain operational and capital spending objectives
for the fiscal year.</P>
<P align=center>15 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_16></A>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify><I>Liquidity Risk </I></P>
<P align=justify>The Company ensures that there is sufficient capital in order
to meet short-term business requirements, after taking into account cash flows
from operations and the Company's holdings of cash and equivalents. The Company
believes that these sources will be sufficient to cover the likely short and
long term cash requirements. The Company's cash and equivalents are invested in
business bank accounts with a major Canadian financial institution and are
available on demand for the Company's programs. </P>
<P align=justify>The following are the maturities of contractual obligations (in
thousands of Canadian dollars): </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="90%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=right
      width="11%"><B>Contractual </B></TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="11%">&nbsp;
</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="11%">&nbsp;
</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="11%">&nbsp;
</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=right width="11%"><B>Over
      3 </B></TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left
  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>As at September
      30, 2010 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="11%"><B>Obligations </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="11%"><B>2010 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="11%"><B>2011 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="11%"><B>2012 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="11%"><B>years </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Accounts payable and accrued liabilities
</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="11%" bgColor=#e6efff>&nbsp;23,435 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="11%" bgColor=#e6efff>&nbsp;23,435 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="11%" bgColor=#e6efff>&nbsp;&#150; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="11%" bgColor=#e6efff>&nbsp;&#150; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="11%" bgColor=#e6efff>&nbsp;&#150; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Amounts due to a related party </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="11%">178 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="11%">178 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="11%">&#150; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="11%">&#150; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="11%">&#150; </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Capital lease obligations </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#e6efff>12,992 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#e6efff>1,194 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#e6efff>3,945 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#e6efff>3,907 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#e6efff>3,946 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Long-term
      equipment loan </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="11%">21,404 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%">1,486
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%">5,942
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%">7,449
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%">6,527
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left
      bgColor=#e6efff>Total liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="11%"
    bgColor=#e6efff>&nbsp;58,009 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="11%"
    bgColor=#e6efff>&nbsp;26,293 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="11%"
    bgColor=#e6efff>&nbsp;9,887 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="11%"
    bgColor=#e6efff>&nbsp;11,356 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="11%"
    bgColor=#e6efff>&nbsp;10,473 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR></TABLE></DIV>
<P align=justify>The Company is also committed to equipment financing in
relation to expansion activities at the Gibraltar Mine in the amount of $9.6
million. This represents the Company&#146;s 75% allocation for the financing
arrangements relating to the purchase of four new haul trucks, the first two
have been commissioned, with the remaining two by the end of December, 2010.
</P>
<P align=justify>The Company also has purchase orders in the normal course of
operations for capital equipment. The orders have specific delivery dates and
financing of this equipment will be through existing cash resources. </P>
<P align=justify>Other than those obligations disclosed in the notes to the
consolidated financial statements for the nine months ended September 30, 2010,
the Company has no other material capital commitments for capital expenditures,
long-term debt, capital lease obligations, operating leases or any other
long-term obligations. </P>
<P align=justify><B><FONT
color=#0000ff>1.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital Resources
</FONT></B></P>
<P align=justify>The Company&#146;s primary sources of liquidity and capital
resources are our cash flow provided from operations as well as equity and debt
financings. </P>
<P align=justify><I>Debt Financings </I></P>
<P align=justify>In February 2009, the Company entered into and drew down a
US$30 million 36-month term facility agreement (the &#147;Facility&#148;) with Credit
Suisse. During Q3 2009, the Company and Credit Suisse, as Facility Agent, and
Investec Bank plc amended the Facility to increase the existing Facility by an
additional US$20 million and the Company drew these additional funds. Under the
amended facility agreement, the US$50 million Facility was repayable commencing
April 2010 and every second month thereafter in equal installments of US$4.2
million until February 2012. The Facility interest rate was </P>
<P align=center>16 </P>
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noShade SIZE=5>
<A name=page_17></A>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify>LIBOR plus 5 percent and was due and payable bi-monthly. The
long-term credit facility security provided under the terms of the relevant
agreement included certain equipment of the Gibraltar Mine, a general security
pledge, and the treatment and refining off-take agreement in addition to a
corporate guarantee.</P>
<P align=justify>In Q1 2010, the Company prepaid the Facility without penalty. A
loss of $0.8 million was recorded in the Company&#146;s statement of operations as a
result of the prepayment of the Facility and the requirement to simultaneously
expense deferred financing costs. </P>
<P align=justify>In September 2010, the Joint Venture entered into a 5-year
capital lease agreement to finance the purchase of a new haul truck for the
Gibraltar Mine in the amount of $4.3 million. The terms of the lease require
monthly installments of approximately $83,000 beginning in October 2010 and
ending in August, 2015, at a nominal annual interest rate of 5.99% . The Company
guaranteed this financing. </P>
<P align=justify>In September 2010, the Joint Venture entered into a new
48-month term equipment loan to finance the purchase of a new shovel for the
Gibraltar Mine in the amount of $18.8 million. The loan is secured by the
underlying shovel at the Gibraltar Mine. The loan is repayable in monthly
installments of approximately $435,000 beginning in September 2010 through to
August 2014. The loan bears a fixed interest rate of 5.349% and is guaranteed by
the Company and Cariboo.</P>
<P align=justify><I>Equity Financings </I></P>
<P align=justify>See Section 1.11 Proposed Transactions below </P>
<P align=justify><I>Other Financings </I></P>
<P align=justify>During the prior fiscal year, the Company entered into an
agreement with an unrelated investment partnership, Gibraltar Royalty Limited
Partnership ("GRLP"). Gibraltar sold to GRLP a royalty for $6.5 million.</P>
<P align=justify>Annual royalties were payable by Gibraltar to GRLP at rates
ranging from $0.003 per pound to $0.004 per pound of copper produced during the
period from September 1, 2009 to December 31, 2030 (the &#147;Royalty Period&#148;). These
