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<SEC-DOCUMENT>0001062993-10-003401.txt : 20101019
<SEC-HEADER>0001062993-10-003401.hdr.sgml : 20101019
<ACCEPTANCE-DATETIME>20101018212322
ACCESSION NUMBER:		0001062993-10-003401
CONFORMED SUBMISSION TYPE:	SUPPL
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20101019
DATE AS OF CHANGE:		20101018
EFFECTIVENESS DATE:		20101019

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:		SUPPL
		SEC ACT:		
		SEC FILE NUMBER:	333-169469
		FILM NUMBER:		101129007

	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>SUPPL
<SEQUENCE>1
<FILENAME>suppl.htm
<DESCRIPTION>PROSPECTUS SUPPLEMENT
<TEXT>
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   <TITLE>Taseko Mines Ltd.: Prospectus Supplement - Filed by newsfilecorp.com</TITLE>
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<!--$$/page=--><A name=page_1></A>
<P align=right>Filed pursuant to General Instruction II.L of Form F-10 <BR>File
No. 333-169469</P>
<P align=center><B>PROSPECTUS SUPPLEMENT<BR></B><B>(To Short Form Base Shelf
Prospectus dated October 8, 2010)</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>No securities regulatory
authority has expressed an opinion about these securities and it is an offence
to claim otherwise. </I></B><I>This prospectus supplement, together with the
accompanying short form base shelf prospectus dated October 8, 2010 to which it
relates, as amended or supplemented, and each document deemed to be incorporated
by reference into this prospectus supplement and the short form base shelf
prospectus, constitutes a public offering of these securities only in those
jurisdictions where they may be lawfully offered for sale and therein only by
persons permitted to sell such securities. See "Plan of Distribution".</I></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Information has been
incorporated by reference in this prospectus from documents filed with the
securities commissions or similar authorities in Canada. Copies of the documents
incorporated herein by reference may be obtained on request without charge from
Taseko Mines Limited, #300, 905 West Pender Street, Vancouver, British Columbia,
V6C 1L6 (Telephone (604) 684-6365) (Attn: the Secretary), and are also available
electronically at </I></B><B><I><U><FONT
color=#0000ff>www.sedar.com</FONT></U></I></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>New Issue</I> </TD>
    <TD align=right width="50%">October 18, 2010 </TD>
  </TR></TABLE>
<P align=center><img src="tasekologo.jpg" width="384" height="52"></P>
<P align=center><B>Up to 18,600,000 Common Shares</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are hereby qualifying for
distribution up to 18,600,000 common shares of Taseko Mines Limited. We have
entered into an at the market issuance agreement, dated as of October 18, 2010
(the &#147;ATM agreement&#148;), with McNicoll Lewis &amp; Vlak LLC (&#147;MLV&#148;) relating to
common shares offered by this prospectus supplement and the accompanying short
form base shelf prospectus dated October 8, 2010. In accordance with the ATM
agreement, and except as noted below, we may distribute up to 18,600,000 common
shares through MLV, as our agent or as principal for the distribution of the
common shares. See &#147;Plan of Distribution&#148; beginning on page 21 of this
prospectus supplement for more information regarding these arrangements.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Our business and an investment
in our common shares involve significant risks. See &#147;Risk Factors&#148; beginning on
page 11 of this prospectus supplement and on page 30 of the accompanying short
form base shelf prospectus.</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NEITHER THE UNITED STATES
SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES REGULATOR HAS
APPROVED OR DISAPPROVED OF THESE SECURITIES OR DETERMINED IF THIS PROSPECTUS
SUPPLEMENT OR THE ACCOMPANYING PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENCE.</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>We are permitted, under a
multi-jurisdictional disclosure system adopted by the United States, to prepare
this prospectus supplement and the accompanying short form base shelf prospectus
in accordance with Canadian disclosure requirements, which are different from
those of the United States. We prepare our financial statements, which are
incorporated by reference in this prospectus supplement and the accompanying
prospectus, in accordance with Canadian generally accepted accounting
principles, and they are subject to Canadian auditing and auditor independence
standards. Our financial statements may not be comparable to the financial
statements of US companies.</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Purchasing our common shares
may subject you to tax consequences both in the United States and Canada. This
prospectus supplement and the accompanying short form base shelf prospectus may
not describe these tax consequences fully. You should read the tax discussion in
this prospectus supplement and the accompanying short form base shelf prospectus
fully and consult with your own tax advisers.</B></P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<P align=center>- S-2 -</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Your ability to enforce civil
liabilities under United States federal securities laws may be affected
adversely by the fact that we are incorporated under the laws of British
Columbia, a majority of our directors are not US residents and a majority of our
officers and certain of the experts named in this prospectus supplement and the
accompanying short form base shelf prospectus are residents of Canada and a
substantial portion of our assets are located outside the United States.</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MLV will receive a cash fee
equal up to but not exceeding 3% of the first aggregate gross proceeds of US$30
million and thereafter 2% of the gross proceeds realized from the sale of our
common shares for services rendered in connection with the offering. See &#147;Plan
of Distribution&#148;.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We estimate the total expenses of this offering, excluding the MLV
fee, will be approximately US$150,000.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No underwriter or dealer involved
in this offering, no affiliate of such an underwriter or dealer, and no person
acting jointly or in concert with such an underwriter or dealer has
over-allotted, or will over-allot, common shares with the offering or effect any
other transactions that we intended to stabilize or maintain the market price of
the common shares.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common shares are listed on
the Toronto Stock Exchange under the symbol &#147;TKO&#148; and on the NYSE Amex under the
symbol &#147;TGB&#148;. On October 14, 2010, the last reported sale price of our common
shares was C$6.21 per share on the TSX and US$6.20 per share on the NYSE Amex.
The TSX has conditionally approved the listing of the common shares offered by
this prospectus supplement. Listing is subject to us fulfilling all of the
requirements of the TSX within one business day after the date hereof. We have
applied to the NYSE Amex for approval of the listing of the common shares
offered hereunder.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales of common shares, if any,
under this prospectus supplement and the accompanying short form base shelf
prospectus may be made in transactions that are deemed to be &#147;at-the-market
distributions&#148; as defined in National Instrument 44-102 &#150; Shelf Distributions
(&#147;NI 44-102&#148;), including sales made directly on the NYSE Amex or other existing
trading markets for the common shares in the United States. The common shares
will be distributed at market prices prevailing at the time of the sale of such
common shares. As a result, prices may vary as between purchasers and during the
period of distribution.</P>
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noShade SIZE=5>
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<P align=center>- S-3 -</P>
<P align=center><B>TABLE OF CONTENTS</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><U>Prospectus Supplement</U></B> </TD>
    <TD align=left width="5%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_5"><B>IMPORTANT
      NOTICE</B> </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_5"><B>S-5</B>
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_6"><B>ABOUT
      THIS PROSPECTUS SUPPLEMENT</B> </A></TD>
    <TD align=right width="5%" ><A
      href="#page_6"><B>S-6</B>
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_7"><B>SPECIAL
      NOTE REGARDING FORWARD-LOOKING STATEMENTS</B> </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_7"><B>S-7</B>
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_9"><B>DOCUMENTS
      INCORPORATED BY REFERENCE</B> </A></TD>
    <TD align=right width="5%" ><A
      href="#page_9"><B>S-9</B>
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_10"><B>DOCUMENTS
      FILED AS PART OF THE REGISTRATION STATEMENT</B> </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_10"><B>S-10</B>
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_10"><B>TASEKO
      MINES LIMITED</B> </A></TD>
    <TD align=right width="5%" ><A
      href="#page_10"><B>S-10</B>
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_10"><B>RECENT
      DEVELOPMENTS</B> </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_10"><B>S-10</B>
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_11"><B>RISK
      FACTORS</B> </A></TD>
    <TD align=right width="5%" ><A
      href="#page_11"><B>S-11</B>
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_15"><B>EXCHANGE
      RATE INFORMATION</B> </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_15"><B>S-15</B>
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_15"><B>CONSOLIDATED
      CAPITALIZATION</B> </A></TD>
    <TD align=right width="5%" ><A
      href="#page_15"><B>S-15</B>
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_15"><B>TRADING
      PRICE AND VOLUME</B> </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_15"><B>S-15</B>
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_16"><B>PRIOR
      SALES</B> </A></TD>
    <TD align=right width="5%" ><A
      href="#page_16"><B>S-16</B>
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_20"><B>USE
      OF PROCEEDS</B> </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_20"><B>S-20</B>
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_20"><B>DETAILS
      OF THE OFFERING</B> </A></TD>
    <TD align=right width="5%" ><A
      href="#page_20"><B>S-20</B>
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_20"><B>PLAN
      OF DISTRIBUTION</B> </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_20"><B>S-20</B>
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_21"><B>CERTAIN
      UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS</B> </A></TD>
    <TD align=right width="5%" ><A
      href="#page_21"><B>S-21</B>
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_26"><B>WHERE
      YOU CAN FIND MORE INFORMATION</B> </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_26"><B>S-26</B>
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_26"><B>ENFORCEABILITY
      OF CIVIL LIABILITIES BY U.S. INVESTORS</B> </A></TD>
    <TD align=right width="5%" ><A
      href="#page_26"><B>S-26</B>
      </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_27"><B>LEGAL
      MATTERS</B> </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee ><A
      href="#page_27"><B>S-27</B>
      </A></TD>
</TR></TABLE>

<BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=center>- S-4 -</P><P align=justify><B><U>Prospectus dated October 8, 2010</U></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 bgColor=#eeeeee><A
      href="#page_P-1">DOCUMENTS
      INCORPORATED BY REFERENCE </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee><A
      href="#page_P-1">1 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_P-2">FORWARD
      LOOKING STATEMENTS </A></TD>
    <TD align=right width="5%"><A
      href="#page_P-2">2 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_P-4">INTERPRETATION,
      CURRENCY AND EXCHANGE RATES AND GENERAL INFORMATION </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee><A
      href="#page_P-4">4 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_P-4">CAUTIONARY
      NOTE TO UNITED STATES INVESTORS REGARDING ESTIMATES OF RESERVES AND
      MEASURED, INDICATED AND INFERRED RESOURCES </A></TD>
    <TD align=right width="5%"><A
      href="#page_P-4">4 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_P-5">NOTE
      TO UNITED STATES READERS REGARDING DIFFERENCES BETWEEN UNITED STATES AND
      CANADIAN REPORTING PRACTICES </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee><A
      href="#page_P-5">5 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_P-6">ADDITIONAL
      INFORMATION </A></TD>
    <TD align=right width="5%"><A
      href="#page_P-6">6 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_P-7">ENFORCEABILITY
      OF CIVIL LIABILITIES BY U.S. INVESTORS </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee><A
      href="#page_P-7">7 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_P-8">THE
      COMPANY </A></TD>
    <TD align=right width="5%"><A
      href="#page_P-8">8 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_P-13">USE
      OF PROCEEDS </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee><A
      href="#page_P-13">13 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_P-13">CONSOLIDATED
      CAPITALIZATION </A></TD>
    <TD align=right width="5%"><A
      href="#page_P-13">13 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_P-13">PRIOR
      SALES </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee><A
      href="#page_P-13">13 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_P-16">TRADING
      PRICE AND VOLUME </A></TD>
    <TD align=right width="5%"><A
      href="#page_P-16">16 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_P-17">PLAN
      OF DISTRIBUTION </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee><A
      href="#page_P-17">17 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_P-18">DESCRIPTION
      OF SECURITIES </A></TD>
    <TD align=right width="5%"><A
      href="#page_P-18">18 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_P-34">RISK
      FACTORS </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee><A
      href="#page_P-34">34 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_P-38">CANADIAN
      FEDERAL INCOME TAX CONSIDERATIONS </A></TD>
    <TD align=right width="5%"><A
      href="#page_P-38">38 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_P-38">MATERIAL
      U.S. FEDERAL INCOME TAX CONSIDERATIONS </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee><A
      href="#page_P-38">38 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_P-38">MATERIAL
      CONTRACTS </A></TD>
    <TD align=right width="5%"><A
      href="#page_P-38">38 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_P-39">LEGAL
      MATTERS </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee><A
      href="#page_P-39">39 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_P-39">AUDITORS,
      TRANSFER AGENT AND REGISTRAR </A></TD>
    <TD align=right width="5%"><A
      href="#page_P-39">39 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_P-39">DOCUMENTS
      FILED AS PART OF THE REGISTRATION STATEMENT </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee><A
      href="#page_P-39">39 </A></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>- S-5 -</P>
<P align=center><B>IMPORTANT NOTICE</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This document is in two parts.
The first part is this prospectus supplement, which describes the specific terms
of the securities we are offering and the method of distribution of those
securities and also supplements and updates information regarding Taseko Mines
Limited contained in the accompanying short form base shelf prospectus. The
second part, the accompanying short form base shelf prospectus, gives more
general information about securities we may offer from time to time, some of
which may not apply to the offering. Both documents contain important
information you should consider when making your investment decision. This
prospectus supplement may add, update or change information contained in the
accompanying short form base shelf prospectus. Before investing, you should
carefully read both this prospectus supplement and the accompanying short form
base shelf prospectus together with the additional information about Taseko
Mines Limited to which we refer you in the section of this prospectus supplement
entitled &#147;Documents Incorporated By Reference&#148; and &#147;Where You Can Find More
Information&#148;.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should rely only on
information contained in this prospectus supplement, the accompanying short form
base shelf prospectus and the documents we incorporate by reference in this
prospectus supplement and the accompanying prospectus. If information in this
prospectus supplement is inconsistent with the accompanying prospectus or the
information incorporated by reference, you should rely on this prospectus
supplement. We have not authorized anyone to provide you with information that
is different. If anyone provides you with any different or inconsistent
information, you should not rely on it. We are offering the common shares only
in jurisdictions where such offers are permitted by law. The information
contained in this prospectus supplement and the accompanying prospectus is
accurate only as of their respective dates, regardless of the time of delivery
of this prospectus supplement and the accompanying prospectus and you should not
assume otherwise.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<P align=center>- S-6 -</P>
<P align=center><B>ABOUT THIS PROSPECTUS SUPPLEMENT</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus supplement and
the accompanying short form base shelf prospectus are part of a &#147;shelf&#148;
registration statement on Form F-10 that we have filed with the SEC. The shelf
registration statement was declared effective by the SEC on October 13, 2010.
This prospectus supplement does not contain all of the information contained in
the registration statement, certain parts of which are omitted in accordance
with the rules and regulations of the SEC. You should refer to the registration
statement and the exhibits to the registration statement for further information
with respect to us and our securities.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In this prospectus supplement,
unless stated otherwise or the context requires, all dollar amounts are
expressed in Canadian dollars. All references to &#147;US$&#148; are to the lawful
currency of the United States and all references to &#147;$&#148; or &#147;C$&#148; are to the
lawful currency of Canada. In this prospectus supplement, where applicable, and
unless otherwise indicated, amounts are converted from United States dollars to
Canadian dollars and vice versa by applying the noon rate of exchange of the
Bank of Canada on October 14, 2010. See &#147;Exchange Rate Information&#148;.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some of the information contained
or incorporated by reference in this prospectus supplement and the accompanying
prospectus concerning economic and industry trends is based upon or derived from
information provided by industry sources. We believe that such information is
accurate and that the sources from which it has been obtained are reliable.
However, we cannot guarantee the accuracy of such information and we have not
independently verified the assumptions upon which projections of future trends
are based.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In this prospectus supplement
unless the context requires otherwise, &#147;Taseko&#148;, &#147;we&#148;,&#148; us&#148; and &#147;our&#148; refer to
Taseko Mines Limited and its subsidiaries through which it operates. Capitalized
terms used but not defined herein have the meanings given to those terms in the
accompanying short form base shelf prospectus.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We prepare our financial
statements in accordance with Canadian generally accepted accounting principles,
which differ from United States generally accepted accounting principles.
Therefore, our financial statements incorporated by reference in this prospectus
supplement and the accompanying short form base shelf prospectus, and in the
documents incorporated by reference in this prospectus supplement and the
accompanying short form base shelf prospectus, may not be comparable to
financial statements prepared in accordance with United States generally
accepted accounting principles. Prospective investors should refer to:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>the audited Supplementary Note entitled &#147;Reconciliation with United States
  Generally Accepted Accounting Principles&#148; for the year ended December 31,
  2009, the fifteen months ended December 31, 2008, and the year ended September
  30, 2007 (as furnished to the SEC on Form 6-K on September 17, 2010); and </P>
  <LI>
  <P>the unaudited Supplementary Note entitled &#147;Reconciliation with United
  States Generally Accepted Accounting Principles&#148; as at June 30, 2010, and for
  the three and six months ended June 30, 2010 (as furnished to the SEC on Form
  6-K on September 17, 2010), </P></LI></UL>
<P align=justify>for a discussion of the principal differences between our
financial results determined under Canadian generally accepted accounting
principles and under United States generally accepted accounting principles. The
Supplementary Notes should be read in conjunction with, respectively, the
Company&#146;s audited consolidated financial statements as at and for the fiscal
periods ended December 31, 2009 and 2008 and September 30, 2007, and the
Company&#146;s unaudited interim consolidated financial statements for the three and
six months ended June 30, 2010. See &#147;Documents Incorporated by Reference&#148;.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus supplement is
deemed to be incorporated by reference into the accompanying short form base
shelf prospectus solely for the purposes of the offering. Other documents are
also incorporated or deemed to be incorporated by reference into this prospectus
supplement and into the accompanying short form base shelf prospectus. See
&#147;Documents Incorporated by Reference&#148;.</P>
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<P align=center><B>SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus supplement and
the accompanying short form base shelf prospectus, including the documents
incorporated by reference, contain forward-looking statements and
forward-looking information (collectively referred to as &#147;forward-looking
statements&#148;) which may not be based on historical fact, including without
limitation statements regarding our expectations in respect of future financial
position, business strategy, future production, reserve potential, exploration
drilling, exploitation activities, events or developments that we expect to take
place in the future, projected costs and plans and objectives. Often, but not
always, forward-looking statements can be identified by the use of the words
&#147;believes&#148;, &#147;may&#148;, &#147;plan&#148;, &#147;will&#148;, &#147;estimate&#148;, &#147;scheduled&#148;, &#147;continue&#148;,
&#147;anticipates&#148;, &#147;intends&#148;, &#147;expects&#148;, and similar expressions.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such statements reflect our
current views with respect to future events and are subject to risks and
uncertainties and are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by our company, are inherently
subject to significant business, economic, competitive, political and social
uncertainties and contingencies. Many factors could cause our actual results,
performance or achievements to be materially different from any future results,
performance, or achievements that may be expressed or implied by such
forward-looking statements, including, among others:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>delays or inability to successfully complete the environmental assessment
  review process for the Prosperity Project; </P>
  <LI>
  <P>the potential for increase in the cash cost of production at the Gibraltar
  Mine; </P>
  <LI>
  <P>lack of mineral reserves at the Harmony Project and Aley Project; </P>
  <LI>
  <P>the estimates of mineral resources is a subjective process, the accuracy of
  which is a function of the quantity and quality of available data and the
  assumptions made and judgment used in the engineering and geological
  interpretation, which may prove to be unreliable, and may be subject to
  revision based on various factors; </P>
  <LI>
  <P>fluctuation of metal prices and currency rates; </P>
  <LI>
  <P>uncertain project realization values; </P>
  <LI>
  <P>current global economic conditions; </P>
  <LI>
  <P>changes in mining legislation adversely affecting our operations; </P>
  <LI>
  <P>inability to obtain adequate financing on acceptable terms; </P>
  <LI>
  <P>inability to obtain necessary exploration and mining permits and comply
  with all government requirements including environmental, health and safety
  laws; </P>
  <LI>
  <P>inability to attract and retain key personnel; and </P>
  <LI>
  <P>other risks detailed from time-to-time in our quarterly filings, annual
  information forms, annual reports and annual filings with securities
  regulators, and those risks which are discussed under the heading &#147;Risk
  Factors&#148; in this prospectus supplement and the accompanying short form base
  shelf prospectus. </P></LI></UL>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such information is included,
among other places, in this prospectus supplement and the accompanying short
form base shelf prospectus under the headings &#147;The Company&#148;, &#147;Taseko Mines
Limited&#148;, &#147;Recent Developments&#148;, &#147;Use of Proceeds&#148;, &#147;Risk Factors&#148; and in the
Annual Information Form (as defined in this prospectus supplement) under the heading &#147;Description of
Business&#148; and in the Management&#146;s Discussion and Analysis for the year ended
December 31, 2009, each of such documents being incorporated by reference in
this prospectus supplement and the accompanying short form base shelf
prospectus.</P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These factors should be
considered carefully and readers are cautioned not to place undue reliance on
the forward-looking statements. Readers are cautioned that the foregoing list of
risk factors in this prospectus supplement and the accompanying short form base
shelf prospectus is not exhaustive and it is recommended that prospective
investors consult the more complete discussion of risks and uncertainties facing
the Company included in this prospectus supplement and the accompanying short
form base shelf prospectus. See &#147;Risk Factors&#148; in this prospectus supplement and
the accompanying short form base shelf prospectus for a more detailed discussion
of these risks.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although the Company believes
that the expectations conveyed by the forward-looking statements are reasonable
based on the information available to it on the date such statements were made,
no assurances can be given as to future results, approvals or achievements. The
forward-looking statements contained in this prospectus supplement and the
accompanying short form base shelf prospectus and the documents incorporated by
reference in this prospectus supplement and the accompanying short form base
shelf prospectus are expressly qualified by this cautionary statement. The
Company disclaims any duty to update any of the forward-looking statements after
the date of this prospectus supplement to conform such statements to actual
results or to changes in the Company&#146;s expectations except as otherwise required
by applicable law.</P>
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<P align=justify><B>DOCUMENTS INCORPORATED BY REFERENCE</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information has been incorporated
by reference in this prospectus supplement from documents filed with the
securities commissions of the Provinces of British Columbia, Alberta,
Saskatchewan, Manitoba, Ontario, Newfoundland and Labrador, New Brunswick, Nova
Scotia and Prince Edward Island. Copies of the documents incorporated herein by
reference may be obtained on request without charge from Taseko Mines Limited,
#300, 905 West Pender Street, Vancouver, British Columbia, V6C 1L6 (Telephone
(604) 684-6365) Attn: the Secretary, and are also available electronically at
<U><FONT color=#0000ff>www.sedar.com</FONT></U>. Our filings through SEDAR are
not incorporated by reference in this prospectus supplement or the accompanying
short form base shelf prospectus except as specifically set out herein or
therein.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following documents filed
with the securities commission or similar regulatory authority in the Provinces
of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Newfoundland and
Labrador, New Brunswick, Nova Scotia and Prince Edward Island, are specifically
incorporated by reference into, and except where otherwise provided, form an
integral part of, this prospectus supplement and the accompanying short form
base shelf prospectus:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>annual information form dated March 31, 2010 for the fiscal year ended
  December 31, 2009 (the &#147;Annual Information Form&#148;); </P>
  <LI>
  <P>consolidated financial statements and the notes thereto for the fiscal
  periods ended December 31, 2009 and 2008 and September 30, 2007, together with
  the auditors&#146; report thereon and management&#146;s discussion and analysis for the
  year ended December 31, 2009; </P>
  <LI>
  <P>unaudited interim consolidated financial statements and notes thereto for
  the three and six months ended June 30, 2010 and management&#146;s discussion and
  analysis for the three and six months ended June 30, 2010; </P>
  <LI>
  <P>management information circular dated May 13, 2010 relating to the annual
  general meeting of shareholders held June 16, 2010; </P>
  <LI>
  <P>audited Supplementary Note entitled &#147;Reconciliation with United States
  Generally Accepted Accounting Principles&#148; for the year ended December 31,
  2009, the fifteen months ended December 31, 2008, and the year ended September
  30, 2007; and </P>
  <LI>
  <P>unaudited Supplementary Note entitled &#147;Reconciliation with United States
  Generally Accepted Accounting Principles&#148; as at June 30, 2010, and for the
  three and six months ended June 30, 2010. </P></LI></UL>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Material change reports (other
than confidential reports), business acquisition reports, interim financial
statements, all other documents of the type referred to above and any other
document of the type required by National Instrument 44-101 &#150; <I>Short Form
Prospectus Distributions </I>to be incorporated by reference in a short form
prospectus, filed by the Company with the securities commission or similar
regulatory authority in the Provinces of British Columbia, Alberta, Manitoba,
Ontario, Saskatchewan, Newfoundland and Labrador, New Brunswick, Nova Scotia and
Prince Edward Island after the date of this prospectus supplement and before
completion or withdrawal of the offering, will also be deemed to be incorporated
by reference into this prospectus supplement.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent that any document
or information incorporated by reference into this prospectus supplement is
included in any report on Form 6-K, Form 40-F, Form 20-F, Form 10-K, Form 10-Q
or Form 8-K (or any respective successor form) that is filed with or furnished
to the SEC after the date of this prospectus supplement, such document or
information shall be deemed to be incorporated by reference as an exhibit to the
registration statement of which this prospectus supplement forms a part. In
addition, we may incorporate by reference into this prospectus supplement, or
the registration statement of which it forms a part, other information from
documents that we file with or furnish to the SEC pursuant to Section 13(a) or
15(d) of the United States Securities Exchange Act of 1934, as amended, if and
to the extent expressly provided therein.</P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any statement contained in a
document incorporated or deemed to be incorporated by reference in this
prospectus supplement will be deemed to be modified or superseded for the
purposes of this prospectus supplement to the extent that a statement contained
in this prospectus supplement or in any other subsequently filed document that
is also incorporated or is deemed to be incorporated by reference in this
prospectus supplement modifies or supersedes such statement. The modifying or
superseding statement need not state that it has modified or superseded a prior
statement or include any other information set forth in the document that it
modifies or supersedes. The making of a modifying or superseding statement will
not be deemed an admission for any purpose that the modified or superseded
statement, when made, constituted a misrepresentation, an untrue statement of a
material fact or an omission to state a material fact that is required to be
stated or that is necessary to make a statement not misleading in light of the
circumstances in which it was made. Any statement so modified or superseded will
not be deemed, except as so modified or superseded, to constitute a part of this
prospectus supplement.</P>
<P align=center><B>DOCUMENTS FILED AS PART OF THE REGISTRATION STATEMENT</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the documents
specified in this prospectus supplement and in the accompanying prospectus under
&#147;Documents Incorporated by Reference&#148;, the form of ATM agreement described in
this prospectus supplement has been or will be filed with the SEC as part of the
registration statement on Form F-10 (File No. 333-169469) of which this
prospectus supplement forms a part.</P>
<P align=center><B>TASEKO MINES LIMITED</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This summary does not contain all
the information about Taseko that may be important to you. You should read the
more detailed information and financial statements and related notes that are
incorporated by reference into and are considered to be a part of this
prospectus supplement and accompanying prospectus.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taseko was incorporated on April
15, 1966 under the laws of the Province of British Columbia. Taseko&#146;s registered
office is located at Suite 1500-1055 West Georgia, Vancouver, British Columbia,
V6E 4N7, and its operational head office is located at Suite 300, 905 West
Pender Street, Vancouver, British Columbia, V6C 1L6.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taseko has one material active
wholly-owned subsidiary, Gibraltar Mines Ltd., and other inactive or
non-material subsidiaries described in the Annual Information Form. Taseko owns
100% of the common shares of Gibraltar but none of Gibraltar&#146;s issued and
outstanding preferred shares. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March 31, 2010, we sold a 25%
joint venture interest in the Gibraltar mine, a copper and molybdenum mine, to
Cariboo Copper Corp. for $187.0 million. Cariboo is a consortium that consists
of Sojitz Corporation (50%), Dowa Corporation (25%) and Furakawa Corporation
(25%). We retain a 75% interest in the Gibraltar joint venture and we are the
operator of the Gibraltar Mine.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Gibraltar Mine restarted
operations in October 2004 after being on standby for several years. Taseko also
owns the Prosperity gold-copper project, which is at the post-feasibility stage
with an environmental assessment underway. In addition, Taseko has non-material
properties including the Harmony gold project, which is at the late exploration
stage but is currently inactive, and the Aley niobium property, where Taseko
carried out an initial exploration program, and which is also inactive. All of
these projects are located in British Columbia, Canada.</P>
<P align=center><B>RECENT DEVELOPMENTS</B></P>
<P align=justify><I>Environmental Review Process</I></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Prosperity Project received
approval under the <I>Environmental Assessment Act </I>(British Columbia) on
January 14, 2010. Detailed permitting for activities under Provincial
jurisdiction, such as the Mines Act Permit, is underway.</P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Federal Panel process, in
which public hearings were conducted by a three-person panel operating under
defined Terms of Reference, concluded on May 3, 2010. The Federal Panel
submitted its findings to the Canadian Federal Minister of Environment on July
2, 2010. The panel findings were essentially the same as the conclusions reached
in the Provincial Environmental Assessment, being that loss of Fish Lake and the
adjacent meadows would result in significant adverse environmental effects;
however, the provincial process concluded that the environmental impacts were
justified because the lake and fishery will be replaced and the economic and
social benefits generated are significant, but the panel was not mandated to
assess economic and social value generated by the Prosperity Project. The
Canadian federal government is expected to make a decision in October 2010. The
issue for the federal government is whether the adverse environmental effects of
the Prosperity Project as found by the Federal Panel can be justified in the
circumstances. This is basically the same justification analysis that the
Province of British Columbia was required to undertake, and the Province&#146;s
conclusion was that the benefits from the Prosperity Project justified the
limited adverse environmental effects. Taseko believes that the significant
economic benefits that will flow to the region, the Province of British Columbia
and the federal government as a result of the Prosperity Project will be given
prominence in the deliberations of the federal government.</P>
<P align=center><B>RISK FACTORS</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An investment in our common
shares is highly speculative and subject to a number of risks. You should
carefully consider the information described below in the prospectus supplement
and the accompanying short form base shelf prospectus as well as the risk
factors and other information set out in the Annual Information Form and other
documents incorporated herein by reference. The risks and uncertainties
described in this prospectus supplement, the accompanying short form base shelf
prospectus and the documents incorporated by reference in this prospectus
supplement and the accompanying short form base shelf prospectus are those that
we currently believe may materially affect us. Additional risks and
uncertainties that we are unaware of or that we currently deem immaterial also
may become important factors that affect us. If any of the following risks
actually occurs, our business, financial condition and results of operations
could be materially adversely affected, the trading price of our common shares
could decline and you could lose all or part of your investment.</P>
<P align=justify><B><I>We have not paid dividends.</I></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have never paid cash dividends
on our common shares and do not anticipate paying any cash dividends in the
foreseeable future. We currently intend to retain our future earnings, if any,
to finance further development of our business.</P>
<P align=justify><B><I>Our outstanding common shares could be subject to
dilution.</I></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exercise of stock options and
warrants already issued by us and the issuance of other additional securities in
the future could result in dilution in the value of our common shares and the
voting power represented by the common shares. Furthermore, to the extent
holders of our stock options or other securities exercise their securities and
then sell the common shares they receive, our share price may decrease due to
the additional amount of our common shares available in the market.</P>
<P align=justify><B><I>It may be difficult for non-Canadian investors to obtain
and enforce judgments against us because of our Canadian incorporation and
presence.</I></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are a corporation existing
under the laws of British Columbia, Canada. Most of our directors and officers,
and certain of the experts named in the accompanying short form base shelf
prospectus, are residents of Canada or otherwise reside outside the United
States, and all or a substantial portion of their assets, and a substantial
portion of our assets, are located outside the United States. Consequently,
although we have appointed an agent for service of process in the United States,
it may be difficult for holders of these securities who reside in the United
States to effect service within the United States upon those directors and
officers, and the experts who are not residents of the United States. It may
also be difficult for holders of these securities who reside in the United
States to realize in the United States upon judgments of courts of the United
States predicated upon our civil liability and the civil liability of our
directors, officers and experts under the United States federal securities laws.
