<SEC-DOCUMENT>0001062993-12-001051.txt : 20120330
<SEC-HEADER>0001062993-12-001051.hdr.sgml : 20120330
<ACCEPTANCE-DATETIME>20120329200951
ACCESSION NUMBER:		0001062993-12-001051
CONFORMED SUBMISSION TYPE:	40-F
PUBLIC DOCUMENT COUNT:		22
CONFORMED PERIOD OF REPORT:	20111231
FILED AS OF DATE:		20120330
DATE AS OF CHANGE:		20120329

FILER:

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

	FILING VALUES:
		FORM TYPE:		40-F
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31965
		FILM NUMBER:		12725682

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

	MAIL ADDRESS:	
		STREET 1:		SUITE 1020
		STREET 2:		800 WEST PENDER STREET
		CITY:			VANCOUVER
		STATE:			A1
		ZIP:			V6C 2V6
</SEC-HEADER>
<DOCUMENT>
<TYPE>40-F
<SEQUENCE>1
<FILENAME>form40f.htm
<DESCRIPTION>ANNUAL REPORT
<TEXT>
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   <TITLE>Taseko Mines Limited: Form 40F - Filed by newsfilecorp.com</TITLE>
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<P align=center><B><FONT size=5>UNITED STATES </FONT><BR></B><B><FONT
size=5>SECURITIES AND EXCHANGE COMMISSION </FONT><BR>WASHINGTON, D.C.
20549</B></P>
<P align=center><B><FONT size=5>FORM 40-F</FONT></B></P>
<P align=center>[ ] <B>REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE
SECURITIES EXCHANGE ACT OF 1934</B></P>
<P align=center>OR</P>
<P align=center>[ x ] <B>ANNUAL REPORT PURSUANT TO SECTION 13(a) OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center><B>For the fiscal year ended December 31, 2011 </B></TD>
    <TD align=center width="50%">Commission File Number: 001-31965
  </TD></TR></TABLE>
<P align=center><B><U><FONT size=5>TASEKO MINES
LIMITED</FONT></U><BR></B><I>(Exact name of Registrant as specified in its
charter)</I></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center><U><B>British Columbia </B></U></TD>
    <TD align=center width="33%"><U><B>1040 </B></U></TD>
    <TD align=center width="33%"><U><B>Not Applicable </B></U></TD></TR>
  <TR vAlign=top>
    <TD align=center><I>(Province or Other Jurisdiction of </I></TD>
    <TD align=center width="33%"><I>(Primary Standard Industrial </I></TD>
    <TD align=center width="33%"><I>(I.R.S. Employer </I></TD></TR>
  <TR vAlign=top>
    <TD align=center><I>Incorporation or Organization) </I></TD>
    <TD align=center width="33%"><I>Classification Code) </I></TD>
    <TD align=center width="33%"><I>Identification No.)
</I></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=center><B>15</B><B><SUP>th </SUP></B><B>Floor &#150; 1040 West
      Georgia Street </B></TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>Vancouver, British Columbia </B></TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>Canada V6E 4H8 </B></TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B><U>(778) 373-4534 </U></B></TD></TR>
  <TR vAlign=top>
    <TD align=center><I>(Address and telephone number of Registrant&#146;s
      principal executive offices) </I></TD></TR>
  <TR>
    <TD>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>Corporation Service Company </B></TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>Suite 400, 2711 Centerville Road </B></TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>Wilmington, Delaware 19808 </B></TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B><U>(800) 927-9800 </U></B></TD></TR>
  <TR vAlign=top>
    <TD align=center><I>(Name, address (including zip code) and telephone
      number (including </I></TD></TR>
  <TR vAlign=bottom>
    <TD align=center><I>area code) of agent for service in the United States)
      </I></TD></TR></TABLE>
<P align=center>Securities registered or to be registered pursuant to section
12(b) of the Act:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center><U>Title Of Each Class </U></TD>
    <TD align=center width="50%"><U>Name Of Each Exchange On Which Registered
      </U></TD></TR>
  <TR vAlign=top>
    <TD align=center>Common Shares, no par value </TD>
    <TD align=center width="50%">NYSE Amex Equities </TD></TR></TABLE>
<P align=center>Securities registered or to be registered pursuant to Section
12(g) of the Act: <B>None</B></P>
<P align=center>Securities for which there is a reporting obligation pursuant to
Section 15(d) of the Act: <B>None </B></P>
<P align=center>For annual reports, indicate by check mark the information filed
with this Form:</P>
<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>[ x ] Annual Information Form </TD>
    <TD align=center width="50%">[ x ] Audited Annual Financial Statements
  </TD></TR></TABLE>
<P align=center>Indicate the number of outstanding shares of each of the
Registrant&#146;s classes of capital or common stock as of the close of the period
covered by the annual report: <B>196,504,895 Common Shares as of December 31,
2011</B></P>
<P align=center>Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Exchange Act during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.<BR>Yes[ x ]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No[ ]</P>
<P align=center>Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (&#167;232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the Registrant was required to submit and post such files).
<BR>Yes[ ]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No[ ]</P>
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<P align=center><B>PRINCIPAL DOCUMENTS</B></P>
<P align=justify>The following documents that are filed as exhibits to this
  annual report are incorporated by reference herein: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
    <P>the Company&#146;s Annual Information Form for the year ended December 31, 2011; </P>
  <LI>
    <P>the Company&#146;s Audited Consolidated Financial Statements as at December 31,
      2011, December 31, 2010, and January 1, 2010 and for the years ended December
      31, 2011 and 2010, and the notes thereto; and </P>
  <LI>
    <P>the Company&#146;s Amended Management Discussion and Analysis for the year ended
      December 31, 2011. </P>
  </LI>
</UL>
<P align=justify>The Company&#146;s Audited Consolidated Financial Statements that
  are incorporated by reference into this Registration Statement have been
  prepared in accordance with International Financial Reporting Standards (&#147;IFRS&#148;)
  as issued by the International Accounting Standards Board (the &#147;IASB&#148;).</P>
<P align=center><B>DISCLOSURE CONTROLS AND PROCEDURES</B></P>
<P align=justify>Disclosure controls and procedures are defined in Rule
  13a-15(e) under the Securities Exchange Act of 1934 (&#147;Exchange Act&#148;) to mean
  controls and other procedures of an issuer that are designed to ensure that
  information required to be disclosed by the issuer in the reports that it files
  or submits under the Exchange Act is recorded, processed, summarized and
  reported, within the time periods specified in the SEC&#146;s rules and forms and
  includes, without limitation, controls and procedures designed to ensure that
  such information is accumulated and communicated to the issuer&#146;s management,
  including its principal executive and principal financial officers, or persons
  performing similar functions, as appropriate to allow timely decisions regarding
  required disclosure.</P>
<P align=justify>As of the end of the period covered by this report, our
  management carried out an evaluation, with the participation of our Chief
  Executive Officer and Chief Financial Officer, of the effectiveness of our
  disclosure controls and procedures. Based upon that evaluation, our Chief
  Executive Officer and Chief Financial Officer concluded that, as of the end of
  the period covered by this report, our disclosure controls and procedures, as
  defined in Rule 13a-15(e), were effective. See &#147;Internal Controls Over Financial
  Reporting and Disclosure Controls and Procedures&#148; on page 29 of Exhibit 99.7,
  Management Discussion and Analysis of the Company.</P>
<P align=center><B>INTERNAL CONTROLS OVER FINANCIAL REPORTING</B></P>
<P align=justify>The disclosure provided under &#147;Management&#146;s Report on Internal
  Control Over Financial Reporting&#148; on page 3 of Exhibit 99.6, Audited
  Consolidated Financial Statements, is incorporated by reference herein.</P>
<P align=center><B>ATTESTATION REPORT OF THE REGISTERED PUBLIC ACCOUNTING
  FIRM</B></P>
<P align=justify>The Company is required to provide an attestation report of the
  Company&#146;s registered public accounting firm on internal control over financial
  reporting for the fiscal year ended December 31, 2011. In this report, the
  Company&#146;s auditor, KPMG LLP, must state its opinion as to the effectiveness of
  the Company&#146;s internal control over financial reporting for the fiscal year
  ended December 31, 2011. KPMG LLP has audited the Company&#146;s internal controls
  over financial reporting and has issued an attestation report on the Company&#146;s
  internal control over financial reporting which is included in Exhibit 99.6.</P>
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<P align=center>- 2 -</P>
<P align=center><B>AUDIT AND RISK COMMITTEE </B></P>
<P align=justify>The disclosure provided under &#147;Composition of Audit and Risk
  Committee&#148; on page 55 of Exhibit 99.5, Annual Information Form of the Company,
  is incorporated by reference herein. The Company&#146;s Board of Directors has
  established a separately-designated Audit and Risk Committee of the Board in
  accordance with Section 3(a)(58)(A) of the Exchange Act. </P>
<P align=center><B>AUDIT AND RISK COMMITTEE FINANCIAL EXPERT</B></P>
<P align=justify>The Company&#146;s Board of Directors has determined that Richard
  Mundie and Alex Morrison, members of the Audit and Risk Committee of the Board,
  are audit committee financial experts (as that term is defined in Item 407 of
  Regulation S-K under the Exchange Act) and are independent directors under
  applicable laws and regulations and the requirements of the NYSE Amex Equities
  Exchange.</P>
<P align=center><B>PRINCIPAL ACCOUNTANT FEES AND SERVICES</B></P>
<P align=justify>The disclosure provided under &#147;Principal Accountant Fees and
  Services&#148; on page 56 of Exhibit 99.5, Annual Information Form of the Company, is
  incorporated by reference herein. </P>
<P align=center><B>AUDIT AND RISK COMMITTEE PRE-APPROVAL POLICIES AND
  PROCEDURES</B></P>
<P align=justify>The disclosure provided under &#147;Audit and Risk Committee
  Pre-Approval Policies and Procedures&#148; on page 56 of Exhibit 99.5, Annual
  Information Form of the Company, is incorporated by reference herein. </P>
<P align=center><B>OFF-BALANCE SHEET ARRANGEMENTS</B></P>
<P align=justify>The Company has not entered into any off-balance sheet
  arrangements that have or are reasonably likely to have a current or future
  effect on the Company&#146;s financial condition, changes in financial condition,
  revenues, expenses, results of operations, liquidity, capital expenditures or
  capital resources that are material to investors.</P>
<P align=center><B>CONTRACTUAL OBLIGATIONS</B></P>
<P align=justify>The disclosures provided under &#147;Commitments and contingencies&#148;
  on page 17 of Exhibit 99.7, Management&#146;s Discussion and Analysis, is
  incorporated by reference herein. </P>
<P align=center><B>CODE OF ETHICS</B></P>
<P align=justify>The disclosure provided under &#147;Code of Ethics&#148; on page 55 of
  Exhibit 99.5, Annual Information Form of the Company, is incorporated by
  reference herein.</P>
<P align=center><B>NYSE AMEX EQUITIES CORPORATE GOVERNANCE</B></P>
<P align=justify>The Company&#146;s common shares are listed for trading on the NYSE
  Amex Equities Exchange (&#147;NYSE Amex&#148;). Section 110 of the NYSE Amex company guide
  permits NYSE Amex to consider the laws, customs and practices of foreign issuers
  in relaxing certain NYSE Amex listing criteria, and to grant exemptions from
  NYSE Amex listing criteria based on these considerations. A company seeking
  relief under these provisions is required to provide written certification from
  independent local counsel that the non-complying practice is not prohibited by home country law. A
  description of the significant ways in which the Company&#146;s governance practices
  differ from those followed by domestic companies pursuant to NYSE Amex standards
  is contained on the Company&#146;s website at <u><font
color=#0000ff>www.tasekomines.com</font></u>.</P>
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<P align=center>- 3 -</P>
<P align=justify>Upon listing, the Company received an exemption from its quorum
  requirements for meetings of shareholders. Under the NYSE Amex listing
  standards, the quorum requirement is a minimum of one third of shareholders
  entitled to vote. The Company does not meet this requirement and has been
  granted relief from this listing standard.</P>
<P align=justify>The Company&#146;s common shares are listed for trading on the NYSE
  Amex Equities Exchange. Section 110 of the NYSE Amex company guide permits NYSE
  Amex to consider the laws, customs and practices of foreign issuers in relaxing
  certain NYSE Amex listing criteria, and to grant exemptions from NYSE Amex
  listing criteria based on these considerations. A company seeking relief under
  these provisions is required to provide written certification from independent
  local counsel that the non-complying practice is not prohibited by home country
  law.</P>
<P align=justify>The Company&#146;s governance practices also differ from those
  followed by U.S. domestic companies pursuant to NYSE Amex listing standards in
  the following manner:</P>
<P align=justify><I>Board Meetings</I></P>
<P align=justify>Section 802 (c) of the NYSE Amex Company Guide requires that
  the Board of Directors hold meetings on at least a quarterly basis. The Board of
  Directors of the Company is not required to meet on a quarterly basis under the
  laws of the Province of British Columbia.</P>
<P align=justify><I>Solicitation of Proxies</I></P>
<P align=justify>NYSE Amex requires the solicitation of proxies and delivery of
  proxy statements for all shareholder meetings, and requires that these proxies
  shall be solicited pursuant to a proxy statement that conforms to applicable SEC
  proxy rules. The Company is a foreign private issuer as defined in Rule 3b-4
  under the United States Securities Exchange Act of 1934, as amended (the
  &#147;Exchange Act&#148;), and the equity securities of the Company are accordingly exempt
  from the proxy rules set forth in Sections 14(a), 14(b), 14(c) and 14(f) of the
  Exchange Act. The Company solicits proxies in accordance with applicable rules
  and regulations in Canada.</P>
<P align=justify><I>Shareholders Approval for Dilutive Private Placement
  Financings</I></P>
<P align=justify>Section 713 of the NYSE Amex Company Guide requires that the
  Company obtain the approval of its shareholders for share issuances equal to 20
  percent or more of presently outstanding shares for a price which is less than
  the greater of book or market value of the shares. This requirement does not
  apply to public offerings. There is no such requirement under British Columbia
  law or under the Company&#146;s home stock exchange rules (Toronto Stock Exchange)
  unless the dilutive financing results in a change of control. The Company will
  seek a waiver from NYSE Amex&#146;s section 713 requirements should a dilutive
  private placement financing trigger the NYSE Amex shareholders&#146; approval
  requirement in circumstances where the same financing does not trigger such a
  requirement under British Columbia law or under the Company&#146;s home country stock
  exchange rules.</P>
<P align=center><B>UNDERTAKING </B></P>
<P align=justify>The Registrant undertakes to make available, in person or by
  telephone, representatives to respond to inquiries made by the Commission staff,
  and to furnish promptly, when requested to do so by the Commission staff, information relating to: the securities
  registered pursuant to Form 40-F; the securities in relation to which the
  obligation to file an annual report on Form 40-F arises; or transactions in said
  securities. </P>
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<P align=center>- 4 -</P>
<P align=center><B>CONSENT TO SERVICE OF PROCESS</B></P>
<P align=justify>The Company previously filed an Appointment of Agent for
  Service of Process and Undertaking on Form F-X signed by the Company and its
  agent for service of process with respect to the class of securities in relation
  to which the obligation to file this annual report arises. </P>
<P align=center><B>SIGNATURES</B></P>
<P align=justify>Pursuant to the requirements of the Exchange Act, the Company
  certifies that it meets all of the requirements for filing on Form 40-F and has
  duly caused this annual report to be signed on its behalf by the undersigned,
  thereunto duly authorized.
  <!--$$/page=-->
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="50%" align=left >Date: March 29, 2012. </TD>
    <TD align=left  colSpan=2><B>TASEKO MINES
      LIMITED</B> </TD>
  </TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="5%"  >&nbsp;</TD>
    <TD width="45%">&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="45%"><I>/s/ Peter Mitchell</I> </TD>
  </TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left width="45%">&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="5%"  >By: </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="45%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="45%">Peter Mitchell </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="45%"><B>Chief Financial Officer</B></TD>
  </TR></TABLE><BR>
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<P align=center><B>EXHIBIT INDEX</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center ><B>Exhibit</B> </TD>
    <TD align=left width="90%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=center ><B>Number</B> </TD>
    <TD align=center width="90%"><B>Exhibit Description</B> </TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="90%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee ><a href="exhibit99-1.htm">99.1 </a></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify><a href="exhibit99-1.htm">Certification of Chief Executive Officer pursuant to Rule
      13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the
  Sarbanes-Oxley Act of 2002 </a></P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="90%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee ><a href="exhibit99-2.htm">99.2 </a></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify><a href="exhibit99-2.htm">Certification of Chief Financial Officer pursuant to Rule
      13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the
      Sarbanes-Oxley Act of 2002 </a></P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="90%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee ><a href="exhibit99-3.htm">99.3 </a></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify><a href="exhibit99-3.htm">Certification of Chief Executive Officer pursuant to Rule
      13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted
      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 </a></P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="90%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee ><a href="exhibit99-4.htm">99.4 </a></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify><a href="exhibit99-4.htm">Certification of Chief Financial Officer pursuant to Rule
      13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted
      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 </a></P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="90%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee ><a href="exhibit99-5.htm">99.5 </a></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify><a href="exhibit99-5.htm">Annual Information Form of the Company for the year ended
      December 31, 2011 </a></P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="90%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee ><a href="exhibit99-6.htm">99.6 </a></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify><a href="exhibit99-6.htm">Audited consolidated balance sheets as at December 31,
      2011, December 31, 2010 and January 1, 2010 and the consolidated
      statements of comprehensive income, changes in equity, and cash flows for
      the years ended December 31, 2011 and December 31, 2010, including the
      notes thereto and report of the Company&#146;s independent registered public
      accounting firm thereon </a></P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="90%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee ><a href="exhibit99-7.htm">99.7 </a></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify><a href="exhibit99-7.htm">Amended management&#146;s discussion and analysis of financial
      condition and results of operations for the year ended December 31, 2011 </a></P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="90%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee ><a href="exhibit99-8.htm">99.8 </a></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify><a href="exhibit99-8.htm">Consent of KPMG LLP </a></P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="90%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee ><a href="exhibit99-9.htm">99.9 </a></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
      <P align=justify><a href="exhibit99-9.htm">Consent of Scott Jones, P. Eng. </a></P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="90%">
      <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee ><a href="exhibit99-10.htm">99.10 </a></TD>
    <TD align=left width="90%" bgColor=#eeeeee>
<P align=justify><a href="exhibit99-10.htm">Consent of Ronald G. Simpson, P. Geo</a></P></TD></TR></TABLE>
<BR>
<HR align=center width="100%" color=black noShade SIZE=5>