royalty payments were to be recognized as an expense during the period. </P>
<P align=justify>The Company classified the principal balance of royalty
obligation as a financial liability to be settled in a future period. The
Company had a pre-emptive option to repurchase ("call") the royalty obligation
by acquiring the GRLP partnership units after March 1, 2010 to December 31, 2012
in consideration of a payment equal to the funds received by the Company plus a
20% premium payable in the Company&#146;s shares or cash. GRLP also had a right to
sell ("put") its GRLP partnership units to the Company at fair value after April
1, 2010 to December 31, 2012. However, this &#147;put&#148; right was subject to the
Company's pre-emptive right to exercise the "call" in advance of any "put" being
exercised and completed. </P>
<P align=justify>In Q1 2010, the Company exercised its &#147;call&#148; option through the
issuance of 1,556,355 shares of the Company and recognized an expense of $1.3
million related to a premium on early redemption.</P>
<P align=justify><B><FONT
color=#0000ff>1.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Off-Balance Sheet
Arrangements </FONT></B></P>
<P align=justify>None. </P>
<P align=center>17 </P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify><B><FONT
color=#0000ff>1.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transactions with
Related Parties </FONT></B></P>
<P align=justify>Hunter Dickinson Services Inc. ("HDSI") (formerly Hunter
Dickinson Inc.) is a private company which until recently was owned equally by
several public companies, one of which is Taseko. During the first quarter of
the current fiscal year, the Company sold its interest in HDSI for nominal
value. HDSI has certain directors in common with the Company and carries out
geological, engineering, corporate development, administrative, financial
management, investor relations, and other management activities for, and incurs
third party costs on behalf of the Company. On July 2, 2010, the HDSI services
agreement was modified and services are now provided based on annually set
hourly rates. </P>
<P align=justify>Costs for services rendered and costs incurred on behalf of the
Company by HDSI during the quarter ended September 30, 2010 were $0.9 million,
as compared to $0.6 million in Q3 2009. Costs for the nine month period ended
September 30, 2010 were $2.1 million (2009 &#150; $2.1 million). </P>
<P align=justify>Under the terms of the Joint Venture Operating Agreement, the
Joint Venture pays a management fee to the Company for services rendered by the
Company to the Joint Venture as operator of the Gibraltar Mine. During the nine
month ended September 30, 2010, the Company earned $1.5 million in management
fees of which 25% in the amount $0.38 million (2009 &#150; nil) was recorded in the
Company&#146;s accounts as other income. </P>
<P align=justify><B><FONT color=#0000ff>1.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Fourth Quarter </FONT></B></P>
<P align=justify>Not applicable. </P>
<P align=justify><B><FONT color=#0000ff>1.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Proposed Transactions </FONT></B></P>
<P align=justify><I>Franco-Nevada Gold Stream Transaction </I></P>
<P align=justify>On May 12, 2010, the Company announced it had entered into an
arrangement (the &#147;Arrangement&#148;) with Franco-Nevada Corporation (&#147;Franco-Nevada&#148;)
to sell 22% of the gold to be produced from the Prosperity Project. Commencing
with the construction of the Prosperity Mine, the Company will receive from
Franco-Nevada funding totaling US$350 million. Upon delivery of the gold to
Franco Nevada, once Prosperity is in production, a fixed price payment will be
made to the Company equal to the lesser of US$400/oz. and the spot price at the
time of sale (subject to a 1.0 % annual compounding adjustment starting on the
4th anniversary of the Arrangement). </P>
<P align=justify>Under terms of the Arrangement, the unpaid amount of the
Deposit will remain refundable until it is reduced to nil. The Deposit will be
reduced by an amount equal to the difference between the spot price of gold and
the USD$400/oz fixed price and multiplied by the total ounces of gold delivered
to Franco-Nevada. If at the end of the initial 40&#150;year term of the Arrangement,
the Deposit has not been reduced to nil, the Company will refund the outstanding
portion of the Deposit to Franco-Nevada.</P>
<P align=center>18 </P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify><I>At-the-Market Equity Financing </I></P>
<P align=justify>Subsequent to September 30, 2010, the Company obtained a
receipt in respect of the final short-form base shelf prospectus from regulatory
authorities. The shelf registration will, subject to securities regulatory
requirements, allow the Company to make offerings of common shares, warrants,
subscription receipts, debt securities, or any combination of such securities up
to an aggregate offering price of $300 million during the 25 month period that
the final short form base shelf prospectus, including any amendments thereto,
remains effective.</P>
<P align=justify>During October, the Company filed a prospectus supplement to
its final base shelf prospectus, with regulatory authorities. The Company also
entered into an &#145;At the Market Issuance Agreement&#146;, with a third party, under
which the Company may, at its discretion, from time to time sell up to a maximum
of 18,600,000 of its common shares through "at-the-market" ("ATM") issuance. The
third party will act as sales agent for any sales made under the ATM. The common
shares will be sold at market prices prevailing at the time of a sale. The
Company is not required to sell any of the reserved shares at any time during
the term of the ATM, which extends until November 1, 2012, and there are no fees
for having established the arrangement. The ATM Issuance Agreement does not
prohibit the Company from conducting other financings.</P>
<P align=justify><B><FONT
color=#0000ff>1.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Critical Accounting
Estimates </FONT></B></P>
<P align=justify>The preparation of financial statements in conformity with
Canadian GAAP requires companies to establish accounting policies and to make
estimates that affect both the amount and timing of recording of assets,
liabilities, revenues and expenses. Some of these estimates require judgments
about matters that are inherently uncertain.</P>
<P align=justify>On an ongoing basis, management reviews its estimates,
including those related to revenue recognition, asset retirement obligations
(&#147;ARO&#148;), mineral resources and reserves, depletion, depreciation and impairment,
income taxes, stock-based compensation, inventories and the copper hedging
program. Actual results could differ from these estimates. The discussion of the
accounting policies that require management's estimates can be found on pages 18
to 21 of the Company's 2009 Annual MD&amp;A. These have not materially changed
since December 31, 2009. </P>
<P align=justify><B><FONT
color=#0000ff>1.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in Accounting
Policies including Initial Adoption </FONT></B></P>
<P align=justify><I>(a) New Accounting Standards adopted:</I><I> </I></P>
<P align=justify>As a result of the Company&#146;s joint venture over the Gibraltar
Mine on March 31, 2010, the Company has adopted the following standard on a
prospective basis with no restatement to prior period financial statements. </P>
<P align=center>19 </P>
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    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify><I>CICA 3055 &#150; &#147;Interests in Joint Ventures&#148; </I></P>
<P align=justify>The Company&#146;s interests in jointly controlled assets are
accounted for using proportionate consolidation. The Company combines its share
of the joint venture&#146;s individual income and expenses, assets and liabilities
and cash flows on a line-by-line basis with similar items in the Company&#146;s
financial statements. The Company recognizes the portion of gains or losses on
the sale of assets by the Company to the joint venture that is attributable to
the other venturers. The Company does not recognize its share of profits or
losses from the joint venture that result from the Company&#146;s purchase of assets
from the joint venture until it resells the assets to an independent party.
