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<SEC-DOCUMENT>0001062993-10-001066.txt : 20100401
<SEC-HEADER>0001062993-10-001066.hdr.sgml : 20100401
<ACCEPTANCE-DATETIME>20100401141356
ACCESSION NUMBER:		0001062993-10-001066
CONFORMED SUBMISSION TYPE:	40-F
PUBLIC DOCUMENT COUNT:		14
CONFORMED PERIOD OF REPORT:	20091231
FILED AS OF DATE:		20100401
DATE AS OF CHANGE:		20100401

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:		40-F
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31965
		FILM NUMBER:		10723196

	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>40-F
<SEQUENCE>1
<FILENAME>form40f.htm
<DESCRIPTION>ANNUAL REPORT FOR PERIOD ENDED DECEMBER 31, 2009
<TEXT>
<HTML>
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   <TITLE>Taseko Mines Limited: Form 40-F - Filed by newsfilecorp.com</TITLE>
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<BODY style="font-size:10pt;">

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<P align=center><B><FONT size=5>UNITED STATES</FONT><BR></B><B><FONT
size=5>SECURITIES AND EXCHANGE COMMISSION </FONT><BR>WASHINGTON, D.C. 20549
</B></P>
<P align=center><B><FONT size=5>FORM 40-F </FONT></B></P>
<P align=center>[ ] <B>REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE
SECURITIES EXCHANGE ACT OF 1934 </B></P>
<P align=center>OR </P>
<P align=center>[ x ] <B>ANNUAL REPORT PURSUANT TO SECTION 13(a) OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 </B></P>
<P align=center><B>For the fiscal period ended December 31, 2009 </B></P>
<P align=center>Commission File Number: 001-31965</P>
<P align=center><B><U><FONT size=5>TASEKO MINES LIMITED
</FONT></U><BR></B><I>(Exact name of Registrant as specified in its charter)
</I></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=center><U><B>British Columbia Canada </B></U></TD>
    <TD align=center width="33%"><U><B>1040 </B></U></TD>
    <TD align=center width="33%"><U><B>Not Applicable </B></U></TD></TR>
  <TR vAlign=top>
    <TD align=center><I>(Province or Other Jurisdiction of </I></TD>
    <TD align=center width="33%"><I>(Primary Standard Industrial </I></TD>
    <TD align=center width="33%"><I>(I.R.S. Employer </I></TD></TR>
  <TR vAlign=top>
    <TD align=center><I>Incorporation or Organization) </I></TD>
    <TD align=center width="33%"><I>Classification Code) </I></TD>
    <TD align=center width="33%"><I>Identification No.)
</I></TD></TR></TABLE>
<P align=center><B>Suite 300, 905 West Pender Street <BR></B><B>Vancouver,
British Columbia <BR>Canada V6C 1L6 <BR><U>(778) 373-4534
</U><BR></B><I>(Address and telephone number of Registrant&#146;s principal executive
offices) </I></P>
<P align=center><B>Corporation Service Company <BR></B><B>Suite 400, 2711
Centerville Road <BR>Wilmington, Delaware 19808 <BR><U>(800) 927-9800
</U><BR></B><I>(Name, address (including zip code) and telephone number
(including <BR></I><I>area code) of agent for service in the United States)
</I></P>
<P align=center>Securities registered or to be registered pursuant to section
12(b) of the Act:</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=center><U>Title Of Each Class </U></TD>
    <TD align=center width="50%"><U>Name Of Each Exchange On Which Registered
      </U></TD></TR>
  <TR vAlign=top>
    <TD align=center>Common Shares, no par value </TD>
    <TD align=center width="50%">NYSE Amex Equities </TD></TR></TABLE>
<P align=center>Securities registered or to be registered pursuant to Section
12(g) of the Act: <B>None</B></P>
<P align=center>Securities for which there is a reporting obligation pursuant to
Section 15(d) of the Act: <B>None </B></P>
<P align=center>For annual reports, indicate by check mark
  the information filed with this Form: </P>
<P align=center>[ x ] Annual Information Form [ x ] Audited Annual Financial
Statements </P>
<P align=center>Indicate the number of outstanding shares of each of the
Registrant&#146;s classes of capital or common stock as of the close of the period
covered by the annual report: <B>182,924,664 </B><B>Common Shares </B></P>
<P align=center>Indicate by check mark whether the Registrant by filing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934 (the &#147;Exchange Act&#148;). If &#147;yes&#148; is marked, indicate the file number assigned
to the Registrant in connection with such Rule. <BR>Yes [ ] No [ x ] </P>

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noShade SIZE=5>
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<P align=center>- 2 - </P><P align=center>Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Exchange Act during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.<br>
Yes [ x ] No [ ] </P>
<P align=center>Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (&#167;232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the Registrant was required to submit and post such
files).<BR>Yes [ ] No [ x ] </P>
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<P align=center><B>INTRODUCTORY INFORMATION </B></P>
<P align=justify>In this annual report, references to the &#147;Company&#148; or &#147;Taseko&#148;
mean Taseko Mines Limited and its subsidiaries, unless the context suggests
otherwise.</P>
<P align=justify>Unless otherwise indicated, all amounts in this annual report
are in Canadian dollars and all references to &#147;$&#148; mean Canadian dollars.</P>
<P align=center><B>PRINCIPAL DOCUMENTS </B></P>
<P align=justify>The following documents that are filed as exhibits to this
annual report are incorporated by reference herein:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>the Company&#146;s Annual Information Form for the year ended December 31, 2009;
  </P>
  <LI>
  <P>the Company&#146;s Audited Consolidated Financial Statements as at December 31,
  2009 and 2008 and for year ended December 31, 2009, the 15 months ended
  December 31, 2008 and the year ended September 30, 2007; and </P>
  <LI>
  <P>the Company&#146;s Management Discussion and Analysis for the year ended
  December 31, 2009. </P></LI></UL>
<P align=center><B>FORWARD-LOOKING STATEMENTS </B></P>
<P align=justify>This annual report includes or incorporates by reference
certain statements that constitute &#147;forward-looking statements&#148; within the
meaning of the United States <I>Private Securities Litigation Reform Act of
1995</I>. These statements appear in a number of places in this annual report
and documents incorporated by reference herein and include statements regarding
the Company&#146;s intent, belief or current expectations and those of the Company&#146;s
management. These forward-looking statements involve known and unknown risks and
uncertainties that may cause the Company&#146;s actual results, performance or
achievements to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. When used
in this annual report or in documents incorporated by reference in this annual
report, words such as &#147;believe,&#148; &#147;anticipate,&#148; &#147;estimate,&#148; &#147;project,&#148; &#147;intend,&#148;
&#147;expect,&#148; &#147;may,&#148; &#147;will,&#148; &#147;plan,&#148; &#147;should,&#148; &#147;would,&#148; &#147;contemplate,&#148; &#147;possible,&#148;
&#147;attempts,&#148; &#147;seeks&#148; and similar expressions are intended to identify these
forward-looking statements. These forward-looking statements are based on
various factors and were derived utilizing numerous assumptions that could cause
the Company&#146;s actual results to differ materially from those in the
forward-looking statements. Accordingly, readers are cautioned not to put undue
reliance on these forward-looking statements. Forward-looking statements
include, among others, statements regarding: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>the Company&#146;s acquisition plans; </P>
  <LI>
  <P>the Company&#146;s expected financial performance in future periods; </P>
  <LI>
  <P>the Company&#146;s plan of operations, including its plans to carry out
  exploration and development activities; </P>
  <LI>
  <P>the Company&#146;s expectations regarding the results of operations at its
  Gibraltar mine and exploration and development potential of the Company&#146;s
  properties; and </P>
  <LI>
  <P>the Company&#146;s statement of reserves; </P>
  <LI>
  <P>factors relating to the Company&#146;s investment decisions. </P></LI></UL>
<P align=justify>Certain of the assumptions the Company has made include
assumptions regarding, among other things:</P>
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<P align=center>- 2 - </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>future commodity prices; </P>
  <LI>
  <P>the cost of carrying out exploration and development activities on certain
  of the Company&#146;s mineral properties; </P>
  <LI>
  <P>the Company&#146;s ability to obtain and keep the necessary expertise in order
  to carry out its operating, exploration and development activities within the
  planned time periods; and </P>
  <LI>
  <P>the Company&#146;s ability to obtain adequate financing on acceptable terms.
  </P></LI></UL>
<P align=justify>Some of the risks and uncertainties that could cause the
Company&#146;s actual results to differ materially from those expressed in the
Company&#146;s forward-looking statements include: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>the speculative nature of the mining business; </P>
  <LI>
  <P>the exploration and development stages of certain of the Company&#146;s mineral
  projects; </P>
  <LI>
  <P>the Company&#146;s ability to recover the financial statement carrying values of
  its mineral property interests if it ceases to continue on a going concern
  basis; </P>
  <LI>
  <P>loss of the services of any of the Company&#146;s executive officers; </P>
  <LI>
  <P>the volatility of gold, copper and molybdenum prices; </P>
  <LI>
  <P>changes in, or the introduction of, government regulations relating to
  mining, including laws and regulations relating to the protection of the
  environment; </P>
  <LI>
  <P>potential claims by third parties to the Company&#146;s mining properties; </P>
  <LI>
  <P>the Company&#146;s ability to obtain adequate insurance for its operations; </P>
  <LI>
  <P>the highly competitive nature of the Company&#146;s business; </P>
  <LI>
  <P>fluctuations in exchange rates; </P>
  <LI>
  <P>the historical volatility in the Company&#146;s share price; </P>
  <LI>
  <P>potential legal claims relating to the Company&#146;s projects; </P>
  <LI>
  <P>the Company&#146;s ability to obtain adequate financing for the further
  exploration and development of its mineral properties and the potential
  dilution to the Company&#146;s shareholders from any future equity financings; </P>
  <LI>
  <P>the potential dilution to the Company&#146;s shareholders from the exercise of
  outstanding options and warrants to purchase its shares. </P></LI></UL>
<P align=justify>Readers are referred to the section entitled &#147;Risk Factors&#148; in the Company&#146;s Annual Information Form for a more detailed discussion of such risks and other important factors that could cause our actual results to differ materially from those in such forward-looking statements. Except as required by law, the Company assumes no obligation to update or to publicly announce
the results of any change to any of the forward-looking statements contained or
incorporated by reference herein to reflect actual results, future events or
developments, changes in assumptions or changes in other factors affecting the
forward-looking statements.</P>
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<P align=center>- 3 - </P>
<P align=center><B>CAUTIONARY NOTE TO UNITED STATES INVESTORS CONCERNING
<BR>ESTIMATES OF RESERVES AND MEASURED, INDICATED AND INFERRED RESOURCES
</B></P>
<P align=justify>The disclosure in this annual report, including the documents
incorporated by reference herein, uses terms that comply with reporting
standards in Canada and certain estimates are made in accordance with Canadian
National Instrument 43-101 <I>Standards of Disclosure for Mineral Projects</I>
(&#147;NI 43-101&#148;). NI 43-101 is a rule developed by the Canadian Securities
Administrators that establishes standards for all public disclosure an issuer
makes of scientific and technical information concerning mineral projects.
Unless otherwise indicated, all reserve and resource estimates contained in or
incorporated by reference in this annual report have been prepared in accordance
with NI 43-101. These standards differ significantly from the requirements of
the SEC, and reserve and resource information contained herein and incorporated
by reference herein may not be comparable to similar information disclosed by
U.S. companies.</P>
<P align=justify>This annual report includes mineral reserve estimates that have
been calculated in accordance with NI 43-101, as required by Canadian securities
regulatory authorities. For United States reporting purposes, SEC Industry Guide
7 (under the United States Securities Exchange Act of 1934 (the &#147;Exchange
Act&#148;)), as interpreted by Staff of the SEC, applies different standards in order
to classify mineralization as a reserve. As a result, the definitions of proven
and probable reserves used in NI 43-101 differ from the definitions in the SEC
Industry Guide 7. Under SEC standards, mineralization may not be classified as a
"reserve" unless the determination has been made that the mineralization could
be economically and legally produced or extracted at the time the reserve
determination is made. Among other things, all necessary permits would be
required to be in hand or issuance imminent in order to classify mineralized
material as reserves under the SEC standards. Accordingly, mineral reserve
estimates contained in this annual report may not qualify as &#147;reserves&#148; under
SEC standards. </P>
<P align=justify>In addition, this annual report uses the terms &#147;measured
mineral resources&#148;, &#147;indicated mineral resources&#148; and &#147;inferred mineral
resources&#148; to comply with the reporting standards in Canada. We advise investors
that while those terms are recognized and required by Canadian regulations, the
SEC does not recognize them. Investors are cautioned not to assume that any part
or all of the mineral deposits in these categories will ever be converted into
mineral reserves. These terms have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal feasibility.</P>
<P align=justify>Further, &#147;inferred resources&#148; have a great amount of
uncertainty as to their existence and as to whether they can be mined legally or
economically. Therefore, Investors are also cautioned not to assume that all or
any part of the inferred resources exist. In accordance with Canadian rules,
estimates of &#147;inferred mineral resources&#148; cannot form the basis of feasibility
or other economic studies.</P>
<P align=justify>It cannot be assumed that all or any part of &#147;measured mineral
resources&#148;, &#147;indicated mineral resources&#148;, or &#147;inferred mineral resources&#148; will
ever be upgraded to a higher category. Investors are cautioned not to assume
that any part of the reported &#147;measured mineral resources&#148;, &#147;indicated mineral
resources&#148;, or &#147;inferred mineral resources&#148; in this annual report is
economically or legally mineable.</P>
<P align=justify>In addition, disclosure of &#147;contained ounces&#148; in respect of
resources that do not qualify as reserves is permitted disclosure under Canadian
regulations; however, the SEC only permits issuers to report reserves in ounces
and requires other mineralized material to be reported as in place tonnage and
grade without reference to unit measures.</P>
<P align=justify>For the above reasons, information contained in this annual
report and the documents incorporated by reference herein containing
descriptions of our mineral deposits may not be comparable to similar information made public by U.S. companies subject to the
reporting and disclosure requirements under the United States federal securities
laws and the rules and regulations thereunder.</P>
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<P align=center>- 4 - </P>
<P align=center><B>NOTE TO UNITED STATES READERS REGARDING DIFFERENCES
<BR>BETWEEN UNITED STATES AND CANADIAN REPORTING PRACTICES </B></P>
<P align=justify>The Company is permitted to prepare this annual report in
accordance with Canadian disclosure requirements, which are different from those
of the United States. The Company prepares its consolidated financial statements
in accordance with Canadian generally accepted accounting principles (&#147;Canadian
GAAP&#148;) which principles differ in certain respects from those applicable in the
United States (&#147;U.S. GAAP&#148;) and from practices prescribed by the SEC. Therefore,
the Company&#146;s financial statements incorporated by reference in this annual
report may not be comparable to financial statements prepared in accordance with
U.S. GAAP. You should refer to the discussion of the principal differences
between our financial results determined under Canadian GAAP and under U.S. GAAP
that is contained in Note 25 to our audited consolidated financial statements
included herein which provides a reconciliation of the significant measurement
differences between Canadian GAAP and U.S. GAAP.</P>
<P align=center><B>DISCLOSURE CONTROLS AND PROCEDURES </B></P>
<P align=justify>Disclosure controls and procedures are defined in Rule
13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (&#147;Exchange
Act&#148;) to mean controls and other procedures of an issuer that are designed to
ensure that information required to be disclosed by the issuer in the reports
that it files or submits under the Exchange Act is recorded, processed,
summarized and reported, within the time periods specified in the SEC&#146;s rules
and forms and includes, without limitation, controls and procedures designed to
ensure that such information is accumulated and communicated to the issuer&#146;s
management, including its principal executive and principal financial officers,
or persons performing similar functions, as appropriate to allow timely
decisions regarding required disclosure. </P>
<P align=justify>As of the end of the period covered by this report, our
management carried out an evaluation, with the participation of our Chief
Executive Officer and Chief Financial Officer, of the effectiveness of our
disclosure controls and procedures. Based upon that evaluation, our Chief
Executive Officer and Chief Financial Officer concluded that, as of the end of
the period covered by this report, our disclosure controls and procedures, as
defined in Rule 13a-15(e), were effective. </P>
<P align=justify>While our Chief Executive Officer and our Chief Financial
Officer believe that our disclosure controls and procedures provide a reasonable
level of assurance of effectiveness, they do not expect that our disclosure
controls and procedures or internal control over financial reporting will
prevent all errors and fraud. A control system, no matter how well conceived or
operated, can provide only reasonable, not absolute, assurance that the
objectives of the control system will be met.</P>
<P align=center><B>INTERNAL CONTROL OVER FINANCIAL REPORTING </B></P>
<P align=justify>The management of the Company is responsible for establishing
and maintaining adequate internal controls over financial reporting. The
Company&#146;s internal control system was designed to provide reasonable assurance
to the Company&#146;s management and the board of directors regarding the preparation
and fair presentation of published financial statements. Internal control over
financial reporting is defined in Rule 13a-15(f ) and 15d-15(f ) of the Exchange
Act as a process designed by, or under the supervision of, the Company&#146;s
principal executive and principal financial officers and effected by the
Company&#146;s board of directors, management and other personnel, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
generally accepted accounting principles and includes those policies and
procedures that: (1) pertain to the maintenance of records that in reasonable
detail accurately and fairly reflect the transactions and dispositions of the
assets of the Company, (2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in
accordance with GAAP, and that receipts and expenditures of the Company are
being made only in accordance with authorizations of management and directors of
the Company, and (3) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use or disposition of the Company&#146;s
assets that could have a material effect on the financial statements. All
internal control systems, no matter how well designed, have inherent
limitations. Therefore, even those systems determined to be effective can
provide only reasonable assurance with respect to financial statement
preparation and presentation. </P>
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<P align=center>- 5 - </P>
<P align=justify>The Company&#146;s management, with the participation
of the Chief Executive Officer and the Chief Financial Officer, has evaluated
the effectiveness of internal control over financial reporting based on the
framework and criteria established in Internal Control &#150; Integrated Framework,
issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Based on this evaluation, the Company&#146;s management has concluded that the
Company&#146;s internal control over financial reporting, as defined in Rule
13a-15(f), was effective as of December 31, 2009.</P>
<P align=justify>No changes in internal controls over financial reporting
  occurred during the period covered by this report that have materially affected
  or are reasonably likely to materially affect the Company&#146;s internal control
  over financial reporting. </P>
<P align=justify>The Company is required to provide an auditor&#146;s attestation
report on internal control over financial reporting for the fiscal year ended
December 31, 2009. In this report, the Company&#146;s independent registered auditor,
KPMG LLP, must state its opinion as to the effectiveness of the Company&#146;s
internal control over financial reporting for the fiscal year ended December 31,
2009. KPMG LLP has audited the Company&#146;s financial statements included in this
Annual Report on Form 40-F and has issued an attestation report on the Company&#146;s
internal control over financial reporting. The Auditor&#146;s Attestation Report is
included as part of Exhibit 99.6. </P>
<P align=center><B>AUDIT COMMITTEE</B></P>
<P align=justify>The Company&#146;s Board of Directors has established a
separately-designated Audit Committee of the board in accordance with Section
3(a)(58)(A) of the Exchange Act for the purpose of overseeing the Company&#146;s
accounting and financial reporting processes and the audits of the Company&#146;s
annual financial statements. As at the date of this annual report, the Audit
Committee was comprised of David Elliott, Wayne Kirk and Richard Mundie.</P>
<P align=center><B>AUDIT COMMITTEE FINANCIAL EXPERT </B></P>
<P align=justify>The Company&#146;s Board of Directors has determined that David
Elliott, a member of the Audit Committee of the board, is an audit committee
financial expert (as that term is defined in Item 407 of Regulation S-K under
the Exchange Act) and is an independent director under applicable laws and
regulations and the requirements of the NYSE Amex Equities Exchange. </P>
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<P align=center>- 6 - </P>
<P align=center><B>PRINCIPAL ACCOUNTING FEES AND SERVICES </B></P>
<P align=justify>The following table sets forth information regarding amounts
billed by the Company&#146;s independent auditors for each of the Company&#146;s last two
fiscal periods: </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=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>Fiscal year</B> </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%"><B>Year ended</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>(15 months) ended</B></TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Services:</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31, 2009</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31, 2008</B> </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Audit Fees </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;502,100 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;526,500 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Audit Related Fees </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">19,500 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Tax Fees </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>All Other Fees </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%">&#150; </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%">&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Total </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="12%">521,600 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="12%">526,500 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P align=justify><B>Audit Fees </B></P>
<P align=justify>Audit fees are the aggregate fees billed by the Company&#146;s
independent auditor for the audit of the Company&#146;s annual consolidated financial
statements and attestation services that are provided in connection with
statutory and regulatory filings or engagements.</P>
<P align=justify><B>Audit-Related Fees </B></P>
<P align=justify>Audit-related fees are fees charged by the Company&#146;s
independent auditor for assurance and related services that are reasonably
related to the performance of the audit of the Company&#146;s financial statements
and are not reported under "Audit Fees." This category comprises fees billed for
services rendered in connection with the Company&#146;s IFRS conversion project.</P>
<P align=justify><B>Tax Fees </B></P>
<P align=justify>Tax fees are fees for professional services rendered by the
Company&#146;s independent auditors for tax compliance and tax advice on actual or
contemplated transactions.</P>
<P align=justify><B>All Other Fees </B></P>
<P align=justify>All other fees relate to services other than the audit fees,
audit-related fees and tax fees described above.</P>
<P align=justify><B>Audit Committee Pre-Approval Policies </B></P>
<P align=justify>The Company&#146;s management requests approval from the Audit
Committee of the Company&#146;s board for non-audit services from the Company&#146;s
independent auditors. The Audit Committee pre-approves all such services with
set maximum dollar limits. In considering these requests, the Audit Committee
assesses, among other things, whether the non-audit services requested would be
considered prohibited services as contemplated by the SEC, and whether the
non-audit services requested and related fees could impair the independence of
the Company&#146;s auditors. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<P align=center>- 7 - </P>
<P align=center><B>OFF-BALANCE SHEET ARRANGEMENTS </B></P>
<P align=justify>The Company has not entered into any off-balance sheet
arrangements that have or are reasonably likely to have a current or future
effect on the Company&#146;s financial condition, changes in financial condition,
revenues, expenses, results of operations, liquidity, capital expenditures or
capital resources that are material to investors.</P>
<P align=center><B>CONTRACTUAL OBLIGATIONS </B></P>
<P align=justify>The following are the contractual maturities of contractual
obligations (in thousands of Canadian dollars) at December 31, 2009. </P>

<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD rowSpan=2 align=center valign="middle"><B>Contractual obligations</B></TD>
    <TD
    colSpan=5 align=center valign="middle" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;<B>Payments due by period in thousands of Canadian
      dollars</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" align=center valign="middle"><B>Total</B> <BR></TD>
    <TD width="15%" align=center valign="middle"><B>Less than 1</B> <BR>
      <B>year</B> </TD>
    <TD width="15%" align=center valign="middle"><B>1-3 years</B> <BR></TD>
    <TD width="15%" align=center valign="middle"><B>3-5</B> <BR>
      <B>years</B> </TD>
    <TD width="15%" align=center valign="middle"><B>More than 5 years</B> <BR></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Long-Term Debt
      Obligations </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>62,662 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>24,597 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>38,065 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>- </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>-  </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Capital Lease
      Obligations </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>15,636 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>4,543    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>8,481    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>2,612    </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>-  </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Operating Lease
      Obligations </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>- </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>-  </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Purchase
      Obligations </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>- </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>-  </TD></TR>
  <TR vAlign=top>
    <TD align=left>Other Long-Term Liabilities </TD>
    <TD align=right>- </TD>
    <TD align=right>- </TD>
    <TD align=right>- </TD>
    <TD align=right>- </TD>
    <TD align=right>- </TD>
  </TR>


  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B>Total</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>78,298 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>29,140 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>46,546 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>2,612    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp; </TD></TR></TABLE>
<P align=center><B>CODE OF ETHICS </B></P>
<P align=justify>The Company has adopted a Code of Ethics that applies to its
officers, employees and directors and promotes, among other things, honest and
ethical conduct. The code also promotes compliance by the Company&#146;s Chief
Executive Officer, Chief Financial Officer and other senior finance staff with
the Sarbanes-Oxley Act of 2002. Investors may view the Company&#146;s Code of Ethics,
which is included as a part of the Company&#146;s Governance Policies and Procedures
Manual, on the Company&#146;s web site at <U><FONT
color=#0000ff>www.tasekomines.com</FONT></U>.</P>
<P align=center><B>NYSE AMEX EQUITIES CORPORATE GOVERNANCE </B></P>
<P align=justify>The Company&#146;s common shares are listed for trading on the NYSE
Amex Equities Exchange (&#147;NYSE Amex&#148;). Section 110 of the NYSE Amex company guide
permits NYSE Amex to consider the laws, customs and practices of foreign issuers
in relaxing certain NYSE Amex listing criteria, and to grant exemptions from
NYSE Amex listing criteria based on these considerations. A company seeking
relief under these provisions is required to provide written certification from
independent local counsel that the non-complying practice is not prohibited by
home country law. A description of the significant ways in which the Company&#146;s
governance practices differ from those followed by domestic companies pursuant
to NYSE Amex standards is contained on the Company&#146;s website at <U><FONT
color=#0000ff>www.tasekomines.com</FONT></U>. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=center>- 8 - </P>
<P align=justify>Upon listing, the Company received an exemption from its quorum
requirements for meetings of shareholders. Under the NYSE Amex listing
standards, the quorum requirement is a minimum of one third of shareholders
entitled to vote for U.S. domestic companies. The Company does not meet this
requirement and has been granted relief from this listing standard. </P>
<P align=justify>Further, the Company&#146;s board of directors is presently not
comprised of a majority of independent directors, as required by Section 802(a)
of the NYSE Amex Company Guide. The Company has been granted relief from these
requirements by NYSE Amex. </P>
<P align=center><B>UNDERTAKING</B></P>
<P align=justify>The Registrant undertakes to make available, in person or by
telephone, representatives to respond to inquiries made by the Commission staff,
and to furnish promptly, when requested to do so by the Commission staff,
information relating to: the securities registered pursuant to Form 40-F; the
securities in relation to which the obligation to file an annual report on Form
40-F arises; or transactions in said securities.</P>
<P align=center><B>CONSENT TO SERVICE OF PROCESS</B><B><I> </I></B></P>
<P align=justify>The Company previously filed an Appointment of Agent for
Service of Process and Undertaking on Form F-X signed by the Company and its
agent for service of process with respect to the class of securities in relation
to which the obligation to file this annual report arises.</P>
<P align=center><B>SIGNATURES </B></P>
<P align=justify>Pursuant to the requirements of the Exchange Act, the Company
certifies that it meets all of the requirements for filing on Form 40-F and has
duly caused this annual report to be signed on its behalf by the undersigned,
thereunto duly authorized.</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 >Date: March 31, 2010. </TD>
    <TD align=left width="50%" colSpan=2><B>TASEKO MINES LIMITED</B> </TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="5%" >&nbsp; </TD>
    <TD width="45%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="5%" >&nbsp; </TD>
    <TD align=left width="45%"></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="5%" >&nbsp; </TD>
    <TD width="45%"><EM>/s/ Peter Mitchell</EM> </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="5%" >By: </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="45%"></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="5%" >&nbsp; </TD>
    <TD align=left width="45%">Peter Mitchell </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="5%" >&nbsp; </TD>
    <TD align=left width="45%"><B>Chief Financial Officer</B>
</TD></TR></TABLE><BR>
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<P align=center><B>EXHIBIT INDEX </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=center ><B>Exhibit</B> </TD>
    <TD align=left width="90%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=center ><B>Number</B> </TD>
    <TD align=center width="90%"><B>Exhibit Description</B> </TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="90%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee ><a href="exhibit99-1.htm">99.1 </a></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify><a href="exhibit99-1.htm">Certification of Chief Executive Officer pursuant to Rule
      13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the
  Sarbanes-Oxley Act of 2002 </a></P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="90%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee ><a href="exhibit99-2.htm">99.2 </a></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify><a href="exhibit99-2.htm">Certification of Chief Financial Officer pursuant to Rule
      13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the
      Sarbanes-Oxley Act of 2002 </a></P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="90%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee ><a href="exhibit99-3.htm">99.3 </a></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify><a href="exhibit99-3.htm">Certification of Chief Executive Officer pursuant to Rule
      13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted
      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 </a></P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="90%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee ><a href="exhibit99-4.htm">99.4 </a></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify><a href="exhibit99-4.htm">Certification of Chief Financial Officer pursuant to Rule
      13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted
      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 </a></P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="90%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee ><a href="exhibit99-5.htm">99.5 </a></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify><a href="exhibit99-5.htm">Annual Information Form of the Company for the year ended
      December 31, 2009 </a></P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="90%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee ><a href="exhibit99-6.htm">99.6 </a></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify><a href="exhibit99-6.htm">Audited consolidated balance sheets as at December 31,
      2009 and 2008 and the consolidated statements of operations and
      comprehensive income (loss), shareholders&#146; equity, and cash flows the year
      ended December 31, 2009, the fifteen months ended December 31, 2008 and
      the year ended September 30, 2007, including the notes thereto and report
      of our independent registered public accounting firm thereon </a></P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="90%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee ><a href="exhibit99-7.htm">99.7 </a></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify><a href="exhibit99-7.htm">Management&#146;s discussion and analysis of financial
      condition and results of operations for the year ended December 31, 2009 </a></P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="90%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee ><a href="exhibit99-8.htm">99.8 </a></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify><a href="exhibit99-8.htm">Consent of KPMG LLP </a></P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="90%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee ><a href="exhibit99-9.htm">99.9 </a></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
<P align=justify><a href="exhibit99-9.htm">Consent of Scott Jones, P. Eng.</a></P></TD></TR></TABLE>
<BR>
<HR align=center width="100%" color=black noShade SIZE=5>

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</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exhibit99-1.htm
<DESCRIPTION>SECTION 302 CERTIFICATION - CEO
<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">
<!--$$/page=--><A name=page_1></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=center><B>CERTIFICATION</B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>PURSUANT TO SECTION 302</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>OF THE SARBANES-OXLEY ACT OF 2002</B>
</TD></TR></TABLE>
<P align=justify>I, Russell E. Hallbauer, certify that:</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=2>
      <P align=justify>I have reviewed this annual report on Form 40-F of Taseko
      Mines Limited;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(2) </TD>
    <TD colSpan=2>
      <P align=justify>Based on my knowledge, this report does not contain any
      untrue statement of a material fact or omit to state a material fact
      necessary to make the statements made, in light of the circumstances under
      which such statements were made, not misleading with respect to the period
      covered by this report;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(3) </TD>
    <TD colSpan=2>
      <P align=justify>Based on my knowledge, the financial statements, and
      other financial information included in this report, fairly present in all
      material respects the financial condition, results of operations and cash
      flows of the issuer as of, and for, the periods presented in this
      report;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(4) </TD>
    <TD colSpan=2>
      <P align=justify>The issuer&#146;s other certifying officer and I are
      responsible for establishing and maintaining disclosure controls and
      procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
      internal control over financial reporting (as defined in Exchange Act
      Rules 13a-15(f) and 15d-15(f)) for the issuer and have:</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%">(a) </TD>
    <TD>
      <P align=justify>designed such disclosure controls and procedures, or
      caused such disclosure controls and procedures to be designed under our
      supervision, to ensure that material information relating to the issuer,
      including its consolidated subsidiaries, is made known to us by others
      within those entities, particularly during the period in which this report
      is being prepared;</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%">(b) </TD>
    <TD>
      <P align=justify>designed such internal control over financial reporting,
      or caused such internal control over financial reporting 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 generally accepted
      accounting principles;</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%">(c) </TD>
    <TD>
      <P align=justify>evaluated the effectiveness of the issuer&#146;s disclosure
      controls and procedures and presented in this report our conclusions about
      the effectiveness of the disclosure controls and procedures, as of the end
      of the period covered by this report based on such evaluation;
  and</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%">(d) </TD>
    <TD>
      <P align=justify>disclosed in this report any change in the issuer&#146;s
      internal control over financial reporting that occurred during the period
      covered by the annual report that has materially affected, or is
      reasonably likely to materially affect, the issuer&#146;s internal control over
      financial reporting; and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  <TR>
    <TD vAlign=top width="5%">(5) </TD>
    <TD colSpan=2>
      <P align=justify>The issuer&#146;s other certifying officer and I have
      disclosed, based on our most recent evaluation of internal control over
      financial reporting, to the issuer&#146;s auditors and the audit committee of
      the issuer&#146;s board of directors (or persons performing the equivalent
      functions):</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%">(a) </TD>
    <TD>
      <P align=justify>all significant deficiencies and material weaknesses in
      the design or operation of internal control over financial reporting which
      are reasonably likely to adversely affect the issuer&#146;s ability to record,
      process, summarize and report financial information; and</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%">(b) </TD>
    <TD>
      <P align=justify>any fraud, whether or not material, that involves
      management or other employees who have a significant role in the issuer&#146;s
      internal control over financial reporting.</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 align=left >Date: </TD>
    <TD align=left width="45%" >March 31, 2010 </TD>
    <TD align=left width="49%" >&nbsp;</TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="45%" >&nbsp;</TD>
    <TD align=left width="49%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >By: </TD>
    <TD align=left width="45%" >/s/ R. Hallbauer </TD>
    <TD align=left width="49%" >&nbsp;</TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="45%"
    >&nbsp;</TD>
    <TD align=left width="49%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Name: </TD>
    <TD align=left width="45%" >Russell E. Hallbauer </TD>
    <TD align=left width="49%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Title: </TD>
    <TD align=left width="45%" >Chief Executive Officer </TD>
    <TD align=left width="49%" >&nbsp;</TD></TR></TABLE>
<BR>
<HR align=center width="100%" color=black noShade SIZE=5>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>exhibit99-2.htm
<DESCRIPTION>SECTION 302 CERTIFICATION - CFO
<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">
<!--$$/page=--><A name=page_1></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=center><B>CERTIFICATION</B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>PURSUANT TO SECTION 302</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>OF THE SARBANES-OXLEY ACT OF 2002</B>
</TD></TR></TABLE>
<P align=justify>I, Peter C. Mitchell, certify that:</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=2>
      <P align=justify>I have reviewed this annual report on Form 40-F of Taseko
      Mines Limited;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(2) </TD>
    <TD colSpan=2>
      <P align=justify>Based on my knowledge, this report does not contain any
      untrue statement of a material fact or omit to state a material fact
      necessary to make the statements made, in light of the circumstances under
      which such statements were made, not misleading with respect to the period
      covered by this report;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(3) </TD>
    <TD colSpan=2>
      <P align=justify>Based on my knowledge, the financial statements, and
      other financial information included in this report, fairly present in all
      material respects the financial condition, results of operations and cash
      flows of the issuer as of, and for, the periods presented in this
      report;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(4) </TD>
    <TD colSpan=2>
      <P align=justify>The issuer&#146;s other certifying officer and I are
      responsible for establishing and maintaining disclosure controls and
      procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
      internal control over financial reporting (as defined in Exchange Act
      Rules 13a-15(f) and 15d-15(f)) for the issuer and have:</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%">(a) </TD>
    <TD>
      <P align=justify>designed such disclosure controls and procedures, or
      caused such disclosure controls and procedures to be designed under our
      supervision, to ensure that material information relating to the issuer,
      including its consolidated subsidiaries, is made known to us by others
      within those entities, particularly during the period in which this report
      is being prepared;</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%">(b) </TD>
    <TD>
      <P align=justify>designed such internal control over financial reporting,
      or caused such internal control over financial reporting 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 generally accepted
      accounting principles;</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%">(c) </TD>
    <TD>
      <P align=justify>evaluated the effectiveness of the issuer&#146;s disclosure
      controls and procedures and presented in this report our conclusions about
      the effectiveness of the disclosure controls and procedures, as of the end
      of the period covered by this report based on such evaluation;
  and</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%">(d) </TD>
    <TD>
      <P align=justify>disclosed in this report any change in the issuer&#146;s
      internal control over financial reporting that occurred during the period
      covered by the annual report that has materially affected, or is
      reasonably likely to materially affect, the issuer&#146;s internal control over
      financial reporting; and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  <TR>
    <TD vAlign=top width="5%">(5) </TD>
    <TD colSpan=2>
      <P align=justify>The issuer&#146;s other certifying officer and I have
      disclosed, based on our most recent evaluation of internal control over
      financial reporting, to the issuer&#146;s auditors and the audit committee of
      the issuer&#146;s board of directors (or persons performing the equivalent
      functions):</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%">(a) </TD>
    <TD>
      <P align=justify>all significant deficiencies and material weaknesses in
      the design or operation of internal control over financial reporting which
      are reasonably likely to adversely affect the issuer&#146;s ability to record,
      process, summarize and report financial information; and</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%">(b) </TD>
    <TD>
      <P align=justify>any fraud, whether or not material, that involves
      management or other employees who have a significant role in the issuer&#146;s
      internal control over financial reporting.</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 align=left >Date: </TD>
    <TD align=left width="45%" >March 31, 2010 </TD>
    <TD align=left width="49%" >&nbsp;</TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="45%" >&nbsp;</TD>
    <TD align=left width="49%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >By: </TD>
    <TD align=left width="45%" >/s/ P. Mitchell </TD>
    <TD align=left width="49%" >&nbsp;</TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="45%"
    >&nbsp;</TD>
    <TD align=left width="49%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Name: </TD>
    <TD align=left width="45%" >Peter C. Mitchell </TD>
    <TD align=left width="49%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Title: </TD>
    <TD align=left width="45%" >Chief Financial Officer </TD>
    <TD align=left width="49%" >&nbsp;</TD></TR></TABLE>
<BR>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>4
<FILENAME>exhibit99-3.htm
<DESCRIPTION>SECTION 906 CERTIFICATION - CEO
<TEXT>
<HTML>
<HEAD>
   <TITLE>Taseko Mines Limited: Exhibit 99.3 - 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">
<!--$$/page=--><A name=page_1></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=center><B>CERTIFICATION</B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>PURSUANT TO</B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>18 U.S.C. SECTION 1350,</B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>AS ADOPTED PURSUANT TO</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</B>
  </TD></TR></TABLE>
<P align=justify>I, Russell E. Hallbauer, Chief Executive Officer of Taseko
Mines Limited (the &#147;Company&#148;), hereby certify pursuant to 18 U.S.C. Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002,
that, to the best of my knowledge:</P>
<P style="MARGIN-LEFT: 5%" align=justify>(1) The Annual Report on Form 40-F of
the Company for the fiscal year ended December 31, 2009 (the &#147;Annual Report&#148;)
fully complies with the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934, as amended; and </P>
<P style="MARGIN-LEFT: 5%" align=justify>(2) The information contained in the
Annual Report fairly presents, in all material respects, the financial condition
and results of operations of the Company.</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="5%" >By: </TD>
    <TD align=left width="43%">/s/ R. Hallbauer </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="43%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD align=left width="5%" >Name: </TD>
    <TD align=left width="43%">Russell E. Hallbauer </TD></TR>
  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD align=left width="5%" >Title: </TD>
    <TD align=left width="43%">Chief Executive Officer </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="43%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD align=left width="5%" >Date: </TD>
    <TD align=left width="43%">March 31, 2010 </TD></TR></TABLE>
<P align=justify><I>This written statement is being furnished to the Securities
and Exchange Commission as an exhibit to the Company&#146;s Annual Report on Form
40-F. A signed original of this statement has been provided to the Company and
will be retained by the Company and furnished to the Securities and Exchange
Commission or its staff upon request. </I></P>
<P align=justify><I>This certification accompanies this Annual Report on Form
40-F pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not,
except to the extent required by such Act, be deemed filed by the Company for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the
&#147;Exchange Act&#148;). Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933, as amended, or the
Exchange Act, except to the extent that the Company specifically incorporates it
by reference.</I></P>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.4
<SEQUENCE>5
<FILENAME>exhibit99-4.htm
<DESCRIPTION>SECTION 906 CERTIFICATION - CFO
<TEXT>
<HTML>
<HEAD>
   <TITLE>Taseko Mines Limited: Exhibit 99.4 - 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">
<!--$$/page=--><A name=page_1></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=center><B>CERTIFICATION</B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>PURSUANT TO</B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>18 U.S.C. SECTION 1350,</B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>AS ADOPTED PURSUANT TO</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</B>
  </TD></TR></TABLE>
<P align=justify>I, Peter C. Mitchell, Chief Financial Officer of Taseko Mines
Limited (the &#147;Company&#148;), hereby certify pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the
best of my knowledge:</P>
<P style="MARGIN-LEFT: 5%" align=justify>(1) The Annual Report on Form 40-F of
the Company for the fiscal year ended December 31, 2009 (the &#147;Annual Report&#148;)
fully complies with the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934, as amended; and </P>
<P style="MARGIN-LEFT: 5%" align=justify>(2) The information contained in the
Annual Report fairly presents, in all material respects, the financial condition
and results of operations of the Company.</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="5%" >By: </TD>
    <TD align=left width="43%">/s/ P. Mitchell </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="43%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD align=left width="5%" >Name: </TD>
    <TD align=left width="43%">Peter C. Mitchell </TD></TR>
  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD align=left width="5%" >Title: </TD>
    <TD align=left width="43%">Chief Financial Officer </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="43%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD align=left width="5%" >Date: </TD>
    <TD align=left width="43%">March 31, 2010 </TD></TR></TABLE>
<P align=justify><I>This written statement is being furnished to the Securities
and Exchange Commission as an exhibit to the Company&#146;s Annual Report on Form
40-F. A signed original of this statement has been provided to the Company and
will be retained by the Company and furnished to the Securities and Exchange
Commission or its staff upon request. </I></P>
<P align=justify><I>This certification accompanies this Annual Report on Form
40-F pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not,
except to the extent required by such Act, be deemed filed by the Company for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the
&#147;Exchange Act&#148;). Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933, as amended, or the
Exchange Act, except to the extent that the Company specifically incorporates it
by reference.</I></P>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.5
<SEQUENCE>6
<FILENAME>exhibit99-5.htm
<DESCRIPTION>ANNUAL INFORMATION FORM
<TEXT>
<HTML>
<HEAD>
   <TITLE>Taseko Mines Limited: Exhibit 99.5 - Filed by newsfilecorp.com</TITLE>
   <META name="HandheldFriendly" content="true">
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<BODY style="font-size:10pt;">

<HR noshade align="center" width=100% size=3 color="black">
<!--$$/page=--><A name=page_1></A>
<P align=center><IMG
src="tasekologo.jpg"
border=0></P> <BR>
<P align=center><B>ANNUAL INFORMATION FORM</B></P>
<P align=center><B>FOR THE FISCAL YEAR <BR>ENDED DECEMBER 31, 2009</B></P>
<P align=center><B>AS AT MARCH 31, 2010</B></P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_2></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 bgColor=#eeeeee colSpan=2><B>ITEM
      2.</B> </TD>
    <TD width="85%" align=left bgColor=#eeeeee><B>TABLE OF
      CONTENTS</B> </TD>
    <TD width="5%" align=right bgColor=#eeeeee>&nbsp; </TD>
  </TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp;</TD>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD align=right bgColor=#ffffff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_2"><B>ITEM
      2.</B> </A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_2"><B>TABLE
      OF CONTENTS</B> </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_2"><B>1</B>
      </A></TD>
  </TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp;</TD>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD align=right bgColor=#ffffff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_6"><B>ITEM
      3.</B> </A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_6"><B>CORPORATE
      STRUCTURE</B> </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_6"><B>5</B>
      </A></TD>
  </TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp;</TD>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD align=right bgColor=#ffffff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_7"><B>ITEM
      4.</B> </A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_7"><B>GENERAL
      DEVELOPMENT OF</B> <STRONG>THE BUSINESS</STRONG> </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_7"><B>6</B>
      </A></TD>
  </TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp;</TD>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD align=right bgColor=#ffffff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_10"><B>ITEM
      5.</B> </A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_10"><B>DESCRIPTION
      OF BUSINESS</B> </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_10"><B>9</B>
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>&nbsp;</TD>
    <TD align=left bgColor=#ffffff colSpan=2><A
      href="#page_11">THE
      GIBRALTAR MINE </A></TD>
    <TD align=right bgColor=#ffffff><A
      href="#page_11">10
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_20">THE
      PROSPERITY PROJECT </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_20">19
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>&nbsp;</TD>
    <TD align=left bgColor=#ffffff colSpan=2><A
      href="#page_28">NON
      MATERIAL PROJECTS </A></TD>
    <TD align=right bgColor=#ffffff><A
      href="#page_28">27
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_31">RISK
      FACTORS </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_31">30
      </A></TD>
  </TR>
  <TR>
    <TD align=left bgColor=#ffffff>&nbsp;</TD>
    <TD align=left bgColor=#ffffff colSpan=2>&nbsp;</TD>
    <TD align=right bgColor=#ffffff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_34"><B>ITEM
      6.</B> </A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_34"><B>DIVIDENDS</B>
      </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_34"><B>33</B>
      </A></TD>
  </TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp;</TD>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD align=right bgColor=#ffffff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colspan="2"><A
      href="#page_34"><B>ITEM
      7.</B> </A></TD>

    <TD align=left bgColor=#eeeeee><A
      href="#page_34"><B>DESCRIPTION
      OF CAPITAL</B> <STRONG>STRUCTURE</STRONG> </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_34"><B>33</B>
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>&nbsp;</TD>
    <TD align=left bgColor=#ffffff colSpan=2><A
      href="#page_34">COMMON
      SHARES </A></TD>
    <TD align=right bgColor=#ffffff><A
      href="#page_34">33
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee></TD>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_34">GIBRALTAR
      TRACKING PREFERRED SHARES (EXCHANGEABLE FOR TASEKO COMMON SHARES) </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_34">33
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>&nbsp;</TD>
    <TD align=left bgColor=#ffffff colSpan=2><A
      href="#page_35">CONVERTIBLE
      BONDS </A></TD>
    <TD align=right bgColor=#ffffff><A
      href="#page_35">34
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_35">CREDIT
      SUISSE TERM FACILITY </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_35">34
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>&nbsp;</TD>
    <TD align=left bgColor=#ffffff colSpan=2><A
      href="#page_36">LONG-TERM
      EQUIPMENT LOAN </A></TD>
    <TD align=right bgColor=#ffffff><A
      href="#page_36">35
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_36">EQUITY
      FINANCINGS </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_36">35
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>&nbsp;</TD>
    <TD align=left bgColor=#ffffff colSpan=2><A
      href="#page_36">OTHER
      FINANCINGS </A></TD>
    <TD align=right bgColor=#ffffff><A
      href="#page_36">35
      </A></TD>
  </TR>
  <TR>
    <TD align=left bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left bgColor=#eeeeee colSpan=2>&nbsp;</TD>
    <TD align=right bgColor=#eeeeee>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff colSpan=2><A
      href="#page_37"><B>ITEM
      8.</B> </A></TD>
    <TD align=left bgColor=#ffffff><A
      href="#page_37"><B>MARKET
      FOR SECURITIES</B> </A></TD>
    <TD align=right bgColor=#ffffff><A
      href="#page_37"><B>36</B>
      </A></TD>
  </TR>
  <TR>
    <TD bgColor=#eeeeee>&nbsp;</TD>
    <TD bgColor=#eeeeee>&nbsp; </TD>
    <TD bgColor=#eeeeee>&nbsp; </TD>
    <TD align=right bgColor=#eeeeee>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff colSpan=2><A
      href="#page_38"><STRONG>ITEM
      9.</STRONG> </A></TD>
    <TD align=left bgColor=#ffffff><A
      href="#page_38"><b>ESCROWED SECURITIES AND SECURITIES SUBJECT TO CONTRACTUAL RESTRICTIONS ON ESCROW</b></A>	</TD>
    <TD align=right bgColor=#ffffff><A
      href="#page_38"><B>37</B>
    </A></TD>
  </TR>
  <TR>
    <TD bgColor=#eeeeee>&nbsp;</TD>
    <TD bgColor=#eeeeee>&nbsp; </TD>
    <TD bgColor=#eeeeee>&nbsp; </TD>
    <TD align=right bgColor=#eeeeee>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff colSpan=2><A
      href="#page_38"><B>ITEM
      10.</B> </A></TD>
    <TD align=left bgColor=#ffffff><A
      href="#page_38"><B>DIRECTORS
      AND OFFICERS</B> </A></TD>
    <TD align=right bgColor=#ffffff><A
      href="#page_38"><B>37</B>
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee></TD>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_39">PRINCIPAL
      OCCUPATIONS AND OTHER INFORMATION ABOUT TASEKO&#146;S DIRECTORS AND MANAGEMENT
      </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_39">38
      </A></TD>
  </TR>
  <TR>
    <TD align=left bgColor=#ffffff>&nbsp;</TD>
    <TD align=left bgColor=#ffffff colSpan=2>&nbsp;</TD>
    <TD align=right bgColor=#ffffff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_47"><B>ITEM
      11.</B> </A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_47"><B>PROMOTERS</B>
      </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_47"><B>46</B>
      </A></TD>
  </TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp;</TD>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD align=right bgColor=#ffffff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_48"><B>ITEM
      12.</B> </A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_48"><B>LEGAL
      PROCEEDINGS AND</B> <STRONG>REGULATORY ACTIONS</STRONG> </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_48"><B>47</B>
      </A></TD>
  </TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp;</TD>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD align=right bgColor=#ffffff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_48"><STRONG>ITEM
      13.</STRONG> </A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_48"><STRONG>INTEREST
      OF MANAGEMENT AND
      OTHERS IN MATERIAL</STRONG> <STRONG>TRANSACTIONS</STRONG></A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_48"><B>47</B>
    </A></TD>
  </TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp;</TD>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD align=right bgColor=#ffffff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_48"><B>ITEM
      14.</B> </A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_48"><B>TRANSFER
      AGENT AND</B> <STRONG>REGISTRAR</STRONG> </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_48"><B>47</B>
      </A></TD>
  </TR>
  <TR>
    <TD bgColor=#ffffff colSpan=2>&nbsp;</TD>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD align=right bgColor=#ffffff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_48"><B>ITEM
      15.</B> </A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_48"><B>MATERIAL
      CONTRACTS</B> </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_48"><B>47</B>
      </A></TD>
  </TR>
  <TR>
    <TD bgColor=#ffffff colSpan=2>&nbsp;</TD>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD align=right bgColor=#ffffff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_49"><B>ITEM
      16.</B> </A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_49"><B>INTERESTS
      OF EXPERTS</B> </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_49"><B>48</B>
      </A></TD>
  </TR>
  <TR>
    <TD bgColor=#ffffff colSpan=2>&nbsp;</TD>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD align=right bgColor=#ffffff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_50"><B>ITEM
      17.</B> </A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_50"><B>ADDITIONAL
      INFORMATION</B> </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_50"><B>49</B>
      </A></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 bgColor=#eeeeee colSpan=2><A
      href="#page_50"><STRONG>ITEM
      18. </STRONG></A></TD>
    <TD width="85%" align=left bgColor=#eeeeee><A
      href="#page_50"><B>DISCLOSURE
    FOR COMPANIES</B> <B>NOT SENDING INFORMATION CIRCULARS</B> </A></TD>
    <TD width="5%" align=right bgColor=#eeeeee><A
      href="#page_50"><STRONG>49</STRONG>
    </A></TD>
  </TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp;</TD>
    <TD bgColor=#ffffff>&nbsp;</TD>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD align=right bgColor=#ffffff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_50"><STRONG>ITEM
      19. </STRONG></A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_50"><B>CONTROLS
    AND PROCEDURES</B> </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_50"><B>49</B>
    </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff></TD>
    <TD align=left bgColor=#ffffff colSpan=2><A
      href="#page_50">INTERNAL
    CONTROLS OVER FINANCIAL REPORTING PROCEDURES </A></TD>
    <TD align=right bgColor=#ffffff><A
      href="#page_50">49
    </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_51">DISCLOSURE
    CONTROLS AND PROCEDURES </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_51">50
    </A></TD>
  </TR>
  <TR>
    <TD align=left bgColor=#ffffff>&nbsp;</TD>
    <TD align=left bgColor=#ffffff colSpan=2>&nbsp;</TD>
    <TD align=right bgColor=#ffffff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_51"><STRONG>ITEM
      20. </STRONG></A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_51"><B>AUDIT
    COMMITTEE</B> </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_51"><B>50</B>
    </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff></TD>
    <TD align=left bgColor=#ffffff colSpan=2><A
      href="#page_51">AUDIT
    COMMITTEE CHARTER AND COMPOSITION OF AUDIT COMMITTEE </A></TD>
    <TD align=right bgColor=#ffffff><A
      href="#page_51">50
    </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_52">RELEVANT
    EDUCATION AND EXPERIENCE </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_52">51
    </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>&nbsp;</TD>
    <TD align=left bgColor=#ffffff colSpan=2><A
      href="#page_52">RELIANCE
    ON CERTAIN EXEMPTIONS </A></TD>
    <TD align=right bgColor=#ffffff><A
      href="#page_52">51
    </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee></TD>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_52">PRE-APPROVAL
    POLICIES AND PROCEDURES FOR NON-AUDIT SERVICES </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_52">51
    </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>&nbsp;</TD>
    <TD align=left bgColor=#ffffff colSpan=2><A
      href="#page_52">CODE
    OF ETHICS </A></TD>
    <TD align=right bgColor=#ffffff><A
      href="#page_52">51
    </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_52">PRINCIPAL
    ACCOUNTANT FEES AND SERVICES </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_52">51
    </A></TD>
  </TR>
  <TR>
    <TD align=left bgColor=#ffffff>&nbsp;</TD>
    <TD align=left bgColor=#ffffff colSpan=2>&nbsp;</TD>
    <TD align=right bgColor=#ffffff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_53"><STRONG>ITEM
      21. </STRONG></A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_53"><B>OFF
    BALANCE SHEET</B> <B>ARRANGEMENTS</B> </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_53"><B>52</B>
    </A></TD>
  </TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp;</TD>
    <TD bgColor=#ffffff>&nbsp;</TD>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD align=right bgColor=#ffffff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2><STRONG>FIGURES</STRONG> </TD>
    <TD align=left bgColor=#eeeeee></TD>
    <TD align=right bgColor=#eeeeee>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff colSpan=2><A
      href="#page_11">FIGURE
      1: </A></TD>
    <TD align=left bgColor=#ffffff><A
      href="#page_11">LOCATION
    OF THE TASEKO&#146;S PROPERTIES </A></TD>
    <TD align=right bgColor=#ffffff><A
      href="#page_11">10
    </A></TD>
  </TR>
  <TR>
    <TD bgColor=#eeeeee>&nbsp;</TD>
    <TD bgColor=#eeeeee>&nbsp;</TD>
    <TD bgColor=#eeeeee>&nbsp;</TD>
    <TD align=right bgColor=#eeeeee>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff colSpan=2><STRONG>TABLES</STRONG> </TD>
    <TD align=left bgColor=#ffffff></TD>
    <TD align=right bgColor=#ffffff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_12">TABLE
      1: </A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_12">MINERAL
    TENURES &#150; GIBRALTAR MINE </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_12">11
    </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff colSpan=2><A
      href="#page_17">TABLE
      2: </A></TD>
    <TD align=left bgColor=#ffffff><A
      href="#page_17">GIBRALTAR
    MINE MINERAL RESERVES AT 0.20% COPPER CUT-OFF </A></TD>
    <TD align=right bgColor=#ffffff><A
      href="#page_17">16
    </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_17">TABLE
      3: </A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_17">GIBRALTAR
    MINE MINERAL RESOURCES AT 0.20% COPPER CUT-OFF </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_17">16
    </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff colSpan=2><A
      href="#page_18">TABLE
      4: </A></TD>
    <TD align=left bgColor=#ffffff><A
      href="#page_18">GIBRALTAR
      MINE &#150; OXIDE MINERAL RESERVES AS OF DECEMBER 31, 2009 AT 0.10% ASCU
    CUT-OFF </A></TD>
    <TD align=right bgColor=#ffffff><A
      href="#page_18">17
    </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_19">TABLE
      5: </A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_19">GIBRALTAR
    PRODUCTION </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_19">18
    </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff colSpan=2><A
      href="#page_25">TABLE
      6: </A></TD>
    <TD align=left bgColor=#ffffff><A
      href="#page_25">PROSPERITY
    MINERAL RESERVES AT CDN$5.50 NSR/T PIT -RIM CUT-OFF </A></TD>
    <TD align=right bgColor=#ffffff><A
      href="#page_25">24
    </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_26">TABLE
      7: </A></TD>
    <TD align=left bgColor=#eeeeee><A
      href="#page_26">PROSPERITY
    MINERAL RESERVES AT 0.14% COPPER CUT-OFF &#150; SEPTEMBER 2009 </A></TD>
    <TD align=right bgColor=#eeeeee><A
      href="#page_26">25
    </A></TD>
  </TR></TABLE>
<BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_3></A>
<P align=center>- 2 -</P>
<P align=justify><B>Preliminary Notes</B></P>
<P align=justify><B>Documents Incorporate by Reference</B></P>