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</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exhibit99-1.htm
<DESCRIPTION>CERTIFICATION
<TEXT>
<HTML>
<HEAD>
   <TITLE>Taseko Mines Limited: Exhibit 99.1 - Filed by newsfilecorp.com</TITLE>
   <META name="HandheldFriendly" content="true">
</HEAD>

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

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

  <TR vAlign=bottom>
    <TD align=center><B>CERTIFICATION</B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>PURSUANT TO SECTION 302</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>OF THE SARBANES-OXLEY ACT OF 2002</B>
</TD></TR></TABLE>
<P align=justify>I, Russell E. Hallbauer, certify that:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(1) </TD>
    <TD>
      <P align=justify>I have reviewed this annual report on Form 40-F of Taseko
      Mines Limited;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(2) </TD>
    <TD>
      <P align=justify>Based on my knowledge, this report does not contain any
      untrue statement of a material fact or omit to state a material fact
      necessary to make the statements made, in light of the circumstances under
      which such statements were made, not misleading with respect to the period
      covered by this report;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(3) </TD>
    <TD>
      <P align=justify>Based on my knowledge, the financial statements, and
      other financial information included in this report, fairly present in all
      material respects the financial condition, results of operations and cash
      flows of the issuer as of, and for, the periods presented in this
      report;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(4) </TD>
    <TD>
      <P align=justify>The issuer&#146;s other certifying officer and I are
      responsible for establishing and maintaining disclosure controls and
      procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
      internal control over financial reporting (as defined in Exchange Act
      Rules 13a-15(f) and 15d-15(f)) for the issuer and
have:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>designed such disclosure controls and procedures, or
      caused such disclosure controls and procedures to be designed under our
      supervision, to ensure that material information relating to the issuer,
      including its consolidated subsidiaries, is made known to us by others
      within those entities, particularly during the period in which this report
      is being prepared;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(b) </TD>
    <TD>
      <P align=justify>designed such internal control over financial reporting,
      or caused such internal control over financial reporting to be designed
      under our supervision, to provide reasonable assurance regarding the
      reliability of financial reporting and the preparation of financial
      statements for external purposes in accordance with generally accepted
      accounting principles;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(c) </TD>
    <TD>
      <P align=justify>evaluated the effectiveness of the issuer&#146;s disclosure
      controls and procedures and presented in this report our conclusions about
      the effectiveness of the disclosure controls and procedures, as of the end
      of the period covered by this report based on such evaluation;
  and</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(d) </TD>
    <TD>
      <P align=justify>disclosed in this report any change in the issuer&#146;s
      internal control over financial reporting that occurred during the period
      covered by the annual report that has materially affected, or is
      reasonably likely to materially affect, the issuer&#146;s internal control over
      financial reporting; and</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(5) </TD>
    <TD colSpan=2>
      <P align=justify>The issuer&#146;s other certifying officer and I have
      disclosed, based on our most recent evaluation of internal control over
      financial reporting, to the issuer&#146;s auditors and the audit committee of
      the issuer&#146;s board of directors (or persons performing the equivalent
      functions):</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>all significant deficiencies and material weaknesses in
      the design or operation of internal control over financial reporting which
      are reasonably likely to adversely affect the issuer&#146;s ability to record,
      process, summarize and report financial information; and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(b) </TD>
    <TD>
      <P align=justify>any fraud, whether or not material, that involves
      management or other employees who have a significant role in the issuer&#146;s
      internal control over financial reporting.</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >Date: </TD>
    <TD align=left width="45%" >March 29, 2012 </TD>
    <TD align=left width="49%" >&nbsp;</TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="45%" >&nbsp;</TD>
    <TD align=left width="49%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >By: </TD>
    <TD align=left width="45%" >/s/ R. Hallbauer </TD>
    <TD align=left width="49%" >&nbsp;</TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="45%"
    >&nbsp;</TD>
    <TD align=left width="49%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Name: </TD>
    <TD align=left width="45%" >Russell E. Hallbauer </TD>
    <TD align=left width="49%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Title: </TD>
    <TD align=left width="45%" >Chief Executive Officer </TD>
    <TD align=left width="49%" >&nbsp;</TD></TR></TABLE><BR>
<HR align=center width="100%" color=black noShade SIZE=5>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>exhibit99-2.htm
<DESCRIPTION>CERTIFICATION
<TEXT>
<HTML>
<HEAD>
   <TITLE>Taseko Mines Limited: Exhibit 99.2 - Filed by newsfilecorp.com</TITLE>
   <META name="HandheldFriendly" content="true">
</HEAD>

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

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

  <TR vAlign=bottom>
    <TD align=center><B>CERTIFICATION</B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>PURSUANT TO SECTION 302</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>OF THE SARBANES-OXLEY ACT OF 2002</B>
</TD></TR></TABLE>
<P align=justify>I, Peter C. Mitchell, certify that:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(1) </TD>
    <TD>
      <P align=justify>I have reviewed this annual report on Form 40-F of Taseko
      Mines Limited;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(2) </TD>
    <TD>
      <P align=justify>Based on my knowledge, this report does not contain any
      untrue statement of a material fact or omit to state a material fact
      necessary to make the statements made, in light of the circumstances under
      which such statements were made, not misleading with respect to the period
      covered by this report;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(3) </TD>
    <TD>
      <P align=justify>Based on my knowledge, the financial statements, and
      other financial information included in this report, fairly present in all
      material respects the financial condition, results of operations and cash
      flows of the issuer as of, and for, the periods presented in this
      report;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(4) </TD>
    <TD>
      <P align=justify>The issuer&#146;s other certifying officer and I are
      responsible for establishing and maintaining disclosure controls and
      procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
      internal control over financial reporting (as defined in Exchange Act
      Rules 13a-15(f) and 15d-15(f)) for the issuer and
have:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>designed such disclosure controls and procedures, or
      caused such disclosure controls and procedures to be designed under our
      supervision, to ensure that material information relating to the issuer,
      including its consolidated subsidiaries, is made known to us by others
      within those entities, particularly during the period in which this report
      is being prepared;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(b) </TD>
    <TD>
      <P align=justify>designed such internal control over financial reporting,
      or caused such internal control over financial reporting to be designed
      under our supervision, to provide reasonable assurance regarding the
      reliability of financial reporting and the preparation of financial
      statements for external purposes in accordance with generally accepted
      accounting principles;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(c) </TD>
    <TD>
      <P align=justify>evaluated the effectiveness of the issuer&#146;s disclosure
      controls and procedures and presented in this report our conclusions about
      the effectiveness of the disclosure controls and procedures, as of the end
      of the period covered by this report based on such evaluation;
  and</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(d) </TD>
    <TD>
      <P align=justify>disclosed in this report any change in the issuer&#146;s
      internal control over financial reporting that occurred during the period
      covered by the annual report that has materially affected, or is
      reasonably likely to materially affect, the issuer&#146;s internal control over
      financial reporting; and</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(5) </TD>
    <TD colSpan=2>
      <P align=justify>The issuer&#146;s other certifying officer and I have
      disclosed, based on our most recent evaluation of internal control over
      financial reporting, to the issuer&#146;s auditors and the audit committee of
      the issuer&#146;s board of directors (or persons performing the equivalent
      functions):</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>all significant deficiencies and material weaknesses in
      the design or operation of internal control over financial reporting which
      are reasonably likely to adversely affect the issuer&#146;s ability to record,
      process, summarize and report financial information; and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(b) </TD>
    <TD>
      <P align=justify>any fraud, whether or not material, that involves
      management or other employees who have a significant role in the issuer&#146;s
      internal control over financial reporting.</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >Date: </TD>
    <TD align=left width="45%" >March 29, 2012 </TD>
    <TD align=left width="49%" >&nbsp;</TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="45%" >&nbsp;</TD>
    <TD align=left width="49%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >By: </TD>
    <TD align=left width="45%" >/s/ P. Mitchell </TD>
    <TD align=left width="49%" >&nbsp;</TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="45%"
    >&nbsp;</TD>
    <TD align=left width="49%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Name: </TD>
    <TD align=left width="45%" >Peter C. Mitchell </TD>
    <TD align=left width="49%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Title: </TD>
    <TD align=left width="45%" >Chief Financial Officer </TD>
    <TD align=left width="49%" >&nbsp;</TD></TR></TABLE><BR>
<HR align=center width="100%" color=black noShade SIZE=5>

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</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>4
<FILENAME>exhibit99-3.htm
<DESCRIPTION>CERTIFICATION
<TEXT>
<HTML>
<HEAD>
   <TITLE>Taseko Mines Limited: Exhibit 99.3 - Filed by newsfilecorp.com</TITLE>
   <META name="HandheldFriendly" content="true">
</HEAD>

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

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

  <TR vAlign=bottom>
    <TD align=center><B>CERTIFICATION</B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>PURSUANT TO</B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>18 U.S.C. SECTION 1350,</B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>AS ADOPTED PURSUANT TO</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</B>
  </TD></TR></TABLE>
<P align=justify>I, Russell E. Hallbauer, Chief Executive Officer of Taseko
Mines Limited (the &#147;Company&#148;), hereby certify pursuant to 18 U.S.C. Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002,
that, to the best of my knowledge:</P>
<P style="MARGIN-LEFT: 5%" align=justify>(1) The Annual Report on Form 40-F of
the Company for the fiscal year ended December 31, 2011 (the &#147;Annual Report&#148;)
fully complies with the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934, as amended; and </P>
<P style="MARGIN-LEFT: 5%" align=justify>(2) The information contained in the
Annual Report fairly presents, in all material respects, the financial condition
and results of operations of the Company.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="5%">By: </TD>
    <TD align=left width="43%">/s/ R. Hallbauer </TD></TR>
  <TR>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="43%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="5%">Name: </TD>
    <TD align=left width="43%">Russell E. Hallbauer </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="5%">Title: </TD>
    <TD align=left width="43%">Chief Executive Officer </TD></TR>
  <TR>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="5%">&nbsp;</TD>
    <TD align=left width="43%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="5%">Date: </TD>
    <TD align=left width="43%">March 29, 2012 </TD></TR></TABLE>
<P align=justify><I>This written statement is being furnished to the Securities
and Exchange Commission as an exhibit to the Company&#146;s Annual Report on Form
40-F. A signed original of this statement has been provided to the Company and
will be retained by the Company and furnished to the Securities and Exchange
Commission or its staff upon request. </I></P>
<P align=justify><I>This certification accompanies this Annual Report on Form
40-F pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not,
except to the extent required by such Act, be deemed filed by the Company for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the
&#147;Exchange Act&#148;). Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933, as amended, or the
Exchange Act, except to the extent that the Company specifically incorporates it
by reference.</I></P>
<HR align=center width="100%" color=black noShade SIZE=5>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.4
<SEQUENCE>5
<FILENAME>exhibit99-4.htm
<DESCRIPTION>CERTIFICATION
<TEXT>
<HTML>
<HEAD>
   <TITLE>Taseko Mines Limited: Exhibit 99.4 - Filed by newsfilecorp.com</TITLE>
   <META name="HandheldFriendly" content="true">
</HEAD>