Investors should not assume that Canadian courts (1) would enforce
judgments of US courts obtained in actions against us or such directors,
officers or experts predicated upon the civil liability provisions of the US
federal securities laws or the securities or &#147;blue sky&#148; laws of any state within
the United States or (2) would enforce, in original actions, liabilities against
us or such directors, officers or experts predicated upon the US federal
securities laws or any such state securities or &#147;blue sky&#148; laws. In addition, we
have been advised by our Canadian counsel that in normal circumstances, only
civil judgments and not other rights arising from United States securities
legislation are enforceable in Canada and that the protections afforded by
Canadian securities laws may not be available to investors in the United
States.</P>
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<P align=justify><B><I>If there are substantial sales of our common shares, the
market price of our common shares could decline.</I></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales of substantial numbers of
our common shares could cause a decline in the market price of our common
shares. Any sales by existing shareholders or holders of options or warrants may
have an adverse effect on our ability to raise capital and may adversely affect
the market price of our common shares.</P>
<P align=justify><B><I>Failure to obtain approvals and permits for the
Prosperity Project will negatively affect our business and share
price.</I></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January 14, 2010, we received
approval under the <I>Environmental Assessment Act </I>(British Columbia) for
the Prosperity Project from the British Columbia Ministry of Environment and the
Mines Act permit. The Federal Review Panel submitted its findings to Canada&#146;s
Minister of the Environment on July 2, 2010. We expect the Canadian federal
government will make a decision on the Prosperity Project in October 2010.
Failure to obtain such approvals and permits in a timely manner or at all will
delay or even lead to abandonment of the Prosperity Project, which would
negatively affect our share price and which would require us to amend the
proposed use of proceeds from this offering, as described in this prospectus
supplement.</P>
<P align=justify><B><I>Lack of infrastructure could delay or prevent us from
developing advanced projects.</I></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Completion of the development of
our advanced projects is subject to various requirements, including the
availability and timing of acceptable arrangements for power, water and
transportation facilities. The lack of availability on acceptable terms or the
delay in the availability of any one or more of these items could prevent or
delay development of our advanced projects. If adequate infrastructure is not
available in a timely manner, there can be no assurance that:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>the development of our projects will be commenced or completed on a timely
  basis, if at all; </P>
  <LI>
  <P>the resulting operations will achieve the anticipated production volume; or
  </P>
  <LI>
  <P>the construction costs and ongoing operating costs associated with the
  development of our advanced projects will not be higher than anticipated.
  </P></LI></UL>
<P align=justify><B><I>Mining is inherently dangerous and subject to conditions
or events beyond our control, which could have a material adverse effect on our
business.</I></B></P>
<P align=justify>Mining involves various types of risks and hazards,
including:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>environmental hazards; </P>
  <LI>
  <P>industrial accidents; </P>
  <LI>
  <P>metallurgical and other processing problems; </P>
  <LI>
  <P>unusual or unexpected rock formations; </P>
  <LI>
  <P>structural cave-ins or slides; </P></LI></UL>
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<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>flooding; </P>
  <LI>
  <P>fire; </P>
  <LI>
  <P>metals losses; and </P>
  <LI>
  <P>periodic interruptions due to inclement or hazardous weather conditions.
  </P></LI></UL>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These risks could result in
damage to, or destruction of, mineral properties, production facilities or other
properties, personal injury, environmental damage, delays in mining, increased
production costs, monetary losses, and possible legal liability. We may not be
able to obtain insurance to cover these risks at economically feasible premiums.
Insurance against certain environmental risks, including potential liability for
pollution or other hazards as a result of the disposal of waste products
occurring from production, is not generally available to us or to other
companies within the mining industry. We may suffer a material adverse impact on
its business if it incurs losses related to any significant events that are not
covered by its insurance policies.</P>
<P align=justify><B><I>We are subject to significant governmental
regulation.</I></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our operations and exploration
and development activities in Canada are subject to extensive federal,
provincial, territorial and local laws and regulations governing various
matters, including:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>environmental protection; </P>
  <LI>
  <P>management and use of toxic substances and explosives; </P>
  <LI>
  <P>management of tailings and other wastes generated by our operations; </P>
  <LI>
  <P>management of natural resources; </P>
  <LI>
  <P>exploration and development of mines, production and post-closure
  reclamation; </P>
  <LI>
  <P>exports; </P>
  <LI>
  <P>price controls; </P>
  <LI>
  <P>taxation; </P>
  <LI>
  <P>regulations concerning business dealings with First Nations groups; </P>
  <LI>
  <P>labour standards and occupational health and safety, including mine safety;
  and </P>
  <LI>
  <P>historic and cultural preservation. </P></LI></UL>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Failure to comply with applicable
laws and regulations may result in civil or criminal fines or penalties or
enforcement actions, including orders issued by regulatory or judicial
authorities enjoining or curtailing operations or requiring corrective measures,
installation of additional equipment or remedial actions, any of which could
result in the Company incurring significant expenditures. We may also be
required to compensate private parties suffering loss or damage by reason of a
breach of such laws, regulations or permitting requirements. It is also possible
that future laws and regulations, or a more stringent enforcement of current
laws and regulations by governmental authorities, could cause additional
expense, capital expenditures, restrictions on or suspensions of our operations
and delays in the development of our properties.</P>
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<P align=center>- S-14 -</P>
<P align=justify><B><I>Increased competition could adversely affect our ability
to attract necessary capital funding or acquire suitable producing properties or
prospects for mineral exploration in the future.</I></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The mining industry is intensely
competitive. Significant competition exists for the acquisition of properties
producing or capable of producing gold, copper or other metals. We may be at a
competitive disadvantage in acquiring additional mining properties because it
must compete with other individuals and companies, many of which have greater
financial resources, operational experience and technical capabilities than we
do. We may also encounter increasing competition from other mining companies in
its efforts to hire experienced mining professionals. Competition for
exploration resources at all levels is currently very intense. Increased
competition could adversely affect our ability to attract necessary capital
funding, or to acquire it on acceptable terms, or acquire suitable producing
properties or prospects for mineral exploration in the future.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recent increases in gold, copper
and molybdenum prices have encouraged increases in mining exploration,
development and construction activities, which have resulted in increased demand
for and cost of contract exploration, development and construction services and
equipment. Increased demand for and cost of services and equipment could cause
project costs to increase materially, resulting in delays if services or
equipment cannot be obtained in a timely manner due to inadequate availability,
and increased potential for scheduling difficulties and cost increases due to
the need to coordinate the availability of services or equipment, any of which
could materially increase project exploration, development or construction
costs, result in project delays, or both.</P>
<P align=justify><B><I>Changes in the market price of gold, copper and other
metals, which are volatile and have in the past have fluctuated widely, affect
the profitability of our operations and financial condition.</I></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our profitability and long-term
viability depend, in large part, upon the market price of gold, copper and other
metals and minerals produced from our mineral properties. The market price of
gold, copper and other metals is volatile and is affected by numerous factors
beyond our control, including:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>expectations with respect to the rate of inflation; </P>
  <LI>
  <P>the relative strength of the U.S. dollar and certain other currencies; </P>
  <LI>
  <P>interest rates; </P>
  <LI>
  <P>global or regional political or economic conditions, including interest
  rates and currency values; </P>
  <LI>
  <P>supply and demand for jewellery and industrial products containing metals;
  and </P>
  <LI>
  <P>sales by central banks and other holders, speculators and producers of
  gold, copper and other metals in response to any of the above factors.
  </P></LI></UL>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A decrease in the market price of
gold, copper and other metals could affect our ability to finance the
development of the Prosperity Project and the exploration and development of our
other mineral properties, which could have a material adverse effect on our
financial condition and results of operations. Gold and copper prices are at a
historical high and there can be no assurance that the market price of gold and
other metals will remain at current levels or that such prices will improve.
There is no assurance that if commercial quantities of gold, copper and other
metals are discovered, that a profitable market may exist or continue to exist
for a production decision to be made or for the ultimate sale of the metals.</P>
<P align=justify><B><I>We have broad discretion in how we use the net proceeds
of this offering, and we may not use these proceeds in a manner desired by our
securityholders.</I></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our management will have broad
discretion with respect to the use of the net proceeds from this offering and
investors will be relying on the judgment of our management regarding the
application of these proceeds. Our management could spend most of the net
proceeds from this offering in ways that our shareholders may not desire or that
do not yield a favourable return. You will not have the opportunity, as part of
your investment in our common shares, to influence the manner in which the net proceeds of
this offering are used. As of the date of this prospectus supplement, we intend
to use the net proceeds from this offering for development of the Prosperity
Project and for general corporate purposes. See &#147;Use of Proceeds&#148;. However, our
needs may change as our business and the industry we address evolve. As a
result, the proceeds we receive in this offering may be used in a manner
significantly different from our current expectations.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_15></A>
<P align=center>- S-15 -</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because there is no minimum
offering amount required as a condition to closing this offering, the actual
public offering amount and net proceeds to us, if any, from this offering are
not presently determinable and may be substantially less than the maximum
offering amounts set forth above.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>If any of the foregoing
events, or other risk factor events as described herein or in the accompanying
short form base shelf prospectus occur, our business, financial condition or
results of operations could likely suffer. In that event, the market price of
our common shares could decline and investors could lose all or part of their
investments.</I></B></P>
<P align=center><B>EXCHANGE RATE INFORMATION</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>In this prospectus supplement,
unless otherwise specified or the context otherwise requires, all dollar amounts
are expressed in Canadian dollars. </B>The following table sets forth: (i) the
rates of exchange for Canadian dollars, expressed in US dollars, in effect at
the end of the periods indicated; (ii) the average exchange rates in effect
during such periods; (iii) the high rate of exchange in effect during such
periods; and (iv) the low rate of exchange in effect during such periods, such
rates, in each case, based on the noon rates of exchange for conversion of one
Canadian dollar to US dollars as reported by the Bank of Canada.</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=center width="12%">&nbsp; </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="12%">&nbsp; </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="12%">&nbsp; </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="15%"><B>Nine Months</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=center width="36%" colSpan=7><B>Years Ended December 31</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="15%"><B>Ended</B> </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD align=center width="12%">&nbsp; </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="12%">&nbsp; </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="12%">&nbsp; </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="15%">&nbsp; </TD>
  <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=center nowrap><B>2007</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD width="12%" align=center nowrap><B>2008</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD width="12%" align=center nowrap><B>2009</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD width="15%" align=center nowrap><B>September 30, 2010</B> </TD>
  <TD 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>
    <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 align=left bgColor=#e6efff>Low </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="12%" bgColor=#e6efff>0.8437 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="12%" bgColor=#e6efff>0.7711 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="12%" bgColor=#e6efff>0.7692 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="15%" bgColor=#e6efff>0.9278 </TD>
  <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>High </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="12%">1.0905 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="12%">1.0289 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="12%">0.9716 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="15%">1.0039 </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Average </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="12%" bgColor=#e6efff>1.0120 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="12%" bgColor=#e6efff>0.9381 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="12%" bgColor=#e6efff>0.8757 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="15%" bgColor=#e6efff>0.9656 </TD>
  <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>End </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="12%">0.9304 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="12%">0.8166 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="12%">0.9555 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="15%">0.9711 </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR></TABLE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October 15, 2010, the noon
exchange rate quoted by the Bank of Canada for conversion of Canadian dollars to
U.S. dollars was C$1.00 = US$0.9893.</P>
<P align=center><B>CONSOLIDATED CAPITALIZATION</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other than as described in this
prospectus supplement and in the accompanying prospectus, there have been no
material changes in the Company&#146;s consolidated share and loan capital since June
30, 2010, the date of the Company&#146;s most recently filed financial
statements.</P>
<P align=center><B>TRADING PRICE AND VOLUME</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s common shares are
listed on the TSX and the NYSE Amex under the trading symbol &#147;TKO&#148; and &#147;TGB&#148;,
respectively. The following tables set forth information relating to the trading
of the common shares on the TSX and NYSE Amex for the months indicated.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_16></A>
<P align=center>- S-16 -</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 style="BORDER-BOTTOM: #000000 1px solid" align=center width="47%"
    colSpan=4><B>TSX Price Range (in $)</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">&nbsp; </TD>
    <TD align=center width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;<B>Month</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="22%"><B>High</B> </TD>
    <TD 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="22%"><B>Low</B> </TD>
    <TD 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="22%"><B>Total Volume</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>September 2009 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>3.02 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>2.52 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>8,694,300 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>October 2009 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="22%">3.35 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">2.62 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">16,444,200 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>November 2009 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>3.74 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>2.80 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>19,724,700 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>December 2009 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="22%">4.74 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">3.56 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">34,529,100 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>January 2010 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>5.84 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>4.28 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>34,656,800 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>February 2010 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="22%">5.03 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">4.16 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">21,705,100 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>March 2010 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>5.36 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>4.74 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>17,347,300 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>April 2010 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="22%">6.19 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">5.33 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">19,376,400 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>May 2010 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>6.17 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>4.67 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>26,141,300 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>June 2010 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="22%">5.54 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">4.50 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">10,901,800 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>July 2010 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>4.49 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>3.27 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>19,507,300 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>August 2010 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="22%">4.85 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">4.07 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">10,408,800 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>September 2010 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>5.55 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>4.44 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>17,219,400 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>October 1 - 15, 2010 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="22%">7.27 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">4.58 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">17,890,700 </TD>
    <TD 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 style="BORDER-BOTTOM: #000000 1px solid" align=center width="47%"
    colSpan=4><B>NYSE Amex Price Range (in US$)</B> </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">&nbsp; </TD>
    <TD align=center width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;<B>Month</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="22%"><B>High</B> </TD>
    <TD 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="22%"><B>Low</B> </TD>
    <TD 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="22%"><B>Total Volume</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>September 2009 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>2.85 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>2.27 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>36,075,700 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>October 2009 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="22%">3.20 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">2.40 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">42,813,100 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>November 2009 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>3.54 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>2.57 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>59,068,600 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>December 2009 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="22%">4.45 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">3.40 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">69,406,300 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>January 2010 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>5.65 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>4.10 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>76,051,500 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>February 2010 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="22%">4.74 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">3.87 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">51,641,200 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>March 2010 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>5.25 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>4.59 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>38,840,700 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>April 2010 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="22%">6.21 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">5.25 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">44,072,500 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>May 2010 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>6.05 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>4.35 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>71,796,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>June 2010 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="22%">5.28 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">4.22 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">38,526,300 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>July 2010 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>4.36 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>3.31 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>46,334,200 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>August 2010 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="22%">4.71 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">3.90 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">31,060,800 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>September 2010 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>5.40 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>4.28 </TD>
    <TD align=center width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="22%" bgColor=#e6efff>38,134,500 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>October 1 - 15, 2010 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="22%">7.23 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">4.58 </TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="22%">62,626,900 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR></TABLE>
<P align=center><B>PRIOR SALES</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the 12-month period before
the date of this prospectus, the Company issued the following common shares and
securities convertible into common shares:</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_17></A>
<P align=center>- S-17 -</P>
<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>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;<b>Aggregate Number and Type of</b>&nbsp; </TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>Date of
      Issuance</B> </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%"><B>Securities Issued</B> </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%"><B>Price per Security</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>November 24, 2009 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>5,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$2.07 </TD></TR>
  <TR vAlign=top>
    <TD align=center>December 2, 2009 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">46,200 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>December 2, 2009 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>50,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$2.07 </TD></TR>
  <TR vAlign=top>
    <TD align=center>December 2, 2009 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">150,000 Options </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$4.14 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>December 3, 2009 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>62,500 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>December 7, 2009 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">500 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>December 10, 2009 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>61,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>December 11, 2009 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">8,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>December 14, 2009 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>35,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>December 15, 2009 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">18,800 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>December 16, 2009 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>20,500 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>December 16, 2009 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">50,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$2.18 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>December 16, 2009 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>33,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.15 </TD></TR>
  <TR vAlign=top>
    <TD align=center>December 16, 2009 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">11,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$3.07 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>December 22, 2009 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>6,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>December 22, 2009 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">50,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$2.18 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>December 22, 2009 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>33,333 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.15 </TD></TR>
  <TR vAlign=top>
    <TD align=center>December 22, 2009 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">33,666 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.71 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>December 24, 2009 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>7,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.90 </TD></TR>
  <TR vAlign=top>
    <TD align=center>January 4, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">12,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 5, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>11,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>January 5, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">1,925,000 Options </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$4.46 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 6, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>125,000 Common Shares* </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$4.02 (deemed) </TD></TR>
  <TR vAlign=top>
    <TD align=center>January 6, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">10,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 7, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>14,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>January 8, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">65,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.15 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 11, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>7,500 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>January 12, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">33,333 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.15 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 12, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>5,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>January 14, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">5,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 15, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>17,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>January 15, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">1,193,500 Options </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$4.77 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 18, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>21,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>January 19, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">274,400 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.15 </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>
<P align=center>- S-18 -</P>
<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>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center><b>Aggregate Number and Type of</b>&nbsp; </TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>Date of
      Issuance</B> </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%"><B>Securities Issued</B> </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%"><B>Price per Security</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 20, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>20,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$2.07 </TD></TR>
  <TR vAlign=top>
    <TD align=center>January 20, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">50,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 20, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>35,600 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.15 </TD></TR>
  <TR vAlign=top>
    <TD align=center>January 21, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">2,500 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 25, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>20,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>January 26, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">25,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$3.07 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 26, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>9,500 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>January 28, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">300,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.15 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 29, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>210,000 Options </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$5.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>February 2, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">10,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$3.07 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>February 2, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>8,500 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>February 5, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">230,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.15 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>February 5, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>2,500 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>February 11, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">19,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>February 14, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>24,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>February 16, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">120,000 Options </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$4.59 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>February 22, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>65,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.15 </TD></TR>
  <TR vAlign=top>
    <TD align=center>March 2, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">133,334 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.15 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>March 2, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>5,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>March 19, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">30,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$4.03 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>March 24, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>1,556,355 Common Shares* </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$5.02 </TD></TR>
  <TR vAlign=top>
    <TD align=center>March 24, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">5,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>April 1, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>21,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$4.50 </TD></TR>
  <TR vAlign=top>
    <TD align=center>April 6, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">53,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>April 9, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>31,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>April 9, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">7,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$2.18 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>April 12, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>1,500 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>April 14, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">11,500 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>April 14, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>10,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$4.50 </TD></TR>
  <TR vAlign=top>
    <TD align=center>April 15, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">3,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>April 19, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>30,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$4.03 </TD></TR>
  <TR vAlign=top>
    <TD align=center>April 20, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">21,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$4.50 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>April 20, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>30,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>April 27, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">2,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR></TABLE>
<BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_19></A>
<P align=center>- S-19 -</P>
<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>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;<b>Aggregate Number and Type of</b>&nbsp; </TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>Date of
      Issuance</B> </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%"><B>Securities Issued</B> </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%"><B>Price per Security</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>May 4, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>33,667 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.71 </TD></TR>
  <TR vAlign=top>
    <TD align=center>May 13, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">7,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>May 18, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>90,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.15 </TD></TR>
  <TR vAlign=top>
    <TD align=center>May 26, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">10,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.15 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>June 16, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>50,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>June 21, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">1,500 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>June 25, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>67,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.71 </TD></TR>
  <TR vAlign=top>
    <TD align=center>June 25, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">25,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$2.18 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>June 29, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>6,500 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>June 29, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">4,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$4.77 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>June 30, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>22,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>July 2, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">50,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>July 7, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>5,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>July 8, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">3,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>August 13, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>100,000 Common Shares* </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$4.25 (deemed) </TD></TR>
  <TR vAlign=top>
    <TD align=center>August 16, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">4,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>August 17, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>2,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>August 31, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">4,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>September 13, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>4,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>September 20, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">4,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>September 22, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>500 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>September 23, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">5,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>September 29, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>1,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>October 1, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">3,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>October 5, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>11,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>October 5, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">2,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$4.77 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>October 6, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>67,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>October 7, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">11,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>October 7, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>4,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$4.77 </TD></TR>
  <TR vAlign=top>
    <TD align=center>October 8, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">5,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$4.77 </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>October 8, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>15,500 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>October 12, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">24,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$2.17 </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=bottom>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center><b>Aggregate Number and Type of</b>&nbsp; </TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B>Date of
      Issuance</B> </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%"><B>Securities Issued</B> </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="30%"><B>Price per Security</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>October 12, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>1,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$1.00 </TD></TR>
  <TR vAlign=top>
    <TD align=center>October 13, 2010 </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">13,000 Common Shares </TD>
    <TD align=center width="2%"  >&nbsp;</TD>
    <TD align=center width="30%">$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>October 13, 2010 </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>7,000 Common Shares </TD>
    <TD align=center width="2%"  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center width="30%" bgColor=#e6efff>$2.17</TD>
  </TR>
  <TR vAlign=top bgcolor="#FFFFFF">
    <TD align=center>October 13, 2010 </TD>
    <TD align=center
    >&nbsp;</TD>
    <TD align=center> 6,500 Common Shares </TD>
    <TD align=center
    >&nbsp;</TD>
    <TD align=center>$4.77</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>October 13, 2010 </TD>
    <TD align=center  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center bgColor=#e6efff>10,000 Common Shares </TD>
    <TD align=center  bgColor=#e6efff
    >&nbsp;</TD>
    <TD align=center bgColor=#e6efff>$4.50</TD>
  </TR>
  <TR vAlign=top bgcolor="#FFFFFF">
    <TD align=center>October 14, 2010 </TD>
    <TD align=center
    >&nbsp;</TD>
    <TD align=center>15,500 Common Shares </TD>
    <TD align=center
    >&nbsp;</TD>
    <TD align=center>$1.00</TD>
  </TR>
</TABLE>
<P align=justify>Note:</P>
<P align=justify>* All common shares were issued pursuant to the exercise of
stock options unless otherwise indicated with a *</P>
<P align=center><B>USE OF PROCEEDS</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The net proceeds from the
offering are not determinable in light of the nature of the distribution. The
net proceeds of any given distribution of common shares through MLV in an
&#147;at-the-market distribution&#148; will represent the gross proceeds after deducting
the compensation payable to MLV under the ATM agreement and expenses of the
distribution. We intend to use any net proceeds from the sale of common shares
offered by this prospectus supplement and the accompanying short form base shelf
prospectus for the completion of construction at the Prosperity Project, which
is currently estimated to require approximately $814 million. We may also use a
portion of the net proceeds for general corporate purposes. Pending the
application of the net proceeds, we intend to invest the net proceeds in
investment grade, interest-bearing securities, the primary objectives of which
are liquidity and capital preservation.</P>
<P align=center><B>DETAILS OF THE OFFERING</B></P>
<P align=justify><I>Common Shares</I></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The authorized share capital of
the Company consists of an unlimited number of common shares without par value,
of which 186,995,853 were issued and outstanding as at October 15,
2010.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holders of common shares are
entitled to receive notice of any meeting of the shareholders of the Company and
to attend and vote thereat, except those meetings at which only the holders
shares of another class or of a particular series are entitled to vote. Each
common share entitles its holder to one vote. Subject to the rights of the
holders of preferred shares, the holders of common shares are entitled to
receive on a pro-rata basis such dividends as the board of directors may declare
out of funds legally available therefor. In the event of the dissolution,
liquidation, winding-up or other distribution of our assets, such holders are
entitled to receive on a pro-rata basis all of assets of the Company remaining
after payment of all of liabilities, subject to the rights of holders of
preferred shares. The Company&#146;s common shares carry no pre-emptive or conversion
rights.</P>
<P align=center><B>PLAN OF DISTRIBUTION</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales of the common shares will
be made in transactions that are deemed to be &#147;at the market distributions&#148; as
defined in NI 44-102, including sales made directly on the NYSE Amex or other
existing trading markets in the United States. Subject to the terms and
conditions of the ATM agreement and upon instructions from us, MLV will use
commercially reasonable efforts to sell our common shares directly on the NYSE
Amex or other existing trading markets in the United States at market prices at
time of sale. We will instruct MLV as to the number of common shares to be sold
by them. No common shares will be sold on the TSX or on other trading markets in
Canada as at-the-market distributions. We or MLV may suspend the offering of
common shares upon proper notice and subject to other conditions.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To compensate MLV for their
services in acting as agent or as principal in the sale of common shares, we
will pay a commission equal to 3% of the first aggregate gross proceeds of US$30
million from sales made pursuant to the ATM agreement. Thereafter we will pay a commission equal
to 2% of any subsequent gross proceeds. We estimate that the total expenses that
we will incur for the offering (including fees payable to stock exchanges,
securities regulatory authorities and our counsel and our auditors, but
excluding compensation payable to MLV under the terms of the ATM agreement) will
be approximately US$150,000.</P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settlement for sales of our
common shares will occur on the third business day following the date on which
any sales are made, or on such other date as is industry practice for
regular-way trading, in return for payment of the net proceeds to us. There is
no arrangement for funds to be received in an escrow trust or similar
arrangement.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the sale of
the common shares on our behalf, MLV may be deemed to be an &#147;underwriter&#148; within
the meaning of the United States Securities Act of 1933, as amended, and the
compensation of MLV may be deemed to be underwriting commissions or discounts.