<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 &#147;forward-looking statements&#148;. 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 are discussed herein and include
      market prices, exploitation and exploration successes, continued
      availability of capital and financing and general economic, market or
      business conditions. Investors are cautioned that any such statements are
      not guarantees of future performance and that actual results or
      developments may differ materially from those projected in the
      forward-looking statements. </P></TD></TR></TABLE>
<P align=justify>Incorporated by reference into this annual information form
(the &#147;Annual Information Form&#148; or &#147;AIF&#148;) are the audited consolidated financial
statements and Management Discussion and Analysis for Taseko Mines Limited (the
&#147;Company&#148; or &#147;Taseko&#148;) for the fiscal year (twelve months) ended December 31,
2009 and the fiscal period ended December 31, 2008 together with the auditor&#146;s
report thereon. The financial statements are available for review on the SEDAR
website located at <U><FONT color=#0000ff>www.sedar.com</FONT></U>. All
financial information in this Annual Information Form is prepared in accordance
with Canadian generally accepted accounting principles (&#147;Canadian GAAP&#148;) using
Canadian dollars.</P>
<P align=justify>Also incorporated by reference is the technical report
&#147;Technical Report on the 105 Million Ton Increase in Mineral Reserves at the
Gibraltar Mine&#148; dated January 23, 2009, prepared by Scott Jones, P. Eng. and the
technical report &#147;Technical Report on the 344 Million Tonne Increase in Mineral
Reserves at the Prosperity Gold-Copper Project&#148; dated December 17, 2009 All
technical reports have been filed on Taseko&#146;s profile on SEDAR at <U><FONT
color=#0000ff>www.sedar.com</FONT></U>.</P>
<P align=justify><B>Currency and Metric Equivalents</B></P>
<P align=justify>The Company&#146;s accounts are maintained in Canadian dollars and
all dollar amounts herein are expressed in Canadian dollars unless otherwise
indicated. . </P>
<P align=justify>The following factors for converting Imperial measurements into
metric equivalents are provided:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; " align="center" cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=top>
    <TD align=left><B><U>To convert from Imperial</U></B> </TD>
    <TD align=left width="33%"><B><U>To metric</U></B> </TD>
    <TD align=left width="33%"><B><U>Multiply by</U></B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="33%">&nbsp; </TD>
    <TD width="33%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>acres </TD>
    <TD align=left width="33%" bgColor=#e6efff>hectares </TD>
    <TD align=left width="33%" bgColor=#e6efff>0.405 </TD></TR>
  <TR vAlign=top>
    <TD align=left>feet </TD>
    <TD align=left width="33%">metres </TD>
    <TD align=left width="33%">0.305 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>miles </TD>
    <TD align=left width="33%" bgColor=#e6efff>kilometres </TD>
    <TD align=left width="33%" bgColor=#e6efff>1.609 </TD></TR>
  <TR vAlign=top>
    <TD align=left>tons (2000 pounds) </TD>
    <TD align=left width="33%">tonnes </TD>
    <TD align=left width="33%">0.907 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>ounces (troy)/ton </TD>
    <TD align=left width="33%" bgColor=#e6efff>grams/tonne </TD>
    <TD align=left width="33%" bgColor=#e6efff>34.286
</TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=center>- 3 -</P>
<P align=justify>In this AIF the following defined terms have the meanings set
forth below:</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 ><B>NYSE Amex</B> </TD>
    <TD align=left width="80%">
      <P align=justify>The New York Stock Exchange which has incorporated the
      former American Stock exchange, being one of the two stock exchanges
      (together with the TSX) on which the Common Shares are listed. </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="80%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Common Shares</B> </TD>
    <TD align=left width="80%">
      <P align=justify>The Company&#146;s common shares without par value, being the
      only class or kind of the Company&#146;s authorized capital. </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="80%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Company</B> </TD>
    <TD align=left width="80%">
      <P align=justify>Taseko Mines Limited, including its subsidiaries, unless
      the context requires otherwise. </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="80%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Carbonatite deposit</B> </TD>
    <TD align=left width="80%">
      <P align=justify>Carbonatites deposits are igneous rocks largely
      consisting of the carbonate minerals calcite and dolomite which contain
      the niobium mineral pyrochlore, rare earth minerals or copper sulphide
      minerals. </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="80%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Epithermal deposit</B> </TD>
    <TD align=left width="80%">
      <P align=justify>A mineral deposit formed at low temperature (50-200&#176;C),
      usually within one kilometer of the earth&#146;s surface, often as structurally
      controlled veins. </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="80%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Flotation</B> </TD>
    <TD align=left width="80%">
      <P align=justify>Flotation is a method of mineral separation whereby after
      crushing and grinding ore, froth created in a slurry by a variety of
      reagents, causes some finely crushed minerals to float to the surface
      where they are skimmed off. </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="80%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>HQ</B> </TD>
    <TD align=left width="80%">
      <P align=justify>A letter name specifying the dimensions of bits, core
      barrels, and drill rods in the H-size and Q-group wireline diamond
      drilling system having a core diameter of 63.5 mm and a hole diameter of
      96 mm. </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="80%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Induced Polarization<BR></B> <B>(&#147;IP&#148;)
      Survey</B> </TD>
    <TD align=left width="80%">
      <P align=justify>A geophysical survey used to identify a feature that
      appears to be different from the typical or background survey results when
      tested for levels of electro- conductivity. IP detects both chargeable,
      pyrite-bearing rock and non- conductive rock that has high content of
      quartz. </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="80%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Mineral Deposit</B> </TD>
    <TD align=left width="80%">
      <P align=justify>A deposit of mineralization, which may or may not be ore.
      </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="80%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Mineral Symbols</B> </TD>
    <TD align=left width="80%">
      <P align=justify>Ag &#150; silver; Au &#150; gold; Cu &#150; copper; Pb &#150; lead; Zn &#150;
      Zinc; Mo &#150; molybdenum; Nb &#150; niobium. </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="80%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>NQ</B> </TD>
    <TD align=left width="80%">
      <P align=justify>A letter name specifying the dimensions of bits, core
      barrels, and drill rods in the N-size and Q-group wireline diamond
      drilling system having a core diameter of 47.6 mm and a hole diameter of
      75.7 mm. </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="80%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Porphyry deposit</B> </TD>
    <TD align=left width="80%">
      <P align=justify>A type of mineral deposit in which ore minerals are
      widely disseminated, generally of low grade but large tonnage.
  </P></TD></TR></TABLE><BR>
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<P align=center>- 4 -</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 ><B>Solvent Extraction/</B>
      <BR><B>Electrowinning</B> <BR><B>(&#147;SX/EW&#148;)</B> </TD>
    <TD align=left width="80%">
      <P align=justify>Solvent extraction is the technique of transferring a
      solute from one solution to another; for example when copper oxide is
      dissolved into solution, copper becomes the solute. Electrowinning is the
      process in which an electric current flows between a pair of electrodes
      (anode &amp; cathode) in a solution containing metal ions (electrolyte).
      Metal is deposited on the cathode in accordance with the metal&#146;s ability
      to gain or lose electrons. Since ion deposition is selective, the cathode
      product is generally high grade and requires little further refining.
    </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="80%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>TSX</B> </TD>
    <TD align=left width="80%">
      <P align=justify>The Toronto Stock Exchange, one of the two stock
      exchanges on which the Common Shares are listed, along with NYSE Amex.
    </P></TD></TR></TABLE>
<P align=justify><B>Resource Category (Classifications) Used in this AIF
</B></P>
<P align=justify>The discussion of mineral deposit classifications in this AIF
adheres to the resource/reserve definitions and classification criteria
developed by the Canadian Institute of Mining and Metallurgy in 2005. Estimated
mineral resources fall into two broad categories dependent on whether the
economic viability of them has been established and these are namely &#147;resources&#148;
(economic viability not established) and ore &#147;reserves&#148; (viable economic
production is feasible). Resources are sub-divided into categories depending on
the confidence level of the estimate based on level of detail of sampling and
geological understanding of the deposit. The categories, from lowest confidence
to highest confidence, are inferred resource, indicated resource and measured
resource. Reserves are similarly sub-divided by order of confidence into
probable (lowest) and proven (highest). These classifications can be more
particularly described as follows:</P>
<P align=justify>A &#147;<B>Mineral Resource</B>&#148; is a concentration or occurrence of
diamonds, natural solid inorganic material, or natural solid fossilized organic
material including base and precious metals, coal, and industrial minerals in or
on the Earth&#146;s crust in such form and quantity and of such a grade or quality
that it has reasonable prospects for economic extraction. The location,
quantity, grade, geological characteristics and continuity of a Mineral Resource
are known, estimated or interpreted from specific geological evidence and
knowledge. </P>
<P align=justify>An &#147;<B>Inferred Mineral Resource</B>&#148; is that part of a Mineral
Resource for which quantity and grade or quality can be estimated on the basis
of geological evidence and limited sampling and reasonably assumed, but not
verified, geological and grade continuity. The estimate is based on limited
information and sampling gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes. </P>
<P align=justify>An &#147;<B>Indicated Mineral Resource</B>&#148; is that part of a
Mineral Resource for which quantity, grade or quality, densities, shape and
physical characteristics can be estimated with a level of confidence sufficient
to allow the appropriate application of technical and economic parameters, to
support mine planning and evaluation of the economic viability of the deposit.
The estimate is based on detailed and reliable exploration and testing
information gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes that are spaced closely
enough for geological and grade continuity to be reasonably assumed. </P>
<P align=justify>A &#147;<B>Measured Mineral Resource</B>&#148; is that part of a Mineral
Resource for which quantity, grade or quality, densities, shape, and physical
characteristics are so well established that they can be estimated with
confidence sufficient to allow the appropriate application of technical and
economic parameters, to support production planning and evaluation of the
economic viability of the deposit. The estimate is based on detailed and
reliable exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes that are spaced closely enough to confirm both
geological and grade continuity. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=center>- 5 -</P>
<P align=justify>A &#147;<B>Mineral Reserve</B>&#148; is the economically mineable part of
a Measured or Indicated Mineral Resource demonstrated by at least a Preliminary
Feasibility Study. This Study must include adequate information on mining,
processing, metallurgical, economic and other relevant factors that demonstrate,
at the time of reporting, that economic extraction can be justified. A Mineral
Reserve includes diluting materials and allowances for losses that may occur
when the material is mined. </P>
<P align=justify>A &#147;<B>Probable Mineral Reserve</B>&#148; is the economically
mineable part of an Indicated and, in some circumstances, a Measured Mineral
Resource demonstrated by at least a Preliminary Feasibility Study. This Study
must include adequate information on mining, processing, metallurgical,
economic, and other relevant factors that demonstrate, at the time of reporting,
that economic extraction can be justified.</P>
<P align=justify>A &#147;<B>Proven Mineral Reserve</B>&#148; is the economically mineable
part of a Measured Mineral Resource demonstrated by at least a Preliminary
Feasibility Study. This Study must include adequate information on mining,
processing, metallurgical, economic, and other relevant factors that
demonstrate, at the time of reporting, that economic extraction is justified.
The US Securities and Exchange Commission require permits in hand or their
issuance imminent to classify mineralized material as reserves.</P>
<P align=justify>For United States reporting purposes, SEC Industry Guide 7
(under the United States Securities Exchange Act of 1934 (the &#147;Exchange Act&#148;),
as interpreted by Staff of the United States Securities and Exchange Commission
(the &#147;SEC&#148;), applies different standards in order to classify mineralization as
a reserve. As a result, the definitions of proven and probable reserved used in
National Instrument 43-101 &#147;Standards of Disclosure for Mineral Projects&#148; (&#147;NI
43-101&#148;) differ from the definitions in the SEC Industry Guide 7. Under SEC
standards, mineralization may not be classified as a &#147;reserve&#148; unless the
determination has been made that the mineralization could be economically and
legally produced or extracted at the time the reserve determination is made.
Among other things, all necessary permits would be required to be in hand or
issuance imminent in order to classify mineralized material as reserves under
the SEC standards.</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 ><B><FONT color=#0000ff>ITEM 3.</FONT></B> </TD>
    <TD align=left width="90%"><B><FONT color=#0000ff>CORPORATE
      STRUCTURE</FONT></B> </TD></TR></TABLE>
<P align=justify>Taseko Mines Limited was incorporated on April 15, 1966,
pursuant to the <I>Company Act </I>of the Province of British Columbia. This
corporate legislation was superseded in 2004 by the <I>British Columbia
Corporations </I>Act which is now the corporate law statute that governs
Taseko<I>. </I>Taseko has one material active wholly-owned subsidiary, Gibraltar
Mines Ltd. (&#147;Gibraltar&#148;), a second active but not material subsidiary Aley
Corporation, and three non-material, inactive subsidiaries, Cuisson Lake Mines
Ltd. (which is 70% owned and holds certain Gibraltar Mine mineral interests),
688888 BC Ltd. (which is wholly owned) and Taseko Acquisitionsub Ltd. (which is
wholly owned). Taseko owns 100% of the common shares of Gibraltar but none of
Gibraltar&#146;s issued preferred shares. As of the date of this AIF, the Company has
established a joint venture with the Sojitz Consortium (&#147;Sojitz&#148;) over the
Gibraltar Mine, whereby Sojitz acquired a 25% interest in the mine and Gibraltar
retained a 75% interest.</P>
<P align=justify>The head office of Taseko is located at Suite 300, 905 West
Pender Street, Vancouver, British Columbia, Canada V6C 1L6, telephone (778)
373-4533, facsimile (778) 373-4534. The Company&#146;s legal registered office is in
care of its Canadian attorneys Lang Michener LLP, Barristers &amp; Solicitors,
at Suite 1500, 1055 West Georgia Street, Vancouver, British Columbia, Canada V6E
4N7, telephone (604) 689-9111, facsimile (604) 685-7084. In this Annual
Information Form, the terms &#147;Company&#148; or &#147;Taseko&#148; refer to Taseko Mines Limited
and all its subsidiaries together unless the context otherwise clearly requires.
Certain terms used herein are defined in the glossary of this Annual Information
Form or in the disclosure to which the term relates.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=center>- 6 -</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><B><FONT color=#0000ff>ITEM 4.</FONT></B> </TD>
    <TD align=left width="90%"><B><FONT color=#0000ff>GENERAL DEVELOPMENT OF
      THE BUSINESS</FONT></B> </TD></TR></TABLE>
<P align=justify>The principal business activity of Taseko for the past three
years has been the operation and capacity expansion of its Gibraltar Mine which
constitutes the majority of the activity disclosed by Taseko&#146;s consolidated
financial statements summarized below. The consolidated financial statements
below have been prepared in accordance with Canadian generally accepted
accounting principles (&#147;GAAP&#148;), and are expressed in thousands of Canadian
dollars except for per share and share amounts.</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 width="23%" colSpan=4 align=center nowrap><B>As at December 31</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>As at September</B> </TD>
  <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD 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=right
      width="10%"><B>30</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><B>Balance
      Sheets</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="10%"><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="10%"><B>2008</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>2007</B> </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 align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;92,316 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;41,283 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;94,619 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Mineral properties </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">32,631 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">32,610 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">18,407 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Plant and equipment </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>305,205 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>292,390 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>158,492 </TD>
    <TD 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" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">104,943 </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%">111,962 </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%">105,745 </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>Total assets </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="10%"
    bgColor=#e6efff>&nbsp;535,095 </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;478,245 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;377,263 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Current liabilities </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;75,179 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;112,053 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;44,589 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Other liabilities </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">163,223 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">131,285 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">169,014 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Shareholders&#146; equity </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>296,693 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>234,907 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>163,660 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Total liabilities
      &amp; shareholders&#146; equity </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">&nbsp;535,095 </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%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">&nbsp;478,245 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">&nbsp;377,263 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" 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 align=left>&nbsp; </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%"><B>Year ended</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%"><B>Fifteen months</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%"><B>Year ended</B> </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD
      width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>December 31</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="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>ended December 31</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="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>September 30</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><B>Statements of
      Operations</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="10%"><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="10%"><B>2008</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>2007</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Revenue </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;188,902 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;231,678 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;218,426 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Cost of sales </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">132,434 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">196,261 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">109,533 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Depletion, depreciation and amortization </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="10%"
    bgColor=#e6efff>8,150 </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="10%"
    bgColor=#e6efff>7,363 </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="10%"
    bgColor=#e6efff>3,155 </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 1px solid" align=left>Operating profit
    </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%">48,318 </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%">28,054 </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%">105,738 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Accretion of reclamation obligation </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>968 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1,451 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1,777 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Exploration </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">3,407 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">11,864 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">8,967 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Foreign exchange loss (gain) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(8,800</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>4,032 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>233 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Gain on asset retirement obligation change of estimates </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">&#150; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(6,917</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(4,570</TD>
    <TD align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Gain on convertible bond repurchase </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(1,630</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>General and administration </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">8,382 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">11,896 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">6,501 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Gain on sale of marketable securities </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(188</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(1,034</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(1,508</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Interest and other income </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(7,402</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(9,701</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(11,093</TD>
    <TD align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Interest expense </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>8,265 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>8,284 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>5,947 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Interest accretion on convertible debt </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">1,260 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">2,938 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">2,922 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Stock-based compensation </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>5,696 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>6,442 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>6,771 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Realized loss on derivative instruments </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">11,330 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">&#150; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">&#150; </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Change in fair market value of financial instruments </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="10%"
    bgColor=#e6efff>&#150; </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="10%"
    bgColor=#e6efff>886 </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="10%"
    bgColor=#e6efff>1,925 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Earnings (loss) before other items </TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="10%">&nbsp;27,030 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="10%">&nbsp;(2,087</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="10%">&nbsp;87,866 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Other items: </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;
      &nbsp;Unrealized loss on derivative instruments </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%">15,775 </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%">&#150; </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%">&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Earnings (loss) before income taxes: </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>11,255 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;(2,087</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;87,866 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Current income tax expense (recovery) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">669 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(2,151</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">3,959 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Future income tax expense (recovery) </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="10%"
    bgColor=#e6efff>25 </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="10%"
    bgColor=#e6efff>(3,446</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>) </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="10%"
    bgColor=#e6efff>35,645 </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 1px solid" align=left>Earnings (loss)
      for the year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">&nbsp;10,561 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">&nbsp;3,510 </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="10%">&nbsp;48,262 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Other comprehensive income (loss): </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Unrealized gain (loss) on reclamation
      deposits </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(1,040</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">1,859 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(419</TD>
    <TD align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Unrealized gain (loss)
      on marketable securities/investments </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>14,263 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(11,295</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>4,710 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Reclassification of realized gain on
      sale of marketable securities </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(188</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(1,152</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(1,508</TD>
    <TD align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Tax effect </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="10%"
    bgColor=#e6efff>(1,779</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>) </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="10%"
    bgColor=#e6efff>1,570 </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="10%"
    bgColor=#e6efff>(445</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>Other
      comprehensive income (loss) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">&nbsp;11,256 </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%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">&nbsp;(9,018</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">&nbsp;2,338 </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>Total comprehensive income (loss) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;21,817 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;(5,508</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;50,600 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Basic earnings (loss) per share </TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="10%">&nbsp;0.06 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="10%">&nbsp;0.02 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="10%">&nbsp;0.37 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Diluted earnings (loss) per share </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;0.06 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;0.02 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;0.36 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Basic weighted average number of common shares outstanding
    </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">173,170 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">142,062 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">129,218 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Diluted weighted average number of common
      shares outstanding </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>180,835 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>156,928 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>142,278 </TD>
    <TD 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>
<!--$$/page=--><A name=page_8></A>
<P align=center>- 7 -</P>
<P align=justify>Taseko&#146;s business is focused on, firstly, enhancing the
production of copper and molybdenum from its producing Gibraltar mine (the
&#147;Gibraltar Mine&#148;) and, secondly, on demonstrating the economic feasibility and
social acceptability of its Prosperity gold and copper property (the &#147;Prosperity
Project&#148;). A feasibility study has been completed for Prosperity Project,
demonstrating mineral reserves as defined under Canadian Securities regulations
under NI 43-101. As no permits are in place, the Prosperity Project does not
have reserves under US SEC Guide 7 Standards. Both the Gibraltar Mine and the
Prosperity Project are located in central British Columbia, Canada.</P>
<P align=justify>The Company also has two non-material properties located in
British Columbia, including the advanced exploration stage property known as the
Harmony project, and the mid stage exploration niobium project known as the Aley
project (&#147;Aley&#148;). Mineralization at the Harmony project has not at this time
been determined to constitute a proven or probable reserve, and there are no
mineral resources currently estimated at the Aley project. Aside from the joint
venture established with Sojitz Taseko and its subsidiaries currently own all
its projects outright.</P>
<P align=justify>After focusing on the recommencement of copper production at
the Gibraltar Mine over fiscal 2005 through 2007, the Company reactivated
environmental and economic assessments of the Prosperity Project. A $2 million
feasibility study on the Prosperity Project was completed in September 2007,
projecting the technical and economic feasibility of the project. </P>
<P align=justify>In fiscal 2008 and 2009, Taseko expanded the ore concentrator
and made other production improvements at the Gibraltar Mine. Taseko also
continued to advance the Prosperity Project through the environmental assessment
process. Work on the Harmony and Aley projects was curtailed in 2008 and 2009 as
the Company focused efforts on the Gibraltar Mine and the Prosperity Project.
The Company is considering additional project assessment work in 2010 to advance
these projects. Taseko believes that there will continue to be demand for
copper, molybdenum, gold, and niobium for the foreseeable future and there will
be a continuing need to replace depleted reserves from existing mines. Hence, it
sees value in projects which may not yet seem economic.</P>
<P align=justify>During the past three years, the Company&#146;s two material
projects have developed as follows:</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>The Gibraltar Mine obtained government permitting and
      re-started the operation in early October 2004 following several years on
      care and maintenance as a result of low metal prices. Commercial
      production started on January 1, 2005 and has continued to the present.
      Total production in the three years leading up to December 31, 2009 was
      33.7 million tons milled, producing 188.4 million lb. of copper in
      concentrate and cathode, 1.9 million lb. of molybdenum. Construction of
      the Phase 1 mill expansion was completed in February 2008. The ramp up to
      the rated processing capacity of 46,000 tons per day (&#147;tpd&#148;) has been
      ongoing since the completion of construction. The construction schedule of
      a Phase 2 expansion program, designed to increase concentrator from 46,000
      tpd to 55,000 tpd, was modified as a result of management&#146;s review of
      capital spending in the face of the global credit market crisis in late
      2008. The regrind and cleaner flotation circuits were completed in the
      summer of 2009 as they provide very robust payback by enhancing both
      copper and molybdenum recoveries. Ramp up to 55,000 tpd will occur during
      2010 and 2011 following completion of the remainder of the Phase 2
      program, completion of the in-pit crusher and conveyor, and installation
      of the SAG mill direct feed system.</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%">b) </TD>
    <TD>
      <P align=justify>The Prosperity Project was the subject of a feasibility
      study which was completed in September 2007 for a 70,000 tonnes per day
      operation. A review of the project in 2009 resulted in
an increase in anticipated mine life to
  33 years. Environmental assessment under the Canadian and British Columbia
  Environmental Assessment Act has been underway. Taseko received the
  environmental assessment certificate from the British Columbia Provincial
  Ministry of Environment on January 14, 2010. The Provincial Mines Act permit
  application is planned to be submitted to the Ministry of Energy, Mines, and
  Petroleum Resources in April 2010. Following hearings under the federal process,
  scheduled to begin in late March and conclude in May 2010, the Panel will submit
  their findings to the Federal Minister of Environment for a decision. This
  process is expected to be completed by mid 2010.</P></TD></TR></TABLE>
<BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_9></A>
<P align=center>- 8 -</P>
<P align=justify>The Company&#146;s two non-material projects have developed as
follows:</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>The Harmony project was significantly moved towards mine
      development permitting during a period of active exploration during the
      late 1990s further described herein. Taseko is considering initiating a
      pre-feasibility level study in 2010 of Harmony to further evaluate the
      project. The Company initiated a review of engineering work on the project
      in late 2007 following the designation of the area as a mineral
      development zone under the Queen Charlotte-Haida Gwaii Land and Resource
      Management Plan.</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%">b) </TD>
    <TD>
      <P align=justify>Taseko acquired the Aley project in 2007 and carried out
      an initial exploration program for niobium. The Company is considering
      additional exploration work in 2010 to advance this
  project.</P></TD></TR></TABLE>
<P align=justify>The provincial government of British Columbia and the federal
government of Canada both have jurisdiction over a wide variety of activities
and persons affected by mining including local communities, habitat users and
others having or claiming to have interests which may be affected by mining
activity. The Company&#146;s management believes that there is a reasonable level of
public acceptance of mining in British Columbia and that responsible mining
projects make a positive contribution to the Province of British Columbia and
the local communities where or near to where these projects are located. This
has enabled the Company to have positive dialogue with local communities, First
Nations, and government agencies. It has also helped in advancing the Prosperity
Project&#146;s evaluation process forward.</P>
<P align=justify>As announced in a news release on December 11, 2008, proven and
probable mineral reserves at the Gibraltar Mine have increased by approximately
105 million tons to a total of 472.4 million tons stated at December 31, 2008
(See &#147;Description of Business &#150; Gibraltar Mine &#150; Reserves&#148;). In January 2009,
the Company prepared a NI 43-101 compliant technical report containing the
revised reserve estimates and updated capital and operating costs and filed it
at <U><FONT color=#0000ff>www.sedar.com</FONT></U>. </P>
<P align=justify>As announced in a news release on November 12, 2009, proven and
probable mineral reserves at the Prosperity Project have increased by
approximately 344million tons to a total of 830 million tons (See &#147;Description
of Business &#150; Reserves&#148;). In November 2009, the Company prepared a NI 43-101
compliant technical report containing the revised reserve estimates and updated
capital and operating costs and filed it at <U><FONT
color=#0000ff>www.sedar.com</FONT></U>.</P>
<P align=justify>Consistent with the Company's existing strategy to manage its
operating margins effectively in volatile copper markets, the Company has
established a hedging program for approximately 50% of targeted copper
production to the end of 2010 from its wholly-owned Gibraltar Mine.
Approximately 30 million pounds of copper was hedged with a price range of
US$1.88 - US$2.36 per pound for 2009 and approximately 50% of the copper
production, from January 2010 to December 2010, has been hedged at a price range
of US$2.00 - US$3.95 per pound.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_10></A>
<P align=center>- 9 -</P>
<P align=justify>During the 2009 fiscal year, Taseko repurchased the entire
US$30 million in Convertible Bonds that it had outstanding. The Company
completed equity financings in the amount of $28.3 million. The Company also
completed two debt financings totalling US$50 million with Credit Suisse and
Investec Bank PLC, a $9 million equipment loan from GE Capital and a $6.5
million royalty financing which pays a 6% royalty.</P>
<P align=justify>The Company announced in November 2009 that it would establish
a joint venture with the Sojitz over the Gibraltar mine, whereby Sojitz would
pay approximately $179.5 million to acquire a 25% interest in the mine. Taseko
will retain a 75% interest and will continue to operate the mine.</P>
<P align=justify>On March 24, 2009, the Company announced that the definitive
agreements with Sojitz were executed. The joint venture partners will be
Gibraltar Mines Ltd. (75%) and Cariboo Copper Corp. (25%) [jointly owned by
Sojitz Corporation (50%), Dowa Metals &amp; Mining Co., Ltd. (25%) and Furukawa
Co., Ltd. (25%)]. The transaction is scheduled to close on March 31, 2010 for
total consideration of approximately C$187 million.</P>
<P align=justify>Aside from the above, the Company has not made any significant
acquisitions or dispositions since January 2006.</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 ><B><FONT color=#0000ff>ITEM 5.</FONT></B> </TD>
    <TD align=left width="90%"><B><FONT color=#0000ff>DESCRIPTION OF
      BUSINESS</FONT></B> </TD></TR></TABLE>
<P align=justify>Taseko is a mining company that generally seeks to acquire,
develop, and operate large tonnage mineral deposits which, under conservative
metals forward price assumptions, are potentially capable of supporting a mine
for 10 years or longer. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_11></A>
<P align=center>- 10 -</P>
<P align=justify>Figure 1 below shows the location of the Company&#146;s four
properties in British Columbia, Canada.</P>
<P align=center><B>Figure 1: Location of the Taseko&#146;s Properties</B></P>
<P align=center><IMG src="exhibit99-5x11x1.jpg" border=0> </P>
<P align=justify><B>The Gibraltar Mine</B></P>
<P align=justify>Unless stated otherwise, information of a technical or
scientific nature related to the Gibraltar Mine contained in this AIF is
summarized or extracted from a technical report entitled &#147;Technical Report on
the 105 Million Ton Increase in Mineral Reserves at the Gibraltar Mine&#148; dated
January 23, 2009 (the &#147;Gibraltar Technical Report&#148;), prepared by Scott Jones, P.
Eng. filed on Taseko&#146;s profile on SEDAR at <U><FONT color=#0000ff>www.sedar.com
</FONT></U>and updated with 2009 production results. Mr. Jones is not
independent of Taseko by virtue of being employed by the Company as
Vice-President, Engineering.</P>
<P align=justify><I>Property Description and Location</I></P>
<P align=justify>The Gibraltar Mine site covers approximately 113 square km,
located at latitude 52&#176;30&#146;N and longitude 122&#176;16&#146;W in the Granite Mountain area,
approximately 65 km by road north of the City of Williams Lake in south-central
British Columbia, Canada. The Gibraltar Mine property consists of 250 tenures
held 100% by the Company as summarized in Table 1 below.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_12></A>
<P align=center>- 11 -</P>
<P align=center><B>Table 1: Mineral Tenures &#150; Gibraltar Mine</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; " align="center" borderColor=#000000 cellSpacing=0 cellPadding=3 width="80%" border=1>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center>Tenure Type </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="33%">Number </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="33%">Area
      (ha) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Claims </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="33%">220
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="33%">14,184.14 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Leases </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="33%">30
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="33%">1,889.68 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Total </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="33%">250
    </TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="33%">16,073.82 </TD></TR></TABLE>
<P align=justify>There are 30 mining leases at Gibraltar which are valid until
at least July 26, 2023 as long as renewal fees, which are due on an annual
basis, are paid. Rights to use the surface accompany each mining lease.
Additionally all mining claims at Gibraltar are valid until February 15, 2011
with the exception of four claims that have expiry dates on May 19, 2010, June
12, 2010, July 24, 2010 and October 19, 2010. It is intended that all leases and
claims will be renewed prior to their renewal fees being due (in the case of the
leases) and prior to their expiry in the case of the claims.</P>
<P align=justify>There are several land parcels for which surface rights were
purchased outright. There is one fee simple lot at Gibraltar (L3728) on which
the plant site is located and annual taxes are paid. In addition Gibraltar holds
four other land parcels: DL9170, DL9483, DL 9497 and DL588.</P>
<P align=justify>The Gibraltar Mine has operated for most of the active life of
the mine from four open pits. Waste dumps have been developed in various areas
adjacent to the open pits and tailings have been deposited in an impoundment
area, located about three km north of the mill.</P>
<P align=justify>A mill expansion completed in 2008 included commissioning of a
new 34&#146; diameter Semi-Autogenous Grinding (&#147;SAG&#148;) mill, conversion of the rod
and ball mill circuit to ball mill grinding only, and replacement of rougher and
cleaner flotation cells with large state of the art cells. Improvement
associated with the expansion continued in 2009. The cleaner and regrind circuit
capital projects were completed and expected copper recovery improvements were
being realized by the end of the year. Upon completion of the in-pit crusher
conveyor and tailings handling systems (mid 2010), and the concentrate
filter/dryer circuits upgrade and the Semi Autogenous Grind (SAG) mill direct
feed systems (end of 2010), the rated capacity of the operation will increase
from 36,000 tons per day to 55,000 tons per day.</P>
<P align=justify><I>Accessibility, Climate, Local Resources, Infrastructure and
Physiography</I></P>
<P align=justify>Access to the Gibraltar Mine from Williams Lake, British
Columbia is via Highway 97 to McLeese Lake, and then a paved road provides
access to the Gibraltar Mine site, a total road distance of 65 km.</P>
<P align=justify>The Canadian National Railway has rail service to facilitate
the shipping of copper concentrates through to the Pacific Ocean port of North
Vancouver. A rail siding and storage shed for the shipment of concentrate is
located 26 km from the mine site. Electricity is obtained from BC Hydro. Natural
gas is provided by Avista Energy and Terasen Gas. The communities of Williams
Lake and Quesnel are sufficiently close to the site to supply goods, services,
and personnel to the Gibraltar Mine. The number of active personnel at the
Gibraltar Mine at the end of December 2009 was 377 individuals.</P>
<P align=justify>The Gibraltar Mine mineral claims cover an area of gentle
topography; local relief is in the order of 200 meters. The plant site is
located at an elevation of approximately 1,100 meters above sea level. The
project area has a moderate continental climate with cold winters and warm
summers. Ambient air temperature ranges from a winter minimum of -34&#176; C to a
summer maximum of 35&#176;C. The Gibraltar Mine operates year round.</P>
<P align=justify>Make-up fresh water for the mine site is obtained from a set of
wells on the Gibraltar Mine property. The Company owns and operates the
concentrate rail load-out facility on the CN rail line at Macalister.</P>
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<P align=center>- 12 -</P>
<P align=justify><I>Gibraltar Mine History</I></P>
<P align=justify>In 1964, Gibraltar Mines Ltd. (Gibraltar) acquired a group of
claims in the McLeese Lake area from Malabar Mining Co. Ltd. Canadian
Exploration Limited (Canex), at that time a wholly-owned subsidiary of Placer
Development (Placer), and Duval Corporation (Duval) had also been exploring on
claims known as the Pollyanna Group which they had acquired adjacent to
Gibraltar&#146;s claims. In 1969, Gibraltar, Canex and Duval entered into an
agreement providing for the commingling of Gibraltar&#146;s claims with the Pollyanna
Group. In 1971 Gibraltar acquired Duval&#146;s remaining interest in the property.
</P>
<P align=justify>Preliminary development of the Gibraltar Mine began in October
1970. The concentrator commenced production on March 8, 1972 and was fully
operational by March 31, 1972. Mining and milling operations were suspended on
December 1, 1993 due to low copper prices and recommenced in September 1994
following the increase in copper prices. A cathode copper plant design with an
annual capacity of 4,535 tonnes (10 million lb.) of market-ready copper metal
began operation in October 1986. Up to the 1998 shutdown, as discussed below,
38,430 tonnes (84.7 million lb.) of electro won copper had been produced from
this facility.</P>
<P align=justify>In October 1996, Westmin Resources Limited (&#147;Westmin&#148;) acquired
100% control of Gibraltar and in December 1997, Boliden Limited Westmin (Canada)
Limited (&#147;Boliden&#148;) acquired Westmin. In March 1998, Boliden announced that it
would cease mining operation at Gibraltar Mine at the end of 1998.</P>
<P align=justify>On July 21, 1999, Taseko&#146;s subsidiary, Gibraltar Mines Ltd.,
purchased the Gibraltar mine assets from Boliden Westmin (Canada) Limited
(&#147;Boliden&#148;) and certain of its affiliates, including all mineral interests,
mining and processing equipment and facilities, and assumed responsibility for
reclamation obligations estimated at that time at about $33 million. Pursuant to
the terms of the acquisition, Gibraltar acquired mining equipment, parts and
supplies inventories valued at $19 million, an existing British Columbia
Government environmental deposit of $8 million, and mineral interests valued at
$3.3 million, and received $20.1 million in cash over 18 months from closing, of
which $17 million was received pursuant to a 10-year non-interest bearing
convertible debenture issued to Boliden and subsequently acquired by NVI Mining
Ltd (&#147;NVI&#148;). Gibraltar assumed the estimated reclamation liability pertaining to
the Gibraltar mine of $32.9 million and Taseko guaranteed Gibraltar&#146;s
obligations to Boliden. On April 2, 2008, NVI issued a notice to the Company to
convert the principal amount of the debenture of $17.0 million at an effective
conversion rate of $5.14 per common share, which would have resulted in
3,307,393 common shares of the Company being issued to NVI. The Company issued
2,612,971 to NVI and made a cash payment of $3.6 million in lieu of issuing the
remaining 694,422 common shares as full and final settlement to NVI and
accordingly the debenture is discharged as of the date hereof.</P>
<P align=justify>The total production history, to the end of 1998, amounted to
845,800 tonnes (1,860 million lb.) of copper, 8,900 tonnes (19.7 million lb.) of
molybdenum and 38,400 tonnes (84.7 million lb.) of cathode copper from 305
million tonnes (336 million short tons) milled.</P>
<P align=justify>From 1999 to 2004, Taseko geologists and engineers explored for
additional mineralized material and to better define known resources. The
on-site staff also completed on-going reclamation work and maintained the
Gibraltar mine for re-start. Operating and environmental permits were kept in
good standing. </P>
<P align=justify>On October 1, 2004 when the mine re-opened, there were
approximately 837 million tons of measured and indicated resources outlined at
Gibraltar, including proven and probable sulphide reserves of 163.5 million tons
grading 0.313% copper and 0.010% molybdenum at a 0.20% copper cut-off and 16.5
million tons of oxide reserves grading 0.148% Cu at a 0.10% acid soluble copper
cut-off. The Gibraltar re-start decision was based on the initial four years of
the 12-year mine plan. Mining operations recommenced under the Taseko Ledcor Joint Venture management arrangement.
Milling production began in October of that year. Copper cathode production
recommenced in January 2006 at the SX-EW plant. In November of 2006 Taseko
voluntarily withdrew from the joint venture with Ledcor and through Gibraltar
assumed responsibility for all matters in connection with Gibraltar Mine.</P>
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<P align=center>- 13 -</P>
<P align=justify><I>Red Mile Royalty Sale Agreements</I></P>
<P align=justify>On September 29, 2004, Gibraltar and 688888 B.C. Ltd.
(&#147;688888&#148;), a wholly-owned subsidiary of Taseko, entered into certain related
agreements. Pursuant to a Royalty Agreement among, <I>inter alia</I>, Gibraltar
and Wilshire (GP) No. 2 Corporation, in its own capacity and in its capacity as
general partner on behalf of all the limited partners of Red Mile Resources No.
2 Limited Partnership (&#147;Red Mile&#148;) (see &#147;Material Contracts&#148;), Gibraltar sold to
Red Mile a royalty (the &#147;Royalty Interest&#148;) for $67,357,000 (the &#147;Purchase
Price&#148;). Annual royalties payable by Gibraltar to Red Mile range from $0.01 per
pound to $0.14 per pound of copper produced during the period from the
Commencement of Commercial Production (as defined in the Royalty Agreement) to
the later of (a) December 31, 2014, and (b) the date that is five years after
the end of commercial production from the mine.</P>
<P align=justify>Pursuant to a Funding Pledge Agreement among, <I>inter
alia</I>, Alberta Capital Trust Corporation (&#147;Alberta Trust&#148;) and Gibraltar (see
&#147;Material Contracts&#148;), the Purchase Price was invested in a promissory note with
Alberta Trust, and Gibraltar pledged the promissory note, along with interest
earned and to be earned thereon, to secure its obligations under the Funding
Pledge Agreement. Pursuant to a Pledge, Priorities and Direction Agreement (see
&#147;Material Contracts&#148;), Gibraltar is entitled to have released to it funds held
under the promissory note, and interest thereon, to fund its royalty obligations
under the Royalty Agreement to the extent of its royalty payment
obligations.</P>
<P align=justify>Pursuant to a Call Option Agreement among, <I>inter alia</I>,
688888 and Red Miles Resources Inc., in its capacity as general partner on
behalf of all of the partners of Red Mile Resources Fund Limited Partnership
(&#147;RMRF&#148;) (see &#147;Material Contracts&#148;), 688888 has an option to, directly or
indirectly, reacquire the Royalty Interest by acquiring (&#147;call&#148;) from Red Mile
the Royalty Interest or from RMRF all of the limited partnership units (&#147;LP
Units&#148;) of Red Mile held by RMRF. Pursuant to the Royalty Agreement, RMRF has
the right to require Gibraltar to purchase (&#147;put&#148;) all of Red Mile&#146;s LP Units
owned by RMRF.</P>
<P align=justify>Pursuant to the Royalty Agreement, Gibraltar has granted to Red
Mile a net profits interest (&#147;NPI&#148;), which survives any &#147;put&#148; or &#147;call&#148; of the
Red Mile LP Units. The NPI is applicable for the years 2011 to 2014 and varies
depending on the average price of copper for any year during that period. No NPI
is payable until Gibraltar reaches a pre-determined aggregate level of revenues
less defined operating costs and expenditures.</P>
<P align=justify><I>Property Geology</I></P>
<P align=justify>The Gibraltar Mine generally consists of seven separate
mineralized zones. Six of these &#150; Pollyanna, Granite, Connector, Gibraltar East,
Gibraltar West and Gibraltar West Extension &#150; occur within the Granite Mountain
batholith in a broad zone of shearing and alteration. A seventh copper
mineralized body, the Sawmill zone, lies about six km to the south, along the
southern edge of the batholith, within a complex contact zone between the
batholith and Cache Creek Group rocks.</P>
<P align=justify>Two major structural orientations have been recognized at
Gibraltar: the Sunset and Granite Creek mineralized systems. The Sunset system
has a northwest strike with one set of structures dipping 35&#176; to 45&#176; to the
south and a conjugate set, known as the Reverse Sunset, dipping 50&#176; to 60&#176; to
the north. The Granite Creek system strikes east-west and dips 20&#176; to 40&#176; to the
south with a subordinate set of structures dipping steeply in a northerly direction. Structures
of the Sunset system that host mineralization are mainly shear zones, with minor
development of stockwork and associated foliation lamellae. Host structures of
the Granite Creek system are predominantly oriented stockwork zones.</P>
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<P align=center>- 14 -</P>
<P align=justify>The Granite Creek system provides the major structures that
control mineralization of Pollyanna, Granite and the Sawmill zones. These bodies
have the characteristic large diffuse nature of porphyry copper type
mineralization. The Gibraltar East deposit is essentially a system of
interconnected Sunset zones, which create a large body of uniform grade.
Gibraltar West and Gibraltar West Extension deposits are contained within a
large complex shear zone.</P>
<P align=justify><I>Mineralization</I></P>
<P align=justify>Pyrite and chalcopyrite are the principal primary iron and
copper sulphide minerals. Sixty percent of the copper occurs in fine-grained
chalcopyrite. Coarser grained chalcopyrite also occurs, usually in quartz veins
and shear zones. Small concentrations of bornite (a sulphide mineral of copper
and iron), associated with magnetite and chalcopyrite, is present on the
extremities of the Pollyanna and Sawmill deposits. Oxide copper mineralization
is also present between the Gibraltar East and Pollyanna open pits in the
Connector Zone. Molybdenite (molybdenum sulphide mineral) is a minor but
economically important associate of chalcopyrite in the Pollyanna, Granite and
Sawmill deposits.</P>
<P align=justify><I>Exploration</I></P>
<P align=justify>From 1999-2004, Taseko geologists and engineers explored for
additional mineralized material and to better define known resources. At October
1, 2004 when the mine re-opened, there were approximately 837 million tons of
measured and indicated resources outlined at the Gibraltar Mine, including
proven and probable sulphide reserves of 163.5 million tons grading 0.313%
copper and 0.010% molybdenum at a 0.20% copper cut-off and 16.5 million tons of
oxide reserves grading 0.148% Cu at a 0.10% acid soluble copper cut-off. A core
drilling program for pit definition for the Granite Lake and PGE Connector
deposits and property exploration at the 98 Oxide Zone, was carried out between
September and November 2005. A further drilling program carried out in 2006 was
designed to define the mineral resources between the existing pits by tying
together the extensive mineralization zones, and to test for additional
mineralization at depth. </P>
<P align=justify>The 2007 program tested a number of targets to define further
mineralization, provided definition drilling in the Pollyanna-Granite saddle
zone and Granite West areas and included condemnation drilling for the proposed
extensions of both the #5 and #6 Dump footprints. The targets for further
mineralization were Gibraltar South, Pollyanna North IP anomaly, Granite South
and the Gunn Zone.</P>
<P align=justify>Data from an additional 47 holes totalling 52,175 feet (15,903
m) drilled in the 2007 program after July 2007 was not available when resources
were updated in 2007. In addition, a hole totalling 605 feet (184 m) was drilled
in the Granite area at the end of the 2007 program but collared in January 2008.
</P>
<P align=justify>Holes drilled in the Gibraltar West pit area were incorporated
into the 2008 reserve estimate for the new Gibraltar Extension Pit. The 2008
exploration program was conducted on the southern and eastern margins of the
Gibraltar East pit and northwest of the Gibraltar West pit. The objective was to
upgrade identified inferred resources to indicated or measured categories
through &#147;in-fill&#148; drilling. </P>
<P align=justify>In total, 110,607 feet (33,713 m) of NQ and HQ size core were
drilled in 125 holes. Twenty-one holes totalling 22,753 feet (6,935 m) were
drilled around the southern and eastern margins of the Gibraltar East pit.
Thirteen of these holes were designed to upgrade the resources, three holes to
target pockets of potential mineralization below the current pit, and five were
abandoned, substituted or re-drilled due to difficulties in drilling conditions. One hundred and four holes
totalling 87,854 feet (26,778 m) were drilled northwest of the Gibraltar West
pit. The objective was to test the continuity of the northwest-trending zone of
mineralization and provide sufficient drill hole density to generate reserves.
Most of the holes were drilled at -90&#176; dip. Two holes totalling 170 feet (52 m)
did not reach bedrock and were excluded from the dataset used for the reserve
estimate. Seven holes totalling 5,272 feet (1,607 m) were drilled at the outer
edges of the deposit for geotechnical purposes. The new holes provided data for
a reevaluation of the deposit geology and generation of a reserve estimate for
staged pits collectively named the Gibraltar Extension pit.</P>
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<P align=center>- 15 -</P>
<P align=justify><I>Sampling and Analytical Procedures</I></P>
<P align=justify>A total of 110,607 feet (33,713 m) was drilled in 125 drill
holes in calendar 2008 averaging 883 ft (269 m) in length. This included 18 HQ
core size holes, 2 holes which started HQ and ending NQ and 106 NQ size holes.
Core recovery was measured on 10,564 drill runs averaging 9.2 ft (2.8 m) in
length. Recovery was generally good, averaging 92.5% for the sampled intervals
measured. The 10,435 half core samples taken in 2008 by Gibraltar personnel
averaged 10 ft in length.</P>
<P align=justify>Drill core was boxed at the drill site and transported by
company truck to a secure logging, sampling and sample preparation facility at
the Gibraltar Mine. The drill core was mechanically split into two halves
lengthwise. Half core was taken as an assay sample. The remaining half core and
coarse reject after sample preparation at the analytical laboratories are stored
at the Gibraltar Mine. The remaining pulps after analysis are stored at a secure
warehouse at Port Kells, British Columbia.</P>
<P align=justify>The 2008 sample preparation was performed mainly by Acme,
Vancouver (99.5%) and secondly by Eco Tech, Kamloops (0.5%) . The half-core
samples were prepared at the respective laboratories using the same
specifications. The entire sample was dried, and crushed to 70% passing 10 mesh
(&lt;2 mm). A 250 g split was then taken and the samples were pulverized to 95%
passing 150 mesh (106 microns). The coarse reject samples were returned to
Gibraltar Mine after analysis for long term storage. The sample pulps are
retained at the Port Kells BC warehouse of Taseko.</P>
<P align=justify>Taseko implemented a rigorous quality control quality assurance
(QA/QC) program after taking over the Gibraltar Mine. This QA/QC program was in
addition to the QA/QC procedures used internally by the analytical laboratories.
The results of this program indicate that analytical results are of high quality
and suitable for use in detailed modeling and resource evaluation studies.</P>
<P align=justify>From 2006 &#150; 2008 drill hole data was verified, including
digitally as well as manually. The validation and verification work performed on
the Gibraltar database indicates that it is of good quality and acceptable for
use in geological and reserve modeling.</P>
<P align=justify><I>Gibraltar Mine Reserves and Resources</I></P>
<P align=justify>The Gibraltar Mine mineral reserves are based on the published
reserves at December 31, 2008 and depleted for ore production from the Granite
pit in 2009.</P>
<P align=justify>The reserve estimates for the Gibraltar Extension deposit used
long term metal prices of US$1.75/lb for copper and US$10.00/lb for molybdenum
and a foreign exchange of Cdn$0.82 per US dollar. The estimates for the balance
of the reserves used September 2007 NI 43-101 estimates reduced by actual 2008
and 2009 mining with long term metal prices of US$1.50/lb for copper, US$10/lb
for molybdenum and a foreign exchange of $0.80 per US dollar.</P>
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<P align=center>- 16 -</P>
<P align=justify>The proven and probable reserves as of December 31, 2009 are
tabulated in Table 2 below and are NI 43-101 and SEC Guide 7 compliant.</P>
<P align=center><B>Table 2: Gibraltar Mine Mineral Reserves <BR>at 0.20% Copper
Cut-off</B></P>

<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; " align="center" borderColor=#000000 cellSpacing=0 cellPadding=3 width="80%" border=1>

  <TR vAlign=top>
    <TD align=left><BR><B>Pit</B> </TD>
    <TD align=left width="20%"><BR><B>Category</B> </TD>
    <TD align=center width="20%"><B>Tons</B> <BR><B>(millions)</B> </TD>
    <TD align=center width="20%"><B>Cu</B> <BR><B>(%)</B> </TD>
    <TD align=center width="20%"><B>Mo</B> <BR><B>(%)</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Connector <BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left
      width="20%">Proven <BR>Probable </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center
      width="20%">40.4 <BR>14.8 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center
      width="20%">0.296 <BR>0.271 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center
      width="20%">0.010 <BR>0.009 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="20%"><B>Subtotal</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="20%"><B>55.2</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="20%"><B>0.289</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="20%"><B>0.010</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Gibraltar East <BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left
      width="20%">Proven <BR>Probable </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center
      width="20%">66.8 <BR>33.3 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center
      width="20%">0.286 <BR>0.285 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center
      width="20%">0.008 <BR>0.013 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="20%"><B>Subtotal</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="20%"><B>100.1</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="20%"><B>0.286</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="20%"><B>0.010</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Granite <BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left
      width="20%">Proven <BR>Probable </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center
      width="20%">178.3 <BR>21.6 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center
      width="20%">0.325 <BR>0.319 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center
      width="20%">0.009 <BR>0.009 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="20%"><B>Subtotal</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="20%"><B>199.9</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="20%"><B>0.324</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="20%"><B>0.009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Gibraltar Extension <BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left
      width="20%">Proven <BR>Probable </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center
      width="20%">75.4 <BR>29.3 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center
      width="20%">0.352 <BR>0.304 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center
      width="20%">0.002 <BR>0.002 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="20%"><B>Subtotal</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="20%"><B>104.7</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="20%"><B>0.339</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="20%"><B>0.002</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left colSpan=2>Total
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="20%">459.9 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="20%">0.315 </TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="20%">0.008 </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=2 width="100%" border=0>

  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=center><B><FONT color=#ff0000>Cautionary Note to Investors
      Concerning Estimates of Measured and Indicated Resources</FONT></B> </TD></TR>
  <TR>
    <TD
      style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&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>
      <P align=justify>This section uses the terms &#145;measured resources&#146; and
      &#145;indicated resources&#146;. 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 part or all of mineral</B>
      <B>deposits in these categories will ever be converted into reserves.</B>
      </P></TD></TR></TABLE>
<P align=justify>The mineral reserves stated above are contained within the
mineral resources indicated in Table 3 below:</P>
<P align=center><B>Table 3: Gibraltar Mine Mineral Resources <BR>at 0.20% Copper
Cut-off</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; " align="center" borderColor=#000000 cellSpacing=0 cellPadding=3 width="50%" border=1>

  <TR vAlign=top>
    <TD align=left><BR><B>Category</B> </TD>
    <TD align=center width="25%"><B>Tons</B> <BR><B>(millions)</B> </TD>
    <TD align=center width="25%"><B>Cu</B> <BR><B>(%)</B> </TD>
    <TD align=center width="25%"><B>Mo</B> <BR><B>%)</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Measured </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="25%">597.7 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="25%">0.302 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="25%">0.008 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Indicated </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="25%">361.0 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="25%">0.290 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="25%">0.008 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Total</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="25%"><B>958.7</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="25%"><B>0.298</B> </TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="25%"><B>0.008</B> </TD></TR></TABLE>
<P align=justify>There are also oxide reserves, identified in both the PGE
Connector and Gibraltar pits as shown in Table 4 below. These oxide reserves are
in addition to the sulphide reserves stated in Table 2 and are contained within
the resources contained in Table 3.</P>
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<P align=center><B>Table 4: Gibraltar Mine &#150; Oxide Mineral Reserves as of
December 31, 2009 <BR>at 0.10% ASCu cut-off</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; " align="center" borderColor=#000000 cellSpacing=0 cellPadding=3 width="70%" border=1>

  <TR vAlign=top>
    <TD align=left><BR><B>Pit</B> </TD>
    <TD align=center width="25%"><B>Tons</B> <BR><B>(millions)</B> </TD>
    <TD align=center width="25%"><B>Cu</B> <BR><B>(%)</B> </TD>
    <TD align=center width="25%"><B>ASCu</B> <BR><B>(%)</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Connector </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="25%">12.7
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="25%">0.349 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="25%">0.151 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Gibraltar East </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="25%">0.5
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="25%">0.152 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="25%">0.121 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Total</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="25%"><B>13.2</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="25%"><B>0.341</B> </TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="25%"><B>0.150</B> </TD></TR></TABLE>
<P align=justify>The mineral resource and reserve estimations were completed by
Gibraltar mine staff under the supervision of Scott Jones, P.Eng.,
Vice-President, Engineering, a Qualified Person under NI 43-101 and the author
of the Gibraltar Technical Report. Mr Jones has verified the methods used to
determine grade and tonnage in the geological model, reviewed the long range
mine plan, and directed the updated economic evaluation. </P>
<P align=justify><I>Mining Operations</I></P>
<P align=justify>The Gibraltar Mine is a typical open pit operation that
utilizes drilling, blasting, cable shovel loading and large-scale truck hauling
to excavate rock. The Gibraltar Mine is planned to enable excavation of sulphide
mineralized material of sufficient grade that can be economically mined,
crushed, ground and processed to a saleable product by froth flotation. Tailings
are pumped to a storage facility.</P>
<P align=justify>Rock containing lower grade sulphide mineralization or oxide
mineralization is also mined but is not immediately processed. The lower grade
sulphide material is stockpiled for later treatment in the mill. In addition, a
portion of the low grade sulphide (waste) and all of the oxide material can be
leached with sulphuric acid, which is naturally assisted by bacterial action,
and the resultant copper sulphate solution can be processed to cathode copper in
the Gibraltar Mine&#146;s SX/EW plant. </P>
<P align=justify>A phased expansion of the mill has been underway since 2007.
Phase 1 mill construction was completed in February 2008, followed by ramp up to
the rated processing capacity of 46,000 tpd. Phase 2 is designed to increase
concentrator capacity from 46,000 to 55,000 tpd. The construction schedule for
Phase 2 was modified as a result of management&#146;s review of capital spending in
latter 2008. Improvements to the concentrator and ore handling facilities
continued through the 2009 fiscal year. The higher capacity cleaner flotation
circuit and modern regrind tower mill completed in August were fully
commissioned in mid-November providing recovery improvements. </P>
<P align=justify>As of mid March 2010, construction is approximately 95%
complete on the new in-pit 60-inch by 89-inch crusher and conveyor system which,
when completed and commissioned, will reduce operating costs and improve mine
productivity by replacing the smaller original Gibraltar crusher and supplanting
approximately three diesel-powered haulage trucks with an electrically driven
overland conveyor belt.</P>
<P align=justify>Replacement of the current single-line tailings system with a
two line system and substitution of the natural gas fired concentrate dryer with
a filter press are planned to be completed in the second and third quarter of
2010, respectively. This equipment will reduce operating cost, provide a more
stable operating platform, and will be able to manage increased volume as mill
throughput increases.</P>
<P align=justify>Detailed engineering is near completion on a Semi Autogenous
Grinding mill direct feed system which 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. Completion of construction of the direct feed system is
expected in the fourth quarter of 2010.</P>
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<P align=center>- 18 -</P>
<P align=justify><U>Production in 2009</U></P>
<P align=justify>The following table was prepared by the Company and is a
summary of the operating statistics for twelve months ending December 31, 2009.
All mining during fiscal 2009 took place in the Granite pits.</P>
<P align=center><B>Table 5: Gibraltar Production</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; " align="center" borderColor=#000000 cellSpacing=0 cellPadding=3 width="80%" border=1>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Total tons mined
      (millions)<SUP>1</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="30%">34.9
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Tons of ore milled
      (millions) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="30%">13.0
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Stripping ratio
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="30%">1.8
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Copper grade (%)
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%">0.319 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Molybdenum grade
      (%Mo) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%">0.011 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Copper recovery
      (%) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="30%">82.3
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Molybdenum
      recovery (%) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="30%">24.4
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Copper production
      (millions lb) <SUP>2</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="30%">70.3
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Molybdenum
      production (thousands lb) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="30%">629
    </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; " align="center" cellSpacing=0 cellPadding=0 width="80%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top align=left width="5%">1 </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 align=left width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top align=left width="5%">2 </TD>
    <TD>
      <P align=justify>Copper production includes concentrate and
cathode.</P></TD></TR></TABLE>
<P align=justify><U>Contracts and Markets</U></P>
<P align=justify>Gibraltar&#146;s copper concentrate has a nominal 28% copper grade
and no significant deleterious elements. Gibraltar&#146;s copper concentrate is
currently sold at prices based on London Metal Exchange (&#147;LME&#148;) quotations under
an agreement with MRI Trading AG (&#147;MRI&#148;) of Switzerland (see &#147;Material
Contracts&#148;), which includes 100% of off-take until 2011 and some opportunity for
other sales after that time. Although 100% of Gibraltar&#146;s copper concentrate is
currently sold to MRI, in the event that MRI is unable to purchase Gibraltar&#146;s
copper concentrate as provided in the MRI sales agreement, a liquid market
exists. Gibraltar copper cathode is nominally 99.9%+ pure copper, and is
currently sold under an agreement with Trafigura AG of Switzerland, which
includes provisions for 100% of the cathode production. Gibraltar also has an
agreement with Derek Raphael to treat a minimum of 75% of its molybdenum
concentrate.</P>
<P align=justify>The copper market is volatile and cyclical. Copper is a
commodity traded on the LME, the New York Commodity Exchange and the Shanghai
Futures Exchange. The price of copper as reported on these exchanges is
influenced significantly by numerous factors, including (i) the worldwide
balance of copper demand and supply, (ii) rates of global economic growth,
trends in industrial production and conditions in the housing and automotive
industries, all of which correlate with demand for copper, (iii) economic growth
and political conditions in China, which has become the largest consumer of
refined copper in the world, and other major developing economies, (iv)
speculative investment positions in copper and copper futures, (v) the
availability and cost of substitute materials and (vi) currency exchange
fluctuations.</P>
<P align=justify><U>Production Forecast</U></P>
<P align=justify>The life of mine plan covers a period of twenty two years
starting in calendar 2010 and ending in calendar 2032. The plan calls for the
mining and processing of 460 million tons of ore from four pits: Granite, Gibraltar East, Connector and Gibraltar Extension. The average
grade is estimated to be 0.315% copper and 0.008% molybdenum. The average strip
ratio over the life of the plan is 3.1:1. The concentrator is forecast to
produce 2,563 million pounds of copper in concentrate and 28.8 million pounds of
molybdenum in concentrate. The SXEW plant is expected to produce approximately
60 million pounds of copper in cathode form over the life of the mine.</P>
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<P align=center>- 19 -</P>
<P align=justify><U>Environmental Considerations</U></P>
<P align=justify>There have been no material environmental non-compliance
incidents since the mine re-opened.</P>
<P align=justify>The current Environmental Protection Permit was last amended on
April 12, 2006, and authorizes the discharge of tailings, sewage, and treated
acid mine drainage to the tailings pond; tailings, sewage, open pit and waste
dump drainage to the Gibraltar East pit.</P>
<P align=justify>Permit M-40, covering the reclamation plan and liabilities was
last amended January, 2008. The reclamation plan includes a water management,
treatment and monitoring program and establishment of vegetation on all areas in
order to protect against wind and water erosion and to meet end land use
objectives. In 2007, a decommissioning plan provided an assessment of the costs
of reclamation and ongoing water treatment which was based on a five year mine
plan. Closure costs were estimated to be $28 million, and Gibraltar has
contributed $35 million held into a Qualified Environmental Trust fund with HSBC
(Trust) Company Canada serving as a reclamation bond for the BC Government.</P>
<P align=justify>The Company was permitted by the Government of British Columbia
to release $8.9 million from the Gibraltar Mine reclamation deposit in exchange
for security on certain equipment of the Gibraltar Mine. </P>
<P align=justify>The reclamation plan and liability due to the additional
mineral reserves disclosed in the Gibraltar Technical Report will be evaluated
in the next decommissioning plan currently scheduled for 2012 or earlier if
required by the Ministry of Energy and Mines.</P>
<P align=justify>Other permit considerations relative to the additional reserves
described in the Gibraltar Technical Report may include approvals required for
route changes to the access road, hydro transmission and water management
pipeline, and these approvals will be pursued by the Company as required. </P>
<P align=justify>In 2002, Gibraltar and the Cariboo Regional District agreed to
develop a landfill site on waste dumps in an area that would not be needed for
the future operation of the mine. The landfill will provide reclamation credits
to the land it occupies, as well as revenues to support ongoing site management
costs. Construction of the landfill was initiated in June 2003 and operations
began in October 2003.</P>
<P align=justify><B>The Prosperity Project</B></P>
<P align=justify>Unless stated otherwise, information of a technical or
scientific nature related to the Prosperity Project contained in this AIF is
summarized or extracted from a technical report entitled &#147;Technical Report, on
the 344 million tonne increase in mineral reserves at the Prosperity Gold &#150;
Copper Project&#148; dated December 17, 2009 (the &#147;Prosperity Technical Report&#148;),
prepared by Scott Jones, P. Eng. filed on Taseko&#146;s profile on SEDAR at <U><FONT
color=#0000ff>www.sedar.com</FONT></U>. Mr. Jones is not independent of Taseko
by virtue of being employed by the Company as Vice-President, Engineering.</P>
<P align=justify><I>Property Description and Location</I></P>
<P align=justify>The Prosperity Project is located at latitude 51&#176; 27&#146; N and
longitude 123&#176; 37&#146; W in the Clinton Mining Division, approximately 125 km
southwest of the City of Williams Lake, British Columbia, and consists of 124 mineral claims covering the mineral rights for
approximately 94.9 square km. The process of taking the claims to lease is
currently underway. All claims are in good standing until April 2018. The claims
are 100% owned by Taseko and are not subject to any royalties or carried
interests.</P>
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<P align=center>- 20 -</P>
<P align=justify>A portion of the property has been legally surveyed as part of
the process of taking the claims to lease. As this is a relatively new project,
there are no existing environmental liabilities on the property. No permits are
required for the work (largely related to the environmental assessment process)
that is currently underway. When additional site work is required, permit
applications will be made. The Company does not hold any surface rights.</P>
<P align=justify>The property is located within territory that is the subject of
an aboriginal Rights action. The Xeni Gwet&#146;in First Nation has sought an
injunction to prevent the provincial and federal governments from issuing any
permits that would infringe on their aboriginal right to fish.</P>
<P align=justify><I>Accessibility, Climate, Local Resources, Infrastructure and
Physiography</I></P>
<P align=justify>Access from Williams Lake is via Highway 20 to Lee&#146;s Corner,
then via an all-weather main logging haulage road to the site, a total road
distance of 192km. The Canadian National railway services Williams Lake and has
rolling stock available to move copper concentrates by rail to points of sale in
North America. The City of Williams Lake is sufficiently close and is capable of
supplying goods, services, and personnel to a mine.</P>
<P align=justify>Multiple high-voltage transmission lines from the existing
Peace River hydroelectric power grid are situated 118 km east of the Prosperity
Project, a natural gas transmission pipeline is situated 112 km northeast, and
ample water is available nearby for a mining operation. </P>
<P align=justify>The Prosperity Project is located on the Fraser Plateau in the
Taseko Lakes region on the eastern side of the Chilcotin Mountain Range, which
forms part of British Columbia&#146;s Coast Mountain Range. The landscape is
characterized by the low rounded summits of the Chilcotin Range and moderately
sloping upland. The Prosperity Project is located within the Fish Creek and Fish
Lake watershed in a broad valley with slopes of moderate relief. Elevations at
the site range between 1,450 m and 1,600 m above sea level. </P>
<P align=justify>Local climatic conditions are moderated primarily by elevation,
aspect, physiography, and the proximity of the area to the Chilcotin Mountains.
The annual mean temperature at the Prosperity Project site is estimated to be
2&#186;C. The coldest months of December and January average -10&#186;C, and the warmest
months of July and August average 13&#186;C. </P>
<P align=justify><I>Prosperity Project History</I></P>
<P align=justify>Prospectors discovered mineralization in the 1930&#146;s.
Exploration continued intermittently and by a variety of operators until about
1991, and included extensive IP, magnetic and soil geochemistry surveys, and 176
percussion and diamond drill holes, totalling approximately 27,200 m. This work
helped define the Prosperity project mineralization to a depth of 200 m, and
outlined a copper-gold mineralized zone approximately 850 m in diameter.</P>
<P align=justify>In 1969, Taseko acquired the Prosperity Project and drilled 12
percussion holes totalling 1,265 m and six diamond drill holes totalling 1,036 m
immediately to the south of the area where Phelps had explored, and Taseko
discovered significant tonnage grading 0.25% to 0.30% copper.</P>
<P align=justify>In 1970, Nittetsu Mining Company optioned the Prosperity
Project from Taseko Mines Limited and completed 236 m of core drilling in 4
holes before returning the property to Taseko. In 1972, Taseko tested the property with two additional diamond drill holes
totalling 156 m. Quintana Minerals Corporation optioned the property from Taseko
in 1973 and completed a 23-hole diamond drill program totalling 4,705 m during
1973-74. </P>
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<P align=center>- 21 -</P>
<P align=justify>Bethlehem Copper Corp. optioned the Prosperity Project in 1979
and by 1981 had completed 3,225 m of percussion drilling in 36 holes and 10,445
m of diamond drilling in 37 holes. Following the corporate merger of Bethlehem
Copper Corp. and Cominco Ltd., Cominco acquired the Bethlehem option agreement
on the Prosperity Project. Cominco continued to drill the property, completing
1,620 m of percussion drilling in 19 holes and 3,707 m of diamond drilling in 29
holes over the period 1982 to 1989.</P>
<P align=justify>Cominco work programs also included 50 line km of induced
polarization, magnetic and soil geochemical surveys. The induced polarization
survey outlined a 2 km by 3 km east-west trending zone of high chargeability.
Also undertaken was a limited metallurgical testwork program which focused on
achieving high copper recovery, with little emphasis on gold recovery, using a
conventional copper flotation. </P>
<P align=justify>After a period of disagreement with Cominco which included a
Court process, Taseko acquired 100% of the Prosperity Project free whatsoever of
any royalties or third party interests in 1993 through settlement
agreements.</P>
<P align=justify><I>Geological Setting</I></P>
<P align=justify>The Prosperity Project is located within the western-most
portion of the Intermontane Belt at the boundary between the Intermontane and
Coast morphologic belts. The surrounding area is underlain by poorly exposed,
Late Paleozoic to Cretaceous litho tectonic assemblages which have been intruded
by plutons of Mid-Cretaceous to Early Tertiary age. The main Coast Plutonic
Complex is 50 km southwest of the Prosperity Project area.</P>
<P align=justify>The Yalakom Fault is the major fault in the region and lies to
the southwest of the deposit on the Prosperity Project. Estimates of Eocene
dextral strike-slip offsets for the Yalakom Fault have been postulated variously
as ranging from 80 to 190 km, 125 to 175 km or 115 km. It may have imparted some
related structural controls that are important to the localization of
mineralization at the deposit.</P>
<P align=justify><I>Mineralization</I></P>
<P align=justify>The Prosperity Project hosts a large porphyry gold-copper
deposit. The deposit is predominantly hosted in Cretaceous andesitic
volcaniclastic and volcanic rocks. In the western portion of the deposit, the
host rocks have been intruded by the multi-phase, steeply dipping Fish Creek
Stock. The stock is surrounded by an east-west trending, south dipping swarm of
subparallel quartz-feldspar porphyritic dykes. The stock and dykes comprise the
Late Cretaceous Fish Lake Intrusive Complex that is spatially and genetically
related to the deposit. Post mineralization porphyritic diorite occurs as narrow
dykes that cross-cut all host rocks. The central portion of the deposit is cut
by two major faults, striking north-south and dipping steeply to the west.</P>
<P align=justify>Pyrite and chalcopyrite are the principal sulphide minerals in
the deposit on the Prosperity Project. They are uniformly distributed in
disseminations, fracture fillings, veins and veinlets and may be accompanied by
bornite and lesser molybdenite and tetrahedrite-tenantite. Native gold occurs as
inclusions in and along microfractures with copper-bearing minerals and
pyrite.</P>
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<P align=center>- 22 -</P>
<P align=justify><I>Exploration</I></P>
<P align=justify>Up to 1991, exploration programs at the Prosperity Project
included extensive IP and magnetic geophysical and soil geochemical surveys, and
176 percussion and diamond drill holes totalling approximately 27,100 m. This
work helped define the Prosperity Project mineralization to a depth of 200 m,
and outlined a gold-copper mineralized zone approximately 850 m in diameter.</P>
<P align=justify>In 1991 Taseko drilled 10 holes totalling 7,506 m in a &#147;cross&#148;
pattern to test the core of the deposit on the Prosperity Project over a
north-south distance of 550 m. All of the holes intersected continuous
significant copper and gold grades and extended the mineralization to 810m below
surface. A scoping-level metallurgical testwork program was completed which
demonstrated that acceptable gold and copper recoveries could be achieved by
bulk sulphide flotation followed by regrinding and conventional copper
flotation. Baseline environmental and monitoring studies were initiated by the
Company. </P>
<P align=justify>Diamond drilling continued in 1992, and by the end of the year
an additional 116 HQ and NQ diameter vertical drill holes totalling 60,558 m had
been drilled, expanding the deposit to 1400 m east-west, 600 m north-south and
to 850 m below surface.</P>
<P align=justify>Subsequent to 1993, the Company completed a 12 hole (4,605 m)
inclined core drilling program in 1994 to investigate the distribution of
fracture controlled gold and copper mineralization in the deposit. In addition,
22 holes (3,171 m) were drilled to investigate geotechnical conditions in the
proposed Prosperity Project development areas.</P>
<P align=justify>In 1996 and 1997, an additional 107 holes (49,465 m) were
completed in order to upgrade the confidence limits of the deposit. Of this
total, 20 holes (2,203 m) were drilled vertically and 87 holes (47,262 m) were
inclined. These holes significantly increased the density of pierce points in
the deposit and added to the geotechnical and geochemical characterization of
the rock in the deposit. </P>
<P align=justify>Over the 34-year period from 1963 to 1997, a total of 154,631 m
has been drilled in 452 holes on the Prosperity Project. Of this total, 273
holes (83,453 m) were drilled vertically and 174 holes (71,178 m) were inclined.
Sizes of cored holes have included BQ, HQ, and NQ totalling 148,322 m, with an
average drill spacing of 70 m. The balance of 6,309 m is from percussion
drilling. There has been no production from the Prosperity Project.</P>
<P align=justify>Work on the Prosperity Project was deferred from 2000-2005
first due to low metal prices and then later as the Company turned its attention
to re-starting the Gibraltar Mine. In November 2005, work was reactivated on the
Prosperity Gold-Copper Project. A pre-feasibility level study was completed in
the first quarter of fiscal 2007, and a full feasibility study completed in
September 2007.</P>
<P align=justify><I>Sampling and Analysis </I></P>
<P align=justify>A total of 63,937 drill core samples and 1,548 percussion
samples have been taken for analysis on the Prosperity Project since 1969. Prior
to 1991, a total of 6,905 were taken with an average length of three meters.
From 1991 &#150; 1998, 58,580 core samples were taken for assay with an average
length of two meters except in instances where this was impractical. </P>
<P align=justify>During 1991-1994, drill core was mechanically split, one half
of which was submitted for preparation and analysis. Of the total meterage
drilled during 1996-97, 42% was subject to whole core sampling, 44% was sampled
as sawn half-core, 5% of samples comprised the larger portion of core sawn
80:20. The remaining 9% was cored overburden, which was not generally sampled.
In 1998 the samples were half sawn core and the remaining sample was put back in
drilling order in the core box. Drill core remaining after sampling was returned to the core boxes, which were
racked and stored at the Prosperity Project Site.</P>
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<P align=center>- 23 -</P>
<P align=justify>In 1991-1998 the drill core was boxed at the drill rig and
transported twice daily by company truck to the logging, sampling and sample
preparation compound at the Prosperity site. The core was geologically and
geotechnically logged, given QA/QC designations, photographed and sampled under
the supervision of Taseko geological and engineering staff. Samples were placed
in shipping sacks and taken by company truck to Williams Lake and then shipped
by commercial carriers to the Vancouver area analytical laboratories.</P>
<P align=justify>Taseko implemented a QA/QC program after taking over the
Prosperity project in 1991. This was in addition to the QA/QC procedures used
internally by the analytical laboratories. The results of this program indicate
that analytical results are of high quality and suitable for use in detailed
modeling and resource evaluation studies.</P>
<P align=justify>Taseko verified the post-1990 portion of the Prosperity Project
drill hole database manually in 1992 and 1998, and another independent
comprehensive audit and verification of the geology and assay results in 1998
found the geological work for the Prosperity Project to be done in a
professional manner and according to industry standard.</P>
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<P align=center>- 24 -</P>
<P align=justify><I>Reserves and Resources</I></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=2 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><B>Cautionary Note to Investors Concerning Reserve
      Estimates</B> </TD></TR>
  <TR>
    <TD
      style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&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>
      <P align=justify>The following mineral reserves have been estimated in
      accordance with NI 43-101, as required by Canadian securities regulatory
      authorities. For United States reporting purposes, SEC Industry Guide 7
      under the Exchange Act, as interpreted by Staff of the SEC, applies
      different standards in order to classify mineralization as a reserve. As a
      result, the definitions of proven and probable reserves used in NI 43-101
      differ from the definitions in the SEC Industry Guide 7. Under SEC
      standards, mineralization may not be classified as a &#147;reserve&#148; unless the
      determination has been made that the mineralization could be economically
      and legally produced or extracted at the time the reserve determination is
      made. Among other things, all necessary permits would be required to be in
      hand or issuance imminent in order to classify mineralized material as
      reserves under the SEC standards. Accordingly, mineral reserve estimates
      contained in this AIF may not qualify as &#147;reserves&#148; under SEC standards.
      In addition, disclosure of &#147;contained ounces&#148; is permitted disclosure
      under Canadian regulations; however, the SEC only permits issuers to
      report reseves in ounces, and requires reporting of mineralization that
      does not qualify as reserves as in place tonnage and grade without
      reference to unit measures. </P></TD></TR></TABLE>
<P align=justify>The Company and its consultants carried out progressive
engineering, metallurgical and environmental studies over the period 1998 to
2009, including a feasibility level study of the project in 2000, a mill
redesign and project cost review in 2006, and a pre-feasibility study in
2006.</P>
<P align=justify>In 2007 a feasibility study update incorporated the 2000
Feasibility Study, 2006 Mill Redesign, additional revisions to the processing
plant and infrastructure, updates to the tailings facility design and pit
geotechnical analysis, and revisions to the design and scheduling of the open
pit.</P>
<P align=justify>In 2008 Taseko worked with various consultants to investigate
value engineering opportunities, energy efficiency, and operating ease in
various areas of the concentrator and support infrastructure.</P>
<P align=justify>In 2009 Taseko incorporated different long term prices for
copper and gold prices from those assumed in 2007 and re-evaluated the reserves
on the basis of $1.65/lb Cu and $650/oz Au. The resulting mineral reserves are
shown in Table 6.</P>
<P align=center><B>Table 6: Prosperity Mineral Reserves <BR>at CDN$5.50 NSR/t
Pit-Rim Cut-off</B></P>