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

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

  <TR vAlign=bottom>
    <TD align=center><B>CERTIFICATION</B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>PURSUANT TO</B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>18 U.S.C. SECTION 1350,</B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>AS ADOPTED PURSUANT TO</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</B>
  </TD></TR></TABLE>
<P align=justify>I, Peter C. Mitchell, Chief Financial Officer of Taseko Mines
Limited (the &#147;Company&#148;), hereby certify pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the
best of my knowledge:</P>
<P style="MARGIN-LEFT: 5%" align=justify>(1) The Annual Report on Form 40-F of
the Company for the fiscal year ended December 31, 2011 (the &#147;Annual Report&#148;)
fully complies with the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934, as amended; and </P>
<P style="MARGIN-LEFT: 5%" align=justify>(2) The information contained in the
Annual Report fairly presents, in all material respects, the financial condition
and results of operations of the Company.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD align=left width="5%" >By: </TD>
    <TD align=left width="43%">/s/ P. Mitchell </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="43%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD align=left width="5%" >Name: </TD>
    <TD align=left width="43%">Peter C. Mitchell </TD></TR>
  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD align=left width="5%" >Title: </TD>
    <TD align=left width="43%">Chief Financial Officer </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="43%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD align=left width="5%" >Date: </TD>
    <TD align=left width="43%">March 29, 2012 </TD></TR></TABLE>
<P align=justify><I>This written statement is being furnished to the Securities
and Exchange Commission as an exhibit to the Company&#146;s Annual Report on Form
40-F. A signed original of this statement has been provided to the Company and
will be retained by the Company and furnished to the Securities and Exchange
Commission or its staff upon request. </I></P>
<P align=justify><I>This certification accompanies this Annual Report on Form
40-F pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not,
except to the extent required by such Act, be deemed filed by the Company for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the
&#147;Exchange Act&#148;). Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933, as amended, or the
Exchange Act, except to the extent that the Company specifically incorporates it
by reference.</I></P>
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<DOCUMENT>
<TYPE>EX-99.5
<SEQUENCE>6
<FILENAME>exhibit99-5.htm
<DESCRIPTION>ANNUAL INFORMATION FORM
<TEXT>
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   <TITLE>Taseko Mines Limited: Exhibit 99.5 - Filed by newsfilecorp.com</TITLE>
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<P align=center><IMG
src="exhibit99-5x1x1.jpg"
border=0></P> <BR>
<P align=center><B>FOR THE YEAR ENDED DECEMBER 31, 2011</B></P>
<P align=center><B>AS AT MARCH 29, 2012</B></P>
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<P align=justify><B><FONT color=#42b1f4><FONT color=#41c2f3><FONT
color=#34bae7><FONT color=#0099FF size="3">TABLE OF
CONTENTS</FONT></FONT></FONT></FONT></B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 9pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><a href="#page_2">TABLE OF CONTENTS </a></TD>
    <TD align=right width="5%" bgColor=#eeeeee><a href="#page_2">1 </a></TD>
    <TD align=left width="5%" bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="42%" bgColor=#eeeeee><a href="#page_52">LEGAL PROCEEDINGS AND
      REGULATORY ACTIONS </a></TD>
    <TD align=right width="5%" bgColor=#eeeeee><a href="#page_52"> 51</a></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_3">INTRODUCTORY NOTES </a></TD>
    <TD align=right width="5%"><a href="#page_3">2 </a></TD>
    <TD align=left width="5%">&nbsp;</TD>
    <TD align=left width="42%"><a href="#page_52">INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL
      TRANSACTIONS </a></TD>
    <TD align=right width="5%"><a href="#page_52">51</a></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><a href="#page_3">Forward-Looking Statements </a></TD>
    <TD align=right width="5%" bgColor=#eeeeee><a href="#page_3">2 </a></TD>
    <TD align=left width="5%" bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="42%" bgColor=#eeeeee><a href="#page_53">TRANSFER AGENT AND REGISTRAR</a></TD>
    <TD align=right width="5%" bgColor=#eeeeee><a href="#page_53"> 52</a></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_4">Documents Incorporated by Reference </a></TD>
    <TD align=right width="5%"><a href="#page_4">3 </a></TD>
    <TD align=left width="5%">&nbsp;</TD>
    <TD align=left width="42%"><a href="#page_53">MATERIAL CONTRACTS </a></TD>
    <TD align=right width="5%"><a href="#page_53">52</a></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><a href="#page_4">Currency and Metric Equivalents </a></TD>
    <TD align=right width="5%" bgColor=#eeeeee><a href="#page_4">3 </a></TD>
    <TD align=left width="5%" bgColor=#eeeeee>&nbsp;</TD>
    <TD align=left width="42%" bgColor=#eeeeee><a href="#page_54">INTERESTS OF EXPERTS </a></TD>
    <TD align=right width="5%" bgColor=#eeeeee><a href="#page_54">53</a></TD></TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_6">Resource Category (Classifications) Used in this AIF </a></TD>
    <TD align=right width="5%"><a href="#page_6"> 5</a></TD>
    <TD align=left width="5%">&nbsp;</TD>
    <TD align=left width="42%"><a href="#page_55">ADDITIONAL INFORMATION </a></TD>
    <TD align=right width="5%"><a href="#page_55">54</a></TD></TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><a href="#page_7">CAUTIONARY NOTE TO UNITED STATES INVESTORS CONCERNING ESTIMATES OF RESERVES AND MEASURED, INDICATED AND INFERRED RESOURCES</a></TD>
    <TD align=right valign="bottom"><a href="#page_7">6</a></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><a href="#page_55">AUDIT AND RISK COMMITTEE </a></TD>
    <TD align=right><a href="#page_55">54</a></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#FFFFFF><a href="#page_7">CORPORATE STRUCTURE </a></TD>
    <TD align=right width="5%" bgColor=#FFFFFF><a href="#page_7">6</a></TD>
    <TD align=left width="5%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="42%" bgColor=#FFFFFF><a href="#page_55">Composition of Audit and Risk Committee </a></TD>
    <TD align=right width="5%" bgColor=#FFFFFF><a href="#page_55">54</a></TD></TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><a href="#page_8">GENERAL DEVELOPMENT OF THE BUSINESS </a></TD>
    <TD width="5%" align=right><a href="#page_8">7</a></TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD width="42%" align=left><a href="#page_55">Relevant Education and
    Experience </a></TD>
    <TD width="5%" align=right><a href="#page_55">54</a></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#FFFFFF><a href="#page_8">Gibraltar Mine</a></TD>
    <TD align=right width="5%" bgColor=#FFFFFF><a href="#page_8"> 7 </a></TD>
    <TD align=left width="5%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="42%" bgColor=#FFFFFF><a href="#page_56">Code of Ethics </a></TD>
    <TD align=right width="5%" bgColor=#FFFFFF><a href="#page_56">55</a></TD></TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><a href="#page_8">New Prosperity </a></TD>
    <TD width="5%" align=right><a href="#page_8">7</a></TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD width="42%" align=left><a href="#page_56">Principal Accountant Fees and
    Services </a></TD>
    <TD width="5%" align=right><a href="#page_56">55</a></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#FFFFFF><a href="#page_9">Aley Project </a></TD>
    <TD align=right width="5%" bgColor=#FFFFFF><a href="#page_9">8</a></TD>
    <TD align=left width="5%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="42%" bgColor=#FFFFFF><a href="#page_56">Pre-Approval Policies and Procedures </a></TD>
    <TD align=right width="5%" bgColor=#FFFFFF><a href="#page_56">55</a></TD></TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><a href="#page_9">Corporate </a></TD>
    <TD width="5%" align=right><a href="#page_9">8</a></TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD width="42%" align=left>&nbsp;</TD>
    <TD width="5%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#FFFFFF><a href="#page_10">DESCRIPTION OF BUSINESS </a></TD>
    <TD align=right width="5%" bgColor=#FFFFFF><a href="#page_10">9</a></TD>
    <TD align=left width="5%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="42%" bgColor=#FFFFFF></TD>
    <TD align=right width="5%" bgColor=#FFFFFF>&nbsp;</TD></TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><a href="#page_12">Gibraltar Mine </a></TD>
    <TD width="5%" align=right><a href="#page_12">11</a></TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD width="42%" align=left><b><font color=#0099FF size="3">FIGURES </font></b></TD>
  <TD width="5%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#FFFFFF><a href="#page_21">New Prosperity Project </a></TD>
    <TD align=right width="5%" bgColor=#FFFFFF><a href="#page_21">20</a></TD>
    <TD align=left width="5%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="42%" bgColor=#FFFFFF><a href="#page_12">FIGURE 1: LOCATION OF THE
    TASEKO&#146;S PROPERTIES </a></TD>
    <TD align=right width="5%" bgColor=#FFFFFF><a href="#page_12">11</a> </TD></TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><a href="#page_27">Aley Project </a></TD>
    <TD width="5%" align=right><a href="#page_27">26</a></TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD width="42%" align=left>&nbsp;</TD>
  <TD width="5%" align=right>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#FFFFFF><a href="#page_30">Harmony Project </a></TD>
    <TD align=right width="5%" bgColor=#FFFFFF><a href="#page_30">29</a></TD>
    <TD align=left width="5%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="42%" bgColor=#FFFFFF><b><font color=#0099FF size="3">TABLES </font></b></TD>
    <TD align=right width="5%" bgColor=#FFFFFF><a href="#page_13">12</a></TD>
  </TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><a href="#page_32">RISK FACTORS </a></TD>
    <TD width="5%" align=right><a href="#page_32">31</a></TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD width="42%" align=left><a href="#page_13">Table 1: Mineral Tenures &#150;
    Gibraltar Mine </a></TD>
    <TD width="5%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#FFFFFF><a href="#page_38">DIVIDENDS </a></TD>
    <TD align=right width="5%" bgColor=#FFFFFF><a href="#page_38">37</a></TD>
    <TD align=left width="5%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="42%" bgColor=#FFFFFF><a href="#page_18">Table 2: Gibraltar Mine Mineral Reserves at
    0.20% Copper Cut-off </a></TD>
    <TD align=right width="5%" bgColor=#FFFFFF><a href="#page_18">17</a> </TD></TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><a href="#page_38">DESCRIPTION OF CAPITAL STRUCTURE </a></TD>
    <TD width="5%" align=right><a href="#page_38">37</a></TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD width="42%" align=left><a href="#page_18">Table 3: Gibraltar Mine Mineral
    Resources at0.20% Copper Cut-off </a></TD>
  <TD width="5%" align=right><a href="#page_18">17</a> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#FFFFFF><a href="#page_38">Share Capital </a></TD>
    <TD align=right width="5%" bgColor=#FFFFFF><a href="#page_38">37</a></TD>
    <TD align=left width="5%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="42%" bgColor=#FFFFFF><a href="#page_18">Table 4: Gibraltar Mine &#150; Oxide Mineral
    Reserves at 0.10% ASCu Cut-off </a></TD>
    <TD align=right width="5%" bgColor=#FFFFFF><a href="#page_18">17</a></TD></TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><a href="#page_39">Senior Notes </a></TD>
    <TD width="5%" align=right><a href="#page_39">38</a></TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD width="42%" align=left><a href="#page_21">Table 5: Gibraltar Production (100% basis)</a></TD>
    <TD width="5%" align=right><a href="#page_21">20</a></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#FFFFFF><a href="#page_39">Ratings </a></TD>
    <TD align=right width="5%" bgColor=#FFFFFF><a href="#page_39">38</a></TD>
    <TD align=left width="5%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="42%" bgColor=#FFFFFF><a href="#page_25">Table 6: New Prosperity Mineral
    Reserves at CDN$5.50 NSR/t Pit-Rim Cut-off </a></TD>
    <TD align=right width="5%" bgColor=#FFFFFF><a href="#page_25">24</a></TD></TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><a href="#page_40">MARKET FOR SECURITIES </a></TD>
    <TD width="5%" align=right><a href="#page_40">39</a></TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD width="42%" align=left><a href="#page_25">Table 7: New Prosperity Mineral Resources              at 0.14% Copper Cut-off </a></TD>
    <TD width="5%" align=right><a href="#page_25">24</a></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#FFFFFF><a href="#page_40">DIRECTORS AND OFFICERS </a></TD>
    <TD align=right width="5%" bgColor=#FFFFFF><a href="#page_40">39</a></TD>
    <TD align=left width="5%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="42%" bgColor=#FFFFFF><a href="#page_30">Table 8: Aley Mineral Resources as at March 28,
    2012 </a></TD>
    <TD align=right width="5%" bgColor=#FFFFFF><a href="#page_30">29</a></TD></TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><a href="#page_42">Committees of the Board of Directors </a></TD>
    <TD width="5%" align=right><a href="#page_42">41</a></TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD width="42%" align=left>&nbsp;</TD>
    <TD width="5%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#FFFFFF><a href="#page_42">Principal Occupations and Other Information    </a></TD>
    <TD align=right width="5%" bgColor=#FFFFFF><a href="#page_42">41</a></TD>
    <TD align=left width="5%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="42%" bgColor=#FFFFFF></TD>
    <TD align=right width="5%" bgColor=#FFFFFF>&nbsp;</TD></TR>
  <TR vAlign=top bgcolor="#EEEEEE">
    <TD align=left><a href="#page_52">Cease Trade Orders, Bankruptcies, Penalties or Sanctions</a></TD>
    <TD width="5%" align=right><a href="#page_52">51</a></TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD width="42%" align=left><font color="#0099FF" size="3"><b>APPENDIX A</b></font></TD>
    <TD width="5%" align=right>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#FFFFFF><a href="#page_52">Potential Conflicts of Interest </a></TD>
    <TD align=right width="5%" bgColor=#FFFFFF><a href="#page_52"> 51</a></TD>
    <TD align=left width="5%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="42%" bgColor=#FFFFFF></TD>
    <TD align=right width="5%" bgColor=#FFFFFF>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#EEEEEE" bgColor=#EEEEEE>&nbsp;</TD>
    <TD align=right bordercolor="#EEEEEE" bgColor=#EEEEEE>&nbsp;</TD>
    <TD align=left bordercolor="#EEEEEE" bgColor=#EEEEEE>&nbsp;</TD>
    <TD align=left bordercolor="#EEEEEE" bgColor=#EEEEEE><a href="#page_57">Audit and Risk Committee Charter</a></TD>
    <TD align=right bordercolor="#EEEEEE" bgColor=#EEEEEE>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
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<P align=center>- 2 -</P>
<P align=justify><B><FONT color=#0099FF size="3">INTRODUCTORY NOTES </FONT></B></P>
<P align=justify><B>Forward-Looking Statements</B></P>
<P align=justify>This Annual Information Form (&#147;AIF&#148;), 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>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 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>
  <P>delays or inability to successfully complete the environmental assessment
  review process at the New Prosperity project; </P>
  <LI>
  <P>the potential for increase in the cash cost of production; </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; and </P>
  <LI>
  <P>inability to attract and retain key personnel. </P></LI></UL>
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<P align=center>- 3 -</P>
<P align=justify>Such information is included, among other places, in the AIF
under the heading &#147;Description of Business&#148; and in the Management&#146;s Discussion
and Analysis for the year ended December 31, 2011.</P>
<P align=justify>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 Annual Information