We have agreed to provide indemnification and contribution to MLV against
certain civil liabilities, including liabilities under the United States
Securities Act of 1933, as amended.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The offering of common shares
pursuant to the ATM agreement will terminate upon the earlier of (i) the
issuance and sale of all common shares subject to the agreement by MLV, and (ii)
November 1, 2010. We may also
terminate the ATM agreement in our sole discretion at any time. In addition, MLV
may terminate the ATM agreement under the circumstances specified in the
agreement and in its sole discretion at any time by giving 10 days&#146; notice to
us.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No underwriter or dealer involved
in the offering, no affiliate of such an underwriter or dealer, and no person or
company acting jointly or in concert with such an underwriter or dealer has
over-allotted, or will over-allot, common shares in connection with the offering
or effect any other transactions that are intended to stabilize or maintain the
market price of the common shares.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The TSX has conditionally
approved the listing of the common shares offered by this prospectus supplement.
Listing is subject to us fulfilling all of the requirements of the TSX within
one business day after the date hereof. We have applied to the NYSE Amex for
approval of the listing of the common shares offered hereunder.</P>
<P align=center><B>CERTAIN UNITED STATES FEDERAL INCOME TAX
CONSIDERATIONS</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a general
summary of certain U.S. federal income tax consequences relevant to a U.S.
Holder (as defined below) arising from and relating to the acquisition,
ownership, and disposition of common shares acquired pursuant to this Prospectus
Supplement.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This summary is for general
information purposes only and does not purport to be a complete analysis or
listing of all potential U.S. federal income tax consequences that may apply to
a U.S. Holder arising from and relating to the acquisition, ownership, and
disposition of common shares acquired pursuant to this Prospectus Supplement. In
addition, this summary does not take into account the individual facts and
circumstances of any particular U.S. Holder that may affect the U.S. federal
income tax consequences to such U.S. Holder. Accordingly, this summary is not
intended to be, and should not be construed as, legal or U.S. federal income tax
advice with respect to any U.S. Holder. This summary does not address the U.S.
federal alternative minimum, U.S. federal estate and gift, U.S. state and local,
and foreign tax consequences to U.S. Holders of the acquisition, ownership, and
disposition of common shares. Each U.S. Holder should consult its own tax
advisor regarding the U.S. federal, U.S. federal alternative minimum, U.S.
federal estate and gift, U.S. state and local tax, and foreign tax consequences
relating to the acquisition, ownership and disposition of common shares.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No legal opinion from U.S. legal
counsel or ruling from the Internal Revenue Service (the &#147;IRS&#148;) has been
requested, or will be obtained, regarding the U.S. federal income tax
consequences of the acquisition, ownership, and disposition of common shares.
This summary is not binding on the IRS, and the IRS is not precluded from taking
a position that is different from, and contrary to, the positions taken in this
summary.</P>
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<P align=justify><B>Scope of this Summary</B></P>
<P align=justify><B><I>Authorities</I></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This summary is based on the
Internal Revenue Code of 1986, as amended (the &#147;Code&#148;), Treasury Regulations
(whether final, temporary, or proposed), published rulings of the IRS, published
administrative positions of the IRS, the Convention Between Canada and the
United States of America with Respect to Taxes on Income and on Capital, signed
September 26, 1980, as amended (the &#147;Canada-U.S. Tax Convention&#148;), and U.S.
court decisions that are applicable and, in each case, as in effect and
available, as of the date of this document. Any of the authorities on which this
summary is based could be changed in a material and adverse manner at any time,
and any such change could be applied on a retroactive or prospective basis. This
summary does not discuss the potential effects, whether adverse or beneficial,
of any proposed legislation that, if enacted, could be applied on a retroactive
or prospective basis.</P>
<P align=justify><B><I>U.S. Holders</I></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this summary, the
term "U.S. Holder" means a beneficial owner of common shares acquired pursuant
to this document that is for U.S. federal income tax purposes: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>an individual who is a citizen or resident of the U.S.; </P>
  <LI>
  <P>a corporation (or other entity taxable as a corporation for U.S. federal
  income tax purposes) organized under the laws of the U.S., any state thereof
  or the District of Columbia; </P>
  <LI>
  <P>an estate whose income is subject to U.S. federal income taxation
  regardless of its source; or </P>
  <LI>
  <P>a trust that (a) is subject to the primary supervision of a court within
  the U.S. and the control of one or more U.S. persons for all substantial
  decisions or (b) has a valid election in effect under applicable Treasury
  Regulations to be treated as a U.S. person. </P></LI></UL>
<P align=justify><B><I>Non-U.S. Holders</I></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this summary, a
&#147;non-U.S. Holder&#148; is a beneficial owner of common shares that is not a U.S.
Holder. This summary does not address the U.S. federal income tax consequences
to non-U.S. Holders arising from and relating to the acquisition, ownership, and
disposition of common shares. Accordingly, a non-U.S. Holder should consult its
own tax advisor regarding the U.S. federal, U.S. federal alternative minimum,
U.S. federal estate and gift, U.S. state and local, and foreign tax consequences
(including the potential application of and operation of any income tax
treaties) relating to the acquisition, ownership, and disposition of common
shares.</P>
<P align=justify><B><I>U.S. Holders Subject to Special U.S. Federal Income Tax
Rules Not Addressed</I></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This summary does not address the
U.S. federal income tax considerations applicable to U.S. Holders that are
subject to special provisions under the Code, including the following: (a) U.S.
Holders that are tax-exempt organizations, qualified retirement plans,
individual retirement accounts, or other tax-deferred accounts; (b) U.S. Holders
that are financial institutions, underwriters, insurance companies, real estate
investment trusts, or regulated investment companies; (c) U.S. Holders that are
broker-dealers, dealers, or traders in securities or currencies that elect to
apply a mark-to-market accounting method; (d) U.S. Holders that have a
&#147;functional currency&#148; other than the U.S. dollar; (e) U.S. Holders that own
common shares as part of a straddle, hedging transaction, conversion
transaction, constructive sale, or other arrangement involving more than one
position; (f) U.S. Holders that acquired common shares in connection with the
exercise of employee stock options or otherwise as compensation for services;
(g) U.S. Holders that hold common shares other than as a capital asset within
the meaning of Section 1221 of the Code (generally, property held for investment
purposes); or (h) U.S. Holders that own or have owned (directly, indirectly, or
by attribution) 10% or more of the total combined voting power of the
outstanding shares of the Company. This summary also does not address the U.S.
federal income tax considerations applicable to U.S. Holders who are: (a) U.S.
expatriates or former long-term residents of the U.S.; (b) persons that have
been, are, or will be a resident or deemed to be a resident in Canada for
purposes of the Income Tax Act (Canada) (the &#147;Tax Act&#148;); (c) persons that use or
hold, will use or hold, or that are or will be deemed to use or hold common
shares in connection with carrying on a business in Canada; (d) persons whose
common shares constitute &#147;taxable Canadian property&#148; under the Tax Act; or (e)
persons that have a permanent establishment in Canada for the purposes of the
Canada-U.S. Tax Convention. U.S. Holders that are subject to special provisions
under the Code, including U.S. Holders described immediately above, should
consult their own tax advisor regarding the U.S. federal, U.S. federal
alternative minimum, U.S. federal estate and gift, U.S. state and local, and
foreign tax consequences relating to the acquisition, ownership and disposition
of common shares.</P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an entity that is classified
as a partnership for U.S. federal income tax purposes holds common shares, the
U.S. federal income tax consequences to such partnership and the partners of
such partnership generally will depend on the activities of the partnership and
the status of such partners. Partners of entities that are classified as
partnerships for U.S. federal income tax purposes should consult their own tax
advisor regarding the U.S. federal income tax consequences arising from and
relating to the acquisition, ownership, and disposition of common shares.</P>
<P align=justify><B>U.S. Federal Income Tax Consequences of the Acquisition,
Ownership and Disposition of Common Shares</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following discussion is
subject to the rules described below under the heading &#147;Passive Foreign
Investment Company (&#147;PFIC&#148;) Rules.&#148;</P>
<P align=justify><B><I>Taxation of Distributions</I></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A U.S. Holder that receives a
distribution, including a constructive distribution, with respect to a common
share will be required to include the amount of such distribution in gross
income as a dividend (without reduction for any Canadian income tax withheld
from such distribution) to the extent of the current or accumulated &#147;earnings
and profits&#148; of the Company, as computed for U.S. federal income tax purposes.
To the extent that a distribution exceeds the current and accumulated &#147;earnings
and profits&#148; of the Company, such distribution will be treated first as a
tax-free return of capital to the extent of a U.S. Holder's tax basis in the
common shares and thereafter as gain from the sale or exchange of such common
shares. (See &#147; Sale or Other Taxable Disposition of Common Shares&#148; below).
However, the Company does not intend to maintain the calculations of earnings
and profits in accordance with U.S. federal income tax principles, and each U.S.
Holder should therefore assume that any distribution by the Company with respect
to the common shares will constitute ordinary dividend income. Dividends
received on common shares generally will not be eligible for the &#147;dividends
received deduction&#148;.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For tax years beginning before
January 1, 2011, a dividend paid to a U.S. Holder who is an individual, estate
or trust by the Company generally will be taxed at the preferential tax rates
applicable to long-term capital gains if the Company is a &#147;qualified foreign
corporation&#148; (&#147;QFC&#148;) and certain holding period requirements for the common
shares are met. The Company generally will be a QFC as defined under Section
1(h)(11) of the Code if the Company is eligible for the benefits of the Canada -
U.S. Tax Convention or its shares are readily tradable on an established
securities market in the U.S. However, even if the Company satisfies one or more
of these requirements, the Company will not be treated as a QFC if the Company
is a &#147;passive foreign investment company (or &#147;PFIC,&#148; as defined below) for the
tax year during which it pays a dividend or for the preceding tax year. See the
section below under the heading &#147;Passive Foreign Investment Company Rules&#148;
below.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a U.S. Holder fails to qualify
for the preferential tax rates discussed above, a dividend paid by the Company
to a U.S. Holder generally will be taxed at ordinary income tax rates (and not
at the preferential tax rates applicable to long-term capital gains). The
dividend rules are complex, and each U.S. Holder should consult its own tax
advisor regarding the application of such rules.</P>
<P align=justify><B><I>Sale or Other Taxable Disposition of Common
Shares</I></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A U.S. Holder will recognize gain
or loss on the sale or other taxable disposition of common shares in an amount
equal to the difference, if any, between (a) the amount of cash plus the fair
market value of any property received and (b) such U.S. Holder&#146;s tax basis in
such common shares sold or otherwise disposed of. Any such gain or loss generally will be capital gain or loss, which will be
long-term capital gain or loss if, at the time of the sale or other disposition,
such common shares are held for more than one year.</P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferential tax rates apply to
long-term capital gains of a U.S. Holder that is an individual, estate, or
trust. There are currently no preferential tax rates for long-term capital gains
of a U.S. Holder that is a corporation. Deductions for capital losses are
subject to significant limitations under the Code.</P>
<P align=justify><B>Additional Considerations</B></P>
<P align=justify><B><I>Receipt of Foreign Currency</I></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The amount of any distribution
paid to a U.S. Holder in foreign currency, or on the sale, exchange or other
taxable disposition of common shares, generally will be equal to the U.S. dollar
value of such foreign currency based on the exchange rate applicable on the date
of receipt (regardless of whether such foreign currency is converted into U.S.
dollars at that time). If the foreign currency received is not converted into
U.S. dollars on the date of receipt, a U.S. Holder will have a basis in the
foreign currency equal to its U.S. dollar value on the date of receipt. Any U.S.
Holder who receives payment in foreign currency and engages in a subsequent
conversion or other disposition of the foreign currency may have a foreign
currency exchange gain or loss that would be treated as ordinary income or loss,
and generally will be U.S. source income or loss for foreign tax credit
purposes. Each U.S. Holder should consult its own U.S. tax advisor regarding the
U.S. federal income tax consequences of receiving, owning, and disposing of
foreign currency.</P>
<P align=justify><B><I>Foreign Tax Credit</I></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the PFIC rules
discussed below, a U.S. Holder that pays (whether directly or through
withholding) Canadian income tax with respect to dividends paid on the common
shares generally will be entitled, at the election of such U.S. Holder, to
receive either a deduction or a credit for such Canadian income tax paid.
Generally, a credit will reduce a U.S. Holder&#146;s U.S. federal income tax
liability on a dollar-for-dollar basis, whereas a deduction will reduce a U.S.
Holder&#146;s income subject to U.S. federal income tax. This election is made on a
year-by-year basis and applies to all foreign taxes paid (whether directly or
through withholding) by a U.S. Holder during a year.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Complex limitations apply to the
foreign tax credit, including the general limitation that the credit cannot
exceed the proportionate share of a U.S. Holder&#146;s U.S. federal income tax
liability that such U.S. Holder&#146;s &#147;foreign source&#148; taxable income bears to such
U.S. Holder&#146;s worldwide taxable income. In applying this limitation, a U.S.
Holder&#146;s various items of income and deduction must be classified, under complex
rules, as either &#147;foreign source&#148; or &#147;U.S. source.&#148; Generally, dividends paid by
a foreign corporation should be treated as foreign source for this purpose, and
gains recognized on the sale of stock of a foreign corporation by a U.S. Holder
should be treated as U.S. source for this purpose, except as otherwise provided
in an applicable income tax treaty, and if an election is properly made under
the Code. However, the amount of a distribution with respect to the common
shares that is treated as a &#147;dividend&#148; may be lower for U.S. federal income tax
purposes than it is for Canadian federal income tax purposes, resulting in a
reduced foreign tax credit allowance to a U.S. Holder. In addition, this
limitation is calculated separately with respect to specific categories of
income. The foreign tax credit rules are complex, and each U.S. Holder should
consult its own U.S. tax advisor regarding the foreign tax credit rules.</P>
<P align=justify><B><I>Backup Withholding and Information Reporting</I></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under U.S. federal income tax law
and Treasury Regulations, certain categories of U.S. Holders must file
information returns with respect to their investment in, or involvement in, a
foreign corporation. For example, recently enacted legislation generally imposes
new U.S. return disclosure obligations (and related penalties) on U.S. Holders
that hold certain specified foreign financial assets in excess of $50,000. The
definition of specified foreign financial assets includes not only financial
accounts maintained in foreign financial institutions, but also, unless held in
accounts maintained by a financial institution, any stock or security issued by
a non-U.S. person, any financial instrument or contract held for investment that
has an issuer or counterparty other than a U.S. person and any interest in a
foreign entity. U. S. Holders may be subject to these reporting requirements
unless their common shares are held in an account at a domestic financial
institution. Penalties for failure to file certain of these information returns
are substantial. U.S. Holders should consult with their own tax advisors
regarding the requirements of filing information returns, and, if applicable,
filing obligations relating to a Mark-to-Market or QEF Election under the PFIC
rules discussed below.</P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments made within the U.S. or
by a U.S. payor or U.S. middleman, of dividends on, and proceeds arising from
the sale or other taxable disposition of, common shares generally may be subject
to information reporting and backup withholding tax, at the rate of 28% (and
increasing to 31% for payments made after December 31, 2010), if a U.S. Holder
(a) fails to furnish such U.S. Holder&#146;s correct U.S. taxpayer identification
number (generally on Form W-9), (b) furnishes an incorrect U.S. taxpayer
identification number, (c) is notified by the IRS that such U.S. Holder has
previously failed to properly report items subject to backup withholding tax, or
(d) fails to certify, under penalty of perjury, that such U.S. Holder has
furnished its correct U.S. taxpayer identification number and that the IRS has
not notified such U.S. Holder that it is subject to backup withholding tax.
However, certain exempt persons generally are excluded from these information
reporting and backup withholding rules. Any amounts withheld under the U.S.
backup withholding tax rules will be allowed as a credit against a U.S. Holder&#146;s
U.S. federal income tax liability, if any, or will be refunded, if such U.S.
Holder furnishes required information to the IRS in a timely manner. Each U.S.
Holder should consult its own tax advisor regarding the information reporting
and backup withholding rules.</P>
<P align=justify><B>Passive Foreign Investment Company Rules</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Company were to constitute
a PFIC for any year during a U.S. Holder&#146;s holding period, then certain
different and potentially adverse rules would affect the U.S. federal income tax
consequences to a U.S. Holder resulting from the acquisition, ownership and
disposition of common shares. In addition, in any year in which the Company is
classified as a PFIC, such holder would be required to file an annual report
with the IRS containing such information as Treasury Regulations and/or other
IRS guidelines may require.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company generally will be a
PFIC under Section 1297 of the Code if, for a tax year, (a) 75% or more of the
gross income of the Company for such tax year is passive income or (b) 50% or
more of the value of its average quarterly assets held by the Company either
produce passive income or are held for the production of passive income, based
on the fair market value of such assets. &#147;Gross income&#148; generally means all
sales revenues less the cost of goods sold, and &#147;passive income&#148; includes, for
example, dividends, interest, certain rents and royalties, certain gains from
the sale of stock and securities, and certain gains from commodities
transactions. Active business gains arising from the sale of commodities
generally are excluded from passive income if substantially all of a foreign
corporation&#146;s commodities are (a) stock in trade of such foreign corporation or
other property of a kind which would properly be included in inventory of such
foreign corporation, or property held by such foreign corporation primarily for
sale to customers in the ordinary course of business, (b) property used in the
trade or business of such foreign corporation that would be subject to the
allowance for depreciation under Section 167 of the Code, or (c) supplies of a
type regularly used or consumed by such foreign corporation in the ordinary
course of its trade or business.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, for purposes of the
PFIC income test and asset test described above, if the Company owns, directly
or indirectly, 25% or more of the total value of the outstanding shares of
another corporation, the Company will be treated as if it (a) held a
proportionate share of the assets of such other corporation and (b) received
directly a proportionate share of the income of such other corporation. In
addition, for purposes of the PFIC income test and asset test described above,
&#147;passive income&#148; does not include any interest, dividends, rents, or royalties
that are received or accrued by the Company from a &#147;related person&#148; (as defined
in Section 954(d)(3) of the Code), to the extent such items are properly
allocable to the income of such related person that is not passive income.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under certain attribution rules,
if the Company is a PFIC, U.S. Holders will be deemed to own their proportionate
share of any subsidiary of the Company which is also a PFIC (a &#145;&#145;Subsidiary
PFIC&#146;&#146;), and will be subject to U.S. federal income tax on (a) a distribution on
the shares of a Subsidiary PFIC or (b) a disposition of shares of a Subsidiary
PFIC, both as if the holder directly held the shares of such Subsidiary
PFIC.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company does not believe that
it was a PFIC during the tax year ended December 31, 2009, and based on current
business plans and financial expectations, the Company does not believe that it
will be a PFIC for the current tax year. However, PFIC classification is fundamentally
factual in nature, generally cannot be determined until the close of the tax
year in question, and is determined annually. Additionally, the analysis
depends, in part, on the application of complex U.S. federal income tax rules,
which are subject to differing interpretations. Consequently, there can be no
assurance that the Company has never been and will not become a PFIC for any tax
year during which U.S. Holders hold common shares.</P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Company were a PFIC in any
tax year and a U.S. Holder held common shares, such holder generally would be
subject to special rules with respect to &#147;excess distributions&#148; made by the
Company on the common shares and with respect to gain from the disposition of
common shares. An &#147;excess distribution&#148; generally is defined as the excess of
distributions with respect to the common shares received by a U.S Holder in any
tax year over 125% of the average annual distributions such U.S. Holder has
received from the Company during the shorter of the three preceding tax years,
or such U.S. Holder&#146;s holding period for the common shares. Generally, a U.S.