However, a loss on the transaction is recognized immediately if the loss
provides evidence of a reduction in the net realizable value of current assets,
or an impairment loss. </P>
<P align=justify><I>(b) New Accounting Standards Not Yet Adopted: </I></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>(i)</I> </TD>
    <TD>
      <P align=justify><I>Business Combinations/Consolidated Financial
      Statements/Non-Controlling Interests</I></P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The AcSB issued CICA Sections 1582, <I>Business
      Combinations</I>, 1601, <I>Consolidated Financial Statements</I>, and
      1602<I>, Non-Controlling Interests </I>which superseded current Sections
      1581, <I>Business Combinations </I>and 1600 <I>Consolidated Financial
      Statements</I>. These new Sections replace existing guidance on business
      combinations and consolidated financial statements to harmonize Canadian
      accounting for business combinations with IFRS. These Sections will be
      applied prospectively to business combinations for which the acquisition
      date is on or after the beginning of the first annual reporting period
      beginning on or after January 1, 2011. The Company is currently evaluating
      the impact of the adoption of these changes on its consolidated financial
      statements.</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>ii)</I> </TD>
    <TD>
      <P align=justify><I>Transition to International Financial Reporting
      Standards (&#147;IFRS&#148;)</I></P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The AcSB confirmed in February 2008 that International
      Financial Reporting Standards (&#147;IFRS&#148;) will replace Canadian generally
      accepted accounting principles (&#147;GAAP&#148;) for publicly accountable
      enterprises for financial periods beginning on and after January 1, 2011.
      Accordingly, the Company will be required to present its financial
      statements in accordance with IFRS for its fiscal year beginning January
      1, 2011. As the comparative period ending December 31, 2010 will also
      require presentation in accordance with IFRS, the Company&#146;s transition
      date for converting to IFRS is January 1, 2010 (the &#147;Transition Date&#148;).
      The following discussion provides further information about the Company&#146;s
      IFRS convergence activities.</P></TD></TR></TABLE>
<P align=justify><B><U>Management of IFRS Convergence Project</U></B><B>
</B></P>
<P align=justify>The Company has begun the process of transitioning from GAAP to
IFRS. It has established a formal project plan, allocated internal resources and
engaged expert consultants, monitored by a Steering Committee to manage the
transition from GAAP to IFRS reporting. The Steering Committee regularly updates
the Audit Committee and the Board of Directors with the progress of the
convergence project through communication and meetings.</P>
<P align=justify>The Company is in the process of evaluating its overall
readiness to transition from GAAP to IFRS including the readiness of its staff,
Board of Directors, Audit Committee and auditors. The IFRS </P>
<P align=center>20 </P>
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style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
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  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify>convergence project instituted consists of three primary
phases, which in certain cases will occur concurrently as IFRS is applied to
specific areas: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P><U>Phase 1 - Initial Scoping and Impact Assessment Analysis: </U>to isolate
  key areas that will be impacted by the transition to IFRS. </P>
  <LI>
  <P><U>Phase 2 - Evaluation and Design: </U>to identify specific changes
  required to existing accounting policies, information systems and business
  processes, together with an analysis of policy alternatives allowed under IFRS
  and development of draft IFRS financial statements. </P>
  <LI>
  <P><U>Phase 3 - Implementation and Review</U>: to execute the changes to
  information systems and business processes, completing formal authorization
  processes to approve recommended accounting policy changes and training
  programs across the Company&#146;s finance and other staff, as necessary. This will
  culminate in the collection of financial information necessary to compile IFRS
  compliant financial statements, including embedding IFRS principles in
  business processes, and Audit Committee review and approval of the financial
  statements. </P></LI></UL>
<P align=justify>The Company is now in the evaluation and design phase having
completed most of the initial scoping and impact assessment in Q4 2009. A
detailed timetable has been prepared to manage the transition and to monitor the
progress of the transition project. At the date of preparing this MD&amp;A, the
Steering Committee has presented the project plan and its initial scoping and
impact assessment to the Audit Committee. We expect to complete the
quantification of financial statement impacts by the end of Q4 2010.<B> </B></P>
<P align=justify><B><U>First-time Adoption of International Financial Reporting
Standards</U></B><B> </B></P>
<P align=justify>IFRS 1, <I>First-time Adoption of International Financial
Reporting Standards</I> (&#147;IFRS 1&#148;), sets forth guidance for the initial adoption
of IFRS. Commencing for the period ended March 31, 2011 the Company will restate
its comparative fiscal 2010 financial statements for annual and interim periods
to be consistent with IFRS. In addition, the Company will reconcile equity and
net earnings from the previously reported fiscal 2010 GAAP amounts to the
restated 2010 IFRS amounts. </P>
<P align=justify>IFRS generally requires that first-time adopters
retrospectively apply all IFRS standards and interpretations in effect as at the
first annual reporting date. IFRS 1 provides for certain mandatory exceptions
and optional exemptions to this general principle.</P>
<P align=justify>The Company anticipates using the following IFRS 1 optional
exemptions: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>to apply the requirements of IFRS 3, <I>Business Combinations,
  </I>prospectively from the Transition Date;
  <LI>to apply the requirements of IFRS 2, <I>Share-based Payments</I>, to
  equity instruments granted which had not vested as of the Transition Date;
  <LI>to apply the borrowing cost exemption and apply IAS 23, <I>Borrowing
  Costs, </I>prospectively from the Transition Date; and
  <LI>to elect not to comply with IFRIC 1, <I>Changes in Existing
  Decommissioning, Restoration and</I> <I>Similar Liabilities, </I>for changes
  in such liabilities that occurred before the Transition Date. </LI></UL>
<P align=justify>Changes to estimates previously made are not permitted. The
estimates previously made by the Company under GAAP will not be revised for
application of IFRS except where necessary to reflect any changes resulting from
differences in accounting policies. </P>
<P align=center>21 </P>
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style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
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  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify><B><U>Impact of Adoption of IFRS on Financial
Reporting</U></B></P>
<P align=justify>While GAAP is in many respects similar to IFRS, conversion will
result in differences in recognition, measurement, and disclosure in the
financial statements. Based on a high-level scoping assessment, the following
financial statement areas are expected to be significantly impacted:</P>
<P align=justify><B>Property, Plant and Equipment (PP&amp;E) </B></P>
<P align=justify>Under IAS 16, <I>Property, Plant and Equipment,</I> are
recognized initially at cost if it is probable that future economic benefits
associated with the item will flow to the entity and the cost of the item can be
measured reliably. Costs include all expenditures directly attributable to
bringing the asset to the location and condition necessary for it to be capable
of operating in the manner intended by management. There is no specific guidance
in IFRS relating to deferred stripping costs during the production phase.