Form. See &#147;Risk Factors&#148; for a more detailed discussion of these risks.</P>
<P align=justify>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 Annual Information Form 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 Annual Information Form to conform such statements to actual
results or to changes in the Company&#146;s expectations except as otherwise required
by applicable law.</P>
<P align=justify><B>Documents Incorporated by Reference</B></P>
<P align=justify>Incorporated by reference into this AIF are the audited
consolidated financial statements and Management&#146;s Discussion and Analysis for
Taseko Mines Limited (the &#147;Company&#148; or &#147;Taseko&#148;) for the year ended December 31,
2011 together with the auditor&#146;s report thereon. The financial statements are
available for review on the SEDAR website located at <U><font color="#0099FF">www.sedar.com</font></U>. All
financial information in this Annual Information Form is prepared in accordance
with International Financial Reporting Standards (&#147;IFRS&#148;) using Canadian
dollars.</P>
<P align=justify><B>Currency and Metric Equivalents</B></P>
<P align=justify>The Company&#146;s accounts are maintained in Canadian dollars and
all dollar amounts herein are expressed in Canadian dollars unless otherwise
indicated.</P>
<P align=justify>The following factors for converting Imperial measurements into
metric equivalents are provided:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B><U>To convert from Imperial</U></B> </TD>
    <TD align=left width="33%"><B><U>To metric</U></B> </TD>
    <TD align=left width="33%"><B><U>Multiply by</U></B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="33%">&nbsp; </TD>
    <TD width="33%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>acres </TD>
    <TD align=left width="33%" bgColor=#e6efff>hectares </TD>
    <TD align=left width="33%" bgColor=#e6efff>0.405 </TD></TR>
  <TR vAlign=top>
    <TD align=left>feet </TD>
    <TD align=left width="33%">metres </TD>
    <TD align=left width="33%">0.305 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>miles </TD>
    <TD align=left width="33%" bgColor=#e6efff>kilometres </TD>
    <TD align=left width="33%" bgColor=#e6efff>1.609 </TD></TR>
  <TR vAlign=top>
    <TD align=left>tons (2000 pounds) </TD>
    <TD align=left width="33%">tonnes </TD>
    <TD align=left width="33%">0.907 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>ounces (troy)/ton </TD>
    <TD align=left width="33%" bgColor=#e6efff>grams/tonne </TD>
    <TD align=left width="33%" bgColor=#e6efff>34.286 </TD></TR></TABLE><BR>
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<P align=center>- 4 -</P>
<P align=justify>In this AIF the following capitalized terms have the defined
meanings set forth below:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>NYSE Amex</B> </TD>
    <TD align=left width="75%">
      <P align=justify>The NYSE Amex Equities, formerly known as the American
      Stock Exchange, being one of the two stock exchanges (together with the
      TSX) on which the Common Shares are listed. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="75%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>BQ</B> </TD>
    <TD align=left width="75%">
      <P align=justify>A letter name specifying the dimensions of bits, core
      barrels, and drill rods in the B-size and Q-group wireline diamond
      drilling system having a core diameter of 47.6 mm and a hole diameter of
      59.9mm. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="75%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Common Shares</B> </TD>
    <TD align=left width="75%">
      <P align=justify>The Company&#146;s common shares without par value, being the
      only class or kind of the Company&#146;s authorized capital. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="75%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Company</B> </TD>
    <TD align=left width="75%">
      <P align=justify>Taseko Mines Limited, including its subsidiaries, unless
      the context requires otherwise. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="75%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Carbonatite</B> <B>deposit</B> </TD>
    <TD align=left width="75%">
      <P align=justify>Carbonatites deposits are igneous rocks largely
      consisting of the carbonate minerals calcite and dolomite which contain
      the niobium mineral pyrochlore, rare earth minerals or copper sulphide
      minerals. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="75%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Epithermal deposit</B> </TD>
    <TD align=left width="75%">
      <P align=justify>A mineral deposit formed at low temperature (50-200&#176;C),
      usually within one kilometre of the earth&#146;s surface, often as structurally
      controlled veins. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="75%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Flotation</B> </TD>
    <TD align=left width="75%">
      <P align=justify>Flotation is a method of mineral separation whereby after
      crushing and grinding ore, froth created in a slurry by a variety of
      reagents, causes some finely crushed minerals to float to the surface
      where they are skimmed off. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="75%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>HQ</B> </TD>
    <TD align=left width="75%">
      <P align=justify>A letter name specifying the dimensions of bits, core
      barrels, and drill rods in the H-size and Q-group wireline diamond
      drilling system having a core diameter of 63.5 mm and a hole diameter of
      96 mm. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="75%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>NSR</B> </TD>
    <TD align=left width="75%">
      <P align=justify>Net smelter return, a general proxy for the gross value
      of metals derived from concentrates delivered to a smelter for refining.
      </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="75%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Induced</B> <B>Polarization <BR>(&#147;IP&#148;)</B> <B>Survey</B>
    </TD>
    <TD align=left width="75%">
      <P align=justify>A geophysical survey used to identify a feature that
      appears to be different from the typical or background survey results when
      tested for levels of electro-conductivity. IP detects both chargeable,
      pyrite- bearing rock and non-conductive rock that has high content of
      quartz. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="75%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Mineral Deposit</B> </TD>
    <TD align=left width="75%">
      <P align=justify>A deposit of mineralization, which may or may not be ore.
      </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="75%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Mineral Symbols</B> </TD>
    <TD align=left width="75%">
      <P align=justify>Ag &#150; silver; Au &#150; gold; Cu &#150; copper; Pb &#150; lead; Zn &#150;
      Zinc; Mo &#150; molybdenum; Nb &#150; niobium. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="75%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>NQ</B> </TD>
    <TD align=left width="75%">
      <P align=justify>A letter name specifying the dimensions of bits, core
      barrels, and drill rods in the N-size and Q-group wireline diamond
      drilling system having a core diameter of 47.6 mm and a hole diameter of
      75.7 mm. </P></TD></TR></TABLE><BR>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Porphyry deposit</B> </TD>
    <TD align=left width="75%">
      <P align=justify>A type of mineral deposit in which ore minerals are
      widely disseminated, generally of low grade but large tonnage. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="75%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Solvent Extraction/</B> <BR><B>Electrowinning</B>
      <B>(&#147;SX/EW&#148;)</B> </TD>
    <TD align=left width="75%">
      <P align=justify>Solvent extraction is the technique of transferring a
      solute from one solution to another; for example when copper oxide is
      dissolved into solution, copper becomes the solute. Electrowinning is the
      process in which an electric current flows between a pair of electrodes
      (anode &amp; cathode) in a solution containing metal ions (electrolyte).
      Metal is deposited on the cathode in accordance with the metal&#146;s ability
      to gain or lose electrons. Since ion deposition is selective, the cathode
      product is generally high grade and requires little further refining.
    </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="75%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>TSX</B> </TD>
    <TD align=left width="75%">
      <P align=justify>The Toronto Stock Exchange, one of the two stock
      exchanges on which the Common Shares are listed, along with NYSE Amex.
    </P></TD></TR></TABLE>
<P align=justify><B>Resource Category (Classifications) Used in this AIF
</B></P>
<P align=justify>The discussion of mineral deposit classifications in this AIF
adheres to the resource/reserve definitions and classification criteria
developed by the Canadian Institute of Mining and Metallurgy in 2005. Estimated
mineral resources fall into two broad categories dependent on whether the
economic viability of them has been established and these are namely &#147;resources&#148;
(economic viability not established) and ore &#147;reserves&#148; (viable economic
production is feasible). Resources are sub-divided into categories depending on
the confidence level of the estimate based on level of detail of sampling and
geological understanding of the deposit. The categories, from lowest confidence
to highest confidence, are inferred resource, indicated resource and measured
resource. Reserves are similarly sub-divided by order of confidence into
probable (lowest) and proven (highest). These classifications can be more
particularly described as follows:</P>
<P align=justify>A &#147;<B>Mineral Resource</B>&#148; is a concentration or occurrence of
diamonds, natural solid inorganic material, or natural solid fossilized organic
material including base and precious metals, coal, and industrial minerals in or
on the Earth&#146;s crust in such form and quantity and of such a grade or quality
that it has reasonable prospects for economic extraction. The location,
quantity, grade, geological characteristics and continuity of a Mineral Resource
are known, estimated or interpreted from specific geological evidence and
knowledge. </P>
<P align=justify>An &#147;<B>Inferred Mineral Resource</B>&#148; is that part of a Mineral
Resource for which quantity and grade or quality can be estimated on the basis
of geological evidence and limited sampling and reasonably assumed, but not
verified, geological and grade continuity. The estimate is based on limited
information and sampling gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes. </P>
<P align=justify>An &#147;<B>Indicated Mineral Resource</B>&#148; is that part of a
Mineral Resource for which quantity, grade or quality, densities, shape and
physical characteristics can be estimated with a level of confidence sufficient
to allow the appropriate application of technical and economic parameters, to
support mine planning and evaluation of the economic viability of the deposit.
The estimate is based on detailed and reliable exploration and testing
information gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes that are spaced closely
enough for geological and grade continuity to be reasonably assumed. </P>
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<P align=justify>A &#147;<B>Measured Mineral Resource</B>&#148; is that part of a Mineral
Resource for which quantity, grade or quality, densities, shape, and physical
characteristics are so well established that they can be estimated with
confidence sufficient to allow the appropriate application of technical and
economic parameters, to support production planning and evaluation of the
economic viability of the deposit. The estimate is based on detailed and
reliable exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits, workings
and drill holes that are spaced closely enough to confirm both geological and
grade continuity. </P>
<P align=justify>A &#147;<B>Mineral Reserve</B>&#148; is the economically mineable part of
a Measured or Indicated Mineral Resource demonstrated by at least a Preliminary
Feasibility Study. This Study must include adequate information on mining,
processing, metallurgical, and economic and other relevant factors that
demonstrate, at the time of reporting, that economic extraction can be
justified. A Mineral Reserve includes diluting materials and allowances for
losses that may occur when the material is mined. </P>
<P align=justify>A &#147;<B>Probable Mineral Reserve</B>&#148; is the economically
mineable part of an Indicated and, in some circumstances, a Measured Mineral
Resource demonstrated by at least a Preliminary Feasibility Study. This Study
must include adequate information on mining, processing, metallurgical,
economic, and other relevant factors that demonstrate, at the time of reporting,
that economic extraction can be justified.</P>
<P align=justify>A &#147;<B>Proven Mineral Reserve</B>&#148; is the economically mineable
part of a Measured Mineral Resource demonstrated by at least a Preliminary
Feasibility Study. This Study must include adequate information on mining,
processing, metallurgical, economic, and other relevant factors that
demonstrate, at the time of reporting, that economic extraction is justified.
The US Securities and Exchange Commission require permits in hand or their
issuance imminent to classify mineralized material as reserves.</P>
<P align=justify><b><font color="#0099FF">CAUTIONARY NOTE TO UNITED STATES INVESTORS CONCERNING ESTIMATES OF RESERVES AND MEASURED, INDICATED AND INFERRED RESOURCES</font></b></P>
<P align=justify>The disclosure in this AIF, including the documents incorporated by reference herein, uses terms that comply with reporting standards in Canada and certain estimates are made in accordance with Canadian National Instrument 43-101 <i>Standards of Disclosure for Mineral Projects</i> (&ldquo;NI 43-101&rdquo;).  NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all reserve and resource estimates contained in or incorporated by reference in this AIF have been prepared in accordance with NI 43-101.  These standards differ significantly from the requirements of the SEC, and reserve and resource information contained herein and incorporated by reference herein may not be comparable to similar information disclosed by U.S. companies. </P>
<P align=justify>This AIF includes mineral reserve estimates that have been calculated in accordance with NI 43-101, as required by Canadian securities regulatory authorities. For United States reporting purposes, SEC Industry Guide 7 (under the United States Securities Exchange Act of 1934 (the &ldquo;Exchange Act&rdquo;)), 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 &quot;reserve&quot; 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, certain mineral reserve estimates contained in this AIF may not qualify as &ldquo;reserves&rdquo; under SEC standards, unless expressly stated to so qualify.</P>
<P align=justify>In addition, this AIF uses the terms &ldquo;measured mineral resources&rdquo;, &ldquo;indicated mineral resources&rdquo; and &ldquo;inferred mineral resources&rdquo; to comply with the reporting standards in Canada.  We advise investors that while those terms are recognized and required by Canadian regulations, the SEC does not recognize them.  Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves.  These terms have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. </P>
<P align=justify>Further, &ldquo;inferred resources&rdquo; 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 &ldquo;inferred mineral resources&rdquo; cannot form the basis of feasibility or other economic studies. </P>
<P align=justify>It cannot be assumed that all or any part of &ldquo;measured mineral resources&rdquo;, &ldquo;indicated mineral resources&rdquo;, or &ldquo;inferred mineral resources&rdquo; will ever be upgraded to a higher category.  Investors are cautioned not to assume that any part of the reported &ldquo;measured mineral resources&rdquo;, &ldquo;indicated mineral resources&rdquo;, or &ldquo;inferred mineral resources&rdquo; in this AIF is economically or legally mineable. </P>