<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD align=center><B>Category</B> <BR><BR></TD>
    <TD align=center width="16%"><B>Tonnes</B> <BR><B>(millions)</B> <BR></TD>
    <TD align=center width="16%"><B>Gold</B> <BR><B>(g/t)</B> <BR></TD>
    <TD align=center width="16%"><B>Copper</B> <BR><B>(%)</B> <BR></TD>
    <TD align=center width="16%"><B>Recoverable</B> <BR><B>Gold Ounces</B>
      <BR><B>(millions)</B> </TD>
    <TD align=center width="16%"><B>Recoverable</B> <BR><B>Copper Pounds</B>
      <BR><B>(billions)</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center>Proven <BR>Probable </TD>
    <TD align=center width="16%">481 <BR>350 </TD>
    <TD align=center width="16%">0.46 <BR>0.35 </TD>
    <TD align=center width="16%">0.26 <BR>0.18 </TD>
    <TD align=center width="16%">5.0 <BR>2.7 </TD>
    <TD align=center width="16%">2.4 <BR>1.2 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center>Total </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="16%">831
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="16%">0.41
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="16%">0.23
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="16%">7.7
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="16%">3.6
    </TD></TR></TABLE><BR>
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<P align=center>- 25 -</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=2 width="100%" border=0>

  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=center><B><FONT color=#ff0000>Cautionary Note to Investors
      Concerning Estimates of Measured and Indicated Resources</FONT></B> </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 section uses the terms &#145;measured resources&#146; and
      &#145;indicated resources&#146;. 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 part or all of mineral</B>
      <B>deposits in these categories will ever be converted</B>
  </P></TD></TR></TABLE>
<P align=justify>The mineral resources shown in Table 7 include the mineral
reserves shown in Table 6. Resource estimates were based on a copper cut-off of
0.14% .</P>
<P align=center><B>Table 7: Prosperity Mineral Resources <BR>at 0.14% copper
cut-off &#150; September 2009</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; " align="center" borderColor=#000000 cellSpacing=0 cellPadding=3 width="80%" border=1>

  <TR vAlign=top>
    <TD align=left><B>Category</B> <BR></TD>
    <TD align=center width="25%"><B>Tonnes</B> <BR><B>(millions)</B> </TD>
    <TD align=center width="25%"><B>Gold</B> <BR><B>(g/t)</B> </TD>
    <TD align=center width="25%"><B>Copper</B> <BR><B>(%)</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Measured <BR>Indicated </TD>
    <TD align=center width="25%">547.1 <BR>463.4 </TD>
    <TD align=center width="25%">0.46 <BR>0.34 </TD>
    <TD align=center width="25%">0.27 <BR>0.21 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Total </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="25%">1,010.5 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="25%">0.41
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="25%">0.24
</TD></TR></TABLE>
<P align=justify><I>Mining Operations</I></P>
<P align=justify>The proposed mine plan utilizes a large-scale conventional
truck shovel open pit mining and milling operation. Following a one and a half
year pre-strip period, total material mined from the open pit over years 1
through 31 averages 170,000 tonnes/day at a life of mine strip ratio of 1.5:1. A
declining net smelter return cut-off is applied to the mill feed, which defers
lower grade ore for later processing. The stockpiled ore is processed in the
final years of the mine plan. </P>
<P align=justify>The Prosperity processing plant has been designed with a
nominal capacity of 70,000 tonnes per day. The plant consists of a single 12-m
diameter SAG mill, two 7.9 -m diameter ball mills, followed by processing steps
that include bulk rougher flotation, regrinding, cleaner flotation, thickening
and filtering to produce a copper-gold concentrate. Expected life-of-mine
metallurgical recovery is 87% for copper and 69% for gold, with annual
production averaging 110 million pounds copper and 234,000 ounces gold over the
33 year mine life. </P>
<P align=justify>The copper-gold concentrate will be hauled with highway trucks
to an expanded load-out facility at the Gibraltar Mines Ltd.&#146;s existing facility
near Macalister for rail transport to various points of sale, but mostly through
the Port of Vancouver for shipment to smelters/refineries around the world. </P>
<P align=justify>Power will be supplied via a new 124 km long, 230 kV
transmission line from Dog Creek on the BC Hydro Grid. Infrastructure would also
include the upgrade of sections of the existing road to the site, construction
of a short spur to the minesite, an on-site camp, equipment maintenance shop,
administration office, concentrator facility, warehouse, and explosives
facilities. </P>
<P align=justify>Based on this update, the project would employ up to 460
permanent hourly and staff personnel. In addition, approximately 60 contractor
personnel would be employed in areas including catering, concentrate haulage,
explosives delivery, and bussing. </P>
<P align=justify>Key project metrics include: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>3.6B pounds of recoverable copper
  <LI>7.7M ounces of recoverable gold </LI></UL>
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<P align=center>- 26 -</P>
<UL style="TEXT-ALIGN: justify">
  <LI>33 year mine life at a milling rate of 70,000 tonnes/day
  <LI>Life of mine waste to ore strip ratio of 1.5
  <LI>Total pre-production capital cost of CDN$814 million
  <LI>Site operating cost of CDN$7.51 per tonne milled over the life of mine
  <LI>Total operating costs net of byproduct credits of US$0.59/lb Cu </LI></UL>
<P align=justify><I>Financial Analysis</I></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=2 width="100%" border=0>

  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>
      <P align=justify>The Prosperity Technical Report was prepared to quantify
      the Prosperity project&#146;s capital and operating cost parameters and to
      determine the project&#146;s likelihood of feasibility. The capital and
      operating cost estimates that were used have been developed based on
      detailed capital cost to production level relationships. </P></TD></TR>
  <TR>
    <TD
      style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&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>
      <P align=justify>The following are the principal risk factors and
      uncertainties which, in management&#146;s opinion, are likely to most directly
      affect the ultimate feasibility of the Prosperity project. The mineralized
      material at the Prosperity project is currently classified as a measured
      and indicated resource, and a portion of it qualifies under Canadian
      mining disclosure standards as a proven and probable reserve, but readers
      are cautioned that no part of the Prosperity project&#146;s mineralization is
      yet considered to be a reserve under US mining standards as all necessary
      mining permits would be required or their issuance imminent in order to
      classify the project&#146;s mineralized material as an economically exploitable
      reserve. Although final feasibility work has been done to confirm the mine
      design, mining methods and processing methods assumed in the Prosperity
      Technical Report, construction and operation of the mine and processing
      facilities depend on securing environmental and other permits on a timely
      basis. There can be no assurance that any other required permits can be
      secured or secured on a timely basis. Although costs, including design,
      procurement, construction and on-going operating costs and metal
      recoveries have been established at a level of detail required for a
      Prosperity Technical Report, these could be materially different from
      those contained in the Prosperity Technical Report. There can be no
      assurance that these infrastructure facilities can be developed on a
      timely and cost-effective basis. Energy risks include the potential for
      significant increases in the cost of fuel and electricity. The Prosperity
      Technical Report assumes specified, long-term prices levels for gold and
      copper. The prices of these metals have historically been volatile, and
      the Company has no control of or influence on the prices, which are
      determined in international markets. There can be no assurance that the
      price of gold and copper will continue at current levels or that these
      prices will not decline below the prices assumed in the Prosperity
      Technical Report. Prices for gold and copper have been below the price
      ranges assumed in Prosperity Technical Report at times during the past ten
      years, and for extended periods of time. The project will require major
      financing, probably a combination of debt and equity financing. Although
      interest rates are at historically low levels, there can be no assurance
      that debt and/or equity financing will be available on acceptable terms.
      Other general risks include those ordinary to very large construction
      projects, including the general uncertainties inherent in engineering and
      construction cost, the need to comply with generally increasing
      environmental obligations, and accommodation of local and community
      concerns. </P></TD></TR></TABLE>
<P align=justify><I>Environmental Assessment</I></P>
<P align=justify>The Ministry of Environment of British Columbia accepted
Taseko&#146;s Environmental Assessment report on March 13, 2009 and proceeded with an
Environmental Assessment Office (&#147;EAO&#148;) led review of this Project in a
coordinated manner with the Canadian Environmental Assessment Agency (&#147;CEAA&#148;) on
their respective provincial and federal environmental assessment processes.</P>
<P align=justify>On January 14, 2010, Taseko received the environmental
assessment certificate for the Prosperity Project from the Province. The
Provincial Mines Act permit application is planned to be submitted to the
Ministry of Energy, Mines, and Petroleum Resources in April 2010.</P>
<P align=justify>The federal process, conducted by a three-person Panel
operating under defined Terms of Reference are required to complete their work
in a timely and efficient manner. The hearings are scheduled to commence in late
March and be completed in early May of 2010. Following conclusion of the
hearings, the Panel will submit their findings to the Federal Minister of
Environment for a decision. This process is expected to be completed by mid
2010.</P>
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<P align=center>- 27 -</P>
<P align=justify><B>Non Material Projects</B></P>
<P align=justify><B>The Harmony Project</B></P>
<P align=justify>Gibraltar Mines Ltd, a subsidiary of Taseko Mines Limited,
acquired the Harmony gold project in October 2001 through a transaction with
Continental Minerals Corporation (formerly Misty Mountain Gold Ltd.) for
consideration of $2.23 million in cash and the issuance of preferred shares in
Gibraltar&#146;s capital stock. Details of the exchange terms of these preferred
shares can be found in the 2003 Annual Information Form filing by Taseko at
<U><FONT color=#0000ff>www.sedar.com </FONT></U>and in the notes to its December
31, 2009 audited financial statements.</P>
<P align=justify>As there has not been significant exploration or development
conducted on the Harmony project for several years, due to historically low gold
prices the Harmony Gold Property was written down to a nominal value in 2004.
</P>
<P align=justify><I>Location, Access and Infrastructure</I></P>
<P align=justify>The Harmony project is located at latitude 53<SUP>o </SUP>31&#146; N
and longitude 132<SUP>o </SUP>13&#146; W in the Skeena Mining Division, on Graham
Island, Queen Charlotte Islands (also known as Haida Gwaii), on the
north-western coast of British Columbia, Canada.</P>
<P align=justify><I>Property Description</I></P>
<P align=justify>The Harmony project comprises of 58 mineral claims and 177
square km.</P>
<P align=justify><I>Exploration History</I></P>
<P align=justify>Prospectors discovered mineralization at Harmony in 1970. The
project claims were optioned by various companies during the period 1970 to
1975, which carried out geological mapping, geochemical surveys and minor
drilling. Consolidated Cinola Mines Ltd. acquired the ground in 1977 and, with
partners, carried out detailed drilling totalling 30,116 meters in 231 holes by
1984. In 1981, 465 meters of an underground drift and crosscuts were excavated
for a metallurgical bulk sample. A 45 tonne per day pilot mill was established
to treat about 5,200 tonnes of material and in 1982 a feasibility study for a
10,000-15,000 tonnes per day operation was completed. From 1986 to 1988, City
Resources drilled 83 diamond drill holes and 64 reverse-circulation drill holes,
totalling 13,356 meters, and completed 117.6 meters of underground development
to obtain a bulk sample, conducted bench scale metallurgical testing, and
developed open pit scenarios for the project. Barrack Gold of Australia acquired
City Resources and the project in 1989, however Barrack subsequently was put
into bankruptcy and City Resources was acquired in the early 1990&#146;s by a new
group of investors who renamed the company to Misty Mountain Gold Ltd. From 1989
&#150; 1999, additional drilling, metallurgical and engineering studies were carried
out at the Harmony project.</P>
<P align=justify><I>Geology and Mineralization</I></P>
<P align=justify>The Harmony project hosts the Specogna epithermal gold deposit,
controlled by the Sandspit fault. Dacite dykes of Tertiary age have intruded
along the fault. Contemporaneous, pervasive silicification, hydrothermal
brecciation, stockwork and banded quartz veining and gold mineralization have
developed along the hanging wall of the fault. This extends for a strike
distance of at least 800 meters, eastwards from the fault at least 200 meters and to a depth of at least
240 meters. Pyrite and marcasite are the dominant metallic minerals. Gold occurs
as native gold and electrum, which are commonly visible. Silver is also present
as an alloy with gold.</P>
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<P align=center>- 28 -</P>
<P align=justify><I>Sampling and Analysis</I></P>
<P align=justify>Details of sampling and analysis of drill cores are described
in the 2004 Annual Information Form. Sample pulps are stored in the Company&#146;s
warehouse at Port Kells, BC. Drill core is stored at site.</P>
<P align=justify><I>Estimates of Mineralization</I></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=2 width="100%" border=0>

  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=center><B><FONT color=#ff0000>Cautionary Note to Investors
      Concerning Estimates of Measured and Indicated Resources</FONT></B> </TD></TR>
  <TR>
    <TD
      style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&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>
      <P align=justify>This section uses the terms &#145;measured resources&#146; and
      &#145;indicated resources&#146;. 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 part or all of mineral</B>
      <B>deposits in these categories will ever be converted</B>
  </P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=2 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><B><FONT color=#ff0000>Cautionary Note to Investors
      Concerning Estimates of Inferred Resources</FONT></B> </TD></TR>
  <TR>
    <TD
      style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&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>
      <P align=justify>This section uses the term &#147;inferred resources&#148;. We
      advise investors that while this term is recognized and required by
      Canadian regulations, the SEC does not recognize it. &#147;Inferred resources&#148;
      have a great amount of uncertainty as to their existence, and great
      uncertainty as to their economic and legal feasibility. It cannot be
      assumed that all or any part of 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. Mineral resources that are not mineral reserves do not have
      demonstrated economic viability. None of the following mineralization has
      been demonstrated to be ore nor is considered to be a mineral reserve.
      <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. See
      &#147;Risk Factors&#148;.</B> </P></TD></TR></TABLE>
<P align=justify>In 2001, measured and indicated resources were estimated by the
Company based on various reports to be 64 million tonnes grading 1.53 grams
Au/tonne, containing approximately 3 million ounces of gold. There were also
inferred resources estimated of 21 million tonnes grading 1.04 grams Au/tonne.
The estimates were done at a 0.60 grams Au/tonne cut-off.</P>
<P align=justify><I>Aboriginal (or &#147;First Nations&#148;) Issues</I></P>
<P align=justify>The Queen Charlotte Islands-Haida Gwaii, including the area
surrounding the Harmony Gold Project, is subject to aboriginal peoples&#146; land
claims. Aboriginal land claims are subject to the B.C. Treaty Commission
Legislation and the B.C. Treaty Commission, both established in 1993.</P>
<P align=justify><I>Plans for 2010</I></P>
<P align=justify>In late 2007, after completion of the Queen Charlotte-Haida
Gwaii Land and Resource Management Plan designated the area in which the Harmony
project is located as a mineral development zone, Taseko initiated a review of
the metallurgical flow sheet and prior mine development planning to establish
further work programs. The Harmony project is being maintained in good standing.
Taseko is considering initiating a pre-feasibility level study in 2010 of
Harmony to further evaluate the project.</P>
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<P align=center>- 29 -</P>
<P align=justify><B>The Aley Niobium Project</B></P>
<P align=justify><I>Property Acquisition</I></P>
<P align=justify>In June 2007, Taseko acquired 100% of the Aley niobium project
in northern British Columbia through the acquisition of all the issued and
outstanding shares in the capital of a private company, for a total cash
consideration of $1,500,000 and 894,730 common shares then valued at $2,970,000.
Taseko purchased the residual net smelter royalty for a total cash consideration
of $300,000 and the issuance of units having a value at the time of $835,200
(consisting of 240,000 common shares and 120,000 warrants).</P>
<P align=justify>Niobium is a metal used in making high strength steels required
in the manufacture of automobiles, bridges, pipes, jet turbines and other high
technology applications. The metal is currently selling for $30/kg and the
market is growing at 5-8% per year. Currently, the world supply is dominated by
only two producers: CBMM, a Brazilian miner and Iamgold which operates the
Niobec Mine in Quebec.</P>
<P align=justify><I>Location, Access and Infrastructure</I></P>
<P align=justify>The property is located in the Omineca Mining Division in
British Columbia, Canada, centred at Latitude 56 degrees 27 minutes north and
longitude 123 degrees 13 minutes west. Logging roads from Mackenzie, BC lead to
the Ospika Logging Camp on the east side of Williston Lake. The property is
located near the shore of the lake, about 30 km from the Ospika Camp and is
currently accessed via helicopter. </P>
<P align=justify><I>Property Description</I></P>
<P align=justify>The Aley project consists of 13 contiguous claims that cover
5,668 hectares.</P>
<P align=justify><I>Aley Project History</I></P>
<P align=justify>A previous operator identified six zones from surface
exploration, which included mapping, sampling and trenching. Twenty holes,
totalling 3,058 meters were drilled in 1985-86. Of these, 16 were drilled in the
Saddle, Saddle West and Central zones.</P>
<P align=justify>In 2004, another operator took samples from trenches for
metallurgical testing. Approximately 1200 kilograms of material was collected
from three sites &#150; two in the Central zone and one from the Saddle zone. Sample
analysis was done by Process Research Associates (PRA), and test work was
similar to that developed for the Niobec mine in Quebec. The test work included
de-sliming, magnetic separation, carbonate rougher flotation, niobium rougher
and scavenger flotation, and the first and second niobium rougher and cleaner
flotation stages. Enough work was completed to bench mark reagent use and
operating conditions for unit processes. The preliminary work indicated that
recoveries of approximately 65% were achievable.</P>
<P align=justify><I>Geology</I></P>
<P align=justify>The Aley project hosts an ovoid, 4.4 -km diameter carbonatite
complex that intruded Cambro-Ordovician sedimentary rocks in mid Mississippian
time. Two major units &#150; an outer quartz-albite syenite and an inner carbonatite
core &#150; define the complex. The syenite comprises massive units and breccias, and
the carbonatite has both dolomite and calcite phases. Niobium (Nb) occurs in the
mineral pyrochlore, as crystals that precipitated from the carbonatite magmas,
and has also been altered to other niobium bearing minerals such as fersmite
(Nb-oxide) and columbite (Fe-bearing Nb-Tantalum oxide). Niobium mineralization
occurs in subvertical to moderately inclined bands that probably formed at the
edges of the magma chamber, and which were elongated during intrusion into the
sedimentary rocks.</P>
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<P align=center>- 30 -</P>
<P align=justify>Of the six known mineralized zones, the best results were
derived from the Saddle, Saddle West (which appears to be an offshoot of the
Saddle zone) and Central zones. The Saddle/Saddle West zone appears to be
fersmite/pyrochlore rich whereas the Central zone hosts columbite mineralization
associated with magnetite. </P>
<P align=justify><I>Recent Exploration</I></P>
<P align=justify>Taseko completed an initial exploration program on the Aley
deposit in 2007 that included 11 diamond drill holes to check the results of the
1985-86 drilling program and to plan for the next phase of exploration work. No
work was done on the Aley project in 2008 and the Aley project is being
maintained in good standing. The Company is considering additional exploration
work in 2010 to advance this project.</P>
<P align=justify><B>Risk Factors</B></P>
<P align=justify>There are a number of risks that may have a material and
adverse impact on the future operating and financial performance of Taseko and
could cause the Company&#146;s operating and financial performance to differ
materially from the estimates described in forward-looking statements relating
to the Company. </P>
<P align=justify><I>Volatility in Metals Prices</I></P>
<P align=justify>The profitability of the Gibraltar Mine and the financial
results, exploration, development and mining activities on the Company&#146;s other
properties, are directly related and sensitive to the market price of copper,
gold, molybdenum and other metals. Metal prices fluctuate widely and are
affected by numerous factors beyond the Company&#146;s control, including global
supply and demand, expectations with respect to the rate of inflation, the
exchange rates of the United States dollar to other currencies, interest rates,
forward selling by producers, production and cost levels in major producing
regions, global or regional political, economic or financial situations and a
number of other factors such as the sale or purchase of commodities by various
commodity traders, production costs of major mineral producing countries and the
cost of substitutes.</P>
<P align=justify><I>Financing</I></P>
<P align=justify>The Company has been successful at financing its projects and
operations over the years. However, the Company&#146;s ability to continue its
exploration, assessment, development and operational activities will depend on
the resource industry generally, which is cyclical in nature, and which may, in
turn, affect the Company&#146;s ability to attract financing, including joint venture
financing, debt or bank financing, equity financing or production financing
arrangements. Failure to obtain, or difficulty or delay in obtaining, requisite
financing could result in delay of certain projects or postponement of further
exploration, assessment or development of certain properties or projects.
Financing through the issuance of equity will result in dilution of existing
shareholders.</P>
<P align=justify><I>Taseko&#146;s Prosperity Project Risks</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. The Company expects the Federal
environmental assessment process to be complete by mid 2010. Applications for
Provincial permits are being prepared and are expected to be submitted in April
2010. Failure to obtain such certificates and permits in a timely manner or at
all will delay or even lead to abandonment of the Prosperity Project which would
likely negatively affect the Company&#146;s share price.</P>
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<P align=center>- 31 -</P>
<P align=justify>Furthermore, the feasibility assumes specified, long-term price
levels for gold and copper. The prices of these metals have historically been
volatile, and the Company has no control of or influence on its price, which is
determined in international markets. There can be no assurance that the price of
gold or copper will remain at current levels or that it will not decline below
the prices assumed in the feasibility study. </P>
<P align=justify>The Prosperity Project will require substantial financing,
including a possible combination of debt and equity financing. There can be no
assurance that debt and/or equity financing will be available on acceptable
terms. Other general risks include those typical of very large construction
projects, including the general uncertainties inherent in engineering and
construction costs, the need to comply with generally increasing environmental
regulation, and accommodation of local and community concerns. The economics of
the feasibility study are sensitive to the US Dollar and Canadian Dollar
exchange rate, and this rate has been subject to large fluctuations in the last
several years.</P>
<P align=justify><I>Increased Costs Could Affect Profitability</I></P>
<P align=justify>The cash cost of production is frequently subject to great
variation from one year to the next due to a number of factors, such as changing
strip ratios, ore grade, metallurgy, cost of supplies and services (for example,
electricity and fuel) and the exchange rate of supplies and services denominated
in foreign currencies. If these costs used in connection with the Company&#146;s
operations were to increase significantly, and remain at such levels for a
substantial period, the Company&#146;s cash flows from operations may be negatively
affected. The Company prepares estimates of future production and unit cash
costs of production annually. No assurance can be given that such estimates will
be achieved. Failure to achieve production or cost estimates or material
increases in operating or capital costs could have an adverse impact on the
Company&#146;s future cash flows, profitability, results of operations and financial
condition.</P>
<P align=justify><I>Taseko&#146;s Harmony Project and Aley Project Contain No Known
Reserves of Ore</I></P>
<P align=justify>Although there are known bodies of mineralization on the
Harmony and Aley Projects, there are currently no known reserves or body of
commercially viable ore and additional work is required before Taseko can
ascertain if any mineralization may be economic. Exploration for minerals is a
speculative venture necessarily involving substantial risk. If the expenditures
Taseko makes on these properties do not result in discoveries of commercial
quantities of ore, the exploration and acquisition expenditures will be written
off and the value of Taseko stock could be negatively impacted. Under SEC
reserve recognition rules, the Prosperity Project does not contain any
reserves.</P>
<P align=justify><I>Exchange Rate Risk</I></P>
<P align=justify>The Company is subject to currency exchange rate risk because
prices of copper and molybdenum are denominated in United States dollars and,
accordingly, the Company&#146;s revenues will be received in United States dollars.
The Company&#146;s expenses are almost entirely denominated in Canadian dollars. The
Company currently does not engage in foreign exchange hedging. Any strengthening
in the Canadian dollar will negatively impact the profitability of the Company&#146;s
mining operations. </P>
<P align=justify><I>Uncertain Project Realization Values</I></P>
<P align=justify>The Company annually undertakes a detailed review of the
life-of-mine plans for its operating properties and an evaluation of the
Company&#146;s portfolio of development projects, exploration projects and other
assets. The recoverability of the Company&#146;s carrying values of its operating and
development properties are assessed by comparing carrying values to estimated
future net cash flows from each property.</P>
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<P align=center>- 32 -</P>
<P align=justify>Factors which may affect carrying values include, but are not
limited to: copper, molybdenum and gold prices; capital cost estimates; mining,
processing and other operating costs; grade and metallurgical characteristics of
ore; and mine design and timing of production. In the event of a prolonged
period of depressed copper prices, the Company may be required to take
additional material write-downs of its operating and development properties.</P>
<P align=justify><I>General Mining Risks </I></P>
<P align=justify>Mining is an inherently risky business with large capital
expenditures and cyclical metals markets. Factors beyond the control of Taseko
will affect the marketability of any minerals discovered and mined. The mining
industry in general is intensely competitive and there is no assurance that,
even if commercial quantities of ore are discovered at the Prosperity Project
and the Harmony Project, a profitable market will exist for the sale of minerals
produced by Taseko. Factors beyond the control of Taseko may affect the
marketability of any substances discovered. Metal prices, in particular copper,
molybdenum and gold prices, have fluctuated widely in recent years. Prices are
determined in international markets over which the Company has no influence.</P>
<P align=justify>The operations of Taseko may require licenses and permits from
various governmental authorities. There can be no assurances that Taseko will be
able to obtain all necessary licenses and permits that may be required to carry
out exploration, development and operations at its projects.</P>
<P align=justify>Although the Company maintains high environmental standards for
all of its projects, there are almost always public concerns about new mining
projects and any significant public opposition to the Prosperity Project will
increase the likelihood that its development is delayed or prevented. </P>
<P align=justify>Taseko also competes with many companies possessing far greater
financial resources and technical facilities for the acquisition of mineral
concessions, claims, leases and other mineral interests, as well as for the
recruitment and retention of qualified employees.</P>
<P align=justify>Typical mining risks are also that estimated reserves are not
of the size or grade estimated and adverse geological or ground conditions,
adverse weather conditions, potential labour problems, and availability and cost
of equipment procurement and repairs can impact operations.</P>
<P align=justify><I>Taseko&#146;s Share Price is Volatile</I></P>
<P align=justify>In recent years, the market price of a publicly traded stock,
especially a resource issuer like Taseko, has experienced a high level of price
and volume volatility. Taseko&#146;s shares have ranged between $0.36 and $20.00 in
the last 18 years and between approximately $6.28 and $0.69 in the last three
years.</P>
<P align=justify>The wide fluctuation in market prices of securities may not
necessarily be related to the operating performance, underlying asset values or
prospects of the Company. Other factors impacting share prices may include the
strength of the economy, market perceptions of the attractiveness of particular
industries, and the breadth of the public market for the stock. The price of the
securities of the Company is also likely to be significantly affected by
short-term changes in commodity prices, other precious metal prices or other
mineral prices, currency exchange fluctuations and the political environment.
The effect of these and other factors on the market price of the common shares
on the TSX and the NYSE Amex suggests that Taseko&#146;s shares will continue to be
volatile.</P>
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<P align=center>- 33 -</P>
<P align=justify><I>Environmental Considerations</I></P>
<P align=justify>The estimation of the existing reclamation liability related to
the Gibraltar Mine is not free from uncertainty. Mining always entails risks of
spills, pollution, reclamation, and other liabilities and obligations, which
like other mining companies, may adversely affect Taseko. If these challenges
are not properly assessed or if rules become more onerous, Taseko could be
materially adversely affected.</P>
<P align=justify><I>Significant Potential Equity Dilution</I></P>
<P align=justify>Taseko had 12,345,468 share purchase options in-the-money at
March 31, 2010. In addition, there are also shares potentially issuable in 2011
on the conversion of Gibraltar&#146;s class of Preferred Shares issued for the
Harmony project. All of the foregoing may likely act as an upside constraint on
the trading price of Taseko&#146;s shares.</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 ><B><FONT color=#0000ff>ITEM 6.</FONT></B> </TD>
    <TD align=left width="90%"><B><FONT color=#0000ff>DIVIDENDS</FONT></B>
  </TD></TR></TABLE>
<P align=justify>The Company has paid no dividends in any of the three fiscal
years ending December 31, 2009. The Company does not pay dividends and has no
plans to do so in the foreseeable future.</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 ><B><FONT color=#0000ff>ITEM 7.</FONT></B> </TD>
    <TD align=left width="90%"><B><FONT color=#0000ff>DESCRIPTION OF CAPITAL
      STRUCTURE</FONT></B> </TD></TR></TABLE>
<P align=justify>Taseko&#146;s share capital consists of one class of no par value
common shares.</P>
<P align=justify><B>Common Shares</B></P>
<P align=justify>There are unlimited common shares authorized and 182,924,664
common shares without par value were issued and outstanding as fully paid and
non-assessable as of December 31, 2009. As of March 31, 2010, there were
186,076,186 common shares issued and outstanding as fully paid and
non-assessable (198,560,102 fully diluted excluding Gibraltar Preferred Shares).
The accompanying audited consolidated financial statements provide details of
all share issuances effected by Taseko and the issue price per share since
January 1, 2009.</P>
<P align=justify>There have been no changes in the classification of common
shares (reclassifications, consolidations, reverse splits or the like) within
the previous five years. All common shares of Taseko rank <I>pari passu
</I>(i.e. equally) for the payment of any dividends and distributions in the
event of a windup.</P>
<P align=justify>There are no constraints imposed on the foreign ownership of
securities of Taseko.</P>
<P align=justify>To the knowledge of the Company, Taseko&#146;s debt securities have
not received any ratings from any rating organization.</P>
<P align=justify><B>Gibraltar Tracking Preferred Shares (Exchangeable for Taseko
Common Shares)</B></P>
<P align=justify>In 2002, Gibraltar Mines Ltd., Taseko&#146;s primary subsidiary,
issued 12,483,916 series &#147;A&#148; non-voting tracking preferred shares (&#147;Gibraltar
Preferred Shares&#148;) which are convertible into Taseko common shares by no later
than 2011. These shares were issued to Continental Minerals Corporation
(previously named Misty Mountain Gold Limited) as part of the Company&#146;s
acquisition of the Harmony Gold Property. All of Gibraltar&#146;s common shares are
owned by Taseko. </P>
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<P align=center>- 34 -</P>
<P align=justify>The Gibraltar Preferred Shares are designed to track and
capture the value of the Harmony Gold Property and will be redeemed for common
shares of Taseko upon a realization event, such as a sale to a third party or
commercial production at the Harmony Gold Property, or at the option of
Gibraltar, if a realization event has not occurred within ten years (2011). The
tracking preferred shares are redeemable at specified prices per common share of
Taseko starting at $3.39 and escalating by $0.25 per year, currently at $5.39
(as of December 31, 2009). If a realization event does not occur on or before
October 16, 2011, Gibraltar is required to redeem the Gibraltar preferred shares
for Taseko common shares at a deemed price equal to the greater of the average
20 day trading price of the common shares of Taseko and $10.00. The Taseko
common shares to be issued to Continental upon a realization event will in turn
be distributed pro-rata, after adjustment for any taxes, to the holders of
redeemable preferred shares of Continental that were issued to Continental
shareholders at the time of the Arrangement Agreement.</P>
<P align=justify><B>Convertible Bonds</B></P>
<P align=justify>On August 29, 2006, the Company issued US$30 million in
principal amount of five year convertible bonds due in 2011 (the "Bonds") to
qualified institutional buyers (the &#147;Bondholders&#148;). The Bonds were convertible
into the Company&#146;s common shares. The Bonds constituted direct, unsubordinated,
unsecured, general and unconditional obligations of the Company. </P>
<P align=justify>The Bonds were issued at 100% and, if not converted, could be
redeemed at maturity at 101%. The Bonds carried coupon interest rates of 7.125%
per annum. The Bonds also had a &#147;put&#148; right in August 2009 to be redeemed at
100.6% . </P>
<P align=justify>During the year ending December 31, 2009, the Company
repurchased US$20 million of the Bonds from its Bondholders for the purpose of
cancellation. In addition, the remaining Bondholders exercised the &#147;put&#148; right
on the remaining US$10 million in August 2009. </P>
<P align=justify><B>Credit Suisse Term Facility</B></P>
<P align=justify>In February 2009, the Company entered into and drew upon 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 is repayable commencing
April 2010 and every second month thereafter in equal installments of US$4.2
million until February 2012. The Facility bears interest at LIBOR plus 5 percent
which is due and payable bi-monthly. The long-term credit facility security
provided under the terms of the relevant agreements includes 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>The Facility requires a maximum total debt to total equity
ratio of 55%, a minimum tangible net worth of $150 million, a maximum production
cost threshold of $1.56 per lb of copper to December 31, 2009 and minimum debt
service coverage ratios of 135%. As at December 31, 2009, the Company is in
compliance with its financial covenants. The Company has the option at any time
after 18 months from February, 2009 to prepay the Facility.</P>
<P align=justify>The Company incurred financing fees of $1.7 million to obtain
the Facility. This amount is being amortized to interest expense using the
effective interest rate method.</P>
<P align=justify>As of the date of this AIF, the Company prepaid the Facility in
full</P>
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<P align=center>- 35 -</P>
<P align=justify><B>Long-Term Equipment Loan</B></P>
<P align=justify>During the year, the Company entered into 36-month term
equipment loan agreements to finance the purchase of equipment for the Gibraltar
Mine. The principal amounts of the loans total $9 million. The loans are secured
by the underlying equipment at the Gibraltar Mine.</P>
<P align=justify>The equipment loans are repayable commencing one month after
inception in 35 equal monthly installments in the amount of $0.225 million until
2012. The last installment is payable in 2012 in the amount of $2.8 million. The
equipment loans bear a fixed interest rate at 8.63% per annum. </P>
<P align=justify><B>Equity Financings</B></P>
<P align=justify>On April 15, 2009, the Company completed a &#147;bought deal&#148; short
form prospectus offering (the &#147;Offering&#148;) of 13,793,104 common shares at a price
of $1.45 per common share (the &#147;Offering Price&#148;). A syndicate of underwriters
led by Raymond James Ltd. and including Wellington West Capital Markets Inc.,
Canaccord Capital Corporation, Jennings Capital Inc. and Paradigm Capital Inc.
(collectively, the &#147;Underwriters&#148;) acted as Underwriters in connection with the
Offering.</P>
<P align=justify>The Company granted to the Underwriters an over-allotment
option to purchase up to an additional 2,068,965 common shares at the Offering
Price. The Underwriters elected to exercise the over-allotment option in full,
resulting in aggregate gross proceeds of the total offering to the Company of
$23.0 million. In addition, the Company also completed a private placement
financing of 3,628,015 shares at $1.45 per common share for gross proceeds of
$5.3 million. A finder's fee of 6% of the proceeds of the private placement
financing was paid.</P>
<P align=justify>The net proceeds from the Offering were used for discharge of
accounts payable and general working capital.</P>
<P align=justify>During the year ended December 31, 2009, 9,085,715 warrants
issued in December 2008 were exercised for total proceeds of $7.7 million and
1,161,749 options were exercised for the total proceeds of $1.4 million.</P>
<P align=justify><B>Other Financings</B></P>
<P align=justify>During the 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. Annual royalties
are 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 are recognized
as an expense during the year.</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 has 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 which is equal to the funds received by the
Company plus a 20% premium payable in the Company&#146;s shares or cash. GRLP also
has 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 is
subject to the Company's pre-emptive right to exercise the "call" in advance of
any "put" being exercised and completed.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=center>- 36 -</P>
<P align=justify>As at the date of the AIF, the Company exercised its &#147;call&#148;
option through the issuance 1,556,355 shares of the Company</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><B><FONT color=#0000ff>ITEM 8.</FONT></B> </TD>
    <TD align=left width="90%"><B><FONT color=#0000ff>MARKET FOR
      SECURITIES</FONT></B> </TD></TR></TABLE>
<P align=justify>The following table shows the high and low trading prices and
average daily trading volume of the common shares of Taseko on the Toronto Stock
Exchange (TSX) for the periods listed. </P>

<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="90%" border=0>

  <TR vAlign=top>
    <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=left width="15%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="15%"><B>Average Daily</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=right
      width="15%"><B>High</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="15%"><B>Low</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="15%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Trading Volume</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>&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%"><B>(Cdn$)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%"><B>(Cdn$)</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=left width="15%">&nbsp;    </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><B>Monthly</B> </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=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=left width="15%">&nbsp;    </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>March 2010 (to March 30) </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="15%"
    bgColor=#e6efff>5.30 </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="15%"
    bgColor=#e6efff>5.20 </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="15%"
    bgColor=#e6efff>569,600 </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 1px solid" align=left>Feb-10 </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%">5.03    </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%">4.16    </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%">1,173,700 </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>Jan-10 </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="15%"
    bgColor=#e6efff>5.84 </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="15%"
    bgColor=#e6efff>4.28 </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="15%"
    bgColor=#e6efff>1,843,300 </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 1px solid" align=left>Dec-09 </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%">4.74    </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%">3.56    </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%">1,659,900 </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>Nov-09 </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="15%"
    bgColor=#e6efff>3.74 </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="15%"
    bgColor=#e6efff>2.80 </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="15%"
    bgColor=#e6efff>1,123,200 </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 1px solid" align=left>Oct-09 </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%">3.35    </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%">2.62    </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%">824,700 </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>Sep-09 </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="15%"
    bgColor=#e6efff>3.02 </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="15%"
    bgColor=#e6efff>2.52 </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="15%"
    bgColor=#e6efff>427,100 </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 1px solid" align=left>Aug-09 </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%">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%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%">2.27    </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%">1,176,600 </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>Jul-09 </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="15%"
    bgColor=#e6efff>2.35 </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="15%"
    bgColor=#e6efff>1.63 </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="15%"
    bgColor=#e6efff>673,100 </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 1px solid" align=left>Jun-09 </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%">2.27    </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%">1.76    </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%">741,500 </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>May-09 </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="15%"
    bgColor=#e6efff>2.00 </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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>1.53 </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="15%"
    bgColor=#e6efff>895,600 </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 1px solid" align=left>Apr-09 </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%">2.04    </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%">1.47    </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%">1,290,200 </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>Mar-09 </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="15%"
    bgColor=#e6efff>1.79 </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="15%"
    bgColor=#e6efff>0.96 </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="15%"
    bgColor=#e6efff>470,200 </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 1px solid" align=left>Feb-09 </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%">1.25    </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%">0.94    </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%">212,000 </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>Jan-09 </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="15%"
    bgColor=#e6efff>1.13 </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="15%"
    bgColor=#e6efff>1.01 </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="15%"
    bgColor=#e6efff>293,200 </TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=justify>The following table shows the high and low trading prices and
average daily trading volume of the common shares of Taseko on the NYSE Amex for
the periods listed. </P>

<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="90%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="15%"><B>High</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="15%"><B>Low</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="15%"><B>Average Daily</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=right
      width="15%"><B>(USD$)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%"><B>(USD$)</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="15%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Trading Volume</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><B>Monthly</B> </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=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=left width="15%">&nbsp;    </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>March 2010 (to March 30) </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="15%"
    bgColor=#e6efff>5.21 </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="15%"
    bgColor=#e6efff>5.10 </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="15%"
    bgColor=#e6efff>1,013,300 </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 1px solid" align=left>Feb-10 </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%">4.74    </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%">3.87    </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%">2,774,800 </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>Jan-10 </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="15%"
    bgColor=#e6efff>5.65 </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="15%"
    bgColor=#e6efff>4.10 </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="15%"
    bgColor=#e6efff>4,267,000 </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 1px solid" align=left>Dec-09 </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%">4.45    </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%">3.40    </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%">3,203,500 </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>Nov-09 </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="15%"
    bgColor=#e6efff>3.54 </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="15%"
    bgColor=#e6efff>2.57 </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="15%"
    bgColor=#e6efff>3,377,900 </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 1px solid" align=left>Oct-09 </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%">3.20    </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%">2.40    </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%">2,036,500 </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>Sep-09 </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="15%"
    bgColor=#e6efff>2.85 </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="15%"
    bgColor=#e6efff>2.27 </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="15%"
    bgColor=#e6efff>1,775,700 </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 1px solid" align=left>Aug-09 </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%">2.78    </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%">2.11    </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%">2,700,500 </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>Jul-09 </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="15%"
    bgColor=#e6efff>2.17 </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="15%"
    bgColor=#e6efff>1.40 </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="15%"
    bgColor=#e6efff>1,734,200 </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 1px solid" align=left>Jun-09 </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%">2.05    </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%">1.53    </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%">2,165,600 </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>May-09 </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="15%"
    bgColor=#e6efff>1.82 </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="15%"
    bgColor=#e6efff>1.30 </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="15%"
    bgColor=#e6efff>1,944,600 </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 1px solid" align=left>Apr-09 </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%">1.68    </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%">1.19    </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%">1,716,900 </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>Mar-09 </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="15%"
    bgColor=#e6efff>1.45 </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="15%"
    bgColor=#e6efff>0.75 </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="15%"
    bgColor=#e6efff>1,074,900 </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 1px solid" align=left>Feb-09 </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%">1.06    </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%">0.75    </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%">694,000 </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>Jan-09 </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="15%"
    bgColor=#e6efff>1.17 </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="15%"
    bgColor=#e6efff>0.59 </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="15%"
    bgColor=#e6efff>1,158,400 </TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" 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>
<!--$$/page=--><A name=page_38></A>
<P align=center>- 37 -</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 ><FONT color=#0000ff><B>ITEM 9.</B> </FONT></TD>
    <TD align=left width="90%"><FONT color=#0000ff><B>ESCROWED SECURITIES AND
      SECURITIES SUBJECT TO CONTRACTUAL</B> <B>RESTRICTIONS ON ESCROW</B>
    </FONT></TD></TR></TABLE>
<P align=justify>There are no shares of Taseko held in escrow or subject to
contractual restrictions on transfer.</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 ><B><FONT color=#0000ff>ITEM 10.</FONT></B>
</TD>
    <TD align=left width="90%"><B><FONT color=#0000ff>DIRECTORS AND
      OFFICERS</FONT></B> </TD></TR></TABLE>
<P align=justify>The names and municipalities of residence of the directors and
senior officers of the Company, their principal occupations during the past five
years, and the period of time they have served as directors or officers of
Taseko are as follows. Except where indicated, each director and senior officer
of Taseko has held the same or similar principal occupation with the
organization indicated or a predecessor thereof for the last five years.</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><B>Name, Position and</B> </TD>
    <TD align=left width="30%" ><B>Period a Director and/or</B>
    </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Country of
      Residence</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="30%"
    ><B>Officer of Taseko</B> </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="30%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>William Armstrong, Director <BR>Surrey,
      British Columbia </TD>
    <TD align=left width="30%" bgColor=#e6efff >Since May 2006
      <BR></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="30%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Brian Battison, Vice President Corporate
      Affairs <BR>Tsawassen, British Columbia </TD>
    <TD align=left width="30%" bgColor=#e6efff >Since September
      2007 <BR></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="30%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>David J. Copeland, Director <BR>Vancouver,
      British Columbia </TD>
    <TD align=left width="30%" bgColor=#e6efff >Since March 1994
      <BR></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="30%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>T. Barry Coughlan, Director <BR>Vancouver,
      British Columbia </TD>
    <TD align=left width="30%" bgColor=#e6efff >Since February
      2001 <BR></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="30%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Scott D. Cousens, Director <BR>Vancouver,
      British Columbia </TD>
    <TD align=left width="30%" bgColor=#e6efff >Since December
      1995 <BR></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="30%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Robert A. Dickinson, Director <BR>Lions
      Bay, British Columbia </TD>
    <TD align=left width="30%" bgColor=#e6efff >Since January
      1991 <BR></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="30%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>David Elliott, Director <BR>Vancouver,
      British Columbia </TD>
    <TD align=left width="30%" bgColor=#e6efff >Since July 2004
      <BR></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="30%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Russell E. Hallbauer, President, Chief
      Executive Officer and Director <BR>West Vancouver, British Columbia </TD>
    <TD align=left width="30%" bgColor=#e6efff >Since July 2005
      <BR></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="30%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Scott Jones, Vice President, Engineering
      <BR>North Vancouver, British Columbia </TD>
    <TD align=left width="30%" bgColor=#e6efff >Since December
      2007 <BR></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="30%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Wayne Kirk, Director <BR>Orcas, WA , USA
</TD>
    <TD align=left width="30%" bgColor=#e6efff >Since July 2004
      <BR></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="30%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>John W. McManus, Senior Vice President,
      Operations <BR>West Vancouver, British Columbia </TD>
    <TD align=left width="30%" bgColor=#e6efff >Since October
      2005 <BR></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="30%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Peter Mitchell, Chief Financial Officer
      <BR>West Vancouver, British Columbia </TD>
    <TD align=left width="30%" bgColor=#e6efff >Since September
      2008 <BR></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="30%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Richard Mundie, Director <BR>West
      Vancouver, British Columbia </TD>
    <TD align=left width="30%" bgColor=#e6efff >Since December
      2009 <BR></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="30%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Ronald W. Thiessen, Chairman of the Board
      and Director <BR>West Vancouver, British Columbia </TD>
    <TD align=left width="30%" bgColor=#e6efff >Since October
      1993 <BR></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="30%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Trevor Thomas, Secretary <BR>Vancouver,
      British Columbia </TD>
    <TD align=left width="30%" bgColor=#e6efff >Since July 2008
      <BR></TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_39></A>
<P align=center>- 38 -</P>
<P align=justify>At the annual general meeting held in June 2009, all directors
listed above were re-elected to a term of office expiring at the next annual
general meeting of Taseko, which is currently scheduled for June 2010. Some of
the directors serve together on a number of boards of other publicly listed
companies. Richard Mundie was appointed to the Board on December 2009.</P>
<P align=justify>Although the directors oversee the management of Taseko&#146;s
affairs, a cost sharing arrangement exists between a number of the public
resource companies on which several of the directors serve pursuant to a
corporate services agreement with Hunter Dickinson Services Inc. (&#147;HDSI&#148;) dated
June 1, 2008. HDSI is a private company which until recently was owned equally
by eight public companies, one of which is Taseko. HDSI provides executive,
engineering, geological and administrative services to, and incurs costs on
behalf of, these companies and allocates the full costs to them (see Item
15).</P>
<P align=justify>All officers have a term of office lasting until their removal
or replacement by the Board of Directors. However, there are certain services
agreements in place with respect to these persons which will affect any
termination of services. The President and CEO is currently employed by HDSI and
provides services to the Company under the terms of the corporate services
agreement (see &#147;Material Contracts&#148;).</P>
<P align=justify><B>Principal Occupations and Other Information about Taseko&#146;s
Directors and Management</B></P>
<P align=justify><B>WILLIAM P. ARMSTRONG, P.Eng. &#150; Director </B></P>
<P align=justify>Mr. Armstrong earned his Bachelors and Masters degrees in
Geological Engineering from the University of British Columbia and has more than
45 years experience in the mining industry. He recently retired from Teck
Cominco Ltd., where he was General Manager, Resource Evaluations, and was
responsible for the evaluation of potential acquisitions and divestitures. He
was also responsible for the company&#146;s mineral reserves and resources. During
his career with Cominco Ltd., and Teck Cominco Ltd., Mr. Armstrong was involved
in feasibility studies, construction and operation of a large number of mines,
including coal deposits, underground and open pit base metal mines and precious
metal mines.</P>
<P align=justify>Mr. Armstrong is, or was within the past five years, an officer
and/or director of the following public companies:</P>

<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 style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Company</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>Positions Held</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>From</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Compania Minera El
      Brocal </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">January 2001 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">February 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Hansa Resources
      Ltd. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">August
      2008 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Taseko Mines
      Limited </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">May
      2006 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR></TABLE>
<P align=justify><B>DAVID COPELAND, P.Eng. &#150; Director</B></P>
<P align=justify>David Copeland is a geological engineer who graduated in
economic geology from the University of British Columbia. With over 30 years of
experience, Mr. Copeland has undertaken assignments in a variety of capacities
in mine exploration, discovery and development throughout the South Pacific,
Africa, South America and North America. His principal occupation is President
and Director of CEC Engineering Ltd., a consulting engineering firm that directs
and co-ordinates advanced technical programs for exploration on behalf of
companies for which Hunter Dickinson Services Inc. (formerly Hunter Dickinson
Inc.) provides services. He is also a director of Hunter Dickinson Services
Inc.</P>
<P align=justify>Mr. Copeland is, or was within the past five years, an officer
and/or director of the following public companies:</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_40></A>
<P align=center>- 39 -</P>

<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 style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Company</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>Positions Held</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>From</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Amarc Resources
      Ltd. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">September 1995 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Anooraq Resources
      Corporation </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">September 1996 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">September 2004 </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Continental Minerals Corporation <BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">November 1995 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">CEO/President </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">January 2008 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Farallon Mining
      Ltd. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">December 1995 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">April
      2009 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Great Basin Gold
      Ltd. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">February 1994 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">March
      2008 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Heatherdale
      Resources Inc. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">CEO/President/Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">November 2009 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Northern Dynasty
      Minerals Ltd. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">June
      1996 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=3>Rockwell Diamonds Inc. <BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">September 2006 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">CEO
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">September 2006 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">September 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Chairman </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">September 2007 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Taseko Mines
      Limited </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">March
      1994 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR></TABLE>
<P align=justify><B>BARRY COUGHLAN, B.A. &#150; Director</B></P>
<P align=justify>Barry Coughlan is a self-employed businessman and financier who
has been involved in the financing and management of publicly traded companies
for over 25 years. His principal occupation is President and Director of TBC
Ventures Ltd., a private investment company.</P>
<P align=justify>Mr. Coughlan is, or was within the past five years, an officer
and or a director of the following companies:</P>

<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 style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Company</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>Positions Held</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>From</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Amarc Resources
      Ltd. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">February 2009 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Continental
      Minerals Corporation </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">May
      2006 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">December 2006 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Farallon Mining
      Ltd. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">March
      1998 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Great Basin Gold
      Ltd. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">February 1998 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>ICN Resources Ltd. (formerly Icon Industries Ltd. </TD>
    <TD align=left width="25%">President, CEO and Director <BR></TD>
    <TD align=left width="25%">September 1991 <BR></TD>
    <TD align=left width="25%">Present <BR></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Quartz Mountain
      Resources Ltd. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">January 2005 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Taseko Mines
      Limited </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">February 2001 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>Quadro Resources Ltd. (formerly Tri-Gold Resources
      Corp.) </TD>
    <TD align=left width="25%">President and Director <BR></TD>
    <TD align=left width="25%">June 1986 <BR></TD>
    <TD align=left width="25%">Present <BR></TD></TR></TABLE>
<P align=justify><B>SCOTT COUSENS &#150; Director</B></P>
<P align=justify>Scott Cousens provides management, technical and financial
services to a number of publicly traded Hunter Dickinson companies. Mr. Cousens&#146;
focus since 1991 has been the development of relationships within the international investment community. Substantial
financings and subsequent corporate success has established strong ties with
North American, European and Asian investors.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_41></A>
<P align=center>- 40 -</P>
<P align=justify>Mr. Cousens is, or was within the past five years, an officer
and/or director of the following public companies:</P>

<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 style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Company</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>Positions Held</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>From</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Amarc Resources
      Ltd. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">September 1995 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Anooraq Resources
      Corporation </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">September 1996 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">June
      2009 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Continental
      Minerals Corporation </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">June
      1994 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Farallon Mining
      Ltd. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">December 1995 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">April
      2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Great Basin Gold
      Ltd. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">March
      1993 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">November 2006 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Heatherdale
      Resources Inc. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Chairman/Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">November 2009 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Northern Dynasty
      Minerals Ltd. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">June
      1996 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Rockwell Diamonds
      Inc. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">November 2000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">November 2008 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Taseko Mines
      Limited </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">October 1992 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR></TABLE>
<P align=justify><B>ROBERT DICKINSON, B.Sc., M.Sc. - Director</B></P>
<P align=justify>Robert Dickinson is an economic geologist who serves as a
member of management of several mineral exploration companies, primarily those
for whom Hunter Dickinson Services Inc. (formerly Hunter Dickinson Inc.)
provides services. He holds a Bachelor of Science degree (Hons. Geology) and a
Master of Science degree (Business Administration - Finance) from the University
of British Columbia. Mr. Dickinson has also been active in mineral exploration
over 40 years. He is a director of Hunter Dickinson Services Inc. (formerly
Hunter Dickinson Inc.) He is also President and Director of United Mineral
Services Ltd., a private investment company.</P>
<P align=justify>Mr. Dickinson is, or was within the past five years, an officer
and/or director of the following public companies:</P>

<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 style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Company</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>Positions Held</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>From</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Amarc Resources Ltd. <BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">April
      1993 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Chairman </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">April
      2004 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=4>Anooraq Resources Corporation <BR><BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">November 1990 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">September 2004 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">October 2004 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">June
      2009 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Chairman </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">April
      2004 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">September 2004 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Co-Chairman </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">October 2004 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">June
      2009 </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=3>Continental Minerals Corporation <BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">June
      2004 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Chairman </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">June
      2004 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">January 2006 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Co-Chairman </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">January 2006 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">December 2006 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Detour Gold
      Corporation </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">August
      2006 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">February 2009 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Farallon Mining
      Ltd. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">July
      1991 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">April
      2007 </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_42></A>
<P align=center>- 41 -</P>

<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 style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Company</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>Positions Held</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>From</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Chairman </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">April
      2004 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">September 2004 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Co-Chairman </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">September 2004 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">April
      2006 </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=3>Great Basin Gold Ltd. <BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">May
      1986 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">November 2006 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Chairman </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">April
      2004 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">December 2005 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Co-Chairman </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">December 2005 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">November 2006 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Heatherdale
      Resources Inc. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">November 2009 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Northern Dynasty Minerals Ltd. <BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">June
      1994 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Chairman </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">April
      2004 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Rockwell Diamonds Inc. <BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">November 2000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">September 2006 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Chairman </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">November 2000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">September 2006 </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=3>Taseko Mines Limited <BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">January 1991 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Chairman </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">April
      2004 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">July
      2005 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Co-Chairman </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">July
      2005 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">May
      2006 </TD></TR></TABLE>
<P align=justify><B>RONALD THIESSEN, CA &#150; Chairman of the Board and
Director</B></P>
<P align=justify>Ronald Thiessen is a Chartered Accountant with professional
experience in finance, taxation, mergers, acquisitions and re-organizations.
Since 1986, Mr. Thiessen has been involved in the acquisition and financing of
mining and mineral exploration companies. Mr. Thiessen is employed by Hunter
Dickinson Services Inc. (formerly Hunter Dickinson Inc.), a company providing
management and administrative services to several publicly-traded companies and
focuses on directing corporate development and financing activities. He is also
a director of Hunter Dickinson Services Inc. (formerly Hunter Dickinson Inc.)</P>
<P align=justify> Mr. Thiessen is, or was within the past five years, an officer and/or director
  of the following public companies:</P>
<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 style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Company</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>Positions Held</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>From</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Amarc Resources Ltd. <BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">September 1995 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">President and Chief Executive Officer </TD>
    <TD align=left width="25%">September 2000 <BR></TD>
    <TD align=left width="25%">Present <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Anooraq Resources Corporation <BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">April
      1996 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">President and Chief Executive Officer </TD>
    <TD align=left width="25%">September 2000 <BR></TD>
    <TD align=left width="25%">August 2007 <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=3>Continental Minerals Corporation <BR><BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">November 1995 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">President and Chief Executive Officer </TD>
    <TD align=left width="25%">September 2000 <BR></TD>
    <TD align=left width="25%">January 2006 <BR></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Co-Chairman </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">January 2006 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Detour Gold Corporation <BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">July
      2006 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Chairman </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">July
      2006 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">March
      2009 </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_43></A>
<P align=center>- 42 -</P>

<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 style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Company</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>Positions Held</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>From</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=4>Farallon Mining Ltd. <BR><BR><BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">August
      1994 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">President and Chief Executive Officer </TD>
    <TD align=left width="25%">September 2000 <BR></TD>
    <TD align=left width="25%">September 2004 <BR></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Co-Chairman </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">September 2004 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">December 2005 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Chairman </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">December 2005 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=4>Great Basin Gold Ltd. <BR><BR><BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">October 1993 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">President and Chief Executive Officer </TD>
    <TD align=left width="25%">September 2000 <BR></TD>
    <TD align=left width="25%">December 2005 <BR></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Co-Chairman </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">December 2005 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">November 2006 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Chairman </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">November 2006 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Northern Dynasty Minerals Ltd. <BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">November 1995 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">President and Chief Executive Officer </TD>
    <TD align=left width="25%">November 2001 <BR></TD>
    <TD align=left width="25%">Present <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=3>Rockwell Diamonds Inc. <BR><BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">November 2000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">September 2007 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">President and Chief Executive Officer </TD>
    <TD align=left width="25%">November 2000 <BR></TD>
    <TD align=left width="25%">September 2006 <BR></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Chairman </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">September 2006 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">September 2007 </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=4>Taseko Mines Limited <BR><BR><BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">October 1993 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">President and Chief Executive Officer </TD>
    <TD align=left width="25%">September 2000 <BR></TD>
    <TD align=left width="25%">July 2005 <BR></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Co-Chairman </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">July
      2005 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">May
      2006 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Chairman </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">May
      2006 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>Quadro Resources Ltd. (formerly Tri-Gold Resources
      Corp.) </TD>
    <TD align=left width="25%">Director <BR></TD>
    <TD align=left width="25%">July 1992 <BR></TD>
    <TD align=left width="25%">December 2006 <BR></TD></TR></TABLE>
<P align=justify><B>DAVID ELLIOTT, B.Comm., ICD.D. FCA &#150; Director</B></P>
<P align=justify>David Elliott graduated from the University of British Columbia
with a Bachelor of Commerce degree and then acquired a Chartered Accountant
designation. In 2006, he became a certified director with the Institute of
Corporate Directors. Mr. Elliott joined BC Sugar Company in 1976, working in a
number of senior positions before becoming President and Chief Operating Officer
of the operating subsidiary, Rogers Sugar. In 1997, he joined Lantic Sugar in
Toronto as Executive Vice President. He also served as Chairman of the Canadian
Sugar Institute. He became President and Chief Operating Officer of the
International Group based in St Louis, Missouri in 1999, a company involved with
food distribution as well as manufacturing and distribution of pet and animal
feed. For several years, he worked with companies developing e-mail and data
management services. Currently, Mr. Elliott is a director and Audit Committee
chairman of Anooraq Resources Corporation, Great Basin Gold Ltd., Northern
Dynasty Minerals Ltd. and Taseko Mines Limited.</P>
<P align=justify>Mr. Elliott is, or was within the past five years, an officer
and/or director of the following public companies:</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_44></A>
<P align=center>- 43 -</P>

<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 style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Company</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>Positions Held</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>From</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Anooraq Resources
      Corporation </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">April
      2005 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">June
      2009 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Great Basin Gold
      Ltd. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">July
      2004 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Northern Dynasty
      Minerals Ltd. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">July
      2004 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Taseko Mines
      Limited </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">July
      2004 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR></TABLE>
<P align=justify><B>RUSSELL HALLBAUER, P.Eng. &#150; Director, President &amp;
CEO</B></P>
<P align=justify>Mr. Hallbauer graduated from the Colorado School of Mines with
a B.Sc. in Mining Engineering in 1979. He is a Registered Professional Engineer
with the Association of Professional Engineers of British Columbia. He has been
a member of the Canadian Institute of Mining and Metallurgy since 1975 and is a
director and former chairman of the Mining Association of B.C.</P>
<P align=justify>In 1983, he joined Teck Corporation&#146;s Bullmoose mine, advancing
through Engineering and Supervisory positions to become Mine Superintendent in
1987, and in 1992, became General Manager of Quintette. In 1995, he assumed new
responsibilities in Vancouver when he was appointed General Manager, Coal
Operations, overseeing Teck&#146;s three operating coal mines in the Province. In
2002, he was appointed General Manager, Base Metal Joint Ventures, responsible
for Teck Cominco&#146;s interests in Highland Valley Copper, Antamina in Peru, and
Louvicourt in Quebec. Mr. Hallbauer is a director of Hunter Dickinson Services
Inc. and Hunter Dickinson Acquisitions Inc.</P>
<P align=justify>Mr. Hallbauer is, or was within the past five years, an officer
and/or director of the following public companies:</P>