However, these types of costs do meet the definition of an asset under IAS 16
given that the Company's current accounting policy is to capitalize these costs
since it provides a probable future economic benefit or a betterment (which
implies future economic benefit).</P>
<P align=justify>Under IAS 16, each part of an item of PP&amp;E with a cost that
is significant in relation to the total cost of the item shall be depreciated
separately. In order to meet this requirement, componentization is generally
required. The Company does not currently componentize to the same level as would
be required under IFRS. Componentization would be required only to the extent
that different depreciation methods or rates are appropriate and those
components are material. In addition major inspections or overhaul costs are
identified and accounted for as a separate component under IFRS if that
component is used for more than one period. The Company does not currently have
a policy for major overhaul costs. Practically, this should be factored into the
determination of the components of PP&amp;E.<B> </B></P>
<P align=justify><B>Income Taxes </B></P>
<P align=justify>IAS 12, <I>Income Taxes</I>, requires the recognition of
deferred tax assets or liabilities for all deductible and taxable temporary
differences except for temporary differences created in a transaction that is:
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>not a business combination and</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(b) </TD>
    <TD>
      <P align=justify>at the time of the transaction, affects neither
      accounting profit nor taxable profit.</P></TD></TR></TABLE>
<P align=justify>Under GAAP, the Company recognizes a deferred tax liability on
temporary differences arising on the initial recognition of the Aley mineral
property interest and Oakmont net profit interest (where the accounting basis of
the asset acquired exceeded its tax basis) in a transaction which was not a
business combination and affected neither accounting profit/(loss) nor taxable
profit/(loss).</P>
<P align=justify>As of the Transition Date, the Company will derecognize all
deferred tax liabilities which had been previously recognized on the initial
acquisition of the Aley mineral property interest and the Oakmont net profit
interest since these transactions are deemed not to be a business combination
and affected neither accounting profit/(loss) nor taxable profit/(loss) with a
corresponding reduction in the related asset. </P>
<P align=center>22 </P>
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    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify>In addition, a deferred tax asset is recognized to the extent
it is probable that taxable profit will be available against which the
deductible temporary differences can be utilized. Under GAAP, tax assets are
recognized if it is more likely than not. Probable is not defined in IAS 12.
However, entities have often used a definition of more likely than not similar
to GAAP. However, IAS 12 does not preclude a higher threshold. Accordingly, a
difference will not result as long as the Company uses more likely than not as
its definition of probable.</P>
<P align=justify><B>Impairment of Assets </B></P>
<P align=justify>Per IAS 36, <I>Impairment of Assets</I>, an entity shall assess
at the end of each reporting period whether there is any indication that an
asset may be impaired. If any such indication exists, the entity should estimate
the recoverable amount of the asset. The indicators of impairment are generally
consistent with those of GAAP. An asset should be written down to its
recoverable amount if the recoverable amount is less than its carrying value.
</P>
<P align=justify>The recoverable amount is equal to the higher of the fair value
less cost to sell and its value in use. It is not necessary to determine both if
one indicates no impairment exists. The value in use is based on a discounted
cash flow model. This approach is different than GAAP (i.e. one step model under
IFRS compared to two step model under GAAP). </P>
<P align=justify>To the extent possible, individual assets should be tested for
impairment. However, if it is not possible to determine the recoverable amount
of an individual asset, an entity should determine the recoverable amount of the
Cash Generating Unit (&#147;CGU&#148;) to which the asset belongs. The definition of a CGU
is different from the Canadian definition of an Asset Group.</P>
<P align=justify>In addition, the Company has in the past written down mineral
property amounts for certain mineral properties. Under IAS 36, the Company would
be required to reconsider whether there is any indication that an impairment
loss recognized in a prior period may no longer exist or has decreased on
transition and thereafter on an annual basis. If such indicators exist, a new
recoverable amount should be calculated and all or part of the impairment charge
should be reversed to the extent the recoverable amount exceeds its carrying
value. This is different than GAAP where write ups are not permitted.</P>
<P align=justify><B>Asset Retirement Obligations (&#147;ARO&#148;) </B></P>
<P align=justify>Under IAS 37, <I>Provisions, Contingent Liabilities and
Contingent Assets</I>, an ARO is recognized when there is a legal or
constructive obligation to restore a site for damage that has already occurred,
it is probable a restoration expense will be incurred and the cost can be
estimated reliably. This is different than GAAP where only legal obligations are
considered.</P>
<P align=justify>Cost includes the cost of dismantling and removing items and
restoring the site on which they are located, the obligation for which is
incurred either when the items are acquired or as a consequence of having used
the items during a particular period for purposes other than to produce
inventories. This is different from GAAP where all change in ARO are recognized
as a cost of the related asset. </P>
<P align=center>23 </P>
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  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify>Under IFRS, the amount recognized as a provision shall be the
best estimate of the expenditures required to settle the present obligation.
This is significantly different from GAAP where third party costs are required.
Under IAS 37, the provision would be based on management&#146;s best estimate. This
estimate could be a third party cost if it is management&#146;s intention to hire a
third party to complete the work or an internal estimate of the cost if the
Company intends to use its own equipment and resources to do this work. </P>
<P align=justify>Where the effect of the time value of money is material, the
amount of the provision should be the present value of the expenditures expected
to be required to settle the obligation. This is consistent with GAAP. However,
the discount rate used would be a pre-tax rate specific to the liability rather
than the Company's credit adjusted risk free rate and should not reflect risks
for which the future cash flow estimates have been adjusted. Unwinding of the
discount (i.e. accretion) is included in finance costs.</P>
<P align=justify>The ARO provision should be reviewed at the end of each
reporting period and adjusted to reflect the current best estimate. Changes may
result from changes in the amount or timing of the cash outflows or changes in
discount rates. This is different from GAAP where changes in discount rates
alone would not result in a change in the ARO. Accordingly, the Company will
need to assess the discount rate applicable to the ARO on an ongoing basis. As
the Company has elected to apply the IFRS exemption related to asset retirement
obligations, the Company will not retroactively adjust the obligation on
transition for changes in discount rate that may have occurred from time to
time. </P>
<P align=justify><B>IFRS Impact on Our Organization </B></P>
<P align=justify>The conversion to IFRS will impact the way the Company presents
its financial results. The first financial statements prepared using IFRS (i.e.
interim financial statements for the three months ended March 31, 2011) will be
required to include numerous notes disclosing extensive transitional information
and full disclosure of all new IFRS accounting policies. </P>
<P align=justify>The Company has obtained an understanding of IFRS from
intensive training of its finance personnel. Further, our finance personnel
include employees who have prepared financial statements under IFRS previously.