<P align=justify>In addition, disclosure of &ldquo;contained ounces&rdquo; in respect of resources that do not qualify as reserves is permitted disclosure under Canadian regulations; however, the SEC only permits issuers to report reserves in ounces and requires other mineralized material to be reported as in place tonnage and grade without reference to unit measures. </P>
<P align=justify>For the above reasons, information contained in this AIF and the documents incorporated by reference herein containing descriptions of our mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder. </P>
<P align=justify><B><FONT color=#0099FF size="3">CORPORATE STRUCTURE</FONT></B></P>
<P align=justify>Taseko Mines Limited was incorporated on April 15, 1966,
pursuant to the <I>Company Act </I>of the Province of British Columbia. This
corporate legislation was superseded in 2004 by the <I>British Columbia Business
Corporations </I>Act which is now the corporate law statute that governs us<I>.
</I>Our registered office is located at Suite 1500, 1055 West Georgia,
Vancouver, British Columbia, V6E 4N7, and our operational head office is located
at Suite 1500, 1040 West Georgia Street, Vancouver, British Columbia, V6E
4H8.</P>
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<P align=justify>The Company has one active material wholly-owned subsidiary,
Gibraltar Mines Ltd., a second active but not yet material subsidiary, Aley
Corporation, and two wholly-owned non-material, inactive subsidiaries, 688888 BC
Ltd. and Taseko Acquisitionsub Ltd. On March 31, 2010, we established a joint
venture with Cariboo Copper Corp. (&#147;Cariboo&#148;) over the Gibraltar mine, whereby
Cariboo acquired a 25% interest in the Gibraltar mine and we retained a 75%
interest.</P>
<P align=justify><B><FONT color=#0099FF size="3">GENERAL DEVELOPMENT OF THE BUSINESS
</FONT></B></P>
<P align=justify><B>Gibraltar Mine</B></P>
<P align=justify>Our principal business activity for the past three years has
been the operating and expanding the capacity of the Gibraltar mine which
constitutes the majority of our assets and activity. Over this period, we
expanded the ore concentrator and made other production improvements at the
Gibraltar mine. Construction of the Phase 1 mill expansion was completed in
February 2008. The majority of the construction schedule of a Phase 2 expansion
program, designed to increase concentrator throughput from 46,000 tpd to 55,000
tpd, was completed in 2010, as well as installation of the in-pit crusher and
conveyor. The semi-autogenous grinding (&#147;SAG&#148;) mill direct feed system was
completed in May 2011 which eliminated the secondary crusher and fine ore
delivery system bottleneck. The tie-in has allowed Gibraltar to move towards
optimum mill throughput rates and mitigated throughput issues experienced
historically in the winter months. In 2011, we continued the expansion with
Gibraltar Development Plan 3 (GDP3). GDP3 includes the construction of a new
concentrator to complement the existing 55,000 tpd facility, increasing annual
production capacity to over 180 million pounds of copper. A new molybdenum
recovery facility is also planned to increase annual molybdenum production to
over two million pounds. On March 31,2010, the Gibraltar mine was contributed
into a joint venture arrangement with Cariboo as discussed further in this
AIF.</P>
<P align=justify><B>New Prosperity</B></P>
<P align=justify>Over the past three years, we also continued to advance the
Prosperity project through the provincial and federal environmental assessment
processes. On January 14, 2010, the Company received the environmental
assessment certificate from the British Columbia Provincial Ministry of
Environment. On November 2, 2010, we were advised that the federal government
would not proceed with permitting on the Prosperity project as proposed. We have
revised our plans for the project and have developed a new design proposal which
adds construction costs and life of mine operating expenditures of approximately
$300 million to the original design. The new plan responds to concerns
identified during the federal review process and in February 2011, we submitted
a new project description to the Federal Government. The Federal Government
accepted the project description for New Prosperity during the third quarter
2011.</P>
<P align=justify>On November 7, 2011, the Company was advised that a &#145;Notice of
Commencement&#146; had been posted by the Canadian Environmental Assessment Agency
(&#147;CEAA&#148;) related to the New Prosperity project. The Notice of Commencement
confirmed that the project description had met all criteria required for an
environmental assessment and that a panel review would be conducted by the
Federal Review Agency. The Minister of the Environment indicated that CEAA will
complete this review in not more than 12 months and that CEAA would use
information gathered in the previous environmental assessment. </P>
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<P align=justify>Subsequent to the Notice of Commencement from CEAA in November
2011, the Company reported that it had been unlawfully obstructed from
conducting work on the New Prosperity site. Court proceedings followed in
December 2011 where the our work permits were suspended for 90 days in order to
allow the courts to hear a provincial judicial review regarding the adequacy of
consultation by the BC Government prior to providing the Company with the
necessary work permits. On February 27, 2012, we reported that the suspension
order has been vacated by the court. On February 28, 2012, we commenced a
reduced scope of work that will be undertaken for the sole purposes of obtaining
information required for the federal environmental assessment of the proposed
New Prosperity project. On this basis, the parties have agreed not to further
pursue existing legal actions.</P>
<P align=justify>The environmental assessment announced by CEAA remains in
process under the timeline identified in their November 7, 2011 press release.
The public comment period on the draft terms of reference and environmental
impact statement commenced on January 23, 2012 and was completed on February 22,
2012. On March 16, 2012, the EIS guidelines were finalized by the Minister of the
Environment and issued to Taseko. Issuance of the terms of reference for the
review panel is anticipated in April.</P>
<P align=justify><B>Aley Project</B></P>
<P align=justify>In 2010, we completed a successful exploration program at the
Aley niobium project. The program consisted of geological mapping and diamond
drilling in 23 holes, intersecting excellent grades of niobium mineralization
across an area measuring 900 metres east-west and 350 metres north-south.
Mineralized intercepts range up to 200 metres in length and were continuous and
close to the surface.</P>
<P align=justify>We announced a mineral resource estimate for the Aley project
in September 2011. The in-pit Inferred Resource estimate was based on assay
results from the central zone obtained through to July 31, 2011 and totaled 159
million tonnes grading 0.43% Nb2O5 using a base case cut-off of 0.2% Nb2O5.</P>
<P align=justify>The 2011 exploration program included a total of 17,100 metres
of additional drilling in 70 holes in the central zone. This drilling was
targeted to provide sufficient infill drill density to achieve a measured and
indicated status for the resource and to investigate those areas in which the
resource is open to expansion.</P>
<P align=justify>We announced an updated mineral resource estimate for the Aley
project on March 28, 2012. The in-pit mineral resource estimate was based on
assay results from the central zone obtained through to March 1, 2012 and
totaled 286 million tonnes with an average grade of 0.37% Nb2O5 at a 0.2% Nb2O5
cutoff plus an additional 144 million tonnes of Inferred Resources with an
average grade of 0.32% Nb2O5.</P>
<P align=justify><B>Corporate</B></P>
<P align=justify>Consistent with the Company's strategy to manage its operating
margins effectively in volatile copper markets, we have entered into producer
put options for a portion of our targeted copper concentrate production during
2012. Currently we have 90% of our estimated share of 2012 Gibraltar production
(approximately 68.8 million pounds) hedged at $3.50 per pound. The puts were
partially financed by selling calls for an equivalent amount of copper, for a
net cost of US $0.10 per pound. </P>
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<P align=justify>The Gibraltar mine became an unincorporated (or &#145;contractual&#146;)
joint venture between the Company and Cariboo on March 31, 2010. The Company and
Cariboo hold 75% and 25% beneficial interests in the Joint Venture,
respectively. Under the Joint Venture Formation Agreement (&#147;JVFA&#148;), the Company
contributed to the Joint Venture certain assets and obligations pertaining to
the Gibraltar mine with a deemed net fair value of $747 million as of March 31,
2010, and Cariboo paid the Company US$187 million to obtain its 25% interest in
the Joint Venture. The Company continues to be the operator of the Gibraltar
mine under the Joint Venture Operating Agreement which is filed at
www.sedar.com. Cariboo is a Japanese consortium jointly owned by Sojitz
Corporation (50%), Dowa Metals &amp; Mining Co., Ltd. (25%) and Furukawa Co.,
Ltd. (25%). </P>
<P align=justify>Subsequent to the 2011 year end, the Company was advised by its
auditors, KPMG LLP, that the Public Company Accounting Oversight Board (PCAOB)
communicated to the auditors that based on their inspection results, that an
alternative accounting treatment might be more appropriate for the Company&#146;s
2010 joint venture transaction with Cariboo. Pursuant to that transaction,
Cariboo purchased a 25% joint venture interest in the Gibraltar mining
operations for $187 million. This transaction implied a total value for the
Gibraltar mining operations of approximately $748 million and in the Company&#146;s
annual reconciliation of accounts from Canadian generally accepted accounting
principles (GAAP) to United States GAAP, it recognized a gain calculated as 100%
of the difference between the Company&#146;s carrying cost of the Gibraltar mining
operations of $338 million and its implied value, for a reported gain of $360
million. Under US GAAP, 100% of the gain is recognized if the Company no longer
controls the joint venture. The accounting identified by the PCAOB is dependent
on whether a change of control of the Gibraltar mining operations occurred as a
result of the joint venture transaction. </P>
<P align=justify>Depending on the outcome of anticipated discussions with the
PCAOB and possibly the SEC, it is possible that the Company may have to reverse
the gain recognition for US GAAP purposes on 100% of the Gibraltar mining
operations and recognize a gain only on the 25% actually sold or potentially
recognize the gain as an equity transaction rather than through income. This
would necessitate related restatements to the carrying value of the Gibraltar
mining operations and the presentation of Cariboo&#146;s minority interest but would
have no effect on cash flows in 2010 or thereafter. Based on the review of
PCAOB&#146;s comments to date, the Company believes that the accounting approach
taken on the joint venture transaction and subsequent accounting were and
continue to be appropriate. </P>
<P align=justify>Aside from the above, the Company has not made any significant
acquisitions or dispositions since January 2006.</P>
<P align=justify>In April 2011, the Company completed a public offering of
US$200 million in senior notes due in 2019, bearing interest at an annual rate
of 7.75% .</P>
<P align=justify><B><FONT color=#0099FF size="3">DESCRIPTION OF BUSINESS</FONT></B></P>
<P align=justify>Taseko is a mining company that generally seeks to acquire,
develop, and operate large tonnage mineral deposits which, under conservative
metals forward price assumptions, are potentially capable of supporting a mine
for 10 years or longer. </P>
<P align=justify>Our business is focused on enhancing the production of copper
and molybdenum from the Gibraltar mine and on permitting the New Prosperity gold
and copper project (&#147;New Prosperity&#148;). A feasibility study has been completed
for the New Prosperity project, demonstrating mineral reserves as defined under
Canadian Securities regulations under NI 43-101. As no permits are in place, the New Prosperity project does not have reserves
under US SEC Guide 7 Standards. Both the Gibraltar mine and the New Prosperity
project are located in central British Columbia, Canada.</P>
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<P align=justify>We have two additional properties located in British Columbia:
Aley, an exploration niobium project, and Harmony,an exploration stage gold
property,. Aside from the joint venture established with Cariboo, Taseko and its
subsidiaries currently own all of their projects outright.</P>
<P align=justify>Taseko believes that there will continue to be demand for
copper, molybdenum, gold, and niobium for the foreseeable future, and there will
be a continuing need to replace depleted reserves from existing mines. Copper
prices have benefited from Chinese demand growth and declining inventory levels.
Additionally, the expectation of continued demand from Asia, global economic
growth, limited availability of scrap and constrained sources of new supply
should continue to lend support to prices. </P>
<P align=justify>Copper markets demonstrated strong pricing during 2011 with
significant volatility. This volatility was evidenced by record average prices
for 2011 overall combined with significant declines in the last four months of
2011. China and other emerging economies provided strong demand for copper in
2011, which supported copper prices through much of the year. Concerns regarding
European debt and a slowing economy in the United States and elsewhere provided
the impetus for significant volatility in financial and commodity markets
particularly in the latter part of 2011. While copper prices have recovered to
date in 2012, substantial risk in the form of volatility in financial and
commodity markets will likely continue. This volatility can cause rapid declines
in our copper prices which can have a significant effect on our
profitability.</P>
<P align=justify>Molybdenum price strength is anticipated due to demand
supported by global economic growth and new uses, as well as constrained new and
existing mine supply. Gold continues to benefit from price supportive
macroeconomic factors (quantitative easing, sovereign debt concerns, current
account deficits) as well as an expected decrease in global mine supply in years
to come. The demand for niobium is supported by overall growth in the global
steel industry and also from the increasing use of higher-quality steels. Based
on this expected demand profile, the Company sees value in projects for which
economics have not yet been determined.</P>
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<P align=center>- 11 -</P>
<P align=justify> Figure 1 below shows the location of the Company&rsquo;s four properties in British Columbia, Canada. </P>
<P align=center><IMG src="exhibit99-5x12x1.jpg" border=0> </P>
<P align=justify><B>Gibraltar Mine</B></P>
<P align=justify>Unless stated otherwise, information of a technical or
scientific nature related to the Gibraltar mine contained in this AIF (including
documents incorporated by reference herein) is summarized or extracted from a
technical report entitled &#147;Technical Report on the 357 Million Ton Increase in
Mineral Reserves at the Gibraltar Mine&#148; dated June 24, 2011 (the &#147;Gibraltar
Technical Report&#148;), prepared by Scott Jones, P. Eng. filed on Taseko&#146;s profile
at <U><font color="#0099FF">www.sedar.com</font> </U>and updated with production and development results
since that time. Mr. Jones is employed by the Company as Vice-President,
Engineering.</P>
<P align=justify><I>Property Description and Location</I></P>
<P align=justify>The Gibraltar mine site covers approximately 113 square
kilometres, located at latitude 52&#176;30&#146;N and longitude 122&#176;16&#146;W in the Granite
Mountain area, approximately 65 kilometres by road north of the City of Williams Lake in south-central British
Columbia, Canada. The Gibraltar mine property consists of 260 tenures held as
summarized in Table 1 below.  </P>
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<P align=center>- 12 -</P>
<P align=center><B>Table 1: Mineral Tenures &#150; Gibraltar Mine</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>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;Tenure Type </TD>
    <TD align=center width="33%">Number </TD>
    <TD align=center width="33%">Area (ha) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Claims </TD>