<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 style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Company</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>Positions Held</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>From</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Northern Dynasty
      Minerals Ltd. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">April
      2008 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>Taseko Mines Limited </TD>
    <TD align=left width="25%">President/CEO/Director </TD>
    <TD align=left width="25%">July 2005 </TD>
    <TD align=left width="25%">Present </TD></TR></TABLE>
<P align=justify><B>SCOTT JONES, P.Eng. &#150; Vice President, Engineering</B></P>
<P align=justify>Scott Jones has 25 years of experience in the mining industry,
most recently as a Senior Mining Engineer for Teck Cominco where he was involved
in property valuation and feasibility studies. He has also held various senior
positions in both underground and open pit operations for Teck Cominco and at
Barrick Gold&#146;s Hemlo Operations. He has a B.Sc. in Mine Engineering from McGill
University. </P>
<P align=justify><B>WAYNE KIRK, LLB &#150; Director</B></P>
<P align=justify>Wayne Kirk is a retired attorney and professional consultant.
With over 35 years professional experience Mr. Kirk also has over 9 years senior
executive experience in the mining industry.</P>
<P align=justify>Mr. Kirk is a citizen of the United States and is a resident of
the state of Washington. A Harvard University graduate, Mr. Kirk received his
law degree in 1968. From 1992 to 2001 Mr. Kirk was the Vice President, General
Counsel and Corporate Secretary of Homestake Mining Company. Prior to his retirement in June 2004 he spent two years as Special Counsel
for the law firm, Thelen Reid &amp; Priest, in San Francisco.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_45></A>
<P align=center>- 44 -</P>
<P align=justify>Mr. Kirk is, or was within the past five years, a director of
the following public companies:</P>

<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 style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Company</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>Positions Held</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>From</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Anooraq Resources
      Corporation </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">July
      2005 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Gabriel Resources
      Ltd. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">June
      2008 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Great Basin Gold
      Ltd. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">July
      2004 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Northern Dynasty
      Minerals Ltd. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">July
      2004 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Taseko Mines
      Limited </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Director </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">July
      2004 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR></TABLE>
<P align=justify><B>RICHARD MUNDIE, CA &#150; Director</B></P>
<P align=justify>Richard Mundie was born in Vancouver and graduated from the
University of British Columbia in 1963 with a Bachelor of Commerce degree. He
obtained his Chartered Accountancy designation in 1966. He has held a number of
senior leadership positions in key organizations in British Columbia and
overseas. From 2005 to 2007, he was Vice President, Asia Affairs and Chief
Representative (China), for TeckCominco. In this role, he was active in the
international mining community and participated in several joint programs to
build stronger relationships with the Chinese Government. Prior to this
appointment, Mr Mundie held the position of Vice President &#150; Commercial for a
period of ten years with TeckCominco. In this role, he was responsible for
marketing the company&#146;s commercial mineral products, gaining invaluable
experience in Europe, South America, United States, Japan, Korea, and Taiwan.
Among his accomplishments, he successfully renegotiated North East British
Columbia&#146;s coal marketing agreements, including transportation and port
agreements as well as annual commercial contracts. Richard Mundie joined Teck
Corporation in 1995 as Assistant to the President where his main
responsibilities were corporate development. Between 1983 and 1995, he held a
number of financial and leadership positions with Cominco and in 1992, he
assumed the role of Director of Business Development with wide responsibilities
for mergers, acquisitions and divestitures. His role also involved feasibility
studies and international business relationships. This role included
international experience in Japan and Korea for copper and zinc; a seat on the
Board of Directors of Cominco Binani Zinc in India; acquisition of nickel ore in
New Caledonia, including negotiations with the French Territorial Government for
export permits, marketing of copper concentrates in the early stages of Highland
Valley Copper and the large Antamina Mine in Peru. He was responsible for the
divestiture of the Mitsubishi/Cominco Lead Smelter in Japan, and Cominco Binani
Zinc refinery in India, the acquisition and divestiture of Carmaquilla Zinc
Smelter in Peru, and the divestiture of Cominco Engineering. Earlier career
positions included a number of finance related roles in the resources sector,
transport and public accounting with PriceWaterhouse Coopers.</P>
<P align=justify><B>JOHN McMANUS, P. Eng &#150; Senior Vice-President,
Operations</B></P>
<P align=justify>John McManus holds a Bachelor of Science degree in mining
engineering from the Colorado School of Mines and a Technologist Diploma in
Mining from the British Columbia Institute of Technology.</P>
<P align=justify>Mr. McManus has worked in the mining industry in British
Columbia for over 25 years where he gained experience in mine operations, mine
engineering and environmental management. Most recently, he was the General
Manager, Coal Mountain Operations at Elk Valley Coal Corporation. Prior to that,
Mr. McManus was the Mine Manager at Teck Cominco&#146;s coal mining
joint venture Bullmoose operation, General Superintendent at the Elkview coal
mine and Superintendent of Engineering at the Quintette operation. His past
experience also includes five years working in operations and engineering at the
Highland Valley and Lornex copper mines and three years working in gold
exploration in the Yukon, British Columbia and California.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_46></A>
<P align=center>- 45 -</P>
<P align=justify>Mr. McManus is, or was within the past five years, an officer
and or director of the following public companies:</P>

<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 style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Company</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>Positions Held</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>From</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Taseko Mines Limited <BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">Vice
      President, Operations </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">October 2005 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">December 2007 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Senior Vice President, <BR>Operations </TD>
    <TD align=left width="25%">December 2007 <BR></TD>
    <TD align=left width="25%">Present <BR></TD></TR></TABLE>
<P align=justify><B>BRIAN BATTISON &#150; Vice President, Corporate Affairs</B></P>
<P align=justify>Brian Battison is responsible for all matters relating to
corporate and public affairs, including government and community relations,
First Nations liaison, sustainability and economic and social responsibility.
Mr. Battison is a public affairs specialist with over 25 years of practical
experience in policy development, issue management and communication in both the
private and public sectors. He has been a senior political and policy advisor
for the government of British Columbia, served as Interim President &amp; CEO of
the Mining Association of BC and spent more than a decade operating a private
full service communications consulting firm specializing in strategic planning,
program development, implementation and evaluation in the areas of mining and
resource development, electrical energy, and health care.</P>
<P align=justify><B>PETER MITCHELL, CA &#150; Chief Financial Officer</B></P>
<P align=justify>Peter Mitchell is a Chartered Accountant with degrees in
Economics (BA) and Business Administration (MBA) from the University of British
Columbia. He has extensive experience with private equity portfolio companies
through acquisitions, integrations and greenfield initiatives and financing
activities.</P>
<P align=justify>Mr. Mitchell is, or was within the past five years, an officer
and or director of the following public companies:</P>

<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 style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Company</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>Positions Held</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>From</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Taseko Mines
      Limited </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">Chief
      Financial Officer </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">September 2008 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR></TABLE>
<P align=justify><B>TREVOR THOMAS, LLB &#150; Secretary</B></P>
<P align=justify>Trevor Thomas has practiced in the areas of corporate
commercial, corporate finance, securities and mining law since 1995, both in
private practice environment as well as in-house positions and is currently
in-house legal counsel for Hunter Dickinson Services Inc. Prior to joining
Hunter Dickinson Services Inc., he served as in-house legal counsel with Placer
Dome Inc.</P>
<P align=justify>Mr. Thomas is, or was within the past five years, an officer
and or director of the following public companies:</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_47></A>
<P align=center>- 46 -</P>

<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 style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Company</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>Positions Held</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>From</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Northern Dynasty
      Minerals Ltd. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Secretary </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">February 2008 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Amarc Resources
      Ltd. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Secretary </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">February 2008 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Anooraq Resources
      Corporation </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">Asst
      Secretary </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">November 2007 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Continental
      Minerals Corporation </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Secretary </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">February 2008 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Farallon Mining
      Ltd. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Secretary </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">December 2007 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Heatherdale
      Resources Inc. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Secretary </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">November 2009 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Rockwell Diamonds
      Inc. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Secretary </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">February 2008 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Taseko Mines
      Limited </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Secretary </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%">August
      1, 2008 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="25%">Present </TD></TR></TABLE>
<P align=justify><B>Cease Trade Orders, Bankruptcies, Penalties or
Sanctions</B></P>
<P align=justify>No director or officer of Taseko is as of the date of this AIF,
or has been within the 10 years before the date of this AIF, a director or
officer of any company that while that person was acting in that capacity, was
the subject of a cease trade order, penalties, sanctions or bankruptcy, during
the time the individual was a director or within a one year period thereafter,
or was a director or officer of a company during the time in which an event
occurred which led to a cease trade order, penalties, sanctions or bankruptcy
subsequent to the individual ceasing to act as a director or officer.</P>
<P align=justify><B>Potential For Conflicts of Interest </B></P>
<P align=justify>Several Directors of Taseko also serve as directors of one or
more other resource companies involved in mineral exploration and/or
development. It may occur from time to time that as a consequence of his
activity in the mineral industry and serving on such other boards that a
Director may become aware of potential resource property opportunities which are
of interest to more than one of the companies on whose boards that person
serves. Furthermore, it is possible that the Directors of Taseko and the
directors of one or more such other companies (many of which are described in
this Item 10) may also agree to allow joint participation on Taseko&#146;s properties
or the properties of that other company. Accordingly, situations may arise in
the ordinary course which involve a Director in an actual or potential conflict
of interest as well as issues in connection with the general obligation of a
director to make corporate opportunities available to the company on which the
director serves. In all such events, any director who might have a disclosable
financial interest in a contract or transaction by virtue of office, employment
or security holdings or other such interest in another company or in a property
interest under consideration by the Taseko Board, would be obliged to abstain
from voting as a Taseko Director in respect of any transaction involving that
other company(s) or in respect of any property in which an interest is held by
him. The Directors will use their best business judgment to help avoid
situations where conflicts or corporate opportunity issues might arise and they
must at all times fulfill their duties to act honestly and in the best interests
of Taseko.</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 ><B><FONT color=#0000ff>ITEM 11.</FONT></B>
</TD>
    <TD align=left width="90%"><B><FONT color=#0000ff>PROMOTERS</FONT></B>
  </TD></TR></TABLE>
<P align=justify>Not applicable.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_48></A>
<P align=center>- 47 -</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 ><B><FONT color=#0000ff>ITEM 12.</FONT></B>
</TD>
    <TD align=left width="90%"><B><FONT color=#0000ff>LEGAL PROCEEDINGS AND
      REGULATORY ACTIONS</FONT></B> </TD></TR></TABLE>
<P align=justify>Taseko is currently involved in a proceeding against the
current owner of the Boliden debenture, NVI, in respect of damages owing from
certain tax liabilities in connection with the terms of the 1999 acquisition
agreements in the amount of approximately $3.5 million (see &#147;Gibraltar Mine
History&#148;).</P>
<P align=justify>In April of 2006, Gibraltar obtained a permit under the
<I>Environmental Management Act </I>to release water from its tailings
impoundment into the Fraser River. That Permit is currently the subject of an
appeal to the Environmental Appeal Board by an aboriginal group in the Williams
Lake area. That appeal is presently partly completed, with five days of evidence
having been heard in Williams Lake in December 2006, and a further eight to ten
days of evidence in January 2007. While the Respondent to the appeal is the
Director under the <I>Environmental Management Act</I>, Gibraltar has
participated in the appeal as an affected party. Although the outcome of
litigation can never be predicted with certainty, the assessment of management
is that it is most likely that the permit will be upheld. If the permit were not
upheld then the assessment of management is that the most likely result would be
that Gibraltar&#146;s ability to discharge the water would be delayed for a period of
time, rather than never being able to discharge water at all.</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 ><B><FONT color=#0000ff>ITEM 13.</FONT></B>
</TD>
    <TD align=left width="90%"><B><FONT color=#0000ff>INTEREST OF MANAGEMENT
      AND OTHERS IN MATERIAL TRANSACTIONS</FONT></B> </TD></TR></TABLE>
<P align=justify>None of the directors or senior officers of the Company, nor
any person who has held such a position since the beginning of the last
completed financial year end of the Company, nor any associate or affiliate of
the foregoing persons, has any substantial or material interest, direct or
indirect, by way of beneficial ownership of securities or otherwise, in any
material transaction of the Company other than as set out herein.</P>
<P align=justify>Hunter Dickinson Services Inc. (&#147;HDSI&#148;) is a private company
which until recently was owned equally by eight public companies, one of which
is Taseko. 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 a
full cost recovery basis pursuant to an agreement dated June 1, 2008. A member
of the Company&#146;s senior management is employed by HDSI rather than by Taseko
directly.</P>
<P align=justify>As of the date of this AIF, the Company has sold its share in
HDSI for a total consideration of $1.</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 ><B><FONT color=#0000ff>ITEM 14.</FONT></B>
</TD>
    <TD align=left width="90%"><B><FONT color=#0000ff>TRANSFER AGENT AND
      REGISTRAR</FONT></B> </TD></TR></TABLE>
<P align=justify>The Company&#146;s registrar and transfer agent is Computershare
Trust Company of Canada, located in Vancouver, BC.</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 ><B><FONT color=#0000ff>ITEM 15.</FONT></B>
</TD>
    <TD align=left width="90%"><B><FONT color=#0000ff>MATERIAL
      CONTRACTS</FONT></B> </TD></TR></TABLE>
<P align=justify>Taseko&#146;s material contracts are as follows:</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%">(a) </TD>
    <TD>
      <P align=justify>Red Mile Royalty Sale Agreements dated September 29, 2004
      (see &#147;Description of Business &#150; The Gibraltar Mine - Red Mile Royalty Sale
      Agreements&#148;):</P></TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_49></A>
<P align=center>- 48 -</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) </TD>
    <TD>
      <P align=justify>Royalty Agreement among, <I>inter alia</I>, Gibraltar and
      Wilshire (GP) No. 2 Corporation, in its own capacity and in its capacity
      as general partner on behalf of all the limited partners of Red Mile
      Resources No. 2 Limited Partnership (&#147;Red Mile&#148;), pursuant to which
      Gibraltar sold to Red Mile a royalty (the &#147;Royalty Interest&#148;) for
      $67,357,000 (the &#147;Purchase Price&#148;);</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%">ii) </TD>
    <TD>
      <P align=justify>Call Option Agreement among, <I>inter alia</I>, 688888
      B.C. Ltd. (&#147;688888&#148;), a wholly-owned subsidiary of Taseko, and Red Mile
      Resources Inc., in its capacity as general partner on behalf of all of the
      partners of Red Mile Resources Fund Limited Partnership (&#147;RMRF&#148;), pursuant
      to which 688888 has an option to, directly or indirectly, re-acquire the
      Royalty Interest by acquiring from Red Mile the Royalty Interest or from
      RMRF all of the limited partnership units of Red Mile held by
  RMRF;</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%">iii) </TD>
    <TD>
      <P align=justify>Funding Pledge Agreement among, <I>inter alia</I>,
      Alberta Capital Trust Corporation (&#147;Alberta Trust&#148;) and Gibraltar,
      pursuant to which the Purchase Price was invested in a promissory note
      with Alberta Trust, and Gibraltar pledged the promissory note, along with
      interest earned and to be earned thereon, to secure its obligations under
      the Funding Pledge Agreement; and</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%">iv) </TD>
    <TD>
      <P align=justify>Pledge, Priorities and Direction Agreement, pursuant to
      which Gibraltar is entitled to have released to it funds held under a
      promissory note, and interest thereon, to fund its royalty obligations
      under the Royalty Agreement to the extent of its royalty payment
      obligations;</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) </TD>
    <TD>
      <P align=justify>Corporate Services Agreement dated June 1, 2008 between
      Hunter Dickinson Services Inc. (&#147;HD Services&#148;) and the Company, pursuant
      to which HD Services agreed to provide technical, geological, corporate
      communications, administrative and management services to the Company;
      and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(c) </TD>
    <TD>
      <P align=justify>Copper Concentrate Agreement dated April 17, 2008 between
      Gibraltar and MRI Trading AG (&#147;MRI&#148;), pursuant to which Gibraltar sells
      copper concentrate to MRI (see &#147;Description of Business - The Gibraltar
      Mine&#148; &#150; &#147;Mining Operations&#148; &#150; &#147;Contracts and Markets&#148;).</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(d) </TD>
    <TD>
      <P align=justify>Producer Put and Call Option Contracts with Credit Suisse and Investec
      for approximately 50% of the Company's targeted copper production to the end of 2010
      during the year.</P></TD></TR></TABLE>
<P align=justify>The Company also has copper and molybdenum concentrate sales
agreements and various operating agreements in place, which are in the ordinary
course of business.</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 ><B><FONT color=#0000ff>ITEM 16.</FONT></B>
</TD>
    <TD align=left width="90%"><B><FONT color=#0000ff>INTERESTS OF
      EXPERTS</FONT></B> </TD></TR></TABLE>
<P align=justify>The following is a list of the persons or companies named as
having prepared or certified a statement, report or valuation, in this AIF
either directly or in a document incorporated by reference and whose profession
or business gives authority to the statement, report or valuation made by the
person or company:</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%">(a) </TD>
    <TD>
      <P align=justify>The Company&#146;s independent auditors are KPMG LLP,
      Chartered Accountants, who have issued an independent auditors&#146; report
      dated March 31, 2010 in respect of the Company&#146;s consolidated financial
      statements as at December 31, 2009 and for the fiscal year ended December
      31, 2009 and the Company&#146;s internal control over financial reporting as at
      December 31, 2009;</P></TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_50></A>
<P align=center>- 49 -</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) </TD>
    <TD>
      <P align=justify>Scott Jones, P. Eng. authored the &#147;Technical Report on
      the 105 Million Ton Increase in Mineral Reserves at the Gibraltar Mine&#148;
      dated January 23, 2009; and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(c) </TD>
    <TD>
      <P align=justify>Scott Jones, P. Eng. authored the &#147;Technical Report on
      the 344 million tonne increase in mineral reserves at the Prosperity Gold
      &#150; Copper Project&#148; dated December 17, 2009.</P></TD></TR></TABLE>
<P align=justify>To our knowledge, none of these entities or individuals holds,
directly or indirectly, more than 1% of our issued and outstanding common
shares.</P>
<P align=justify>Based on information provided by the relevant persons, and
except as otherwise disclosed in this AIF, none of the persons or companies
referred to above has received or will receive any direct or indirect interests
in our property or the property of an associated party or an affiliate of ours
or have any beneficial ownership, direct or indirect, of our securities or of an
associated party or an affiliate of ours.</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 ><B><FONT color=#0000ff>ITEM 17.</FONT></B>
</TD>
    <TD align=left width="90%"><B><FONT color=#0000ff>ADDITIONAL
      INFORMATION</FONT></B> </TD></TR></TABLE>
<P align=justify>Additional information, including directors&#146; and officers&#146;
remuneration, indebtedness of officers, executive stock options and interests of
management and others in material transactions, where applicable, is contained
in annual financial statements, proxy circulars and interim financial statements
available at the SEDAR internet web site (<U><FONT
color=#0000ff>www.sedar.com</FONT></U>).</P>
<P align=justify>The following documents can be obtained upon request from
Taseko&#146;s Shareholder Communication Department by calling (778) 373-4533:</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%">(i) </TD>
    <TD>
      <P align=justify>this Annual Information Form, together with any document
      incorporated herein by reference;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(ii) </TD>
    <TD>
      <P align=justify>the Annual Report of the Company and any interim
      financial statements filed with Securities Commissions subsequent to the
      audited financial statements for the Company&#146;s most recently completed
      financial year; and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(iii) </TD>
    <TD>
      <P align=justify>the Proxy Circular for the 2009 annual general meeting of
      the Company.</P></TD></TR></TABLE>
<P align=justify>The Company may require the payment of a reasonable charge from
persons, other than security holders of the Company, requesting copies of these
documents.</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 ><B><FONT color=#0000ff>ITEM 18.</FONT></B>
</TD>
    <TD align=left width="90%"><B><FONT color=#0000ff>DISCLOSURE FOR COMPANIES
      NOT SENDING INFORMATION CIRCULARS</FONT></B> </TD></TR></TABLE>
<P align=justify>Not applicable.</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 ><B><FONT color=#0000ff>ITEM 19.</FONT></B>
</TD>
    <TD align=left width="90%"><B><FONT color=#0000ff>CONTROLS AND
      PROCEDURES</FONT></B> </TD></TR></TABLE>
<P align=justify><B>Internal Controls over Financial Reporting
Procedures</B></P>
<P align=justify>The Company's management is responsible for establishing and
maintaining adequate internal control over financial reporting. The Company&#146;s
internal control system was designed to provide reasonable assurance to the
Company&#146;s management and the board of directors regarding the preparation and
fair presentation of published financial statements. Internal control over
financial reporting includes those policies and procedures that: (1) pertain to
the maintenance of records that in reasonable detail accurately and fairly
reflect the transactions and dispositions of the assets of the Company, (2)
provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with GAAP, and that receipts
and expenditures of the Company are being made only in accordance with
authorizations of management and directors of the Company, and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of the Company&#146;s assets that could have a
material effect on the financial statements. All internal control systems, no
matter how well designed, have inherent limitations. Therefore, even those
systems determined effective can provide only reasonable assurance with respect
to financial statement preparation and presentation.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_51></A>
<P align=center>- 50 -</P>
<P align=justify>The Company&#146;s management, with the participation of the Chief
Executive Officer and the Chief Financial Officer, has evaluated the
effectiveness of internal control over financial reporting based on the
framework and criteria established in Internal Control &#150; Integrated Framework,
issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Based on this evaluation, the Company&#146;s management has concluded that internal
control over financial reporting was effective as of December 31, 2009 to
provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements in accordance with GAAP.</P>
<P align=justify>There have been no significant changes in internal controls
over financial reporting during the fiscal period ended December 31, 2009 that
could have materially affected or are reasonably likely to materially affect the
Company's internal control over financial reporting.</P>
<P align=justify><B>Disclosure Controls and Procedures</B></P>
<P align=justify>Disclosure controls and procedures are those controls and
procedures that are designed to ensure that the information required to be
disclosed in the filings under applicable securities regulations is recorded,
processed, summarized and reported within the time periods specified. As at
December 31, 2009, under the supervision and with the participation of the
Company&#146;s management, including the Chief Executive Officer and the Chief
Financial Officer, the Company conducted an evaluation of the effectiveness of
the design and operation of the Company&#146;s disclosure controls and procedures.
Based on this evaluation, the Chief Executive Officer and the Chief Financial
Officer have concluded that, as of the end of the period covered by this report,
the Company&#146;s disclosure controls and procedures were effective.</P>
<P align=justify>There have been no significant changes in the Company's
disclosure controls and procedures during the fiscal period ended December 31,
2009 that could have materially affected or are reasonably likely to materially
affect the Company&#146;s disclosure controls and procedures.</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 ><B><FONT color=#0000ff>ITEM 20.</FONT></B>
</TD>
    <TD align=left width="90%"><B><FONT color=#0000ff>AUDIT
      COMMITTEE</FONT></B> </TD></TR></TABLE>
<P align=justify><B>Audit Committee Charter and Composition of Audit
Committee</B></P>
<P align=justify>The Audit Committee has adopted a charter that sets out its
mandate and responsibilities, and is attached to this AIF as Appendix A.</P>
<P align=justify>The Audit Committee, consisting of David Elliott, Wayne Kirk
and Richard Mundie<SUP>1 </SUP>, reviews all financial statements of the Company
prior to their publication, reviews audits, considers the adequacy of audit
procedures, recommends the appointment of independent auditors, reviews and
approves the professional services to be rendered by them and reviews fees for
audit services. The charter has set criteria for membership which all members of
the Audit Committee are required to meet consistent with National Instrument 52-110 <i>Audit Committees </i>and other
applicable regulatory requirements. The Audit Committee, as needed, meets
separately (without management present) with the Company&#146;s auditors to discuss
the various aspects of the Company&#146;s financial statements and the independent
audit.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_52></A>
<P align=center>- 51 -</P>
<P align=justify>Each Audit Committee member is an independent director and is
financially literate. Mr. Elliott, the Audit Committee&#146;s chairman, is a
Chartered Accountant and hence a financial expert. </P>
<P align=justify>1. Richard Mundie was appointed to the Audit Committee and
replaced William Armstrong on February 2010. </P>
<P align=justify><B>Relevant Education and Experience </B></P>
<P align=justify>Disclosure respecting the education and experience of the Audit
Committee is provided in their biographies above. As a result of their education
and experience, each member of the Audit Committee has familiarity with, an
understanding of, or experience in: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>the accounting principles used by the Company to prepare its financial
  statements, and the ability to assess the general application of those
  principles in connection with estimates, accruals and reserves; </P>
  <LI>
  <P>reviewing or evaluating financial statements that present a breadth and
  level of complexity of accounting issues that are generally comparable to the
  breadth and complexity of issues that can reasonably be expected to be raised
  by the Company&#146;s financial statements, and </P>
  <LI>
  <P>an understanding of internal controls and procedures for financial
  reporting. </P></LI></UL>
<P align=justify><B>Reliance on Certain Exemptions</B></P>
<P align=justify>The Company&#146;s auditors, KPMG LLP, have not provided any
material non-audit services.</P>
<P align=justify><B>Pre-Approval Policies and Procedures for Non-Audit
Services</B></P>
<P align=justify>The Audit Committee has adopted specific policies and
procedures for the engagement of non-audit services.</P>
<P align=justify><B>Code Of Ethics</B></P>
<P align=justify>The Company has adopted a code of ethics that applies to all
personnel of the Company. A copy of the Code of Ethics, which is included as a
part of the Company&#146;s Governance Policies and Procedures Manual, is available on
the Company&#146;s website at <U><FONT color=#0000ff>www.tasekomines.com</FONT></U>.
</P>
<P align=justify><B>Principal Accountant Fees and Services</B></P>
<P align=justify>The following table discloses the aggregate fees billed for
each of the last two fiscal years for professional services rendered by the
Company&#146;s audit firm for various services.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; " align="center" cellSpacing=0 cellPadding=0 width="90%" border=0>

  <TR vAlign=top>
    <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%" ><B>Fiscal year</B> </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="15%"><B>Year ended</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="15%" ><B>(15 months) ended</B></TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Services:</B>
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD
      width="15%" 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>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD width="15%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B>December 31, 2008</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>Audit Fees </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>&nbsp;502,100 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff >&nbsp;526,500 </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 1px solid" align=left>Audit Related Fees
      (1) </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%">19,500 </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%"
    >&#150; </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>Tax Fees </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="15%"
    bgColor=#e6efff>&#150; </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="15%"
    bgColor=#e6efff >&#150; </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 1px solid" align=left>All Other Fees </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%" >&#150; </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%" >&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid">Total </TD>
    <TD width="1%" align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid"
    >$</TD>
    <TD width="15%" align=right bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid"
    >521,600 </TD>
    <TD width="2%" align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid"
    >$</TD>
    <TD width="15%" align=right bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid"
    >526,500 </TD>
    <TD width="2%" align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_53></A>
<P align=center>- 52 -</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 colSpan=2>Note: </TD></TR>
  <TR vAlign=top>
    <TD align=left >(1) </TD>
    <TD align=left width="95%">
      <P align=justify>&#147;Audit-Related Fees&#148; include services that are
      traditionally performed by the auditor. These audit-related services
      include fess billed for services rendered in connection with the Company&#146;s
      IFRS conversion project. </P></TD></TR></TABLE>
<P align=justify>Management of the Company requests approval from the Audit
Committee for all audit and non-audit services to be provided by the Company&#146;s
auditors. The Audit Committee pre-approves all such services with set maximum
dollar amounts for each itemized service. During such deliberations, the Audit
Committee assesses, among other factors, whether the services requested would be
considered &#147;prohibited services&#148; as contemplated under Canadian independence
standards and by the US Securities and Exchange Commission, and whether the
services requested and the fees related to such services could impair the
independence of the auditors.</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 ><B><FONT color=#0000ff>ITEM 21.</FONT></B>
</TD>
    <TD align=left width="90%"><B><FONT color=#0000ff>OFF BALANCE SHEET
      ARRANGEMENTS</FONT></B> </TD></TR></TABLE>
<P align=justify>None.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_54></A>
<P align=center><B>APPENDIX A </B></P>
<P align=center><B>Audit Committee Charter</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 ><B>1.</B> </TD>
    <TD align=left width="90%"><B>PURPOSE: RESPONSIBILITIES AND AUTHORITY</B>
    </TD></TR></TABLE>
<P align=justify>The Committee shall carry out its responsibilities under
applicable laws, regulations and stock exchange requirements with respect to the
employment, compensation and oversight of the Company&#146;s independent auditor, and
other matters under the authority of the Committee. The Committee also shall
assist the Board of Directors in carrying out its oversight responsibilities
relating to the Company&#146;s financial, accounting and reporting processes, the
Company&#146;s system of internal accounting and financial controls, the Company&#146;s
compliance with related legal and regulatory requirements, and the fairness of
transactions between the Company and related parties. In furtherance of this
purpose, the Committee shall have the following responsibilities and
authority:</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 >(a) </TD>
    <TD align=left width="90%"><B><I>Relationship with Independent
      Auditor.</I></B> </TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>(i) Subject to the law of British
Columbia as to the role of the Shareholders in the appointment of independent
auditors, the Committee shall have the sole authority to appoint or replace the
independent auditor.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(ii) The Committee shall be directly
responsible for the compensation and oversight of the work of the independent
auditor (including resolution of disagreements between management and the
independent auditor regarding financial reporting) for the purpose of preparing
or issuing an audit report or related work. </P>
<P style="MARGIN-LEFT: 10%" align=justify>(iii) The independent auditor shall
report directly to the Committee.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(iv) The Committee shall approve in
advance all audit and permitted non-audit services with the independent auditor,
including the terms of the engagements and the fees payable. The Committee may
delegate to a subcommittee the authority to grant pre-approvals of audit and
permitted non-audit services, provided that the decision of any such
subcommittee shall be presented to the full Committee at its next scheduled
meeting.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(v) At least annually, the Committee
shall review and evaluate the experience and qualifications of the lead partner
and senior members of the independent auditor team.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(vi) At least annually, the Committee
shall obtain and review a report from the independent auditor regarding:</P>
<P style="MARGIN-LEFT: 15%" align=justify>(A) the independent auditor&#146;s internal
quality-control procedures;</P>
<P style="MARGIN-LEFT: 15%" align=justify>(B) any material issues raised by the
most recent internal quality-control review, or peer review, of the auditor, or
by any inquiry or investigation by governmental or professional authorities
within the preceding five years respecting one or more independent audits
carried out by the firm;</P>
<P style="MARGIN-LEFT: 15%" align=justify>(C) any steps taken to deal with any
such issues; and</P>
<P style="MARGIN-LEFT: 15%" align=justify>(D) all relationships between the
independent auditor and the Company. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=center>- 2 -</P>
<P style="MARGIN-LEFT: 10%" align=justify>(vii) At least annually, the Committee
shall evaluate the qualifications, performance and independence of the
independent auditor, including considering whether the auditor&#146;s quality
controls are adequate and the provision of permitted non-audit services is
compatible with maintaining the auditor&#146;s independence. </P>
<P style="MARGIN-LEFT: 10%" align=justify>(viii) The Committee shall ensure the
rotation of the lead (or coordinating) audit partner having primary
responsibility for the audit, the concurring partner responsible for reviewing
the audit, and other audit partners as required by law. </P>
<P style="MARGIN-LEFT: 10%" align=justify>(ix) The Committee shall consider
whether, in order to assure continuing auditor independence, it is appropriate
to adopt a policy of rotating the independent auditing firm on a regular
basis.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(x) The Committee shall recommend to
the Board policies for the Company&#146;s hiring of employees or former employees of
the independent auditor who were engaged on the Company&#146;s account or
participated in any capacity in the audit of the Company.</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 >(b) </TD>
    <TD align=left width="90%"><B><I>Financial Statement and Disclosure
      Review.</I></B> </TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>(i) The Committee shall review and
discuss with management and the independent auditor the annual audited financial
statements, including disclosures made in management&#146;s discussion and analysis,
and recommend to the Board whether the audited financial statements should be
filed with applicable securities regulatory authorities and included in the
Company&#146;s annual reports.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(ii) The Committee shall review and
discuss with management (and, to the extent the Committee deems it necessary or
appropriate, the independent auditor) the Company&#146;s quarterly financial
statements, including disclosures made in management&#146;s discussion and analysis,
and recommend to the Board whether such financial statements should be filed
with applicable securities regulatory authorities.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(iii) The Committee shall review and
discuss with management and the independent auditor significant financial
reporting issues and judgments made in connection with the preparation of the
Company&#146;s financial statements, including the independent auditor&#146;s assessment
of the quality of the Company&#146;s accounting principles, any significant changes
in the Company&#146;s selection or application of accounting principles, any major
issues as to the adequacy of the Company&#146;s internal controls over financial
reporting, and any special steps adopted in light of material control
deficiencies.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(iv) At least annually and prior to
the publication of annual audited financial statements, the Committee shall
review and discuss with management and the independent auditor a report from the
independent auditor on:</P>
<P style="MARGIN-LEFT: 15%" align=justify>(A) all critical accounting policies
and practices used by the Company;</P>
<P style="MARGIN-LEFT: 15%" align=justify>(B) all alternative accounting
treatments of financial information that have been discussed with management
since the prior report, ramifications of the use of such alternative disclosures
and treatments, the treatment preferred by the independent auditor, and an
explanation of why the independent auditor&#146;s preferred method was not adopted;
and.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=center>- 3 -</P>
<P style="MARGIN-LEFT: 15%" align=justify>(C) other material written
communications between the independent auditor and management since the prior
report, such as any management letter or schedule of unadjusted differences, the
development, selection and disclosure of critical accounting estimates, and
analyses of the effect of alternative assumptions, estimates or GAAP methods on
the Company&#146;s financial statements.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(v) Prior to their filing or issuance,
the Committee shall review the Company&#146;s Annual Information Form/Annual Report
to the SEC, quarterly and annual earnings press releases, and other financial
press releases, including the use of &#147;pro forma&#148; or &#147;adjusted&#148; non-GAAP
information.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(vi) The Committee shall review and
discuss with management the financial information and earnings guidance provided
to analysts and rating agencies. Such discussion may be specific or it may be in
general regarding the types of information to be disclosed and the types of
presentations to be made.</P>
<P style="MARGIN-LEFT: 5%" align=justify>(c) <B><I>Conduct of the Annual
Audit</I></B>. The Committee shall oversee the annual audit, and in the course
of such oversight the Committee shall have the following responsibilities and
authority: </P>
<P style="MARGIN-LEFT: 10%" align=justify>(i) The Committee shall meet with the
independent auditor prior to the audit to discuss the planning and conduct of
the annual audit, and shall meet with the independent auditor as may be
necessary or appropriate in connection with the audit.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(ii) The Committee shall ascertain
that the independent auditor is registered and in good standing with the
Canadian Public Accounting Board and the Public Company Accounting Oversight
Board and that the independent auditor satisfies all applicable Canadian
independence standards, Independence Standards Board Standard No. 1, and SEC
Regulation S-X, Section 2-01. The Committee shall obtain from the auditor a
written statement delineating all relationships between the auditor and the
Company as per ISB Standard 1, and review relationships that may impact the
objectivity and independence of the auditor. </P>
<P style="MARGIN-LEFT: 10%" align=justify>(iii) The Committee shall discuss with
the independent auditor the matters required to be discussed by Statement on
Auditing Standards No. 61 relating to the conduct of the audit, including</P>
<P style="MARGIN-LEFT: 15%" align=justify>(A) the adoption of, or changes to,
the Company&#146;s significant auditing and accounting principles and practices as
suggested by the independent auditor, internal auditors or management;</P>
<P style="MARGIN-LEFT: 15%" align=justify>(B) the management letter provided by
the independent auditor and the Company&#146;s response to that letter; and</P>
<P style="MARGIN-LEFT: 15%" align=justify>(C) any difficulties encountered in
the course of the audit work, including any restrictions on the scope of
activities or access to requested information, and any significant disagreements
with management.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(iv) The Committee shall obtain from
the independent auditor assurance that the audit was conducted in a manner
consistent with Section 10A of the Securities Exchange Act of 1934 and that, in
the course of conducting the audit, the independent auditor has not become aware of information indicating
that an illegal act has or may have occurred or, if such an act may have
occurred, that the independent auditor has taken all action required by Section
10A(b) of the Securities Exchange Act of 1934.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=center>- 4 -</P>
<P style="MARGIN-LEFT: 10%" align=justify>(v) The Committee shall make such
inquiries to the management and the independent auditor as the Committee members
deem necessary or appropriate to satisfy themselves regarding the efficacy of
the Company&#146;s financial and internal controls and procedures and the auditing
process.</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 >(d) </TD>
    <TD align=left width="90%"><B><I>Compliance and Oversight.</I></B>
  </TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>(i) The Committee shall meet
periodically with management and the independent auditor in separate executive
sessions. The Committee may also, to the extent it deems necessary or
appropriate, meet with the Company&#146;s investment bankers and financial analysts
who follow the Company. </P>
<P style="MARGIN-LEFT: 10%" align=justify>(ii) The Committee shall discuss with
management and the independent auditor the effect of regulatory and accounting
initiatives as well as off-balance sheet structures on the Company&#146;s financial
statements. </P>
<P style="MARGIN-LEFT: 10%" align=justify>(iii) The Committee shall discuss with
management the Company&#146;s major financial risk exposures and the steps management
has taken to monitor and control such exposures, including the Company&#146;s risk
assessment and risk management policies.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(iv) At least annually and prior to
the filing of the AIF/Annual Report to the SEC, the Committee shall review with
management and the independent auditor the disclosure controls and procedures
and confirm that the Company (with CEO and CFO participation) has evaluated the
effectiveness of the design and operation of the controls within 90 days prior
to the date of filing of the AIF/Annual Report to the SEC. The Committee also
shall review with management and the independent auditor any deficiencies in the
design and operation of internal controls and significant deficiencies or
material weaknesses therein and any fraud involving management or other
employees who have a significant role in the Company&#146;s internal controls. As a
part of that review, the Committee shall review the process followed in
preparing and verifying the accuracy of the required CEO and CFO annual
certifications.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(v) At least annually and prior to the
filing of the AIF/Annual Report to the SEC, the Committee shall review with
management and the independent auditor management&#146;s internal control report and
assessment of the internal controls and procedures, and the independent
auditor&#146;s report on and assessment of the internal controls and procedures. </P>
<P style="MARGIN-LEFT: 10%" align=justify>(vi) The Committee shall establish
procedures for the receipt, retention and treatment of complaints received by
the Company regarding accounting, internal accounting controls or auditing
matters, and the confidential, anonymous submission by employees of concerns
regarding questionable accounting or auditing matters.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(vii) The Committee shall discuss with
management and the independent auditor any correspondence with regulators or
governmental agencies and any employee complaints or reports which raise
material issues regarding the Company&#146;s financial statements or accounting
policies.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=center>- 5 -</P>
<P style="MARGIN-LEFT: 10%" align=justify>(viii) At least annually, the
Committee shall meet with the Company&#146;s legal counsel and discuss any legal
matters that may have a material impact on the financial statements or the
Company&#146;s compliance policies.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(ix) The Committee shall prepare all
reports required under applicable laws, regulations and stock exchange
requirements. </P>
<P style="MARGIN-LEFT: 10%" align=justify>(x) The Committee shall recommend to
the Nominating and Governance Committee the qualifications and criteria for
membership on the Committee. </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 >(e) </TD>
    <TD align=left width="90%"><B><I>Related Party Transactions.</I></B>
  </TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>(i) The Committee shall review for
fairness to the Company proposed transactions, contracts and other arrangements
between the Company and its subsidiaries and any related party or affiliate, and
make recommendations to the Board whether any such transactions, contracts and
other arrangements should be approved or continued. The foregoing shall not
include any compensation payable pursuant to any plan, program, contract or
arrangement subject to the authority of the Company&#146;s Compensation Committee.
</P>
<P style="MARGIN-LEFT: 10%" align=justify>(ii) As used herein the term &#147;related
party&#148; means any officer or director of the Company or any subsidiary, or any
shareholder holding a greater than 10% direct or indirect financial or voting
interest in the Company, and the term &#147;affiliate&#148; means any person, whether
acting alone or in concert with others, that has the power to exercise a
controlling influence over the Company and its subsidiaries. "Related party"
includes Hunter Dickinson Services Inc. </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 ><B>2.</B> </TD>
    <TD align=left width="95%"><B>STRUCTURE AND MEMBERSHIP</B>
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>(f) <B>Number and qualification</B>.
The Committee shall consist of three persons unless the Board should from time
to time otherwise determine. All members of the Committee shall meet the
experience and financial literacy requirements of National Instrument NI 52-110
and the rules of the Toronto Stock Exchange and the NYSE Amex. At least one
member of the Committee shall be a &#147;financial expert&#148; as defined in Item 407 of
SEC Regulation S-K. </P>
<P style="MARGIN-LEFT: 5%" align=justify>(g) <B>Selection and Removal</B>.
Members of the Committee shall be appointed by the Board, upon the
recommendation of the Nominating and Corporate Governance Committee. The Board
may remove members of the Committee at any time with or without cause.</P>
<P style="MARGIN-LEFT: 5%" align=justify>(h) <B>Independence</B>. All of the
members of the Committee shall be &#147;independent&#148; as required for audit committees
by National Instrument NI 52-110, the rules of the Toronto Stock Exchange and
the NYSE Amex, and SEC Rule 10A-3.</P>
<P style="MARGIN-LEFT: 5%" align=justify>(i) <B>Chair</B>. Unless the Board
elects a Chair of the Committee, the Committee shall elect a Chair by majority
vote.</P>
<P style="MARGIN-LEFT: 5%" align=justify>(j) <B>Compensation</B>. The
compensation of the Committee shall be as determined by the Board.</P>
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<P align=center>- 6 -</P>
<P style="MARGIN-LEFT: 5%" align=justify>(k) <B>Term</B>. Members of the
Committee shall be appointed for one-year terms. Each member shall serve until
his or her replacement is appointed, or until he or she resigns or is removed
from the Board or the Committee.</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 ><B>3.</B> </TD>
    <TD align=left width="95%"><B>PROCEDURES AND ADMINISTRATION</B>
  </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>(l) <B>Meetings</B>. The Committee
shall meet as often as it deems necessary in order to perform its
responsibilities, but not less than quarterly. The Committee shall keep minutes
of its meetings and any other records as it deems appropriate.</P>
<P style="MARGIN-LEFT: 5%" align=justify>(m) <B>Subcommittees</B>. The Committee
may form and delegate authority to one or more subcommittees, consisting of at
least one member, as it deems appropriate from time to time under the
circumstances.</P>
<P style="MARGIN-LEFT: 5%" align=justify>(n) <B>Reports to the Board</B>. The
Committee shall regularly report to the Board with respect to such matters as
are relevant to the Committee&#146;s discharge of its responsibilities, and shall
report in writing on request of the Chairman of the Board.</P>
<P style="MARGIN-LEFT: 5%" align=justify>(o) <B>Charter</B>. The Committee
shall, at least annually, review and reassess the adequacy of this Charter and
recommend any proposed changes to the Board for approval.</P>
<P style="MARGIN-LEFT: 5%" align=justify>(p) <B>Independent Advisors</B>. The
Committee shall have the authority to engage such independent legal and other
advisors as it deems necessary or appropriate to carry out its responsibilities.
Such independent advisors may be regular advisors to the Company. The Committee
is empowered, without further action by the Board, to cause the Company to pay
appropriate compensation to advisors engaged by the Committee.</P>
<P style="MARGIN-LEFT: 5%" align=justify>(q) <B>Investigations</B>. The
Committee shall have the authority to conduct or authorize investigations into
any matters within the scope of its responsibilities as it deems appropriate,
including the authority to request any Officer or other person to meet with the
Committee and to access all Company records.</P>
<P style="MARGIN-LEFT: 5%" align=justify>(r) <B>Annual Self-Evaluation</B>. The
Committee shall evaluate its own performance at least annually.</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 ><B>4.</B> </TD>
    <TD align=left width="95%"><B>ADDITIONAL POWERS</B> </TD></TR></TABLE>
<P align=justify>The Committee shall have such other duties as may be delegated
from time to time by the Board of Directors.</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 ><B>5.</B> </TD>
    <TD align=left width="95%"><B>LIMITATION OF AUDIT COMMITTEE&#146;S ROLE</B>
  </TD></TR></TABLE>
<P align=justify>While the Committee has the responsibilities and powers set
forth in this Charter, it is not the duty of the Committee to plan or conduct
audits or to determine that the Company&#146;s financial statements and disclosures
are complete and accurate and are in accordance with GAAP and applicable rules
and regulations. These are the responsibilities of management and the
independent auditor.</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 ><B>6.</B> </TD>
    <TD align=left width="95%"><B>AUDIT COMMITTEE MEMBER INDEPENDENCE,
      FINANCIAL LITERACY AND</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="95%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<B>FINANCIAL EXPERT REQUIREMENTS</B>
  </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 ><B>A.</B> </TD>
    <TD align=left width="95%"><B>Independence</B> </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<P align=center>- 7 -</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 >(s) </TD>
    <TD align=left width="95%">See Appendix 2 of the Company&#146;s Corporate
      Governance Overview and Guidelines. </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="95%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>B.</B> </TD>
    <TD align=left width="95%"><B>Financial Literacy and Financial Expert
      Requirements</B> </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=bottom>
    <TD align=center colSpan=2><B>NI 52-110</B>&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="15%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=2>Section 3.1(4) states that each audit committee
      member must be financially literate. </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="15%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>Section 1.6 defines the meaning of financial literacy as
      follows: </TD>
    <TD align=left width="15%">&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="15%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=2>&#147;For the purposes of this Instrument, an
      individual is financially literate if he or she has the ability to read
      and understand a set of financial statements that present a breadth and
      level of complexity of accounting issues that are generally comparable to
      the breadth and complexity of the issues that can reasonably be expected
      to be raised by the issuer&#146;s financial statements.&#148; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="15%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD align=center colSpan=2><B>NYSE AMEX Section
      803(B)(2)(a)(iii)</B>&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="15%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=2>Each issuer must have an Audit Committee of at
      least three members, each of whom: </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="15%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=2>
      <P align=justify>&#147;is able to read and understand fundamental financial
      statements, including a company&#146;s balance sheet, income statement, and
      cash flow statement. Additionally, each issuer must certify that it has,
      and will continue to have, at least one member of the audit committee who
      is financially sophisticated, in that he or she has past employment
      experience in finance or accounting, requisite professional certification
      in accounting, or any other comparable experience or background which
      results in the individual&#146;s financial sophistication, including but not
      limited to being or having been a chief executive officer, chief financial
      officer, other senior officer with financial oversight responsibilities. A
      director who qualifies as an audit committee financial expert under Item
      407(d)(5)(ii) of Regulation S-K . is presumed to qualify as financially
      sophisticated.&#148; </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="15%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=center colSpan=2><B>ITEM 407(d)(5)(ii) 0F REGULATION S-K,
      DEFINITION OF FINANCIAL EXPERT</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="15%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=2>For purposes of this Item, an audit committee
      financial expert means a person who has the following attributes:
  </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%">(A) </TD>
    <TD>
      <P align=justify>An understanding of generally accepted accounting
      principles and financial statements;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(B) </TD>
    <TD>
      <P align=justify>The ability to assess the general application of such
      principles in connection with the accounting for estimates, accruals and
      reserves;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(C) </TD>
    <TD>
      <P align=justify>Experience preparing, auditing, analyzing or evaluating
      financial statements that present a breadth and level of complexity of
      accounting issues that are generally comparable to the breadth and
      complexity of issues that can reasonably be expected to be raised by the
      small business issuer&#146;s financial statements, or experience actively
      supervising one or more persons engaged in such activities;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(D) </TD>
    <TD>
      <P align=justify>An understanding of internal control over financial
      reporting; and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(E) </TD>
    <TD>
      <P align=justify>An understanding of audit committee
  functions.</P></TD></TR></TABLE>
<P align=justify>A person shall have acquired such attributes through: </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<P align=center>- 8 -</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%">(A) </TD>
    <TD>
      <P align=justify>Education and experience as a principal financial
      officer, principal accounting officer, controller, public accountant or
      auditor or experience in one or more positions that involve the
      performance of similar functions;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(B) </TD>
    <TD>
      <P align=justify>Experience actively supervising a principal financial
      officer, principal accounting officer, controller, public accountant,
      auditor or person performing similar functions;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(C) </TD>
    <TD>
      <P align=justify>Experience overseeing or assessing the performance of
      companies or public accountants with respect to the preparation, auditing
      or evaluation of financial statements; or</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(D) </TD>
    <TD>
      <P align=justify>Other relevant experience.</P></TD></TR></TABLE><BR>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.6
<SEQUENCE>7
<FILENAME>exhibit99-6.htm
<DESCRIPTION>CONSOLIDATED FINANCIAL STATEMENTS
<TEXT>
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   <TITLE>Taseko Mines Limited: Exhibit 99.6 - Filed by newsfilecorp.com</TITLE>
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<P align=center><img
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<BR>
<P align=center>CONSOLIDATED FINANCIAL STATEMENTS</P>
<P align=center>FISCAL PERIODS ENDED<BR>DECEMBER 31, 2009 and 2008 and SEPTEMBER
30, 2007</P>
<P align=center>(Expressed in thousands of Canadian Dollars)</P>
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<BR>
<P align=justify><B>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM </B></P>
<P align=justify>To the Board of Directors of Taseko Mines Limited <B></B></P>
<P align=justify>We have audited the accompanying consolidated balance sheets of
  Taseko Mines Limited ("the Company") and subsidiaries as of December 31, 2009
  and 2008 and the related consolidated statements of operations and comprehensive
  income (loss), shareholders&#146; equity and cash flows for the year ended December
  31, 2009, the fifteen month period ended December 31, 2008 and the year ended
  September 30, 2007. These consolidated financial statements are the
  responsibility of the Company's management. Our responsibility is to express an
  opinion on these consolidated financial statements based on our audits. </P>
<P align=justify>We conducted our audits in accordance with the standards of the
  Public Company Accounting Oversight Board (United States). Those standards
  require that we plan and perform the audit to obtain reasonable assurance about
  whether the financial statements are free of material misstatement. An audit
  includes examining, on a test basis, evidence supporting the amounts and
  disclosures in the financial statements. An audit also includes assessing the
  accounting principles used and significant estimates made by management, as well
  as evaluating the overall financial statement presentation. We believe that our
  audits provide a reasonable basis for our opinion. </P>
<P align=justify>In our opinion, the consolidated financial statements referred
  to above present fairly, in all material respects, the financial position of the
  Company and subsidiaries as of December 31, 2009 and 2008 and the results of
  their operations and their cash flows for the year ended December 31, 2009, the
  fifteen month period ended December 31, 2008 and the year ended September 30,
  2007 in conformity with Canadian generally accepted accounting principles. </P>
<P align=justify>Canadian generally accepted accounting principles vary in
  certain significant respects from US generally accepted accounting principles.
  Information relating to the nature and effect of such differences is presented
  in Note 25<B> </B>to the<B> </B>consolidated financial statements. </P>
<P align=justify>As discussed in Note 4(d) to the consolidated financial
  statements, the Company has changed its disclosures in respect of the fair value
  of financial instruments as at December 31, 2009 and 2008 due to the adoption of
  amendments to CICA Handbook Section 3862, <I>Financial Instruments &#150;
    Disclosures.</I></P>



<P align=justify>We also have audited, in accordance with the standards of the
  Public Company Accounting Oversight Board (United States), the Company's
  internal control over financial reporting as of December 31, 2009, based on the
  criteria established in Internal Control&#151;Integrated Framework issued by the
  Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our
  report dated March 31, 2010<B><I> </I></B>expressed an unqualified opinion on
  the effectiveness of the Company&#146;s internal control over financial reporting. </P>
<IMG src="kpmgsignature.jpg" border=0> <BR>
<P align=justify>Chartered Accountants</P>
<P align=justify>Vancouver, Canada <BR>
  March 31, 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 align=left  >&nbsp;</TD>
    <TD width="60%" align=left nowrap >KPMG LLP is a Canadian limited
      liability partnership and a member firm of the KPMG </TD>
    <TD align=left width="20%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD align=left width="60%" >network of independent member
      firms affiliated with KPMG International Cooperative </TD>
    <TD align=left width="20%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD align=left width="60%" >(&#147;KPMG International&#148;), a Swiss
      entity. </TD>
    <TD align=left width="20%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD align=left width="60%" >KPMG Canada provides services to
      KPMG LLP. </TD>
    <TD align=left width="20%"
>&nbsp;</TD>
  </TR>
</TABLE><br>

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<P align=justify><B>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM </B></P>
<P align=justify>To the Board of Directors of Taseko Mines Limited<B> </B></P>
<P align=justify>We have audited Taseko Mine Limited ("the Company")&#146;s internal
  control over financial reporting as of December 31, 2009 based on the criteria
  established in Internal Control&#151;Integrated Framework issued by the Committee of
  Sponsoring Organizations of the Treadway Commission (COSO).<B> </B>The Company's
  management is responsible for maintaining effective internal control over
  financial reporting and for its assessment of the effectiveness of internal
  control over financial reporting. Our responsibility is to express an opinion
  the Company's internal control over financial reporting based on our audit. </P>
<P align=justify>We conducted our audit in accordance with the standards of the
  Public Company Accounting Oversight Board (United States). Those standards
  require that we plan and perform the audit to obtain reasonable assurance about
  whether effective internal control over financial reporting was maintained in
  all material respects. Our audit included obtaining an understanding of internal
  control over financial reporting, assessing the risk that a material weakness
  exists, and testing and evaluating the design and operating effectiveness of
  internal control based on the assessed risk. Our audit also included performing
  such other procedures as we considered necessary in the circumstances. We
  believe that our audit provides a reasonable basis for our opinion. </P>
<P align=justify>A company's internal control over financial reporting is a
  process designed to provide reasonable assurance regarding the reliability of
  financial reporting and the preparation of financial statements for external
  purposes in accordance with generally accepted accounting principles. A
  company's internal control over financial reporting includes those policies and
  procedures that (1) pertain to the maintenance of records that, in reasonable
  detail, accurately and fairly reflect the transactions and dispositions of the
  assets of the company; (2) provide reasonable assurance that transactions are
  recorded as necessary to permit preparation of financial statements in
  accordance with generally accepted accounting principles, and that receipts and
  expenditures of the company are being made only in accordance with
  authorizations of management and directors of the company; and (3) provide
  reasonable assurance regarding prevention or timely detection of unauthorized
  acquisition, use, or disposition of the company's assets that could have a
  material effect on the financial statements.</P>

<P align=justify>Because of its inherent limitations, internal control over
  financial reporting may not prevent or detect misstatements. Also, projections
  of any evaluation of effectiveness to future periods are subject to the risk
  that controls may become inadequate because of changes in conditions, or that
  the degree of compliance with the policies or procedures may deteriorate. </P>
<P align=justify>In our opinion, the Company<B> </B>maintained, in all material
  respects, effective internal control over financial reporting as of December 31,
  2009, based on the criteria established in Internal Control&#151;Integrated Framework
  issued by the Committee of Sponsoring Organizations of the Treadway Commission
  (COSO).<I> </I></P>
<P align=justify>We also have audited, in accordance with the standards of the
  Public Company Accounting Oversight Board (United States), the consolidated
  balance sheets of the Company<B> </B>as of December 31, 2009 and 2008, and the
  related consolidated statements of operations and comprehensive income (loss),
  shareholders&#146; equity and cash flows for the year ended December 31, 2009, the
  fifteen-month period ended December 31, 2008 and the year ended September 30,
  2007, and our report dated March 31, 2010<B><I> </I></B>expressed an unqualified
  opinion on those<I> </I>consolidated<I> </I>financial statements. </P>
<IMG
src="kpmgsignature.jpg" border=0> <BR>
<P align=justify>Chartered Accountants </P>
<P align=justify>Vancouver, Canada <BR>
  March 31, 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 align=left  >&nbsp;</TD>
    <TD width="60%" align=left nowrap >KPMG LLP is a Canadian limited
      liability partnership and a member firm of the KPMG </TD>
    <TD align=left width="20%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD align=left width="60%" >network of independent member
      firms affiliated with KPMG International Cooperative </TD>
    <TD align=left width="20%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD align=left width="60%" >(&#147;KPMG International&#148;), a Swiss
      entity. </TD>
    <TD align=left width="20%" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD align=left width="60%" >KPMG Canada provides services to
      KPMG LLP. </TD>
    <TD align=left width="20%"
>&nbsp;</TD>
  </TR>
</TABLE>
<br>