</P>
<P align=justify>The Company is currently evaluating the impact of the
conversion on its accounting systems and has not determined whether significant
changes to its accounting systems are required. The Company expects to complete
this evaluation by Q4 2010. </P>
<P align=justify>In addition, the Company will evaluate its internal and
disclosure control processes as a result of its conversion to IFRS, assess the
impacts of adopting IFRS on its contractual arrangements to identify any
material compliance issues such as its debt covenants and other commitments and
consider the impacts the transition will have on its internal planning process
and compensation arrangements. The Company expects to complete this evaluation
by Q4 2010. </P>
<P align=justify><B><FONT
color=#0000ff>1.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Instruments and
Other Instruments </FONT></B></P>
<P align=justify>All financial instruments, including derivatives, are included
on the Company&#146;s balance sheet and measured either at fair value or amortized
cost. Changes in fair value are recognized in the statements of </P>
<P align=center>24 </P>
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<TABLE
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  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify>operations or accumulated other comprehensive income, depending
on the classification of the related instruments. </P>
<P align=justify>All financial assets and liabilities are recognized when the
entity becomes a party to the contract creating the asset or liability. All
financial instruments are classified into one of the following categories: held
for trading, held-to-maturity, loans and receivables, available-for-sale
financial assets, or other financial liabilities. Please refer to note 3(d) of
the audited consolidated financial statements for the fiscal year ended December
31, 2009 for the list of the Company&#146;s financial instruments and their
classifications. </P>
<P align=justify>The Company is exposed in varying degrees to financial
instrument related risks. The Company&#146;s board of directors approves and monitors
the risk management processes, including treasury policies, counterparty limits,
controlling and reporting structures. The Company is exposed to the following
risks from its financial instruments: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">a.)</TD>
    <TD>
      <P align=justify><I>Credit Risk </I>&#150; Credit risk is the risk of potential
      loss to the Company if a customer or counterparty to a financial
      instrument fails to meet its contractual obligations. The Company is
      exposed to credit risk from its receivables and marketable securities. In
      general, the Company manages its credit exposure by transacting only with
      reputable counterparties. The Company monitors the financial condition of
      its customers and counterparties to contracts.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>b.</I>)</TD>
    <TD>
      <P align=justify><I>Liquidity Risk </I>&#150; The Company ensures that there is
      sufficient capital in order to meet short term business requirements,
      after taking into account cash flows from operations and the Company&#146;s
      holdings of cash and cash equivalents. The Company believes that these
      sources will be sufficient to cover the likely short and long term cash
      requirements.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>c.</I>)</TD>
    <TD>
      <P align=justify><I>Market Risk </I>&#150; The significant market risk
      exposures to which the Company is exposed are foreign exchange risk,
      interest rate risk and commodity price risk. These are discussed further
      below:</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify><I>i) Foreign exchange risk </I></P>
<P style="MARGIN-LEFT: 10%" align=justify>The Company&#146;s revenues from the
production and sale of copper and molybdenum are denominated in US dollars.
However the Company's operating expenses are primarily incurred in Canadian
dollars and its liabilities are primarily denominated in Canadian dollars. The
results of the Company&#146;s operations are subject to currency transaction risk and
currency translation risk. The operating results and financial position of the
Company are reported in Canadian dollars in the Company&#146;s consolidated financial
statements. The fluctuation of the US dollar in relation to the Canadian dollar
will consequently have an impact upon the profitability of the Company and may
also affect the value of the Company&#146;s assets and the amount of shareholders&#146;
equity. The Company&#146;s revenues and treatment and transportation charges are
substantially denominated in US dollars, whereas all other expenses are
substantially denominated in Canadian dollars. The Company has not entered into
any agreements or purchased any instruments to hedge possible currency risks at
this time.</P>
<P align=center>25 </P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 10%" align=justify><I>ii) Interest rate risk </I></P>
<P style="MARGIN-LEFT: 10%" align=justify>In respect of financial assets, the
Company&#146;s policy is to invest cash at floating rates of interest and cash
reserves are to be maintained in cash equivalents in order to maintain
liquidity, while achieving a satisfactory return for shareholders. Fluctuations
in interest rates impact on the value of cash equivalents and reclamation
deposits.</P>
<P style="MARGIN-LEFT: 10%" align=justify>In respect to financial liabilities,
the long-term equipment loans carry fixed interest rates ranging between 5.349%
and 8.6% per annum, and as such are not subject to fluctuations in interest
rates. The royalty obligation is offset by a promissory note held by the
Company.</P>
<P style="MARGIN-LEFT: 10%" align=justify>iii) <I>Commodity price risk </I></P>
<P style="MARGIN-LEFT: 10%" align=justify>The value of the Company&#146;s mineral
resource properties is related to the price of gold, copper, molybdenum and
niobium and the outlook for these minerals. Gold, copper, molybdenum and niobium
prices historically have fluctuated widely and are affected by numerous factors
outside of the Company's control, including, but not limited to, industrial and
retail demand, central bank lending, forward sales by producers and speculators,
levels of worldwide production, short-term changes in supply and demand because
of speculative hedging activities, and certain other factors related
specifically to gold. </P>
<P style="MARGIN-LEFT: 10%" align=justify>The profitability of the Company's
operations is highly correlated to the market price of copper, molybdenum,
niobium and gold. If metal prices decline for a prolonged period below the cost
of production of the Gibraltar mine, it may not be economically feasible to
continue production. </P>
<P style="MARGIN-LEFT: 10%" align=justify>During fiscal 2009, the Company
introduced a copper hedging program. The program is a part of the Company&#146;s risk
management strategy and was conceived due to the copper price variability
experienced in fiscal 2008 and the perceived need to mitigate the potential
risks to revenue and operating margins.</P>
<P style="MARGIN-LEFT: 10%" align=justify>The strategy used to manage copper
price risk is called a &#147;zero cost cap and collar&#148; whereby the Company buys a
copper &#147;put&#148; option and simultaneously sells an offsetting &#147;call&#148; option. During
the period, the Company purchased a series of put options that sets a minimum
price that the Company will realize for a portion of its copper production
during the first six months of 2011. These put options are only exercised if the
spot price declines below the put strike price of $3.00/lb. The Company will
continue to review its hedge position from time to time in light of prevailing
market and economic conditions. </P>
<P align=justify><B><FONT color=#0000ff>1.15&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Other
MD&amp;A Requirements </FONT></B></P>
<P align=justify>Additional information relating to the Company, including the
Company's Annual Information Form, is available on SEDAR at <U><FONT
color=#0000ff>www.sedar.com</FONT></U>. </P>
<P align=justify><B><FONT color=#0000ff>1.15.1&nbsp;&nbsp; Additional Disclosure