    <TD align=center width="33%">230 </TD>
    <TD align=center width="33%">16,933.68 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Leases </TD>
    <TD align=center width="33%">30 </TD>
    <TD align=center width="33%">1,889.68 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Total </TD>
    <TD align=center width="33%">260 </TD>
    <TD align=center width="33%">18,823.36 </TD></TR></TABLE></DIV>
<P align=justify>There are 30 mining leases at the Gibraltar mine which are
valid until at least July 26, 2023 as long as renewal fees, which are due on an
annual basis, are paid. Rights to use the surface accompany each mining lease.
Additionally all mining claims at the Gibraltar mine are due for expiry in
August 2012 with the exception of two claims that have an expiry dates on July
24, 2012, and February 7, 2013. It is intended that all leases and claims will
be renewed prior to their renewal fees being due (in the case of the leases) and
prior to their expiry in the case of the claims.</P>
<P align=justify>There are several land parcels for which surface rights were
purchased outright. There is one fee simple lot at the Gibraltar mine (L3728) on
which the plant site is located and annual taxes are paid. In addition the
Gibraltar mine holds four other land parcels: DL9170, DL9483, DL 9497 and
DL588.</P>
<P align=justify>The Gibraltar mine has operated for most of the active life of
the mine from four open pits. Waste dumps have been developed in various areas
adjacent to the open pits and tailings have been deposited in an impoundment
area, located about three kilometres north of the mill.</P>
<P align=justify>A mill expansion completed in 2008 included commissioning of a
new 34&#146; diameter SAG mill, conversion of the rod and ball mill circuit to ball
mill grinding only, and replacement of rougher and cleaner flotation cells with
large high volume current technology flotation cells. The cleaner and regrind
circuit capital projects were completed and expected copper recovery
improvements were being realized by the end of 2009. </P>
<P align=justify>With the completion of the in-pit crusher and conveyor,
tailings handling systems, concentrate filter/dryer circuit upgrade in 2010 and
the SAG direct feed system in May 2011, the rated capacity of the operation
increased from 36,000 tpd to 55,000 tpd.</P>
<P align=justify><I>Accessibility, Climate, Local Resources, Infrastructure and
Physiography</I></P>
<P align=justify>The Gibraltar mine mineral claims cover an area of gentle
topography; local relief is in the order of 200 metres. The plant site is
located at an elevation of approximately 1,100 metres above sea level. The
project area has a moderate continental climate with cold winters and warm
summers. Ambient air temperature ranges from a winter minimum of -34&#176; C to a
summer maximum of 35&#176;C. The Gibraltar mine operates year round.</P>
<P align=justify>Access to the Gibraltar mine from Williams Lake, British
Columbia is via Highway 97 to McLeese Lake, and then a paved road provides
access to the Gibraltar mine site, a total road distance of 65 kilometres.</P>
<P align=justify>The Canadian National Railway has rail service to facilitate
the shipping of copper concentrates through to the Pacific Ocean port Vancouver
Wharves, located in North Vancouver, BC. A rail siding and storage shed for the
shipment of concentrate is located 26 kilometres from the mine site. Electricity is obtained from BC Hydro. Natural gas is
provided by Avista Energy and Terasen Gas. The communities of Williams Lake and
Quesnel are sufficiently close to the site to supply goods, services, and
personnel to the Gibraltar mine. The Gibraltar mine had approximately 500 active
personnel at the end of December 2011.</P>
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<P align=center>- 13 -</P>
<P align=justify>Make-up fresh water for the mine site is obtained from a set of
wells on the Gibraltar mine property. The Company owns and operates the
concentrate rail load-out facility on the CN rail line at Macalister.</P>
<P align=justify><I>Gibraltar Mine History</I></P>
<P align=justify>In 1964, Gibraltar acquired a group of claims in the McLeese
Lake area from Malabar Mining Co. Ltd. Canadian Exploration Limited (Canex), at
that time a wholly-owned subsidiary of Placer Development (Placer), and Duval
Corporation (Duval) had also been exploring on claims known as the Pollyanna
Group which they had acquired adjacent to Gibraltar&#146;s claims. In 1969,
Gibraltar, Canex and Duval entered into an agreement providing for the
commingling of Gibraltar&#146;s claims with the Pollyanna Group. In 1971 Gibraltar
acquired Duval&#146;s remaining interest in the property. </P>
<P align=justify>Preliminary development of the Gibraltar mine began in October
1970. The concentrator commenced production on March 8, 1972 and was fully
operational by March 31, 1972. Mining and milling operations were suspended on
December 1, 1993 due to low copper prices and recommenced in September 1994
following the increase in copper prices. A cathode copper plant design with an
annual capacity of 4,535 tonnes (10 million lb.) of market-ready copper metal
began operation in October 1986. Up to the 1998 shutdown, as discussed below,
38,430 tonnes (84.7 million lb.) of electro won copper had been produced from
this facility.</P>
<P align=justify>In October 1996, Westmin Resources Limited (&#147;Westmin&#148;) acquired
100% control of Gibraltar and in December 1997, Boliden Limited Westmin (Canada)
Limited (&#147;Boliden&#148;) acquired Westmin. In March 1998, Boliden announced that it
would cease mining operation at Gibraltar mine at the end of 1998.</P>
<P align=justify>On July 21, 1999, Taseko&#146;s subsidiary, Gibraltar Mines Ltd.,
purchased the Gibraltar mine assets from Boliden and certain of its affiliates,
including all mineral interests, mining and processing equipment and facilities,
and assumed responsibility for reclamation obligations estimated at that time at
about $33 million. Pursuant to the terms of the acquisition, Gibraltar acquired
mining equipment, parts and supplies inventories valued at $19 million, an
existing British Columbia Government environmental deposit of $8 million, and
mineral interests valued at $3.3 million, and received $20.1 million in cash
over 18 months from closing, of which $17 million was received pursuant to a
10-year non-interest bearing convertible debenture issued to Boliden and
subsequently acquired by NVI Mining Ltd (&#147;NVI&#148;). Gibraltar assumed the estimated
reclamation liability pertaining to the Gibraltar mine of $32.9 million and
Taseko guaranteed Gibraltar&#146;s obligations to Boliden. On April 2, 2008, NVI
issued a notice to the Company to convert the principal amount of the debenture
of $17.0 million at an effective conversion rate of $5.14 per common share,
which would have resulted in 3,307,393 common shares of the Company being issued
to NVI. The Company issued 2,612,971 to NVI and made a cash payment of $3.6
million in lieu of issuing the remaining 694,422 common shares as full and final
settlement to NVI and accordingly the debenture has been discharged.</P>
<P align=justify>From 1999 to 2004, Taseko geologists and engineers explored for
additional mineralized material and to better define known resources. The
on-site staff completed on-going reclamation work and maintained the Gibraltar mine for
re-start. Operating and environmental permits were kept in good standing. </P>
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<P align=center>- 14 -</P>
<P align=justify>On October 1, 2004 when the mine re-opened, there were
approximately 837 million tons of measured and indicated resources outlined at
Gibraltar, including proven and probable sulphide reserves of 163.5 million tons
grading 0.313% copper and 0.010% molybdenum at a 0.20% copper cut-off, and 16.5
million tons of oxide reserves grading 0.148% copper at a 0.10% acid soluble
copper cut-off. The Gibraltar re-start decision was based on the initial four
years of the 12-year mine plan and mining operations recommenced that year.
Copper cathode production at the SX/EW plant did not recommence until January
2006.</P>
<P align=justify>The Gibraltar mine became an unincorporated joint venture
between Taseko and Cariboo on March 31, 2010. The Company and Cariboo hold 75%
and 25% beneficial interests in the Joint Venture, respectively. The assets and
liabilities contributed by the Company into the Joint Venture were primarily
mineral property interests, plant and equipment, inventory, prepaid expenses,
reclamation deposits, equipment loans, and capital lease obligations and the
site closure and reclamation obligation.</P>
<P align=justify><I>Red Mile Royalty Sale Agreements</I></P>
<P align=justify>On September 29, 2004, Gibraltar and 688888 B.C. Ltd.
(&#147;688888&#148;), a wholly-owned subsidiary of Taseko, entered into certain related
agreements. Pursuant to a Royalty Agreement among, <I>inter alia</I>, Gibraltar
and Wilshire (GP) No. 2 Corporation, in its own capacity and in its capacity as
general partner on behalf of all the limited partners of Red Mile Resources No.
2 Limited Partnership (&#147;Red Mile&#148;), Gibraltar sold to Red Mile a royalty (the
&#147;Royalty Interest&#148;) for $67.4 million (the &#147;Purchase Price&#148;). Annual royalties
payable by Gibraltar to Red Mile range from $0.01 per pound to $0.14 per pound
of copper produced during the period from the Commencement of Commercial
Production (as defined in the Royalty Agreement) to the later of (a) December
31, 2014, and (b) the date that is five years after the end of commercial
production from the mine.</P>
<P align=justify>Pursuant to a Funding Pledge Agreement among, <I>inter
alia</I>, Alberta Capital Trust Corporation (&#147;Alberta Trust&#148;) and Gibraltar, the
Purchase Price was invested in a promissory note with Alberta Trust, and
Gibraltar pledged the promissory note, along with interest earned and to be
earned thereon, to secure its obligations under the Funding Pledge Agreement.
Pursuant to a Pledge, Priorities and Direction Agreement, Gibraltar is entitled
to have released to it funds held under the promissory note, and interest
thereon, to fund its royalty obligations under the Royalty Agreement to the
extent of its royalty payment obligations.</P>
<P align=justify>Pursuant to a Call Option Agreement among, <I>inter alia</I>,
688888 and Red Miles Resources Inc., in its capacity as general partner on
behalf of all of the partners of Red Mile Resources Fund Limited Partnership
(&#147;RMRF&#148;) , 688888 has an option to, directly or indirectly, re-acquire the
Royalty Interest by acquiring (&#147;call&#148;) from Red Mile the Royalty Interest or
from RMRF all of the limited partnership units (&#147;LP Units&#148;) of Red Mile held by
RMRF. Pursuant to the Royalty Agreement, RMRF has the right to require Gibraltar
to purchase (&#147;put&#148;) all of Red Mile&#146;s LP Units owned by RMRF.</P>
<P align=justify>Pursuant to the Royalty Agreement, Gibraltar has granted to Red
Mile a net profits interest (&#147;NPI&#148;), which survives any &#147;put&#148; or &#147;call&#148; of the
Red Mile LP Units. The NPI is applicable for the years 2011 to 2014 and varies
depending on the average price of copper for any year during that period. No NPI
is payable until the Company reaches a pre-determined aggregate level of revenues less defined operating costs and expenditures and, as
at December 31, 2011, this threshold has not yet been met.</P>
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<P align=center>- 15 -</P>
<P align=justify><I>Property Geology</I></P>
<P align=justify>The Gibraltar mine generally consists of six separate
mineralized zones. Five of these &#150;Pollyanna, Granite, Connector, Gibraltar, and
Gibraltar Extension &#150; occur within the Granite Mountain batholith in a broad
zone of shearing and alteration. A sixth copper mineralized body, the Sawmill
zone, lies about six kilometres to the south, along the southern edge of the
batholith, within a complex contact zone between the batholith and Cache Creek
Group rocks.</P>
<P align=justify>Two major structural orientations have been recognized at
Gibraltar: the Sunset and Granite Creek mineralized systems. The Sunset system
has a northwest strike with one set of structures dipping 35&#176; to 45&#176; to the
south and a conjugate set, known as the Reverse Sunset, dipping 50&#176; to 60&#176; to
the north. The Granite Creek system strikes east-west and dips 20&#176; to 40&#176; to the
south with a subordinate set of structures dipping steeply in a northerly
direction. Structures of the Sunset system that host mineralization are mainly
shear zones, with minor development of stockwork and associated foliation
lamellae. Host structures of the Granite Creek system are predominantly oriented
stockwork zones.</P>
<P align=justify>The Granite Creek system provides the major structures that
control mineralization of Pollyanna, Granite and the Sawmill zones. These bodies
have the characteristic large diffuse nature of porphyry copper type
mineralization. The Gibraltar deposit is essentially a system of interconnected
Sunset zones, which create a large body of uniform grade. The Gibraltar
Extension deposit is contained within a large complex shear zone.</P>
<P align=justify><I>Mineralization</I></P>
<P align=justify>Pyrite and chalcopyrite are the principal primary iron and
copper sulphide minerals. Sixty percent of the copper occurs in fine-grained
chalcopyrite. Coarser grained chalcopyrite also occurs, usually in quartz veins
and shear zones. Small concentrations of bornite (a sulphide mineral of copper
and iron), associated with magnetite and chalcopyrite, is present on the
extremities of the Pollyanna and Sawmill deposits. Oxide copper mineralization
is also present between the Gibraltar and Pollyanna open pits in the Connector
Zone. Molybdenite (molybdenum sulphide mineral) is a minor but economically
important associate of chalcopyrite in the Pollyanna, Granite and Sawmill
deposits.</P>
<P align=justify><I>Exploration and Drilling</I></P>
<P align=justify>From 1999-2004, Taseko geologists and engineers explored for
additional mineralized material and to better define known resources. A core
drilling program for pit definition for the Granite Lake and PGE Connector
deposits and property exploration at the 98 Oxide Zone, was carried out between
September and November 2005. A further drilling program carried out in 2006 was
designed to define the mineral resources between the existing pits by tying
together the extensive mineralization zones, and to test for additional
mineralization at depth. </P>
<P align=justify>The 2007 program tested a number of targets to define further
mineralization, provided definition drilling in the Pollyanna-Granite saddle
zone and Granite West areas and included condemnation drilling for the proposed
extensions of both the #5 and #6 Dump footprints. The targets for further
mineralization were Gibraltar South, Pollyanna North IP anomaly, Granite South
and the Gunn Zone.</P>
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<P align=center>- 16 -</P>
<P align=justify>The 2008 exploration program was conducted on the southern and
eastern margins of the Gibraltar pit and northwest of the Gibraltar West pit.
The objective was to upgrade identified inferred resources to indicated or
measured categories through &#147;in-fill&#148; drilling. Holes drilled in the Gibraltar
West pit area were incorporated into the 2008 reserve estimate for the new
Gibraltar Extension Pit.</P>
<P align=justify>The 2010 program was conducted on the northern and western
margins of the Gibraltar pit, and one hole on the southwest margin. The
objective was to define the ultimate limit of the Gibraltar pit to the north and
west. The 2010 drilling program met the objective of delineating mineralization
to the north and west of the Gibraltar pit. A total of 28,129 feet (8,574
metres) was drilled in 34 drill holes in 2010 averaging 827 feet (252 metres) in
length. The holes encountered 79 intercepts at a 0.2 % TCu cutoff ranging in
length from 20 to 260 feet and grading from 0.2 % to 1.2 % TCu. Additionally, a
hole drilled on the south edge of Gibraltar pit encountered, as anticipated,
significant &#8805; 0.20 % copper mineralization.</P>
<P align=justify>The 2011 program was aimed at identifying mineralization
down-dip of the Gibraltar and Granite deposits. 5 holes totaling 12,229 feet
(3,727 metres) were drilled. A deep zone of anomalous copper &#177; molybdenum
mineralization encountered in drillhole 2011-003 extends from approximately 2600