Holder would be required to allocate any excess distribution or gain from the
disposition of the common shares ratably over its holding period for the common
shares. Such amounts allocated to the year of the disposition or excess
distribution would be taxed as ordinary income, and amounts allocated to prior
tax years would be taxed as ordinary income at the highest tax rate in effect
for each such year and an interest charge at a rate applicable to underpayments
of tax would apply.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While there are U.S. federal
income tax elections that sometimes can be made to mitigate these adverse tax
consequences (including, without limitation, the &#147;QEF Election&#148; under Section
1295 of the Code and the &#147;Mark-to-Market Election&#148; under Section 1296 of the
Code), such elections are available in limited circumstances and must be made in
a timely manner. U.S. Holders should be aware that, for each tax year, if any,
that the Company is a PFIC, the Company can provide no assurances that it will
satisfy the record keeping requirements of a PFIC, or that it will make
available to U.S. Holders the information such U.S. Holders require to make a
QEF Election with respect of the Company or any Subsidiary PFIC. U.S. Holders
are urged to consult their own tax advisers regarding the potential application
of the PFIC rules to the ownership and disposition of common shares, and the
availability of certain U.S. tax elections under the PFIC rules.</P>
<P align=center><B>WHERE YOU CAN FIND MORE INFORMATION</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taseko is a public company and
files annual, quarterly and other information with the Canadian securities
regulatory authorities and the SEC. You may read and copy, for a fee, any
document that we file with or furnish to the SEC at the SEC&#146;s public reference
room in Washington, D.C. at 100 F Street, N.E., Washington, D.C. 20549. You
should call the SEC at 1-800-SEC-0330 or access its website at www.sec.gov for
further information about the public reference room. You may read and download
the documents we have filed at <U><FONT color=#0000ff>www.sec.gov</FONT></U>.
You may read and download any public document that the Company has filed with
the securities commissions or similar regulatory authorities in Canada at
<U><FONT color=#0000ff>www.sedar.com</FONT></U>.</P>
<P align=center><B>ENFORCEABILITY OF CIVIL LIABILITIES BY U.S. INVESTORS</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are a corporation existing
under the <I>Business Corporations Act </I>(British Columbia). All but one of
our directors, all of our officers, and all of the experts named in this
prospectus supplement and the accompanying prospectus, are residents of Canada
or otherwise reside outside the United States, and all or a substantial portion
of their assets, and all of our assets, are located outside the United States.
We have appointed an agent for service of process in the United States, but it
may be difficult for holders of the common shares who reside in the United
States to effect service within the United States upon those directors, officers
and experts who are not residents of the United States. It may also be difficult
for holders of the common shares who reside in the United States to realize upon
judgments of courts of the United States predicated upon our civil liability and
the civil liability of our directors, officers and experts under the United
States federal securities laws.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have been advised by our
Canadian counsel, Lang Michener LLP, that a judgment of a United States court
predicated solely upon civil liability under United States federal securities
laws would probably be enforceable in Canada if the United States court in which
the judgment was obtained has a basis for jurisdiction in the matter that would be recognized by a Canadian court for the same purposes.
We have also been advised by Lang Michener LLP, however, that there is
substantial doubt whether an action could be brought in Canada in the first
instance on the basis of liability predicated solely upon United States federal
securities laws.</P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have filed with the SEC,
concurrently with our registration statement on Form F-10, an appointment of
agent for service of process on Form F-X. Under the Form F-X, we appointed
Corporation Services Company as our agent for service of process in the United
States in connection with any investigation or administrative proceeding
conducted by the SEC, and any civil suit or action brought against or involving
the Company in a United States court arising out of, related to, or concerning
the offering of the common shares under the registration statement of which this
prospectus supplement and the accompanying short form base shelf prospectus form
a part.</P>
<P align=center><B>LEGAL MATTERS</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain legal matters relating to
the offering will be passed upon for us by Lang Michener LLP, Vancouver, B.C.,
with respect to matters of Canadian law, and Dorsey &amp; Whitney LLP,
Vancouver, B.C. and Seattle, WA, with respect to matters of United States law.
The partners and associates of Lang Michener LLP and Dorsey &amp; Whitney LLP
beneficially own, directly or indirectly, less than 1% of any class of
securities issued by us. As at the date hereof, the partners and associates of
Lang Michener LLP, as a group, and the partners and associates of Dorsey &amp;
Whitney LLP, as a group, each beneficially own, directly or indirectly, less
than 1% of our outstanding common shares.</P>
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<P align=justify><I>No securities regulatory authority has expressed an opinion
  about these securities and it is an offence to claim otherwise. This short form
  base shelf prospectus constitutes a public offering of these securities only in
  those jurisdictions where they may be lawfully offered for sale and therein only
  by persons permitted to sell such securities.</I></P>
<P align=justify><B><I>Information has been incorporated by reference in this
  prospectus from documents filed with the securities commissions or similar
  authorities in Canada. </I></B><I>Copies of the documents incorporated herein by
    reference may be obtained on request without charge from Taseko Mines Limited,
    #300, 905 West Pender Street, Vancouver, British Columbia, V6C 1L6 (Telephone 778-373-4533) (Attn: the Secretary), and are also available electronically at </I><I><U><FONT color=#0000ff>www.sedar.com</FONT></U></I><I>. </I></P>
<P align=center><B>SHORT FORM BASE SHELF PROSPECTUS </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><U>New Issue</U> </TD>
    <TD align=right width="50%">October 8, 2010 </TD>
  </TR>
</TABLE>
<P align=center><img src="tasekologo.jpg" width="384" height="52"></P>
<P align=center><B>$300,000,000</B> </P>
<P align=center><B>Common Shares <BR>
  Warrants <BR>
  Subscription Receipts <BR>
  Units <BR>
  Debt Securities </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>This offering is made by a
  foreign issuer that is permitted, under a multijurisdictional disclosure system
  adopted by the United States, to prepare the Prospectus in accordance with
  Canadian disclosure requirements. Prospective investors should be aware that
  such requirements are different from those of the United States. Financial
  statements included or incorporated herein have been prepared in accordance with
  Canadian generally accepted accounting principles, and are subject to Canadian
  auditing and auditor independence standards, and thus may not be comparable to
  financial statements of United States companies.</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Prospective investors should
  be aware that the acquisition of the Securities described herein may have tax
  consequences both in the United States and Canada. Although the Company intends
  to include in the applicable prospectus supplement a description of certain
  income tax consequences to an investor acquiring any securities offered
  thereunder, such consequences for investors who are resident in, or citizens of,
  the United States may not be described fully therein. </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The enforcement by investors
  of civil liabilities under the federal securities laws of the United States may
  be affected adversely by the fact that the Company is incorporated or organized
  under the laws of a foreign country, that some or all of its officers and
  directors may be residents of a foreign country, that some or all of the experts
  named in the registration statement may be residents of a foreign country, and
  that all or a substantial portion of the assets of the Company and said persons
  may be located outside the United States.</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THESE SECURITIES HAVE NOT BEEN
  APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION (THE &#147;SEC&#148;);
  NOR HAS THE SEC PASSED UPON THE ACCURACY OR ADEQUACY OF THE PROSPECTUS. ANY
  REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.</B> </P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This short form base shelf
  prospectus (the &#147;Prospectus&#148;) relates to the offering for sale of common shares
  (the &#147;Common Shares&#148;), warrants (the &#147;Warrants&#148;), subscription receipts, debt
  securities, or any combination of such securities (the &#147;Units&#148;) (all of the
  foregoing, collectively, the &#147;Securities&#148;) by Taseko Mines Limited (the
  &#147;Company&#148; or &#147;Taseko&#148;) from time to time, during the 25-month period that the
  Prospectus, including any amendments hereto, remains effective, in one or more
  series or issuances, with a total offering price of the Securities in the
  aggregate, of up to $300,000,000. The Securities may be offered in amounts at
  prices to be determined based on market conditions at the time of the sale and
  set forth in an accompanying prospectus supplement. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s outstanding Common
  Shares are listed for trading on the Toronto Stock Exchange (the &#147;TSX&#148;) under
  the trading symbol &#147;TKO&#148; and on the NYSE Amex Equities Exchange (&#147;Amex&#148;) under
  the trading symbol &#147;TGB&#148;. The closing price of the Company&#146;s Common Shares on
  the TSX and Amex on October 7, 2010, the last trading day before the date of the
  Prospectus, was $6.05 per Common Share and US$5.93 per Common Share,
  respectively. <B>An investment in the Securities offered hereunder invokes a
    high degree of risk. The risk factors identified under the heading </B>&#147;<B>Risk
      Factors</B>&#148;<B> and elsewhere in the Prospectus should be carefully reviewed and
        evaluated by prospective subscribers before purchasing the Securities being
        offered hereunder. </B>See &#147;Risk Factors&#148;<B>. </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All information permitted under
  applicable securities legislation to be omitted from the Prospectus will be
  contained in one or more prospectus supplements that will be delivered to
  purchasers together with the Prospectus, except in cases where an exemption from
  such delivery requirements have been obtained. Each prospectus supplement will
  be incorporated by reference into the Prospectus for the purposes of applicable
  securities legislation as of the date of the prospectus supplement and only for
  the purposes of the distribution of the Securities to which the prospectus
  supplement pertains. Investors should read the Prospectus and any applicable
  prospectus supplement carefully before investing in the Company&#146;s
  Securities.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The specific terms of the
  Securities with respect to a particular offering will be set out in the
  applicable prospectus supplements and may include, where applicable: (i) in the
  case of Common Shares, the number of Common Shares offered, the offering price
  and any other specific terms; (ii) in the case of Warrants, the offering price,
  the designation, number and terms of the Common Shares issuable upon exercise of
  the Warrants, any procedures that will result in the adjustment of these
  numbers, the exercise price, dates and periods of exercise, the currency in
  which the Warrants are issued and any other specific terms; (iii) in the case of
  subscription receipts, the number of subscription receipts being offered, the
  offering price, the procedures for the exchange of the subscription receipts for
  Common Shares or Warrants, as the case may be, and any other specific terms;
  (iv) in the case of debt securities, the specific designation, aggregate
  principal amount, the currency or the currency unit for the debt securities may
  be purchased, the maturity, interest provisions, authorized denominations,
  offering price, covenants, events of default, any terms for redemption or
  retraction, any exchange or conversion terms, whether the debt is senior or
  subordinated and any other terms specific to the debt securities being offered;
  and (v) in the case of Units, the designation, number and terms of the Common
  Shares, Warrants, subscription receipts or debt securities comprising the Units.
  Where required by statute, regulation or policy, and where Securities are
  offered in currencies other than Canadian dollars, appropriate disclosure of
  foreign exchange rates applicable to the Securities will be included in the
  prospectus supplement describing the Securities.<B> </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&rsquo;s Securities may be sold through underwriters or dealers or directly or through agents designated from time to time at amounts and prices and other terms determined by the Company.  In connection with any underwritten offering of Securities, the underwriters may over-allot or effect transactions which stabilize or maintain the market price of the Securities.  Such transactions, if commenced, may be discontinued at any time.  See &ldquo;Plan of Distribution&rdquo;. A prospectus supplement will set out the names of any underwriters, dealers or agents involved in the sale of the Securities, the amounts, if any, to be purchased by underwriters, the plan of distribution for the Securities, including the net proceeds the Company expects to receive from the sale of the Securities, if any, the amounts and prices at which the Securities are sold and the compensation of such underwriters, dealers or agents.</P>
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<P align=center>- iii - </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No underwriter has been involved
  in the preparation of the Prospectus or performed any review of the contents of
  the Prospectus. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is a foreign private
  issuer under United States securities laws and is permitted, under a
  multi-jurisdictional disclosure system adopted by the United States, to prepare
  the Prospectus in accordance with Canadian disclosure requirements. Investors
  should be aware that such requirements are different from those of the United
  States. In particular, the Company has prepared its financial statements in
  accordance with Canadian generally accepted accounting principles (&#147;Canadian
  GAAP&#148;), and they are subject to Canadian auditing and auditor independence
  standards. Thus, they may not be comparable to the financial statements of U.S.
  companies (see the discussion under the heading, &#147;Note to United States Readers
  Regarding Differences Between United States and Canadian Reporting Practices,&#148;
  for more information). In addition, the disclosure in the Prospectus, including
  the documents incorporated by reference herein, uses mineral resource
  classification terms and contains mineral resource estimates that comply with
  reporting standards in Canada that differ significantly from the requirements of
  the U.S. Securities and Exchange Commission (the &#147;SEC&#148;). Accordingly, the
  information contained in the Prospectus and the documents incorporated by
  reference herein describing the Company&#146;s 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 (see
  the discussion under the heading, &#147;Cautionary Note to United States Investors
  Regarding Estimates of Reserves and Measured, Indicated and Inferred Resources,&#148;
  for more information). </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Prospectus is part of a
  registration statement on Form F-10 relating to the Securities that the Company
  filed with the SEC. The Prospectus does not contain all of the information
  contained in the registration statement, certain parts of which are omitted in
  accordance with the rules and regulations of the SEC. Investors should refer to
  the registration statement and the exhibits to the registration statement for
  further information with respect to the Company and the Securities. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investors should rely only on the
  information contained or incorporated by reference in the Prospectus and any
  applicable prospectus supplement. The Company has not authorized anyone to
  provide Investors with different or additional information. If anyone provides
  Investors with different or additional information, Investors should not rely on
  it. The Company is not making an offer to sell or seeking an offer to buy the
  Securities in any jurisdiction where the offer or sale is not permitted.
  Investors should assume that the information contained in the Prospectus and any
  applicable prospectus supplement is accurate only as of the date on the front of
  those documents and that information contained in any document incorporated by
  reference is accurate only as of the date of that document, regardless of the
  time of delivery of the Prospectus and any applicable prospectus supplement or
  of any sale of the Company&#146;s securities. The Company&#146;s business, financial
  condition, results of operations and prospects may have changed since those
  dates. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Market data and certain industry
  forecasts used in the Prospectus and any applicable prospectus supplement and
  the documents incorporated by reference in the Prospectus and any applicable
  prospectus supplement were obtained from market research, publicly available
  information and industry publications. The Company believes that these sources
  are generally reliable, but the accuracy and completeness of this information is
  not guaranteed. The Company has not independently verified this information, and
  the Company does not make any representation as to the accuracy of this
  information. </P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the Prospectus and any
  prospectus supplement, unless otherwise indicated, all dollar amounts are in
  Canadian dollars. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The head office of the Company is
  located at Suite 300 - 905 West Pender Street, Vancouver, British Columbia, V6C
  1L6. The registered office of the Company is located at Suite 1500 &#150; 1055 West
  Georgia Street, Vancouver, British Columbia V6E 4N7. </P>
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<P align=center><B>TABLE OF CONTENTS </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 bgColor=#eeeeee><A
      href="#page_P-1">DOCUMENTS
      INCORPORATED BY REFERENCE </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee><A
      href="#page_P-1">1 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_P-2">FORWARD
      LOOKING STATEMENTS </A></TD>
    <TD align=right width="5%"><A
      href="#page_P-2">2 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_P-4">INTERPRETATION,
      CURRENCY AND EXCHANGE RATES AND GENERAL INFORMATION </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee><A
      href="#page_P-4">4 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_P-4">CAUTIONARY
      NOTE TO UNITED STATES INVESTORS REGARDING ESTIMATES OF RESERVES AND
      MEASURED, INDICATED AND INFERRED RESOURCES </A></TD>
    <TD align=right width="5%"><A
      href="#page_P-4">4 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_P-5">NOTE
      TO UNITED STATES READERS REGARDING DIFFERENCES BETWEEN UNITED STATES AND
      CANADIAN REPORTING PRACTICES </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee><A
      href="#page_P-5">5 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_P-6">ADDITIONAL
      INFORMATION </A></TD>
    <TD align=right width="5%"><A
      href="#page_P-6">6 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_P-7">ENFORCEABILITY
      OF CIVIL LIABILITIES BY U.S. INVESTORS </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee><A
      href="#page_P-7">7 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_P-8">THE
      COMPANY </A></TD>
    <TD align=right width="5%"><A
      href="#page_P-8">8 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_P-13">USE
      OF PROCEEDS </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee><A
      href="#page_P-13">13 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_P-13">CONSOLIDATED
      CAPITALIZATION </A></TD>
    <TD align=right width="5%"><A
      href="#page_P-13">13 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_P-13">PRIOR
      SALES </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee><A
      href="#page_P-13">13 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_P-16">TRADING
      PRICE AND VOLUME </A></TD>
    <TD align=right width="5%"><A
      href="#page_P-16">16 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_P-17">PLAN
      OF DISTRIBUTION </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee><A
      href="#page_P-17">17 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_P-18">DESCRIPTION
      OF SECURITIES </A></TD>
    <TD align=right width="5%"><A
      href="#page_P-18">18 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_P-34">RISK
      FACTORS </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee><A
      href="#page_P-34">34 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_P-38">CANADIAN
      FEDERAL INCOME TAX CONSIDERATIONS </A></TD>
    <TD align=right width="5%"><A
      href="#page_P-38">38 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_P-38">MATERIAL
      U.S. FEDERAL INCOME TAX CONSIDERATIONS </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee><A
      href="#page_P-38">38 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_P-38">MATERIAL
      CONTRACTS </A></TD>
    <TD align=right width="5%"><A
      href="#page_P-38">38 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_P-39">LEGAL
      MATTERS </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee><A
      href="#page_P-39">39 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><A
      href="#page_P-39">AUDITORS,
      TRANSFER AGENT AND REGISTRAR </A></TD>
    <TD align=right width="5%"><A
      href="#page_P-39">39 </A></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A
      href="#page_P-39">DOCUMENTS
      FILED AS PART OF THE REGISTRATION STATEMENT </A></TD>
    <TD align=right width="5%" bgColor=#eeeeee><A
      href="#page_P-39">39 </A></TD>
  </TR>
</TABLE>
<BR>
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<P align=center>- 1 - </P>
<P align=center><B>DOCUMENTS INCORPORATED BY REFERENCE </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Information has been
  incorporated by reference in the Prospectus from documents filed with the
  securities commissions of the Provinces of British Columbia, Alberta,
  Saskatchewan, Manitoba, Ontario, Newfoundland and Labrador, New Brunswick, Nova
  Scotia and Prince Edward Island. </B>Copies of the documents incorporated herein
  by reference may be obtained on request without charge from Taseko Mines
  Limited, #300, 905 West Pender Street, Vancouver, British Columbia, V6C 1L6
  (Telephone 778-373-4533) Attn: the Secretary, and are also available
  electronically at <U><FONT color=#0000ff>www.sedar.com</FONT></U>. The Company&#146;s
  filings through SEDAR are not incorporated by reference in the Prospectus except
  as specifically set out herein. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following documents filed with the securities commission or similar regulatory authority in the Provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Newfoundland and Labrador, New Brunswick, Nova Scotia and Prince Edward Island, are specifically incorporated by reference into and, except where herein otherwise provided, form an integral part of, the Prospectus:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>
    <div align="justify">annual information form dated March 31, 2010 for the fiscal year ended
      December 31, 2009 (the &#147;Annual Information Form&#148;); <br>
      &nbsp; </div>
  <LI>
    <div align="justify">consolidated financial statements and the notes thereto for the fiscal
      periods ended December 31, 2009 and 2008 and September 30, 2007, together with
      the auditors&#146; report thereon and management&#146;s discussion and analysis for the
      year ended December 31, 2009; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">unaudited interim consolidated financial statements and notes thereto for
      the three and six months ended June 30, 2010 and management&#146;s discussion and
      analysis for the three and six months ended June 30, 2010; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">management information circular dated May 13, 2010 relating to the annual
      general meeting of shareholders held June 16, 2010; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">audited Supplementary Note entitled &#147;Reconciliation with United States
      Generally Accepted Accounting Principles&#148; for the year ended December 31,
      2009, the fifteen months ended December 31, 2008, and the year ended September
      30, 2007; and <br>
      &nbsp; </div>
  <LI>
    <div align="justify">unaudited Supplementary Note entitled &#147;Reconciliation with United States
      Generally Accepted Accounting Principles&#148; as at June 30, 2010, and for the
      three and six months ended June 30, 2010. </div>
  </LI>
</UL>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Material change reports (other
  than confidential reports), business acquisition reports, interim financial
  statements, all other documents of the type referred to above and any other
  document of the type required by National Instrument 44-101 &#150; <I>Short Form
    Prospectus Distributions</I> to be incorporated by reference in a short form
  prospectus, filed by the Company with the securities commission or similar
  regulatory authority in the Provinces of British Columbia, Alberta, Manitoba,
  Ontario, Saskatchewan, Newfoundland and Labrador, New Brunswick, Nova Scotia and
  Prince Edward Island after the date of the Prospectus and before completion or
  withdrawal of the offering, will also be deemed to be incorporated by reference
  into this prospectus. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent that any document
  or information incorporated by reference into the Prospectus is included in any
  report on Form 6-K, Form 40-F, Form 20-F, Form 10-K, Form 10-Q or Form 8-K (or
  any respective successor form) that is filed with or furnished to
  the SEC after the date of the Prospectus, such document or information shall be
  deemed to be incorporated by reference as an exhibit to the registration
  statement of which the Prospectus forms a part. In addition, the Company may
  incorporate by reference into the Prospectus, or the registration statement of
  which it forms a part, other information from documents that the Company files
  with or furnishes to the SEC pursuant to Section 13(a) or 15(d) of the United
  States Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;), if and
  to the extent expressly provided therein. </P>
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<P align=center>- 2 - </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All information permitted under applicable securities legislation to be omitted from the Prospectus will be contained in one or more prospectus supplements that will be delivered to purchasers together with the Prospectus, except in cases where an exemption from such delivery requirements has been obtained.  Each prospectus supplement will be incorporated by reference into the Prospectus for the purposes of applicable securities legislation as of the date of the prospectus supplement and only for the purpose of the distribution of the Securities to which the prospectus supplement pertains.  Investors should read the Prospectus and any applicable prospectus supplement carefully before investing in the Company&rsquo;s Securities. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Any statement contained in a
  document incorporated or deemed to be incorporated by reference herein will be
  deemed to be modified or superseded for the purposes of the Prospectus to the
  extent that a statement contained herein or in any other subsequently filed
  document that is also incorporated or is deemed to be incorporated by reference
  herein modifies or supersedes such statement. The modifying or superseding
  statement need not state that it has modified or superseded a prior statement or
  include any other information set forth in the document that it modifies or
  supersedes. The making of a modifying or superseding statement will not be
  deemed an admission for any purpose that the modified or superseded statement,
  when made, constituted a misrepresentation, an untrue statement of a material
  fact or an omission to state a material fact that is required to be stated or
  that is necessary to make a statement not misleading in light of the
  circumstances in which it was made. Any statement so modified or superseded will
  not be deemed, except as so modified or superseded, to constitute a part of the
  Prospectus. </B></P>
<P align=center><B>FORWARD LOOKING STATEMENTS </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Prospectus, including the
  documents incorporated by reference, contain forward-looking statements and
  forward-looking information (collectively referred to as &#147;forward-looking
  statements&#148;) which may not be based on historical fact, including without
  limitation statements regarding the Company&#146;s expectations in respect of future
  financial position, business strategy, future production, reserve potential,
  exploration drilling, exploitation activities, events or developments that the
  Company expects to take place in the future, projected costs and plans and
  objectives. Often, but not always, forward-looking statements can be identified
  by the use of the words &#147;believes&#148;, &#147;may&#148;, &#147;plan&#148;, &#147;will&#148;, &#147;estimate&#148;,
  &#147;scheduled&#148;, &#147;continue&#148;, &#147;anticipates&#148;, &#147;intends&#148;, &#147;expects&#148;, and similar
  expressions.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such statements reflect the
  Company&#146;s current views with respect to future events and are subject to risks
  and uncertainties and are necessarily based upon a number of estimates and
  assumptions that, while considered reasonable by the Company, are inherently
  subject to significant business, economic, competitive, political and social
  uncertainties and contingencies. Many factors could cause the Company&#146;s actual
  results, performance or achievements to be materially different from any future
  results, performance, or achievements that may be expressed or implied by such
  forward-looking statements, including, among others: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
    <div align="justify">delays or inability to successfully complete the environmental assessment
      review process; </div>
  </LI>
</UL>
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<P align=center>- 3 - </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
    <div align="justify">the potential for increase in the cash cost of production; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">lack of mineral reserves at the Harmony Project and Aley Project; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">the estimates of mineral resources is a subjective process, the accuracy
      of which is a function of the quantity and quality of available data and the
      assumptions made and judgment used in the engineering and geological
      interpretation, which may prove to be unreliable, and may be subject to
      revision based on various factors; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">fluctuation of metal prices and currency rates; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">uncertain project realization values; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">current global economic conditions; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">changes in mining legislation adversely affecting our operations; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">inability to obtain adequate financing on acceptable terms; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">inability to obtain necessary exploration and mining permits and comply
      with all government requirements including environmental, health and safety
      laws; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">inability to attract and retain key personnel; and <br>
      &nbsp; </div>
  <LI>
    <div align="justify">other risks detailed from time-to-time in the Company&#146;s quarterly filings,
      annual information forms, annual reports and annual filings with securities
      regulators, and those risks which are discussed under the heading &#147;Risk
      Factors&#148;. </div>
  </LI>
</UL>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such information is included,
  among other places, in the Prospectus under the headings &#147;The Company&#148;, &#147;Use of
  Proceeds&#148;, &#147;Risk Factors&#148; and in the annual information form under the heading
  &#147;Description of Business&#148; and in the Management&#146;s Discussion and Analysis for
  the year ended December 31, 2009, each of such documents being incorporated by
  reference in the Prospectus. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These factors should be
  considered carefully and readers are cautioned not to place undue reliance on
  the forward-looking statements. Readers are cautioned that the foregoing list of
  risk factors is not exhaustive and it is recommended that prospective investors
  consult the more complete discussion of risks and uncertainties facing the
  Company included in the Prospectus. See &#147;Risk Factors&#148; for a more detailed
  discussion of these risks. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although the Company believes
  that the expectations conveyed by the forward-looking statements are reasonable
  based on the information available to it on the date such statements were made,
  no assurances can be given as to future results, approvals or achievements. The
  forward-looking statements contained in the Prospectus and the documents
  incorporated by reference herein are expressly qualified by this cautionary
  statement. The Company disclaims any duty to update any of the forward-looking
  statements after the date of the Prospectus to conform such statements to actual
  results or to changes in the Company&#146;s expectations except as otherwise required
  by applicable law. </P>
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<P align=center>- 4 - </P>
<P align=center><B>INTERPRETATION, CURRENCY AND EXCHANGE RATES AND GENERAL
  INFORMATION </B></P>
<P align=justify>In the Prospectus: <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 align=left ><B>g/t</B> </TD>
    <TD align=left width="75%">means grams per tonne; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left ><B>kV</B> </TD>
    <TD align=left width="75%">means kilovolts; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left ><B>lb</B> </TD>
    <TD align=left width="75%">means pound; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left ><B>NI 43-101</B> </TD>
    <TD align=left width="75%">means National Instrument 43-101 - Standards of
      Disclosure for Mineral Projects; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left ><B>ton</B> </TD>
    <TD align=left width="75%">means 2,000 pounds; and </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left ><B>tonne or t</B> </TD>
    <TD align=left width="75%">means 1 metric tonne, equal to 1,000 kilograms,
      or 1.102 tons. </TD>
  </TR>
</TABLE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless the context otherwise
  requires, references to the &#147;Company&#148; &#147;we&#148;, &#147;our&#148;, &#147;us&#148; or &#147;Taseko&#148; mean Taseko
  Mines Limited and the Company&#146;s subsidiary, Gibraltar Mines Ltd. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All currency amounts in the
  Prospectus are in Canadian dollars unless otherwise indicated. On October 7,
  2010, CDN$1.00 was equivalent to US$0.9837 as reported by the Bank of Canada. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taseko uses the imperial measure
  of tons to describe its reserves and resources at the Gibraltar Mine, and uses
  metric tonnes to describe its reserves and resources at the Prosperity Project.