for Venture Issuers without Significant Revenue </FONT></B></P>
<P align=justify>Not applicable. The Company is not a Venture Issuer. </P>
<P align=center>26 </P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify><B><FONT color=#0000ff>1.15.2&nbsp; &nbsp;Disclosure of
Outstanding Share Data </FONT></B></P>
<P align=justify>The following details the share capital structure as at
November 9, 2010, 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>
<DIV>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
      <TD
      width="20%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">Expiry date </TD>
      <TD
      width="20%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">Exercise price </TD>
      <TD
      width="20%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">Number </TD>
      <TD
      width="20%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">Number </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Common shares </TD>
      <TD align=left width="20%" bgColor=#e6efff>&nbsp; </TD>
      <TD align=left width="20%" bgColor=#e6efff>&nbsp; </TD>
      <TD align=left width="20%" bgColor=#e6efff>&nbsp; </TD>
      <TD align=right width="20%" bgColor=#e6efff>187,041,353 </TD>
    </TR>
    <TR>
      <TD>&nbsp; </TD>
      <TD width="20%">&nbsp; </TD>
      <TD width="20%">&nbsp; </TD>
      <TD width="20%">&nbsp; </TD>
      <TD width="20%">&nbsp; </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>Share purchase option </TD>
      <TD align=right width="20%" bgColor=#e6efff>24-Feb-11 </TD>
      <TD align=right width="20%" bgColor=#e6efff>$4.50 </TD>
      <TD align=right width="20%" bgColor=#e6efff>26,000 </TD>
      <TD align=left width="20%" bgColor=#e6efff>&nbsp; </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>&nbsp; </TD>
      <TD align=right width="20%">28-Mar-11 </TD>
      <TD align=right width="20%">$2.18 </TD>
      <TD align=right width="20%">310,000 </TD>
      <TD align=left width="20%">&nbsp; </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>&nbsp; </TD>
      <TD align=right width="20%" bgColor=#e6efff>28-Mar-11 </TD>
      <TD align=right width="20%" bgColor=#e6efff>$2.63 </TD>
      <TD align=right width="20%" bgColor=#e6efff>40,000 </TD>
      <TD align=left width="20%" bgColor=#e6efff>&nbsp; </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>&nbsp; </TD>
      <TD align=right width="20%">22-Aug-11 </TD>
      <TD align=right width="20%">$4.09 </TD>
      <TD align=right width="20%">15,000 </TD>
      <TD align=left width="20%">&nbsp; </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>&nbsp; </TD>
      <TD align=right width="20%" bgColor=#e6efff>10-Dec-11 </TD>
      <TD align=right width="20%" bgColor=#e6efff>$1.00 </TD>
      <TD align=right width="20%" bgColor=#e6efff>1,063,800 </TD>
      <TD align=left width="20%" bgColor=#e6efff>&nbsp; </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>&nbsp; </TD>
      <TD align=right width="20%">24-Feb-12 </TD>
      <TD align=right width="20%">$3.07 </TD>
      <TD align=right width="20%">165,000 </TD>
      <TD align=left width="20%">&nbsp; </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>&nbsp; </TD>
      <TD align=right width="20%" bgColor=#e6efff>24-Feb-12 </TD>
      <TD align=right width="20%" bgColor=#e6efff>$4.50 </TD>
      <TD align=right width="20%" bgColor=#e6efff>135,000 </TD>
      <TD align=left width="20%" bgColor=#e6efff>&nbsp; </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>&nbsp; </TD>
      <TD align=right width="20%">30-Jul-12 </TD>
      <TD align=right width="20%">$2.17 </TD>
      <TD align=right width="20%">26,000 </TD>
      <TD align=left width="20%">&nbsp; </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>&nbsp; </TD>
      <TD align=right width="20%" bgColor=#e6efff>15-Jan-13 </TD>
      <TD align=right width="20%" bgColor=#e6efff>$4.77 </TD>
      <TD align=right width="20%" bgColor=#e6efff>982,000 </TD>
      <TD align=left width="20%" bgColor=#e6efff>&nbsp; </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>&nbsp; </TD>
      <TD align=right width="20%">10-Dec-13 </TD>
      <TD align=right width="20%">$1.00 </TD>
      <TD align=right width="20%">2,546,000 </TD>
      <TD align=left width="20%">&nbsp; </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>&nbsp; </TD>
      <TD align=right width="20%" bgColor=#e6efff>12-Jan-14 </TD>
      <TD align=right width="20%" bgColor=#e6efff>$1.15 </TD>
      <TD align=right width="20%" bgColor=#e6efff>2,000,334 </TD>
      <TD align=left width="20%" bgColor=#e6efff>&nbsp; </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>&nbsp; </TD>
      <TD align=right width="20%">21-Apr-14 </TD>
      <TD align=right width="20%">$1.71 </TD>
      <TD align=right width="20%">1,446,167 </TD>
      <TD align=left width="20%">&nbsp; </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>&nbsp; </TD>
      <TD align=right width="20%" bgColor=#e6efff>2-Dec-14 </TD>
      <TD align=right width="20%" bgColor=#e6efff>$4.14 </TD>
      <TD align=right width="20%" bgColor=#e6efff>150,000 </TD>
      <TD align=left width="20%" bgColor=#e6efff>&nbsp; </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>&nbsp; </TD>
      <TD align=right width="20%">5-Jan-15 </TD>
      <TD align=right width="20%">$4.46 </TD>
      <TD align=right width="20%">1,925,000 </TD>
      <TD align=left width="20%">&nbsp; </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>&nbsp; </TD>
      <TD align=right width="20%" bgColor=#e6efff>15-Jan-15 </TD>
      <TD align=right width="20%" bgColor=#e6efff>$4.77 </TD>
      <TD align=right width="20%" bgColor=#e6efff>150,000 </TD>
      <TD align=left width="20%" bgColor=#e6efff>&nbsp; </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>&nbsp; </TD>
      <TD align=right width="20%">28-Jan-15 </TD>
      <TD align=right width="20%">$5.00 </TD>
      <TD align=right width="20%">210,000 </TD>
      <TD align=left width="20%">&nbsp; </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>&nbsp; </TD>
      <TD align=right width="20%" bgColor=#e6efff>16-Feb-15 </TD>
      <TD align=right width="20%" bgColor=#e6efff>$4.59 </TD>
      <TD align=right width="20%" bgColor=#e6efff>120,000 </TD>
      <TD align=left width="20%" bgColor=#e6efff>&nbsp; </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>&nbsp; </TD>
      <TD align=right width="20%">6-Apr-15 </TD>
      <TD align=right width="20%">$5.39 </TD>
      <TD align=right width="20%">100,000 </TD>
      <TD align=left width="20%">&nbsp; </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#e6efff>&nbsp; </TD>
      <TD align=left width="20%" bgColor=#e6efff>&nbsp; </TD>
      <TD align=left width="20%" bgColor=#e6efff>&nbsp; </TD>
      <TD align=left width="20%" bgColor=#e6efff>&nbsp; </TD>
      <TD align=right width="20%" bgColor=#e6efff>11,410,301 </TD>
    </TR>
    <TR>
      <TD>&nbsp; </TD>
      <TD width="20%">&nbsp; </TD>
      <TD width="20%">&nbsp; </TD>
      <TD width="20%">&nbsp; </TD>
      <TD width="20%">&nbsp; </TD>
    </TR>
    <TR vAlign=top>
      <TD colspan="4" align=left bgColor=#e6efff>Preferred shares redeemable into
        Taseko Mines Limited common shares </TD>
      <TD align=right width="20%" bgColor=#e6efff>12,483,916 </TD>
    </TR>
  </TABLE>
</DIV>
<P align=center>27 </P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify><B><FONT color=#0000ff>1.15.3&nbsp; &nbsp;Internal Controls
over Financial Reporting Procedures </FONT></B></P>
<P align=justify>The Company's management is responsible for establishing and
maintaining adequate internal controls over financial reporting. Any system of
internal controls over financial reporting, no matter how well designed, has
inherent limitations. Therefore, even those systems determined to be effective
can provide only reasonable assurance with respect to financial statement
preparation and presentation. </P>
<P align=justify>On March 31, 2010, the Company entered into a Joint Venture
Formation Agreement (the &#147;JVFA&#148;) with Cariboo Copper Corp. Please refer to note
4 of the accompanying financial statements. In connection with the JVFA, the
Company is updating its internal controls over financial reporting, as
necessary, to reflect additional processes and controls. Other than the joint
venture, there are no significant changes in internal controls over financial