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  <TR vAlign=top>
    <TD align=left><B>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Consolidated Balance Sheets</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in thousands of Canadian Dollars)
</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 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="12%" align=right nowrap style="BORDER-TOP: #000000 2px solid">December
      31 </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 width="12%" align=right nowrap style="BORDER-TOP: #000000 2px solid">December
      31 </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>&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%">2008
    </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="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 align=left bgColor=#e6efff><B>ASSETS</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Current assets</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Cash and equivalents </TD>
    <TD width="1%" align=left valign="bottom" >$</TD>
    <TD width="12%" align=right valign="bottom">&nbsp;35,082 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >$</TD>
    <TD width="12%" align=right valign="bottom">&nbsp;4,587 </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Restricted cash (note 11) </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>3,153 </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="12%" align=right valign="bottom" bgColor=#e6efff>4,400 </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Marketable securities and investments (note 7) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">11,856 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">3,138 </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Accounts receivable </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>12,505 </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="12%" align=right valign="bottom" bgColor=#e6efff>4,606 </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Inventory (note 5) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">21,792 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">20,340 </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Prepaid expenses </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>2,112 </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="12%" align=right valign="bottom" bgColor=#e6efff>329 </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Advances for equipment (note 23(a)) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">1,119 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">499 </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp;Current portion of promissory note (note 20(a)) </TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">4,697 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">3,384 </TD>
  <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">92,316 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">41,283 </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD width="2%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Advances for equipment </B>(note 23(a)) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">2,122 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">5,882 </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Reclamation deposits </B>(note 15) </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>29,421 </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="12%" align=right valign="bottom" bgColor=#e6efff>32,396 </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Promissory note </B>(note 20(a)) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">73,400 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">73,684 </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff><B>Mineral property interests, plant and equipment
      </B>(note 10) </TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">337,836 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">325,000 </TD>
  <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp; </TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"
    ><B>$</B></TD>
    <TD
      width="12%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>&nbsp;535,095</B> </TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"
    ><B>$</B></TD>
    <TD
      width="12%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>&nbsp;478,245</B> </TD>
  <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD width="2%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>LIABILITIES AND SHAREHOLDERS' EQUITY</B> </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=left valign="bottom">&nbsp; </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD width="2%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Current liabilities</B> </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=left valign="bottom">&nbsp; </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Bank indebtedness (note 13) </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>$</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>&nbsp;&#150; </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>$</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>&nbsp;5,737 </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Accounts payable and accrued liabilities </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">14,821 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">53,036 </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Amounts due to a related party (note
      12) </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>13 </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="12%" align=right valign="bottom" bgColor=#e6efff>1,772 </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Current portion of long-term credit facility (note
      17) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">21,896 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">&#150; </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Convertible debt (note 14) </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>&#150; </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="12%" align=right valign="bottom" bgColor=#e6efff>35,219 </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Current portion of long-term loan obligations (note
      16) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">5,782 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">3,324 </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Current portion of deferred revenue
      (note 20(a)) </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>175 </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="12%" align=right valign="bottom" bgColor=#e6efff>175 </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Current portion of royalty obligations (note 20) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">11,208 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">3,384 </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Liability under derivative
      instruments (note 19) </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>18,935 </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="12%" align=right valign="bottom" bgColor=#e6efff>&#150; </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Income taxes payable </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">370 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">937 </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp;Current portion of future income taxes (note 21) </TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">1,979 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">8,469 </TD>
  <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">75,179 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">112,053 </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD width="2%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Income taxes </B>(note 21) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">32,299 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">30,685 </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Royalty obligations </B>(note 20) </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>57,621 </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="12%" align=right valign="bottom" bgColor=#e6efff>60,973 </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Deferred revenue </B>(note 20(a)) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">656 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">831 </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Long-term credit facility </B>(note 17)
    </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>29,609 </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="12%" align=right valign="bottom" bgColor=#e6efff>&#150; </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Long-term loan obligations </B>(note 16) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">16,916 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">13,100 </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Site closure and reclamation obligation
      </B>(note 15) </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>9,807 </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="12%" align=right valign="bottom" bgColor=#e6efff>10,366 </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Future income
      taxes </B>(note 21) </TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="12%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">16,315 </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="12%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">15,330 </TD>
  <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>238,402 </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="12%" align=right valign="bottom" bgColor=#e6efff>243,338 </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
  <TD width="2%" valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Shareholders' equity</B> </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" 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="12%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Share capital (note 18) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">323,734 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">285,690 </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Equity component of convertible debt
      (note 14) </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>&#150; </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="12%" align=right valign="bottom" bgColor=#e6efff>3,832 </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Tracking preferred shares (note 8) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">26,642 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">26,642 </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Contributed surplus </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>20,318 </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="12%" align=right valign="bottom" bgColor=#e6efff>14,561 </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Accumulated other comprehensive gain (loss) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">4,576 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">(6,680</TD>
  <TD width="2%" align=left valign="bottom" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp;Deficit </TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(78,577</TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(89,138</TD>
  <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">296,693 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">234,907 </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD width="2%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Commitments (note 23) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="12%" align=left valign="bottom">&nbsp; </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Subsequent events (note 7, 9(b), 12, 17, 20(b), 23(c) and
      24) </TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
  <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp; </TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"
    ><B>$</B></TD>
    <TD
      width="12%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>&nbsp;535,095</B> </TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"
    ><B>$</B></TD>
    <TD
      width="12%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>&nbsp;478,245</B> </TD>
  <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"
    >&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>
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<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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Consolidated Statements of Operations and Comprehensive
      Income (Loss)</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in thousands of Canadian Dollars, except per
      share amounts) </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 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="1%">&nbsp;</TD>
    <TD width="10%" align=right nowrap style="BORDER-TOP: #000000 2px solid">Year
      Ended </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 width="10%" align=right nowrap style="BORDER-TOP: #000000 2px solid">Fifteen
      Months Ended </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="10%">Year
      Ended </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>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD
      width="10%" 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>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD
      width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">December 31, 2008 </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="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">September 30, 2007 </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="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Revenue</B> </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Copper </TD>
    <TD width="1%" align=left valign="bottom">$</TD>
    <TD width="10%" align=right valign="bottom">&nbsp;180,115 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">$</TD>
    <TD width="10%" align=right valign="bottom">&nbsp;209,784 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">$</TD>
    <TD width="10%" align=right valign="bottom">&nbsp;199,872 </TD>
  <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp;Molybdenum </TD>
    <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">8,787 </TD>
    <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">21,894 </TD>
    <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">18,554 </TD>
  <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">188,902 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">231,678 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">218,426 </TD>
  <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Cost of sales</B> </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>132,434 </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="10%" align=right valign="bottom" bgColor=#e6efff>196,261 </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="10%" align=right valign="bottom" bgColor=#e6efff>109,533 </TD>
  <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Depletion,
      depreciation and amortization</B> </TD>
    <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">8,150    </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="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">7,363    </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="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">3,155    </TD>
  <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff><B>Operating profit</B> </TD>
    <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">48,318 </TD>
    <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">28,054 </TD>
    <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">105,738 </TD>
  <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
  <TD width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Expenses (income)</B> </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" 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="10%" 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="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Accretion of reclamation obligation (note 15) </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">968 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">1,451 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">1,777 </TD>
  <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Asset retirement obligation change of
      estimates (note 15) </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>&#150; </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="10%" align=right valign="bottom" bgColor=#e6efff>(6,917</TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(4,570</TD>
  <TD width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Change in fair value of financial instruments </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">&#150; </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">886 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">1,925 </TD>
  <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Exploration </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>3,407 </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="10%" align=right valign="bottom" bgColor=#e6efff>11,864 </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="10%" align=right valign="bottom" bgColor=#e6efff>8,967 </TD>
  <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Foreign exchange loss (gain) </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(8,800</TD>
    <TD width="2%" align=left valign="bottom">) </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">4,032 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">233 </TD>
  <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Gain on convertible bond repurchase
      (note 14(a)) </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(1,630</TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>&#150; </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="10%" align=right valign="bottom" bgColor=#e6efff>&#150; </TD>
  <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;General and administration </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">8,382 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">11,896 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">6,501 </TD>
  <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Interest accretion on convertible
      debt (note 14) </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>1,260 </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="10%" align=right valign="bottom" bgColor=#e6efff>2,938 </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="10%" align=right valign="bottom" bgColor=#e6efff>2,922 </TD>
  <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Interest and other income </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(7,402</TD>
    <TD width="2%" align=left valign="bottom">) </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(9,701</TD>
    <TD width="2%" align=left valign="bottom">) </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(11,093</TD>
  <TD width="2%" align=left valign="bottom">) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Interest expense </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>8,265 </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="10%" align=right valign="bottom" bgColor=#e6efff>8,284 </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="10%" align=right valign="bottom" bgColor=#e6efff>5,947 </TD>
  <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Gain on sale of marketable securities </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(188</TD>
    <TD width="2%" align=left valign="bottom">) </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(1,034</TD>
    <TD width="2%" align=left valign="bottom">) </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(1,508</TD>
  <TD width="2%" align=left valign="bottom">) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Realized loss on derivative
      instruments (note 19) </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>11,330 </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="10%" align=right valign="bottom" bgColor=#e6efff>&#150; </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="10%" align=right valign="bottom" bgColor=#e6efff>&#150; </TD>
  <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Stock-based
      compensation </TD>
    <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">5,696    </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="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">6,442    </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="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">6,771    </TD>
  <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">21,288 </TD>
    <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">30,141 </TD>
    <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">17,872 </TD>
  <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
  <TD width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Earnings (loss) before other items </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>27,030 </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="10%" align=right valign="bottom" bgColor=#e6efff>(2,087</TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>87,866 </TD>
  <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
  <TD width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Other items </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" 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="10%" 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="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Unrealized
      loss on derivative instruments (note 19) </TD>
    <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">15,775 </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="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&#150; </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="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&#150; </TD>
  <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Earnings (loss) before income taxes </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>11,255 </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="10%" align=right valign="bottom" bgColor=#e6efff>(2,087</TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>87,866 </TD>
  <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
  <TD width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Current income tax expense
      (recovery) (note 21) </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>669 </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="10%" align=right valign="bottom" bgColor=#e6efff>(2,151</TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>3,959 </TD>
  <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;
      &nbsp;Future income tax expense (recovery) (note 21) </TD>
    <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">25</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="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(3,446</TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">35,645 </TD>
  <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><B>Net earnings
      for the year</B> </TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">$</TD>
    <TD
      width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;10,561 </TD>
    <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">$</TD>
    <TD
      width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;3,510 </TD>
    <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">$</TD>
    <TD
      width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;48,262 </TD>
  <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Other comprehensive income (loss) </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
  <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Unrealized gain (loss) on
      available-for-sale reclamation deposit </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(1,040</TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>1,859 </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="10%" align=right valign="bottom" bgColor=#e6efff>(419</TD>
  <TD width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Unrealized gain (loss) on available-for-sale
      marketable securities </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">14,263 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(11,295</TD>
    <TD width="2%" align=left valign="bottom">) </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">4,710 </TD>
  <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Reclassification of realized gain
      (loss) on sale of marketable securities </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(188</TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(1,152</TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(1,508</TD>
  <TD width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Tax effect
    </TD>
    <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(1,779</TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">1,570    </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="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(445</TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">)</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff><B>Other comprehensive income (loss)</B> </TD>
    <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">$</TD>
    <TD width="10%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;11,256 </TD>
    <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">$</TD>
    <TD width="10%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;(9,018</TD>
    <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">) </TD>
    <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">$</TD>
    <TD width="10%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;2,338 </TD>
  <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
  <TD width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff><B>Total comprehensive income (loss)</B> </TD>
    <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">$</TD>
    <TD width="10%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;21,817 </TD>
    <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">$</TD>
    <TD width="10%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;(5,508</TD>
    <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">) </TD>
    <TD width="1%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">$</TD>
    <TD width="10%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;50,600 </TD>
  <TD width="2%" align=left valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
  <TD width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Earnings per share</B> </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
  <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Basic </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>$</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>&nbsp;0.06 </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>$</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>&nbsp;0.02 </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>$</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>&nbsp;0.37 </TD>
  <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Diluted </TD>
    <TD width="1%" align=left valign="bottom">$</TD>
    <TD width="10%" align=right valign="bottom">&nbsp;0.06 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">$</TD>
    <TD width="10%" align=right valign="bottom">&nbsp;0.02 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">$</TD>
    <TD width="10%" align=right valign="bottom">&nbsp;0.36 </TD>
  <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left colSpan=3><B>Weighted average number of common shares
      outstanding (expressed in thousands)</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
  <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Basic </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>173,170 </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="10%" align=right valign="bottom" bgColor=#e6efff>142,062 </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="10%" align=right valign="bottom" bgColor=#e6efff>129,218 </TD>
  <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp;Diluted </TD>
    <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
      width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">180,835 </TD>
    <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
      width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">156,928 </TD>
    <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
      width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">142,278 </TD>
  <TD
    width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE>
<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>
<!--$$/page=--><A name=page_4></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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Consolidated Statements of Shareholders' Equity</B>
  </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in thousands of Canadian Dollars, except for per
      share and share amounts) </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" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=right width="19%"
      colSpan=4>Year ended </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=right width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=right width="19%"
      colSpan=4>Fifteen Months Ended </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=right width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=right width="19%"
      colSpan=4>Year ended </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>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="19%"
    colSpan=4 align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">December 31, 2009 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="1%"
    >&nbsp;</TD>
    <TD width="19%"
    colSpan=4 align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">December 31, 2008 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="1%"
    >&nbsp;</TD>
    <TD width="19%"
    colSpan=4 align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">September 30, 2007 </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="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Common shares</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B><U>Number of shares</U></B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B><U>Number of shares</U></B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B><U>Number of shares</U></B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Balance at beginning of the year </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>153,187,116 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>285,690 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>130,580,538 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&nbsp;205,040 </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="8%" bgColor=#e6efff>128,388,175 </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="8%" bgColor=#e6efff>197,592 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Share purchase options at $1.00 per share </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">893,750 </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="8%">894 </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="8%">&#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="8%">&#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="8%">&#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="8%">&#150; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left 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="8%" bgColor=#e6efff>66,333 </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="8%" bgColor=#e6efff>76 </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="8%" bgColor=#e6efff>&#150; </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="8%" bgColor=#e6efff>&#150; </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="8%" bgColor=#e6efff>409,833 </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="8%" bgColor=#e6efff>471 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Share purchase options at $1.29 per share </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&#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="8%">&#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="8%">&#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="8%">&#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="8%">75,000 </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="8%">97 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Share purchase options at $1.71 per share
    </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>33,666 </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="8%" bgColor=#e6efff>58 </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="8%" bgColor=#e6efff>&#150; </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="8%" bgColor=#e6efff>&#150; </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="8%" bgColor=#e6efff>&#150; </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="8%" bgColor=#e6efff>&#150; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Share purchase options at $1.90 per share </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">7,000 </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="8%">13 </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="8%">&#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="8%">&#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="8%">&#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="8%">&#150; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Share purchase options at $2.07 per share
    </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>50,000 </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="8%" bgColor=#e6efff>103 </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="8%" bgColor=#e6efff>30,000 </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="8%" bgColor=#e6efff>62 </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="8%" bgColor=#e6efff>233,300 </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="8%" bgColor=#e6efff>483 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Share purchase options at $2.18 per share </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">100,000 </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="8%">218 </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="8%">145,500 </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="8%">317 </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="8%">244,000 </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="8%">532 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Share purchase options at $2.63 per share
    </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&#150; </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="8%" bgColor=#e6efff>&#150; </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="8%" bgColor=#e6efff>&#150; </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="8%" bgColor=#e6efff>&#150; </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="8%" bgColor=#e6efff>20,000 </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="8%" bgColor=#e6efff>53 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Share purchase options at $2.68 per share </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&#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="8%">&#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="8%">7,500 </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="8%">20 </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="8%">27,500 </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="8%">74 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Share purchase options at $3.07 per share
    </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>11,000 </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="8%" bgColor=#e6efff>34 </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="8%" bgColor=#e6efff>78,500 </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="8%" bgColor=#e6efff>241 </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="8%" bgColor=#e6efff>48,000 </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="8%" bgColor=#e6efff>147 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Share purchase options at $4.09 per share </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&#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="8%">&#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="8%">3,600 </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="8%">15 </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="8%">&#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="8%">&#150; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Share purchase options at $4.50 per share
    </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&#150; </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="8%" bgColor=#e6efff>&#150; </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="8%" bgColor=#e6efff>5,000 </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="8%" bgColor=#e6efff>23 </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="8%" bgColor=#e6efff>&#150; </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="8%" bgColor=#e6efff>&#150; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>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="8%">&#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="8%">2,108 </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="8%">&#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="8%">514 </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="8%">&#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="8%">1,786 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Shares issued for the purchase of royalty
      interest </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&#150; </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="8%" bgColor=#e6efff>&#150; </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="8%" bgColor=#e6efff>1,000,000 </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="8%" bgColor=#e6efff>5,220 </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="8%" bgColor=#e6efff>1,134,730 </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="8%" bgColor=#e6efff>3,805 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Shares issued for debt conversion (note 14(b)) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&#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="8%">&#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="8%">2,612,971 </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="8%">21,318 </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="8%">&#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="8%">&#150; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Equity financings at $5.20 per share, net
      of issue costs (note 18(b)) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>&#150; </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="8%" bgColor=#e6efff>&#150; </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="8%" bgColor=#e6efff>9,637,792 </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="8%" bgColor=#e6efff>46,945 </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="8%" bgColor=#e6efff>&#150; </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="8%" bgColor=#e6efff>&#150; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Equity financings at $0.70 per share, net of issue costs
      (note 18(b)) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%">&#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="8%">&#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="8%">9,085,715 </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="8%">5,975 </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="8%">&#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="8%">&#150; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Equity financings at $1.45 per share, net
      of issue costs (note 18(b)) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="8%" bgColor=#e6efff>19,490,084 </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="8%" bgColor=#e6efff>26,817 </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="8%" bgColor=#e6efff>&#150; </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="8%" bgColor=#e6efff>&#150; </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="8%" bgColor=#e6efff>&#150; </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="8%" bgColor=#e6efff>&#150; </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>Warrants exercised
      (note 18(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="8%">9,085,715 </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="8%">7,723 </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="8%">&#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="8%">&#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="8%">&#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="8%">&#150; </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>Balance at end of the year </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="8%" bgColor=#e6efff>182,924,664 </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="8%" bgColor=#e6efff>323,734 </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="8%" bgColor=#e6efff>153,187,116 </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="8%" bgColor=#e6efff>285,690 </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="8%" bgColor=#e6efff>130,580,538 </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="8%" bgColor=#e6efff>205,040 </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="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&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="8%" 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="8%" 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="8%" 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="8%" 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="8%" 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="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Balance at beginning of the year </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="8%">&nbsp; </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="8%">3,832 </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="8%">&nbsp; </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="8%">13,655 </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="8%">&nbsp; </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="8%">13,655 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Repurchase of convertible bond (note 14(a))
    </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="8%" 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=right width="8%" bgColor=#e6efff>(3,832</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=left width="8%" 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=right width="8%" bgColor=#e6efff>&#150; </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="8%" 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=right width="8%" bgColor=#e6efff>&#150; </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>Convertible
      debenture conversion adjustment (note 14(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=left
    width="8%">&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=right
    width="8%">&#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=left
    width="8%">&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=right
    width="8%">(9,823</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=left
    width="8%">&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=right
    width="8%">&#150; </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>Balance at end of the year </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="8%" 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="8%" 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=left
    width="8%" 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="8%" bgColor=#e6efff>3,832 </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="8%" 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="8%" bgColor=#e6efff>13,655 </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="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Tracking preferred shares</B> </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="8%" 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="8%" 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="8%" 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="8%" 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="8%" 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="8%" 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>Balance at
      beginning and end of the year </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="8%">&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=right
    width="8%">26,642 </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="8%">&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=right
    width="8%">26,642 </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="8%">&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=right
    width="8%">26,642 </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="8%" 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="8%" 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="8%" 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="8%" 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="8%" 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="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Contributed surplus</B> </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="8%">&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="8%">&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="8%">&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="8%">&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="8%">&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="8%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Balance at beginning of the year </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="8%" 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=right width="8%" bgColor=#e6efff>14,561 </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="8%" 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=right width="8%" bgColor=#e6efff>8,633 </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="8%" 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=right width="8%" bgColor=#e6efff>3,648 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Stock-based compensation (note 18(c)) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="8%">&nbsp; </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="8%">5,696 </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="8%">&nbsp; </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="8%">6,442 </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="8%">&nbsp; </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="8%">6,771 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Repurchase of convertible bond (note 14(a))
    </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="8%" 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=right width="8%" bgColor=#e6efff>2,169 </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="8%" 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=right width="8%" bgColor=#e6efff>&#150; </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="8%" 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=right width="8%" bgColor=#e6efff>&#150; </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>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%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="8%">&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=right
    width="8%">(2,108</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=left
    width="8%">&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=right
    width="8%">(514</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=left
    width="8%">&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=right
    width="8%">(1,786</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>Balance at end of the year </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="8%" 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="8%" bgColor=#e6efff>20,318 </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="8%" 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="8%" bgColor=#e6efff>14,561 </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="8%" 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="8%" bgColor=#e6efff>8,633 </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="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Accumulated other comprehensive income
      (loss)</B> </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="8%" 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="8%" 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="8%" 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="8%" 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="8%" 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="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Balance at beginning of the year </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="8%">&nbsp; </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="8%">(6,680</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="8%">&nbsp; </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="8%">2,338 </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="8%">&nbsp; </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="8%">&#150; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Unrealized gain (loss) on reclamation
      deposits </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="8%" 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=right width="8%" bgColor=#e6efff>(1,040</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=left width="8%" 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=right width="8%" bgColor=#e6efff>1,859 </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="8%" 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=right width="8%" bgColor=#e6efff>(419</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
  </TD></TR>
  <TR vAlign=top>
    <TD align=left>Unrealized gain (loss) on available-for-sale marketable
      securities </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="8%">&nbsp; </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="8%">14,263 </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="8%">&nbsp; </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="8%">(11,295</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="8%">&nbsp; </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="8%">4,710 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Reclassification of realized loss on sale
      of marketable securities </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="8%" 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=right width="8%" bgColor=#e6efff>(188</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=left width="8%" 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=right width="8%" bgColor=#e6efff>(1,152</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=left width="8%" 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=right width="8%" bgColor=#e6efff>(1,508</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
  </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>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=left
    width="8%">&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=right
    width="8%">(1,779</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=left
    width="8%">&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=right
    width="8%">1,570 </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="8%">&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=right
    width="8%">(445</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>Balance at end of the year </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="8%" 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="8%" bgColor=#e6efff>4,576 </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="8%" 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="8%" bgColor=#e6efff>(6,680</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=left
    width="8%" 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="8%" bgColor=#e6efff>2,338 </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="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Deficit</B> </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="8%" 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="8%" 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="8%" 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="8%" 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="8%" 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="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Balance at beginning of the year </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="8%">&nbsp; </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="8%">(89,138</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="8%">&nbsp; </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="8%">(92,648</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="8%">&nbsp; </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="8%">(140,910</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Net earnings for the year </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="8%" 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="8%" bgColor=#e6efff>10,561 </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="8%" 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="8%" bgColor=#e6efff>3,510 </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="8%" 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="8%" bgColor=#e6efff>48,262 </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>Balance at end of
      the year </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="8%">&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=right
    width="8%">(78,577</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=left
    width="8%">&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=right
    width="8%">(89,138</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=left
    width="8%">&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=right
    width="8%">(92,648</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" 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="8%" 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="8%" 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="8%" 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="8%" 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="8%" 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="8%" 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><B>TOTAL
      SHAREHOLDERS' EQUITY</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="8%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    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="8%">296,693 </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%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="8%">&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%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="8%">&nbsp;234,907 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="8%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="8%">163,660 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR></TABLE>
<P align=justify><I>See accompanying notes to consolidated financial
statements.</I></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 vAlign=top>
    <TD align=left><B>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Consolidated Statements of Cash Flows</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Expressed in thousands of Canadian Dollars)
</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 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="10%">Year
      Ended </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=right width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=right width="1%"
    >&nbsp;</TD>
    <TD width="10%" align=right nowrap style="BORDER-TOP: #000000 2px solid">Fifteen
      Months Ended </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=right width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=right width="10%">Year
      Ended </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>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">December 31, 2009 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">December 31, 2008 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="1%"
    >&nbsp;</TD>
    <TD
      width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">September 30, 2007 </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="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Operating activities</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Net earnings for the year </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;10,561 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;3,510 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;48,262 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Items not involving cash </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Reclamation obligation
      change in estimate </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(6,917</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(4,570</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Accretion of reclamation obligation </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">968 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">1,451 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">1,777 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Depreciation, depletion
      and amortization </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>8,150 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>7,363 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>3,155 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Interest accretion on convertible debt
    </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">1,260 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">2,938 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">2,922 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Interest accretion on
      long-term credit facility </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>512 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Stock-based compensation </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">5,696 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">6,442 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">6,771 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Future income taxes </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>25 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(3,446</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>35,645 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Foreign exchange loss (gain) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(8,839</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">6,334 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(3,307</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Gain on sale of
      marketable securities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(188</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(1,034</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(1,508</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Change in fair value of financial
      instruments </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">886 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">1,925 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Gain on convertible
      debt repurchase (note 14) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(1,630</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Unrealized loss on derivative
      instruments (note 19) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">15,775 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Site closure and
      reclamation expenditures (note 15) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(1,590</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(183</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(167</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Changes in non-cash operating working capital </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Accounts receivable </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(7,899</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>7,415 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(2,679</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Amounts due to a related party </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(1,759</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">2,579 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(833</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Inventory </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(1,452</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(2,282</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>6,160 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Prepaid expenses </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(1,784</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">741 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">152 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Accrued interest income
      on promissory note </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(1,029</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(2,632</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(1,270</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Accounts payable and accrued
      liabilities </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(38,216</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">22,603 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">8,499 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Deferred revenue </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(175</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(219</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(19,759</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Accrued interest expense on royalty
      obligation </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(2,039</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(1,060</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(1,371</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Income taxes payable
</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(6,261</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>2,358 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>6,175 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp;
      &nbsp;Liability under derivative instruments (note 19) </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%">3,160
    </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%">&#150; </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%">&#150; </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>Cash provided by (used for) operating 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="10%"
    bgColor=#e6efff>(26,754</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </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="10%"
    bgColor=#e6efff>46,847 </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="10%"
    bgColor=#e6efff>85,979 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Investing activities</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Purchase of property, plant and equipment </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(17,019</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(134,186</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(127,032</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Purchase of mineral property interest
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(1,800</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Reclamation deposits </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(45</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(109</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(20</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Funds released from reclamation
      deposits </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>3,900 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>5,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Accrued interest income on reclamation deposits </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(1,919</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(2,032</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(1,791</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Funds released from (deposited into)
      restricted cash </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1,247 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(4,400</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Investment in marketable securities </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(4,421</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(254</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(21,564</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Proceeds from sale of marketable
      securities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>9,966 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>3,360 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>16,999 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Advance
      payments for equipment </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%">&#150; </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%">(6,381</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </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%">&#150; </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>Cash used for investing 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="10%"
    bgColor=#e6efff>(8,291</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </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="10%"
    bgColor=#e6efff>(134,602</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </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="10%"
    bgColor=#e6efff>(139,608</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Financing activities</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Proceeds (repayment) of bank indebtedness </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(5,737</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">5,737 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Capital lease payments </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(3,199</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(1,061</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Common shares issued for cash, net of issue costs </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">35,937 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">53,599 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">1,857 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Principal repayment of loan
      obligations </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(345</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Proceeds from loan obligations (note 16(b)) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">9,054 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Proceeds from royalty obligation
      (note 20(b)) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>6,511 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Re-purchase of convertible debt (note 14) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(33,678</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(3,569</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp;Proceeds from long term credit facility (note 17)
</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="10%"
    bgColor=#e6efff>56,997 </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="10%"
    bgColor=#e6efff>&#150; </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="10%"
    bgColor=#e6efff>&#150; </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 1px solid" align=left>Cash provided by
      financing activities </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%">65,540 </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%">54,706 </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%">1,857
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Increase (decrease) in cash and equivalents</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">30,495 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(33,049</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(51,772</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Cash and equivalents, beginning of year </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="10%"
    bgColor=#e6efff>4,587 </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="10%"
    bgColor=#e6efff>37,636 </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="10%"
    bgColor=#e6efff>89,408 </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 2px solid" align=left><B>Cash and
      equivalents, end of year</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%"><B>&nbsp;35,082</B> </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%"
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%"><B>&nbsp;4,587</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%"><B>&nbsp;37,636</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<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>
<!--$$/page=--><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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, 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 colSpan=2>
      <P align=justify><B>NATURE OF OPERATIONS</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>Taseko Mines Limited ("Taseko" or the "Company") is a
      public company incorporated under the laws of the Province of British
      Columbia. At December 31, 2009, the Company's principal business
      activities related to the operations of the Gibraltar Copper Mine, and
      exploration on the surrounding properties as well as exploration on the
      Company&#146;s 100% owned Prosperity Gold- Copper Property, Harmony Gold
      Property and Aley Niobium Property. The Gibraltar Copper Mines and the
      Prosperity Property are located in south central British Columbia, Canada,
      near the City of Williams Lake. The Harmony Gold Property is located on
      Graham Island, Queen Charlotte Islands (also known as Haida Gwaii),
      British Columbia. The Aley Niobium Property is located in north eastern
      British Columbia, near the city of Mackenzie.</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>2.</B> </TD>
    <TD colSpan=2>
      <P align=justify><B>BASIS OF PRESENTATION</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>In September 2008, the Company&#146;s Board of Directors
      approved a resolution to change the Company&#146;s year end from September 30
      to December 31. Accordingly, these financial statements are prepared as at
      December 31, 2009 and December 31, 2008, and 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 width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>These financial statements have been prepared in
      accordance with Canadian generally accepted accounting principles. These
      consolidated financial statements include the accounts of the Company and
      all of its subsidiaries. All material intercompany accounts and
      transactions have been eliminated.</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>3.</B> </TD>
    <TD colSpan=2>
      <P align=justify><B>SIGNIFICANT ACCOUNTING POLICIES</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 vAlign=top colSpan=2><I>(a)</I> <I>Cash and equivalents</I></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>Cash and equivalents consist of cash and highly liquid
      investments, having maturity dates of three months or less from the date
      of acquisition, that are readily convertible to known amounts of cash. At
      December 31, 2009, of the $35,082 cash and equivalents held by the
      Company, $30,719 (US$29,228) were held in United States dollar denominated
      cash and equivalents (December 31, 2008 &#150; $2,169 (US$1,756)). Cash and
      equivalents excludes cash subject to restrictions (note 11).</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top colSpan=2><I>(b)</I> <I>Revenue recognition</I></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>Revenue from the sales of metal in concentrate is
      recognized when persuasive evidence of a sales agreement exists, the title
      and risk of ownership is transferred to the customer, collection is
      reasonably assured, and the price is reasonably determinable. Revenue from
      the sales of metal may be subject to adjustment upon final settlement of
      shipment weights, assays and estimated metal prices. Adjustments to
      revenue for metal prices are recorded monthly and other adjustments are
      recorded on final settlement. Cash received in advance of meeting these
      revenue recognition criteria is recorded as deferred
  revenue.</P></TD></TR></TABLE><BR>
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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 vAlign=top>
    <TD align=left><B>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Under the Company&#146;s concentrate sales
contracts, final copper and molybdenum prices are set based on a specified
future quotational period and the average market metal price in that period.
Typically, the quotational periods for copper are either one or four months
after the date of arrival at the port of discharge and for molybdenum is three
months after the month of shipment. Revenues are recorded under these contracts
at the time title passes to the buyer and are based on the forward price for the
expected settlement period. The contracts, in general, provide for a provisional
payment based upon provisional assays and quoted metal prices. The price
adjustment features in the Company&#146;s receivables are treated as embedded
derivatives for accounting purposes and as such, are marked-to-market through
earnings from the date of sale through the date of final pricing.</P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(c) Inventory </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>Concentrate inventory consists of metal
in concentrate, ore-in-process and stockpiled ore. Concentrate inventory is
valued based on the lower of average production cost and net realizable value.
Production costs include the cost of raw materials, direct labour, mine-site
overhead expenses and depreciation.</P>
<P style="MARGIN-LEFT: 5%" align=justify>The costs of removing waste material in
the process of mining ore, referred to as "stripping costs", are considered
costs of the extracted minerals and recognized as a component of concentrate
inventory to be recognized in cost of sales in the same period as the revenue
from the sale of the concentrate inventory. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Materials and supplies inventory is
valued at the lower of average cost and net realizable value. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Copper cathode
  inventory consists of finished goods in the form of copper cathode sheets.
  Copper cathode inventory is valued at the lower of average production cost and
  net realizable value. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Previous write-downs to net realizable value are reversed
  when there is a subsequent increase in the value of inventories. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(d) Financial Instruments </I></P>
<P style="MARGIN-LEFT: 5%" 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 operations or accumulated other comprehensive income, depending on
the classification of the related instruments. </P>
<P style="MARGIN-LEFT: 5%" 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. Initial and
subsequent measurement and recognition of changes in the value of financial
instruments depends on their initial classification: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P style="MARGIN-LEFT:5%">Held-to-maturity investments, loans and
  receivables, and other financial liabilities are initially measured at fair
  value and subsequently measured at amortized cost. Amortization of premiums or discounts and
  losses due to impairment are included in current period net earnings (loss).</P></LI>

</UL>
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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 vAlign=top>
    <TD align=left><B>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<UL style="TEXT-ALIGN: justify"><LI><P style="MARGIN-LEFT:5%">Available-for-sale financial assets are measured at
  fair value. Changes in fair value are included in other comprehensive income
  (loss) until the gain or loss is recognized in net earnings (loss) or if an
  impairment is determined to be other than temporary. </P>

  <LI><P style="MARGIN-LEFT:5%">Held for trading financial instruments are measured
  at fair value. All changes in fair value are included in net earnings (loss)
  in the period in which they arise. </P>

  <LI><P style="MARGIN-LEFT:5%">All derivative financial instruments are measured
  at fair value, even when they are part of a hedging relationship. Changes in
  fair value are included in net earnings (loss) in the period in which they
  arise, except for cash flow hedge transactions which qualify for hedge
  accounting treatment in which case gains and losses are recognized in other
  comprehensive income (loss). </P>
</LI></UL>
<P style="MARGIN-LEFT: 5%" align=justify>The Company had classified its
financial instruments as follows:</P>
<DIV align=right>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="85%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"
    align=left><B>Financial Instrument</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"
    align=left width="33%"><B>Classification</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"
    align=left width="33%"><B>Measurement</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Cash and equivalents/ bank indebtedness </TD>
    <TD align=left width="33%" bgColor=#e6efff>Held for Trading </TD>
    <TD align=left width="33%" bgColor=#e6efff>Fair Value </TD></TR>
  <TR vAlign=top>
    <TD align=left>Restricted cash </TD>
    <TD align=left width="33%">Held for Trading </TD>
    <TD align=left width="33%">Fair Value </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Marketable securities and investments (i)
    </TD>
    <TD align=left width="33%" bgColor=#e6efff>Available for Sale </TD>
    <TD align=left width="33%" bgColor=#e6efff>Fair Value </TD></TR>
  <TR vAlign=top>
    <TD align=left>Accounts receivable </TD>
    <TD align=left width="33%">Loans and Receivables </TD>
    <TD align=left width="33%">Amortized cost </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Advances to a related party </TD>
    <TD align=left width="33%" bgColor=#e6efff>Loans and Receivables </TD>
    <TD align=left width="33%" bgColor=#e6efff>Amortized cost </TD></TR>
  <TR vAlign=top>
    <TD align=left>Reclamation deposits (ii) </TD>
    <TD align=left width="33%">Available for Sale </TD>
    <TD align=left width="33%">Fair Value </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Promissory note (iii) </TD>
    <TD align=left width="33%" bgColor=#e6efff>Loan and Receivable </TD>
    <TD align=left width="33%" bgColor=#e6efff>Amortized cost </TD></TR>
  <TR vAlign=top>
    <TD align=left>Accounts payable and accrued liabilities </TD>
    <TD align=left width="33%">Other Financial Liability </TD>
    <TD align=left width="33%">Amortized cost </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Advances from a related party </TD>
    <TD align=left width="33%" bgColor=#e6efff>Other Financial Liability </TD>
    <TD align=left width="33%" bgColor=#e6efff>Amortized cost </TD></TR>
  <TR vAlign=top>
    <TD align=left>Convertible debt (iv) </TD>
    <TD align=left width="33%">Other Financial Liability </TD>
    <TD align=left width="33%">Amortized cost </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Equipment loan obligations (note 16(b)) </TD>
    <TD align=left width="33%" bgColor=#e6efff>Other Financial Liability </TD>
    <TD align=left width="33%" bgColor=#e6efff>Amortized cost </TD></TR>
  <TR vAlign=top>
    <TD align=left>Credit facility (note 17) </TD>
    <TD align=left width="33%">Other Financial Liability </TD>
    <TD align=left width="33%">Amortized cost </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Gibraltar Royalty Limited Partnership
      <BR>obligation (note 20(b)) </TD>
    <TD align=left width="33%" bgColor=#e6efff><BR>Other Financial Liability
    </TD>
    <TD align=left width="33%" bgColor=#e6efff><BR>Amortized cost </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Derivative
      liability (v) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="33%">Held
      for Trading </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="33%">Fair
      Value </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 width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">i. ) </TD>
    <TD>
      <P align=justify>Marketable securities and investments are classified as
      available-for-sale securities and are measured at fair market value with
      unrealized gains or losses recorded in other comprehensive income (loss).
      At the time securities are sold or otherwise disposed of, gains or losses
      are included in net earnings (loss).</P></TD></TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD vAlign=top width="5%">ii. ) </TD>
    <TD>
      <P align=justify>Reclamation deposits invested in government bonds and
      treasury bills are classified as available-for-sale securities and are
      measured at fair market value, with unrealized gains or losses recorded in
      other comprehensive income (loss). At the time securities are sold or
      otherwise disposed of, gains or losses are included in net earnings
    (loss).</P></TD></TR></TABLE>
<BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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 vAlign=top>
    <TD align=left><B>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, 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="10%">&nbsp;</TD>
    <TD vAlign=top width="5%">iii. ) </TD>
    <TD>
      <P align=justify>The Promissory note relating to the Red Mile Resources
      No. 2 Limited Partnership Agreement (&#147;Red Mile&#148;) is classified as a loan
      and receivable.</P></TD></TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD vAlign=top width="5%">iv. ) </TD>
    <TD>
      <P align=justify>The debt components of the Convertible bonds and
      debenture are classified as other financial liabilities and are measured
      at amortized cost.</P></TD></TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD vAlign=top width="5%">v. ) </TD>
    <TD>
      <P align=justify>Derivative instruments are recorded at fair value.
      Changes in the fair values of derivative instruments are recognized in net
      earnings (loss) for the period. The Company may enter into derivative
      instruments to manage exposure to fluctuations in metal prices, primarily
      copper. These derivative instruments are a part the Company&#146;s risk
      management strategy. The Company has elected not to apply hedge accounting
      to these instruments. Therefore, the changes in fair value are recorded in
      earnings.</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The Company also discloses quantitative
and qualitative information that enable users to evaluate the significance of
financial instruments on the Company&#146;s financial performance, and the nature and
extent of risks arising from financial instruments to which the Company is
exposed during the year and at the balance sheet date. In addition, the Company
discloses management&#146;s objectives, policies and procedures for managing these
risks. These disclosures are presented in note 6. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(e) Plant and equipment </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>Plant and equipment are stated at cost
less accumulated amortization. Mining and milling assets are amortized using the
units of production method based on tons mined and milled, respectively, divided
by the estimated tonnage to be recovered in the mine plan. During 2008, the
Company extended the life of its Gibraltar mine. Consequently, the useful life
over which the Company&#146;s mining and milling assets are depreciated has been
extended to reflect their additional use from an extended mine life.
Amortization for all other assets is calculated using the declining balance
method at rates ranging from 10% to 50% per annum. Repairs and maintenance
expenditures are charged to operations as incurred. Major improvements and
replacements which extend the useful life of the asset are capitalized as
incurred. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The costs of removing overburden
material to access mineral reserve deposits, referred to as &#147;stripping costs&#148;,
are accounted for as variable production costs to be included in the cost of
inventory produced, unless the overburden removal activity can be shown to be a
betterment of the mineral property, in which case these costs are capitalized.
Betterment occurs when the overburden removal activity provides access to
additional sources of mineral deposit reserves that will be produced in future
periods which would not have otherwise been accessible in the absence of the
pre-stripping activity. These deferred stripping costs are amortized using the
units of production basis to cost of sales over the life of the mineral deposit
reserves. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(f) Mineral property interests
</I></P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company capitalizes mineral
property acquisition costs on a property-by-property basis. Exploration
expenditures and option payments incurred prior to the determination of the
feasibility of mining operations are charged to operations as incurred.
Exploration expenditures incurred subsequent to the mining
operations which do not increase production or extend the life of operations are
expensed in the period incurred. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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 vAlign=top>
    <TD align=left><B>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The Company capitalizes development
expenditures which have (a) a probable future benefit which the Company can
obtain, (b) result from a past transaction, and (c) occur on property controlled
by the Company on mineralized ore bodies that have, or are determined to have as
a result of these costs, economically mineable mineral reserves. Acquisition
costs and development expenditures are amortized over the estimated life of the
property, or written off to operations if the property is abandoned, allowed to
lapse, or if there is little prospect of further work being carried out by the
Company. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Mineral property acquisition costs
include the cash consideration and the fair market value of common shares issued
for mineral property interests pursuant to the terms of the relevant agreement.
Payments relating to a property acquired under an option or joint venture
agreement, where such payments are made at the sole discretion of the Company,
are recorded in the accounts upon payment. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Costs related to feasibility work and
the development of processing technology are expensed as incurred. Costs
incurred subsequent to the determination of the feasibility of the processing
technology will be capitalized and amortized over the life of the related plant.
</P>
<P style="MARGIN-LEFT: 5%" align=justify>Administrative expenditures are
expensed as incurred. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The amount presented for mineral
property interests represents costs incurred to date and accumulated acquisition
costs, less write-downs and accumulated amortization, and does not necessarily
reflect present or future values. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(g) Site closure and reclamation
costs </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company recognizes any statutory,
contractual or other legal obligation related to the retirement of tangible
long-lived assets when such obligations are incurred, if a reasonable estimate
of fair value can be made. These obligations are measured initially at fair
value and the resulting costs are capitalized to the carrying value of the
related asset. In subsequent periods, the liability is adjusted for the
accretion of the discount and any changes in the amount or timing of the
underlying future cash flows. The asset retirement cost is amortized to
operations over the life of the asset. Changes resulting from revisions to the
timing or the amount of the original estimate of undiscounted cash flows are
recognized as an increase or a decrease in the carrying amount of the liability,
and the related asset retirement cost is capitalized as part of the carrying
amount of the related long-lived asset. In the event the required decrease in
the asset retirement cost is in excess of the carrying value, the excess amount
is recorded as a change in estimate in the statement of operations. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(h) Impairment of long-lived assets
</I></P>
<P style="MARGIN-LEFT: 5%" align=justify>Long-lived assets, including mineral
property interests, plant and equipment, are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount of an asset
may not be recoverable. Recoverability of assets to be held and used is measured
by a comparison of the carrying amount of an
asset to estimated undiscounted future cash flows expected to be generated by
the asset. If the carrying amount of an asset exceeds its estimated future cash
flows, an impairment charge is recognized in the amount by which the carrying
amount of the asset exceeds the fair value of the asset. Assets to be disposed
of are separately presented in the balance sheet and reported at the lower of
the carrying amount and the fair value less costs to sell, and are no longer
amortized. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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 vAlign=top>
    <TD align=left><B>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><I>(i) Share capital </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company records proceeds from share
issuances net of issue costs. Shares issued for consideration other than cash
are valued at the quoted market price on the date of issue.</P>
<P style="MARGIN-LEFT: 5%" align=justify>The proceeds, net of issue costs, from
common shares issued pursuant to flow-through share financing agreements are
credited to share capital and the tax benefits of these exploration expenditures
are transferred to the purchaser of the shares. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(j) Stock-based compensation
</I></P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company has a share option plan
which is described in note 18(c). The Company records all stock-based payments
using the fair value method. Under the fair value method, stock-based payments
are measured at the fair value of the consideration received or the fair value
of the equity instruments issued or liabilities incurred, whichever is more
reliably measurable, and are charged to operations over the vesting period. The
offset is credited to contributed surplus. Consideration received on the
exercise of stock options is recorded as share capital and the related
contributed surplus is transferred to share capital.</P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(k) Income taxes </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company uses the asset and
liability method of accounting for income taxes. Under this method, future
income tax assets and liabilities are computed based on differences between the
carrying amounts of assets and liabilities on the balance sheet and their
corresponding tax values, generally using the substantively enacted or enacted
income tax rates expected to apply to taxable income in the years in which those
temporary differences are expected to be recovered or settled. Future income tax
assets also result from unused loss carry forwards, resource-related pools, and
other deductions. Future tax assets are recognized to the extent that they are
considered more likely than not to be realized. The valuation of future income
tax assets is adjusted, if necessary, by the use of a valuation allowance to
reflect the estimated realizable amount. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(l) Functional currency and foreign
currency translations </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company&#146;s functional currency is
the Canadian dollar as the Canadian dollar is the currency of the primary
economic environment in which the Company operates. While the Company receives
its metal sales revenues in United States dollars, the majority of the Company&#146;s
supplies, labour, and services are denominated in Canadian dollars. All of the
business operations of the Company are located in Canada. The
majority of the Company&#146;s financings are in Canadian dollars. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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 vAlign=top>
    <TD align=left><B>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Foreign currency monetary assets and
liabilities are translated into Canadian dollars at the exchange rate in effect
at the balance sheet date. Non-monetary assets, liabilities, revenues and
expenses are translated into Canadian dollars at the rate of exchange prevailing
on the respective dates of the transactions. Foreign exchange gains and losses
are included in earnings.</P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(m) Earnings (loss) per common
share</I> </P>
<P style="MARGIN-LEFT: 5%" align=justify>Basic earnings (loss) per common share
is based on the weighted average number of common shares outstanding during the
period.</P>
<P style="MARGIN-LEFT: 5%" align=justify>Diluted earnings (loss) per share is
calculated using the treasury stock method, whereby all &#147;in- the-money&#148; options,
warrants and equivalents are assumed to have been exercised at the beginning of
the period and the proceeds from the exercise are assumed to have been used to
purchase common shares at the average market price during the year. Dilution for
convertible bonds and debentures is calculated on an if-converted basis. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(n) Use of estimates </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>The preparation of financial statements
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
revenue and expenses during the reporting year. Significant areas requiring the
use of management estimates relate to the impairment of mineral property
interests, plant and equipment, reclamation liability, income taxes, valuation
allowances for future income tax assets, rates for depletion, depreciation and
amortization, assumptions used in computing stock-based compensation, fair value
of the option to convert the debenture into common shares and future cash flows
related thereto, receivables from sales of concentrate and valuation of
concentrate inventory, the determination of mineral reserves and mine life and
the estimation of the fair value of derivative liabilities. Actual results could
differ from these estimates. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(o) Segment disclosures </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company operates in a single
reportable operating segment, the exploration, development and operation of
mineral property interests, within the geographic area of British Columbia,
Canada. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(p) Going Concern (Amendments to
Section 1400) </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>Canadian GAAP requires management to
make an assessment of the Company&#146;s ability to continue as a going concern, and
to disclose any material uncertainties related to events or conditions that may
cast significant doubt upon the entity&#146;s ability to continue as a going concern.
In assessing the appropriateness of the going concern assumption, management is
required to consider all available information
about the future which is at least, but not limited to, twelve months from the
balance sheet date and to disclose any material uncertainties related to events
or conditions that may cast significant doubt upon the entity&#146;s ability to
continue as a going concern.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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 vAlign=top>
    <TD align=left><B>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>As at December 31, 2009 and to the date
of these financial statements, the Company determined that there are no material
uncertainties related to events or conditions that may cast significant doubt
upon the Company&#146;s ability to continue as a going concern. </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 ><B>4.</B> </TD>
    <TD align=left width="95%"><B>CHANGES IN ACCOUNTING POLICIES</B>
  </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Effective January 1, 2009, the Company
adopted the following accounting standards issued by the Canadian Institute of
Chartered Accountants (&#147;CICA&#148;). These new standards have been adopted with no
restatement to prior period financial statements. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(a) Section 3064 &#150; Goodwill and
Intangibles </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>The Canadian Accounting Standards Board
("AcSB") issued CICA Handbook Section 3064 which replaces Section 3062,
<I>Goodwill and Other Intangible Assets</I>, and Section 3450, <I>Research and
Development Costs</I>. This new section establishes revised standards for the
recognition, measurement, presentation and disclosure of goodwill and intangible
assets. The Company evaluated the impact of this new standard and concluded that
this standard did not have a significant impact on the Company&#146;s consolidated
financial statements. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(b)</I><I> </I><I>EIC 173 &#150; Credit
Risk and the Fair Value of Financial Assets and Financial Liabilities </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>The AcSB issued EIC-173, <I>Credit Risk
and the Fair Value of Financial Assets and Financial Liabilities</I>, which
requires the Company to consider its own credit risk as well as the credit risk
of its counterparties when determining the fair value of financial assets and
liabilities, including derivative financial instruments. The standard is
effective for the first quarter of fiscal 2009 and is required to be applied
retrospectively without restatement of prior periods. The adoption of this
standard did not have an impact on the valuation of financial assets or
liabilities of the Company. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(c) EIC 174 &#150; Mining Exploration
Costs </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>The AcSB issued EIC-174, <I>Mining
Exploration Costs</I>, which provides guidance to mining enterprises related to
the measurement of exploration costs and the conditions that a mining enterprise
should consider when determining the need to perform an impairment review of
such costs. The accounting treatments provided in EIC-174 have been applied in
the preparation of these financial statements and did not have an impact on the
valuation of the Company&#146;s mineral properties. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(d)</I><I> </I><I>Fair Value
Hierarchy </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>During the year, CICA Handbook Section
3862, <I>Financial Instruments &#150; Disclosures </I>was amended to require enhanced
disclosures about the relative reliability of the data, or &#147;inputs&#148;, that<I>
</I>an entity uses to measure the fair values of its financial instruments. It
requires financial instruments measured at fair value to be classified into one
of three levels in the &#147;fair value hierarchy&#148; according to the relative
reliability of the inputs used to estimate the fair values. These disclosures
are presented in note 6(b). </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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 vAlign=top>
    <TD align=left><B>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><I>(e) Amendments to CICA 3855 </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>The CICA amended Handbook Section 3855,
<I>Financial Instruments &#150; Recognition and Measurement</I> to provide additional
guidance concerning the assessment of embedded derivatives upon reclassification
of a financial asset out of the held-for-trading category, amend the definition
of loans and receivables, amend the categories of financial assets into which
debt instruments are required or permitted to be classified, amend the
impairment guidance for held-to-maturity debt instruments and require reversal
of impairment losses on available-for sale debt instruments when conditions have
changed. These amendments were effective for fiscal years beginning on or after
November 1, 2008. This amendment did not have a material impact on the Company&#146;s
consolidated financial statements. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(f) New Accounting Standards Not Yet
Adopted: </I></P>
<P style="MARGIN-LEFT: 5%" align=justify><I>i</I><I>) International Financial
Reporting Standards ("IFRS")</I><I> </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>The AcSB has announced its decision to
replace Canadian generally accepted accounting principles (&#147;Canadian GAAP&#148;) 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. During
the year, the Company has 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>
<P style="MARGIN-LEFT: 5%" align=justify><I>ii) Business
Combinations/Consolidated Financial Statements/Non-Controlling Interests
</I></P>
<P style="MARGIN-LEFT: 5%" 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, </P>
<P style="MARGIN-LEFT: 5%" align=justify><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. 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>
<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>5.</B> </TD>
    <TD align=left width="95%"><B>INVENTORY</B> </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 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD width="15%"
    align=right nowrap style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2009</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD width="15%"
    align=right nowrap style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2008</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 width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Copper concentrate </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;5,830 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;6,114 </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="15%">1,897 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="15%">1,120 </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="15%" bgColor=#e6efff>178 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff>612 </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="15%">70 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="15%">394 </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="15%"
    bgColor=#e6efff>13,817 </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="15%"
    bgColor=#e6efff>12,100 </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 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="15%">&nbsp;21,792 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="15%">&nbsp;20,340 </TD>
<TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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 vAlign=top>
    <TD align=left><B>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>At December 31, 2009, the Company
recorded an adjustment of $ nil to reduce the concentrate inventory to its net
realizable value (2008 &#150; $1,504). </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 ><B>6.</B> </TD>
    <TD align=left width="95%"><B>CAPITAL MANAGEMENT AND FINANCIAL
      INSTRUMENTS</B> </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><I>(a) Capital Management Objectives
</I></P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company's primary objectives when
managing capital are to safeguard the Company's ability to continue as a going
concern, so that it can continue to provide returns for shareholders, and to
have sufficient liquidity available to fund suitable business opportunities as
they arise. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company considers the components of
shareholders' equity, as well as its cash and equivalents, credit facilities,
and long-term equipment loans as capital. The Company manages its capital
structure and makes adjustments to it in light of changes in economic conditions
and the risk characteristics of the underlying assets. In order to maintain or
adjust the capital structure, the Company may issue equity, sell assets, or
return capital to shareholders as well as issue or repay debt.</P>
<P style="MARGIN-LEFT: 5%" align=justify>As at December 31, 2009, the Company is
subject to externally-imposed capital requirements in the form of covenants
relating to the long-term credit facility as discussed in note 17. As at
December 31, 2009, the Company is in compliance with its financial
covenants.</P>
<P style="MARGIN-LEFT: 5%" align=justify>In order to facilitate the management
of its capital requirements, the Company prepares annual operating budgets that
are approved by the Board of Directors. Management also actively monitors its
financial covenants to ensure compliance. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company&#146;s investment policy is to
invest its cash in highly liquid short-term interest-bearing investments, having
maturity dates of three months or less from the date of acquisition and that are
readily convertible to known amounts of cash. </P>
<P style="MARGIN-LEFT: 5%" align=justify>There were no changes to the Company's
approach to capital management during the year ended December 31, 2009. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(b)</I><I> </I><I>Carrying Amounts
and Fair Values of Financial Instruments </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>The fair value of a financial
instrument is the price at which a party would accept the rights and/or
obligations of the financial instrument from an independent third party. Given
the varying influencing factors, the reported fair values are only indicators of
the prices that may actually be realized for these financial instruments.</P>
<P style="MARGIN-LEFT: 5%" 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>
<UL style="MARGIN-LEFT: 10%""TEXT-ALIGN: justify">
  <LI>Level 1 &#150; Unadjusted quoted prices in active markets for identical assets
  or liabilities;
  <LI>Level 2 &#150; Inputs other than quoted prices that are observable for the
  asset or liability either directly or indirectly; and
  <LI>Level 3 &#150; Inputs that are not based on observable market data. </LI></UL>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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 vAlign=top>
    <TD align=left><B>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The fair values of the tracking
preferred shares are not readily determinable with sufficient reliability due to
the difficulty in obtaining appropriate market information. It is not
practicable to determine the fair value of advances from related parties because
of the related party nature of such amounts and the absence of a secondary
market for such instruments. The fair value of the promissory note is not
readily determinable with sufficient reliability due to the uncertainty around
the maturities and the future cash flows associated with the promissory note.
</P>
<P style="MARGIN-LEFT: 5%" align=justify>Aside from the financial instruments
mentioned above, the following table illustrates the classification of the
Company&#146;s financial instruments recorded at fair value within the fair value
hierarchy as at December 31, 2009: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <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="5%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="8%">&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="1%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="30%" colSpan=7><B>Financial assets at fair value</B>
    </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="1%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="8%">&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px 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="5%">&nbsp;</TD>
    <TD width="8%" align=center nowrap><B>Level 1</B> </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD width="8%" align=center nowrap><B>Level 2</B> </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD width="8%" align=center nowrap><B>Level 3</B> </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD width="8%" align=center nowrap><B>December 31,</B> </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD width="8%" align=center nowrap><B>December 31,</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="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="8%">&nbsp; </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 style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="8%">&nbsp; </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 style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="8%">&nbsp; </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 style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="8%"><B>2009</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 style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="8%"><B>2008</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=right bgColor=#e6efff>Cash and equivalents </TD>
    <TD align=right width="5%" bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;35,082 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;35,082 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;4,587 </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=right>Restricted cash
      (note 11) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">3,153
    </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="8%">- </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="8%">- </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="8%">3,153
    </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="8%">4,400
    </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=right bgColor=#e6efff>Held for trading </TD>
    <TD align=right width="5%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>38,235 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>38,235 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>8,987 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD align=right width="5%">&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=right bgColor=#e6efff>Marketable securities and investments
      (note 7) </TD>
    <TD align=right width="5%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>11,856 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>11,856 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>3,138 </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=right>Reclamation
      deposits </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">29,421
    </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="8%">- </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="8%">- </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="8%">29,421
    </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="8%">32,396
    </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=right
      bgColor=#e6efff>Available for sale financial assets </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="5%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>41,277 </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="8%"
    bgColor=#e6efff>- </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="8%"
    bgColor=#e6efff>- </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="8%"
    bgColor=#e6efff>41,277 </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="8%"
    bgColor=#e6efff>35,534 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD align=right width="5%">&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      bgColor=#e6efff>Total financial assets at fair value </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="5%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%"
    bgColor=#e6efff>&nbsp;79,512 </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%"
    bgColor=#e6efff>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%"
    bgColor=#e6efff>&nbsp;- </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%"
    bgColor=#e6efff>&nbsp;79,512 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%"
    bgColor=#e6efff>&nbsp;44,521 </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: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="5%"  >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="8%">&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="2%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center colSpan=7><B>Financial liabilities at fair
      value</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="2%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="8%">&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px 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=right width="5%"  >&nbsp;</TD>
    <TD width="8%" align=center nowrap><B>Level 1</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD width="8%" align=center nowrap><B>Level 2</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD width="8%" align=center nowrap><B>Level 3</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD width="8%" align=center nowrap><B>December 31,</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD width="8%" align=center nowrap><B>December 31,</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=right width="5%"
     >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="8%">&nbsp; </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 style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="8%">&nbsp; </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 style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="8%">&nbsp; </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 style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="8%"><B>2009</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 style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="8%"><B>2008</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 align=right width="5%"  >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=right bgColor=#e6efff>Bank indebtedness </TD>
    <TD align=right width="5%"  bgColor=#e6efff
>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;5,737 </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=right>Liability under derivative financial instruments <br>
    (note 19) </TD>
    <TD width="5%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid" >&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </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="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">18,935 </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="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </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="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">18,935 </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="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </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" style="BORDER-BOTTOM: #000000 2px solid">&nbsp; </TD>
    <TD width="5%" align=right bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid"
     >$</TD>
    <TD
      width="8%" align=right bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;- </TD>
    <TD width="2%" align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid"
    >$</TD>
    <TD
      width="8%" align=right bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;18,935 </TD>
    <TD width="2%" align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid"
    >$</TD>
    <TD
      width="8%" align=right bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;- </TD>
    <TD width="2%" align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid"
    >$</TD>
    <TD
      width="8%" align=right bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;18,935 </TD>
    <TD width="2%" align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid"
    >$</TD>
    <TD
      width="8%" align=right bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;5,737 </TD>
<TD width="2%" align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid"
    >&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><I>(c) Financial Instrument Risk
Exposure and Risk Management </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company is exposed in varying
degrees of financial instrument related risks. The Board approves and monitors
the risk management processes, including treasury policies, counterparty limits,
controlling and reporting structures. The types of risk exposure and the way in
which such exposure is managed are provided as follows: </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>Credit Risk</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>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></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, 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%"><I>(ii)</I> </TD>
    <TD>
      <P align=justify><I>Liquidity Risk</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>During the year, the Company secured a US$50,000 36-month
      term facility agreement (note 17) as well as a $9,054 long-term equipment
      loan (note 16(b)). The Company is also committed to equipment purchases in
      relation to its expansion activities at the Gibraltar Mine in the amount
      of $23,122 (note 23(a)).</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 following are the principal contractual maturities of
      financial liabilities:</P></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 width="10%"  >&nbsp;</TD>
    <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="8%"><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="8%">&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="8%">&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="8%">&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="8%"><B>Over
      3</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>As at December
      31, 2009</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="8%"><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="8%"><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="8%"><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="8%"><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="8%"><B>years</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Accounts payable and accrued liabilities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;14,821 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;14,821 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" 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="8%" bgColor=#e6efff>&nbsp;&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Amounts due to a related party </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">13 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">13 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Long-term credit facility (note 17) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>52,550 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>21,896 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>26,275 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>4,379 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Long-term equipment loan (note 16(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="8%">10,112 </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="8%">2,701 </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="8%">2,701 </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="8%">4,710 </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="8%">&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid">Total liabilities    </TD>
    <TD width="1%" align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid"
    >$</TD>
    <TD
      width="8%" align=right bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;77,496 </TD>
    <TD width="2%" align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid"
    >$</TD>
    <TD
      width="8%" align=right bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;39,431 </TD>
    <TD width="2%" align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid"
    >$</TD>
    <TD
      width="8%" align=right bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;28,976 </TD>
    <TD width="2%" align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid"
    >$</TD>
    <TD
      width="8%" align=right bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;9,089 </TD>
    <TD width="2%" align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid"
    >$</TD>
    <TD
      width="8%" align=right bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;&#150; </TD>
    <TD width="2%" align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid"
    >&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 width="10%"  >&nbsp;</TD>
    <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="8%"><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="8%">&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="8%">&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="8%">&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="8%"><B>Over
      3</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>As at December
      31, 2008</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="8%"><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="8%"><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="8%"><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="8%"><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="8%"><B>years</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Accounts payable and accrued liabilities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;53,036 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;53,036 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" 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="8%" bgColor=#e6efff>&nbsp;&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Bank overdraft facility </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">5,737 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">5,737 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Amounts due to a related party </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>1,772 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>1,772 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Convertible debt
      (note 14) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">35,219    </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="8%">&#150; </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="8%">&#150; </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="8%">35,219    </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="8%">&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Total 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="8%"
    bgColor=#e6efff>&nbsp;95,764 </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%"
    bgColor=#e6efff>&nbsp;60,545 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%"
    bgColor=#e6efff>&nbsp;&#150; </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%"
    bgColor=#e6efff>&nbsp;35,219 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%"
    bgColor=#e6efff>&nbsp;&#150; </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 width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>(iii)</I> </TD>
    <TD colSpan=2>
      <P align=justify><I>Market Risk</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 width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>The significant market risk exposures to which the
      Company is exposed are commodity price risk, foreign exchange risk, and
      interest rate risk.</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%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"><I>(a)</I> </TD>
    <TD>
      <P align=justify><I>Commodity Price Risk</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 width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>During the year, the Company entered into producer put
      and call option contracts with Credit Suisse AG (&#147;Credit Suisse&#148;) and
      Investec Bank plc (&#147;Investec&#148;) for approximately 50% of its targeted
      copper production to December 2010 from its Gibraltar Mine (note
    19).</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%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>A 10 percent strengthening of copper and molybdenum
      prices during the periods ended December 31, 2009 and December 31, 2008
      would have affected net earnings by the amounts shown below. This analysis
      assumes that all other variables remain
constant.</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="15%"  >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD width="15%"
    align=right nowrap style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2009</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD width="15%"
    align=right nowrap style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2008</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 width="15%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Net Earnings </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="15%"
    bgColor=#e6efff><B>&nbsp;16,180</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff><STRONG>$</STRONG></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="15%"
    bgColor=#e6efff>&nbsp;<STRONG>23,168</STRONG> </TD>
<TD style="BORDER-BOTTOM: #000000 2px solid" 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>
<!--$$/page=--><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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 15%" align=justify>A 10 percent weakening of copper and
molybdenum prices at December 31, 2009 and 2008 would have had the equal and
opposite effect on the amounts shown above, on the basis that all other
variables remain constant. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>(b)</I> </TD>
    <TD>
      <P align=justify><I>Foreign Exchange Risk</I></P></TD></TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company had no foreign currency hedges in place
      during the year.</P></TD></TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company's financial assets held in US dollars (stated
      in Canadian dollars) were:</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="15%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left><B>Carrying value</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%">&nbsp;</TD>
    <TD width="15%"
    align=right nowrap style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2009</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%">&nbsp;</TD>
    <TD width="15%"
    align=right nowrap style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2008</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%">&nbsp;</TD></TR>
  <TR>
    <TD width="15%">&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Cash and equivalents </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;30,719 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;2,169 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD align=left>Restricted cash </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="15%">3,153 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="15%">&#150; </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Accounts receivable </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="15%"
    bgColor=#e6efff>10,802 </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="15%"
    bgColor=#e6efff>&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Total financial
      assets </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="15%">&nbsp;44,674 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="15%">&nbsp;2,169 </TD>
<TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 15%" align=justify>The Company's financial liabilities
held in US dollars (stated in Canadian dollars) were: </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="15%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left><B>Carrying value</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%">&nbsp;</TD>
    <TD width="15%"
    align=right nowrap style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2009</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%">&nbsp;</TD>
    <TD width="15%"
    align=right nowrap style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2008</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%">&nbsp;</TD></TR>
  <TR>
    <TD width="15%">&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="15%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Accounts payable and accrued liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;705 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="15%"
    bgColor=#e6efff>&nbsp;13,227 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD align=left>Convertible debt (note 14) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">&#150; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="15%">35,219 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Derivative liability (note 19 ) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>18,935 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Long-term credit
      facility (note 17) </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%">51,505 </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%">&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Total financial liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;71,145 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="15%"
    bgColor=#e6efff>&nbsp;48,446 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 15%" align=justify>The following exchange rates applied
during the periods ended December 31, 2009 and December 31, 2008: </P>
<DIV align=right>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="85%" border=1>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="40%"
    colSpan=2><B>Annual Average rate</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="40%"
    colSpan=2><B>Year end spot rate</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><BR></TD>
    <TD align=center width="20%"><B>December 31,</B> <BR>
      <B>2009</B> </TD>
    <TD align=center width="20%"><B>December 31,</B> <BR>
      <B>2008</B> </TD>
    <TD align=center width="20%"><B>December 31,</B> <BR>
      <B>2009</B> </TD>
    <TD align=center width="20%"><B>December 31,</B> <BR>
      <B>2008</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>CAD vs. USD </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="20%">1.1420 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="20%">1.0501 </TD>
    <TD align=right width="20%">1.0510 </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="20%">1.2180 </TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 15%" align=justify>All of the Company&#146;s revenues are
denominated in US dollars. A 10 percent weakening of the Canadian dollar against
the US dollar at December 31, 2009 and December 31, 2008 would have affected net
earnings by the amounts shown below. This analysis assumes that all other
variables remain constant. </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="15%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"
    align=left width="1%">&nbsp;</TD>
    <TD width="15%"
    align=right nowrap style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"><B>December 31, 2009</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"
    align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"
    align=left width="1%">&nbsp;</TD>
    <TD width="15%"
    align=right nowrap style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"><STRONG>December</STRONG> <STRONG>31,
      2008</STRONG> </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"
    align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Net Earnings </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="15%"
    bgColor=#e6efff><B>&nbsp;13,276</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff><STRONG>$</STRONG></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="15%"
    bgColor=#e6efff>&nbsp;<STRONG>12,613</STRONG> </TD>
<TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 15%" align=justify>A 10 percent strengthening of the
Canadian dollar against the US dollar at December 31, 2009 and 2008 would have
had the equal and opposite effect on the amounts shown above, on the basis that
all other variables remain constant. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, 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="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>(c)</I> </TD>
    <TD>
      <P align=justify><I>Interest Rate Risk</I></P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The long-term equipment loan (note 16(b)) carries a fixed
      interest rate of 8.60% per annum and as such is not subject to
      fluctuations in interest rate. The long- term credit facility (note 17)
      carries a floating interest of LIBOR plus 5%.</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The exposure of the Company's financial assets to
      interest rate risk as at 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 width="15%"  >&nbsp;</TD>
    <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=left width="10%">&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="10%">&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="10%">Weighted
    </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">Weighted </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap>average period </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">average </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">for which the </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap>effective interest </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap>interest rate is </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">Total
    </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%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">rate
      (percent) </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%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">fixed
      (years) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Financial assets subject to floating
      <BR>&nbsp;&nbsp;&nbsp; interest rates </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><BR>&nbsp;35,082
    </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="10%" bgColor=#e6efff><BR>0.32% </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="10%" bgColor=#e6efff><BR>N/A </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>Financial assets subject to <BR>&nbsp;&nbsp;&nbsp; fixed
      interest rates </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><BR>107,518 </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%"><BR>6.22% </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%"><BR>6.44 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Equity investments </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>11,856 </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="10%" bgColor=#e6efff>N/A </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="10%" bgColor=#e6efff>N/A </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Trade and other
      receivables </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">12,505 </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%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">N/A </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%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">N/A </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Total financial assets </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;166,961 </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=left
    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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="10%" bgColor=#e6efff>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 15%" align=justify>The exposure of the Company's
financial assets to interest rate risk as at December 31, 2008 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 width="15%"  >&nbsp;</TD>
    <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=left width="10%">&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="10%">&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="10%">Weighted
    </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">Weighted </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap>average period </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap>average effective </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">for which the </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">interest rate </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap>interest rate is </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">Total
    </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%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%">(percent) </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%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">fixed
      (years) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Financial assets subject to
      <BR>&nbsp;&nbsp;&nbsp; floating interest rates </TD>
    <TD align=left width="1%"  bgColor=#e6efff><BR>$</TD>
    <TD align=right width="10%" bgColor=#e6efff><BR>8,987 </TD>
    <TD align=right width="2%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="10%" bgColor=#e6efff><BR>4.0% </TD>
    <TD align=right width="2%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="1%"  bgColor=#e6efff><BR></TD>
    <TD align=right width="10%" bgColor=#e6efff><BR>N/A </TD>
    <TD align=left width="2%"  bgColor=#e6efff><BR></TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>Financial assets subject to <BR>&nbsp;&nbsp;&nbsp; fixed
      interest rates </TD>
    <TD align=left width="1%" ><BR></TD>
    <TD align=right width="10%"><BR>109,464 </TD>
    <TD align=right width="2%" ><BR></TD>
    <TD align=right width="1%" ><BR></TD>
    <TD align=right width="10%"><BR>6.3% </TD>
    <TD align=right width="2%" ><BR></TD>
    <TD align=right width="1%" ><BR></TD>
    <TD align=right width="10%"><BR>7.02 </TD>
    <TD align=left width="2%" ><BR></TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Equity investments </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>3,138 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>N/A </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>N/A </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Trade and other
      receivables </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">4,606
    </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%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">N/A
    </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%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">N/A
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Total financial assets </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="10%"
    bgColor=#e6efff>&nbsp;126,195 </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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="10%"
    bgColor=#e6efff>&nbsp; </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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="10%"
    bgColor=#e6efff>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 2px solid" 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>
<!--$$/page=--><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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 15%" align=justify>The exposure of the Company's
financial liabilities to interest rate risk at 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 width="15%"  >&nbsp;</TD>
    <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=left width="10%">&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="10%">&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 width="10%" align=right nowrap style="BORDER-TOP: #000000 2px solid">Weighted    </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="10%">&nbsp;
</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">average </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">Weighted </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">period for </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">Weighted </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">average </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">which the </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">average </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">effective </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap>interest rate </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap>period until </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap>interest rate </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">is fixed </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">maturity </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&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="10%">Total
    </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%">(percent) </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%">(years) </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%">(years) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>Financial liabilities subject
      to <BR>&nbsp;&nbsp; floating interest rates </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><BR>&nbsp;51,505
    </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="10%" bgColor=#e6efff><BR>6.92% </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="10%" bgColor=#e6efff><BR>N/A </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="10%" bgColor=#e6efff><BR>2.09 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD vAlign=bottom align=left>Financial liabilities subject to
      <BR>&nbsp;&nbsp; fixed interest rates </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><BR>15,221 </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%"><BR>7.49% </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%"><BR>2.62 </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="10%"><BR>2.62 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>Derivative liability </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>18,935 </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="10%" bgColor=#e6efff>N/A </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="10%" bgColor=#e6efff>N/A </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="10%" bgColor=#e6efff>N/A </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
      align=left>Other liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">14,834 </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%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">N/A </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%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">N/A </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%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">N/A </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff>Total financial liabilities </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;100,495 </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=left
    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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="10%" bgColor=#e6efff>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 15%" align=justify>The exposure of the Company's
financial liabilities to interest rate risk at December 31, 2008 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 width="15%"  >&nbsp;</TD>
    <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=left width="10%">&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="10%">&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="10%">Weighted
    </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="10%">&nbsp;
</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">average </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">Weighted </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">period for </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">Weighted </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">average </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">which the </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">average </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">effective </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap>interest rate </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap>period until </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap>interest rate </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">is fixed </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">maturity </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&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="10%">Total
    </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%">(percent) </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%">(years) </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%">(years) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD width="15%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Financial liabilities subject to <BR>&nbsp;
      floating interest rates </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>&nbsp;5,737 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff><BR></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>4.0% </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff><BR></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>N/A </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff><BR></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>N/A </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff><BR></TD></TR>
  <TR>
    <TD width="15%" >&nbsp;</TD>
    <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></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Financial liabilities subject to <BR>&nbsp;
      fixed interest rates </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>35,219 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff><BR></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>7.1% </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff><BR></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>2.6 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff><BR></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>2.6 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff><BR></TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Other liabilities
    </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%">54,808 </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%">N/A </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%">N/A </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%">N/A </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Total financial liabilities </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;95,764 </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=left
    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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="10%" bgColor=#e6efff>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 15%" align=justify>A 10 percent increase of the LIBOR
rate for the year ended December 31, 2009 and December 31, 2008 would have
affected net earnings by the amounts shown below. This analysis assumes that all
other variables, in particular foreign exchange rates, remain constant. </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="15%"  >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD width="15%"
    align=right nowrap style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid" ><B>December 31,</B> <B>2009</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"
    align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD width="15%"
    align=right nowrap style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid" ><B>December 31,</B> <B>2008</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"
    align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"
    align=left bgColor=#e6efff>Net earnings (loss) </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"
    align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"
    align=right width="15%" bgColor=#e6efff >&nbsp;<B>(86</B></TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"
    align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"
    align=left width="1%"  bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"
    align=right width="15%" bgColor=#e6efff >&nbsp;<B>142</B> </TD>
<TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"
    align=left width="2%"
bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 15%" align=justify>A 10 percent decrease of the LIBOR
rate for the year ended December 31, 2009 and December 31, 2008 would have had
the equal and opposite effect on net earnings on the basis that all other
variables remain constant. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, 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 align=left ><B>7.</B> </TD>
    <TD align=left width="95%"><B>MARKETABLE SECURITIES AND INVESTMENTS</B>
  </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 style="BORDER-BOTTOM: #000000 1px solid" align=center width="36%"
    colSpan=7><B>As at December 31, 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="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>Unrealized</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&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="10%"><B>Cost</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>gain (loss)</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>Fair value</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 2px solid" align=left
      bgColor=#e6efff>Continental Minerals Corporation &#150; common shares </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;7,026 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;4,830 </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="10%"
    bgColor=#e6efff>&nbsp;11,856 </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>