  The difference is due to the age of the projects and, since the Gibraltar Mine
  has been in production for many years, it has continued to use the imperial
  measure for consistency, whereas the Prosperity Project has adopted the metric
  standard used in Canada today. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The address of the Company&#146;s
  website is <U><FONT color=#0000ff>www.tasekomines.com</FONT></U>. Information
  contained on the Company&#146;s website is not part of the Prospectus or incorporated
  by reference herein. Prospective investors should rely only on the information
  contained or incorporated by reference in the Prospectus. The Company has not
  authorized any person to provide different information.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Securities being offered for
  sale under this prospectus may only be sold in those jurisdictions in which
  offers and sales of the Securities are permitted. The Prospectus is not an offer
  to sell or a solicitation of an offer to buy the Securities in any jurisdiction
  where it is unlawful to do so. The information contained in the Prospectus is
  accurate only as of the date of the Prospectus, regardless of the time of
  delivery of this prospectus or of any sale of the Securities. </P>
<P align=center><B>CAUTIONARY NOTE TO UNITED STATES INVESTORS REGARDING
  ESTIMATES OF <BR>
  RESERVES AND MEASURED, INDICATED AND INFERRED RESOURCES </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The disclosure in the Prospectus,
  including the documents incorporated by reference herein, uses mineral resource
  classification terms that comply with reporting standards in Canada, and certain
  mineral resource estimates are made in accordance with 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 the Prospectus 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>
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<P align=center>- 5 - </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Prospectus 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 Exchange Act), as
  interpreted by the 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 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 prospectus may not qualify as &#147;reserves&#148; under SEC
  standards. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Prospectus 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.
  The Company advises prospective 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 SEC defined 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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 the Prospectus is economically or legally mineable.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the above reasons,
  information contained in the Prospectus and the documents incorporated by
  reference herein containing descriptions of the Company&#146;s 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>
<P align=center><B>NOTE TO UNITED STATES READERS REGARDING DIFFERENCES BETWEEN
  UNITED <BR>
  STATES AND CANADIAN FINANCIAL REPORTING PRACTICES </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taseko prepares its financial
  statements in accordance with Canadian GAAP, which differ from U.S. generally
  accepted accounting principles (&#147;U.S. GAAP&#148;). Therefore, the Company&#146;s financial
  statements incorporated by reference in the Prospectus, and in the documents
  incorporated by reference in this Prospectus, may not be comparable to financial
  statements prepared in accordance with U.S. GAAP. Prospective investors should
  refer to: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
    <div align="justify">the audited Supplementary Note entitled &#147;Reconciliation with United States
      Generally Accepted Accounting Principles&#148; for the year ended December 31,
      2009, the fifteen months ended December 31, 2008, and the year ended September
      30, 2007 (as furnished to the SEC on Form 6- K on September 17, 2010); and </div>
  </LI>
</UL>
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<P align=center>- 6 - </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
    <div align="justify">the unaudited Supplementary Note entitled &#147;Reconciliation with United
      States Generally Accepted Accounting Principles&#148; as at June 30, 2010, and for
      the three and six months ended June 30, 2010 (as furnished to the SEC on Form
      6-K on September 17, 2010), </div>
  </LI>
</UL>
<P align=justify>for a discussion of the principal differences between the Company&rsquo;s financial results determined under Canadian GAAP and under U.S. GAAP.  The Supplementary Notes should be read in conjunction with, respectively, the Company&rsquo;s audited consolidated financial statements as at and for the periods ended December 31, 2009 and 2008 and September 30, 2007, and the Company&rsquo;s unaudited interim consolidated financial statements for the three and six months ended June 30, 2010.  See &ldquo;Documents Incorporated by Reference&rdquo;.</P>
<P align=center><B>ADDITIONAL INFORMATION </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has filed with the
  SEC a registration statement on Form F-10 under the United States Securities Act
  of 1933, as amended (the &#147;U.S. Securities Act&#148;), relating to the offering of the
  Securities. The Prospectus, which constitutes a part of the registration
  statement, does not contain all of the information contained in the registration
  statement, certain items of which are contained in the exhibits to the
  registration statement as permitted by the rules and regulations of the SEC.
  Statements included or incorporated by reference in the Prospectus about the
  contents of any contract, agreement or other documents referred to are not
  necessarily complete, and in each instance, you should refer to the exhibits for
  a more complete description of the matter involved. Each such statement is
  qualified in its entirety by such reference. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is subject to the
  informational reporting requirements of the Exchange Act as the Common Shares
  are registered under Section 12(b) of the Exchange Act. Accordingly, the Company
  is required to publicly file reports and other information with the SEC. Under
  the multi-jurisdictional disclosure system adopted by the United States and
  Canada (the &#147;MJDS&#148;), the Company is permitted to prepare such reports and other
  information in accordance with Canadian disclosure requirements, which are
  different from United States disclosure requirements. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a foreign private issuer, the
  Company is exempt from the rules under the Exchange Act prescribing the
  furnishing and content of proxy statements in connection with meetings of its
  shareholders. In addition, the officers, directors and principal shareholders of
  the Company are exempt from the reporting and short-swing profit recovery rules
  contained in Section 16 of the Exchange Act. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company files annual reports
  on Form 40-F with the SEC under the MJDS, which annual reports include: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
    <div align="justify">the annual information form; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">management&#146;s discussion and analysis of financial condition and results of
      operations; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">consolidated audited financial statements, which are prepared in
      accordance with Canadian GAAP and reconciled to U.S. GAAP; and <br>
      &nbsp; </div>
  <LI>
    <div align="justify">other information specified by the Form 40-F. </div>
  </LI>
</UL>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a foreign private issuer, the
  Company is required to furnish the following types of information to the SEC
  under cover of Form 6-K: </P>
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<P align=center>- 7 - </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
    <div align="justify">material information that the Company otherwise makes publicly available
      in reports that the Company files with securities regulatory authorities in
      Canada; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">material information that the Company files with, and which is made public
      by, the TSX; and <br>
      &nbsp; </div>
  <LI>
    <div align="justify">material information that the Company distributes to its shareholders in
      Canada. </div>
  </LI>
</UL>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investors may read and copy, for
  a fee, any document that the Company has filed with or furnished to the SEC at
  the SEC&#146;s public reference room in Washington, D.C. at 100 F Street, N.E.,
  Washington, D.C. 20549. Investors should call the SEC at 1-800-SEC-0330 or
  access its website at www.sec.gov for further information about the public
  reference room. Investors may read and download some of the documents the
  Company has filed with the SEC&#146;s Electronic Data Gathering and Retrieval system
  (&#147;EDGAR&#148;) at www.sec.gov. Investors may read and download any public document
  that the Company has filed with the securities commissions or similar regulatory
  authorities in Canada at www.sedar.com. </P>
<P align=center><B>ENFORCEABILITY OF CIVIL LIABILITIES BY U.S. INVESTORS</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is a corporation
  existing under the <I>Business Corporations Act</I> (British Columbia). All but
  one of the Company&#146;s directors, all of its officers, and all of the experts
  named in the Prospectus, are residents of Canada or otherwise reside outside the
  United States, and all or a substantial portion of their assets, and all of the
  Company&#146;s assets, are located outside the United States. The Company has
  appointed an agent for service of process in the United States, but it may be
  difficult for holders of the Securities who reside in the United States to
  effect service within the United States upon those directors, officers and
  experts who are not residents of the United States. It may also be difficult for
  holders of the Securities who reside in the United States to realize upon
  judgments of courts of the United States predicated upon the Company&#146;s civil
  liability and the civil liability of its directors, officers and experts under
  the United States federal securities laws. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has been advised by
  its Canadian counsel, Lang Michener LLP, that a judgment of a United States
  court predicated solely upon civil liability under United States federal
  securities laws would probably be enforceable in Canada if the United States
  court in which the judgment was obtained has a basis for jurisdiction in the
  matter that would be recognized by a Canadian court for the same purposes. The
  Company has also been advised by Lang Michener LLP, however, that there is
  substantial doubt whether an action could be brought in Canada in the first
  instance on the basis of liability predicated solely upon United States federal
  securities laws. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company filed with the SEC,
  concurrently with its registration statement on Form F-10, an appointment of
  agent for service of process on Form F-X. Under the Form F-X, the Company
  appointed Corporation Service Company as its agent for service of process in the
  United States in connection with any investigation or administrative proceeding
  conducted by the SEC, and any civil suit or action brought against or involving
  the Company in a United States court arising out of, related to, or concerning
  the offering of the Securities under the Prospectus. </P>
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<P align=center>- 8 - </P>
<P align=center><B>THE COMPANY </B></P>
<P align=justify><B>Overview </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taseko was incorporated on April
  15, 1966 under the laws of the Province of British Columbia. Taseko&#146;s registered
  office is located at Suite 1500-1055 West Georgia, Vancouver, British Columbia,
  V6E 4N7, and its operational head office is located at Suite 300, 905 West
  Pender Street, Vancouver, British Columbia, V6C 1L6. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taseko has one material active
  wholly owned subsidiary, Gibraltar Mines Ltd. (&#147;Gibraltar&#148;), and other inactive
  or non-material subsidiaries described in the Annual Information Form. Taseko
  owns 100% of the common shares of Gibraltar but none of Gibraltar&#146;s issued
  preferred shares.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March 31, 2010, the Company
  sold a 25% joint venture interest in the Gibraltar mine, a copper and molybdenum
  mine (the &#147;Gibraltar Mine&#148;), to Cariboo Copper Corp. (&#147;Cariboo&#148;) for $187.0
  million. Cariboo is a consortium that consists of Sojitz Corporation (50%), Dowa
  Corporation (25%) and Furakawa Corporation (25%). The Company retains a 75%
  interest in the Gibraltar joint venture and is the operator of the Gibraltar
  Mine. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Gibraltar Mine restarted
  operations in October 2004 after being on standby for several years. Taseko also
  owns the Prosperity gold-copper project (the &#147;Prosperity Project&#148;) which is at
  the post-feasibility stage with an environmental assessment underway. In
  addition, Taseko has non-material properties including the Harmony gold project
  (the &#147;Harmony Project&#148;) which is at the late exploration stage but is currently
  inactive, and the Aley niobium property (the &#147;Aley Project&#148;), where Taseko
  carried out an initial exploration program and which is also inactive. All of
  these projects are located in British Columbia, Canada. </P>
<P align=justify><B>Gibraltar Mine </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless stated otherwise,
  information of a technical or scientific nature related to the Gibraltar Mine
  contained in the Prospectus (including documents incorporated by reference
  herein) 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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Gibraltar Mine is located
  near the City of Williams Lake in south-central British Columbia. As at December
  31, 2009, the Gibraltar Mine had proven and probable mineral reserves of 459.9
  million tons grading 0.315% copper and 0.008% molybdenum (see Table 1). </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Gibraltar Mine obtained government permitting and re-started operation in early October 2004 following several years on care and maintenance as a result of low metal prices. Commercial production re-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, and 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 (&ldquo;tpd&rdquo;) has been ongoing since the completion of construction. The construction schedule of a Phase 2 expansion program, designed to increase the concentrator capacity from 46,000 tpd to 55,000 tpd, was modified as a result of management&rsquo;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, and installation of the in-pit crusher and conveyor and the SAG mill direct feed system.</P>
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<P align=center>- 9 - </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One hundred seventy-three new
  diamond drill holes were completed between July 2007 and September 2008, of
  which 115 holes were included in the Gibraltar Extension geological model, and
  allowed for expansion and update of the reserves at the Gibraltar Mine. The
  Gibraltar Extension is a body of mineralization on the Gibraltar Mine property
  which has shape and structure that are significantly different from other
  deposits that occur on the property. Drilling up until the 2008 program had
  provided details of the northwest and southeast portions of the Gibraltar
  deposit but the central zone was under-drilled and poorly defined. The 2008
  program objective was to test the continuity of mineralization between the two
  ends and increase drillhole density along the Gibraltar deposit to upgrade the
  resource model blocks from inferred to measured and indicated category so that
  proven and probable reserves could be estimated.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 rate of Cdn$0.82 per US
  dollar. 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 rate of
  $0.80 per US dollar. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The proven and probable reserves
  as of December 31, 2009 are tabulated in Table 1 below and are NI 43-101 and SEC
  Guide 7 compliant. </P>
<P align=center><B>Table 1: Gibraltar Mineral Reserves <BR>
  at 0.20% Copper
  Cut-off </B></P>
<DIV>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>
    <TR vAlign=top>
      <TD align=left ><B>Pit </B><BR></TD>
      <TD align=left width="15%" ><B>Category </B><BR></TD>
      <TD align=center width="15%" ><B>Tons </B><BR>
          <B>(millions) </B></TD>
      <TD align=center width="15%"><B>Cu </B><BR>
          <B>(%) </B></TD>
      <TD align=center width="15%"><B>Mo </B><BR>
          <B>(%) </B></TD>
    </TR>
    <TR vAlign=top>
      <TD align=left rowSpan=2 >Connector <BR>
          <BR></TD>
      <TD align=left width="15%" >Proven <BR>
        Probable </TD>
      <TD align=center width="15%" >40.4 <BR>
        14.8 </TD>
      <TD align=center width="15%">0.296 <BR>
        0.271 </TD>
      <TD align=center width="15%">0.010 <BR>
        0.009 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left width="15%" ><B>Subtotal </B></TD>
      <TD align=center width="15%" ><B>55.2 </B></TD>
      <TD align=center width="15%"><B>0.289 </B></TD>
      <TD align=center width="15%"><B>0.010 </B></TD>
    </TR>
    <TR vAlign=top>
      <TD align=left rowSpan=2 >Gibraltar East <BR>
          <BR></TD>
      <TD align=left width="15%" >Proven <BR>
        Probable </TD>
      <TD align=center width="15%" >66.8 <BR>
        33.3 </TD>
      <TD align=center width="15%">0.286 <BR>
        0.285 </TD>
      <TD align=center width="15%">0.008 <BR>
        0.013 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left width="15%" ><B>Subtotal </B></TD>
      <TD align=center width="15%" ><B>100.1 </B></TD>
      <TD align=center width="15%"><B>0.286 </B></TD>
      <TD align=center width="15%"><B>0.010 </B></TD>
    </TR>
    <TR vAlign=top>
      <TD align=left rowSpan=2 >Granite <BR>
          <BR></TD>
      <TD align=left width="15%" >Proven <BR>
        Probable </TD>
      <TD align=center width="15%" >178.3 <BR>
        21.6 </TD>
      <TD align=center width="15%">0.325 <BR>
        0.319 </TD>
      <TD align=center width="15%">0.009 <BR>
        0.009 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left width="15%" ><B>Subtotal </B></TD>
      <TD align=center width="15%" ><B>199.9 </B></TD>
      <TD align=center width="15%"><B>0.324 </B></TD>
      <TD align=center width="15%"><B>0.009 </B></TD>
    </TR>
    <TR vAlign=top>
      <TD align=left rowSpan=2 >Gibraltar Extension <BR>
          <BR></TD>
      <TD align=left width="15%" >Proven <BR>
        Probable </TD>
      <TD align=center width="15%" >75.4 <BR>
        29.3 </TD>
      <TD align=center width="15%">0.352 <BR>
        0.304 </TD>
      <TD align=center width="15%">0.002 <BR>
        0.002 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left width="15%" ><B>Subtotal </B></TD>
      <TD align=center width="15%" ><B>104.7 </B></TD>
      <TD align=center width="15%"><B>0.339 </B></TD>
      <TD align=center width="15%"><B>0.002 </B></TD>
    </TR>
    <TR vAlign=top>
      <TD align=left colSpan=2 >Total </TD>
      <TD align=center width="15%" >459.9 </TD>
      <TD align=center width="15%">0.315 </TD>
      <TD align=center width="15%">0.008 </TD>
    </TR>
  </TABLE>
</DIV>
<BR>
<DIV>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>
    <TR vAlign=top>
      <TD align=center><B><FONT color=#ff0000>Cautionary Note to Investors
        Concerning Estimates of Measured and Indicated Resources </FONT></B><BR>
              <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 </B><B>part or all of mineral
                    deposits in these categories will ever be converted into reserves. </B></P></TD>
    </TR>
  </TABLE>
</DIV>
<BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=center>- 10 - </P>
<P align=justify>The mineral reserves stated above are contained within the
  mineral resources shown in Table 2 below: </P>
<P align=center><B>Table 2 <BR>
  </B><B>Gibraltar Mine Mineral Resources <BR>
    at
    0.20% Copper Cut-off </B></P>
<DIV align=center>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="60%" border=1>
    <TR vAlign=top>
      <TD align=left><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>
</DIV>
<P align=justify><B>Prosperity Project </B></P>
<DIV>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>
    <TR vAlign=bottom>
      <TD align=center><B><font color="#FF0000">Cautionary Note to Investors Concerning Reserve
        Estimates</font></B>
          <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 prospectus or in documents incorporated herein by
            reference 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 reserves 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>
</DIV>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless stated otherwise,
  information of a technical or scientific nature related to the Prosperity
  Project contained in the Prospectus (including documents incorporated by
  reference herein) 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 www.sedar.com. Mr. Jones is not independent of Taseko by virtue of
  being employed by the Company as Vice-President, Engineering. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May 12, 2010, the Company
  entered into a gold stream transaction with Franco-Nevada Corporation
  (&#147;Franco-Nevada&#148;) pursuant to which Franco-Nevada will provide US$350.0 million
  for the Prosperity Project along with warrants to purchase 2 million common
  shares of Franco-Nevada at an exercise price of $75.00 per share until June 16,
  2017 in exchange for a 22% interest in the future gold production for the life
  of the mine. The investment by Franco-Nevada is subject to certain conditions
  precedent, including full financing and permitting of the Prosperity Project.
  The US$350.0 million will be amortized over gold deliveries under the agreement
  and, in addition, the Company will be paid the lower of US$400 per ounce and
  market price for the gold, which is subject to inflation adjustments going
  forward.<B> </B></P>
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<P align=center>- 11 - </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The Prosperity Project is located 125
  km southwest of the City of Williams Lake in the Cariboo-Chilcotin region of
  British Columbia. The following are the highlights of the Prosperity Project: </P>
<UL>
  <LI>
    <div align="justify">Located near existing infrastructure in south-central British Columbia; </div>
  <LI>
    <div align="justify">Pre-tax return on investment of 10% with an eight year payback from start
      of production; </div>
  <LI>
    <div align="justify">33 year mine life at a milling rate of 70,000 tonnes/day; </div>
  <LI>
    <div align="justify">Life of mine waste-to-ore strip ratio of 1.5; </div>
  <LI>
    <div align="justify">Total pre-production capital cost of $814 million; </div>
  <LI>
    <div align="justify">Site operating cost of $7.51 per tonne milled over the life of mine; and </div>
  <LI>
    <div align="justify">Total operating costs net of by product credits of US$0.59/lb Cu. </div>
  </LI>
</UL>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2009, Taseko updated the
  mineral reserve estimate from a 2007 feasibility study on the Prosperity Project
  by assuming  long term metal prices of $1.65/lb Cu and $650/oz Au. The
  resulting mineral reserves are shown in Table 3. </P>
<P align=center><B>Table 3 </B><BR>
    <B>Prosperity Mineral Reserves </B><BR>
  <B>at
    $5.50 NSR/t Pit-Rim Cut-off </B><BR>
</P>
<TABLE width="100%" border=1 cellPadding=3
cellSpacing=0 bordercolor="#000000"
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; ">
  <tr>
    <td width="14%" valign="bottom"><p align="center"><b>Category</b></p></td>
    <td width="12%" valign="bottom"><p align="center"><b>Tonnes<br>
      (millions)</b></p></td>
    <td width="12%" valign="bottom"><p align="center"><b>Gold</b><br>
            <b>(g/t)</b></p></td>
    <td width="12%" valign="bottom"><p align="center"><b>Copper</b><br>
            <b>(%)</b></p></td>
    <td width="12%" valign="bottom"><p align="center"><b>Recoverable    Gold Ounces<br>
      (millions)</b></p></td>
    <td width="12%" valign="bottom"><p align="center"><b>Recoverable    Copper Pounds<br>
      (billions)</b></p></td>
  </tr>
  <tr>
    <td width="14%"><p align="center">Proven<br>
      Probable</p></td>
    <td width="12%"><p align="center">481<br>
      350</p></td>
    <td width="12%"><p align="center">0.46<br>
      0.35</p></td>
    <td width="12%"><p align="center">0.26<br>
      0.18</p></td>
    <td width="12%"><p align="center">5.0<br>
      2.7</p></td>
    <td width="12%"><p align="center">2.4<br>
      1.2</p></td>
  </tr>
  <tr>
    <td width="14%"><p align="center">Total</p></td>
    <td width="12%"><p align="center">831</p></td>
    <td width="12%"><p align="center">0.41</p></td>
    <td width="12%"><p align="center">0.23</p></td>
    <td width="12%"><p align="center">7.7</p></td>
    <td width="12%"><p align="center">3.6</p></td>
  </tr>
</table>
<P align=justify>Recoverable gold and copper calculated using recoveries of 69%
  and 87%, respectively. </P>
<DIV>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>
    <TR vAlign=top>
      <TD align=center><B><FONT color=#ff0000>Cautionary Note to Investors
        Concerning Estimates of Measured and Indicated Resources </FONT></B><BR>
                <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 SEC does not recognize them. <B>Investors are cautioned not to assume that any part or all of mineral
                    deposits in these categories will ever be converted into SEC defined
                    reserves.</B><I> </I></P></TD>
    </TR>
  </TABLE>
</DIV>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The Proven and Probable Reserves on
  the Prosperity Project are included in the Measured and Indicated Mineral
  Resources disclosed in Table 4 below. The Mineral Resources are as outlined by
  drilling to date, and estimated at a 0.14% copper cut-off. </P>
<P align=center><STRONG>Table 4</STRONG> <BR>
    <B>Prosperity Mineral Resources</B> <BR>
  <B>at 0.14%</B> <B>Copper Cut-Off</B></P>
<TABLE width="100%" border=1 cellPadding=3
cellSpacing=0 bordercolor="#000000"
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; ">
  <tr>
    <td width="25%" valign="bottom"><p align="center"><b>Category </b> </p></td>
    <td width="25%" valign="bottom"><p align="center"><b>Tonnes </b> <br>
            <b>(millions) </b> </p></td>
    <td width="25%" valign="bottom"><p align="center"><b>Gold </b> <br>
            <b>(g/t) </b> </p></td>
    <td width="25%" valign="bottom"><p align="center"><b>Copper </b> <br>
            <b>(%) </b> </p></td>
  </tr>
  <tr>
    <td width="25%"><p><b>Measured </b> </p></td>
    <td width="25%"><p align="center">547.1 </p></td>
    <td width="25%"><p align="center">0.46 </p></td>
    <td width="25%"><p align="center">0.27 </p></td>
  </tr>
  <tr>
    <td width="25%"><p><b>Indicated </b> </p></td>
    <td width="25%"><p align="center">463.4 </p></td>
    <td width="25%"><p align="center">0.34 </p></td>
    <td width="25%"><p align="center">0.21 </p></td>
  </tr>
  <tr>
    <td width="25%"><p><b>Total </b> </p></td>
    <td width="25%"><p align="center"><b>1,010.5 </b> </p></td>
    <td width="25%"><p align="center"><b>0.41 </b> </p></td>
    <td width="25%"><p align="center"><b>0.24 </b> </p></td>
  </tr>
</table>
<br>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<A name=page_P-12></A>
<P align=center>- 12 - </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; Taseko carried out ongoing and
  systematic exploration programs on the Prosperity Project from 1991 to 1999,
  drilling 156,339 m in 470 holes and outlining a large porphyry gold-copper
  deposit. Taseko re-initiated work on the Prosperity Project in late 2005, and a
  mill redesign and project cost review was completed in 2006.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; Based on ongoing feasibility work
  through 2007, the following development and production scenario is envisaged.