to 3700 feet and consists of intermittent intercepts grading up to 1.3% TCu and
0.4% Mo. Further examination of the results is required to assess the potential
for classification as reserve or resource.</P>
<P align=justify><I>Sampling and Analytical Procedures</I></P>
<P align=justify>Drill core was boxed at the drill site and transported by
company truck to a secure logging, sampling and sample preparation facility at
the Gibraltar mine. The drill core was mechanically split into two halves
lengthwise. Half core was taken as an assay sample. The remaining half core and
coarse reject after sample preparation at the analytical laboratories are stored
at the Gibraltar mine. The remaining pulps after analysis are stored at a secure
warehouse at Port Kells, BC.</P>
<P align=justify>The 2011 sample preparation was performed by Eco Tech
Laboratory Stewart Group, Kamloops. The entire sample was dried, and jaw-crushed
to 70% passing 10 mesh (&lt;2 mm). A 500 g split was then taken and the samples
were pulverized to 95% passing 150 mesh (106 microns). The coarse reject samples
were returned to Gibraltar mine after analysis for long term storage. The sample
pulps are retained at the Port Kells warehouse of Taseko.</P>
<P align=justify>Taseko implemented a rigorous quality control quality assurance
(QA/QC) program after taking over the Gibraltar mine. This QA/QC program was in
addition to the procedures used internally by the analytical laboratories. The
results of this program indicate that analytical results are of high quality and
suitable for use in detailed modeling and resource evaluation studies.</P>
<P align=justify><I>Gibraltar Mine Reserves and Resources</I></P>
<P align=justify>The Gibraltar mine mineral reserves are based on the published
reserves at March 31, 2011 and reduced for ore production from the Granite pit
between March 31, 2011 and December 31, 2011.</P>
<P align=justify>The reserve estimates use long-term metal prices of US$2.25/lb
for copper and US$14.00/lb for molybdenum and a foreign exchange of
C$1=US$0.85.</P>
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<P align=center>- 17 -</P>
<P align=justify>The proven and probable reserves as of December 31, 2011 are
tabulated in Table 2 below.</P>
<P align=center><B>Table 2: Gibraltar Mine Mineral Reserves at 0.20% Copper
Cut-off</B></P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD align=left><BR><B>Pit</B> </TD>
    <TD align=left width="20%"><BR><B>Category</B> </TD>
    <TD align=center width="20%"><B>Tons</B> <BR><B>(millions)</B> </TD>
    <TD align=center width="20%"><B>Cu</B> <BR><B>(%)</B> </TD>
    <TD align=center width="20%"><B>Mo</B> <BR><B>(%)</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Connector <BR><BR></TD>
    <TD align=left width="20%">Proven <BR>Probable </TD>
    <TD align=center width="20%">45.1 <BR>30.5 </TD>
    <TD align=center width="20%">0.299 <BR>0.284 </TD>
    <TD align=center width="20%">0.012 <BR>0.010 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="20%"><B>Subtotal</B> </TD>
    <TD align=center width="20%"><B>75.6</B> </TD>
    <TD align=center width="20%"><B>0.293</B> </TD>
    <TD align=center width="20%"><B>0.011</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Gibraltar <BR><BR></TD>
    <TD align=left width="20%">Proven <BR>Probable </TD>
    <TD align=center width="20%">143.6 <BR>71.6 </TD>
    <TD align=center width="20%">0.276 <BR>0.267 </TD>
    <TD align=center width="20%">0.008 <BR>0.010 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="20%"><B>Subtotal</B> </TD>
    <TD align=center width="20%"><B>215.2</B> </TD>
    <TD align=center width="20%"><B>0.273</B> </TD>
    <TD align=center width="20%"><B>0.009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Granite <BR><BR></TD>
    <TD align=left width="20%">Proven <BR>Probable </TD>
    <TD align=center width="20%">206.3 <BR>30.8 </TD>
    <TD align=center width="20%">0.320 <BR>0.325 </TD>
    <TD align=center width="20%">0.010 <BR>0.005 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="20%"><B>Subtotal</B> </TD>
    <TD align=center width="20%"><B>237.2</B> </TD>
    <TD align=center width="20%"><B>0.321</B> </TD>
    <TD align=center width="20%"><B>0.009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Gibraltar Extension <BR><BR></TD>
    <TD align=left width="20%">Proven <BR>Probable </TD>
    <TD align=center width="20%">72.6 <BR>31.1 </TD>
    <TD align=center width="20%">0.356 <BR>0.301 </TD>
    <TD align=center width="20%">0.002 <BR>0.002 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="20%"><B>Subtotal</B> </TD>
    <TD align=center width="20%"><B>103.7</B> </TD>
    <TD align=center width="20%"><B>0.340</B> </TD>
    <TD align=center width="20%"><B>0.002</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Pollyanna <BR><BR></TD>
    <TD align=left width="20%">Proven <BR>Probable </TD>
    <TD align=center width="20%">106.6 <BR>51.2 </TD>
    <TD align=center width="20%">0.291 <BR>0.279 </TD>
    <TD align=center width="20%">0.009 <BR>0.010 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="20%"><B>Subtotal</B> </TD>
    <TD align=center width="20%"><B>157.8</B> </TD>
    <TD align=center width="20%"><B>0.287</B> </TD>
    <TD align=center width="20%"><B>0.009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=2><B>Total</B> </TD>
    <TD align=center width="20%"><B>789.5</B> </TD>
    <TD align=center width="20%"><B>0.301</B> </TD>
    <TD align=center width="20%"><B>0.008</B> </TD></TR></TABLE></DIV>
<P align=justify>The table below uses the terms &lsquo;measured resources&rsquo; and &lsquo;indicated resources&rsquo;.  The Company advises investors that while those terms are recognized and required by Canadian regulations, the SEC does not recognize them. The mineral reserves stated above are contained within the mineral resources indicated in Table 3 below:</P>
<P align=center><B>Table 3: Gibraltar Mine Mineral Resources 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>Category</B> </TD>
    <TD align=center width="25%"><B>Tons (millions)</B> </TD>
    <TD align=center width="25%"><B>Cu (%)</B> </TD>
    <TD align=center width="25%"><B>Mo (%)</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Measured </TD>
    <TD align=center width="25%">659.5 </TD>
    <TD align=center width="25%">0.305 </TD>
    <TD align=center width="25%">0.008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Indicated </TD>
    <TD align=center width="25%">278.7 </TD>
    <TD align=center width="25%">0.290 </TD>
    <TD align=center width="25%">0.008 </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Total</B> </TD>
    <TD align=center width="25%"><B>938.2</B> </TD>
    <TD align=center width="25%"><B>0.301</B> </TD>
    <TD align=center width="25%"><B>0.008</B> </TD></TR></TABLE></DIV>
<P align=justify>There are also oxide reserves, identified in: Connector, Gibraltar, Gibraltar Extension and Pollyanna pits as shown in Table 4 below.  These oxide reserves are in addition to the sulphide reserves stated in Table 2 and are contained within the resources stated in Table 3. </P>
<P align=center><B>Table 4: Gibraltar Mine &#150; Oxide Mineral Reserves at 0.10%
ASCu 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> </TD>
    <TD align=left width="25%"><B>Category</B> </TD>
    <TD align=center width="25%"><B>Tons (millions)</B> </TD>
    <TD align=center width="25%"><B>ASCu (%)</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Connector <BR><BR></TD>
    <TD align=left width="25%">Proven <BR>Probable </TD>
    <TD align=center width="25%">9.5 <BR>1.3 </TD>
    <TD align=center width="25%">0.14 <BR>0.12 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%"><B>Subtotal</B> </TD>
    <TD align=center width="25%"><B>10.8</B> </TD>
    <TD align=center width="25%"><B>0.14</B> </TD></TR></TABLE></DIV><BR>
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<P align=center>- 18 -</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> </TD>
    <TD align=left width="25%"><B>Category</B> </TD>
    <TD align=center width="25%"><B>Tons (millions)</B> </TD>
    <TD align=center width="25%"><B>ASCu (%)</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Gibraltar <BR><BR></TD>
    <TD align=left width="25%">Proven <BR>Probable </TD>
    <TD align=center width="25%">1.6 <BR>0.6 </TD>
    <TD align=center width="25%">0.14 <BR>0.14 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%"><B>Subtotal</B> </TD>
    <TD align=center width="25%"><B>2.3</B> </TD>
    <TD align=center width="25%"><B>0.14</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Gibraltar Extension <BR><BR></TD>
    <TD align=left width="25%">Proven <BR>Probable </TD>
    <TD align=center width="25%">0.1 <BR>0.1 </TD>
    <TD align=center width="25%">0.12 <BR>0.13 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%"><B>Subtotal</B> </TD>
    <TD align=center width="25%"><B>0.2</B> </TD>
    <TD align=center width="25%"><B>0.12</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Pollyanna <BR><BR></TD>
    <TD align=left width="25%">Proven <BR>Probable </TD>
    <TD align=center width="25%">0.4 <BR>0.0 </TD>
    <TD align=center width="25%">0.12 <BR>0.10 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%"><B>Subtotal</B> </TD>
    <TD align=center width="25%"><B>0.4</B> </TD>
    <TD align=center width="25%"><B>0.11</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=2><B>Total</B> </TD>
    <TD align=center width="25%"><B>13.7</B> </TD>
    <TD align=center width="25%"><B>0.14</B> </TD></TR></TABLE></DIV>
<P align=justify>The mineral resource and reserve estimations were completed by
Gibraltar mine staff under the supervision of Scott Jones, P.Eng.,
Vice-President, Engineering, a Qualified Person under NI 43-101 and the author
of the Gibraltar Technical Report. Mr. Jones has verified the methods used to
determine grade and tonnage in the geological model, reviewed the long-range
mine plan, and directed the updated economic evaluation. </P>
<P align=justify><I>Mining Operations</I></P>
<P align=justify>The Gibraltar mine is a typical open pit operation that
utilizes drilling, blasting, cable shovel loading and large-scale truck hauling
to excavate rock. The Gibraltar mine is planned to enable excavation of sulphide
mineralized material of sufficient grade that can be economically mined,
crushed, ground and processed to a saleable product by froth flotation. Tailings
are pumped to a storage facility.</P>
<P align=justify>Rock containing lower grade sulphide mineralization or oxide
mineralization is also mined but is not immediately processed. The lower grade
sulphide material is stockpiled for later treatment in the mill. In addition, a
portion of the low grade sulphide material and all of the oxide material can be
leached with sulphuric acid, which is naturally assisted by bacterial action,
and the resultant copper sulphate solution can be processed to cathode copper in
the Gibraltar mine&#146;s SX/EW plant. </P>
<P align=justify>A phased expansion of the mill has been underway since 2007.
Phase 1 mill construction was completed in February 2008, followed by ramp up to
the rated processing capacity of 46,000 tpd. The Phase 2 expansion program,
designed to increase the concentrator throughput from 46,000 tpd to 55,000 tpd
was completed in 2011. </P>
<P align=justify>The new in-pit 60-inch by 89-inch crusher and overland conveyor
system was completed and commissioned mid-2010. The system is designed to reduce
operating costs and improve mine productivity by replacing the original
Gibraltar crusher and supplanting approximately three diesel-powered haulage
trucks with an electrically driven overland conveyor belt.</P>
<P align=justify>Replacement of the single-line tailings system with a two line
system and substitution of the natural gas fired concentrate dryer with a filter
press was completed in 2010. This equipment reduces operating cost and provides
a more stable operating platform, and will be able to manage increased volume as
mill throughput increases.</P>
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<P align=center>- 19 -</P>
<P align=justify>Construction of the SAG Direct Feed System was started in the
fourth quarter of 2010 and completed mid-2011. The system is designed to improve
mill availability, increase throughput and reduce costs by eliminating the
complicated secondary crusher and fine ore feed system. The new direct feed
system allows larger mill feed more appropriate for autogenous grinding.</P>
<P align=justify>In 2011, we continued the expansion with GDP3. GDP3 includes
the construction of a new concentrator to complement the existing 55,000 tpd
facility, increasing annual production capacity to over 180 million pounds of
copper. A new molybdenum recovery facility is also planned to increase annual
molybdenum production to over two million pounds. </P>
<P align=justify>The total GDP3 capital cost is estimated at $325 million and,
to date, commitments have been made for approximately 70% of the project capital
requirements. Engineering Procurement and Construction Management (EPCM)
activities on the $237 million infrastructure portion of the project continue to
progress as planned. Major equipment purchases for the concentrator, molybdenum
plant and infrastructure are complete and detailed engineering activities for
the project structural, mechanical and electrical systems continue. Orders and
contracts for over 62% of the infrastructure portion of the project budget have
been placed and, as reported previously, all of the major mining equipment has
been purchased. Long lead items continue to ship and the main transformers have
now been received at the site. The first two shipments of grinding mill
components are in transit and will arrive in Vancouver in April. </P>
<P align=justify>Construction activities are proceeding as planned. The #2
Concentrator building foundation, the grinding mill foundations and the civil
concrete works for the mill feed conveyors have been completed as has the
erection of the Molybdenum Plant building. Erection of the #2 Concentrator
building is well underway and the contractor has mobilized to begin the erection
of the first conveyor systems.</P>
<P align=justify>The project remains on time and on budget. Commissioning of the
facilities is scheduled to commence in December 2012.</P>
<P align=justify>Gibraltar&#146;s copper concentrate has a nominal 28% copper grade
and no significant deleterious elements. Gibraltar&#146;s copper concentrate is
currently sold at prices based on London Metal Exchange (&#147;LME&#148;) quotations under
an agreement with MRI Trading AG (&#147;MRI&#148;) of Switzerland, for the treatment and
refining of certain copper concentrate from the Gibraltar mine. Under the terms
of the MRI sales agreement, the Company has secured long-term and fixed rates
for processing copper concentrate until December 31, 2014. The Company has the
right to price payable copper within the concentrate based on a quotational
period, declared prior to, and covering each ensuing calendar year. Although
two-thirds of Gibraltar&#146;s copper concentrate is currently sold to MRI, in the
event that MRI is unable to purchase Gibraltar&#146;s copper concentrate as provided
in the MRI sales agreement, a liquid market exists.</P>
<P align=justify>On March 31, 2010, the Company entered into the JVFA with
Cariboo. As part of the JVFA, the Company entered into an off-take agreement
with Cariboo for the treatment and refining of certain copper concentrate from
the Gibraltar mine.</P>
<P align=justify>Gibraltar copper cathode is nominally 99.9%+ pure copper, and
is currently sold under an agreement with Trafigura AG of Switzerland, which
includes provisions for 100% of the cathode production. Gibraltar also has an
agreement with Derek Raphael to treat a minimum of 75% of its molybdenum
concentrate.</P>
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<P align=center>- 20 -</P>
<P align=justify>The following table is a summary of the operating statistics
for the year ending December 31, 2011. All mining during 2011 took place in the
Granite pit.</P>
<P align=center><B>Table 5: Gibraltar Production (100% basis)</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>Total tons mined (millions)<SUP>1</SUP> </TD>
    <TD align=center width="25%" >57.5 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Tons of ore milled (millions) </TD>
    <TD align=center width="25%" >15.2 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Stripping ratio </TD>
    <TD align=center width="25%" >2.8 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Copper grade (%) </TD>
    <TD align=center width="25%" >0.304 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Molybdenum grade (%Mo) </TD>