  <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 style="BORDER-BOTTOM: #000000 1px solid" align=center width="36%"
    colSpan=7><B>As at December 31, 2008</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="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>Unrealized</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&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="10%"><B>Cost</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="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>gain (loss)</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="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Fair value</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>Continental Minerals Corporation &#150; common
      shares </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;9,880 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;(7,297</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;2,583 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Investment in
      other public companies </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">409
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">146</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">555
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;10,289 </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;(7,151</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;3,138 </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>As at December 31, 2009, the Company
held 5,566,126 (2008 &#150; 7,827,726) shares of Continental Mineral Corporation
(&#147;Continental&#148;), a public company with certain directors in common with the
Company. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Subsequent to year end, the Company
sold 403,800 shares of Continental for proceeds of $859. </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 ><B>8.</B> </TD>
    <TD align=left width="95%"><B>ARRANGEMENT AGREEMENT (TRACKING PREFERRED
      SHARES AND</B> <B>HARMONY GOLD PROPERTY)</B> </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>In October 2001, the Company and its
subsidiary Gibraltar Mines Ltd. ("Gibraltar") completed the acquisition of the
Harmony Gold Property (&#147;Harmony&#148;) and related assets from Continental, for
12,483,916 series "A" non-voting tracking preferred shares of Gibraltar and
$2,230 cash. The tracking preferred shares were recorded at $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&#146; equity on the consolidated balance sheet. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The initial paid-up amount for the
Gibraltar preferred shares is $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 $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 $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 $62,770 nor be less than $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>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" 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 $3.39
and escalating by $0.25 per year, currently at $5.39 (as of December 31,
2009).</P>
<P style="MARGIN-LEFT: 5%" 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
$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>
<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>9.</B> </TD>
    <TD align=left width="95%"><B>MINERAL PROPERTY INTERESTS</B>
</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 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="12%" align=right nowrap style="BORDER-TOP: #000000 2px solid">December
      31 </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 width="12%" align=right nowrap style="BORDER-TOP: #000000 2px solid">December
      31 </TD>
    <TD style="BORDER-TOP: #000000 2px 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="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%">2008
    </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>Gibraltar Copper Mine (note 9(a)) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;16,766 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;16,743 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Prosperity Gold-Copper Property (note 9(b)) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">1 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">1 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Harmony Gold Property (note 9(c)) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Aley Niobium Property (note 9(d)) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">8,343 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">8,343 </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>Oakmont Royalty Interest (note 9(e)) </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>7,520 </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="12%"
    bgColor=#e6efff>7,520 </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 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%">&nbsp;32,631 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%">&nbsp;32,608 </TD>
<TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><I>(a) Gibraltar Copper Mine </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>In July 1999, the Company acquired a
100% interest in the Gibraltar Copper Mine mineral property, located near
Williams Lake, British Columbia, Canada from Boliden Westmin (Canada) Limited
("BWCL") for $3,325. The acquisition of the Gibraltar Mine, which had been on
care and maintenance since 1998, included plant and equipment and supplies
inventory of the Gibraltar Mine, and $8,000 of funds for future reclamation. As
part of its 1999 operating permits, the Company had agreed to incur a total of
$4,000 on reclamation and environmental programs during the six year period July
1999 to July 2005. The Gibraltar Mine final reclamation and closure plan is
updated every five years. The most recent reclamation plan and closure report
was approved by the British Columbia Ministry of Energy and Mines in 2004.
Pursuant to this approved closure plan, the Ministry agreed that the Company had
satisfied the $4,000 reclamation obligation required under the 1999 operating
permits. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The acquisition agreement contained
certain indemnification clauses. The $8,000 of funds set aside for future
reclamation was considered a "Qualified Environmental Trust" for Canadian income
tax purposes. During the year ended September 30, 2003, the Government of
British Columbia released these funds from the Trust, which resulted in an
income inclusion to the Company, and consequently resulted in the Company
utilizing $3,570 of tax pools otherwise available to it. The Company has made a
claim to BWCL for this estimated tax liability under the indemnification terms
of the agreement. No amount has been recognized in these consolidated financial
statements related to this claim. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>During the year ended September 30,
2004, the Company commenced restart activities and entered into an agreement
with Ledcor CMI Ltd. and Ledcor Mining Ltd. (together "Ledcor"), whereby Ledcor
would finance certain equipment and commission, restart, and operate the
Gibraltar Mine. Ledcor&#146;s primary responsibility was the commissioning and the
operating of the mine in addition to other aspects of mine operations, including
drilling, blasting, loading and hauling of ore and waste as well as the
recruitment of personnel and the maintenance of equipment and facilities.
Pursuant to the agreement, the Company was required to maintain a bank account
with a balance of at least $5,000 in a "product revenue account", for purposes
of providing a working capital reserve for operations and general administrative
costs. The Company granted a general security agreement to Ledcor for $5,800 and
a second charge on certain mine equipment with an appraised fair value of at
least $5,800. </P>
<P style="MARGIN-LEFT: 5%" align=justify>In July 2006, the Company effected a
notice of voluntary withdrawal from the agreement established with Ledcor. Under
this notice, and effective November 2006, the Company assumed responsibility as
operator of the Gibraltar mine and paid Ledcor a termination fee of $3,500. This
termination fee was accrued for in the consolidated financial statements for the
year ended September 30, 2006 and was paid during the year ended September 30,
2007. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(b) Prosperity Gold-Copper Property
</I></P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company owns 100% of the Prosperity
Gold-Copper Property, consisting of 196 mineral claims covering the mineral
rights for approximately 85 square km in the Clinton Mining Division in south
central British Columbia, Canada.</P>
<P style="MARGIN-LEFT: 5%" align=justify>Subsequent to year end, the Company
received the environmental assessment certificate for the Prosperity Project
from the British Columbia Provincial Ministry of Environment. The Company
expects the Federal environmental assessment process to be completed in fiscal
2010.</P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(c) Harmony Gold Property </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>Under the terms of an arrangement
agreement (note 8), the Company acquired a 100% interest in the Harmony Gold
Property in fiscal 2002. The Company is considering initiating a pre-feasibility
level study in fiscal 2010 of Harmony to further evaluate the project. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(d) Aley Niobium Property </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>In June 2007, the Company completed the
acquisition of all the issued and outstanding shares in the capital of a private
company with a project in north-eastern British Columbia, Canada (&#147;the
Transaction&#148;), for a total cash consideration to the acquired company&#146;s
shareholders of $1,500 as well as a share settlement to the value of $2,970
(consisting of 894,730 common shares).</P>
<P style="MARGIN-LEFT: 5%" align=justify>In the above Transaction, the Company
also purchased the residual net smelter royalties (&#147;NSR&#148;) from Teck Cominco
Metals Limited (&#147;Teck&#148;) for a total cash consideration to Teck of $300 and the
issuance of units with a value of $835 (consisting of 240,000 common shares and
120,000 warrants).</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The total acquisition price has been
allocated to the net assets acquired and liabilities assumed 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 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="12%"><B>Amount</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 width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Current assets </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;79 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Mineral property interests </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">8,343 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Current liabilities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(123</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Future income
      taxes </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="12%">(2,694</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Total consideration paid, being cash, common shares and
      units </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;5,605 </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>The Company is considering additional
exploration work in fiscal 2010 to advance this project. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(e) Purchase of Oakmont Ventures
Ltd. </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>On May 2, 2008, the Company completed
the acquisition of all the issued and outstanding shares in the capital of a
private company, Oakmont Ventures Ltd. (&#147;Oakmont&#148;), whose sole asset is the 30%
net profits interest in certain claims that are part of the Gibraltar mine
property located adjacent to the Gibraltar East pit. The acquisition was
completed through the issuance of 1,000,000 common shares of the Company at the
value of $5,220. The acquisition was accounted for under the purchase method.
</P>
<P style="MARGIN-LEFT: 5%" align=justify>The total acquisition price has been
allocated to the net assets acquired and liabilities assumed 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 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="12%"><B>Amount</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 width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Mineral property interests </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;7,520 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Current liabilities </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(43</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Future income taxes </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>(1,955</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Total
      consideration paid, being cash, common shares and units </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%">&nbsp;5,522 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, 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 align=left ><B>10.</B> </TD>
    <TD align=left width="95%"><B>MINERAL PROPERTY INTERESTS, PLANT AND
      EQUIPMENT</B> </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  >&nbsp;</TD>
    <TD align=left colSpan=3><B>Plant and equipment &#150; Gibraltar Mine</B> </TD>
    <TD width="2%" align=left >&nbsp;</TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD width="8%" align=left>&nbsp; </TD>
    <TD width="2%" align=left >&nbsp;</TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD width="8%" align=left>&nbsp; </TD>
    <TD width="2%" align=left >&nbsp;</TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD width="8%" align=left>&nbsp; </TD>
    <TD width="2%" align=left >&nbsp;</TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD width="8%" align=left>&nbsp; </TD>
    <TD width="2%" align=left >&nbsp;</TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD width="8%" align=left>&nbsp; </TD>
    <TD width="2%" align=left >&nbsp;</TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD >&nbsp;</TD>
    <TD >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD >&nbsp;</TD>
    <TD >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD >&nbsp;</TD>
    <TD >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD >&nbsp;</TD>
    <TD >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD >&nbsp;</TD>
    <TD >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD colspan="7" align=right style="BORDER-BOTTOM: #000000 1px solid">    December 31, 2009 </TD>
    <TD align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD colspan="7" align=right style="BORDER-BOTTOM: #000000 1px solid">    December 31, 2008 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>Accumulated </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right nowrap>Net book </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>Accumulated </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right nowrap>Net book </TD>
  <TD align=left >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>Cost    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>Amortization </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>value    </TD>
    <TD align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>Cost    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>Amortization </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>value    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Buildings and equipment </TD>
    <TD align=left  bgColor=#e6efff>$</TD>
    <TD align=right bgColor=#e6efff>&nbsp;6,281 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>$</TD>
    <TD align=right bgColor=#e6efff>&nbsp;2,807 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>$</TD>
    <TD align=right bgColor=#e6efff>&nbsp;3,474 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>$</TD>
    <TD align=right bgColor=#e6efff>&nbsp;6,115 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>$</TD>
    <TD align=right bgColor=#e6efff>&nbsp;2,421 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>$</TD>
    <TD align=right bgColor=#e6efff>&nbsp;3,694</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left>Mine equipment </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>93,043 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>11,265 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>81,778 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>58,659 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>9,900 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>48,759</TD>
    <TD align=left >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Plant and equipment </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>104,449 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>6,824 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>97,625 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>97,867 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>4,126 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>93,741</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left>Vehicles </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>2,856 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>1,593 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>1,263 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>1,864 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>1,086 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>778</TD>
    <TD align=left >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Computer equipment </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>3,390 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>3,130 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>260 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>3,390 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>2,870 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>520</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left>Social assets </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>402 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>&#150; </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>402 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>402 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>&#150; </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>402</TD>
    <TD align=left >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Deferred pre-stripping costs </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>52,535 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>5,307 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>47,228 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>52,535 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>2,358 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>50,177</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left>Construction in progress </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>60,616 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>&#150; </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>60,616 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>82,542 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>&#150; </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>82,542</TD>
    <TD align=left >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Assets under capital lease </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>18,222 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>333 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>17,889 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>17,521 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>13 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>17,508</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left>Asset retirement costs </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>62 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>&#150; </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>62 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>&#150; </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>&#150; </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>&#150;</TD>
    <TD align=left >&nbsp;</TD></TR>

  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid">Net asset retirement obligation
      adjustment </TD>
    <TD align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD align=right bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid">(5,608</TD>
    <TD align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid"
    >) </TD>
    <TD align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD align=right bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid">&#150; </TD>
    <TD align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD align=right bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid">(5,608</TD>
    <TD align=left bgcolor="#E6EFFF"
    >) </TD>
    <TD align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD align=right bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid">(6,012</TD>
    <TD align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid"
    >) </TD>
    <TD align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD align=right bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid">&#150; </TD>
    <TD align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD align=right bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid">(6,012</TD>
    <TD align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid"
    >) </TD></TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Total Gibraltar mine </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right>&nbsp;336,248 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right>&nbsp;31,259 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right>&nbsp;304,989 </TD>
    <TD align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right>&nbsp;314,883 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right>&nbsp;22,774 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right>&nbsp;292,109</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp;</TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp; </TD>
    <TD bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp; </TD>
    <TD bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp; </TD>
    <TD bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp; </TD>
    <TD bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp; </TD>
    <TD bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp; </TD>
    <TD bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp; </TD>
    <TD bgcolor="#E6EFFF" >&nbsp;</TD></TR>

  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Other equipment and leasehold
      improvements </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;423 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;207 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;216 </TD>
    <TD align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;386 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;103 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;283 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD  bgColor=#e6efff>&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD  bgColor=#e6efff>&nbsp;</TD>
    <TD  bgColor=#e6efff>&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD  bgColor=#e6efff>&nbsp;</TD>
    <TD  bgColor=#e6efff>&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD  bgColor=#e6efff>&nbsp;</TD>
    <TD  bgColor=#e6efff>&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD  bgColor=#e6efff>&nbsp;</TD>
    <TD  bgColor=#e6efff>&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD  bgColor=#e6efff>&nbsp;</TD>
    <TD  bgColor=#e6efff>&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left colSpan=3><B>Total
      mineral property interests</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>32,631 </TD>
    <TD align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>32,608</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD  bgColor=#e6efff>&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD  bgColor=#e6efff>&nbsp;</TD>
    <TD  bgColor=#e6efff>&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD  bgColor=#e6efff>&nbsp;</TD>
    <TD  bgColor=#e6efff>&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD  bgColor=#e6efff>&nbsp;</TD>
    <TD  bgColor=#e6efff>&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD  bgColor=#e6efff>&nbsp;</TD>
    <TD  bgColor=#e6efff>&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD  bgColor=#e6efff>&nbsp;</TD>
    <TD  bgColor=#e6efff>&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD >&nbsp;</TD>
    <TD >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD >&nbsp;</TD>
    <TD >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD >&nbsp;</TD>
    <TD >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD >&nbsp;</TD>
    <TD >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD >&nbsp;</TD>
    <TD >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left bgColor=#e6efff
    colSpan=3><B>Mineral properties, plant and equipment</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    bgColor=#e6efff><B>&nbsp;337,836</B> </TD>
    <TD align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    bgColor=#e6efff><B>&nbsp;325,000</B><B>.</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>As at December 31, 2009, approximately
$61,429 (December 31, 2008 &#150; $82,542) of plant and equipment is under
construction related to the Company&#146;s expansion activities and not being
amortized. Amortization recorded during the period reflects changes in
accounting estimates during the period resulting from the increase in the life
of the Gibraltar mine. </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 ><B>11.</B> </TD>
    <TD align=left width="95%"><B>RESTRICTED CASH</B> </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>During the year, the Company pledged
$3,153 (USD$3,000) as a cash collateral in favour of Credit Suisse to obtain a
waiver on a certain clause in the term facility agreement with Credit Suisse
(note 17). Accordingly, this amount was classified as restricted cash as at
December 31, 2009.</P>
<P style="MARGIN-LEFT: 5%" align=justify>In February 2007, Taseko issued a
standby letter of credit, collateralized by cash in the amount of $4,400, to
British Columbia Hydro and Power Authority (&#147;B.C. Hydro&#148;) to provide security
for costs to be incurred by BC Hydro relating to the electrical system
reinforcements required for the Gibraltar Expansion Project in accordance with
&#147;Credit Support Agreement&#148; between Gibraltar and B.C. Hydro. Under the
agreement, the Company was required to submit a standby letter of credit as a
guarantee in the amount of $4,400 in order for B.C. Hydro to initiate
procurement of major equipment as part of systems reinforcements. The letter of
credit was released during the year upon the commencement of power consumption
with the cash security being now reduced based on Gibraltar&#146;s consumption of
power.<B> </B></P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, 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 align=left><B>12.</B> </TD>
    <TD align=left width="95%"><B>RELATED PARTY TRANSACTIONS AND BALANCES</B>
    </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 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=left width="10%">&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="10%"><B>15
      months</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="10%">&nbsp;
</TD>
    <TD style="BORDER-TOP: #000000 2px 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=right width="10%"><B>Year ended</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%"><B>ended</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%"><B>Year ended</B> </TD>
    <TD 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="10%" align=right nowrap><B>December 31,</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>
    <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></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Transactions </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>
    <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>2008</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>2007</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>Hunter Dickinson Services Inc. </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD 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="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 width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Services rendered to the Company and its <BR>subsidiaries
      and reimbursement of third <BR>party expenses </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><BR><BR>&nbsp;2,709 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><BR><BR>&nbsp;8,934 </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><BR><BR>&nbsp;4,936 </TD>
<TD style="BORDER-BOTTOM: #000000 1px 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>

  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%"><B>As at</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%"><B>As at</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>Due to (from): </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>December 31, 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>December 31, 2008</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 2px solid" align=left
      bgColor=#e6efff>Hunter Dickinson Services Inc. </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;13 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;1,772 </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>Hunter Dickinson Services Inc. ("HDSI")
is a private company which&nbsp;until&nbsp;recently&nbsp;was&nbsp;owned
equally&nbsp;by&nbsp;eight&nbsp;public&nbsp; companies, one of which is Taseko.
Subsequent to year end on March 17, 2009, the Company sold its interest in HDSI.
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 a full cost
recovery basis per agreement dated June 1, 2008. Transactions with HDSI are
reflected in the Company&#146;s general and administration expenses and are measured
at the exchange amount based on the agreement. Advances are interest bearing and
due on demand. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company also has an investment in
common shares of a related party as described in note 7. </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>13.</B> </TD>
    <TD>
      <P align=justify><B>BANK INDEBTEDNESS</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>During the prior year, the Company signed an overdraft
      facility with a Canadian financial institution for up to $10,000. The term
      of the facility bore interest at prime rate plus 1% and was secured
      against the Company&#146;s accounts receivable. The facility agreement
      stipulated that the facility will be terminated in the event the London
      Metal Exchange (&#147;LME&#148;) monthly cash price of copper reduces below US$2.00
      per pound. The facility was also subject to minimum working capital,
      interest and debt-to-equity ratio covenants. During the year ended
      December 31, 2009, the Company repaid the overdraft facility in full and
      had terminated the overdraft facility.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>14.</B> </TD>
    <TD>
      <P align=justify><B>CONVERTIBLE DEBT</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><I>(a) Convertible Bonds &#150; August 2006</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>On August 29, 2006 (the &#147;Closing&#148;), the Company issued
      US$30,000 in principal amount of five year convertible bonds due in 2011
      (the "Bonds") to qualified institutional buyers (the &#147;Bondholders&#148;). The
      Bonds were convertible into the Company&#146;s common shares. The Bonds
      constituted direct, unsubordinated, unsecured, general and unconditional
      obligations of the Company. The Bonds were issued at 100% and, if not
      converted, could be redeemed at maturity at 101%. The Bonds carried coupon
      interest rates of 7.125% per annum. The Bonds also had a &#147;put&#148; right in
      August 2009 to be redeemed at 100.6%.</P></TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>During the year ended December 31,
2009, the Company repurchased US$20,000 of the Bonds from its Bondholders for
the purpose of cancellation. In addition, the remaining Bondholders exercised
the &#147;put&#148; right on the remaining US$10,000 in August 2009. The Company allocated
the consideration paid on the extinguishment of the convertible bond 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>
<P style="MARGIN-LEFT: 5%" align=justify>The continuity of the Bonds 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 width="5%"  >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left><B>Convertible
      Bonds</B> </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%"><B>12
      months</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=right width="12%"><B>15
      months</B> </TD>
    <TD style="BORDER-TOP: #000000 2px 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=right width="12%"><B>ended</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>ended</B> </TD>
    <TD 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="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</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 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>2008</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>Present value of convertible bonds </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" 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; &nbsp; &nbsp;Beginning of year </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">&nbsp;35,219</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">&nbsp;26,693 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Accretion for the year
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1,260 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>2,198 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp; &nbsp;Foreign exchange loss (gain) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(2,833</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">6,328 </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>&nbsp; &nbsp; &nbsp;Repurchase/redemption of US$30 million
      of convertible bonds </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>(33,646</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </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>&#150; </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>&nbsp; &nbsp;
      &nbsp;End of year </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%">&#150; </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%">35,219 </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>Conversion right </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" 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; &nbsp; &nbsp;Beginning of year </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">3,832</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">3,832 </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>&nbsp; &nbsp; &nbsp;Repurchase of convertible bonds </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>(3,832</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </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>&#150; </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>&nbsp; &nbsp;
      &nbsp;End of year </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%">&#150; </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%">3,832
    </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 2px solid" align=left
      bgColor=#e6efff>Convertible Bonds </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="12%"
    bgColor=#e6efff>&nbsp;&#150; </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="12%"
    bgColor=#e6efff>&nbsp;39,051 </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>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left>Convertible Bonds </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="11%" align=right nowrap style="BORDER-TOP: #000000 2px solid">December
      31, </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 width="11%" align=right nowrap style="BORDER-TOP: #000000 2px solid">December
      31, </TD>
    <TD style="BORDER-TOP: #000000 2px 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="11%">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="11%">2008
    </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>Summary of the convertible bond terms: </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="11%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="11%" 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; &nbsp; &nbsp;Principal amount of convertible
      debenture </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="11%">N/A </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="11%">US$ 30,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Price per common share
      of the unexercised conversion right </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="11%" bgColor=#e6efff>N/A </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>US$ 3.35 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"
      align=left>&nbsp;&nbsp;&nbsp;&nbsp; Number of common shares potentially
      issuable under <BR>&nbsp;&nbsp;&nbsp;&nbsp; unexercised conversion right
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="11%">N/A
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    ><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="11%">8,955,224 </TD>
<TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    ><BR></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><I>(b) Convertible Debenture &#150; NVI
Mining Ltd (formerly Boliden Westmin (Canada) Limited) </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>On July 21, 1999, in connection with
the acquisition of the Gibraltar Mine, the Company issued a $17,000
interest-free debenture (the &#147;Debenture&#148;) to NVI Mining Ltd. (&#147;NVI&#148;), formerly
Boliden Westmin (Canada) Limited. The Debenture was due on July 21, 2009 and was
convertible into common shares of the Company over a 10 year period commencing
at a price of $3.14 per share in year one and escalating by $0.25 per share per
year thereafter. NVI had the right to convert, in part or in whole from time to
time, the Debenture into fully paid common shares of the Company from year one
to year ten.</P>
<P style="MARGIN-LEFT: 5%" align=justify>On April 2, 2008, NVI issued a notice
to the Company to convert the principal amount of the Debenture of $17,000 at an
effective conversion rate of $5.14 per common share, which would have resulted
in 3,307,393 common shares of the Company being issued to NVI. The Company
issued 2,612,971 common shares to NVI and a cash payment of $3,569 in lieu of
issuing the remaining 694,422 common shares as full and final settlement to NVI.
The 2,612,971 shares were recorded at $21,318 in the Company&#146;s
accounts to settle the carrying value of the liability and equity portion of the
Debenture as at April 2, 2008. The continuity of the Debenture is as follows: </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, 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 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="12%" align=right nowrap style="BORDER-TOP: #000000 2px solid">15
      months ended </TD>
    <TD style="BORDER-TOP: #000000 2px 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=right width="12%">December 31, </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>Liability
      component:</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="12%">2008
    </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>&nbsp;Present value of convertible
      debenture </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;14,315 </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>&nbsp;Accretion,
      net of interest, for the period </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%">750
    </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>&nbsp;Balance </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>15,065 </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>&nbsp;Conversion
    </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%">(15,065</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 1px solid" align=left
      bgColor=#e6efff>&nbsp;Liability component </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>&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" 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="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff><B>Equity component:</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" 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;Conversion right </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">9,823 </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>&nbsp;Conversion </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>(9,823</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" 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;Equity
      component </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%">&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Convertible
      debenture </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%">&nbsp;&#150; </TD>
<TD style="BORDER-BOTTOM: #000000 2px solid" 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 align=left ><B>15.</B> </TD>
    <TD align=left width="95%"><B>SITE CLOSURE AND RECLAMATION OBLIGATIONS</B>
    </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The continuity of the provision for
site closure and reclamation costs related to the Gibraltar Mine is as
follows:<B> </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%"  >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left
      bgColor=#e6efff>Balance, September 30, 2006 </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;18,975 </TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Changes during fiscal 2007: </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Reclamation incurred </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(167</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;Accretion expense </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">1,777 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Additional site closure and
      reclamation obligation recognized </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>4,449 </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>&nbsp;
      &nbsp;Reduction in the present value of reclamation obligation due to a
      revision in mine life </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%">(7,593</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Balance, September 30, 2007 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;17,441 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Changes during fiscal, 2008: </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Reclamation incurred </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(183</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;Accretion expense </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">1,451 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Additional site closure and
      reclamation obligation recognized </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>366 </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>&nbsp;
      &nbsp;Reduction in the present value of reclamation obligation due to a
      revision in mine life </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%">(8,709</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Balance, December 31, 2008 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;10,366 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Changes during fiscal 2009: </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Reclamation incurred </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(1,590</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;Accretion expense </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">968 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; &nbsp;Additional site closure and reclamation
      obligation recognized </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>63 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><B>Balance,
      December 31, 2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%"><B>&nbsp;9,807</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>During the 15 months ended December 31,
2008 and the year ended September 30, 2007, the value of the underlying site
closure and reclamation obligation was revised to reflect an increase </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_29></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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>in the life of the Gibraltar mine. This
change resulted in a revision to the timing of undiscounted cash flows
associated with the carrying amount of the liability and a reduction in the
present value of the site closure and reclamation obligation. The impact of
these changes in estimates was: </P>
<UL style="TEXT-ALIGN: justify">
  <LI><P style="MARGIN-LEFT:5%">an increase to asset retirement costs included in
  mineral properties, plant and equipment and corresponding increase to
  reclamation obligation as at December 31, 2008 of $366 (September 30, 2007 &#150;
  $4,449) </P>
  <LI><P style="MARGIN-LEFT:5%">a decrease as at December 31, 2008 of $1,426
  (September 30, 2007 &#150; $Nil) in asset retirement costs included in mineral
  properties, plant and equipment </P>
  <LI><P style="MARGIN-LEFT:5%">a decrease as at December 31, 2008 of $8,709
  (September 30, 2007 &#150; $7,593) in the present value of the reclamation
  obligation due to an extension in the mine life </P>
  <LI><P style="MARGIN-LEFT:5%">a gain for the 15 months ended December 31, 2008 of
  $6,917 (year ended September 30, 2007 &#150; $4,570; year ended September 30, 2006
  &#150; $nil) </P></LI></UL>
<P style="MARGIN-LEFT: 5%" align=justify>The new estimated amount of the
reclamation costs, adjusted for estimated inflation at 2.5% per year, in 2032
dollars, as at December 31, 2008 was $90,000 (September 30, 2007 &#150; $68,400) 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 at 7.1% to 10%, which results in a net present value
as at December 31, 2008 of $10,366 (September 30, 2007 &#150; $17,441). The accretion
for the year ended December 31, 2009 of $968 (2008 &#150; $1,451, 2007 &#150; $1,777) is
charged to the statement of operations. </P>
<P style="MARGIN-LEFT: 5%" align=justify>As required by regulatory authorities,
at December 31, 2009, the Company had cash reclamation deposits totaling $29,421
(2008 &#150; $32,396) comprised of $29,132 (2008 &#150; $32,152) for the Gibraltar Mine,
$75 (2008 &#150; $30) for the Prosperity Project, $175 (2008 &#150; $175) for the Harmony
Project and $39 (2008 &#150; $39) for the Aley Project. These deposits are invested
in government bonds and treasury bills and bear interest at rates ranging from
3.55% to 5.85% per annum. During the year, the Government of British Columbia
permitted the Company to withdraw $3,900 (2008 &#150; $5,000) from the Gibraltar Mine
reclamation deposit in exchange for security on certain equipment of the
Gibraltar Mine.</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 ><B>16.</B> </TD>
    <TD align=left width="95%"><B>LONG-TERM LOAN OBLIGATIONS</B>
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>In addition to obligations under the
Company&#146;s long-term credit facility as described in note 17, future obligations
under capital leases and long-term loans 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 2px solid" align=left>As at December 31,
      2009 </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=right
      width="10%"><B>Capital Lease</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=right
      width="10%"><B>Long-Term</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=right width="10%"><B>Total
      Long-Term</B> </TD>
    <TD style="BORDER-TOP: #000000 2px 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="10%" 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="10%" 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="10%" 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 align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;4,543</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;2,701</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;7,244</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>2011 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">4,266</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">2,701</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">6,967</TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>2012 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>4,215</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>4,710</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>8,925</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>Thereafter until
      2013 </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%">2,612</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%">&#150;</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%">2,612</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>Total payments </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;15,636</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;10,112</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;25,748</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>Less: interest
      portion </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%">(1,648</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </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%">(1,402</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </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%">(3,050</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" 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 align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;13,988</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;8,710</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;22,698</TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Current portion
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(3,750</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(2,032</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(5,782</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Non-current portion </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;10,238</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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;6,678</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;16,916 </TD>
<TD style="BORDER-BOTTOM: #000000 2px solid" 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>
<!--$$/page=--><A name=page_30></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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, 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 2px solid" align=left>As at December 31,
      2008 </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=right
      width="10%"><B>Capital Lease</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=right
      width="10%"><B>Long-Term</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=right width="10%"><B>Total
      Long-Term</B> </TD>
    <TD style="BORDER-TOP: #000000 2px 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="10%" 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="10%" 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="10%" 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>2009 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;4,280 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" 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="10%" bgColor=#e6efff>&nbsp;4,280 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>2010 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">4,003 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">4,003 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>2011 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>4,003 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>4,003 </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>Thereafter until
      2013 </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%">6,614 </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%">&#150; </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%">6,614 </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>Total payments </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;18,900 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;18,900 </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>Less: interest
      portion </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%">(2,476</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </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%">&#150; </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%">(2,476</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" 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 align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;16,424 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;16,424 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Current portion
</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="10%">(3,324</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="10%">(3,324</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Non-current portion </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;13,100 </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;13,100 </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>(a) Capital Lease Obligations
</I></P>
<P style="MARGIN-LEFT: 5%" align=justify>Included in property, plant and
equipment are mining equipment that the Company acquired pursuant to three to
four year capital lease agreements.</P>
<P style="MARGIN-LEFT: 5%" align=justify>Capital lease obligations as detailed
above are secured over plant and equipment and are repayable in monthly
installments with fixed interest rates. The capital lease obligations bear a
fixed interest rate at 5.93% - 8.80% per annum.</P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(b)</I><I> </I><I>Long-term
Equipment Loan </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>During the period, the Company entered
into 36-month term equipment loan agreements to finance the purchase of
equipment for the Gibraltar Mine. The principal amounts of the loans total
$9,054. The loans are secured by the underlying equipment at the Gibraltar Mine.
</P>
<P style="MARGIN-LEFT: 5%" align=justify>The equipment loans are repayable
commencing one month after inception in 35 equal monthly installments in the
amount of $225 until 2012. The last installment is payable in 2012 in the amount
of $2,841. The equipment loans bear a fixed interest rate at 8.6% per annum.</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 ><B>17.</B> </TD>
    <TD align=left width="95%"><B>LONG-TERM CREDIT FACILITY</B>
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>In February 2009, the Company entered
into and drew upon a US$30,000 36-month term facility agreement (the &#147;Facility&#148;)
with Credit Suisse. In September 2009, the Company and Credit Suisse, as
Facility Agent, and Investec Bank plc (&#147;Investec&#148;) 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 is repayable commencing April 2010 and every second month thereafter in
equal installments of US$4,167 until February 2012. The Facility bears interest
at LIBOR plus 5 percent which is due and payable bi-monthly. The long-term
credit facility security provided under the terms of the relevant agreements
includes certain equipment of the Gibraltar Mine, a general security pledge, and
the treatment and refining off-take agreement (note 23(b)) in addition to a
corporate guarantee.</P>
<P style="MARGIN-LEFT: 5%" align=justify>The Facility has financial covenants
requiring a maximum total debt to total equity ratio of 55%, a minimum tangible
net worth of $150,000, a maximum production cost threshold of $1.56 per lb of copper, minimum debt service
coverage ratios of 135% and sufficient hedging in place to cover six-month
forecasted operating costs and debt service requirements. Total debt is
generally defined as all interest bearing liabilities, plus any guarantees of
debt. Total equity is defined as total shareholder&#146;s equity including share
capital, equity component of convertible debt, tracking preferred shares,
contributed surplus, accumulated other comprehensive income (loss) and deficit.
Tangible net worth is defined as total equity less amounts attributable to
goodwill and other intangible assets and reserves attributable to interest of
minority shareholders of the Company.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_31></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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>As at December 31, 2009, the Company&#146;s
is in compliance with these covenants. The Company&#146;s debt to equity was 33.6%,
its tangible net worth was $296,693, its production cost is at $1.47 per lb of
copper and its debt service coverage ratios were within the threshold set by the
covenant. The Company has the option at any time after 18 months from the
Utilization Date to prepay the Facility. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company incurred financing fees of
$1,709 to obtain the Facility. This amount is being amortized to interest
expense using the effective interest rate method. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Future principal payments 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 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD width="12%"
    align=right nowrap style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"><B>As at December 31, 2009</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 width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>2010 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;21,896 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>2011 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">26,275 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>2012 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>4,379 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Total payments </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">&nbsp;52,550 </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>Less: unamortized financing fees </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>(1,045</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Present value of credit facility obligations </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">51,505 </TD>
    <TD 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>Current portion </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff>(21,896</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" 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" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%">&nbsp;29,609 </TD>
<TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Subsequent to year end on March 31,
2010, the Company prepaid the Facility in full. </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 ><B>18.</B> </TD>
    <TD align=left width="95%"><B>SHARE CAPITAL</B> </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><I>(a)</I><I></I><I> Authorized
</I></P>
<P style="MARGIN-LEFT: 5%" align=justify>Authorized share capital of the Company
consists of an unlimited number of common shares without par value. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(b)</I><I></I><I> Private Placements
</I></P>
<P style="MARGIN-LEFT: 5%" align=justify><I>Fiscal year ending December 31, 2009
</I></P>
<P style="MARGIN-LEFT: 5%" align=justify>On April 15, 2009, the Company
completed a &#147;bought deal&#148; short form prospectus offering (the &#147;Offering&#148;) of
13,793,104 common shares at a price of $1.45 per common share (the &#147;Offering
Price&#148;). A syndicate of underwriters led by Raymond James Ltd. and including
Wellington West Capital Markets Inc., Canaccord Capital Corporation, Jennings
Capital Inc. and Paradigm Capital Inc. (collectively, the &#147;Underwriters&#148;) acted
as Underwriters in connection with the Offering. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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 vAlign=top>
    <TD align=left><B>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The Company granted to the Underwriters
an over-allotment option to purchase up to an additional 2,068,965 common shares
at the Offering Price. The Underwriters elected to exercise the over-allotment
option in full, resulting in aggregate gross proceeds to the Company of
$23,000.</P>
<P style="MARGIN-LEFT: 5%" align=justify>In addition, the Company also completed
a private placement financing of 3,628,015 shares at $1.45 per common share for
gross proceeds of $5,261. A finder's fee of 6% of the proceeds of the private
placement financing was paid. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company incurred $1,444 in
financing fees related to the Offering and the private placement. The net
proceeds of $26,817 from the Offering were used for discharge of accounts
payable and general working capital. </P>
<P style="MARGIN-LEFT: 5%" align=justify>During the year, 9,085,715 warrants
issued in December 2008 were exercised for total proceeds of $7,723.<B> </B></P>
<P style="MARGIN-LEFT: 5%" align=justify><I>Fiscal period ending December 31,
2008 </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>In December 2008, the Company completed
a private placement financing of 8,571,429 units (the "Units"), with each Unit
consisting of one common share and one common share purchase warrant (a
"Warrant"), at the issue price of $0.70 per Unit for gross proceeds of $6,000.
Each Warrant entitles the holder to purchase one common share of the Company (a
"Warrant Share") for a period of 24 months at the exercise price of $0.85 per
Warrant Share in the first 12 months and $0.95 per Warrant Share in the second
12 months, subject to an acceleration of the expiry date to 30 days in the event
the Company's common shares trade at a price of $1.50 or higher for a period of
10 trading days. A finder's fee of 6% of the proceeds of the private placement
financing was paid in 514,286 units with each unit consisting of one common
share and one common share purchase warrant.</P>
<P style="MARGIN-LEFT: 5%" align=justify>In October 2007, the Company completed
a short form prospectus offering of 7,115,385 common shares at a price of $5.20
per common share, and also granted to the underwriters an over-allotment option
to purchase up to an additional 1,067,307 common shares at the same price, which
over-allotment option was exercised in full, for aggregate gross proceeds to the
Company of approximately $42,500. Financing fees of $2,553 were paid to the
underwriters. </P>
<P style="MARGIN-LEFT: 5%" align=justify>In November 2007, the Company completed
a private placement financing of 1,455,100 common shares at a price of $5.20 per
share for gross proceeds of approximately $7,600. A finder&#146;s fee of $205 was
paid in conjunction with the private placement. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(c) Share purchase option plan
</I></P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company has a share purchase option
compensation plan (the &#147;Plan&#148;) approved by the shareholders that allows it to
grant options, subject to regulatory terms and approval, to its directors,
employees, officers and consultants. The Plan is based on a maximum number of
eligible shares equaling a rolling percentage of up to 10% of the Company&#146;s
outstanding common shares, calculated from time to time. Pursuant to the Plan,
if outstanding options are exercised, or expire, and/or the number of issued and
outstanding common shares of the Company increases, the options available to
grant under the Plan increase proportionately. The exercise price of each option is set by the Board of Directors
at the time of grant and cannot be less than the market price (less permissible
discounts) on the Toronto Stock Exchange. Options may have a term of up to ten
years and typically terminate 30 days following the termination of the
optionee&#146;s employment, except in the case of retirement or death. Vesting of
options is at the discretion of the Board at the time the options are
granted.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_33></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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The continuity of share purchase
options is as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <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=center width="19%"
      colSpan=4><B>2009</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=center width="19%"
      colSpan=4><B>2008</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=center width="19%"
      colSpan=4><B>2007</B> </TD>
    <TD style="BORDER-TOP: #000000 2px 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=right width="8%">Number </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">Average </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">Number </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">Average </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">Number </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">Average </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="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">of
      shares </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="8%">Price
    </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="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">of
      shares </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="8%">Price
    </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="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">of
      shares </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="8%">Price
    </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>Opening balance </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>7,817,718 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>1.33 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>5,707,334 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;2.60 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>3,578,834 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;1.78 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Granted during the year </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">3,983,500 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">1.50 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">8,472,050 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">2.19 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">3,301,500 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">3.21 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Exercised during the year </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>(1,161,749</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>1.20 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>(270,100</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>2.48 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>(1,057,633</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>1.76 </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>Expired/cancelled
      during year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="8%">(254,834</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">2.14
    </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="8%">(6,091,566</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">3.67
    </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="8%">(115,367</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">2.20
    </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>Closing balance </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>10,384,635 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>1.40 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>7,817,718 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;1.33 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>5,707,334 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;2.60 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left colSpan=3>Average
      contractual remaining life (years) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%">3.17
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="8%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%">3.47
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="8%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%">3.40
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Range of exercise prices </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="19%"
    bgColor=#e6efff colSpan=4>1.00 &#150; $4.50 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="19%"
    bgColor=#e6efff colSpan=4>1.00 - $5.45 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="19%"
    bgColor=#e6efff colSpan=4>1.15 - $4.09 </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>The following table summarizes
information about share purchase options outstanding at December 31, 2009: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; 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 style="BORDER-BOTTOM: #000000 1px solid" align=center width="30%"
    colSpan=7>Options outstanding </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 style="BORDER-BOTTOM: #000000 1px solid" align=center width="19%"
    colSpan=4>Options exercisable </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=right width="8%">Number </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">Weighted </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">Weighted </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">Number </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">Weighted </TD>
    <TD 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="8%" align=right nowrap>outstanding at </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">average </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">average </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=right nowrap>exercisable at </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">average </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Range of exercise </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">December 31 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">remaining </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">exercise </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=right nowrap>December 31 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">exercise </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>prices </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">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
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">contractual life </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="8%">price
    </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="8%">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="8%">price
    </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>$1.00 to $1.15 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>7,711,801 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>3.11 years </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;1.06 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>5,937,535 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;1.08 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>$1.71 to $2.18 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">1,979,834 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">3.68 years </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="8%">&nbsp;2.17 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">874,169 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="8%">&nbsp;1.91 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>$2.63 to $3.07 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>240,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>1.71 years </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;3.00 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>240,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;3.00 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>$4.03 to $4.49 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">225,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">3.53 years </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="8%">&nbsp;4.11 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">125,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="8%">&nbsp;4.08 </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>$4.50 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>228,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>1.74 years </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>&nbsp;4.50 </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="8%"
    bgColor=#e6efff>228,000 </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>&nbsp;4.50 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="8%">10,384,635 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="8%">3.17
      years </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="8%">&nbsp;1.39 </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%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="8%">7,404,704 </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%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="8%">&nbsp;1.40 </TD>
<TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The following table summarizes
information about share purchase options outstanding at December 31, 2008: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; 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 style="BORDER-BOTTOM: #000000 1px solid" align=center width="30%"
    colSpan=7>Options outstanding </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 style="BORDER-BOTTOM: #000000 1px solid" align=center width="19%"
    colSpan=4>Options exercisable </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=right width="8%">Number </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">Weighted </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">Weighted </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">Number </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">Weighted </TD>
    <TD 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="8%" align=right nowrap>outstanding at </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">average </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">average </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=right nowrap>exercisable at </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">average </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Range of exercise </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">December 31 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">remaining </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">exercise </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=right nowrap>December 31 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">exercise </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>prices </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">2008
    </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="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">contractual life </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="8%">price
    </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="8%">2008
    </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="8%">price
    </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>$1.00 to $1.15 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>6,588,384 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>3.77 years </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;1.03 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>2,948,234 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;1.06 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>$1.71 to $2.18 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">602,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">1.88 years </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="8%">&nbsp;2.17 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">568,699 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="8%">&nbsp;2.17 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>$2.63 to $3.07 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>291,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>2.37 years </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;2.98 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>220,666 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="8%" bgColor=#e6efff>&nbsp;2.95 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>$4.03 to $4.09 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">93,334 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">1.91 years </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="8%">&nbsp;4.05 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">58,400 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="8%">&nbsp;4.05 </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>$4.50 to $5.45 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>243,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>2.71 years </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>&nbsp;4.54 </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="8%"
    bgColor=#e6efff>166,995 </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>&nbsp;4.56 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="8%">7,817,718 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right width="8%">3.52
      years </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="8%">&nbsp;1.33 </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%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="8%">3,962,994 </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%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=right
      width="8%">&nbsp;1.51 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="2%"
    >&nbsp;</TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_34></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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The fair value of the options that
vested during the year is $5,696. The following are the weighted average
assumptions used to estimate the fair value of options during the periods ended:
</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-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="10%">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="10%">2008
    </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%">2007
    </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>Risk free interest rate </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1.9% </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>2.4% </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>4% </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Expected life </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">3.17 years </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">3.52 years </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">4.20 years </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Volatility </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>74% </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>65% </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>68% </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Expected dividends </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">nil </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">nil </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">nil </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><I>d) Share purchase warrants </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>The continuity of share purchase
warrants during the period ended December 31, 2009 is as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <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=left width="8%">&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="8%">Outstanding </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="8%">&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="8%">&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="8%">&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="8%">Outstanding </TD>
    <TD style="BORDER-TOP: #000000 2px 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=right width="8%">Exercise </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=right nowrap>December 31, </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=right nowrap>December 31 </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;Expiry dates
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">price
    </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="8%">2008
    </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="8%">Issued
    </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="8%">Exercised </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="8%">Expired </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="8%">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 style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>December 17, 2010 </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="8%"
    bgColor=#e6efff>0.85 </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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%"
    bgColor=#e6efff>9,085,715 </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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%"
    bgColor=#e6efff>&#150; </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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%"
    bgColor=#e6efff>9,085,715 </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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%"
    bgColor=#e6efff>&#150; </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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%"
    bgColor=#e6efff>&#150; </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>The continuity of share purchase
warrants during the period ended December 31, 2008 is as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <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=left width="8%">&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="8%">Outstanding </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="8%">&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="8%">&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="8%">&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="8%">Outstanding </TD>
    <TD style="BORDER-TOP: #000000 2px 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=right width="8%">Exercise </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=right nowrap>September 30 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=right nowrap>December 31 </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;Expiry dates
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">price
    </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="8%">2007
    </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="8%">Issued
    </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="8%">Exercised </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="8%">Expired </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="8%">2008
    </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>December 17, 2010 </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="8%"
    bgColor=#e6efff>0.85 </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="8%"
    bgColor=#e6efff>&#150; </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="8%"
    bgColor=#e6efff>9,085,715 </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="8%"
    bgColor=#e6efff>&#150; </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="8%"
    bgColor=#e6efff>&#150; </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="8%"
    bgColor=#e6efff>9,085,715 </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 2px solid" align=left>February 22, 2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%">3.48
    </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%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="8%">120,000 </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%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%">&#150; </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%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%">&#150; </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%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="8%">120,000 </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%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%">&#150; </TD>
<TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><I>e) Earnings per share </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>The following table sets forth the
computation of diluted earnings per share: </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 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="10%"><B>2009</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="10%"><B>2008</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="10%"><B>2007</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid; 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="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Earnings available to common shareholders    </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>$</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>&nbsp;10,561 </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>$</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>&nbsp;3,510 </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>$</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>&nbsp;48,262 </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Effect of assumed conversions: </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Accretion on convertible
      debenture/bonds </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>&#150; </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="10%" align=right valign="bottom" bgColor=#e6efff>&#150; </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="10%" align=right valign="bottom" bgColor=#e6efff>1,608 </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;Interest on convertible bonds </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">&#150; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">&#150; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">2,368 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Royalty payments to GRLP (note
      20(b)) </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>130 </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="10%" align=right valign="bottom" bgColor=#e6efff>&#150; </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="10%" align=right valign="bottom" bgColor=#e6efff>&#150; </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp;Tax
      effect on interest on convertible bonds </TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(45</TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >) </TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&#150; </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="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(820</TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF">Earnings available to common shareholders
    including assumed conversions: </TD>
    <TD width="1%" align=left valign="bottom" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgcolor="#E6EFFF">10,646 </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="10%" align=right valign="bottom" bgcolor="#E6EFFF">3,510 </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="10%" align=right valign="bottom" bgcolor="#E6EFFF">51,418 </TD>
    <TD width="2%" align=left valign="bottom" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" >&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 width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>173,170 </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="10%" align=right valign="bottom" bgColor=#e6efff>142,062 </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="10%" align=right valign="bottom" bgColor=#e6efff>129,218 </TD>
    <TD width="2%" align=left valign="bottom"  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 width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;Stock options </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>3,244 </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="10%" align=right valign="bottom" bgColor=#e6efff>5,142 </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="10%" align=right valign="bottom" bgColor=#e6efff>1,438 </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp;Warrants </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">&#150; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">7,060 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">2 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;Potential shares issued in settlement
      of GRLP Royalty </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>1,757 </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="10%" align=right valign="bottom" bgColor=#e6efff>&#150; </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="10%" align=right valign="bottom" bgColor=#e6efff>&#150; </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp;Tracking preferred shares </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">2,664 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">2,664 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">2,664 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp;Convertible debenture/bonds </TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" 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 width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" 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 width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">8,956 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" >&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 width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>180,835 </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="10%" align=right valign="bottom" bgColor=#e6efff>156,928 </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="10%" align=right valign="bottom" bgColor=#e6efff>142,278 </TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left><B>Earnings per share</B> </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;Basic </TD>
    <TD width="1%" align=left valign="bottom" >$</TD>
    <TD width="10%" align=right valign="bottom">&nbsp;0.06 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >$</TD>
    <TD width="10%" align=right valign="bottom">&nbsp;0.02 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >$</TD>
    <TD width="10%" align=right valign="bottom">&nbsp;0.37 </TD>
    <TD width="2%" align=left valign="bottom" >&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 width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">$</TD>
    <TD width="10%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;0.06 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">$</TD>
    <TD width="10%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;0.02 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">$</TD>
    <TD width="10%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;0.36 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD></TR></TABLE>
<BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_35></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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The following table lists the stock
options and shares issuable under convertible debentures excluded from the
computation of diluted earnings per share because their inclusion would have
been anti-dilutive for the periods presented (in thousands): </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 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="10%">2009 </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="10%">2008 </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="10%">2007 </TD>
    <TD style="BORDER-TOP: #000000 2px solid; 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="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Stock options </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>7,141 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>2,626 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>3,302 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Shares issuable
      under convertible bonds </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">&#150; </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%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">8,956
    </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%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">3,308
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" 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 align=left><B>19.</B> </TD>
    <TD align=left width="95%"><B>DERIVATIVE FINANCIAL INSTRUMENTS</B>
  </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" 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 during
the year. Contracts outstanding at December 31, 2009 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 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="1%">&nbsp;</TD>
    <TD width="10%" align=right nowrap style="BORDER-TOP: #000000 2px solid"><B><FONT
      color=#333333>Floor Price</FONT></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 width="10%" align=right nowrap style="BORDER-TOP: #000000 2px solid"><B><FONT
      color=#333333>Cap Price</FONT></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=right width="10%"><B><FONT
      color=#333333>Purchased metric</FONT></B> </TD>
    <TD style="BORDER-TOP: #000000 2px 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><B><FONT
      color=#333333>Contract Period</FONT></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="10%"><B><FONT color=#333333>US$/lb</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B><FONT color=#333333>US$/lb</FONT></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="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B><FONT color=#333333>tonnes (mt) of copper</FONT></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>May <FONT color=#333333>to December 2009
      *</FONT> </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;1.88 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;2.36 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><FONT
      color=#333333>1,700</FONT> </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>January <FONT color=#333333>to February 2010</FONT> </TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="10%">&nbsp;2.00 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="10%">&nbsp;2.51 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%"><FONT color=#333333>3,000</FONT> </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>February 2010 <FONT color=#333333>to March
      2010</FONT> </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;2.00 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;2.61 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><FONT
      color=#333333>1,500</FONT> </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>April to May 2010 </TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="10%">&nbsp;2.15 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="10%">&nbsp;2.73 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%"><FONT color=#333333>3,000</FONT> </TD>
    <TD 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>June to December 2010 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;2.50 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;3.95 </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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff><FONT color=#333333>10,500</FONT> </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>* Contract matured at December 31, 2009
and was paid in January, 2010. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Under the terms of the contract, 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>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 year ended December 31, 2009, the Company recorded a mark-to-market loss of
$27,105 of which $11,330 (paid or accrued) was realized during the year ended
December 31, 2009.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_36></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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The fair value of contracts outstanding
at December 31, 2009 is as follows: </P>

<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="90%" border=0 align="center">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 2px solid" align=left
      bgColor=#ffffff><B>Option</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD width="15%" align=right nowrap
    bgColor=#ffffff style="BORDER-TOP: #000000 2px solid"><B>Strike Price</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD width="15%" align=right nowrap
    bgColor=#ffffff style="BORDER-TOP: #000000 2px solid"><B>Notional Quantity</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD width="15%" align=right nowrap
    bgColor=#ffffff style="BORDER-TOP: #000000 2px solid"><B>Due Date</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=right width="15%"
    bgColor=#ffffff><B>Fair Value</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#ffffff><B>US$/lb</B> </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#ffffff><B>mt of copper</B> </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="15%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD width="15%" align=right nowrap bgColor=#ffffff><B>(Liability)/Asset</B> </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="15%"
    bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="15%"
    bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="15%"
    bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#ffffff><B>US$</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Call option </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;2.36 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff>1,700 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff>Dec 31, 2009 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;(3,006</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Call option </TD>
    <TD align=left width="1%" bgColor=#ffffff>$</TD>
    <TD align=right width="15%" bgColor=#ffffff>&nbsp;2.51 </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#ffffff>3,000 </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#ffffff>Feb 26, 2010 </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#ffffff>(5,452</TD>
    <TD align=left width="2%" bgColor=#ffffff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Call option </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;2.61 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff>1,500 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff>Mar 31, 2010 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff>(2,425</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Call option </TD>
    <TD align=left width="1%" bgColor=#ffffff>$</TD>
    <TD align=right width="15%" bgColor=#ffffff>&nbsp;2.73 </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#ffffff>3,000 </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#ffffff>May 31, 2010 </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#ffffff>(4,361</TD>
    <TD align=left width="2%" bgColor=#ffffff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Call option </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>&nbsp;3.95 </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="15%"
    bgColor=#e6efff>10,500 </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="15%"
    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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>(4,606</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="15%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="15%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="15%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>$</TD>
    <TD align=right width="15%" bgColor=#ffffff>&nbsp;(19,850</TD>
    <TD align=left width="2%" bgColor=#ffffff>) </TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="15%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="15%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="15%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="15%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Put option </TD>
    <TD align=left width="1%" bgColor=#ffffff>$</TD>
    <TD align=right width="15%" bgColor=#ffffff>&nbsp;1.88 </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#ffffff>1,700 </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#ffffff>Dec 31, 2009 </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>$</TD>
    <TD align=right width="15%" bgColor=#ffffff>&nbsp;&#150; </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Put option </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;2.00 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff>3,000 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff>Feb 26, 2010 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Put option </TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="15%">&nbsp;2.00 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="15%">1,500 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="15%">Mar 31, 2010 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="15%">&#150; </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Put option </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;2.15 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff>3,000 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff>May 31, 2010 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="15%" bgColor=#e6efff>33 </TD>
    <TD align=left 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=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%">&nbsp;2.50 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%">10,500 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%">Dec
      31, 2010 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%">1,801    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="15%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="15%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="15%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;1,834 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
    <TD align=right width="37%" bgColor=#e6efff colSpan=8>Total Fair Value of
      Contracts (in USD) </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;(18,016</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="37%"
    colSpan=8>Total Fair Value of Contracts (in CAD) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="15%">&nbsp;(18,935</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The following table reconciles the
Company&#146;s derivative financial instruments measured at fair value from January
1, 2009 to December 31, 2009: </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 2px solid"
      align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%">&nbsp;</TD>
    <TD width="12%"
    align=center nowrap style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"><STRONG>Fair value measurements</STRONG> </TD>
    <TD style="BORDER-TOP: #000000 2px solid; 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, 2008 </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD
      align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases
    </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">- </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Settlements </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>8,170 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp;
      &nbsp;Loss included in net income </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">(27,105</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">)
</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;18,935 </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>Losses on derivative financial
instruments of $27,105 are presented in the statement of operations. Of this
amount, $15,775 is classified as unrealized losses attributable to instruments
that were held at December 31, 2009.</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><B>20.</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="95%"><B>ROYALTY OBLIGATIONS</B> </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 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%">&nbsp;</TD>
    <TD width="15%"
    align=right nowrap style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2009</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%">&nbsp;</TD>
    <TD width="15%"
    align=right nowrap style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2008</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 width="5%">&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Royalty Agreement &#150; Red Mile No. 2 LP </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;62,318 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="15%" bgColor=#e6efff>&nbsp;64,357 </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>Royalty Offering &#150;
      Gibraltar Royalty LP </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%">6,511    </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%">&#150; </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>Total royalty obligations </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>&nbsp;68,829 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%"
    bgColor=#e6efff>&nbsp;64,357 </TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><I>(a) Royalty Agreement &#150; Red Mile No.
2 LP (promissory note and royalty obligation) </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>In September 2004, the Company entered
into agreements with an unrelated investment partnership, Red Mile Resources No.
2 Limited Partnership ("Red Mile"). Gibraltar sold to Red Mile a royalty for
$67,357 cash. These funds were subsequently invested in a promissory note with a trust company and the Company
pledged the promissory note along with interest earned and to be earned thereon
for a total of $70,200 to secure its royalty obligations under the
agreements.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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 vAlign=top>
    <TD align=left><B>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>At December 31, 2009, the promissory
note amounted to $78,097 (2008 &#150; $77,068), of which $4,697 (2008 &#150; $3,384) is
current, while the royalty obligation amounted to $62,318 (2008 &#150; $64,357) of
which $4,697 (2008 &#150; $3,384) is current. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Pursuant to the agreements, the Company
received an aggregate of $10,500 in fees and interest for services performed in
relation to the Red Mile transaction, of which $5,250 was received in each of
September and December of 2004, and included in interest and other income. The
amount of $5,250 received in September 2004 included $1,750 for indemnifying an
affiliate of Red Mile from any claims relating to a breach by Gibraltar under
the royalty agreement. The funds received in respect of the indemnification are
presented as deferred revenue, and are recognized over the expected remaining
life of the royalty agreement, with $831 (2008 &#150; $1,006) remaining as deferred
as at December 31, 2009, of which $175 (2008 &#150; $175) is classified as current.</P>
<P style="MARGIN-LEFT: 5%" align=justify>Annual royalties are payable by Gibraltar to Red Mile at rates ranging from
  $0.01 per pound to $0.14 per pound of copper produced during the period from the
  commencement of commercial production (as defined in the agreement) to the later
  of (i) December 2014 and (ii) five years after the end of commercial production
  from the mine. For the year ended December 31, 2009, Gibraltar paid a royalty to
  Red Mile $4,697 (2008 &#150; $3,384) at an average rate of $0.0686 (2008 &#150; $0.0573)
  per pound of copper produced. Gibraltar is entitled to have released to it funds
  held under the promissory note and interest thereon to fund its royalty
  obligations to the extent of its royalty payment obligations.</P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company has a pre-emptive option to
effectively purchase ("call") the royalty interest by acquiring the Red Mile
partnership units at a future date in consideration of a payment which is (i)
approximately equal to the funds received by the Company less royalty payments
to date, or (ii) fair value, whichever is lower. Under certain circumstances,
the investors in Red Mile also have a right to sell ("put") their Red Mile
partnership units to the Company at fair value; however, such right is subject
to the Company's pre-emptive right to exercise the "call" in advance of any
"put" being exercised and completed. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company has granted to Red Mile a
net profits interest ("NPI"), which survives any "put" or "call" of the Red Mile
units. The NPI is applicable for the years 2011 to 2014 and is 2% if the price
of copper averages US$2.50 to US$2.74 per pound, 3% if the price of copper
averages US$2.75 to US$2.99 per pound and 4% if the price of copper averages
US$3.00 per pound or greater for any year during that period. The US-dollar
pricing amounts specified above are based upon an exchange rate of US$0.75 for
Cdn$1.00, and shall be adjusted from time to time by any variation of such
exchange rates. No NPI is payable until the Company reaches a pre-determined
aggregate level of revenues less defined operating costs and expenditures. No
NPI is payable at December 31, 2009 and 2008. </P>
<P style="MARGIN-LEFT: 5%" align=justify>In accordance with AcG15, the Company
has determined that the royalty agreement created certain variable interest
entities for which the Company holds a variable interest. However, as the
Company is not the primary beneficiary under the agreement, it is not required
to consolidate any of such entities. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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 vAlign=top>
    <TD align=left><B>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><I>(b) Royalty Offering &#150; Gibraltar
Royalty LP </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>During the year, 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>
<P style="MARGIN-LEFT: 5%" align=justify>Annual royalties are 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;). For the year ended December 31, 2009, Gibraltar paid
$130 to GRLP. These royalty payments are recognized as an expense during the
year. </P>
<P style="MARGIN-LEFT: 5%" 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 has 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 which is
equal to the funds received by the Company plus a 20% premium payable in the
Company&#146;s shares or cash. GRLP also has 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 &#147;put&#148; right is subject to the Company's
preemptive right to exercise the "call" in advance of any "put" being exercised
and completed. Subsequent to year end on March 24, 2010, the Company exercised
its &#147;call&#148; option through the issuance 1,556,355 shares of the Company. </P>
<P style="MARGIN-LEFT: 5%" align=justify>In accordance with AcG-15,
<I>Consolidation of Variable Interest Entities</I>, the Company has determined
that the royalty agreement created certain variable interest entities for which
the Company holds a variable interest. However, as the Company is not the
primary beneficiary under the agreement, 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>