reporting that occurred during the period ended September 30, 2010, that could
have materially affected or are reasonably likely to materially affect the
Company&#146;s internal control over financial reporting. </P>
<P align=justify><B><FONT color=#0000ff>1.15.4&nbsp;&nbsp; Disclosure Controls
and Procedures </FONT></B></P>
<P align=justify>The Company has disclosure controls and procedures in place to
provide reasonable assurance that any information required to be disclosed by
the Company under securities legislation is recorded, processed, summarized and
reported within the applicable time periods and to ensure that required
information is gathered and communicated to the Company's management so that
decisions can be made about timely disclosure of that information. </P>
<P align=justify><B><FONT color=#0000ff>1.15.5&nbsp;&nbsp; Non GAAP Measures
</FONT></B></P>
<P align=justify>This document includes certain non-GAAP performance measures
including &#147;cash production costs&#148; that do not have any standardized meaning
prescribed by GAAP and may not be comparable to similar measures presented by
other companies. The Company believes that these measures are commonly used, in
conjunction with conventional GAAP measures, by certain investors to enhance
their understanding of the Company&#146;s performance. The Company&#146;s use of these
non-GAAP measures is intended to provide additional information that should not
be considered in isolation or as a substitute for performance measures prepared
in accordance with GAAP. The table on the following page provides a
reconciliation of the non-GAAP measures to reported GAAP measures. </P>
<P align=justify><B><FONT color=#0000ff>1.15.6&nbsp; &nbsp;Risk Factors
</FONT></B></P>
<P align=justify>A description of the Company's risks and uncertainties can be
found on pages 33 to 36 of the Company's 2009 Annual MD&amp;A. Risks to the
Company reported in the Company&#146;s 2009 Annual MD&amp;A include risks related to
volatility in metals prices, financing risks, risks associated with the
Company's exploration projects, exchange rate risk, uncertain project
realization values, general mining risks, share price volatility risk,
environmental risks and potential equity dilution risks. These risk factors have
not materially changed since December 31, 2009. </P>
<P align=center>28 </P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD align=center ><IMG
      src="smlogo.jpg" width="325" height="44"
      border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center><B>THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>MANAGEMENT'S
      DISCUSSION AND ANALYSIS</B> </TD>
  </TR>
</TABLE>
<P align=justify><B>Cash Production Cost</B></P>
<P align=justify>The following table is a summary of operating statistics (100%)
for the year to date: </P>
<DIV>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=3 width="100%" border=0>
    <TR vAlign=top bgcolor="#EEEEEE">
      <TD
    align=left
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"><BR></TD>
      <TD width="35%"
    align=right
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"><B>Nine months ending</B> <BR>
        <B>September 30,
      2010</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left><B>GAAP operating costs (in thousands of CAD)</B> </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=right width="35%"><B>$ 89,268</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>Add: inventory adjustments </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=right width="35%">(12,478) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>Less: molybdenum credits </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=right width="35%">(9,463) </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left>Less: silver credits </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="35%">(1,608) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>Net operating costs (in thousands of CAD) </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=right width="35%">65,719 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>Total copper production (in thousands of lbs) </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=right width="35%">68,913 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>Cost per lb (CAD) </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=right width="35%">1.37 </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left>Average exchange rate </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="35%">1.0362 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left><B>Cost per lb (USD)</B> </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=right width="35%"><B>$ 1.33</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>GAAP treatment and transportation costs (in thousands of CAD)
    </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=right width="35%">19,052 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>Treatment and transportation per lb of copper (in CAD) </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=right width="35%">0.32 </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left>Average exchange rate </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="35%">1.0362 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left><B>Treatment and transportation cost per lb (in USD)</B> </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=right width="35%">0.31 </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left><B>Total cash cost per lb of copper (in USD)</B> </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="35%"><B>$ 1.64</B> </TD></TR></TABLE></DIV>
<P align=center>29
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<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>4
<FILENAME>exhibit99-3.htm
<DESCRIPTION>CERTIFICATION
<TEXT>

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   <TITLE>Taseko Mines Limited: Exhibit 99.3 - Filed by newsfilecorp.com</TITLE>
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<!--$$/page=--><A name=page_1></A>
<P align=center>TASEKO MINES LIMITED <BR>Form 52-109F2 <BR>Certification of
interim filings - full certificate </P>
<P align=justify>I, Russell E. Hallbauer, President and Chief Executive Officer
of Taseko Mines Limited, certify the following: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">1. </TD>
    <TD colSpan=3>
      <P align=justify><I>Review: </I>I have reviewed the interim financial
      statements and interim MD&amp;A (together, the &#147;interim filings&#148;) of
      Taseko Mines Limited (the &#147;issuer&#148;) for the interim period ended September
      30, 2010.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">2. </TD>
    <TD colSpan=3>
      <P align=justify><I>No misrepresentations: </I>Based on my knowledge,
      having exercised reasonable diligence, the interim filings do not contain
      any untrue statement of a material fact or omit to state a material fact
      required to be stated or that is necessary to make a statement not
      misleading in light of the circumstances under which it was made, with
      respect to the period covered by the interim filings.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">3. </TD>
    <TD colSpan=3>
      <P align=justify><I>Fair presentation: </I>Based on my knowledge, having
      exercised reasonable diligence, the interim financial statements together
      with the other financial information included in the interim filings
      fairly present in all material respects the financial condition, results
      of operations and cash flows of the issuer, as of the date of and for the
      periods presented in the interim filings.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">4. </TD>
    <TD colSpan=3>
      <P align=justify><I>Responsibility: </I>The issuer&#146;s other certifying
      officer and I are responsible for establishing and maintaining disclosure
      controls and procedures (DC&amp;P) and internal control over financial
      reporting (ICFR), as those terms are defined in National Instrument 52-109
      <I>Certification of Disclosure in Issuers&#146; Annual and Interim Filings,
      </I>for the issuer.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">5. </TD>
    <TD colSpan=3>
      <P align=justify><I>Design: </I>Subject to the limitations, if any,