  Activities during a pre-production period of two years would include
  construction of the electricity transmission line; upgrading and extension of
  current road access and mine site clearing; site infrastructure, processing, and
  tailings starter dam construction; removal and storage of overburden; and
  pre-production waste development. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The mine plan utilizes a large-scale
  conventional truck and shovel open pit mining and milling operation. Following a
  one and a half year pre-strip period, total material moved over years one
  through 31 averages 170,000 tonnes/day at a 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 lower grade ore is recovered from stockpile for
  the final years of the mine plan.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The Prosperity Project processing
  plant has been designed with a nominal capacity of 70,000 tonnes/day. 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>&nbsp;&nbsp;&nbsp;&nbsp; The copper-gold concentrate will be
  hauled with highway trucks to an expanded load-out facility at Gibraltar&#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 and refineries
  around the world. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; 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. Based on the Prosperity Technical Report,
  the Prosperity Project would employ up to 460 permanent and 60 contractor
  personnel.</P>
<P align=justify><U>Recent Developments</U> </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <EM>Environmental Review Process </EM></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The Prosperity Project received
  approval under the <I>Environmental Assessment Act</I> (British Columbia) on
  January 14, 2010. Detailed permitting for activities under Provincial
  jurisdiction, such as the Mines Act Permit, is underway. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The Federal Panel process, in which
  public hearings were conducted by a three-person Panel operating under defined
  Terms of Reference, concluded on May 3, 2010. The Federal Panel submitted its
  findings to the Federal Minister of Environment on July 2, 2010. The panel
  findings were essentially the same as the conclusions reached in the Provincial
  Environmental Assessment, being that loss of Fish Lake and the adjacent meadows
  would result in significant adverse environmental effects; however, the
  provincial process concluded that the environmental impacts were justified
  because the lake and fishery will be replaced and the economic and social
  benefits generated are significant, but the panel was not mandated to assess
  economic and social value generated by the Prosperity Project. The Canadian
  Federal Cabinet is expected to make a decision in October 2010. The issue for
  the Federal Cabinet is whether the adverse environmental effects of the
  Prosperity Project as found by the Federal Panel can be justified in the
  circumstances. This is basically the same justification analysis that the
  Province of British Columbia was required to undertake, and the Province&#146;s conclusion was
  that the benefits from the Prosperity Project justified the limited adverse
  environmental effects. Taseko believes that the significant economic benefits
  that will flow to the region, the Province of British Columbia and the federal
  government as a result of the Prosperity Project will be given prominence in the
  deliberations of the Federal Cabinet. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<A name=page_P-13></A>
<P align=center>- 13 - </P>
<P align=center><B>USE OF PROCEEDS </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; Unless otherwise indicated in a
  prospectus supplement, Taseko currently intends to use the net proceeds from the
  sale of the Securities, along with cash on hand, cash forecasted to be generated
  and cash from the Franco-Nevada gold stream transaction, for the completion of
  construction at the Prosperity Project, which is estimated to be approximately
  $814 million. Taseko may also use a portion of the proceeds for other more
  general working capital purposes. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; More detailed information regarding
  the use of proceeds from the sale of the Securities will be described in any
  applicable prospectus supplement. Pending the application of the net proceeds,
  Taseko intends to invest the net proceeds in investment-grade, interest-bearing
  securities, the primary objectives of which are liquidity and capital
  preservation. </P>
<P align=center><B>CONSOLIDATED CAPITALIZATION </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The authorized share capital of the Company consists of an unlimited number of common shares without par value, of which 186,898,353 were issued and outstanding as at October 7, 2010.  Since June 30, 2010, the date of the Company&rsquo;s most recently filed financial statements, there have been no material changes in the Company&rsquo;s consolidated share capital.</P>
<P align=center><B>PRIOR SALES </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; For the 12-month period before the
  date of this prospectus, the Company issued the following common shares and
  securities convertible into common shares: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 9pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=bottom>
    <TD align=center colSpan=5>&nbsp;&nbsp;&nbsp;<B>Aggregate
      Number and Type</B>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      ><B>Date of Issuance</B> </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="32%"
    ><B>of Securities Issued</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="32%"
    ><B>Price per Security</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center >October 13, 2009 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >2,000 Common
      Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >$1.00</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff >October 15,
      2009 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >15,250 Common Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center >November 24, 2009 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >5,000 Common
      Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >$2.07</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff >December 2,
      2009 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >46,200 Common Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center >December 2, 2009 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >50,000 Common
      Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >$2.07</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff >December 2,
      2009 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >150,000 Options </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >$4.14 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center >December 3, 2009 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >62,500 Common
      Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >$1.00</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff >December 7,
      2009 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >500 Common Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center >December 10, 2009 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >61,000 Common
      Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >$1.00</TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff >December 11,
      2009 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >8,000 Common Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center >December 14, 2009 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >35,000 Common
      Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >$1.00 </TD>
  </TR>
</TABLE>
<p><BR>
</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<A name=page_P-14></A>
<P align=center>- 14 - </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 9pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=bottom>
    <TD align=center colSpan=5>&nbsp;&nbsp;&nbsp;<B>Aggregate
      Number and Type</B>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center>&nbsp;<B>Date of Issuance</B> </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="32%"><B>of Securities Issued</B> </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="32%"><B>Price per Security</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>December 15, 2009 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>18,800 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>December 16, 2009 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">20,500 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>December 16, 2009 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>50,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>$2.18 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>December 16, 2009 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">33,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">$1.15 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>December 16, 2009 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>11,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>$3.07 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>December 22, 2009 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">6,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>December 22, 2009 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>50,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>$2.18 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>December 22, 2009 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">33,333 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">$1.15 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>December 22, 2009 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>33,666 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>$1.71 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>December 24, 2009 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">7,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">$1.90 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 4, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>12,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>January 5, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">11,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 5, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>1,925,000
      Options </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>$4.46 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>January 6, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">125,000 Common Shares*</TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">$4.02 (deemed) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 6, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>10,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>January 7, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">14,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 8, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>65,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>$1.15 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>January 11, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">7,500 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 12, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>33,333 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>$1.15 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>January 12, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">5,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 14, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>5,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>January 15, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">17,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 15, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>1,193,500
      Options </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>$4.77 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>January 18, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">21,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 19, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>274,400 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>$1.15 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>January 20, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">20,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">$2.07 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 20, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>50,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>January 20, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">35,600 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">$1.15 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 21, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>2,500 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>January 25, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">20,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 26, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>25,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>$3.07 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>January 26, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">9,500 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>January 28, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>300,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>$1.15 </TD>
  </TR>
</TABLE>
<p><BR>
</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<A name=page_P-15></A>
<P align=center>- 15 - </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 9pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=bottom>
    <TD align=center colSpan=5>&nbsp;<B>Aggregate Number and Type</B>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      ><B>Date of Issuance</B> </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="32%"
    ><B>of Securities Issued</B> </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="32%"
    ><B>Price per Security</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff >January 29, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >210,000 Options </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >$5.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center >February 2, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >10,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >$3.07 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff >February 2, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >8,500 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center >February 5, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >230,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >$1.15 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff >February 5, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >2,500 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center >February 11, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >19,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff >February 14, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >24,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center >February 16, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >120,000 Options </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >$4.59 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff >February 22, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >65,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >$1.15 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center >March 2, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >133,334 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >$1.15 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff >March 2, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >5,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center >March 19, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >30,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >$4.03 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff >March 24, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >1,556,355
      Common Shares* </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >$5.02 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center >March 24, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >5,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff >April 1, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >21,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >$4.50 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center >April 6, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >53,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff >April 9, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >31,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center >April 9, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >7,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >$2.18 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff >April 12, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >1,500 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center >April 14, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >11,500 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff >April 14, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >10,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >$4.50 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center >April 15, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >3,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff >April 19, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >30,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >$4.03 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center >April 20, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >21,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >$4.50 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff >April 20, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >30,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center >April 27, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >2,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff >May 4, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >33,667 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >$1.71 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center >May 13, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >7,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff >May 18, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >90,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >$1.15 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center >May 26, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >10,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >$1.15 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff >June 16, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >50,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center >June 21, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >1,500 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%" >$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff >June 25, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >67,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff >$1.71 </TD>
  </TR>
</TABLE>
<p><BR>
</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<A name=page_P-16></A>
<P align=center>- 16 - </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 9pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=bottom>
    <TD align=center colSpan=5>&nbsp;&nbsp;&nbsp;<B>Aggregate
      Number and Type</B></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center>&nbsp;<B>Date of Issuance</B> </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="32%"><B>of Securities Issued</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="32%"><B>Price per Security</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>June 25, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>25,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>$2.18 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>June 29, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">6,500 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>June 29, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>4,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>$4.77 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>June 30, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">22,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>July 2, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>50,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>July 7, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">5,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>July 8, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>3,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>August 13, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">100,000 Common Shares*</TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">$4.25 (deemed) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center bgColor=#e6efff>August 16, 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>4,000 Common
      Shares </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="32%" bgColor=#e6efff>$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>August 17, 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">2,000 Common Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">$1.00 </TD>
  </TR>
  <TR vAlign=top bgcolor="#E6EFFF">
    <TD align=center>August 31, 2010 </TD>
    <TD width="2%" align=center>&nbsp;</TD>
    <TD width="32%" align=center>4,000 Common Shares </TD>
    <TD width="2%" align=center>&nbsp;</TD>
    <TD width="32%" align=center>$1.00 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=center>September 13, 2010</TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">4,000 Common
      Shares </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="32%">$1.00 </TD>
  </TR>
  <tr bgcolor="#E6EFFF">
    <td valign="bottom"><p align="center">September    20, 2010</p></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom"><p align="center">4,000    Common Shares</p></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom"><p align="center">$1.00</p></td>
  </tr>
  <tr>
    <td valign="bottom"><p align="center">September    22, 2010</p></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom"><p align="center">500    Common Shares</p></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom"><p align="center">$1.00</p></td>
  </tr>
  <tr bgcolor="#E6EFFF">
    <td valign="bottom"><p align="center">September    23, 2010</p></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom"><p align="center">5,000    Common Shares</p></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom"><p align="center">$1.00</p></td>
  </tr>
  <tr>
    <td valign="bottom"><p align="center">September    29, 2010</p></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom"><p align="center">1,000    Common Shares</p></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom"><p align="center">$1.00</p></td>
  </tr>
  <tr bgcolor="#E6EFFF">
    <td valign="bottom"><p align="center">October    1, 2010</p></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom"><p align="center">3,000    Common Shares</p></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom"><p align="center">$1.00</p></td>
  </tr>
  <tr>
    <td valign="bottom"><p align="center">October    5, 2010</p></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom"><p align="center">11,000    Common Shares</p></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom"><p align="center">$1.00</p></td>
  </tr>
  <tr bgcolor="#E6EFFF">
    <td valign="bottom"><p align="center">October    5, 2010</p></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom"><p align="center">2,000    Common Shares</p></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom"><p align="center">$4.77</p></td>
  </tr>
  <tr>
    <td valign="bottom"><p align="center">October    6, 2010</p></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom"><p align="center">67,000    Common Shares</p></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom"><p align="center">$1.00</p></td>
  </tr>
  <tr bgcolor="#E6EFFF">
    <td valign="bottom"><p align="center">October    7, 2010</p></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom"><p align="center">11,000    Common Shares</p></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom"><p align="center">$1.00</p></td>
  </tr>
  <tr>
    <td valign="bottom"><p align="center">October    7, 2010</p></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom"><p align="center">4,000    Common Shares</p></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom"><p align="center">$4.77</p></td>
  </tr>
</TABLE>
<P align=justify>Note: <BR>
  *&nbsp;&nbsp;&nbsp;&nbsp; All common shares were
  issued pursuant to the exercise of stock options unless otherwise indicated with
  a * </P>
<P align=center><B>TRADING PRICE AND VOLUME </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s common shares are
  listed on the TSX and Amex under the trading symbol &#147;TKO&#148; and &#147;TGB&#148;,
  respectively. The following tables set forth information relating to the trading
  of the common shares on the TSX and Amex for the months indicated. </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><FONT size=2>&nbsp; </FONT></TD>
    <TD align=center width="2%"  ><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="48%"
    colSpan=3><FONT size=2><B>TSX Price Range</B> </FONT></TD>
    <TD align=center width="2%"  ><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%"><FONT size=2>&nbsp; </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=2><B>Month</B> </FONT></TD>
    <TD align=center width="2%"  ><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="23%"><FONT size=2><B>High</B> </FONT></TD>
    <TD align=center width="2%"  ><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="23%"><FONT size=2><B>Low</B> </FONT></TD>
    <TD align=center width="2%"  ><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="23%"><FONT size=2><B>Total Volume</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><FONT size=2>September 2009 </FONT></TD>
    <TD align=center width="2%"  bgColor=#e6efff
      ><FONT size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%" bgColor=#e6efff><FONT size=2>3.02 </FONT></TD>
    <TD align=center width="2%"  bgColor=#e6efff
      ><FONT size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%" bgColor=#e6efff><FONT size=2>2.52 </FONT></TD>
    <TD align=center width="2%"  bgColor=#e6efff
      ><FONT size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%" bgColor=#e6efff><FONT size=2>8,694,300 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=2>October 2009 </FONT></TD>
    <TD align=center width="2%"  ><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%"><FONT size=2>3.35 </FONT></TD>
    <TD align=center width="2%"  ><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%"><FONT size=2>2.62 </FONT></TD>
    <TD align=center width="2%"  ><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%"><FONT size=2>16,444,200 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><FONT size=2>November 2009 </FONT></TD>
    <TD align=center width="2%"  bgColor=#e6efff
      ><FONT size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%" bgColor=#e6efff><FONT size=2>3.74 </FONT></TD>
    <TD align=center width="2%"  bgColor=#e6efff
      ><FONT size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%" bgColor=#e6efff><FONT size=2>2.80 </FONT></TD>
    <TD align=center width="2%"  bgColor=#e6efff
      ><FONT size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%" bgColor=#e6efff><FONT size=2>19,724,700 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=2>December 2009 </FONT></TD>
    <TD align=center width="2%"  ><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%"><FONT size=2>4.74 </FONT></TD>
    <TD align=center width="2%"  ><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%"><FONT size=2>3.56 </FONT></TD>
    <TD align=center width="2%"  ><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%"><FONT size=2>34,529,100 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><FONT size=2>January 2010 </FONT></TD>
    <TD align=center width="2%"  bgColor=#e6efff
      ><FONT size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%" bgColor=#e6efff><FONT size=2>5.84 </FONT></TD>
    <TD align=center width="2%"  bgColor=#e6efff
      ><FONT size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%" bgColor=#e6efff><FONT size=2>4.28 </FONT></TD>
    <TD align=center width="2%"  bgColor=#e6efff
      ><FONT size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%" bgColor=#e6efff><FONT size=2>34,656,800 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=2>February 2010 </FONT></TD>
    <TD align=center width="2%"  ><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%"><FONT size=2>5.03 </FONT></TD>
    <TD align=center width="2%"  ><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%"><FONT size=2>4.16 </FONT></TD>
    <TD align=center width="2%"  ><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%"><FONT size=2>21,705,100 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><FONT size=2>March 2010 </FONT></TD>
    <TD align=center width="2%"  bgColor=#e6efff
      ><FONT size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%" bgColor=#e6efff><FONT size=2>5.36 </FONT></TD>
    <TD align=center width="2%"  bgColor=#e6efff
      ><FONT size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%" bgColor=#e6efff><FONT size=2>4.74 </FONT></TD>
    <TD align=center width="2%"  bgColor=#e6efff
      ><FONT size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%" bgColor=#e6efff><FONT size=2>17,347,300 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=2>April 2010 </FONT></TD>
    <TD align=center width="2%"  ><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%"><FONT size=2>6.19 </FONT></TD>
    <TD align=center width="2%"  ><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%"><FONT size=2>5.33 </FONT></TD>
    <TD align=center width="2%"  ><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%"><FONT size=2>19,376,400 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><FONT size=2>May 2010 </FONT></TD>
    <TD align=center width="2%"  bgColor=#e6efff
      ><FONT size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%" bgColor=#e6efff><FONT size=2>6.17 </FONT></TD>
    <TD align=center width="2%"  bgColor=#e6efff
      ><FONT size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%" bgColor=#e6efff><FONT size=2>4.67 </FONT></TD>
    <TD align=center width="2%"  bgColor=#e6efff
      ><FONT size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%" bgColor=#e6efff><FONT size=2>26,141,300 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=2>June 2010 </FONT></TD>
    <TD align=center width="2%"  ><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%"><FONT size=2>5.54 </FONT></TD>
    <TD align=center width="2%"  ><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%"><FONT size=2>4.50 </FONT></TD>
    <TD align=center width="2%"  ><FONT
      size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%"><FONT size=2>10,901,800 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><FONT size=2>July 2010 </FONT></TD>
    <TD align=center width="2%"  bgColor=#e6efff
      ><FONT size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%" bgColor=#e6efff><FONT size=2>4.49 </FONT></TD>
    <TD align=center width="2%"  bgColor=#e6efff
      ><FONT size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%" bgColor=#e6efff><FONT size=2>3.27 </FONT></TD>
    <TD align=center width="2%"  bgColor=#e6efff
      ><FONT size=2>&nbsp;</FONT></TD>
    <TD align=center width="23%" bgColor=#e6efff><FONT size=2>19,507,300 </FONT></TD>
  </TR>
</TABLE>
<p><BR>
</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<A name=page_P-17></A>
<P align=center>- 17 - </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="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="48%"
    colSpan=3><B>TSX Price Range</B> </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="23%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Month</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="23%"><B>High</B> </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="23%"><B>Low</B> </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="23%"><B>Total Volume</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>August 2010 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>4.85 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>4.07 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>10,408,800 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>September 2010 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=center width="23%">5.55 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="23%">4.44 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="23%">17,219,400 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>October 1 - 7, 2010 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>6.18 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>5.45 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>4,252,800 </TD>
  </TR>
</TABLE>
<p><BR>
</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=right width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="48%"
    colSpan=3><B>Amex Price Range (in US$)</B> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="23%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Month</B> </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="23%"><B>High</B> </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="23%"><B>Low</B> </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="23%"><B>Total Volume</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>September 2009 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>2.85 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>2.27 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>36,075,700 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>October 2009 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="23%">3.20 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="23%">2.40 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="23%">42,813,100 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>November 2009 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>3.54 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>2.57 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>59,068,600 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>December 2009 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="23%">4.45 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="23%">3.40 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="23%">69,406,300 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>January 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>5.65 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>4.10 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>76,051,500 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>February 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="23%">4.74 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="23%">3.87 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="23%">51,641,200 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>March 2010 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>5.25 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>4.59 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>38,840,700 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>April 2010 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="23%">6.21 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="23%">5.25 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="23%">44,072,500 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>May 2010 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>6.05 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>4.35 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>71,796,000 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>June 2010 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=center width="23%">5.28 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="23%">4.22 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="23%">38,526,300 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>July 2010 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>4.36 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>3.31 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>46,334,200 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>August 2010 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=center width="23%">4.71 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="23%">3.90 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="23%">31,060,800 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>September 2010 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>5.40 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>4.28 </TD>
    <TD align=center width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center width="23%" bgColor=#e6efff>38,134,500 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>October 1 - 7, 2010 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=center width="23%">6.10 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="23%">5.32 </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="23%">16,395,800 </TD>
  </TR>
</TABLE>
<P align=center><B>PLAN OF DISTRIBUTION </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The Company may sell Securities to or
  through underwriters or dealers and also may sell Securities directly to
  purchasers or through agents. The distribution of Securities may be effected
  from time to time in one or more transactions at a fixed price or prices, which
  may be changed, at market prices prevailing at the time of sale, or at prices
  related to such prevailing market prices to be negotiated with purchasers and as
  set forth in an accompanying prospectus supplement. In connection with the sale
  of Securities, underwriters may receive compensation from the Company or from
  purchasers of Securities for whom they may act as agents in the form of
  discounts, concessions or commissions. Underwriters, dealers and agents that
  participate in the distribution of Securities may be deemed to be underwriters
  and any discounts or commissions received by them from the Company and any
  profit on the resale of Securities by them may be deemed to be underwriting
  discounts and commissions under applicable securities legislation. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; If so indicated in the applicable
  prospectus supplement, the Company may authorize dealers or other persons acting
  as the Company&#146;s agents to solicit offers by certain institutions to purchase
  the Securities directly from the Company pursuant to contracts providing for
  payment and delivery on a future date. These contracts will be subject only to
  the conditions set forth in the applicable prospectus supplement or supplements, which will also set forth the
  commission payable for solicitation of these contracts. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<A name=page_P-18></A>
<P align=center>- 18 - </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; This prospectus qualifies Securities.