  <TR vAlign=top>
    <TD align=left ><B>21.</B> </TD>
    <TD align=left width="95%"><B>INCOME TAXES</B> </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Income tax expense (recovery) differs
from the amount which would result from applying the statutory Canadian income
tax rates (2009 &#150; 30.0%, 2008 &#150; 31.4%, 2007 &#150; 34.1%) for the following reasons:
</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 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="10%">2009 </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="10%">2008 </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="10%">2007 </TD>
    <TD style="BORDER-TOP: #000000 2px solid; 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="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Earnings (loss) before income taxes </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;11,255 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;(2,087</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </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="10%"
    bgColor=#e6efff>&nbsp;87,866 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" 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="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Expected tax expense based on statutory
      rates </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>3,376 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(657</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>29,980 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Permanent differences </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">1,141 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">6,790 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">3,119 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Mineral tax </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>981 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>606 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Future tax rate differences </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(3,674</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">1,215 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">8,289 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Recognition of previously unrecognized tax
      assets </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(13,613</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(324</TD>
    <TD 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>Other </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%">(1,130</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </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%">62
</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%">(1,460</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>Tax expense (recovery) for the year </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="10%"
    bgColor=#e6efff>&nbsp;694 </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;(5,597</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;39,604 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" 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="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Presented as: </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" 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; &nbsp; &nbsp;Current income tax expense (recovery)
    </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="10%">&nbsp;669 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="10%">&nbsp;(2,151</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="10%">&nbsp;3,959 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Future income tax expense (recovery)
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>25 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(3,446</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>35,645 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%">&nbsp;694 </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%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%">&nbsp;(5,597</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%">&nbsp;39,604 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_39></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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>As at December 31, 2009 and December
31, 2008, the estimated tax effect of the significant components within the
Company&#146;s future tax assets were 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 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="12%">2009 </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="12%">2008 </TD>
    <TD style="BORDER-TOP: #000000 2px solid; 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>Loss carry forwards </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;8,985 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;5,260 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Royalty obligation </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">16,343 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">17,966 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>BC mining taxes </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1,952 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>3,867 </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>Copper hedge and
      other tax pools </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%">6,210
    </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%">230
    </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>Future income tax assets </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>33,490 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>27,323 </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="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>Partnership deferral </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(5,820</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(6,944</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Reclamation obligation </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(4,800</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(7,690</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Plant and equipment </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(20,323</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(16,784</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Mineral properties and deferred stripping </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(19,436</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(21,332</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Unrealized foreign exchange loss (gain) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(751</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>503 </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>Unrealized loss
      (gain) recorded in comprehensive 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="12%">(654</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </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%">1,125
    </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><B>Net future income tax liability</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;(18,294</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;(23,799</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Current portion &#150; future income tax
      liability </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;(1,979</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;(8,469</TD>
    <TD 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>Long term future
      income tax liability </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%">(16,315</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </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%">(15,330</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>Net future income tax liability</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff><B>&nbsp;(18,294</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff><B>&nbsp;(23,799</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff><B>)</B> </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>At December 31, 2009 the Company&#146;s tax
attributes included capital losses totaling $3,525 (2008 &#150; $1,406) which are
available indefinitely to offset future taxable capital gains, and resource tax
pools totaling approximately $2,022 (2008 &#150; $7,102) which are available
indefinitely to offset future taxable income. The Company also has non-capital
losses of $40,981 (2008 &#150;$18,277) to offset future taxable income which expire
in 2028 and 2029 respectively. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company has accrued a long-term tax
provision of $32,299 (2008 &#150; $30,685) related to various tax pools. </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 ><B>22.</B> </TD>
    <TD align=left width="95%"><B>SUPPLEMENTARY CASH FLOW DISCLOSURES</B>
  </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>In addition to the non-cash operating,
financing and investing activities primarily disclosed, the Company&#146;s non-cash
operating, financing and investing activities were as follows: </P>
<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 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="10%" align=right nowrap style="BORDER-TOP: #000000 2px solid">December
      31 </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 width="10%" align=right nowrap style="BORDER-TOP: #000000 2px solid">December
      31 </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
      width="10%" align=right nowrap style="BORDER-TOP: #000000 2px solid">September 30 </TD>
    <TD style="BORDER-TOP: #000000 2px 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="10%">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="10%">2008
    </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%">2007
    </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>Acquisition of assets under capital lease
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;765 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;17,484 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Conversion of convertible debenture (note 14(b)) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">21,318 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Decrease in asset retirement costs included
      in mineral <BR>&nbsp;&nbsp;&nbsp;&nbsp; properties, plant and equipment
      (note 15) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><BR>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><BR>1,426 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><BR>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Shares and units issued for the purchase of mineral
      <BR>&nbsp;&nbsp;&nbsp;&nbsp; property interests (note 9 (e) &amp; (f)) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><BR>&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><BR>5,220 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><BR>3,805 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Shares issued for finders fee </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>360 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>&#150; </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>Fair value of
      stock options transferred to share capital <BR>&nbsp;&nbsp;&nbsp;&nbsp;
      from contributed surplus on exercise of options </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%"><BR>2,108 </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%"><BR>514 </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%"><BR>1,786 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
  <TD width="2%"  bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left><B>Supplemental cash flow information</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Cash paid during the year for </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" 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; &nbsp;Interest </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="10%">&nbsp;4,461 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="10%">&nbsp;2,844 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="10%">&nbsp;2,138 </TD>
    <TD 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>&nbsp; &nbsp;Taxes </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;98 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;315 </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="10%"
    bgColor=#e6efff>&nbsp;63 </TD>
<TD style="BORDER-BOTTOM: #000000 2px solid" 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>
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<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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, 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 align=left ><B>23.</B> </TD>
    <TD align=left width="95%"><B>COMMITMENTS</B> </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><I>(a) Advances for equipment </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>As at December 31, 2009, the Company
paid $3,241 in advance deposits for equipment to be received in next periods, of
which $1,119 has been classified as current. The Company is further committed to
equipment purchases in relation to its expansion activities in the amount of
$23,122. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(b) Treatment and refining agreement
</I></P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company commenced its six-year
agreement with MRI Trading AG (&#147;MRI&#148;), a Swiss-based metal trading company, for
the treatment and refining of Gibraltar copper concentrate during the period.
Under the terms of the agreement, the Company has secured long-term and fixed
rates for processing approximately 1.1 million tons of copper concentrate until
December 31, 2014. The Company 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>
<P style="MARGIN-LEFT: 5%" align=justify><I>(c) Joint Venture Agreement</I> </P>
<P style="MARGIN-LEFT: 5%" align=justify>In November 2009, the Company announced
that it has signed a letter of intent with Sojitz Corporation ("Sojitz") to
establish a joint venture over the Company's Gibraltar Copper Mine in which the
Company and Sojitz will hold a 75% and 25% interest respectively. Sojitz will
pay approximately $179,500 to the Company for its 25% interest. The Company will
continue to be the operator of Gibraltar Copper Mine. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Subsequent to year end on March 18,
2010, the Company announced that the definitive agreements with Sojitz were
executed. The joint venture partners will be Gibraltar Mines Ltd. (75%) and
Cariboo Copper Corp. (25%) jointly owned by Sojitz Corporation (50%), Dowa
Metals &amp; Mining Co., Ltd. (25%) and Furukawa Co., Ltd. (25%).</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 ><B>24.</B> </TD>
    <TD align=left width="95%"><B>SUBSEQUENT EVENTS</B> </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Aside from subsequent events as
disclosed at note 7, 9(b), 12, 17, 20(b) and 23(c), the following subsequent
events occurred in the period from December 31, 2009 to March 31, 2010: </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(a) Options grant </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>Subsequent to year end, the Company
granted 3,448,500 options. The options were granted with an exercise price
ranging from $4.46 to $5.00 per option expiring 5 years after grant. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>(b) Options exercised </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>Subsequent to year end, 1,470,167
options were exercised for proceeds of $1,826. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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 vAlign=top>
    <TD align=left><B>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, 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 align=left ><B>25.</B> </TD>
    <TD align=left width="95%"><B>DIFFERENCES BETWEEN CANADIAN</B> <B>AND</B>
      <B>UNITED</B> <B>STATES</B> <B>GENERALLY</B> <B>ACCEPTED ACCOUNTING
PRINCIPLES</B> </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Taseko prepares its consolidated
financial statements in accordance with Canadian generally accepted accounting
principles (&#147;Canadian GAAP&#148;), which principles differ in certain respects from
those applicable in the United States (&#147;US GAAP&#148;) and from practices prescribed
by the United States Securities and Exchange Commission (&#147;SEC&#148;). Had the Company
followed US GAAP, certain items on the consolidated statements of operations and
comprehensive income (loss) and balance sheets would have been reported 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 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="10%">Year
      ended </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 width="10%" align=right nowrap style="BORDER-TOP: #000000 2px solid">15
      months ended </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="10%">Year
      ended </TD>
    <TD style="BORDER-TOP: #000000 2px 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="10%" align=right nowrap>December 31 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">December 31 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap>September 30 </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>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="10%">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="10%">2008    </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%">2007    </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="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Earnings for the period under Canadian GAAP    </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>&nbsp;10,561 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>&nbsp;3,510 </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;48,262 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Adjustments under US GAAP </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%">&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="10%">&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="10%">&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; &nbsp;Interest accretion on
      convertible debt (a) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>(898</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="10%" bgColor=#e6efff>2,938 </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="10%" bgColor=#e6efff>2,922 </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; &nbsp;Amortization of deferred financing costs (a)    </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">(312</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">(580</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">(468</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;&nbsp; Foreign exchange gain (loss)
      on convertible debt  (a) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>2,977 </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="10%" bgColor=#e6efff>(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="10%" bgColor=#e6efff>330 </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; &nbsp;Amortization of property, plant and equipment
      (b) </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%">(44</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Asset retirement obligation
      change of estimate (b) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" 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="10%" 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="10%" bgColor=#e6efff>(4,538</TD>
  <TD 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; &nbsp;Reduction of gain
      on convertible bond repurchase (a) </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%">(3,707</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="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></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="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 width="5%" >&nbsp;</TD>
    <TD align=left>Earnings for the
      period under US GAAP </TD>
    <TD vAlign=bottom align=left
    width="1%" >$</TD>
    <TD vAlign=bottom align=right
    width="10%">&nbsp;8,621</TD>
    <TD vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left
    width="1%" >$</TD>
    <TD vAlign=bottom align=right
    width="10%">&nbsp;5,505 </TD>
    <TD vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left
    width="1%" >$</TD>
    <TD vAlign=bottom align=right
    width="10%">&nbsp;46,464 </TD>
    <TD vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="1%" vAlign=bottom bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD width="10%" vAlign=bottom bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="2%" vAlign=bottom bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD width="1%" vAlign=bottom bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD width="10%" vAlign=bottom bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="2%" vAlign=bottom bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD width="1%" vAlign=bottom bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD width="10%" vAlign=bottom bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="2%" vAlign=bottom bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Other comprehensive income (loss) under Canadian and US GAAP - no differences</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%">&nbsp;11,256 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%">&nbsp;(9,018</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%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%">&nbsp;2,338 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left>Total
      comprehensive income (loss) under US GAAP </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="10%">&nbsp;19,877 </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%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="10%">&nbsp;(3,513</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="10%">&nbsp;48,802 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" 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="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 width="5%" >&nbsp;</TD>
    <TD align=left>Earnings per Share </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%">&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="10%">&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="10%">&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="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 width="5%" >&nbsp;</TD>
    <TD align=left>Earnings per share for the period under US GAAP </TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;0.05 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;0.04 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;0.36 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left
      bgColor=#e6efff>Diluted earnings per share for the period under US GAAP</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>&nbsp;0.05 </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>&nbsp;0.04 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>&nbsp;0.33 </TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom 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>
<!--$$/page=--><A name=page_42></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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, 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 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%">As at</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%">As at</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Consolidated Balance Sheets </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap>December 31, </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap>December 31, </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="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%">2008    </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>Total assets under Canadian GAAP </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;535,095</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;478,245</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Adjustments under US GAAP </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 style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; &nbsp;Deferred financing costs </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="12%" 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="12%" bgColor=#e6efff>312 </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>Total assets
      under US GAAP </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;535,095 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%">&nbsp;478,557 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" 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></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Total liabilities under Canadian GAAP </TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;238,402 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;243,338 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <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="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>&nbsp;</TD>
    <TD vAlign=bottom align=left 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 style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp;
      &nbsp;Convertible debenture presented as debt (a) </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%">1,321 </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>Total liabilities under US GAAP </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;238,402 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;244,659 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" 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></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Total shareholders' equity under Canadian
      GAAP </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;296,693</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;234,907</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Adjustments under US GAAP </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; &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="12%" bgColor=#e6efff>1,628</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>(3,896</TD>
  <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)  </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp; &nbsp;Deferred financing costs presented as asset (a)</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">
    312</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%">892</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;
      &nbsp;Current year income statement adjustments under US GAAP </TD>
    <TD
    width="1%" align=left vAlign=bottom bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD
    width="12%" align=right vAlign=bottom bgcolor="#E6EFFF">(1,940</TD>
    <TD
    width="2%" align=left vAlign=bottom bgcolor="#E6EFFF" >) </TD>
    <TD
    width="1%" align=left vAlign=bottom bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD
    width="12%" align=right vAlign=bottom bgcolor="#E6EFFF">1,995 </TD>
    <TD
    width="2%" align=left vAlign=bottom bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
    <TD width="1%" vAlign=bottom style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" vAlign=bottom style="BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
    <TD width="2%" vAlign=bottom style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" vAlign=bottom style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" vAlign=bottom style="BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
    <TD width="2%" vAlign=bottom style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 3px double">Total
      shareholders' equity under US GAAP </TD>
    <TD
    width="1%" align=left vAlign=bottom bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 3px double" >$</TD>
    <TD
    width="12%" align=right vAlign=bottom bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 3px double">&nbsp;296,693 </TD>
    <TD
    width="2%" align=left vAlign=bottom bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 3px double" >&nbsp;</TD>
    <TD
    width="1%" align=left vAlign=bottom bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 3px double" >$</TD>
    <TD
    width="12%" align=right vAlign=bottom bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 3px double">&nbsp;233,898 </TD>
<TD
    width="2%" align=left vAlign=bottom bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 3px double" >&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>There are no material differences
between Canadian GAAP and US GAAP to total operating, investing or financing
cash flows in the consolidated statements of cash flows. </P>
<P style="MARGIN-LEFT: 0%"
align=justify><B>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Convertible debt </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Pursuant to Canadian GAAP, the
convertible instruments disclosed in note 14 of the consolidated financial
statements require the bifurcation of its 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>
<P style="MARGIN-LEFT: 5%" 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>
<P style="MARGIN-LEFT: 5%" 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>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_43></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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Since the US$30,000 Convertible Bond&#146;s
(the &#147;Bonds&#148;) (note 14(a)) 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>
<P style="MARGIN-LEFT: 5%" 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 ("Issuance Date"). </P>
<P style="MARGIN-LEFT: 5%" align=justify>Accordingly, the following cumulative adjustments were recorded as at the Effective Date for US GAAP purposes:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>
    <P style="MARGIN-LEFT:5%">the fair value of the conversion feature in the
  amount of $21 was bifurcated from the Bonds and reflected as a derivative liability;</P>
  </LI>
  <LI>
    <P style="MARGIN-LEFT:5%">a net $1,649 decrease to the Bonds to reflect the reduced carrying value of the Bonds under US GAAP; and</P>
  </LI>
  <LI>
    <P style="MARGIN-LEFT:5%">a cumulative adjustment to reduce opening deficit by $1,628.</P>
  </LI>

</UL>
<P style="MARGIN-LEFT: 5%" align=justify>During the year ended December 31,
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>
<P style="MARGIN-LEFT: 5%" align=justify>For US GAAP purposes, the Company reversed $2,217 of the total gain on settlement of the Bonds and the derivative liability related to the conversion feature. In addition, the Company recognized a foreign exchange gain of $2,977 on the repurchase of the Bonds under US GAAP.</P>
<P style="MARGIN-LEFT: 5%" align=justify>Accretion expense of $1,260 (2008 &#150; $2,938, 2007 &#150; $2,922) recorded under Canadian GAAP has been reversed for US GAAP purposes. This reversal was offset by the additional $3,648 in accretion expense recognized during the year under US GAAP resulting in a net adjustment to interest accretion on convertible debt of $2,388.</P>
<P style="MARGIN-LEFT: 5%" 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 $312 was recorded for the year under US GAAP (2008 &#150; $580,
2007 &#150; $468). </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 vAlign=top>
    <TD align=left><B>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, 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>(b)</B> </TD>
    <TD>
      <P align=justify><B>Site closure and reclamation costs</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>During the year ended September 30, 2007, the Company
      extended the life of the Gibraltar mine resulting in a revision to the
      timing of the expected reclamation activities and ultimately in a
      reduction of the site closure and reclamation cost liability. For Canadian
      GAAP purposes, an income inclusion of $4,570 was recognized as a result of
      this change in estimate as the decrease in the site closure and
      reclamation cost liability exceeded the carrying value of the associated
      asset included in property, plant and equipment. For US GAAP purposes,
      an amortization of $44 was recorded prior to the mine life extension and
      the remaining unamortized balance of the asset included in the property,
      plant and equipment, being $4,538, was reduced to $Nil as a result of the
      reduction of the site closure and reclamation cost liability.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>(c)</B> </TD>
    <TD>
      <P align=justify><B>Impact of recently adopted United States 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%">(i) </TD>
    <TD>
      <P align=justify>On July 1, 2009, the Financial Accounting Standards
      Board&#146;s (FASB) codification of US GAAP was launched as the sole source of
      authoritative non-governmental US GAAP. The Accounting Standards
      Codification (&#147;ASC&#148;) is not intended to change US GAAP, but rather
      reorganize existing guidance by accounting topic to allow easier
    identification of applicable standards. </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%">(ii) </TD>
    <TD>
      <P align=justify>In December 2007, FASB amended the principles and
      requirements for how an acquirer recognizes and measures in its financial
      statements the identifiable assets acquired, the liabilities assumed, any
      non-controlling interest in the acquiree and the goodwill acquired. The
      new standard expanded the definition of a business and a business
      combination; requires recognition of assets acquired, liabilities assumed,
      and contingent consideration at their fair value on the acquisition date;
      requires acquisition-related expenses and restructuring costs to be
      recognized separately from the business combination and expensed as
      incurred; requires in-process research and development to be capitalized
      at fair value as an intangible asset; and requires that changes in
      accounting for deferred tax asset valuation allowances and acquired income
      tax uncertainties after the measurement period be recognized as a
      component of provision for taxes. The new standard also establishes
      disclosure requirements to enable the evaluation of the nature and
      financial effects of the business combination. This new standard is
      effective for the Company&#146;s 2009 fiscal year. Upon adoption, the new
      standard did not have a material effect on the Company&#146;s consolidated
      financial statements since the Company did not have any business
      combinations during the fiscal year ended December 31, 2009.</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%">(iii) </TD>
    <TD>
      <P align=justify>In December 2007, FASB issued a new accounting and
      reporting standard for the non- controlling interest in a subsidiary and
      for the deconsolidation of a subsidiary. The new standard establishes
      disclosure requirements that clearly identify and distinguish between the
      controlling and non-controlling interests and requires the separate
      disclosure of income attributable to controlling and non-controlling
      interests. This new standard is effective for the Company&#146;s 2009 fiscal
      year. Upon adoption, the new standard did not have a material effect on
      the Company&#146;s consolidated financial statements since the Company did not
      have any non-controlling interest in its subsidiaries during
    the fiscal year ended December 31, 2009.</P></TD></TR></TABLE>
<BR>
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<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>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, 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%">(iv) </TD>
    <TD>
      <P align=justify>In March 2008, the FASB changed the disclosure
      requirements for derivative instruments and hedging activities by
      requiring enhanced disclosures about how and why an entity uses
      derivatives instruments and how derivative instruments and related hedged
      items affect an entity&#146;s operating results, financial position, and cash
      flows. This new standard is effective for the Company&#146;s 2009 fiscal year.
      To the extent the required information was not previously disclosed in the
      fiscal 2008 consolidated financial statements, the Company incorporated
      the new disclosures in note 19.</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%">(v) </TD>
    <TD>
      <P align=justify>In June 2008, the FASB provided guidance in assessing
      whether an equity-linked financial instrument (or embedded feature) is
      indexed to an entity's own stock for purposes of determining whether the
      equity-linked financial instrument (or embedded feature) should be
      accounted for as a derivative instrument separated from the host contract.
      This new standard is effective for the Company&#146;s 2009 fiscal year. The
      Company adopted this standard and the adjustments are disclosed in note
      25(a) above.</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 align=left ><B>(d)</B> </TD>
    <TD align=left width="95%"><B>United States accounting pronouncements to
      be adopted</B> </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, with early adoption permitted. 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. The Company is currently reviewing
      the provisions of this standard but does not expect the adoption to have a
      material effect on its consolidated results of operations, cash flows or
  financial position.</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%"><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 our
      financial reporting requirements is limited to the new VIE
    disclosures.</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>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></TD></TR></TABLE>
<BR>
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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 vAlign=top>
    <TD align=left><B>TASEKO MINES LIMITED</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD align=left>For the year ended December 31, 2009, fifteen months ended
      December 31, 2008 and year ended September 30, 2007 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Expressed in
      thousands of Canadian dollars, unless stated otherwise)
</TD></TR></TABLE>
<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. Early adoption is prohibited. The Company is currently
  reviewing the provisions of this standard but does not expect the adoption to
  have a material effect on its consolidated results of operations, cash flows or
  financial position. </P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.7
<SEQUENCE>8
<FILENAME>exhibit99-7.htm
<DESCRIPTION>MANAGEMENT'S DISCUSSION AND ANALYSIS
<TEXT>
<HTML>
<HEAD>
   <TITLE>Taseko Mines Limited: Exhibit 99.7 - Filed by newsfilecorp.com</TITLE>
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<BODY style="font-size:10pt;">

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<br>
<TABLE
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cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD align=center><IMG src="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</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>&nbsp; <A
href="#page_2"></A></TD>
    <TD width="5%" align=right bgColor=#eeeeee><A href="#page_2">2 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A href="#page_3">1.2 </A></TD>
    <TD colspan="2" align=left><A href="#page_3">Overview </A>&nbsp; <A href="#page_3"></A></TD>
    <TD align=right><A href="#page_3">3 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; <A href="#page_4"></A></TD>
    <TD width="5%" align=left 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 bgColor=#eeeeee><A href="#page_4">4 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; <A href="#page_7"></A></TD>
    <TD align=left><A href="#page_7">1.2.2 </A></TD>
    <TD align=left><A href="#page_7">Prosperity Project </A></TD>
    <TD align=right><A href="#page_7">7 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; <A href="#page_8"></A></TD>
    <TD align=left bgColor=#eeeeee><A href="#page_8">1.2.3 </A></TD>
    <TD align=left bgColor=#eeeeee><A href="#page_8">Harmony
      Project </A></TD>
    <TD align=right bgColor=#eeeeee><A href="#page_8">8 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; <A href="#page_9"></A></TD>
    <TD align=left><A href="#page_9">1.2.4 </A></TD>
    <TD align=left><A href="#page_9">Aley Project </A></TD>
    <TD align=right><A href="#page_9">9 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; <A href="#page_9"></A></TD>
    <TD align=left bgColor=#eeeeee><A href="#page_9">1.2.5 </A></TD>
    <TD align=left bgColor=#eeeeee><A href="#page_9">Market Trends
      </A></TD>
    <TD align=right bgColor=#eeeeee><A href="#page_9">9 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A href="#page_9">1.3 </A></TD>
    <TD align=left colSpan=2><A href="#page_9">Selected Annual
      Information </A></TD>
    <TD align=right><A href="#page_9">9 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A href="#page_11">1.4 </A></TD>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_11">Summary of Quarterly Results </A></TD>
    <TD align=right bgColor=#eeeeee><A href="#page_11">11
  </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A href="#page_12">1.5 </A></TD>
    <TD align=left colSpan=2><A href="#page_12">Results of
      Operations </A></TD>
    <TD align=right><A href="#page_12">12 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A href="#page_13">1.6 </A></TD>
    <TD colspan="2" align=left bgColor=#eeeeee><A href="#page_13">Liquidity
    </A>&nbsp; <A
    href="#page_13"></A></TD>
    <TD align=right bgColor=#eeeeee><A href="#page_13">13
  </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A href="#page_15">1.7 </A></TD>
    <TD align=left colSpan=2><A href="#page_15">Capital Resources
      </A></TD>
    <TD align=right><A href="#page_15">15 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A href="#page_16">1.8 </A></TD>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_16">Off-Balance Sheet Arrangements </A></TD>
    <TD align=right bgColor=#eeeeee><A href="#page_16">16
  </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A href="#page_16">1.9 </A></TD>
    <TD align=left colSpan=2><A href="#page_16">Transactions with
      Related Parties </A></TD>
    <TD align=right><A href="#page_16">16 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A href="#page_17">1.10 </A></TD>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_17">Fourth Quarter </A></TD>
    <TD align=right bgColor=#eeeeee><A href="#page_17">17
  </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A href="#page_18">1.11 </A></TD>
    <TD align=left colSpan=2><A href="#page_18">Proposed
      Transactions </A></TD>
    <TD align=right><A href="#page_18">18 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A href="#page_21">1.13 </A></TD>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_21">Change in Accounting Policies including Initial Adoption
      </A></TD>
    <TD align=right bgColor=#eeeeee><A href="#page_21">21
  </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A href="#page_27">1.14 </A></TD>
    <TD align=left colSpan=2><A href="#page_27">Financial
      Instruments and Other Instruments </A></TD>
    <TD align=right><A href="#page_27">27 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A href="#page_29">1.15 </A></TD>
    <TD align=left bgColor=#eeeeee colSpan=2><A
      href="#page_29">Other MD&amp;A Requirements </A></TD>
    <TD align=right bgColor=#eeeeee><A href="#page_29">29
  </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; <A href="#page_29"></A></TD>
    <TD align=left><A href="#page_29">1.15.1 </A></TD>
    <TD align=left><A href="#page_29">Additional Disclosure for
      Venture Issuers without Significant Revenue </A></TD>
    <TD align=right><A href="#page_29">29 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; <A href="#page_30"></A></TD>
    <TD align=left bgColor=#eeeeee><A href="#page_30">1.15.2
</A></TD>
    <TD align=left bgColor=#eeeeee><A href="#page_30">Disclosure
      of Outstanding Share Data </A></TD>
    <TD align=right bgColor=#eeeeee><A href="#page_30">30
  </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; <A href="#page_31"></A></TD>
    <TD align=left><A href="#page_31">1.15.3 </A></TD>
    <TD align=left><A href="#page_31">Internal Controls over
      Financial Reporting Procedures </A></TD>
    <TD align=right><A href="#page_31">31 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; <A href="#page_31"></A></TD>
    <TD align=left bgColor=#eeeeee><A href="#page_31">1.15.4
</A></TD>
    <TD align=left bgColor=#eeeeee><A href="#page_31">Disclosure
      Controls and Procedures </A></TD>
    <TD align=right bgColor=#eeeeee><A href="#page_31">31
  </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; <A href="#page_32"></A></TD>
    <TD align=left><A href="#page_32">1.15.5 </A></TD>
    <TD align=left><A href="#page_32">Non GAAP Measures </A></TD>
    <TD align=right><A href="#page_32">32 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; <A href="#page_33"></A></TD>
    <TD align=left bgColor=#eeeeee><A href="#page_33">1.15.6
</A></TD>
    <TD align=left bgColor=#eeeeee><A href="#page_33">Risk Factors
      </A></TD>
    <TD align=right bgColor=#eeeeee><A href="#page_33">33
  </A></TD>
  </TR></TABLE>
<BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_2></A>
<br>
<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="tasekologo.jpg" border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009 </B></TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS </B></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&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 ><FONT color=#0000ff><B>1.1 </B></FONT></TD>
    <TD align=left width="95%"><FONT color=#0000ff><B>Date
  </B></FONT></TD></TR></TABLE>
<P align=justify>This Management Discussion and Analysis ("MD&amp;A") should be
read in conjunction with the audited consolidated financial statements of Taseko
Mines Limited ("Taseko", or the "Company") for the twelve months ended December
31, 2009, the fifteen months ended December 31, 2008 and the year ended
September 30, 2007, prepared in accordance with Canadian generally accepted
accounting principles, and is 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 March 16, 2010. All dollar
figures stated herein are expressed in Canadian dollars, unless otherwise
specified. </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-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    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><BR>
<TABLE
style="BORDER-COLOR: #FF0000; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=2 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><B><FONT color=#ff0000>Cautionary Note to Investors
      Concerning Estimates of Measured and Indicated Resources </FONT></B></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><BR>
<TABLE
style="BORDER-COLOR: #FF0000; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=2 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><B><FONT color=#ff0000>Cautionary Note to Investors
      Concerning Estimates of Inferred Resources </FONT></B></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 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></P></TD></TR></TABLE>
<P align=center>2</P>
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<TABLE
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cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD align=center><IMG src="tasekologo.jpg" border=0>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&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 ><FONT color=#0000ff><B>1.2</B> </FONT></TD>
    <TD align=left width="95%"><FONT color=#0000ff><B>Overview</B>
  </FONT></TD></TR></TABLE>
<P align=justify>Taseko is a mining and mine development company with one
operating mine, two advanced stage projects and one exploration project, all
located in British Columbia, Canada. These are the Gibraltar copper-molybdenum
mine, the Prosperity gold-copper property, the Harmony gold property and the
Aley niobium property.</P>
<P align=justify>For 2009, Taseko has focused on production and operating cost
improvements and completing capital upgrade projects at its Gibraltar mine. For
Prosperity, Taseko focused on attaining environmental assessment approvals, as
well as arranging project financing and concentrate marketing opportunities.</P>
<P align=justify>Taseko had an operating profit of $48.3 million and earnings
before tax and other items of $27.0 million for the year ended December 31,
2009, compared to an operating profit of $28.1 million and a loss before tax and
other items of $2.1 million for the fifteen months ended December 31, 2008.
Other items include unrealized (non-cash) marked-to-market loss attributable to
derivative instruments of $15.8 million. </P>
<P align=justify>During the year ended December 31, 2009, Gibraltar produced
70.3 million pounds of copper and 629 thousand pounds of molybdenum. Total cash
costs<SUP>1</SUP> for the year averaged US$1.54 per pound of copper. </P>
<P align=justify>In the quarter ended December 31, 2009, the Gibraltar mine
produced 17.4 million pounds of copper and 113 thousand pounds of
molybdenum.</P>
<P align=justify>At Gibraltar, the cleaner and regrind circuit capital projects
were completed and expected copper recovery improvements were being realized by
the middle of the fourth quarter 2009. Other capital projects underway are the
in-pit crusher and conveyor system and the tailings handling system which are
both expected to be completed in the second quarter of 2010. The concentrate
filter/dryer circuits upgrade is expected to be completed in the third quarter
of 2010 and the Semi Autogenous Grinding (SAG) mill direct feed system
construction is planned to begin during the second quarter of 2010 for
completion in the fourth quarter of 2010.</P>
<P align=justify>The Company announced in November 2009 that it would establish
a joint venture with Sojitz Corporation over the Gibraltar mine, whereby Sojitz
would pay $179.5 million to acquire a 25% interest in the mine. Taseko would
retain a 75% interest and will continue to operate the mine. <I></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. The Company expects the Federal
environmental assessment process to be complete by mid 2010. Applications for
Provincial permits are being prepared and are expected to be submitted before
the end of March.</P>
<P align=justify>During the year, Taseko announced a 70% increase in proven and
probable mineral reserves at the Prosperity Project, from 487 million tonnes to
830 million tonnes based on a $5.50 Net Smelter Return cut-off (see Section
1.2.2) . Under present mine design criteria, these reserves extend Prosperity's
estimated mine life from 20 to 33 years.</P>
<P align=justify><sup>1. Cash costs of production is a non-GAAP measure. This
non-GAAP measure is 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 costs 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. </sup></P>
<P align=center>3</P>
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  <TR>
    <TD align=center><IMG src="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE>
<P align=justify>During the year, Taseko repurchased/redeemed the entire US$30
million of Convertible Bonds that were outstanding. The Company also completed
debt financings which included a US$50 million credit facility with Credit
Suisse and Investec Bank PLC, a $9 million equipment loan with GE Capital and a
$6.5 million royalty financing which pays a 6% royalty. In addition, the Company
completed equity financings for net proceeds of $26.8 million.</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><B>1.2.1</B> </TD>
    <TD align=left width="95%"><B>Gibraltar Mine</B> </TD></TR></TABLE>
<P align=justify>Taseko&#146;s 100% owned Gibraltar mine is located north of the City
of Williams Lake in south-central British Columbia. </P>
<P align=justify><B><I>Three-Month Sales </I></B><B></B></P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>Copper in concentrate sales volume in the three months ended December 31,
  2009 was 16.2 million pounds compared to 17.6 million pounds of copper in
  concentrate sold during the three months ended December 31, 2008. </P>
  <LI>
  <P>Copper cathode sales volume in the three months ended December 31, 2009 was
  0.6 million pounds compared to 0.9 million pounds in the three months ended
  December 31, 2008. </P>
  <LI>
  <P>The average price realized for sales of copper during the period was
  US$3.10 per pound, compared to US$1.26 per pound realized in the three months
  ended December 31, 2008. </P>
  <LI>
  <P>Molybdenum in concentrate sales volume in the three months ended December
  31, 2009 was 97,000 pounds compared to 143,000 pounds sold in the three months
  ended December 31, 2008. </P>
  <LI>
  <P>The average price realized for sales of molybdenum for the three months
  ended December 31, 2009 declined to US$12.01 per pound, compared to US$19.96
  per pound realized in the three months ended December 31, 2008. </P></LI></UL>
<P align=justify><B><I>Twelve-Month Sales </I></B><I></I></P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>Copper in concentrate sales during the twelve months ended December 31,
  2009 was 65.9 million pounds, compared to sales of 61.6 million pounds in the
  twelve months ended December 31, 2008. </P>
  <LI>
  <P>Copper cathode sales during the twelve months ended December 31, 2009 was
  2.2 million pounds, compared to 4.1 million pounds in the twelve months ended
  December 31, 2008. </P>
  <LI>
  <P>Molybdenum in concentrate sales during the twelve months ending December
  31, 2009 was 0.7 million pounds, compared to sales volume of 0.6 million
  pounds in the twelve months ending December 31, 2008. </P></LI></UL>
<P align=justify>The following table illustrates the significant changes in the
average prices for copper and molybdenum on a quarter by quarter basis over the
past twelve months: </P>

<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="80%" border=0 align="center">

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="13%"><B>Q1 2009</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="13%"><B>Q2 2009</B> </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="13%"><B>Q3 2009</B> </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="13%"><B>Q4 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center>LME Copper Price Average USD/lb </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="13%">1.56 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="13%">2.12
    </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="13%">2.66 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="13%">3.02 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center>Molybdenum Oxide Price Average USD/lb </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="13%">8.75 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="13%">9.10
    </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="13%">14.50 </TD>
<TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="13%">11.29 </TD></TR></TABLE>
<P align=center>4</P>
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noShade SIZE=5>
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<br>
<TABLE
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cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD align=center><IMG src="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009 </B></TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS </B></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE>
<P align=justify><B><I>Year-end Inventory</I></B></P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>Copper concentrate inventory at December 31, 2009 was 3.8 million pounds
  compared to 4.1 million pounds at December 31, 2008. </P>
  <LI>
  <P>Copper cathode inventory at December 31, 2009 was 0.13 million pounds
  compared to 0.4 million pounds at December 31, 2008. </P>
  <LI>
  <P>Molybdenum in concentrate inventory at December 31, 2009 was 16,000 pounds
  compared to 77,000 pounds at December 31, 2008. </P></LI></UL>
<P align=justify><B><I>Gibraltar Mine Current Production and Cost Performance
</I></B></P>
<P align=justify>The following table is a summary of operating statistics: </P>

<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="90%" border=1 align="center">

  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><BR></TD>
    <TD width="15%" align=center nowrap bgColor=#eeeeee><B>Three months ending
      </B><BR>
    <B>December 31, 2009 </B></TD>
    <TD width="15%" align=center nowrap bgColor=#eeeeee><B>Twelve months ending
      </B><BR>
    <B>December 31, 2009 </B></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Total tons mined
      (millions)<SUP>1 </SUP></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%">11.3
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%">34.9
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff>Tons of ore milled (millions) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#ffffff>3.2 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#ffffff>13.0 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff>Stripping ratio </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#ffffff>2.2 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#ffffff>1.8 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff>Copper grade (%) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#ffffff>0.319 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#ffffff>0.319 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff>Molybdenum grade (%Mo) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#ffffff>0.010 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#ffffff>0.011 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff>Copper recovery (%) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#ffffff>84.1 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#ffffff>82.3 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff>Molybdenum recovery (%) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#ffffff>20.9 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#ffffff>24.4 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff>Copper production (millions lb) <SUP>2 </SUP></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#ffffff>17.4 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#ffffff>70.3 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff>Molybdenum production (thousands lb) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#ffffff>113 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#ffffff>629 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff>Foreign Exchange ($C/$US) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#ffffff>1.06 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#ffffff>1.14 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Copper production costs, net of by-product
      credits<SUP>3 </SUP>, per lb of copper </TD>
    <TD width="15%" align=center valign="middle" bgColor=#ffffff>US$1.67 </TD>
    <TD width="15%" align=center valign="middle" bgColor=#ffffff>US$1.24 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Off property costs for transport, treatment
      (smelting &amp; refining) &amp; sales per lb of copper </TD>
    <TD width="15%" align=center valign="middle" bgColor=#ffffff>US$0.31 </TD>
    <TD width="15%" align=center valign="middle" bgColor=#ffffff>US$0.30 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Total cash costs of production per lb of copper </TD>
    <TD align=center width="15%">US$1.98 </TD>
<TD align=center width="15%">US$1.54 </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%"><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 width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>2 </SUP></TD>
    <TD>
      <P align=justify>Copper production includes concentrate and
  cathode.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <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></TABLE>
<P align=justify>Total cash costs for the quarter ended December 31, 2009 were
approximately US$0.44/lb above the annual average. This was the result of the
combination of low production in October due to milling lower than average
deposit grades because of a geotechnical event in July 2009, costs associated
with removal by a contractor of very loose soils at the location of the
geotechnical event in July 2009, and an increased strip ratio as the mine moved
back to the mine site average strip ratio based on continued strength in the
price of copper. The higher costs were partially off-set by increased copper
recoveries related to the completion of commissioning of the cleaner and regrind
circuits.</P>
<P align=center>5</P>
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  <TR>
    <TD align=center><IMG src="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE>
<P align=justify>The following table illustrates fourth quarter of 2009 copper
production and recovery with the results from the first two months of 2010: </P>

<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 bgColor=#eeeeee><BR></TD>
    <TD align=center width="11%" bgColor=#eeeeee><B>October</B>
      <BR><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="11%"
    bgColor=#eeeeee><B>November</B> <BR><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="11%"
    bgColor=#eeeeee><B>December</B> <BR><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="11%"
    bgColor=#eeeeee><B>January</B> <BR><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="11%"
    bgColor=#eeeeee><B>February</B> <BR><B>2010</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Mill Throughput
      (millions, tons) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="11%">1.1
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="11%">1.1
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="11%">1.0
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="11%">1.2
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="11%">1.2
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff>Recoveries (%) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="11%"
    bgColor=#ffffff>79.9 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="11%"
    bgColor=#ffffff>82.8 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="11%"
    bgColor=#ffffff>89.8 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="11%"
    bgColor=#ffffff>88.9 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="11%"
    bgColor=#ffffff>90.1 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Production
      (millions, pounds) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="11%">4.8
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="11%">5.7
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="11%">6.8
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="11%">8.7
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="11%">6.8
</TD></TR></TABLE>
<P align=justify><B><I>Fixed Infrastructure Upgrades and Installations</I></B>
</P>
<P align=justify>Improvements to the concentrator and ore handling facilities at
Gibraltar continued through the fourth quarter. The higher capacity cleaner
flotation circuit and modern regrind tower mill completed in August were fully
commissioned in mid-November providing the recovery improvements listed in the
table above.</P>
<P align=justify>As at the date of the MD&amp;A, construction is approximately
95% complete on the new in-pit 60-inch by 89-inch crusher and conveyor system
which, when completed and commissioned, will reduce operating costs and improve
mine productivity by replacing the smaller original Gibraltar crusher and
supplanting approximately three diesel-powered haulage trucks with an
electrically driven overland conveyor belt. </P>
<P align=justify>Replacement of the current single-line tailings system with a
two line system and substitution of the natural gas fired concentrate dryer with
a filter press are planned to be completed in the second and third quarter of
2010, respectively. This equipment will reduce operating cost, provide a more
stable operating platform, and will be able to manage increased volume as mill
throughput increases. </P>
<P align=justify>Detailed engineering is near completion on a SAG mill direct
feed system which 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. Completion of construction of the direct feed system is expected in the
fourth quarter of 2010.</P>
<P align=justify><B><I>Labour and Safety</I></B><I> </I></P>
<P align=justify>The number of active personnel at the site at the end of
December 2009 was 377, compared to 397 personnel at the end of December
2008.</P>
<P align=justify>There were 2 lost time accidents during the quarter and 7
during the year.</P>
<P align=justify><B><I>Environmental </I></B></P>
<P align=justify>There was one reportable incident during the quarter, which was
the only reportable incident in 2009. </P>
<P align=center>6</P>
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  <TR>
    <TD align=center><IMG src="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE>
<P align=justify><B><I>Mineral Reserves </I></B></P>
<P align=justify>Taseko completed a drill program and engineering study on the
Oakmont ground of the Gibraltar property in 2008. These programs have confirmed
an extension of the Gibraltar mineral deposit (Gibraltar Extension) and
increased the mine&#146;s mineral reserves by 28% to 472 million tons. </P>
<P align=justify>Gibraltar's proven and probable reserves as of December 31,
2009 are tabulated below: </P>

<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="80%" border=1 align="center">

  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee colSpan=5><B>Gibraltar Mine Mineral
      Reserves</B> <BR>At 0.20% copper cut-off </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Pit</B> <BR></TD>
    <TD align=left width="13%"><B>Category</B> <BR></TD>
    <TD align=center width="13%"><B>Tons</B> <BR><B>(millions)</B> </TD>
    <TD align=center width="13%"><B>Cu</B> <BR><B>(%)</B> </TD>
    <TD align=center width="13%"><B>Mo</B> <BR><B>(%)</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff rowSpan=2>Connector <BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="13%"
    bgColor=#ffffff>Proven <BR>Probable </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center width="13%"
    bgColor=#ffffff>40.4 <BR>14.8 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center width="13%"
    bgColor=#ffffff>0.296 <BR>0.271 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center width="13%"
    bgColor=#ffffff>0.010 <BR>0.009 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="13%"
    bgColor=#ffffff><B>Subtotal</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="13%"
    bgColor=#ffffff><B>55.2</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="13%"
    bgColor=#ffffff><B>0.289</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="13%"
    bgColor=#ffffff><B>0.010</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff rowSpan=2>Gibraltar East <BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="13%"
    bgColor=#ffffff>Proven <BR>Probable </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center width="13%"
    bgColor=#ffffff>66.8 <BR>33.3 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center width="13%"
    bgColor=#ffffff>0.286 <BR>0.285 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center width="13%"
    bgColor=#ffffff>0.008 <BR>0.013 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="13%"
    bgColor=#ffffff><B>Subtotal</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="13%"
    bgColor=#ffffff><B>100.1</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="13%"
    bgColor=#ffffff><B>0.286</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="13%"
    bgColor=#ffffff><B>0.010</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff rowSpan=2>Granite <BR><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="13%"
    bgColor=#ffffff>Proven <BR>Probable </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center width="13%"
    bgColor=#ffffff>178.3 <BR>21.6 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center width="13%"
    bgColor=#ffffff>0.325 <BR>0.319 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center width="13%"
    bgColor=#ffffff>0.009 <BR>0.009 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="13%"
    bgColor=#ffffff><B>Subtotal</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="13%"
    bgColor=#ffffff><B>199.9</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="13%"
    bgColor=#ffffff><B>0.324</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="13%"
    bgColor=#ffffff><B>0.009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff rowSpan=2>Gibraltar Extension <BR>(new
      reserves) <BR></TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=left width="13%"
    bgColor=#ffffff>Proven <BR>Probable </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center width="13%"
    bgColor=#ffffff>75.4 <BR>29.3 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center width="13%"
    bgColor=#ffffff>0.352 <BR>0.304 </TD>
    <TD style="BORDER-BOTTOM: #000000 3px double" align=center width="13%"
    bgColor=#ffffff>0.002 <BR>0.002 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="13%"><B>Subtotal</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="13%"><B>104.7</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="13%"><B>0.339</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="13%"><B>0.002</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      bgColor=#eeeeee>Total </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="13%"
    bgColor=#eeeeee>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="13%"
    bgColor=#eeeeee>459.9 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="13%"
    bgColor=#eeeeee>0.315 </TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="13%"
    bgColor=#eeeeee>0.008 </TD></TR></TABLE>
<P align=justify>The mineral reserves above are based on the published reserves
at December 31, 2008 and depleted for ore production from the Granite pit in
2009. The estimate was completed by Gibraltar mine staff under the supervision
of Scott Jones, P.Eng., Vice-President, Engineering and a Qualified Person under
National Instrument 43-101. </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 ><B>1.2.2</B> </TD>
    <TD align=left width="95%"><B>Prosperity Project</B> </TD></TR></TABLE>
<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><I>Mineral Reserves and Resources </I></P>
<P align=justify>During the fourth quarter, the Company announced the results of
a review of the mineral reserves for the Prosperity Project. The reserves
(tabulated below) are based on a $5.50 net smelter return (&#147;NSR&#148;) cut-off using
gold and copper prices of $650/oz and $1.65/lb, respectively. </P>
<P align=center>7</P>
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cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD align=center><IMG src="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE><BR>

<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee colSpan=8><B>Prosperity Project Mineral
      Reserves &#150; November 2009</B> <BR>at C$5.50 NSR/t cut-off </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center bgColor=#ffffff
    rowSpan=2><BR><B>Category</B> <BR></TD>
    <TD align=center width="12%" bgColor=#ffffff rowSpan=2><B><BR>Tonnes</B>
      <BR><B>(millions)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="24%"
    bgColor=#ffffff colSpan=2><B>Grade</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="24%"
    bgColor=#ffffff colSpan=2>&nbsp;<B>Recoverable Metal</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="24%"
    bgColor=#ffffff colSpan=2>&nbsp;<B>Contained Metal</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%"
    bgColor=#ffffff><B>Au</B> <BR><B>(g/t)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%"
    bgColor=#ffffff><B>Cu</B> <BR><B>(%)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%"
    bgColor=#ffffff><B>Au</B> <BR><B>(M oz)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%"
    bgColor=#ffffff><B>Cu</B> <BR><B>(B lb)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%"
    bgColor=#ffffff><B>Au</B> <BR><B>(M oz)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%"
    bgColor=#ffffff><B>Cu</B> <BR><B>(B lb)</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff>Proven </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%"
    bgColor=#ffffff>481 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%"
    bgColor=#ffffff>0.46 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%"
    bgColor=#ffffff>0.26 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="12%"
    bgColor=#ffffff>&nbsp; &nbsp;5.0 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="12%"
    bgColor=#ffffff>&nbsp;2.4 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%"
    bgColor=#ffffff>7.1 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%"
    bgColor=#ffffff>2.8 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff>Probable </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%"
    bgColor=#ffffff>350 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%"
    bgColor=#ffffff>0.35 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%"
    bgColor=#ffffff>0.18 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="12%"
    bgColor=#ffffff>&nbsp; &nbsp;2.7 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="12%"
    bgColor=#ffffff>&nbsp;1.2 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%"
    bgColor=#ffffff>3.9 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="12%"
    bgColor=#ffffff>1.4 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B>Total</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="12%"><B>831</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="12%"><B>0.41</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="12%"><B>0.23</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="12%">&nbsp;
      &nbsp;<B>7.7</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="12%">&nbsp;<B>3.6</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="12%"><B>11.0</B> </TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="12%"><B>4.2</B> </TD></TR></TABLE>
<P align=justify>Note: Recoveries for Cu and Au are 87% and 69% respectively
</P>
<P align=justify>There are additional estimated measured and indicated resources
totaling 180 million tonnes grading 0.37 g/t gold and 0.32% copper, containing
2.1 million ounces of gold and 1.3 billion pounds of copper (assuming 100%
recoveries). The mineral resource and reserve estimations were completed by
Taseko staff under the supervision of Scott Jones, P.Eng., Vice-President,
Engineering and a Qualified Person under National Instrument 43-101. A technical
report has been filed on www.sedar.com. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=2 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>Cautionary regarding differences in US and Canadian Criteria
      for Reserves </TD></TR>
  <TR>
    <TD
      style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&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>
      <P align=justify>The mineralized material at the Prosperity project is
      currently classified as measured and indicated resources, and a portion of
      it qualifies under Canadian mining disclosure standards as proven and
      probable reserves. Readers are cautioned that no part of the Prosperity
      project&#146;s mineralization is yet considered to be a reserve under US mining
      standards as all necessary mining permits and project financing would be
      required in order to classify the project&#146;s mineralized material as an
      economically exploitable reserve. </P></TD></TR></TABLE>
<P align=justify><I>Permitting </I></P>
<P align=justify>The Ministry of Environment of British Columbia accepted
Taseko&#146;s Environmental Assessment report on March 13, 2009 and proceeded under
provisions of the Environmental Assessment Act with an Environmental Assessment
Office (&#147;EAO&#148;) led review of this Project in a coordinated manner with the
Canadian Environmental Assessment Agency (&#147;CEAA&#148;) on their respective provincial
and federal environmental assessment processes. </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 is planned to be submitted
to the Ministry of Energy, Mines, and Petroleum Resources before the end of
March 2010. </P>
<P align=justify>The federal process, conducted by a three-person Panel
operating under defined Terms of Reference are required to complete their work
in a timely and efficient manner. The hearings are scheduled to commence in late
March and be completed in early May of 2010. Following conclusion of the
hearings, the Panel will submit their findings to the Federal Minister of
Environment for a decision. This process is expected to be completed by mid
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 align=left ><B>1.2.3</B> </TD>
    <TD align=left width="95%"><B>Harmony Project</B> </TD></TR></TABLE>
<P align=justify>Taseko holds 100% of the Harmony gold project, located on the
Queen Charlotte-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. </P>
<P align=center>8</P>
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<br>
<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="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE>
<P align=justify>Taseko is considering initiating a pre-feasibility level study
in 2010 of Harmony to further evaluate the project. The Company initiated a
review of engineering work on the project in late 2007 following the designation
of the area as a mineral development zone under the Queen Charlotte-Haida Gwaii
Land and Resource Management Plan. </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 ><B>1.2.4</B> </TD>
    <TD align=left width="95%"><B>Aley Project</B> </TD></TR></TABLE>
<P align=justify>Taseko holds 100% of the Aley niobium project in northern
British Columbia. The Company is considering additional exploration work in 2010
to advance this project. </P>
<P align=justify>Niobium is a metal used in making high-strength steels required
in the manufacture of automobiles, bridges, pipes, jet turbines and other high
technology applications.</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 ><B>1.2.5</B> </TD>
    <TD align=left width="95%"><B>Market Trends</B> </TD></TR></TABLE>
<P align=justify>Copper prices had been on an overall upward trend between late
2003 and October 2008; in mid-2008, the copper market deficit, caused by strong
demand growth and struggling production and a lack of new development projects,
reached its peak. There was an unprecedented 70% drop in prices over the six
months from July to December 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, averaging US$3.25/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$1,111/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$15.32/lb.</P>
<P align=justify>The Company sells its products in United States dollars but its
expenses are denominated primarily in Canadian dollars. The twelve-month average
at December 31, 2009 for one United States dollar was 1.14 Canadian dollars. At
December 31, 2009, one United States dollar was equivalent to 1.05 Canadian
dollars. Current forecasts anticipate continued strength in the Canadian dollar.
</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 ><FONT color=#0000ff><B>1.3</B> </FONT></TD>
    <TD align=left width="95%"><FONT color=#0000ff><B>Selected Annual
      Information</B> </FONT></TD></TR></TABLE>
<P align=justify>The consolidated financial statements have been prepared in
accordance with Canadian generally accepted accounting principles, and are
expressed in thousands of Canadian dollars except per share amounts. </P>
<P align=center>9</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><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>
    <TD align=center><IMG src="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&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 width="23%" colSpan=4 align=center nowrap><B>As at December 31</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>As at September</B> </TD>
  <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD 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=right
      width="10%"><B>30</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><B>Balance
      Sheets</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="10%"><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="10%"><B>2008</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>2007</B> </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 align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;92,316 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;41,283 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;94,619 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Mineral properties </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">32,631 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">32,610 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">18,407 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Plant and equipment </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>305,205 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>292,390 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>158,492 </TD>
    <TD 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" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">104,943 </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%">111,962 </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%">105,745 </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>Total assets </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="10%"
    bgColor=#e6efff>&nbsp;535,095 </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;478,245 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;377,263 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Current liabilities </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;75,179 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;112,053 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;44,589 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Other liabilities </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">163,223 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">131,285 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">169,014 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Shareholders&#146; equity </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>296,693 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>234,907 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>163,660 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Total liabilities
      &amp; shareholders&#146; equity </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">&nbsp;535,095 </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%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">&nbsp;478,245 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">&nbsp;377,263 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" 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 align=left>&nbsp; </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%"><B>Year ended</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%"><B>Fifteen months</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%"><B>Year ended</B> </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD
      width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>December 31</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="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>ended December 31</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="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>September 30</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><B>Statements of
      Operations</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="10%"><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="10%"><B>2008</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>2007</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Revenue </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;188,902 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;231,678 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;218,426 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Cost of sales </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">132,434 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">196,261 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">109,533 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Depletion, depreciation and amortization </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="10%"
    bgColor=#e6efff>8,150 </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="10%"
    bgColor=#e6efff>7,363 </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="10%"
    bgColor=#e6efff>3,155 </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 1px solid" align=left>Operating profit
    </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%">48,318 </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%">28,054 </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%">105,738 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Accretion of reclamation obligation </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>968 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1,451 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1,777 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Exploration </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">3,407 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">11,864 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">8,967 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Foreign exchange loss (gain) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(8,800</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>4,032 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>233 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Gain on asset retirement obligation change of estimates </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">&#150; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(6,917</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(4,570</TD>
    <TD align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Gain on convertible bond repurchase </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(1,630</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>General and administration </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">8,382 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">11,896 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">6,501 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Gain on sale of marketable securities </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(188</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(1,034</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(1,508</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Interest and other income </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(7,402</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(9,701</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(11,093</TD>
    <TD align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Interest expense </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>8,265 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>8,284 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>5,947 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Interest accretion on convertible debt </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">1,260 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">2,938 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">2,922 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Stock-based compensation </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>5,696 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>6,442 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>6,771 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Realized loss on derivative instruments </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">11,330 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">&#150; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">&#150; </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Change in fair market value of financial instruments </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="10%"
    bgColor=#e6efff>&#150; </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="10%"
    bgColor=#e6efff>886 </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="10%"
    bgColor=#e6efff>1,925 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Earnings (loss) before other items </TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="10%">&nbsp;27,030 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="10%">&nbsp;(2,087</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="10%">&nbsp;87,866 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Other items: </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;
      &nbsp;Unrealized loss on derivative instruments </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%">15,775 </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%">&#150; </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%">&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Earnings (loss) before income taxes: </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>11,255 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;(2,087</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;87,866 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Current income tax expense (recovery) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">669 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(2,151</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">3,959 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Future income tax expense (recovery) </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="10%"
    bgColor=#e6efff>25 </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="10%"
    bgColor=#e6efff>(3,446</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>) </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="10%"
    bgColor=#e6efff>35,645 </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 1px solid" align=left>Earnings (loss)
      for the year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">&nbsp;10,561 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">&nbsp;3,510 </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="10%">&nbsp;48,262 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Other comprehensive income (loss): </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Unrealized gain (loss)
      on reclamation deposits </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(1,040</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1,859 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(419</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Unrealized gain (loss) on marketable
      securities/investments </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">14,263 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(11,295</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">4,710 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Reclassification of
      realized gain on sale of marketable securities </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(188</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(1,152</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(1,508</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp;
      &nbsp;Tax effect </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%">(1,779</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">) </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%">1,570
    </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%">(445</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">)
</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Other comprehensive income (loss) </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="10%"
    bgColor=#e6efff>&nbsp;11,256 </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;(9,018</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>&nbsp;2,338 </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 1px solid" align=left>Total
      comprehensive income (loss) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">&nbsp;21,817 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">&nbsp;(5,508</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">&nbsp;50,600 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Basic earnings (loss) per share </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;0.06 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;0.02 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;0.37 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Diluted earnings (loss) per share </TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="10%">&nbsp;0.06 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="10%">&nbsp;0.02 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="10%">&nbsp;0.36 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Basic weighted average number of common
      shares outstanding </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>173,170 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>142,062 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>129,218 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Diluted weighted average number of common shares
      outstanding </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">180,835 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">156,928 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">142,278 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR></TABLE>
<P align=center>10</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&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 ><FONT color=#0000ff><B>1.4</B> </FONT></TD>
    <TD align=left width="95%"><FONT color=#0000ff><B>Summary of Quarterly
      Results</B> </FONT></TD></TR></TABLE>
<P align=justify>Expressed in thousands of Canadian dollars, except per-share
amounts. Small differences are due to rounding. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; 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="7%">Dec 31 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Sept 30 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">June 30 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Mar 31 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Dec 31 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Sept 30 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">June 30 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Mar 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="7%">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="7%">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="7%">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="7%">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="7%">2008
    </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="7%">2008
    </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="7%">2008
    </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="7%">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 align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" bgColor=#e6efff>92,316 </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="7%" align=right valign="bottom" bgColor=#e6efff>90,209 </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="7%" align=right valign="bottom" bgColor=#e6efff>75,950 </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="7%" align=right valign="bottom" bgColor=#e6efff>58,357 </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="7%" align=right valign="bottom" bgColor=#e6efff>41,283 </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="7%" align=right valign="bottom" bgColor=#e6efff>80,250 </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="7%" align=right valign="bottom" bgColor=#e6efff>114,611 </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="7%" align=right valign="bottom" bgColor=#e6efff>124,105 </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Mineral properties </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">32,631 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">32,617 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">32,617 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">32,619 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">32,610 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">32,095 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">29,916 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">19,142 </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Plant and equipment </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" bgColor=#e6efff>305,205 </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="7%" align=right valign="bottom" bgColor=#e6efff>303,434 </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="7%" align=right valign="bottom" bgColor=#e6efff>301,891 </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="7%" align=right valign="bottom" bgColor=#e6efff>295,094 </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="7%" align=right valign="bottom" bgColor=#e6efff>292,390 </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="7%" align=right valign="bottom" bgColor=#e6efff>266,872 </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="7%" align=right valign="bottom" bgColor=#e6efff>222,729 </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="7%" align=right valign="bottom" bgColor=#e6efff>202,679 </TD>
  <TD width="2%" align=left valign="bottom"  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" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">104,943 </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">107,686 </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">107,707 </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">112,321 </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">111,962 </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">132,977 </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">113,159 </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">112,926 </TD>
  <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&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" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>535,095</B> </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>533,946</B> </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>518,165</B> </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>498,391</B> </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>478,245</B> </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>512,194</B> </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>480,415</B> </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>458,852</B> </TD>
  <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="7%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="7%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="7%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="7%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="7%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="7%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="7%" valign="bottom">&nbsp; </TD>
  <TD width="2%" valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Current liabilities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" bgColor=#e6efff>75,179 </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="7%" align=right valign="bottom" bgColor=#e6efff>58,949 </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="7%" align=right valign="bottom" bgColor=#e6efff>61,503 </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="7%" align=right valign="bottom" bgColor=#e6efff>91,195 </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="7%" align=right valign="bottom" bgColor=#e6efff>112,053 </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="7%" align=right valign="bottom" bgColor=#e6efff>65,663 </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="7%" align=right valign="bottom" bgColor=#e6efff>41,484 </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="7%" align=right valign="bottom" bgColor=#e6efff>29,976 </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Other liabilities </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">163,223 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">183,856 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">165,341 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">166,596 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">131,285 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">176,456 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">173,755 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">182,419 </TD>
  <TD width="2%" align=left valign="bottom" >&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" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">296,693 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">291,141 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">291,321 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">240,600 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">234,907 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">270,075 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">265,176 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">246,457 </TD>
  <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&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" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>535,095</B> </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>533,946</B> </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>518,165</B> </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>498,391</B> </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>478,425</B> </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>512,194</B> </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>480,415</B> </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>458,852</B> </TD>
  <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff >&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD width="2%" valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Revenue </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">55,966 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">40,132 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">52,632 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">40,172 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">10,576 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">57,615 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">53,206 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">65,357 </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Mine site operating costs </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" bgColor=#e6efff>32,160 </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="7%" align=right valign="bottom" bgColor=#e6efff>24,528 </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="7%" align=right valign="bottom" bgColor=#e6efff>26,203 </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="7%" align=right valign="bottom" bgColor=#e6efff>25,454 </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="7%" align=right valign="bottom" bgColor=#e6efff>42,021 </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="7%" align=right valign="bottom" bgColor=#e6efff>40,924 </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="7%" align=right valign="bottom" bgColor=#e6efff>29,633 </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="7%" align=right valign="bottom" bgColor=#e6efff>28,854 </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Transportation and treatment </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">5,724 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">4,554 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">7,609 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">6,202 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">7,054 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">9,500 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">6,042 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">7,194 </TD>
  <TD width="2%" align=left valign="bottom" >&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" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">2,421 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">1,677 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">2,142 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">1,910 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">1,979 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">2,029 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">1,563 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">1,091 </TD>
  <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&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" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>15,661</B> </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>9,373</B> </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>16,678</B> </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>6,606</B> </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>(40,478</B></TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    ><B>)</B> </TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>5,162</B> </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>15,968</B> </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>28,218</B> </TD>
  <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff ><B><U>Expenses:</U></B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" 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="7%" 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="7%" 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="7%" 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="7%" 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="7%" 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="7%" 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="7%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="7%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="7%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="7%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="7%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="7%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="7%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom" >&nbsp;</TD>
    <TD width="1%" valign="bottom" >&nbsp;</TD>
    <TD width="7%" valign="bottom">&nbsp; </TD>
  <TD width="2%" valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Accretion of reclamation
      obligation </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" bgColor=#e6efff>250 </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="7%" align=right valign="bottom" bgColor=#e6efff>245 </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="7%" align=right valign="bottom" bgColor=#e6efff>239 </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="7%" align=right valign="bottom" bgColor=#e6efff>234 </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="7%" align=right valign="bottom" bgColor=#e6efff>183 </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="7%" align=right valign="bottom" bgColor=#e6efff>326 </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="7%" align=right valign="bottom" bgColor=#e6efff>322 </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="7%" align=right valign="bottom" bgColor=#e6efff>313 </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Asset retirement obligation change of
      estimates </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">&#150; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">&#150; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">&#150; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">&#150; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">(4,504</TD>
    <TD width="2%" align=left valign="bottom" >) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">&#150; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">&#150; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">&#150; </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Exploration </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" bgColor=#e6efff>1,519 </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="7%" align=right valign="bottom" bgColor=#e6efff>805 </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="7%" align=right valign="bottom" bgColor=#e6efff>549 </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="7%" align=right valign="bottom" bgColor=#e6efff>534 </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="7%" align=right valign="bottom" bgColor=#e6efff>1,088 </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="7%" align=right valign="bottom" bgColor=#e6efff>3,363 </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="7%" align=right valign="bottom" bgColor=#e6efff>3,047 </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="7%" align=right valign="bottom" bgColor=#e6efff>2,243 </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Foreign exchange loss (gain) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">(681</TD>
    <TD width="2%" align=left valign="bottom" >) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">(3,108</TD>
    <TD width="2%" align=left valign="bottom" >) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">(7,941</TD>
    <TD width="2%" align=left valign="bottom" >) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">2,930 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">3,249 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">1,142 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">600 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">(1,000</TD>
  <TD width="2%" align=left valign="bottom" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Gain on convertible bond
      repurchase </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" bgColor=#e6efff>&#150; </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="7%" align=right valign="bottom" bgColor=#e6efff>(948</TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>) </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" bgColor=#e6efff>(682</TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>) </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" bgColor=#e6efff>&#150; </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="7%" align=right valign="bottom" bgColor=#e6efff>&#150; </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="7%" align=right valign="bottom" bgColor=#e6efff>&#150; </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="7%" align=right valign="bottom" bgColor=#e6efff>&#150; </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="7%" align=right valign="bottom" bgColor=#e6efff>&#150; </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >General and administration </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">2,197 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">1,752 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">2,104 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">2,329 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">2,220 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">2,143 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">2,245 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">2,472 </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Interest expense and
      accretion charges </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" bgColor=#e6efff>1,935 </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="7%" align=right valign="bottom" bgColor=#e6efff>2,041 </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="7%" align=right valign="bottom" bgColor=#e6efff>2,765 </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="7%" align=right valign="bottom" bgColor=#e6efff>2,784 </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="7%" align=right valign="bottom" bgColor=#e6efff>3,839 </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="7%" align=right valign="bottom" bgColor=#e6efff>1,603 </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="7%" align=right valign="bottom" bgColor=#e6efff>1,857 </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="7%" align=right valign="bottom" bgColor=#e6efff>2,032 </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Interest and other income </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">(1,702</TD>
    <TD width="2%" align=left valign="bottom" >) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">(1,529</TD>
    <TD width="2%" align=left valign="bottom" >) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">(1,987</TD>
    <TD width="2%" align=left valign="bottom" >) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">(2,184</TD>
    <TD width="2%" align=left valign="bottom" >) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">(1,362</TD>
    <TD width="2%" align=left valign="bottom" >) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">(1,668</TD>
    <TD width="2%" align=left valign="bottom" >) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">(1,897</TD>
    <TD width="2%" align=left valign="bottom" >) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">(2,239</TD>
  <TD width="2%" align=left valign="bottom" >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Loss (gain) on sale of
      marketable securities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" bgColor=#e6efff>(1,004</TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>) </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" bgColor=#e6efff>816 </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="7%" align=right valign="bottom" bgColor=#e6efff>&#150; </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="7%" align=right valign="bottom" bgColor=#e6efff>&#150; </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="7%" align=right valign="bottom" bgColor=#e6efff>&#150; </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="7%" align=right valign="bottom" bgColor=#e6efff>120 </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="7%" align=right valign="bottom" bgColor=#e6efff>(586</TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>) </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" bgColor=#e6efff>(568</TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Loss on equipment disposal </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">&#150; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">&#150; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">&#150; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">&#150; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">701 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">&#150; </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">161 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">&#150; </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Realized loss on derivative
      instrument </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" bgColor=#e6efff>7,762 </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="7%" align=right valign="bottom" bgColor=#e6efff>3,568 </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="7%" align=right valign="bottom" bgColor=#e6efff>&#150; </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="7%" align=right valign="bottom" bgColor=#e6efff>&#150; </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="7%" align=right valign="bottom" bgColor=#e6efff>&#150; </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="7%" align=right valign="bottom" bgColor=#e6efff>&#150; </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="7%" align=right valign="bottom" bgColor=#e6efff>&#150; </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="7%" align=right valign="bottom" bgColor=#e6efff>809 </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Stock-based compensation </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">2,385    </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">1,073    </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">1,581    </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">657</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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">1,054    </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(85</TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >) </TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">1,103    </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">1,598    </TD>
  <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgColor=#e6efff
    >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">12,661 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">4,715 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(3,372</TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">7,284 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">6,468 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">6,944 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">6,852 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">5,660 </TD>
  <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Earnings (loss) before other items </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">3,000    </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">4,658    </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">20,050    </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(678</TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >) </TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
    width="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(46,946</TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >) </TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
    width="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(1,782</TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >) </TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">9,116    </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">22,558    </TD>
  <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Other Items: </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" 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="7%" 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="7%" 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="7%" 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="7%" 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="7%" 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="7%" 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="7%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Unrealized loss on derivative instruments </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">4,237    </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">8,829    </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">2,709    </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&#150; </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&#150; </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&#150; </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&#150; </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&#150; </TD>
  <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&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" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(1,237</TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(4,171</TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">17,341 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(678</TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(46,946</TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(1,782</TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">9,116 </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">22,558 </TD>
  <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</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" align=left width="1%"
    >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">766</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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(1,822</TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >) </TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">5,936    </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(4,186</TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >) </TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
    width="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(7,303</TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >) </TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
    width="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(8,653</TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >) </TD>
    <TD width="1%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">5,317    </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="7%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">6,357    </TD>
  <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</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" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>(2,003</B></TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>(2,349</B></TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>11,405</B> </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>3,508</B> </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>(39,643</B></TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>6,871</B> </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>3,799</B> </TD>
    <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="7%" align=right valign="bottom"
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>16,201</B> </TD>
  <TD width="2%" align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Earnings (loss) per share &#150; basic </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">(0.01</TD>
    <TD width="2%" align=left valign="bottom" >) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">(0.01</TD>
    <TD width="2%" align=left valign="bottom" >) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">0.07 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">0.02 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">(0.29</TD>
    <TD width="2%" align=left valign="bottom" >) </TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">0.05 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">0.03 </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="7%" align=right valign="bottom">0.11 </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Earnings (loss) per share
      &#150;diluted </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" bgColor=#e6efff>(0.01</TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>) </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" bgColor=#e6efff>(0.01</TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>) </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" bgColor=#e6efff>0.06 </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="7%" align=right valign="bottom" bgColor=#e6efff>0.02 </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="7%" align=right valign="bottom" bgColor=#e6efff>(0.26</TD>
    <TD width="2%" align=left valign="bottom"  bgColor=#e6efff>) </TD>
    <TD width="1%" align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" align=right valign="bottom" bgColor=#e6efff>0.05 </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="7%" align=right valign="bottom" bgColor=#e6efff>0.02 </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="7%" align=right valign="bottom" bgColor=#e6efff>0.10 </TD>
  <TD width="2%" align=left valign="bottom"
  bgColor=#e6efff>&nbsp;</TD>
  </TR></TABLE>
<P align=center>11</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="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&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 ><FONT color=#0000ff><B>1.5</B> </FONT></TD>
    <TD align=left width="95%"><FONT color=#0000ff><B>Results of
      Operations</B> </FONT></TD></TR></TABLE>
<P align=justify>In October 2008, the Company announced that it would change its
year end from September 30 to December 31. As a result, in accordance with
National Instrument 51-102CP, &#147;<I>Continuous Disclosure Obligations&#148;</I>, this
management discussion and analysis compares the twelve months ending December
31, 2009 (&#147;fiscal 2009&#148;) and the fifteen months ending December 31, 2008
(&#147;fiscal 2008&#148;). </P>
<P align=justify>During fiscal 2009, Taseko generated operating profit of $48.3
million compared to $28.1 million during fiscal 2008 and earnings before tax and
other items of $27 million for fiscal 2009, compared to a loss before tax and
other items of $2.1 million for fiscal 2008. Other items include unrealized
(non-cash) marked-to-market loss attributable to derivative instruments related
to the copper hedging program of $15.8 million. No such losses were recognized
in fiscal 2008 as the Company did not participate in a copper hedging program
during the comparative period.</P>
<P align=justify>During fiscal 2009, Taseko generated cash outflow from
operating activities of $26.8 million as compared to an inflow of $46.9 million
for the fiscal 2008. The cash outflow from operating activities in fiscal 2009
resulted in part from paying off the negative pricing adjustments that occurred
in fiscal 2008 that were settled during fiscal 2009. A $26.9 million negative
pricing adjustment was recorded at December 31, 2008 related to the rapid
deterioration in base metal prices, including copper and molybdenum in the
quarter ended December 31, 2008. There were no negative pricing adjustments at
December 31, 2009. </P>
<P align=justify>The Company recognized revenues of $188.9 million in fiscal
2009, compared to $231.7 million in fiscal 2008. Revenues consisted of copper
concentrate sales of $172.5 million (2008 &#150; $194.6 million), molybdenum
concentrate sales of $8.8 million (2008 &#150; $21.9 million), silver concentrate
sales of $2.0 million (2008 &#150; $1.6 million), and copper cathode sales of $5.6
million (2008 &#150; $13.6 million). The decrease in revenue was the result of higher
copper shipments in fiscal 2008 mainly due to an extended reporting period of
fifteen months in 2008 compared to twelve months in 2009 as well as a lower
average realized copper price. For fiscal 2009, 68.1 million pounds of copper
(concentrate and cathode) were sold compared to 77.9 million pounds of copper
(concentrate and cathode) for fiscal 2008. The average price per pound of copper
sold decreased to US$2.31 per pound for fiscal 2009, down from US$2.68 per pound
for fiscal 2008. Molybdenum sales decreased to 0.7 million pounds for fiscal
2009 from 0.8 million pounds for fiscal 2008 mainly due to the extended
reporting period in fiscal 2008. The average price per pound of molybdenum sold
decreased to US$11.02 per pound for fiscal 2009, down from US$28.19 per pound
for fiscal 2008.</P>
<P align=justify>Cost of sales for fiscal 2009 was $132.4 million, compared to
$196.3 million for fiscal 2008. Cost of sales for fiscal 2009 consists of total
production cost of $109.60 million (2008 &#150; $158.8 million) and a negative
concentrate inventory adjustment of $1.3 million (2008 &#150; $2.4 million). Also
included in cost of sales is transportation and treatment costs, which were
$24.1 million for fiscal 2009 (2008 &#150; $35 million). Cost of sales was lower
during fiscal 2009 mainly due to the extended reporting period for fiscal 2008
as well as decreases in the labour force and input costs, business improvement
projects implemented and a reduced strip ratio. </P>
<P align=justify>Amortization expense for fiscal 2009 was $8.2 million compared
to $7.4 million in fiscal 2008. The increase is the result of the capital
equipment additions as well as the utilization of several new pieces of
equipment related to the concentrator expansion. 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=center>12</P>
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<br>
<TABLE
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cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD align=center><IMG src="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE>
<P align=justify>Exploration expenses decreased to $3.4 million in fiscal 2009
compared to $11.9 million in fiscal 2008, due to a lower level of exploration
activity at the Company's Prosperity project as it underwent the environmental
assessment review (see Section 1.2.2) . Exploration expenses of $.05 million
(fiscal 2008 &#150; $6.2 million) at Gibraltar were capitalized as exploration
expenditures. </P>
<P align=justify>General and administrative (&#147;G&amp;A&#148;) costs decreased to $8.4
million in fiscal 2009 from $11.9 million in fiscal 2008, mainly due to an
extended reporting period of fifteen months in fiscal 2008 as well as the
Company&#146;s cost cutting initiatives, including lower staffing levels related to
Prosperity, and the Gibraltar mill expansion during the comparative period. </P>
<P align=justify>Stock-based compensation was $5.7 million in fiscal 2009
compared to $6.4 million in fiscal 2008. The decrease is mainly due to the
extended reporting period in fiscal 2008. </P>
<P align=justify>Interest and other income decreased to $7.4 million as compared
to $9.7 million in fiscal 2008. The decrease was due to lower interest rates and
the extended reporting period in fiscal 2008. Interest expense and interest
accretion decreased to $9.5 million in fiscal 2009 compared to $11.2 million in
fiscal 2008 mainly due to an extended reporting period in fiscal 2008 as well as
the redemption of the Company&#146;s convertible bonds during fiscal 2009. The
Company recorded a foreign exchange gain of $8.8 million for fiscal 2009
compared to a loss of $4.0 million in fiscal 2008. The gain is due to the
strengthening of the Canadian dollar and the revaluation of certain US-dollar
denominated liabilities at December 31, 2009. </P>
<P align=justify>The Company recorded no gain resulting from the change in
estimate of reclamation obligation compared to a gain of $6.9 million for fiscal
2008 since there were no revised estimates relating to Gibraltar&#146;s mine life in
fiscal 2009. </P>
<P align=justify>The Company recorded a realized loss of $11.3 million (2008 &#150;
$Nil) and unrealized loss of $15.8 million (2008 &#150; $Nil) on derivative
instruments as a result of the decrease in fair value of the producer call and
put option contracts with Credit Suisse which commenced during the 2009 fiscal
year. </P>
<P align=justify>Current income tax expense of $0.7 million (2008 &#150; recovery of
$2.2 million) and future income taxes expense of $0.03 million (2008 &#150; recovery
of $3.4 million) were recorded for the twelve months ended December 31,
2009.</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 ><FONT color=#0000ff><B>1.6</B> </FONT></TD>
    <TD align=left width="95%"><FONT color=#0000ff><B>Liquidity</B>
  </FONT></TD></TR></TABLE>
<P align=justify>At December 31, 2009, the Company had cash and equivalents of
$35.1 million, as compared to $4.6 million at December 31, 2008. In addition,
the Company had working capital of $17.1 million, as compared to working capital
deficiency of $70.8 million at December 31, 2008. The increase in working
capital was primarily a result of additional funding raised from financing
activities discussed in Section <I>1.7 Capital Resources</I> as well as the
steady increase in both copper and molybdenum prices and sales volumes since
December 2008. </P>
<P align=justify>At March 16, 2010, the Company&#146;s cash and equivalents had
increased to approximately $51.7 million. </P>
<P align=center>13</P>
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<TABLE
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cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD align=center><IMG src="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE>
<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>, the 24-month mine plan and
implemented cash management strategies will be sufficient to fund current
operations and satisfy obligations as they come due. Management is actively
monitoring all commitments and planned expenditures necessary to maintain
operational objectives for the upcoming fiscal year.</P>
<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 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 principal maturities of contractual
obligations (in thousands of Canadian dollars): </P>