      described in paragraphs 5.2 and 5.3, the issuer&#146;s other certifying officer
      and I have, as at the end of the period covered by the interim
    filings</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(a) </TD>
    <TD colSpan=2>
      <P align=justify>designed DC&amp;P, or caused it to be designed under our
      supervision, to provide reasonable assurance that</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(i) </TD>
    <TD>
      <P align=justify>material information relating to the issuer is made known
      to us by others, particularly during the period in which the interim
      filings are being prepared; and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(ii) </TD>
    <TD>
      <P align=justify>information required to be disclosed by the issuer in its
      annual filings, interim filings or other reports filed or submitted by it
      under securities legislation is recorded, processed, summarized and
      reported within the time periods specified in securities legislation;
      and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(b) </TD>
    <TD colSpan=2>
      <P align=justify>designed ICFR, or caused it to be designed under our
      supervision, to provide reasonable assurance regarding the reliability of
      financial reporting and the preparation of financial statements for
      external purposes in accordance with the issuer&#146;s GAAP.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  <TR>
    <TD vAlign=top width="5%">5.1 </TD>
    <TD colSpan=3>
      <P align=justify><I>Control framework: </I>The control framework the
      issuer&#146;s other certifying officer and I used to design the issuer&#146;s ICFR
      is <I>the Internal Control &#150; Integrated Framework published by The
      Committee of Sponsoring Organizations of the Treadway
    Commission</I>.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">5.2 </TD>
    <TD colSpan=3>
      <P align=justify><I>ICFR &#150; material weakness relating to design:
      </I>N/A</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">5.3 </TD>
    <TD colSpan=3>
      <P align=justify><I>Limitation on scope of design:
  </I>N/A</P></TD></TR></TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">6. </TD>
    <TD>
      <P align=justify><I>Reporting changes in ICFR: </I>The issuer has
      disclosed in its interim MD&amp;A any change in the issuer&#146;s ICFR that
      occurred during the period beginning on July 1, 2010 and ended on
      September 30, 2010 that has materially affected, or is reasonably likely
      to materially affect, the issuer&#146;s ICFR.</P></TD></TR></TABLE>
<P align=justify>Date: November 10, 2010 </P>
<P align=justify>/s/ Russell Hallbauer <BR>
  _______________________<BR>Russell E.
Hallbauer <BR>President and Chief Executive Officer </P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.4
<SEQUENCE>5
<FILENAME>exhibit99-4.htm
<DESCRIPTION>CERTIFICATION
<TEXT>


<HTML>
<HEAD>
   <TITLE>Taseko Mines Limited: Exhibit 99.4 - Filed by newsfilecorp.com</TITLE>
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<P align=center>TASEKO MINES LIMITED <BR>Form 52-109F2 <BR>Certification of
interim filings - full certificate </P>
<P align=justify>I, Peter C. Mitchell, Chief Financial Officer of Taseko Mines
Limited, certify the following: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">1. </TD>
    <TD colSpan=3>
      <P align=justify><I>Review: </I>I have reviewed the interim financial
      statements and interim MD&amp;A (together, the &#147;interim filings&#148;) of
      Taseko Mines Limited (the &#147;issuer&#148;) for the interim period ended September
      30, 2010.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">2. </TD>
    <TD colSpan=3>
      <P align=justify><I>No misrepresentations: </I>Based on my knowledge,
      having exercised reasonable diligence, the interim filings do not contain
      any untrue statement of a material fact or omit to state a material fact
      required to be stated or that is necessary to make a statement not
      misleading in light of the circumstances under which it was made, with
      respect to the period covered by the interim filings.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">3. </TD>
    <TD colSpan=3>
      <P align=justify><I>Fair presentation: </I>Based on my knowledge, having
      exercised reasonable diligence, the interim financial statements together
      with the other financial information included in the interim filings
      fairly present in all material respects the financial condition, results
      of operations and cash flows of the issuer, as of the date of and for the
      periods presented in the interim filings.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">4. </TD>
    <TD colSpan=3>
      <P align=justify><I>Responsibility: </I>The issuer&#146;s other certifying
      officer and I are responsible for establishing and maintaining disclosure
      controls and procedures (DC&amp;P) and internal control over financial
      reporting (ICFR), as those terms are defined in National Instrument 52-109
      <I>Certification of Disclosure in Issuers&#146; Annual and Interim Filings,
      </I>for the issuer.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">5. </TD>
    <TD colSpan=3>
      <P align=justify><I>Design: </I>Subject to the limitations, if any,
      described in paragraphs 5.2 and 5.3, the issuer&#146;s other certifying officer
      and I have, as at the end of the period covered by the interim
    filings</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(a) </TD>
    <TD colSpan=2>
      <P align=justify>designed DC&amp;P, or caused it to be designed under our
      supervision, to provide reasonable assurance that</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(i) </TD>
    <TD>
      <P align=justify>material information relating to the issuer is made known
      to us by others, particularly during the period in which the interim
      filings are being prepared; and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(ii) </TD>
    <TD>
      <P align=justify>information required to be disclosed by the issuer in its
      annual filings, interim filings or other reports filed or submitted by it
      under securities legislation is recorded, processed, summarized and
      reported within the time periods specified in securities legislation;
      and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(b) </TD>
    <TD colSpan=2>
      <P align=justify>designed ICFR, or caused it to be designed under our
      supervision, to provide reasonable assurance regarding the reliability of
      financial reporting and the preparation of financial statements for
      external purposes in accordance with the issuer&#146;s GAAP.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  <TR>
    <TD vAlign=top width="5%">5.1 </TD>
    <TD colSpan=3>
      <P align=justify><I>Control framework: </I>The control framework the
      issuer&#146;s other certifying officer and I used to design the issuer&#146;s ICFR
      is <I>the Internal Control &#150; Integrated Framework published by The
      Committee of Sponsoring Organizations of the Treadway
    Commission</I>.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">5.2 </TD>
    <TD colSpan=3>
      <P align=justify><I>ICFR &#150; material weakness relating to design:
      </I>N/A</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">5.3 </TD>
    <TD colSpan=3>
      <P align=justify><I>Limitation on scope of design:
  </I>N/A</P></TD></TR></TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">6. </TD>
    <TD>
      <P align=justify><I>Reporting changes in ICFR: </I>The issuer has
      disclosed in its interim MD&amp;A any change in the issuer&#146;s ICFR that
      occurred during the period beginning on July 1, 2010 and ended on
      September 30, 2010 that has materially affected, or is reasonably likely
      to materially affect, the issuer&#146;s ICFR.</P></TD></TR></TABLE>
<P align=justify>Date: November 10, 2010 </P>
<P align=justify>/s/ Peter Mitchell <BR>_______________________<BR>Peter C.
Mitchell <BR>
Chief Financial Officer</P>
<HR align=center width="100%" color=black noShade SIZE=5>

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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