  The specific terms of any offering of Securities will be described in the
  applicable prospectus supplement. The prospectus supplement relating to any
  offering of Securities will set forth the terms of the offering of the
  Securities, including, to the extent applicable, the initial offering price, the
  proceeds to the Company, the underwriting discounts or commissions, the currency
  in which the Securities may be issued and any other discounts or concessions to
  be allowed or reallowed to dealers. Any underwriters involved with respect to
  any offering of Securities sold to or through underwriters will be named in the
  prospectus supplement relating to such offering. </P>
<P align=center><B>DESCRIPTION OF SECURITIES </B></P>
<P align=justify><B>Common Shares </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The holders of Common Shares are
  entitled to receive notice of any meeting of the shareholders of the Company and
  to attend and vote thereat, except those meetings at which only the holders
  shares of another class or of a particular series are entitled to vote. Each
  Common Share entitles its holder to one vote. Subject to the rights of the
  holders of preferred shares, the holders of Common Shares are entitled to
  receive on a pro-rata basis such dividends as the board of directors may declare
  out of funds legally available therefor. In the event of the dissolution,
  liquidation, winding-up or other distribution of our assets, such holders are
  entitled to receive on a pro-rata basis all of assets of the Company remaining
  after payment of all of liabilities, subject to the rights of holders of
  preferred shares. The Company&#146;s common shares carry no pre-emptive or conversion
  rights. </P>
<P align=justify><B>Warrants </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; This section describes the general
  terms that will apply to any Warrants for the purchase of Common Shares. The
  Company will not offer Warrants for sale unless the applicable prospectus
  supplement containing the specific terms of the Warrants to be offered
  separately is first approved, in accordance with applicable laws, for filing by
  the securities commissions or similar regulatory authorities in each of the
  jurisdictions where the Warrants will be offered for. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; Subject to the foregoing, the Company
  may issue Warrants independently or together with other securities, and Warrants
  sold with other securities may be attached to or separate from the other
  securities. Warrants may be issued directly by us to the purchasers thereof or
  under one or more warrant indentures or warrant agency agreements to be entered
  into by us and one or more banks or trust companies acting as warrant agent. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; This summary of some of the provisions
  of the Warrants is not complete. The statements made in the Prospectus relating
  to any warrant agreement and Warrants to be issued under the Prospectus are
  summaries of certain anticipated provisions thereof and do not purport to be
  complete and are subject to, and are qualified in their entirety by reference
  to, all provisions of the applicable warrant agreement. Investors should refer
  to the warrant indenture or warrant agency agreement relating to the specific
  warrants being offered for the complete terms of the Warrants. A copy of any
  warrant indenture or warrant agency agreement relating to an offering of<B> </B>Warrants will be filed by Taseko with the applicable securities regulatory
  authorities in Canada following its execution. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The particular terms of each issue of
  Warrants will be described in the applicable prospectus supplement. This
  description will include, where applicable: </P>
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<UL>
  <LI>
    <div align="justify">the designation and aggregate number of Warrants; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">the price at which the Warrants will be offered; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">the currency or currencies in which the Warrants will be offered; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">the date on which the right to exercise the Warrants will commence and the
      date on which the right will expire; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">the number of common shares that may be purchased upon exercise of each
      Warrant and the price at which and currency or currencies in which the Common
      Shares may be purchased upon exercise of each Warrant;<br>
      &nbsp; </div>
  <LI>
    <div align="justify">the designation and terms of any securities with which the Warrants will
      be offered, if any, and the number of the Warrants that will be offered with
      each security; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">the date or dates, if any, on or after which the Warrants and the related
      securities will be transferable separately; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">whether the Warrants will be subject to redemption and, if so, the terms
      of such redemption provisions; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">material Canadian and United States federal income tax consequences of
      owning the Warrants; and <br>
      &nbsp; </div>
  <LI>
    <div align="justify">any other material terms or conditions of the Warrants. </div>
  </LI>
</UL>
<P align=justify><B>Subscription Receipts </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; This section describes the general
  terms that will apply to any subscription receipts that may be offered by the
  Company pursuant to the Prospectus. Subscription receipts may be offered
  separately or together with Common Shares or Warrants, as the case may be. The
  subscription receipts will be issued under a subscription receipt agreement.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; In the event the Company issues
  subscription receipts, the Company will provide the original purchasers of
  subscription receipts a contractual right of rescission exercisable following
  the issuance of common shares to such purchasers. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The applicable prospectus supplement
  will include details of the subscription receipt agreement covering the
  subscription receipts being offered. A copy of the subscription receipt
  agreement relating to an offering of subscription receipts will be filed by the
  Company with the applicable securities regulatory authorities after it has been
  entered into by the Company. The specific terms of the subscription receipts,
  and the extent to which the general terms described in this section apply to
  those subscription receipts, will be set forth in the applicable prospectus
  supplement. This description will include, where applicable: </P>
<UL>
  <LI>
    <div align="justify">the number of subscription receipts; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">the price at which the subscription receipts will be offered; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">the procedures for the exchange of the subscription receipts into Common
      Shares or Warrants; </div>
  </LI>
</UL>
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<UL>
  <LI>
    <div align="justify">the number of Common Shares or Warrants that may be exchanged upon
      exercise of each subscription receipt; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">the designation and terms of any other securities with which the
      subscription receipts will be offered, if any, and the number of subscription
      receipts that will be offered with each security; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">terms applicable to the gross or net proceeds from the sale of the
      subscription receipts plus any interest earned thereon; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">material Canadian and United States income tax consequences of owning the
      subscription receipts; and <br>
      &nbsp; </div>
  <LI>
    <div align="justify">any other material terms and conditions of the subscription receipts.</div>
  </LI>
</UL>
<P align=justify><B>Description of Debt Securities </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The Company may issue debt securities
  (&#147;Debt Securities&#148;) in one or more series under an indenture (the &#147;Indenture&#148;),
  to be entered into among the Company, a Canadian trustee and a U.S. trustee. The
  Indenture will be subject to and governed by the United States Trust Indenture
  Act of 1939, as amended (the &#147;Trust Indenture Act&#148;). A copy of the form of the
  Indenture will be filed with the SEC as an exhibit to the registration statement
  of which this Prospectus forms a part. The following description sets forth
  certain general material terms and provisions of the Debt Securities and is not
  intended to be complete. For a more complete description, prospective investors
  should refer to the Indenture and the terms of the Debt Securities. If Debt
  Securities are issued, the Company will describe in the applicable Prospectus
  Supplement the particular terms and provisions of any series of the Debt
  Securities and a description of how the general terms and provisions described
  below may apply to that series of the Debt Securities. Prospective investors
  should rely on information in the applicable Prospectus Supplement and not on
  the following information to the extent that the information in such Prospectus
  Supplement is different from the following information. The Company will file as
  exhibits to the registration statement of which this Prospectus is a part, or
  will incorporate by reference from a report on Form 6-K that the Company
  furnishes to the SEC, any supplemental indenture describing the terms and
  conditions of Debt Securities the Company is offering before the issuance of
  such Debt Securities.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The Company may issue debt securities
  and incur additional indebtedness other than through the offering of Debt
  Securities pursuant to this Prospectus. </P>
<P align=justify><U>General</U> </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The Indenture will not limit the
  aggregate principal amount of Debt Securities that the Company may issue under
  the Indenture and will not limit the amount of other indebtedness that the
  Company may incur. The Indenture will provide that the Company may issue Debt
  Securities from time to time in one or more series and may be denominated and
  payable in U.S. dollars, Canadian dollars or any foreign currency. Unless
  otherwise indicated in the applicable Prospectus Supplement, the Debt Securities
  will be unsecured obligations of the Company. The Indenture will also permit the
  Company to increase the principal amount of any series of the Debt Securities
  previously issued and to issue that increased principal amount. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The applicable Prospectus Supplement
  for any series of Debt Securities that the Company offers will describe the
  specific terms of the Debt Securities and may include, but is not limited to,
  any of the following: </P>
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<UL>
  <LI>
    <div align="justify">the title of the Debt Securities; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">the aggregate principal amount of the Debt Securities; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">the percentage of principal amount at which the Debt Securities will be
      issued; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">whether payment of principal, interest and premium, if any, on the Debt
      Securities will be senior or subordinated to the Company&#146;s other liabilities
      or obligations; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">whether payment of the Debt Securities will be guaranteed by any other
      person; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">the date or dates, or the methods by which such dates will be determined
      or extended, on which the Company may issue the Debt Securities and the date
      or dates, or the methods by which such dates will be determined or extended,
      on which the Company will pay the principal on the Debt Securities and the
      portion (if less than the principal amount) of Debt Securities to be payable
      upon a declaration of acceleration of maturity; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">whether the Debt Securities will bear interest, the interest rate (whether
      fixed or variable) or the method of determining the interest rate, the date
      from which interest will accrue, the dates on which the Company will pay
      interest and the record dates for interest payments, or the methods by which
      such dates will be determined; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">the place or places the Company will pay principal, premium and interest,
      if any, and the place or places where Debt Securities can be presented for
      registration of transfer, exchange or conversion; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">whether and under what circumstances the Company will be required to pay
      any additional amounts for withholding or deduction for Canadian taxes with
      respect to the Debt Securities, and whether and on what terms the Company will
      have the option to redeem the Debt Securities rather than pay the additional
      amounts; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">whether the Company will be obligated to redeem, repay or repurchase the
      Debt Securities pursuant to any sinking or other provision, or at the option
      of a holder and the terms and conditions of such redemption, repayment or
      repurchase; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">whether the Company may redeem the Debt Securities, in whole or in part,
      prior to maturity and the terms and conditions of any such redemption; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">the denominations in which the Company will issue any registered Debt
      Securities, if other than denominations of $1,000 and any multiple of $l,000
      and, if other than denominations of $5,000, the denominations in which any
      unregistered Debt Security shall be issuable; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">whether the Company will make payments on the Debt Securities in a
      currency other than U.S. dollars; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">whether payments on the Debt Securities will be payable with reference to
      any index, formula or other method; </div>
  </LI>
</UL>
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<UL>
  <LI>
    <div align="justify">whether the Company will issue the Debt Securities as global securities
      and, if so, the identity of the depositary for the global securities; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">whether the Company will issue the Debt Securities as unregistered
      securities, registered securities or both; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">any changes or additions to, or deletions of, events of default or
      covenants whether or not such events of default or covenants are consistent
      with the events of default or covenants in the Indenture; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">the applicability of, and any changes or additions to, the provisions for
      defeasance described under &#147;Defeasance&#148; below; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">whether the holders of any series of Debt Securities have special rights
      if specified events occur; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">the terms, if any, for any conversion or exchange of the Debt Securities
      for any other securities; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">provisions as to modification, amendment or variation of any rights or
      terms attaching to the Debt Securities; and <br>
      &nbsp; </div>
  <LI>
    <div align="justify">any other terms, conditions, rights and preferences (or limitations on
      such rights and preferences). </div>
  </LI>
</UL>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; Unless stated otherwise in the
  applicable Prospectus Supplement, no holder of Debt Securities will have the
  right to require the Company to repurchase the Debt Securities and there will be
  no increase in the interest rate if the Company becomes involved in a highly
  leveraged transaction or the Company has a change of control. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The Company may issue Debt Securities
  bearing no interest or interest at a rate below the prevailing market rate at
  the time of issuance, and offer and sell the Debt Securities at a discount below
  their stated principal amount. The Company may also sell any of the Debt
  Securities for a foreign currency or currency unit, and payments on the Debt
  Securities may be payable in a foreign currency or currency unit. In any of
  these cases, the Company will describe certain Canadian federal and U.S. federal
  income tax consequences and other special considerations in the applicable
  Prospectus Supplement. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The Company may issue Debt Securities
  with terms different from those of Debt Securities previously issued and,
  without the consent of the holders thereof, the Company may reopen a previous
  issue of a series of Debt Securities and issue additional Debt Securities of
  such series (unless the reopening was restricted when such series was created). </P>
<P align=justify><U>Ranking and Other Indebtedness</U> </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; Unless otherwise indicated in an
  applicable Prospectus Supplement, the Debt Securities will be unsecured
  obligations and will rank equally with all of the Company&#146;s other unsecured and
  other subordinated debt from time to time outstanding and equally with other
  Debt Securities issued under the Indenture. The Indenture will provide that the
  Debt Securities will be subordinated to and junior in right of payment to all
  present and future Senior Indebtedness. &#147;Senior Indebtedness&#148; will be defined in
  the Indenture as: (a) all indebtedness of the Company in respect of borrowed
  money, other than: (i) indebtedness evidenced by the Debt Securities; and (ii)
  indebtedness which, by the terms of the instrument creating or evidencing it, is
  expressed to rank in right of payment equally with or subordinate to the
  indebtedness evidenced by the Debt Securities; (b) all obligations of the
  Company for the reimbursement of amounts paid pursuant to any letter of credit,
  banker&#146;s acceptance or similar credit transaction; and (c) all obligations of
  the type referred to in paragraphs (a) through (b) above of other persons for
  the payment of which the Company is responsible or liable as obligor, guarantor
  or otherwise. For greater certainty, &#147;Senior Indebtedness&#148; will include all
  indebtedness of the Company for borrowed money which is outstanding as at the
  date of the Indenture. </P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The Company&#146;s Board of Directors may
  establish the extent and manner, if any, to which payment on or in respect of a
  series of Debt Securities will be senior or will be subordinated to the prior
  payment of the Company&#146;s other liabilities and obligations, other than Senior
  Indebtedness, and whether the payment of principal, premium, if any, and
  interest, if any, will be guaranteed by any other person and the nature and
  priority of any security. </P>
<P align=justify><U>Debt Securities in Global Form</U> </P>
<P align=justify><I>&nbsp;&nbsp;&nbsp;&nbsp; The Depositary and Book-Entry</I></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; Unless otherwise specified in the
  applicable Prospectus Supplement, a series of the Debt Securities may be issued
  in whole or in part in global form as a &#147;global security&#148; and will be registered
  in the name of or issued in bearer form and be deposited with a depositary, or
  its nominee, each of which will be identified in the applicable Prospectus
  Supplement relating to that series. Unless and until exchanged, in whole or in
  part, for the Debt Securities in definitive registered form, a global security
  may not be transferred except as a whole by the depositary for such global
  security to a nominee of the depositary, by a nominee of the depositary to the
  depositary or another nominee of the depositary or by the depositary or any such
  nominee to a successor of the depositary or a nominee of the successor. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The specific terms of the depositary
  arrangement with respect to any portion of a particular series of the Debt
  Securities to be represented by a global security will be described in the
  applicable Prospectus Supplement relating to such series. The Company
  anticipates that the provisions described in this section will apply to all
  depositary arrangements. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; Upon the issuance of a global
  security, the depositary therefor or its nominee will credit, on its book entry
  and registration system, the respective principal amounts of the Debt Securities
  represented by the global security to the accounts of such persons, designated
  as &#147;participants&#148;, having accounts with such depositary or its nominee. Such
  accounts shall be designated by the underwriters, dealers or agents
  participating in the distribution of the Debt Securities or by the Company if
  such Debt Securities are offered and sold directly by the Company. Ownership of
  beneficial interests in a global security will be limited to participants or
  persons that may hold beneficial interests through participants. Ownership of
  beneficial interests in a global security will be shown on, and the transfer of
  that ownership will be effected only through, records maintained by the
  depositary therefor or its nominee (with respect to interests of participants)
  or by participants or persons that hold through participants (with respect to
  interests of persons other than participants). The laws of some states in the
  United States may require that certain purchasers of securities take physical
  delivery of such securities in definitive form. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; So long as the depositary for a global
  security or its nominee is the registered owner of the global security or holder
  of a global security in bearer form, such depositary or such nominee, as the
  case may be, will be considered the sole owner or holder of the Debt Securities
  represented by the global security for all purposes under the Indenture. Except
  as provided below, owners of beneficial interests in a global security will not
  be entitled to have a series of the Debt Securities represented by the global
  security registered in their names, will not receive or be entitled to
  receive physical delivery of such series of the Debt Securities in definitive
  form and will not be considered the owners or holders thereof under the
  Indenture. </P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; Any payments of principal, premium, if
  any, and interest, if any, on global securities registered in the name of a
  depositary or securities registrar will be made to the depositary or its
  nominee, as the case may be, as the registered owner of the global security
  representing such Debt Securities. None of the Company, any trustee or any
  paying agent for the Debt Securities represented by the global securities will
  have any responsibility or liability for any aspect of the records relating to
  or payments made on account of beneficial ownership interests of the global
  security or for maintaining, supervising or reviewing any records relating to
  such beneficial ownership interests. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The Company expects that the
  depositary for a global security or its nominee, upon receipt of any payment of
  principal, premium, if any, or interest, if any, will credit participants&#146;
  accounts with payments in amounts proportionate to their respective beneficial
  interests in the principal amount of the global security as shown on the records
  of such depositary or its nominee. The Company also expects that payments by
  participants to owners of beneficial interests in a global security held through
  such participants will be governed by standing instructions and customary
  practices, as is now the case with securities held for the accounts of customers
  registered in &#147;street name&#148;, and will be the responsibility of such
  participants. </P>
<P align=justify><I>&nbsp;&nbsp;&nbsp;&nbsp; Discontinuance of Depositary&#146;s Services</I></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; If a depositary for a global security
  representing a particular series of the Debt Securities is at any time unwilling
  or unable to continue as depositary or, if at any time the depositary for such
  series shall no longer be registered or in good standing under the Exchange Act,
  and a successor depositary is not appointed by us within 90 days, the Company
  will issue such series of the Debt Securities in definitive form in exchange for
  a global security representing such series of the Debt Securities. If an event
  of default under the Indenture has occurred and is continuing, Debt Securities
  in definitive form will be printed and delivered upon written request by the
  holder to the appropriate trustee. In addition, the Company may at any time and
  in the Company&#146;s sole discretion determine not to have a series of the Debt
  Securities represented by a global security and, in such event, will issue a
  series of the Debt Securities in definitive form in exchange for all of the
  global securities representing that series of Debt Securities. </P>
<P align=justify><U>Debt Securities in Definitive Form</U> </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; A series of the Debt Securities may be
  issued in definitive form, solely as registered securities, solely as
  unregistered securities or as both registered securities and unregistered
  securities. Registered securities will be issuable in denominations of $1,000
  and integral multiples of $1,000 and unregistered securities will be issuable in
  denominations of $5,000 and integral multiples of $5,000 or, in each case, in
  such other denominations as may be set out in the terms of the Debt Securities
  of any particular series. Unless otherwise indicated in the applicable
  Prospectus Supplement, unregistered securities will have interest coupons
  attached. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; Unless otherwise indicated in the
  applicable Prospectus Supplement, payment of principal, premium, if any, and
  interest, if any, on the Debt Securities (other than global securities) will be
  made at the office or agency designated by the Company, or at the Company&#146;s
  option the Company can pay principal, interest, if any, and premium, if any, by
  check mailed to the address of the person entitled at the address appearing in
  the security register of the trustee or electronic funds wire transfer to an
  account of persons who meet certain thresholds set out in the Indenture who are
  entitled to receive payments by wire transfer. Unless otherwise indicated in the applicable
  Prospectus Supplement, payment of interest, if any, will be made to the persons
  in whose name the Debt Securities are registered at the close of business on the
  day or days specified by the Company. </P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; At the option of the holder of Debt
  Securities, registered securities of any series will be exchangeable for other
  registered securities of the same series, of any authorized denomination and of
  a like aggregate principal amount. If, but only if, provided in an applicable
  Prospectus Supplement, unregistered securities (with all unmatured coupons,
  except as provided below, and all matured coupons in default) of any series may
  be exchanged for registered securities of the same series, of any authorized
  denominations and of a like aggregate principal amount and tenor. In such event,
  unregistered securities surrendered in a permitted exchange for registered
  securities between a regular record date or a special record date and the
  relevant date for payment of interest shall be surrendered without the coupon
  relating to such date for payment of interest, and interest will not be payable
  on such date for payment of interest in respect of the registered security
  issued in exchange for such unregistered security, but will be payable only to
  the holder of such coupon when due in accordance with the terms of the
  Indenture. Unless otherwise specified in an applicable Prospectus Supplement,
  unregistered securities will not be issued in exchange for registered
  securities. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The applicable Prospectus Supplement
  may indicate the places to register a transfer of the Debt Securities in
  definitive form. Service charges may be payable by the holder for any
  registration of transfer or exchange of the Debt Securities in definitive form,
  and the Company may, in certain instances, require a sum sufficient to cover any
  tax or other governmental charges payable in connection with these transactions. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The Company shall not be required to: </P>
<UL>
  <LI>
    <div align="justify">issue, register the transfer of or exchange any series of the Debt
      Securities in definitive form during a period beginning at the opening of 15
      days before any selection of securities of that series of the Debt Securities
      to be redeemed and ending on the relevant date of notice of such redemption,
      as provided in the Indenture; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">register the transfer of or exchange any registered security in definitive
      form, or portion thereof, called for redemption, except the unredeemed portion
      of any registered security being redeemed in part; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">exchange any unregistered security called for redemption except to the
      extent that such unregistered security may be exchanged for a registered
      security of that series and like tenor; provided that such registered security
      will be simultaneously surrendered for redemption; or <br>
      &nbsp; </div>
  <LI>
    <div align="justify">issue, register the transfer of or exchange any of the Debt Securities in
      definitive form which have been surrendered for repayment at the option of the
      holder, except the portion, if any, of such Debt Securities not to be so
      repaid. </div>
  </LI>
</UL>
<P align=justify><U>Merger, Amalgamation or Consolidation</U> </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The Indenture will provide that the
  Company may not amalgamate or consolidate with, merge into or enter into any
  statutory arrangement with any other person or, directly or indirectly, convey,
  transfer or lease all or substantially all of the Company&#146;s properties and
  assets to another person, unless among other items: </P>
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<UL>
  <LI>
    <div align="justify">the resulting, surviving or transferee person is organized and existing
      under the laws of Canada, or any province or territory thereof, the United
      States, any state thereof or the District of Columbia, or, if the
      amalgamation, merger, consolidation, statutory arrangement or other
      transaction would not impair the rights of holders, any other country; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">the resulting, surviving or transferee person, if other than the Company,
      assumes all of the Company&#146;s obligations under the Debt Securities and the
      Indenture; and <br>
      &nbsp; </div>
  <LI>
    <div align="justify">immediately after the transaction, no default or event of default under
      the Indenture shall have happened and be continuing. <br>
      &nbsp; </div>
  <LI>
    <div align="justify">When such a successor person assumes the Company&#146;s obligations in such
      circumstances, subject to certain exceptions, the Company shall be discharged
      from all obligations and covenants under the Debt Securities and the
      Indenture. </div>
  </LI>
</UL>
<P align=justify><U>Additional Amounts</U> </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; Unless otherwise specified in the
  applicable Prospectus Supplement, all payments made by or on behalf of the
  Company under or with respect to the Debt Securities issued in Canada of any
  series will be made free and clear of and without withholding or deduction for
  or on account of any present or future tax, duty, levy, impost, assessment or
  other government charge (including penalties, interest and other liabilities
  related thereto) imposed or levied by or on behalf of the Government of Canada
  or of any province or territory thereof or by any authority or agency therein or
  thereof having power to tax (&#147;Canadian Taxes&#148;), unless the Company is required
  to withhold or deduct Canadian Taxes by law or by the interpretation or
  administration thereof by the relevant government authority or agency. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; If the Company is so required to
  withhold or deduct any amount for or on account of Canadian Taxes from any
  payment made under or with respect to the Debt Securities issued in Canada, the
  Company will pay as additional interest such additional amounts (the &#147;Additional
  Amounts&#148;) as may be necessary so that the net amount received by a holder of the
  Debt Securities issued in Canada after such withholding or deduction will not be
  less than the amount such holder of the Debt Securities issued in Canada would
  have received if such Canadian Taxes had not been withheld or deducted (a
  similar payment will also be made to holders of the Debt Securities issued in
  Canada, other than excluded holders (as defined herein), that are exempt from
  withholding but required to pay tax under Part XIII of the <I>Income Tax Act </I>(Canada) (the &#147;Tax Act&#148;), directly on amounts otherwise subject to
  withholding); provided, however, that no additional amounts will be payable with
  respect to a payment made to a holder (an &#147;excluded holder&#148;) if the holder of
  the Debt Securities issued in Canada or the beneficial owner of some or all of
  the payment to the holder: </P>
<UL>
  <LI>
    <div align="justify">does not deal at arm&#146;s length with the Company (for purposes of the Tax
      Act) at the time of the making of such payment; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">is subject to such Canadian Taxes by reason of the Debt Securities
      holder&#146;s failure to comply with any certification, identification,
      information, documentation or other reporting requirement if compliance is
      required by law, regulation, administrative practice or an applicable treaty
      as a precondition to exemption from, or a reduction in the rate of deduction
      or withholding of, such Canadian Taxes; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">is subject to such Canadian Taxes by reason of the Debt Securities holder
      being a resident, domicile or national of, or engaged in business or
      maintaining a permanent establishment or other presence in or otherwise having some connection with Canada or any
      province or territory thereof otherwise than by the mere holding of the Debt
      Securities or the receipt of payments thereunder; or </div>
  </LI>
</UL>
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<UL>
  <LI>
    <div align="justify">is subject to such Canadian Taxes because it is not entitled to the
      benefit of an otherwise applicable tax treaty by reason of the legal nature of
      such holder of the Debt Securities. </div>
  </LI>
</UL>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The Company will make such withholding
  or deduction and remit the full amount deducted or withheld to the relevant
  authority as and when required in accordance with applicable law. The Company
  will pay all taxes, interest and other liabilities which arise by virtue of any
  failure of the Company to withhold, deduct and remit to the relevant authority
  on a timely basis the full amounts required in accordance with applicable law.