<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="90%" border=0 align="center">

  <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=center
      width="8%"><B>Contractual</B> </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=center width="8%">&nbsp;
    </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=center width="8%">&nbsp;
    </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=center width="8%">&nbsp;
    </TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=center width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid" align=center width="8%"><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 December
      31, 2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="8%"><B>Obligations</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 style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="8%"><B>2010</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 style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="8%"><B>2011</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 style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="8%"><B>2012</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 style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="8%"><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 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>liabilities </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="8%">&nbsp;14,821 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="8%">&nbsp;14,821 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="8%">&nbsp;&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="8%">&nbsp;&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="8%">&nbsp;&#150; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Amounts due to a related party </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>13 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>13 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>&#150; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Long-term credit facility </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">52,550 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">21,896 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">26,275 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">4,379 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">&#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="8%" bgColor=#e6efff>15,636 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>4,543 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>4,266 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>4,215 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>2,612 </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="8%">10,112
    </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="8%">2,701
    </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="8%">2,701
    </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="8%">4,710
    </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="8%">&#150; </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 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="8%"
    bgColor=#e6efff>&nbsp;93,132 </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%"
    bgColor=#e6efff>&nbsp;43,974 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%"
    bgColor=#e6efff>&nbsp;33,242 </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>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%"
    bgColor=#e6efff>&nbsp;13,304 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%"
    bgColor=#e6efff>&nbsp;2,612 </TD>
<TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
  </TR></TABLE>
<P align=justify>During the year, the Company completed the
repurchase/redemption of the US$30 million in convertible bonds that it had
outstanding. In Q2 2009, the Company repurchased US$7.5 million of the
convertible bonds from one of its bondholders for the purpose of cancellation.
During Q3 2009, the Company repurchased another US$12.5 million of the
convertible bonds for the purpose of cancellation. In addition, the remaining
bondholders exercised the &#147;put&#148; right on the final US$10 million. </P>
<P align=justify>The Company currently has a US$50 million 36-month term credit
facility with Credit Suisse. In addition, the Company also has long-term
equipment loans with a carrying value of $8.7 million. The Company is also
committed to equipment purchases in relation to its expansion activities at the
Gibraltar Mine in the amount of $23 million. </P>
<P align=justify>The Company also has purchase orders in the normal course of
operations for capital equipment required for the Gibraltar expansion project.
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
audited consolidated financial statements of the Company for the year ended
December 31, 2009, 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.<B> </B></P>
<P align=center>14</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="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE><BR>
<TABLE
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cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left ><FONT color=#0000ff><B>1.7</B> </FONT></TD>
    <TD align=left width="95%"><FONT color=#0000ff><B>Capital Resources</B>
      </FONT></TD></TR></TABLE>
<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><U>(i) Credit Suisse Term Facility</U> </P>
<P align=justify>In February 2009, the Company entered into and drew upon 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 is repayable commencing
April 2010 and every second month thereafter in equal installments of US$4.2
until February 2012. The Facility bears interest at LIBOR plus 5 percent which
is due and payable bi-monthly. The long-term credit facility security provided
under the terms of the relevant agreements includes 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>The Facility requires a maximum total debt to total equity
ratio of 55%, a minimum tangible net worth of $150 million, a maximum production
cost threshold of $1.56 per lb of copper to December 31, 2009 and minimum debt
service coverage ratios of 135%. As at December 31, 2009, the Company is in
compliance with its financial covenants. The Company has the option at any time
after 18 months from February, 2009 to prepay the Facility. </P>
<P align=justify>The Company incurred financing fees of $1.7 million to obtain
the Facility. This amount is being amortized to interest expense using the
effective interest rate method. </P>
<P align=justify><U>(ii) Long-Term Equipment Loan</U> </P>
<P align=justify>During the year, the Company entered into a 36-month term
equipment loan agreement to finance the purchase of equipment for the Gibraltar
Mine. The principal amount of the loan is $9 million. The loan is secured by the
underlying equipment at the Gibraltar Mine. </P>
<P align=justify>The equipment loan is repayable commencing one month after
inception in 35 equal monthly installments in the amount of $0.225 million until
2012. The last installment is payable in 2012 in the amount of $2.8 million. The
equipment loan bears a fixed interest rate at 8.63% per annum.</P>
<P align=justify><I>Equity Financings </I></P>
<P align=justify>On April 15, 2009, the Company completed a &#147;bought deal&#148; short
form prospectus offering (the &#147;Offering&#148;) of 13,793,104 common shares at a price
of $1.45 per common share (the &#147;Offering Price&#148;). A syndicate of underwriters
led by Raymond James Ltd. and including Wellington West Capital Markets Inc.,
Canaccord Capital Corporation, Jennings Capital Inc. and Paradigm Capital Inc.
(collectively, the &#147;Underwriters&#148;) acted as Underwriters in connection with the
Offering. </P>
<P align=center>15</P>
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  <TR>
    <TD align=center><IMG src="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE>
<P align=justify>The Company granted to the Underwriters an over-allotment
option to purchase up to an additional 2,068,965 common shares at the Offering
Price. The Underwriters elected to exercise the over-allotment option in full,
resulting in aggregate gross proceeds of the total offering to the Company of
$23.0 million.</P>
<P align=justify>In addition, the Company also completed a private placement
financing of 3,628,015 shares at $1.45 per common share for gross proceeds of
$5.3 million. A finder's fee of 6% of the proceeds of the private placement
financing was paid. </P>
<P align=justify>The net proceeds from the Offering were used for discharge of
accounts payable and general working capital. </P>
<P align=justify>During the year ended December 31, 2009, 9,085,715 warrants
issued in December 2008 were exercised for total proceeds of $7.7 million and
1,161,749 options were exercised for the total proceeds of $1.4 million. </P>
<P align=justify><I>Other Financings </I></P>
<P align=justify>During the 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. Annual royalties
are 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 are recognized
as an expense during the year. </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 has 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 which is equal to the funds received by the
Company plus a 20% premium payable in the Company&#146;s shares or cash. GRLP also
has 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 is
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>As at the date of the MD&amp;A, the Company gave notice to the
GRLP unit holders of the Company&#146;s intention to exercise its &#147;call&#148; option
through the issuance 1,556,355 shares of the Company </P>
<TABLE
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  <TR vAlign=top>
    <TD align=left ><FONT color=#0000ff><B>1.8</B> </FONT></TD>
    <TD align=left width="95%"><FONT color=#0000ff><B>Off-Balance Sheet
      Arrangements</B> </FONT></TD></TR></TABLE>
<P align=justify>None. </P>
<TABLE
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  <TR vAlign=top>
    <TD align=left ><FONT color=#0000ff><B>1.9</B> </FONT></TD>
    <TD align=left width="95%"><FONT color=#0000ff><B>Transactions with
      Related Parties</B> </FONT></TD></TR></TABLE>
<P align=justify>Hunter Dickinson Services Inc. ("HDSI") (formerly Hunter
Dickinson Inc.) is a private company owned equally by several public companies,
one of which is Taseko. 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. The Company reimburses HDSI on a full
cost-recovery basis per agreement dated June 1, 2008. </P>
<P align=center>16</P>
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  <TR>
    <TD align=center><IMG src="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
<TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE>
<P align=justify>Costs for services rendered and costs incurred on behalf of the
Company by HDSI during the fiscal period ended December 31, 2009 were $2.7
million, as compared to $8.9 million in fiscal 2008. The decrease over prior
year is due to lower staffing levels required from HDSI as Taseko has added
additional full-time employees to its staff. </P>
<TABLE
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  <TR vAlign=top>
    <TD align=left ><FONT color=#0000ff><B>1.10</B> </FONT></TD>
    <TD align=left width="95%"><FONT color=#0000ff><B>Fourth Quarter</B>
      </FONT></TD></TR></TABLE>
<P align=justify>For the three months ended December 31, 2009 (&#147;Q4 2009&#148;),
Taseko generated operating profit of $15.6 million compared to an operating loss
of $40.4 million during the three months ended December 31, 2008 (&#147;Q5 2008&#148;).
</P>
<P align=justify>No negative pricing and inventory adjustments were recorded in
Q4 2009. A $21.9 million negative pricing adjustment was recorded in Q5 2008
related to the rapid deterioration in base metal prices, including copper and
molybdenum. The result of these adjustments was a net loss before tax and other
items of $46.9 million for Q5 2008 as compared to net income before tax and
other items of $3.0 million for Q4 2009. Other items include unrealized
(non-cash) marked-to-market loss attributable to derivative instruments related
to the copper hedging program in the amount of $4.2 million. No such losses were
recognized in Q5 2008 as the Company did not participate in a copper hedging
program during the comparative period.</P>
<P align=justify>The Company recognized revenues of $56.0 million in the three
months ended December 31, 2009 (&#147;Q4 2009&#148;), compared to $40.1 million in the
three months ended September 30, 2009 (&#147;Q3 2009&#148;) and $10.6 million in the three
months ended December 31, 2008 (&#147;Q5 2008&#148;). </P>
<P align=justify>There were no negative pricing or inventory adjustment in Q4
2009. Revenues in Q4 2009 consisted of copper concentrate sales of $52.9 million
compared to $34.7 million for Q3 2009 and $7.6 million for Q5 2008. Molybdenum
concentrate sales were $0.7 million in the quarter compared to $3 million for Q3
2009 and $1.2 million for Q5 2008. Silver concentrate sales were $0.6 million
for the quarter compared to $0.3 million for Q3 2009 and $0.5 million for Q5
2008 and copper cathode sales were $1.8 million for the quarter compared to $1.3
million for Q3 2009 and $1.3 million Q5 2008. </P>
<P align=justify>Cost of production for the quarter was $32.2 million, compared
to $24.5 million in Q3 2009, and $42.0 million in Q5 2008. Cost of production
consists of total production cost for the period of $31.9 million (Q3 2009 &#150;
$27.7 million; Q5 2008 &#150; $30.9 million) plus concentrate inventory adjustment of
$0.3 million (Q3 2009 &#150; inventory adjustment of $3.2 million; Q5 2008 &#150; negative
inventory adjustment of $11.1 million). Transportation and treatment costs for
the quarter amounted to $5.7 million (Q3 2009 &#150; $4.6 million; Q5 2008 &#150; $7.0
million).</P>
<P align=justify>Amortization expense of $2.5 million for the current quarter
was higher compared to Q3 2009 of $1.7 million and Q5 2008 of $2.0 million due
to the utilization of new equipment. Mining and milling assets are amortized
using the units of production method based on tons mined and milled during the
period and divided by the estimated tonnage to be mined and milled in the mine
plan.</P>
<P align=center>17</P>
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  <TR>
    <TD align=center><IMG src="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE>
<P align=justify>Exploration expenses for the quarter were $1.5 million,
compared to $0.8 million in Q3 2009, and $1.1 million in Q5 2008. </P>
<P align=justify>General and administrative (&#147;G&amp;A&#148;) expense for the quarter
was $2.2 million, compared to $1.8 million in Q3 2009, and $2.2 million in Q5
2008, which has been relatively constant throughout the periods.</P>
<P align=justify>Stock-based compensation expense for the quarter was $2.4
million, compared to a credit of $1.1 million in Q3 2009, and $1.1 million of
expense in Q5 2008 as a result of the amortization of stock-based compensation
on options granted during prior periods.</P>
<P align=justify>Interest and other income for the quarter was $1.7 million,
compared to $1.5 million in Q3 2009, and $1.3 million in Q5 2008. The slight
increase was mainly due to higher cash balances in Q4 2009. </P>
<P align=justify>Interest expense and accretion for the quarter was $1.9
million, compared to $2.0 million in Q3 2009 and $3.8 million in Q5 2008 due the
relative lower rates and accretion charges related to the Credit Suisse Term
Facility compared to the convertible bonds which were redeemed in Q3 2009. </P>
<P align=justify>The Company recorded foreign exchange gain for the quarter of
$0.7 million, compared to a gain of $3.1 million in Q3 2009, and a loss of $3.2
million in Q5 2008. As the Company reports in Canadian dollars, the gain is due
to the strengthening of the Canadian dollar and the revaluation of certain
US-dollar denominated liabilities at December 31, 2009. </P>
<P align=justify>The Company recorded no gains resulting from the change in
estimate of reclamation obligation since there were no extensions of estimated
mine life during the quarter, compared to $4.5 million in Q5 2008 when there was
an increase in the estimated mine life of the Gibraltar Mine. </P>
<P align=justify>The Company recorded a realized loss of $7.8 million (Q3 2009 &#150;
$3.6 million, Q5 2008 &#150; $Nil) and unrealized loss of $4.2 million (Q3 2009 &#150;
$8.8 million, Q5 2008 &#150; $Nil) on derivative instruments as a result of the
decrease in fair value of the producer call and put option contracts with Credit
Suisse which commenced during the 2009 fiscal year.</P>
<TABLE
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  <TR vAlign=top>
    <TD align=left ><FONT color=#0000ff><B>1.11</B> </FONT></TD>
    <TD align=left width="95%"><FONT color=#0000ff><B>Proposed
      Transactions</B> </FONT></TD></TR></TABLE>
<P align=justify>The Company announced in November 2009 that it would establish
a joint venture with Sojitz Corporation over the Gibraltar mine, whereby Sojitz
would pay $179.5 million to acquire a 25% interest in the mine. Taseko retains a
75% interest and continues to operate the mine. <I></I></P>
<TABLE
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  <TR vAlign=top>
    <TD align=left ><FONT color=#0000ff><B>1.12</B> </FONT></TD>
    <TD align=left width="95%"><FONT color=#0000ff><B>Critical Accounting
      Estimates</B> </FONT></TD></TR></TABLE>
<P align=justify>The Company's significant accounting policies are presented in
notes 3 and 4 of the audited consolidated statements for the fiscal period ended
December 31, 2009. The preparation of consolidated financial statements in
accordance with generally accepted accounting principles requires management to
select accounting policies and make estimates. Such estimates may have a
significant impact on the consolidated financial statements. These estimates
include: </P>
<P align=center>18</P>
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  <TR>
    <TD align=center><IMG src="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE>
<P align=justify><I>(a)</I><I> </I><I>Revenue Recognition </I></P>
<P align=justify>Revenue from the sales of metal in concentrate is recognized
when persuasive evidence of a sales agreement exists, the title and risk is
transferred to the customer, collection is reasonably assured, and the price is
reasonably determinable. Revenue from the sales of metal may be subject to
adjustment upon final settlement of shipment weights, assays and estimated metal
prices. Adjustments to revenue for metal prices are recorded monthly and other
adjustments are recorded on final settlement. Cash received in advance of
meeting these revenue recognition criteria is recorded as deferred revenue.</P>
<P align=justify>Under the Company&#146;s concentrate sales contracts, final copper
and molybdenum prices are set based on a specified future quotational period and
the average market metal price in that period. Typically, the quotational
periods for copper are either one or four months after the date of arrival at
the port of discharge and for molybdenum is three months after the month of
shipment. Revenues are recorded under these contracts at the time title passes
to the buyer and are based on the forward price for the expected settlement
period. The contracts, in general, provide for a provisional payment based upon
provisional assays and quoted metal prices. The price adjustment features in the
Company&#146;s receivables are treated as embedded derivatives for accounting
purposes and as such, are marked-to-market through earnings from the date of
sale through the date of final pricing.</P>
<P align=justify>In a period of unusual price volatility, as experienced in
fiscal 2008, the effect of mark-to-market price adjustments related to the
quantity of copper or molybdenum which remains to be settled could be
significant. For changes in quantities upon receipt of new information and
assay, the provisional sales quantities are adjusted as well. </P>
<P align=justify><I>(b)</I><I> </I><I>Asset Retirement Obligations (&#147;ARO&#148;)
</I></P>
<P align=justify>The Company recognizes any statutory, contractual or other
legal obligation related to the retirement of tangible long-lived assets when
such obligations are incurred, if a reasonable estimate of fair value can be
made. These obligations are measured initially at fair value and the resulting
costs are capitalized to the carrying value of the related asset. In subsequent
periods, the liability is adjusted for the accretion of the discount and any
changes in the amount or timing of the underlying future cash flows. The asset
retirement cost is amortized to operations over the life of the asset. Changes
resulting from revisions to the timing or the amount of the original estimate of
undiscounted cash flows are recognized as an increase or a decrease in the
carrying amount of the liability, and the related asset retirement cost is
capitalized as part of the carrying amount of the related long-lived asset. In
the event the required decrease in the asset retirement cost is in excess of the
carrying value, the excess amount is recorded as a change in estimate in the
statement of operations. </P>
<P align=justify>The ARO are based on management&#146;s estimates, taking into
account various factors such as the reclamation method, legal requirements, and
current technology. The estimated amount of the reclamation cost is adjusted for
estimated inflation at 2.5% per year, and in 2032 dollars is expected to be
spent over a period of approximately three years beginning in 2032. After
discounting the estimated reclamation costs to be spent in 2032, a net present
value of the ARO was estimated at $9.8 million as at December 31, 2009 using
credit-adjusted risk free rates of 7.1% to 10%. These individual assumptions can
be subject to change and can materially affect the recognized amount of the
liability. </P>
<P align=center>19</P>
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  <TR>
    <TD align=center><IMG src="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE>
<P align=justify><I>(c) Mineral Resources and Reserves </I></P>
<P align=justify>The mineral reserves and resources in the Company&#146;s mineral
properties are determined in accordance with <I>National Instrument 43-101,
&#147;Standards of Disclosure for Mineral Projects&#148;</I>, issued by the Canadian
Securities Administrators (&#147;CSA&#148;). Management uses numerous assumptions in
estimating mineral reserves and mineral resources.<I> </I>The accuracy of any
reserve or resource estimate is a function of the quantity<I> </I>and quality of
available data and of the assumptions made and judgments used in engineering and
geological interpretation. </P>
<P align=justify>There are numerous uncertainties inherent in estimating mineral
reserves and mineral resources. Differences between management&#146;s assumptions and
market conditions could have a material effect in the future on the Company&#146;s
financial position and results of operations. </P>
<P align=justify><I>(d)</I><I> </I><I>Depletion, Depreciation and
Impairment</I></P>
<P align=justify>The majority of the Company&#146;s plant and equipment are amortized
using the units of production method based on tons mined or milled, divided by
the estimated tonnage to be recovered as outlined in the mineral reserve
estimate.</P>
<P align=justify>Mineral property interests, plan and equipment are reviewed for
impairment whenever events or changes in circumstances indicate that the
carrying amount of an asset may not be recoverable. Recoverability of assets to
be held and used is measured by a comparison of the carrying amount of an asset
to estimated undiscounted future cash flows expected to be generated by the
asset. No impairment was identified for the Gibraltar Mine and the Company&#146;s
other exploration projects for the year ended December 31, 2009 as the Company
concluded that there were no significant impairment indicators. </P>
<P align=justify>If the Company determines that there has been an impairment
because its prior estimates of future cash flows have proven to be inaccurate
due to reductions in the price of copper and molybdenum, increases in the costs
of production, and/or reductions in the amount of reserves expected to be
recovered, the Company would be required to write down the recorded value of its
mineral property interest, plant and equipment, which would reduce the Company&#146;s
earnings and net assets. </P>
<P align=justify><I>(e) Income Taxes </I></P>
<P align=justify>The Company uses the asset and liability method of accounting
for income taxes. Under this method, future income tax assets and liabilities
are computed based on differences between the carrying amounts of assets and
liabilities on the balance sheet and their corresponding tax values, generally
using the substantively enacted or enacted income tax rates expected to apply to
taxable income in the years in which those temporary differences are expected to
be recovered or settled. Future income tax assets also result from unused loss
carry forwards, resource-related pools, and other deductions. Future tax assets
are recognized to the extent that they are considered more likely than not to be
realized. The valuation of future income tax assets is adjusted, if necessary,
by the use of a valuation allowance to reflect the estimated realizable amount.
</P>
<P align=center>20</P>
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    <TD align=center><IMG src="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE>
<P align=justify><I>(f) Stock-based Compensation </I></P>
<P align=justify>The Company records all stock-based payments using the fair
value method. Under the fair value method, stock-based payments are measured at
the fair value of the consideration received or the fair value of the equity
instruments issued or liabilities incurred, whichever is more reliably
measurable, and are charged to operations over the vesting period. Management
uses several assumptions such as the Company&#146;s stock price volatility, the risk
free interest rate and the expected life of the options in order to estimate the
fair value of the stock-based compensation. These assumptions can be subject to
change and can materially affect the recognized amount of stock-based
compensation. </P>
<P align=justify><I>(g) Inventories </I></P>
<P align=justify>Finished goods and work-in-process are valued at the lower of
the average production costs or net realizable value. The assumptions used in
the valuation of work-in-process inventories include estimates of copper and
molybdenum contained in the stockpiles and an assumption of the copper price
expected to be realized when the stockpiles are processed into concentrate. If
these estimates or assumptions prove to be inaccurate, the Company could be
required to write down the recorded value of its work-in-process inventories,
which would reduce the Company&#146;s earnings and working capital. </P>
<P align=justify><I>(h) Copper Hedging Program </I></P>
<P align=justify>The Company&#146;s copper hedging contracts are recorded at fair
value. Changes in the fair values of the copper hedging contracts are recognized
in net income for the period. Several assumptions such as copper&#146;s price
volatility, the risk free interest rate and copper forward curves are used in
order to estimate the fair value of the copper hedges. These assumptions can be
subject to change and can materially affect the recognized amount of both the
realized and unrealized gains (losses) on derivative financial instruments
reflected in the Company&#146;s financial statements. </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 ><FONT color=#0000ff><B>1.13</B> </FONT></TD>
    <TD align=left width="95%"><FONT color=#0000ff><B>Change in Accounting
      Policies including Initial Adoption</B> </FONT></TD></TR></TABLE>
<P align=justify>Effective January 1, 2009, the Company adopted the following
new accounting standards issued by the Canadian Institute of Chartered
Accountants (&#147;CICA&#148;).</P>
<P align=justify><I>(a) Section 3064 &#150; Goodwill and Intangibles </I></P>
<P align=justify>The Canadian Accounting Standards Board ("AcSB") issued CICA
Handbook Section 3064 which replaces Section 3062, <I>Goodwill and Other
Intangible Assets</I>, and Section 3450, <I>Research and Development Costs</I>.
This new section establishes revised standards for the recognition, measurement,
presentation and disclosure of goodwill and intangible assets. The Company
evaluated the impact of this new standard and concluded that this standard did
not have a significant impact on the Company&#146;s consolidated financial
statements. </P>
<P align=center>21</P>
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style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD align=center><IMG src="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE>
<P align=justify><I>(b) EIC 173 &#150; Credit Risk and the Fair value of Financial
Assets and Financial Liabilities </I></P>
<P align=justify>The AcSB issued EIC-173 which requires the Company to consider
its own credit risk as well as the credit risk of its counterparties when
determining the fair value of financial assets and liabilities, including
derivative financial instruments. The standard is effective for the first
quarter of fiscal 2009 and is required to be applied retrospectively without
restatement of prior periods. The adoption of this standard did not have an
impact on the valuation of financial assets or liabilities of the Company. </P>
<P align=justify><I>(c) EIC 174 &#150; Mining Exploration Costs </I></P>
<P align=justify>The AcSB issued EIC-174, &#147;<I>Mining Exploration Costs&#148;,
</I>which provides guidance to mining enterprises related to the measurement of
exploration costs and the conditions that a mining enterprise should consider
when determining the need to perform an impairment review of such costs. The
accounting treatments provided in EIC-174 have been applied in the preparation
of the Company&#146;s financial statements and did not have an impact on the
valuation of the Company&#146;s mineral properties. </P>
<P align=justify><I>(</I><I>d) Fair Value Hierarchy</I><I> </I></P>
<P align=justify>During the year, CICA Handbook Section 3862, <I>Financial
Instruments &#150; Disclosures, </I>was amended to require enhanced disclosures about
the relative reliability of the data, or &#147;inputs&#148;, that<I> </I>an entity uses to
measure the fair values of its financial instruments. It requires financial
instruments measured at fair value to be classified into one of three levels in
the &#147;fair value hierarchy&#148; according to the relative reliability of the inputs
used to estimate the fair values. The Company has provided this disclosure in
its consolidated financial statements. </P>
<P align=justify><I>(e) Amendments to CICA 3855</I> </P>
<P align=justify>The CICA amended Handbook Section 3855-<I>Financial
Instruments-Recognition and Measurement</I> to provide additional guidance
concerning the assessment of embedded derivatives upon reclassification of a
financial asset out of the held-for-trading category, amend the definition of
loans and receivables, amend the categories of financial assets into which debt
instruments are required or permitted to be classified, amend the impairment
guidance for held-to-maturity debt instruments and require reversal of
impairment losses on available-for-sale debt instruments when conditions have
changed. These amendments were effective for fiscal years beginning on or after
November 1, 2008. These new standards did not have a material impact on the
Company&#146;s consolidated financial statements. </P>
<P align=justify><I>(f) 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. 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></TABLE>
<P align=center>22 </P>
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cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD align=center><IMG src="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&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%" >&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 >&nbsp;</TD>
    <TD></TD>
    <TD>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.</TD>
  </TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>      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. </P>
<P align=justify>The IFRS 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 Q2 2010. </P>
<P align=center>23</P>
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cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD align=center><IMG src="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
<TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE>
<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>
  <P>to apply the requirements of IFRS 3, <I>Business Combinations,
  </I>prospectively from the Transition Date; </P>
  <LI>
  <P>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; </P>
  <LI>
  <P>to apply the borrowing cost exemption and apply IAS 23, <I>Borrowing Costs,
  </I>prospectively from the Transition Date; and </P>
  <LI>
  <P>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. </P></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=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=center>24</P>
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  <TR>
    <TD align=center><IMG src="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE>
<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. </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=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=center>25</P>
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  <TR>
    <TD align=center><IMG src="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE>
<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 it is located, the obligation for which is incurred
either when the item is acquired or as a consequence of having used the item
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=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 out flows 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=center>26</P>
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  <TR>
    <TD align=center><IMG src="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE>
<P align=justify><B><U>IFRS Impact on Our Organization</U></B><B> </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 Q3 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 Q3 2010. </P>
<TABLE
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cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left ><FONT color=#0000ff><B>1.14</B> </FONT></TD>
    <TD align=left width="95%"><FONT color=#0000ff><B>Financial Instruments
      and Other Instruments</B> </FONT></TD></TR></TABLE>
<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 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 accompanying audited consolidated financial statements 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><EM>) </EM></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></TABLE>
<P align=center>27</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="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&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%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>c.</I><EM>) </EM></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 style="MARGIN-LEFT: 10%" align=justify>A 10% change of the US dollar against
the Canadian dollar as at December 31, 2009 would have changed earnings before
income taxes by approximately $13 million for the year ended December 31, 2009.
This analysis assumes that all other variables, in particular interest rates,
remain constant. </P>
<P style="MARGIN-LEFT: 10%" align=justify><I>ii) Interest rate risk </I></P>
<P style="MARGIN-LEFT: 10%" align=justify>The Company is exposed to interest
rate risk on its credit facility with Credit Suisse, equipment loans and capital
leases. The credit facility bears interest at LIBOR plus 5%. The equipment loans
and capital leases bear interest at a fixed rate. A change of 10% in the LIBOR
rate for the year ended December 31, 2009 would have changed earnings before
income taxes by approximately $0.086 million for the year ended December 31,
2009. This assumes all other variables, in particular foreign currency rates,
remain constant. </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 Company's Gibraltar mine, it may not be economically
feasible to continue production. </P>
<P align=center>28</P>
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<br>
<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="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>A 10% change in copper and molybdenum
prices during the year ended December 31, 2009 would have affected net earnings
by approximately $16 million. This analysis assumes that all other variables
remain constant. </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. The
Company intends to review its hedge position from time to time in light of
prevailing market and economic conditions. </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 ><FONT color=#0000ff><B>1.15</B> </FONT></TD>
    <TD align=left width="95%"><FONT color=#0000ff><B>Other MD&amp;A
      Requirements</B> </FONT></TD></TR></TABLE>
<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>
<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 nowrap ><FONT color=#0000ff><B>1.15.1</B> &nbsp;</FONT></TD>
    <TD align=left width="95%"><FONT color=#0000ff><B>Additional Disclosure
      for Venture Issuers without Significant Revenue</B>
</FONT></TD></TR></TABLE>
<P align=justify>Not applicable. The Company is not a Venture Issuer. </P>
<P align=center>29</P>
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noShade SIZE=5>
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<br>
<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="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&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 height="15" align=left nowrap ><FONT color=#0000ff><B>1.15.2</B> &nbsp;</FONT></TD>
    <TD align=left width="95%"><FONT color=#0000ff><B>Disclosure of
      Outstanding Share Data</B> </FONT></TD></TR></TABLE>
<P align=justify>The following details the share capital structure as at March
16, 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>
<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 style="BORDER-BOTTOM: #000000 1px solid">Expiry date </TD>
    <TD
      width="20%" align=center style="BORDER-BOTTOM: #000000 1px solid">Exercise price </TD>
    <TD
      width="20%" align=right style="BORDER-BOTTOM: #000000 1px solid">Number </TD>
  <TD
      width="20%" align=right style="BORDER-BOTTOM: #000000 1px solid">Number </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Common shares </TD>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
    <TD align=center bgColor=#e6efff>&nbsp; </TD>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
  <TD align=right bgColor=#e6efff>184,484,831 </TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
    <TD>&nbsp; </TD>
  <TD>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Share purchase option </TD>
    <TD align=right bgColor=#e6efff>03-Jul-10 </TD>
    <TD align=center bgColor=#e6efff>$4.03 </TD>
    <TD align=right bgColor=#e6efff>60,000 </TD>
  <TD align=left bgColor=#e6efff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=right>28-Sep-10 </TD>
    <TD align=center>$1.15 </TD>
    <TD align=right>90,000 </TD>
  <TD align=left>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
    <TD align=right bgColor=#e6efff>24-Feb-11 </TD>
    <TD align=center bgColor=#e6efff>$4.50 </TD>
    <TD align=right bgColor=#e6efff>93,000 </TD>
  <TD align=left bgColor=#e6efff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=right>28-Mar-11 </TD>
    <TD align=center>$2.18 </TD>
    <TD align=right>342,000 </TD>
  <TD align=left>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
    <TD align=right bgColor=#e6efff>28-Mar-11 </TD>
    <TD align=center bgColor=#e6efff>$2.63 </TD>
    <TD align=right bgColor=#e6efff>40,000 </TD>
  <TD align=left bgColor=#e6efff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=right>22-Aug-11 </TD>
    <TD align=center>$4.09 </TD>
    <TD align=right>15,000 </TD>
  <TD align=left>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
    <TD align=right bgColor=#e6efff>10-Dec-11 </TD>
    <TD align=center bgColor=#e6efff>$1.00 </TD>
    <TD align=right bgColor=#e6efff>1,298,800 </TD>
  <TD align=left bgColor=#e6efff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=right>24-Feb-12 </TD>
    <TD align=center>$3.07 </TD>
    <TD align=right>165,000 </TD>
  <TD align=left>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
    <TD align=right bgColor=#e6efff>24-Feb-12 </TD>
    <TD align=center bgColor=#e6efff>$4.50 </TD>
    <TD align=right bgColor=#e6efff>135,000 </TD>
  <TD align=left bgColor=#e6efff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=right>07-Jul-12 </TD>
    <TD align=center>$1.90 </TD>
    <TD align=right>14,000 </TD>
  <TD align=left>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
    <TD align=right bgColor=#e6efff>30-Jul-12 </TD>
    <TD align=center bgColor=#e6efff>$2.17 </TD>
    <TD align=right bgColor=#e6efff>57,000 </TD>
  <TD align=left bgColor=#e6efff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=right>15-Jan-13 </TD>
    <TD align=center>$4.77 </TD>
    <TD align=right>1,043,500 </TD>
  <TD align=left>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
    <TD align=right bgColor=#e6efff>10-Dec-13 </TD>
    <TD align=center bgColor=#e6efff>$1.00 </TD>
    <TD align=right bgColor=#e6efff>2,915,000 </TD>
  <TD align=left bgColor=#e6efff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=right>12-Jan-14 </TD>
    <TD align=center>$1.15 </TD>
    <TD align=right>2,010,334 </TD>
  <TD align=left>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
    <TD align=right bgColor=#e6efff>21-Apr-14 </TD>
    <TD align=center bgColor=#e6efff>$1.71 </TD>
    <TD align=right bgColor=#e6efff>1,546,834 </TD>
  <TD align=left bgColor=#e6efff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=right>2-Dec-14 </TD>
    <TD align=center>$4.14 </TD>
    <TD align=right>150,000 </TD>
  <TD align=left>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
    <TD align=right bgColor=#e6efff>5-Jan-15 </TD>
    <TD align=center bgColor=#e6efff>$4.46 </TD>
    <TD align=right bgColor=#e6efff>1,925,000 </TD>
  <TD align=left bgColor=#e6efff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=right>15-Jan-15 </TD>
    <TD align=center>$4.14 </TD>
    <TD align=right>150,000 </TD>
  <TD align=left>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
    <TD align=right bgColor=#e6efff>28-Jan-15 </TD>
    <TD align=center bgColor=#e6efff>$5.00 </TD>
    <TD align=right bgColor=#e6efff>210,000 </TD>
  <TD align=left bgColor=#e6efff>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=right>16-Feb-15 </TD>
    <TD align=center>$4.59 </TD>
    <TD align=right>120,000 </TD>
  <TD align=left>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
    <TD align=center bgColor=#e6efff>&nbsp; </TD>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
  <TD align=right bgColor=#e6efff>12,380,468 </TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
    <TD>&nbsp; </TD>
  <TD>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff colSpan=3>Preferred shares redeemable into
      Taseko Mines Limited common shares </TD>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
    <TD align=right bgColor=#e6efff>12,483,916</TD>
  </TR></TABLE>
<P align=center>30</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="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&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 nowrap ><FONT color=#0000ff><B>1.15.3</B> &nbsp;</FONT></TD>
    <TD align=left width="95%"><FONT color=#0000ff><B>Internal Controls over
Financial Reporting Procedures</B> </FONT></TD></TR></TABLE>
<P align=justify>The Company's management is responsible for establishing and
maintaining adequate internal control over financial reporting. The Company&#146;s
internal control system was designed to provide reasonable assurance to the
Company&#146;s management and the board of directors regarding the preparation and
fair presentation of published financial statements. Internal control over
financial reporting includes those policies and procedures that: (1) pertain to
the maintenance of records that in reasonable detail accurately and fairly
reflect the transactions and dispositions of the assets of the Company, (2)
provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with GAAP, and that
receipts and expenditures of the Company are being made only in accordance with
authorizations of management and directors of the Company, and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of the Company&#146;s assets that could have a
material effect on the financial statements. All internal control systems, no
matter how well designed, have inherent limitations. Therefore, even those
systems determined effective can provide only reasonable assurance with respect
to financial statement preparation and presentation. </P>
<P align=justify>The Company&#146;s management, with the participation of the Chief
Executive Officer and the Chief Financial Officer, has evaluated the
effectiveness of internal control over financial reporting based on the
framework and criteria established in Internal Control &#150; Integrated Framework,
issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Based on this evaluation, the Company&#146;s management has concluded that internal
control over financial reporting was effective as of December 31, 2009 to
provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements in accordance with GAAP. </P>
<P align=justify>There have been no significant changes in internal controls
over financial reporting during the fiscal period ended December 31, 2009 that
could have materially affected or are reasonably likely to materially affect the
Company's internal control over financial reporting. </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 nowrap><FONT color=#0000ff><B>1.15.4</B> &nbsp;</FONT></TD>
    <TD align=left width="95%"><FONT color=#0000ff><B>Disclosure Controls and
      Procedures</B> </FONT></TD></TR></TABLE>
<P align=justify>Disclosure controls and procedures are those controls and
procedures that are designed to ensure that the information required to be
disclosed in the filings under applicable securities regulations is recorded,
processed, summarized and reported within the time periods specified. As at
December 31, 2009, under the supervision and with the participation of the
Company&#146;s management, including the Chief Executive the Officer and Chief
Financial Officer, the Company conducted an evaluation of the effectiveness of
the design and operation of the Company&#146;s disclosure controls and procedures.
Based on this evaluation, the Chief Executive Officer and the Chief Financial
Officer have concluded that, as of the end of the period covered by this report,
the Company&#146;s disclosure controls and procedures were effective. </P>
<P align=justify>There have been no significant changes in the Company's
disclosure controls and procedures during the fiscal period ended December 31,
2009 that could have materially affected or are reasonably likely to materially
affect the Company&#146;s disclosure controls and procedures. </P>
<P align=center>31 </P>
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<br>
<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="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&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 nowrap ><FONT color=#0000ff><B>1.15.5</B> &nbsp;</FONT></TD>
    <TD align=left width="95%"><FONT color=#0000ff><B>Non GAAP Measures</B>
</FONT></TD></TR></TABLE>
<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 following table provides a reconciliation of the
non-GAAP measures to reported GAAP measures: </P>
<P align=justify><B>Cash Production Cost </B></P>

<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 bgColor=#eeeeee><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="25%"
    bgColor=#eeeeee><B>Twelve months ending</B> <BR>
    <B>31-Dec-09</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>GAAP operating costs (in thousands of CAD)</B> <BR>Less:
      inventory adjustments <BR>Less: molybdenum credits <BR>Less: silver
      credits </TD>
    <TD align=right width="25%"><B>$ 109,964</B> <BR>
      (324) <BR>(8,786)
    <BR>(2,001) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Net operating costs (in thousands of CAD)
      <BR><BR>Total copper production (in thousands of lbs) <BR>Cost per lb
      (CAD) <BR>Average exchange rate </TD>
    <TD align=right width="25%" bgColor=#ffffff>98,853 <BR>
      <BR>70,347 <BR>1.41
    <BR>1.1308 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><B>Cost per lb (USD)</B> <BR>GAAP treatment
      and transportation costs (in thousands of CAD) <BR>Total copper sales (in
      thousands of lbs) <BR>Treatment and transportation per lb of copper (in
      CAD) <BR>Average exchange rate </TD>
    <TD align=right width="25%" bgColor=#ffffff><B>$ 1.24</B> <BR>
      24,089
    <BR>71,096 <BR>0.34 <BR>1.1308 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><B>Treatment and transportation cost per lb
      (in USD)</B> <BR><B>Total cash cost per lb of copper (in USD)</B> </TD>
    <TD align=right width="25%" bgColor=#ffffff><B>$ 0.30</B> <BR>
      <B>$
1.54</B> </TD></TR></TABLE>
<P align=center>32</P>
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noShade SIZE=5>
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<br>
<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="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&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 nowrap ><FONT color=#0000ff><B>1.15.6</B> &nbsp;</FONT></TD>
    <TD align=left width="95%"><FONT color=#0000ff><B>Risk Factors</B>
</FONT></TD></TR></TABLE>
<P align=justify>There are a number of risks that may have a material and
adverse impact on the future operating and financial performance of Taseko and
could cause the Company&#146;s operating and financial performance to differ
materially from the estimates described in forward-looking statements relating
to the Company.</P>
<P align=justify><B>Volatility in Metals Prices</B></P>
<P align=justify>The profitability of the Gibraltar Mine and the financial
results, exploration, development and mining activities on the Company&#146;s other
properties, are directly related and sensitive to the market price of copper,
gold, molybdenum and other metals. Metal prices fluctuate widely and are
affected by numerous factors beyond the Company&#146;s control, including global
supply and demand, expectations with respect to the rate of inflation, the
exchange rates of the United States dollar to other currencies, interest rates,
forward selling by producers, production and cost levels in major producing
regions, global or regional political, economic or financial situations and a
number of other factors such as the sale or purchase of commodities by various
commodity traders, production costs of major mineral producing countries and the
cost of substitutes. </P>
<P align=justify><B>Financing </B></P>
<P align=justify>The Company has been successful at financing its projects and
operations over the years. However, the Company&#146;s ability to continue its
exploration, assessment, development and operational activities will depend on
the resource industry generally, which is cyclical in nature, and which may, in
turn, affect the Company&#146;s ability to attract financing, including joint venture
financing, debt or bank financing, equity financing or production financing
arrangements. Failure to obtain, or difficulty or delay in obtaining, requisite
financing could result in delay of certain projects or postponement of further
exploration, assessment or development of certain properties or projects.
Financing through the issuance of equity will result in dilution of existing
shareholders. </P>
<P align=justify><B>Taseko&#146;s Prosperity Project Risks </B></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. The Company expects the Federal
environmental assessment process to be complete by mid 2010. Applications for
Provincial permits are being prepared and are expected to be submitted before
the end of March 2010. Failure to obtain such certificates and permits in a
timely manner or at all will delay or even lead to abandonment of the Prosperity
Project which would likely negatively affect the Company&#146;s share price. </P>
<P align=justify>Furthermore, the feasibility assumes specified, long-term price
levels for gold and copper. The prices of these metals have historically been
volatile, and the Company has no control of or influence on its price, which is
determined in international markets. There can be no assurance that the price of
gold or copper will remain at current levels or that it will not decline below
the prices assumed in the feasibility study.</P>
<P align=justify>The Prosperity Project will require substantial financing,
including a possible combination of debt and equity financing. There can be no
assurance that debt and/or equity financing will be available on acceptable
terms. Other general risks include those typical of very large construction
projects, including the general uncertainties inherent in engineering and
construction costs, the need to comply with generally increasing environmental
regulation, and accommodation of local and community concerns. </P>
<P align=center>33</P>
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<br>
<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="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE>
<P align=justify>The economics of the feasibility study are sensitive to the US
Dollar and Canadian Dollar exchange rate, and this rate has been subject to
large fluctuations in the last several years. </P>
<P align=justify><B>Increased Costs Could Affect Profitability </B></P>
<P align=justify>The cash cost of production is frequently subject to great
variation from one year to the next due to a number of factors, such as changing
strip ratios, ore grade, metallurgy, cost of supplies and services (for example,
electricity and fuel) and the exchange rate of supplies and services denominated
in foreign currencies. If these costs used in connection with the Company&#146;s
operations were to increase significantly, and remain at such levels for a
substantial period, the Company&#146;s cash flows from operations may be negatively
affected. The Company prepares estimates of future production and unit cash
costs of production annually. No assurance can be given that such estimates will
be achieved. Failure to achieve production or cost estimates or material
increases in operating or capital costs could have an adverse impact on the
Company&#146;s future cash flows, profitability, results of operations and financial
condition. </P>
<P align=justify><B>Taseko&#146;s Harmony Project and Aley Project Contain No Known
Reserves of Ore</B></P>
<P align=justify>Although there are known bodies of mineralization on the
Harmony and Aley Projects, there are currently no known reserves or body of
commercially viable ore and additional work is required before Taseko can
ascertain if any mineralization may be economic. Exploration for minerals is a
speculative venture necessarily involving substantial risk. If the expenditures
Taseko makes on these properties do not result in discoveries of commercial
quantities of ore, the exploration and acquisition expenditures will be written
off and the value of Taseko stock could be negatively impacted. Under SEC
reserve recognition rules, the Prosperity Project does not contain any reserves.
</P>
<P align=justify><B>Exchange Rate Risk</B></P>
<P align=justify>The Company is subject to currency exchange rate risk because
prices of copper and molybdenum are denominated in United States dollars and,
accordingly, the Company&#146;s revenues will be received in United States dollars.
The Company&#146;s expenses are almost entirely denominated in Canadian dollars. The
Company currently does not engage in foreign exchange hedging. Any strengthening
in the Canadian dollar will negatively impact the profitability of the Company&#146;s
mining operations.</P>
<P align=justify><B>Uncertain Project Realization Values</B></P>
<P align=justify>The Company annually undertakes a detailed review of the
life-of-mine plans for its operating properties and an evaluation of the
Company&#146;s portfolio of development projects, exploration projects and other
assets. The recoverability of the Company&#146;s carrying values of its operating and
development properties are assessed by comparing carrying values to estimated
future net cash flows from each property. </P>
<P align=justify>Factors which may affect carrying values include, but are not
limited to: copper, molybdenum and gold prices; capital cost estimates; mining,
processing and other operating costs; grade and metallurgical characteristics of
ore; and mine design and timing of production. In the event of a prolonged
period of depressed copper prices, the Company may be required to take
additional material write-downs of its operating and development properties.
</P>
<P align=center>34</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="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE>
<P align=justify><B>General Mining Risks</B></P>
<P align=justify>Mining is an inherently risky business with large capital
expenditures and cyclical metals markets. Factors beyond the control of Taseko
will affect the marketability of any minerals discovered and mined. The mining
industry in general is intensely competitive and there is no assurance that,
even if commercial quantities of ore are discovered at the Prosperity Project
and the Harmony Project, a profitable market will exist for the sale of minerals
produced by Taseko. Factors beyond the control of Taseko may affect the
marketability of any substances discovered. Metal prices, in particular copper,
molybdenum and gold prices, have fluctuated widely in recent years. Prices are
determined in international markets over which the Company has no influence.
</P>
<P align=justify>The operations of Taseko may require licenses and permits from
various governmental authorities. There can be no assurances that Taseko will be
able to obtain all necessary licenses and permits that may be required to carry
out exploration, development and operations at its projects. </P>
<P align=justify>Although the Company maintains high environmental standards for
all of its projects, there are almost always public concerns about new mining
projects and any significant public opposition to the Prosperity Project will
increase the likelihood that its development is delayed or prevented.</P>
<P align=justify>Taseko also competes with many companies possessing far greater
financial resources and technical facilities for the acquisition of mineral
concessions, claims, leases and other mineral interests, as well as for the
recruitment and retention of qualified employees. </P>
<P align=justify>Typical mining risks are also that estimated reserves are not
of the size or grade estimated, and adverse geological or ground conditions,
adverse weather conditions, potential labour problems, and availability and cost
of equipment procurement and repairs can impact operations. </P>
<P align=justify><B>Taseko&#146;s Share Price is Volatile</B></P>
<P align=justify>In recent years, the market price of a publicly traded stock,
especially a resource issuer like Taseko, has experienced a high level of price
and volume volatility. Taseko&#146;s shares have ranged between $0.36 and $20.00 in
the last 18 years and between approximately $6.28 and $0.69 in the last three
years. </P>
<P align=justify>The wide fluctuation in market prices of securities may not
necessarily be related to the operating performance, underlying asset values or
prospects of the Company. Other factors impacting share prices may include the
strength of the economy, market perceptions of the attractiveness of particular
industries, and the breadth of the public market for the stock. The price of the
securities of the Company is also likely to be significantly affected by
short-term changes in commodity prices, other precious metal prices or other
mineral prices, currency exchange fluctuations and the political environment.
The effect of these and other factors on the market price of the common shares
on the TSX and the NYSE Amex suggest that Taseko&#146;s shares will continue to be
volatile. </P>
<P align=center>35</P>
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<br>
<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="tasekologo.jpg" border=0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>YEAR ENDED DECEMBER 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>MANAGEMENT'S DISCUSSION AND ANALYSIS</B> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
  align=center>&nbsp;</TD></TR></TABLE>
<P align=justify><B>Environmental Considerations</B></P>
<P align=justify>The estimation of the existing reclamation liability related to
the Gibraltar Mine is not free from uncertainty. Mining always entails risks of
spills, pollution, reclamation, and other liabilities and obligations, which
like other mining companies, may adversely affect Taseko. If these challenges
are not properly assessed or if rules become more onerous, Taseko could be
materially adversely affected. </P>
<P align=justify><B>Significant Potential Equity Dilution</B></P>
<P align=justify>Taseko had 12,380,468 share purchase options in-the-money at
March 16, 2010. In addition, shares are potentially issuable in 2011 on
conversion of Gibraltar&#146;s class of Preferred Shares issued for the Harmony
project. All of the foregoing may likely act as an upside constraint on the
trading price of Taseko&#146;s shares. </P>
<P align=center>36 </P>
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<DOCUMENT>
<TYPE>EX-99.8
<SEQUENCE>9
<FILENAME>exhibit99-8.htm
<DESCRIPTION>CONSENT OF KPMG LLP
<TEXT>
<HTML>
<HEAD>
   <TITLE>Taseko Mines Limited.: Exhibit 99.8 - Filed by newsfilecorp.com</TITLE>
   <META name="HandheldFriendly" content="true">
</HEAD>

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

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<P align=justify><B>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
</B></P>
<P align=justify>To the Board of Directors of Taseko Mines Limited<B> </B></P>
<P align=justify>We consent to the inclusion in this annual report on Form 40-F
of: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>our Report of Independent Registered Public Accounting Firm dated March 31,
  2010 on the consolidated balance sheets of Taseko Mines Limited ("the
  Company") and subsidiaries as of December 31, 2009 and 2008 and the related
  consolidated statements of operations and comprehensive income (loss),
  shareholders&#146; equity and cash flows for the year ended December 31, 2009, the
  fifteen month period ended December 31, 2008 and the year ended September 30,
  2007; and </P>
  <LI>
  <P>our Report of Independent Registered Public Accounting Firm dated March 31,
  2010 on the Company&#146;s internal control over financial reporting as of December
  31, 2009 </P></LI></UL>
<P align=justify>each of<B> </B>which is contained in this annual report on Form
40-F of the Company for the fiscal year ended December 31, 2009. Our Report of
Independent Registered Public Accounting Firm refers to changes in accounting
policies described in note 4(d) to the consolidated financial
statements.</P><IMG src="kpmgsignature.jpg" border=0> <BR>
<P align=justify>Chartered Accountants </P>
<P align=justify>Vancouver, Canada <BR>March 31, 2010 </P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="60%">KPMG LLP is a Canadian limited liability
      partnership and a member firm of the KPMG </TD>
    <TD align=left width="20%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="60%">network of independent member firms affiliated
      with KPMG International Cooperative </TD>
    <TD align=left width="20%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="60%">(&#147;KPMG International&#148;), a Swiss entity. </TD>
    <TD align=left width="20%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="60%">KPMG Canada provides services to KPMG LLP. </TD>
    <TD align=left width="20%">&nbsp;</TD></TR></TABLE></DIV><BR>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.9
<SEQUENCE>10
<FILENAME>exhibit99-9.htm
<DESCRIPTION>CONSENT OF SCOTT JONES, P. ENG.
<TEXT>
<HTML>
<HEAD>
   <TITLE>Taseko Mines Limited: Exhibit 99.9 - 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> <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=right style="BORDER-BOTTOM: #000000 1px solid"><img src="tasekologo.jpg" border="0"></TD>
  </TR>
  <TR vAlign=top>
    <TD align=right><i>Building wealth through developing and operating major copper &amp; gold mines</i> </TD>
    </TR></TABLE>

<P align=justify>March 31, 2010 </P>
<P align=justify>VIA EDGAR</P>
<P align=justify>United States Securities and Exchange Commission</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>Re: </TD>
    <TD align=left width="95%">Taseko Mines Limited (the "<B>Company</B>")
  </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="95%">Annual Report on Form 40-F </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="95%">Consent of Expert </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="95%">&nbsp;</TD></TR></TABLE>
<P align=justify>This letter is provided in connection with the Company's Form
40-F annual report for the year ended December 31, 2009 (the &#147;<B>Annual
Report</B>&#148;) to be filed by the Company with the United States Securities and
Exchange Commission (the &#147;SEC&#148;). The Annual Report incorporates by reference the
Annual Information Form of the Company for the year ended December 31, 2009.</P>
<P align=justify> I
  hereby consent to the use of my name in connection with reference to my
  involvement in the preparation of the following technical reports (the
  "<B>Technical </B><B>Reports</B>"): </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>&#147;Technical Report on the 344 million tonne increase in mineral reserves at
  the Prosperity Gold &#150; Copper Project&#148; dated December 17, 2009 </P>
  <LI>
  <P>&#147;Technical Report on the 105 million ton increase in the Mineral Reserves
  at the Gibraltar Mine, British Columbia&#148; dated January 23, 2009. </P></LI></UL>
<P align=justify>and to references to the Technical Reports, or portions
thereof, in the Annual Report and to the inclusion and incorporation by
reference of the information derived from the Technical Reports in the Annual
Report. </P>
<P align=justify>Yours truly,</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/ S. Jones </I></TD>
    <TD align=left width="50%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
    <TD align=left width="50%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Scott Jones, P.Eng., Vice President, Engineering </B></TD>
    <TD align=left width="50%">&nbsp;</TD></TR></TABLE>
<P>&nbsp;</P>
<P><BR>&nbsp;</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=center>&nbsp;</TD>
    <TD align=center width="60%">1020 - 800 W Pender St, Vancouver BC Canada
      V6C 2V6 </TD>
    <TD align=center width="19%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center>&nbsp;</TD>
    <TD align=center width="60%">Tel 604 684-6365 Fax 604 684-8092 Toll Free 1
      800-667-2114 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="19%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center>&nbsp;</TD>
    <TD align=center width="60%">www.tasekomines.com </TD>
    <TD align=center width="19%">&nbsp;</TD></TR></TABLE><BR>
<HR align=center width="100%" color=black noShade SIZE=5>

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<TYPE>GRAPHIC
<SEQUENCE>11
<FILENAME>exhibit99-5x11x1.jpg
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