  The Company will furnish to the holder of the Debt Securities issued in Canada,
  within 60 days after the date the payment of any Canadian Taxes is due pursuant
  to applicable law, certified copies of tax receipts evidencing such payment by
  the Company. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The foregoing obligations shall
  survive any termination, defeasance or discharge of the Indenture.</P>
<P align=justify><U>Tax Redemption</U> </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; If and to the extent specified in the
  applicable Prospectus Supplement, the Debt Securities issued in Canada of a
  series will be subject to redemption at any time, in whole but not in part, at a
  redemption price equal to the principal amount thereof together with accrued and
  unpaid interest to the date fixed for redemption, upon the giving of a notice,
  if (1) the Company determines that (a) as a result of any change in or amendment
  to the laws (or any regulations or rulings promulgated thereunder) of Canada or
  of any political subdivision or taxing authority thereof or therein affecting
  taxation, or any change in position regarding application or interpretation of
  such laws, regulations or rulings (including a holding by a court of competent
  jurisdiction), which change or amendment is announced or becomes effective on or
  after a date specified in the applicable Prospectus Supplement if any date is so
  specified, the Company has or will become obligated to pay, on the next
  succeeding date on which interest is due, Additional Amounts with respect to any
  Debt Security issued in Canada of such series or (b) on or after a date
  specified in the applicable Prospectus Supplement, any action has been taken by
  any taxing authority of, or any decision has been rendered by a court of
  competent jurisdiction in, Canada or any political subdivision or taxing
  authority thereof or therein, including any of those actions specified in (a)
  above, whether or not such action was taken or decision was rendered with
  respect to the Company, or any change, amendment, application or interpretation
  shall be proposed, which, in any such case, in the opinion of counsel to the
  Company, will result in the Company&#146;s becoming obligated to pay, on the next
  succeeding date on which interest is due, Additional Amounts with respect to any
  Debt Security issued in Canada of such series and (2) in any such case, the
  Company, in its business judgment, determines that such obligation cannot be
  avoided by the use of reasonable measures available to it; provided however,
  that (i) no such notice of redemption may be given earlier than 90 days prior to
  the earliest date on which the Company would be obligated to pay such Additional
  Amounts were a payment in respect of the Debt Securities issued in Canada then
  due, and (ii) at the time such notice of redemption is given, such obligation to
  pay such Additional Amounts remains in effect. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; In the event that the Company elects
  to redeem the Debt Securities issued in Canada of such series pursuant to the
  provisions set forth in the preceding paragraph, the Company shall deliver to
  the trustees a certificate, signed by an authorized officer, stating that the
  Company is entitled to redeem the Debt Securities issued in Canada of such
  series pursuant to their terms. </P>
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<P align=center>- 28 - </P>
<P align=justify><U>Provision of Financial Information</U> </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; The Company will file with the
  trustees, within 20 days after it files or furnishes them with the SEC, copies
  of the Company&#146;s annual reports and of the information, documents and other
  reports (or copies of such portions of any of the foregoing as the SEC may by
  rules and regulations prescribe) which the Company is required to file or
  furnish with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; Notwithstanding that the Company may
  not remain subject to the reporting requirements of Section 13 or 15(d) of the
  Exchange Act or otherwise report on an annual basis on forms provided for such
  annual reporting pursuant to rules and regulations promulgated by the SEC, the
  Company will continue to provide the trustees: </P>
<UL>
  <LI>within 20 days after the time periods required for the filing or
    furnishing of such forms by the Commission, annual reports on Form 20-F or
    Form 40-F, as applicable, or any successor form, quarterly reports as
    furnished to the Commission on Form 6-K or any successor form, and copies of
    Canadian material change reports as furnished to the Commission on Form 6-K or
    any successor form. </LI>
</UL>
<P align=justify><U>Events of Default</U> </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; Unless otherwise specified in the
  applicable Prospectus Supplement relating to a particular series of Debt
  Securities, the following is a summary of events which will, with respect to any
  series of the Debt Securities, constitute an event of default under the
  Indenture with respect to the Debt Securities of that series: </P>
<UL>
  <LI>the Company fails to pay principal of, or any premium on, or any
    Additional Amounts in respect of, any Debt Security of that series when it is
    due and payable; <br>
    &nbsp;
  <LI>
      <div align="justify">the Company fails to pay interest (including Additional Amounts) payable
        on any Debt Security of that series when it becomes due and payable, and such
        default continues for 30 days; <br>
        &nbsp;</div>
  <LI>
      <div align="justify">the Company fails to make any required sinking fund or analogous payment
        when due for that series of Debt Securities; <br>
        &nbsp;</div>
  <LI>
      <div align="justify">the Company fails to observe or perform any of its covenants or agreements
        in the Indenture that affect or are applicable to the Debt Securities of that
        series for 90 days after written notice to the Company by the trustees or to
        the Company and the trustees by holders of at least 25% in aggregate principal
        amount of the outstanding Debt Securities of that series; <br>
        &nbsp;</div>
  <LI>
      <div align="justify">a default (as defined in any indenture or instrument under which the
        Company or one of the Company&#146;s subsidiaries has at the date of the Indenture
        or will thereafter have outstanding any indebtedness) has occurred and is
        continuing, or the Company or any of its subsidiaries has failed to pay
        principal amounts with respect to such indebtedness at maturity and such event
        of default or failure to pay has resulted in such indebtedness under such
        indenture or instrument being declared due, payable or otherwise being
        accelerated, in either event so that an amount in excess of the greater of
        US$15,000,000 and 2% of the Company&#146;s shareholders&#146; equity will be or become
        due, payable and accelerated upon such declaration or prior to the date on
        which the same would otherwise have become due, payable and accelerated (the
        &#147;Accelerated Indebtedness&#148;), and such acceleration will not be rescinded or
        annulled, or such event of default or failure to pay under such indenture or instrument will not be
        remedied or cured, whether by payment or otherwise, or waived by the holders
        of such Accelerated Indebtedness, then (i) if the Accelerated Indebtedness
        will be as a result of an event of default which is not related to the failure
        to pay principal or interest on the terms, at the times, and on the conditions
        set out in any such indenture or instrument, it will not be considered an
        event of default for the purposes of the indenture governing the Debt
        Securities until 30 days after such indebtedness has been accelerated, or (ii)
        if the Accelerated Indebtedness will occur as a result of such failure to pay
        principal or interest or as a result of an event of default which is related
        to the failure to pay principal or interest on the terms, at the times, and on
        the conditions set out in any such indenture or instrument, then (A) if such
        Accelerated Indebtedness is, by its terms, non-recourse to the Company or its
        subsidiaries, it will be considered an event of default for purposes of the
        Indenture governing the Debt Securities; or (B) if such Accelerated
        Indebtedness is recourse to the Company or its subsidiaries, any requirement
        in connection with such failure to pay or event of default for the giving of
        notice or the lapse of time or the happening of any further condition, event
        or act under such indenture or instrument in connection with such failure to
        pay or event of default will be applicable together with an additional seven
        days before being considered an event of default for the purposes of the
        Indenture; </div>
  </LI>
</UL>
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<UL>
  <LI>
    <p style="margin-bottom: 0">certain events involving the Company&#146;s bankruptcy, insolvency or
      reorganization; and <br>
      &nbsp;
  <LI>
      <div align="justify">any other event of default provided for in that series of Debt Securities. </div>
  </LI>
</UL>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A default under one series of
  Debt Securities will not necessarily be a default under another series. A
  trustee may withhold notice to the holders of the Debt Securities of any
  default, except in the payment of principal or premium, if any, or interest, if
  any, if in good faith it considers it in the interests of the holders to do so
  and so advises the Company in writing. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an event of default (except
  for events involving the Company&#146;s bankruptcy, insolvency or reorganization) for
  any series of Debt Securities occurs and continues, a trustee or the holders of
  at least 25% in aggregate principal amount of the Debt Securities of that series
  may require the Company to repay immediately: </P>
<UL>
  <LI>
    <p align="justify" style="margin-bottom: 0">the entire principal and interest of the Debt Securities of the series; or <br>
      &nbsp;
  <LI>
      <div align="justify">if the Debt Securities are discounted securities, that portion of the
        principal as is described in the applicable Prospectus Supplement. </div>
  </LI>
</UL>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an event of default relates to
  events involving the Company&#146;s bankruptcy, insolvency or reorganization, the
  principal of all Debt Securities will become immediately due and payable without
  any action by the trustee or any holder.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to certain conditions,
  the holders of a majority of the aggregate principal amount of the Debt
  Securities of the affected series can rescind and annul an accelerated payment
  requirement. If Debt Securities are discounted securities, the applicable
  Prospectus Supplement will contain provisions relating to the acceleration of
  maturity of a portion of the principal amount of the discounted securities upon
  the occurrence or continuance of an event of default. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other than its duties in case of
  a default, a trustee is not obligated to exercise any of the rights or powers
  that it will have under the Indenture at the request or direction of any
  holders, unless the holders offer the trustee reasonable security or indemnity. If they
  provide this reasonable security or indemnity, the holders of a majority in
  aggregate principal amount of any series of Debt Securities may, subject to
  certain limitations, direct the time, method and place of conducting any
  proceeding for any remedy available to a trustee, or exercising any trust or
  power conferred upon a trustee, for any series of Debt Securities. </P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company will be required to
  furnish to the trustees a statement annually as to its compliance with all
  conditions and covenants under the Indenture and, if the Company is not in
  compliance, the Company must specify any defaults. The Company will also be
  required to notify the trustees as soon as practicable upon becoming aware of
  any event of default. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No holder of a Debt Security of
  any series will have any right to institute any proceeding with respect to the
  Indenture, or for the appointment of a receiver or a trustee, or for any other
  remedy, unless: </P>
<UL>
  <LI>the holder has previously given to the trustees written notice of a
    continuing event of default with respect to the Debt Securities of the
    affected series; <br>
    &nbsp;
  <LI>
      <div align="justify">the holders of at least 25% in principal amount of the outstanding Debt
        Securities of the series affected by an event of default have made a written
        request, and the holders have offered reasonable indemnity, to the trustees to
        institute a proceeding as trustees; and <br>
        &nbsp; </div>
  <LI>
      <div align="justify">the trustees have failed to institute a proceeding, and have not received
        from the holders of a majority in aggregate principal amount of the
        outstanding Debt Securities of the series affected (or in the case of
        bankruptcy, insolvency or reorganization, all series outstanding) by an event
        of default a direction inconsistent with the request, within 60 days after
        receipt of the holders&#146; notice, request and offer of indemnity. </div>
  </LI>
</UL>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However, such above-mentioned
  limitations do not apply to a suit instituted by the holder of a Debt Security
  for the enforcement of payment of the principal of or any premium, if any, or
  interest on such Debt Security on or after the applicable due date specified in
  such Debt Security. </P>
<P align=justify><U>Defeasance</U> </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When the Company uses the term
  &#147;defeasance&#148;, it means discharge from its obligations with respect to any Debt
  Securities of or within a series under the Indenture. Unless otherwise specified
  in the applicable Prospectus Supplement, if the Company deposits with a trustee
  cash, government securities or a combination thereof sufficient to pay the
  principal, interest, if any, premium, if any, and any other sums due to the
  stated maturity date or a redemption date of the Debt Securities of a series,
  then at the Company&#146;s option: </P>
<UL>
  <LI>
    <div align="justify">the Company will be discharged from the obligations with respect to the
      Debt Securities of that series; or <br>
      &nbsp; </div>
  <LI>
    <div align="justify">the Company will no longer be under any obligation to comply with certain
      restrictive covenants under the Indenture and certain events of default will
      no longer apply to the Company. </div>
  </LI>
</UL>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this happens, the holders of
  the Debt Securities of the affected series will not be entitled to the benefits
  of the Indenture except for registration of transfer and exchange of Debt
  Securities and the replacement of lost, stolen, destroyed or mutilated Debt
  Securities. These holders may look only to the deposited fund for payment on
  their Debt Securities. </P>
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<P align=center>- 31 - </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; To exercise the defeasance option, the
  Company must deliver to the trustees: </P>
<UL>
  <LI>
    <div align="justify">an opinion of counsel in the United States to the effect that the holders
      of the outstanding Debt Securities of the affected series will not recognize
      income, gain or loss for U.S. federal income tax purposes as a result of a
      defeasance and will be subject to U.S. federal income tax on the same amounts,
      in the same manner and at the same times as would have been the case if the
      defeasance had not occurred; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">an opinion of counsel in Canada or a ruling from the Canada Revenue Agency
      to the effect that the holders of the outstanding Debt Securities of the
      affected series will not recognize income, gain or loss for Canadian federal,
      provincial or territorial income or other tax purposes as a result of a
      defeasance and will be subject to Canadian federal, provincial or territorial
      income tax and other tax on the same amounts, in the same manner and at the
      same times as would have been the case had the defeasance not occurred; and <br>
      &nbsp; </div>
  <LI>
    <div align="justify">a certificate of one of the Company&#146;s officers and an opinion of counsel,
      each stating that all conditions precedent provided for relating to defeasance
      have been complied with. </div>
  </LI>
</UL>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Company is to be
  discharged from its obligations with respect to the Debt Securities, and not
  just from the Company&#146;s covenants, the U.S. opinion must be based upon a ruling
  from or published by the United States Internal Revenue Service or a change in
  law to that effect. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the delivery of
  the opinions described above, the following conditions must be met before the
  Company may exercise its defeasance option: </P>
<UL>
  <LI>
    <div align="justify">no event of default or event that, with the passing of time or the giving
      of notice, or both, shall constitute an event of default shall have occurred
      and be continuing for the Debt Securities of the affected series; <br>
      &nbsp; </div>
  <LI>
    <div align="justify">the Company is not an &#147;insolvent person&#148; within the meaning of applicable
      bankruptcy and insolvency legislation; and <br>
      &nbsp; </div>
  <LI>
    <div align="justify">other customary conditions precedent are satisfied. </div>
  </LI>
</UL>
<P align=justify><U>Modification and Waiver</U> </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Modifications and amendments of
  the Indenture may be made by the Company and the trustees pursuant to one or
  more Supplemental Indentures (a &#147;Supplemental Indenture&#148;) with the consent of
  the holders of at least a majority in aggregate principal amount of the
  outstanding Debt Securities of each series affected by the modification.
  However, without the consent of each holder affected, no such modification may: </P>
<UL>
  <LI>
    <div align="justify">change the stated&nbsp; maturity of the principal of, premium, if any, or any
      instalment of interest, if any, on any Debt Security; </div>
  </LI>
</UL>
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<P align=center>- 32 - </P>
<UL>
  <LI>
    <div align="justify">reduce the principal, premium, if any, or rate of interest, if any, or
      change any obligation of the Company to pay any Additional Amounts; <br>
      &nbsp;</div>
  <LI>
    <div align="justify">reduce the amount of principal of a debt security payable upon
      acceleration of its maturity or the amount provable in bankruptcy; <br>
      &nbsp;</div>
  <LI>
    <div align="justify">change the place or currency of any payment; <br>
      &nbsp;</div>
  <LI>
    <div align="justify">affect the holder&#146;s right to require the Company to repurchase the Debt
      Securities at the holder&#146;s option; <br>
      &nbsp;</div>
  <LI>
    <div align="justify">impair the right of the holders to institute a suit to enforce their
      rights to payment; <br>
      &nbsp;</div>
  <LI>
    <div align="justify">adversely affect any conversion or exchange right related to a series of
      Debt Securities; <br>
      &nbsp;</div>
  <LI>
    <div align="justify">reduce the percentage of Debt Securities required to modify the Indenture
      or to waive compliance with certain provisions of the Indenture; or <br>
      &nbsp;</div>
  <LI>
    <div align="justify">reduce the percentage in principal amount of outstanding Debt Securities
      necessary to take certain actions. </div>
  </LI>
</UL>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holders of at least a
  majority in principal amount of outstanding Debt Securities of any series may on
  behalf of the holders of all Debt Securities of that series waive, insofar as
  only that series is concerned, past defaults under the Indenture and compliance
  by the Company with certain restrictive provisions of the Indenture. However,
  these holders may not waive a default in any payment of principal, premium, if
  any, or interest on any Debt Security or compliance with a provision that cannot
  be modified without the consent of each holder affected. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company may modify the
  Indenture pursuant to a Supplemental Indenture without the consent of any
  holders to: </P>
<UL>
  <LI>
    <div align="justify">evidence its successor under the Indenture; <br>
      &nbsp;</div>
  <LI>
    <div align="justify">add covenants of the Company or surrender any right or power of the
      Company for the benefit of holders; <br>
      &nbsp;</div>
  <LI>
    <div align="justify">add events of default; <br>
      &nbsp;</div>
  <LI>
    <div align="justify">provide for unregistered securities to become registered securities under
      the Indenture and make other such changes to unregistered securities that in
      each case do not materially and adversely affect the interests of holders of
      outstanding Debt Securities; <br>
      &nbsp;</div>
  <LI>
    <div align="justify">establish the forms of the Debt Securities; <br>
      &nbsp;</div>
  <LI>
    <div align="justify">appoint a successor trustee under the Indenture; <br>
      &nbsp;</div>
  <LI>
    <div align="justify">add provisions to permit or facilitate the defeasance and discharge of the
      Debt Securities as long as there is no material adverse effect on the holders; </div>
  </LI>
</UL>
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<UL>
  <LI>
    <div align="justify">cure any ambiguity, correct or supplement any defective or inconsistent
      provision or make any other provisions in each case that would not materially
      and adversely affect the interests of holders of outstanding Debt Securities,
      if any; <br>
      &nbsp;</div>
  <LI>
    <div align="justify">comply with any applicable laws of the United States and Canada in order
      to effect and maintain the qualification of the Indenture under such laws to
      the extent they do not conflict with the applicable laws of the United States;
      or</div>
    <br>
  <LI>
    <div align="justify">change or eliminate any provisions of the Indenture where such change
      takes effect when there are no Debt Securities outstanding which are entitled
      to the benefit of those provisions under the Indenture. </div>
  </LI>
</UL>
<P align=justify><U>Governing Law</U> </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Indenture and the Debt
  Securities will be governed by and construed in accordance with the laws of the
  State of New York, except that discharge by the Canadian trustee of any of its
  rights, powers, duties or responsibilities hereunder shall be construed in
  accordance with the laws of the Province of British Columbia and the federal
  laws of Canada applicable thereto. </P>
<P align=justify><U>The Trustees</U> </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any trustee under the Indenture
  or its affiliates may provide other services to the Company in the ordinary
  course of their business. If the trustee or any affiliate acquires any
  conflicting interest and a default occurs with respect to the Debt Securities,
  the trustee must eliminate the conflict or resign. </P>
<P align=justify><U>Resignation and Removal of Trustee</U> </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A trustee may resign or be
  removed with respect to one or more series of the Debt Securities and a
  successor trustee may be appointed to act with respect to such series. </P>
<P align=justify><U>Consent to Service</U> </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Indenture,
  the Company will irrevocably designate and appoint Corporation Service Company,
  Suite 400, 2711 Centerville Road, Wilmington, Delaware, USA 19808,<B> </B>as its
  authorized agent upon which process may be served in any suit or proceeding
  arising out of or relating to the Indenture or the Debt Securities that may be
  instituted in any U.S. federal or New York State court located in The Borough of
  Manhattan, in the City of New York, or brought by the trustees (whether in their
  individual capacity or in their capacity as trustees under the Indenture), and
  will irrevocably submit to the non-exclusive jurisdiction of such courts. </P>
<P align=justify><B>Units </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company may issue Units
  comprised of one or more of the other Securities described in the Prospectus in
  any combination. Each Unit will be issued so that the holder of the Unit is also
  the holder of each of the Securities included in the Unit. Thus, the holder of a
  Unit will have the rights and obligations of a holder of each included Security.
  The unit agreement, if any, under which a Unit is issued may provide that the
  Securities included in the Unit may not be held or transferred separately, at
  any time or at any time before a specified date. </P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The particular terms and
  provisions of Units offered by any prospectus supplement, and the extent to
  which the general terms and provisions described below may apply thereto, will
  be described in the prospectus supplement filed in respect of such Units. </P>
<P align=center><B>RISK FACTORS </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An investment in the Company&#146;s
  common shares is highly speculative and subject to a number of risks. A
  prospective purchaser of the Securities should carefully consider the
  information described in the Prospectus as well as the risk factors set out in
  the Annual Information Form incorporated herein by reference. In addition to
  those risks, a prospective purchaser of the Securities should also carefully
  consider the following risk factors. </P>
<P align=justify><B>Volatility in Metals Prices</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January 14, 2010, Taseko
  received approval under the <I>Environmental Assessment Act</I> (British
  Columbia) for the Prosperity Project from the British Columbia Ministry of
  Environment and the Mines Act permit. The Federal Review Panel submitted its
  report to Canada&#146;s Minister of the Environment on July 2, 2010. The Company
  expects the Federal Cabinet will make a decision on the Prosperity Project in
  October 2010. Failure to obtain such approvals 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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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><B>Increased Costs Could Affect Profitability </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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
  in the case 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&rsquo;s Harmony Project and Aley Project Contain No Known Reserves of Ore; No Reserves at Prosperity Under SEC Standards </b></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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, gold or molybdenum prices, the
  Company may be required to take additional material write-downs of its operating
  and development properties. </P>
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<P align=justify><B>The Effects of the Company&#146;s Commodity Hedging Program to
  Mitigate the Impact of Copper Price Volatility are Uncertain and may Limit the
  Price that the Company may Realize on Copper Sales. </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has an ongoing copper
  hedging program. However, there is no assurance that a commodity hedging program
  designed to reduce the risk associated with fluctuations in metal prices will be
  successful. Hedging may not protect adequately against declines in the price of
  the hedged metal. Although hedging may protect Taseko from a decline in the
  price of the metal being hedged, it may also prevent Taseko from benefiting
  fully from price increases. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s ongoing copper
  hedging program could expose it to certain inherent risks including: (a) credit
  risk- the risk that the creditworthiness of a counterparty may adversely affect
  its ability to perform its payment and other obligations under its agreement
  with Taseko or adversely affect the financial and other terms the counterparty
  is able to offer Taseko; (b) market liquidity risk &#150; the risk that Taseko has
  entered into a hedging position that cannot be closed out quickly, by either
  liquidating such hedging instrument or by establishing an offsetting position;
  (c) unrealized mark-to-market risk &#150; the risk that, in respect of certain
  hedging products, an adverse change in market prices for commodities, currencies
  or interest rates will result in Taseko incurring an unrealized mark-to-market
  loss in respect of such hedging products.</P>
<P align=justify><B>General Mining Risks</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. Cost of equipment procurement and repairs also can
  impact operations. </P>
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<P align=justify><B>Certain Mineralized Material Qualifying as a Reserve in
  Canada is Not Considered a Reserve in the U.S. </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain mineralized material at
  our Prosperity Project qualifies under Canadian mining disclosure standards as a
  proven and probable reserve. However, it is not considered to be a reserve under
  SEC standards. 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>
<P align=justify><B>Taseko&#146;s Share Price is Volatile</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In recent years, the market price
  of Taseko has experienced a high level of price volatility. Taseko&#146;s shares have
  ranged between $0.36 and $20.00 in the last 18 years and between approximately
  $0.69 and $6.28 in the last three years. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The wide fluctuation in market
  prices of its 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
  rate 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>
<P align=justify><B>Environmental Considerations</B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taseko had 11,564,307 share purchase options in-the-money at October 7, 2010.  In addition, there are also shares potentially issuable in 2011 on the conversion of Gibraltar&rsquo;s class of Preferred Shares issued for the Harmony project, none of which are owned by Taseko. All of the foregoing may likely act as an upside constraint on the trading price of Taseko&rsquo;s shares.</P>
<P align=justify><B>Taseko may fail to maintain the adequacy of internal control
  over financial reporting in breach of the Sarbanes-Oxley Act and National
  Instrument 52-109 &#150; <I>Certification of Disclosure in Issuers&#146; Annual and
    Interim Filings</I>. </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company documented and tested
  during its most recent fiscal year, its internal control procedures in order to
  satisfy the requirements of Section 404 of the Sarbanes-Oxley Act (&#147;SOX&#148;)
  National Instrument 52-109 &#150; <I>Certification of Disclosure in Issuers&#146; Annual
    and Interim Filings</I> (&#147;NI 52-109&#148;). SOX requires an annual assessment by
  management and an independent assessment by the Company&#146;s independent auditors
  of the effectiveness of the Company&#146;s internal control over financial reporting.
  Similarly, NI 52-109 requires annual evaluations by management of the
  effectiveness of the Company&#146;s internal control over financial reporting and it
  also requires issuers to disclose, on an annual and quarterly basis, changes in
  the Company&#146;s internal control over financial reporting that have materially
  affected, or are reasonably likely to materially affect, the Company&#146;s internal
  control over financial reporting. The Company may fail to achieve and maintain
  the adequacy of its internal control over financial reporting as such standards are modified,
  supplemented, or amended from time to time, and the Company may not be able to
  ensure that it can conclude on an ongoing basis that it has effective internal
  controls over financial reporting in accordance with Section 404 of SOX or NI
  52-109. The Company&#146;s failure to satisfy the requirements of Section 404 of SOX
  or NI 52-109 on an ongoing, timely basis could result in the loss of investor
  confidence in the reliability of its financial statements, which in turn could
  harm the Company&#146;s business and negatively impact the trading price of its
  Common Shares or market value of its other securities. In addition, any failure
  to implement required new or improved controls, or difficulties encountered in
  their implementation, could harm the Company&#146;s operating results or cause it to
  fail to meet its reporting obligations. </P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There can be no assurance that
  the Company will be able to remediate material weaknesses, if any, identified in
  future periods, or maintain all of the controls necessary for continued
  compliance, and there can be no assurance that the Company will be able to
  retain sufficient skilled finance and accounting personnel, especially in light
  of the increased demand for such personnel among publicly traded companies.
  Future acquisitions of companies, if any, may provide the Company with
  challenges in implementing the required processes, procedures and controls in
  its acquired operations. Acquired companies may not have disclosure controls and
  procedures or internal control over financial reporting that are as thorough or
  effective as those required by securities laws currently applicable to the
  Company. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No evaluation can provide
  complete assurance that the Company&#146;s internal control over financial reporting
  will detect or uncover all failures of persons within the Company to disclose
  material information otherwise required to be reported. The effectiveness of the
  Company&#146;s controls and procedures could also be limited by simple errors or
  faulty judgments. In addition, as the Company continues to expand, the
  challenges involved in implementing appropriate internal controls over financial
  reporting will increase and will require that the Company continue to improve
  its internal controls over financial reporting. Although the Company intends to
  devote substantial time and incur costs, as necessary, to ensure ongoing
  compliance, the Company cannot be certain that it will be successful in
  complying with Section 404 of SOX and NI 52-109. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>If any of the foregoing
  events, or other risk factor events as described herein occur, our business,
  financial condition or results of operations could likely suffer. In that event,
  the market price of our securities could decline and investors could lose all or
  part of their investment. </I></B></P>
<P align=center><B>CANADIAN FEDERAL INCOME TAX CONSIDERATIONS </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The applicable prospectus
  supplement will describe certain Canadian federal income tax consequences to an
  investor acquiring any Securities offered thereunder. </P>
<P align=center><B>MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The applicable prospectus
  supplement will describe certain United States federal income tax consequences to
  an investor acquiring any Securities offered thereunder. </P>
<P align=center><B>MATERIAL CONTRACTS </B></P>
<P align=justify>Joint Venture Formation Agreement dated March 18, 2010 among
  Taseko, Gibraltar Mines Ltd. and Cariboo Copper Corp. which provides for the
  strategic relationship for the development and operation of the Gibraltar Mine; </P>
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<P align=justify>Joint Venture Operating Agreement dated March 18, 2010 among
  Taseko, Gibraltar Mines Ltd. and Cariboo Copper Corp. which provides the
  operation of the Gibraltar Mine; and </P>
<P align=justify>Services Agreement dated July 2, 2010 between Hunter Dickinson
  Services Inc. (&#147;HD Services&#148;) and Taseko pursuant to which HD Services agreed to
  provide technical, geological, corporate communications, administrative and
  management services to Taseko. </P>
<P align=center><B>LEGAL MATTERS </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain legal matters relating to
  the Securities offered by this Prospectus will be passed upon for us by Lang
  Michener LLP, Vancouver, B.C., with respect to matters of Canadian law, and
  Dorsey &amp; Whitney LLP, Vancouver, B.C. and Seattle, WA, with respect to
  matters of United States law. The partners and associates of Lang Michener LLP
  and Dorsey &amp; Whitney LLP beneficially own, directly or indirectly, less than
  1% of any class of securities issued by the Company. As at the date hereof, the
  partners and associates of Lang Michener LLP, as a group, and the partners and
  associates of Dorsey &amp; Whitney LLP, as a group, each beneficially own,
  directly or indirectly, less than one percent of the outstanding Common Shares
  of the Company. </P>
<P align=center><B>AUDITORS, TRANSFER AGENT AND REGISTRAR </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The auditors of the Company are
  KPMG LLP, Chartered Accountants, Vancouver, British Columbia. The transfer agent
  and registrar for the Common Shares of the Company is Computershare Investor
  Services Inc. at its principal office in Vancouver, British Columbia and
  Toronto, Ontario. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated financial
  statements as at December 31, 2008 and 2009 and for each of the years in the
  three year period ended December 31, 2009 incorporated in the Prospectus by
  reference have been audited by KPMG LLP, independent registered chartered
  accountants, as stated in their report, which is incorporated herein by
  reference. </P>
<P align=center><B>DOCUMENTS FILED AS PART OF THE REGISTRATION STATEMENT </B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following documents have been
  filed or will be filed with the SEC as part of the registration statement of
  which this Prospectus forms a part: the documents listed under &#147;Documents
  Incorporated by Reference&#148;; consents of accountants, engineers and counsel; form
  of trust indenture; and powers of attorney. </P>
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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