    <TD align=center width="25%" >0.012 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Copper recovery (%) </TD>
    <TD align=center width="25%" >87.7 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Molybdenum recovery (%) </TD>
    <TD align=center width="25%" >36.7 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Copper production (millions lb) <SUP>2</SUP> </TD>
    <TD align=center width="25%" >82.9 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Molybdenum production (thousands lb) </TD>
    <TD align=center width="25%" >57.5 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Total tons mined (millions)<SUP>1</SUP> </TD>
    <TD align=center width="25%" >15.2
</TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><SUP>1</SUP> </TD>
    <TD>
      <P align=justify>Total tons mined includes sulphide ore, low grade
      stockpile material, overburden, and waste rock which were moved from
      within pit limit to outside pit limit during the period.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%"><SUP>2</SUP> </TD>
    <TD>
      <P align=justify>Copper production includes concentrate and
  cathode.</P></TD></TR></TABLE>
<P align=justify>For 2012, the Gibraltar mine is expected to operate close to
its current production capacity of 55,000 tpd, increasing to 85,000 tpd once
GDP3 is fully commissioned sometime in 2013.</P>
<P align=justify>There have been no material environmental non-compliance
incidents since the mine reopened in 2004.</P>
<P align=justify><B>New Prosperity Project</B></P>
<P align=justify>Unless stated otherwise, information of a technical or
scientific nature related to the Prosperity project contained in this AIF is
summarized or extracted from a technical report entitled &#147;Technical Report, on
the 344 million tonne increase in mineral reserves at the Prosperity Gold &#150;
Copper Project&#148; dated December 17, 2009, prepared by Scott Jones, P. Eng. filed
on Taseko&#146;s profile on SEDAR at <U><font color="#0099FF">www.sedar.com</font></U>. Mr. Jones is employed by
the Company as Vice-President, Engineering.</P>
<P align=justify><I>Property Description and Location</I></P>
<P align=justify>The New Prosperity project is located at latitude 51&#176; 28&#146; N and
longitude 123&#176; 37&#146; W in the Clinton Mining Division, approximately 125
kilometres southwest of the City of Williams Lake, British Columbia, and
consists of a mineral lease (number 787863) and 37 mineral claims covering the
mineral rights for approximately 94.9 square kilometres. All claims are in good
standing until April 2018. The claims are 100% owned by Taseko and are not
subject to any royalties or carried interests.</P>
<P align=justify>On May 12, 2010, the Company entered into a gold stream
transaction with Franco-Nevada Corporation (&#147;Franco-Nevada&#148;), under which
Franco-Nevada will purchase gold equal to 22% of the life of mine gold produced
at the project. Staged cash deposits aggregating US$350 million will be paid
during mine construction, and two million Franco-Nevada warrants will be issued
on the date of the first advance of the cash payment. For each ounce of gold
delivered to Franco-Nevada, Taseko will receive a further cash payment of
US$400/oz (subject to an inflationary adjustment) or the prevailing market price, if lower. The
deposit will be credited with the difference between US$400/oz and the market
price of gold for each ounce delivered until the deposit is fully credited. Each
warrant is exercisable to purchase one Franco-Nevada common share at a price of
$75.00 until June 16, 2017 and will be listed under the same terms as the
warrants listed on TSX under the symbol FNV.WT.A. The conditions to funding the
gold stream include obtaining full financing of the project, receipt of all
material permits to construct and operate Prosperity, and securing marketing
arrangements for the majority of the concentrate. Franco-Nevada may terminate
this agreement on ten business days&#146; written notice to Taseko. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=center>- 21 -</P>
<P align=justify>As this is a greenfield project, there are no existing
environmental liabilities on the property and there has been no development at
the site. When additional site work is required, permit applications will be
made. The Company does not hold any surface rights.</P>
<P align=justify><I>Accessibility, Climate, Local Resources, Infrastructure and
Physiography</I></P>
<P align=justify>Access from Williams Lake is via Highway 20 to Lee&#146;s Corner,
then via an all-weather main logging haulage road to the site, a total road
distance of 192 kilometres. The Canadian National railway services Williams Lake
and has rolling stock available to move copper concentrates by rail to points of
sale in North America. The City of Williams Lake is sufficiently close and is
capable of supplying goods, services, and personnel to a mine.</P>
<P align=justify>Multiple high-voltage transmission lines from the existing
Peace River hydroelectric power grid are situated 118 kilometres east of the
Prosperity project, a natural gas transmission pipeline is situated 112
kilometres northeast, and ample water is available nearby for a mining
operation. </P>
<P align=justify>The New Prosperity project is located on the Fraser Plateau in
the Taseko Lakes region on the eastern side of the Chilcotin Mountain Range,
which forms part of British Columbia&#146;s Coast Mountain Range. The landscape is
characterized by the low rounded summits of the Chilcotin Range and moderately
sloping upland. The New Prosperity project is located within the Fish Creek and
Fish Lake watershed in a broad valley with slopes of moderate relief. Elevations
at the site range between 1,450 metres and 1,600 metres above sea level. </P>
<P align=justify>Local climatic conditions are moderated primarily by elevation,
aspect, physiography, and the proximity of the area to the Chilcotin Mountains.
The annual mean temperature at the Prosperity project site is estimated to be
2&#186;C. The coldest months of December and January average -10&#186;C, and the warmest
months of July and August average 13&#186;C. </P>
<P align=justify><I>Prosperity Project History</I></P>
<P align=justify>Prospectors discovered mineralization in the 1930&#146;s.
Exploration continued intermittently and by a variety of operators until about
1991, and included extensive IP, magnetic and soil geochemistry surveys, and 176
percussion and diamond drill holes, totalling approximately 27,100 metres. This
work helped define the New Prosperity project mineralization to a depth of 200
metres, and outlined a copper-gold mineralized zone approximately 850 metres in
diameter.</P>
<P align=justify>In 1969, Taseko acquired the Prosperity project and drilled 12
percussion holes totalling 1,265 metres and six diamond drill holes totalling
1,036 metres immediately to the south of the area previously explored, and
Taseko discovered significant tonnage grading 0.25% to 0.30% copper.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=center>- 22 -</P>
<P align=justify>In 1970, Nittetsu Mining Company optioned the Prosperity
project from Taseko Mines Limited and completed 236 metres of core drilling in 4
holes before returning the property to Taseko. In 1972, Taseko tested the
property with two additional diamond drill holes totalling 156 metres. Quintana
Minerals Corporation optioned the property from Taseko in 1973 and completed a
23-hole diamond drill program totalling 4,705 metres during 1973-74. </P>
<P align=justify>Bethlehem Copper Corp. optioned the Prosperity project in 1979
and by 1981 had completed 3,225 metres of percussion drilling in 36 holes and
10,445 metres of diamond drilling in 37 holes. Following the corporate merger of
Bethlehem Copper Corp. and Cominco Ltd., Cominco acquired the Bethlehem option
agreement on the Prosperity project. Cominco continued to drill the property,
completing 1,620 metres of percussion drilling in 19 holes and 3,707 metres of
diamond drilling in 29 holes over the period 1982 to 1989.</P>
<P align=justify>Cominco work programs also included 50 line kilometres of IP,
magnetic and soil geochemical surveys. The IP survey outlined a 2 by 3 kilometre
east-west trending zone of high chargeability. Also undertaken was a limited
metallurgical testwork program which focused on achieving high copper recovery,
with little emphasis on gold recovery, using a conventional copper flotation.
</P>
<P align=justify>After a period of disagreement with Cominco which included a
Court process, Taseko acquired 100% of the Prosperity project free whatsoever of
any royalties or third party interests in 1993 through settlement
agreements.</P>
<P align=justify><I>Geological Setting</I></P>
<P align=justify>The New Prosperity project is located within the western-most
portion of the Intermontane Belt at the boundary between the Intermontane and
Coast morphologic belts. The surrounding area is underlain by poorly exposed,
Late Paleozoic to Cretaceous litho tectonic assemblages which have been intruded
by plutons of Mid-Cretaceous to Early Tertiary age. The main Coast Plutonic
Complex is 50 kilometres southwest of the Prosperity project area.</P>
<P align=justify>The Yalakom Fault is the major fault in the region and lies to
the southwest of the deposit on the Prosperity project. Estimates of Eocene
dextral strike-slip offsets for the Yalakom Fault have been postulated variously
as ranging from 80 to 190 kilometres, 125 to 175 kilometres or 115 kilometres.
It may have imparted some related structural controls that are important to the
localization of mineralization at the deposit.</P>
<P align=justify><I>Mineralization</I></P>
<P align=justify>The New Prosperity project hosts a large porphyry gold-copper
deposit. The deposit is predominantly hosted in Cretaceous andesitic
volcaniclastic and volcanic rocks. In the western portion of the deposit, the
host rocks have been intruded by the multi-phase, steeply dipping Fish Creek
Stock. The stock is surrounded by an east-west trending, south dipping swarm of
subparallel quartz-feldspar porphyritic dykes. The stock and dykes comprise the
Late Cretaceous Fish Lake Intrusive Complex that is spatially and genetically
related to the deposit. Post mineralization porphyritic diorite occurs as narrow
dykes that cross-cut all host rocks. The central portion of the deposit is cut
by two major faults, striking north-south and dipping steeply to the west.</P>
<P align=justify>Pyrite and chalcopyrite are the principal sulphide minerals in
the deposit on the New Prosperity project. They are uniformly distributed in
disseminations, fracture fillings, veins and veinlets and may be accompanied by bornite and lesser molybdenite and
tetrahedrite-tenantite. Native gold occurs as inclusions in and along
microfractures with copper-bearing minerals and pyrite.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=center>- 23 -</P>
<P align=justify><I>Exploration</I></P>
<P align=justify>Up to 1991, exploration programs at the Prosperity project
included extensive IP and magnetic geophysical and soil geochemical surveys, and
176 percussion and diamond drill holes totalling approximately 27,100 metres.
This work helped define the Prosperity project mineralization to a depth of 200
metres, and outlined a gold-copper mineralized zone approximately 850 metres in
diameter.</P>
<P align=justify>In 1991 Taseko drilled 10 holes totalling 7,506 metres in a
&#147;cross&#148; pattern to test the core of the deposit on the Prosperity project over a
north-south distance of 550 metres. All of the holes intersected continuous
significant copper and gold grades and extended the mineralization to 810 metres
below surface. A scoping-level metallurgical testwork program was completed
which demonstrated that acceptable gold and copper recoveries could be achieved
by bulk sulphide flotation followed by regrinding and conventional copper
flotation. In the same year baseline environmental and monitoring studies were
initiated by the Company. </P>
<P align=justify>Diamond drilling continued in 1992, and by the end of the year
an additional 116 HQ and NQ diameter vertical drill holes totalling 60,558
metres had been drilled, expanding the deposit to 1400 metres east-west, 600
metres north-south and to 850 metres below surface.</P>
<P align=justify>Subsequent to 1993, the Company completed a 12-hole (4,605
metres) inclined core drilling program in 1994 to investigate the distribution
of fracture controlled gold and copper mineralization in the deposit. In
addition, 22 holes (3,171 metres) were drilled to investigate geotechnical
conditions in the proposed Prosperity project development areas.</P>
<P align=justify>In 1996 and 1997, an additional 107 holes (49,465 metres) were
completed in order to upgrade the confidence limits of the deposit. Of this
total, 20 holes (2,203 metres) were drilled vertically and 87 holes (47,262
metres) were inclined. These holes significantly increased the density of pierce
points in the deposit and added to the geotechnical and geochemical
characterization of the rock in the deposit. </P>
<P align=justify>Over the 34-year period from 1963 to 1997, a total of 154,631
metres has been drilled in 452 holes on the New Prosperity project. Of this
total, 273 holes (83,453 metres) were drilled vertically and 174 holes (71,178
metres) were inclined. Sizes of cored holes have included BQ, HQ, and NQ
totalling 148,322 metres, with an average drill spacing of 70 metres. The
balance of 6,309 metres is from percussion drilling. There has been no
production from the New Prosperity project.</P>
<P align=justify>Work on the Prosperity project was deferred from 2000-2005
first due to low metal prices and then later as the Company turned its attention
to re-starting the Gibraltar mine. In November 2005, work was reactivated on the
Prosperity gold-copper project. A pre-feasibility level study was completed in
the first quarter of fiscal 2007, and a full feasibility study completed in
September 2007. In late 2009 and 2010 additional metallurgical testing and
geotechnical investigations were undertaken in support of detailed
engineering.</P>
<hr style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noshade size=5>
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<a name=page_25></a>
<p align=center>- 24 -</p>
<P align=justify><I>Sampling and Analysis </I></P>
<P align=justify>Details of sampling and analysis of drill cores are described
in the December 17, 2009 technical report, &#147;Technical Report on the 344 Million
Tonne Increase in Mineral Reserves at the Prosperity Gold-Copper Project&#148;.
Sample pulps are stored in the Company&#146;s warehouse at Port Kells, BC. Coarse
rejects from analytical work are retained in Taseko&#146;s secure warehouse in
Surrey, BC.</P>
<P align=justify><I>Reserves and Resources</I></P>
<P align=justify>The Company and its consultants carried out progressive
engineering, metallurgical and environmental studies over the period 1998 to
2010, including a feasibility level study of the project in 2000, and a mill
redesign and project cost review in 2006.</P>
<P align=justify>In 2007 a feasibility study update incorporated the 2000
Feasibility Study, 2006 Mill Redesign, additional revisions to the processing
plant and infrastructure, updates to the tailings facility design and pit
geotechnical analysis, and revisions to the design and scheduling of the open
pit.</P>
<P align=justify>In 2008 Taseko worked with various consultants to investigate
value engineering opportunities, energy efficiency, and operating ease in
various areas of the concentrator and support infrastructure.</P>
<P align=justify>In 2009 Taseko incorporated different long term prices for
copper and gold prices from those assumed in 2007 and re-evaluated the reserves
on the basis of $1.65/lb Cu and $650/oz Au. The resulting mineral reserves are
shown in Table 6.</P>
<P align=center><B>Table 6: New Prosperity Mineral Reserves at CDN$5.50 NSR/t
Pit-Rim Cut-off</B></P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD align=center nowrap><B>Category</B> <BR>
      <BR></TD>
    <TD width="16%" align=center nowrap><B>Tonnes</B> <BR>
      <B>(millions)</B> <BR></TD>
    <TD width="16%" align=center nowrap><B>Gold</B> <BR>
      <B>(g/t)</B> <BR></TD>
    <TD width="16%" align=center nowrap><B>Copper</B> <BR>
      <B>(%)</B> <BR></TD>
    <TD width="16%" align=center nowrap><B>Recoverable</B> <BR>
      <B>Gold Ounces</B>
      <BR><B>(millions)</B> </TD>
    <TD width="16%" align=center nowrap><B>Recoverable</B> <BR>
      <B>Copper Pounds</B>
      <BR><B>(billions)</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center>Proven <BR>Probable </TD>
    <TD align=center width="16%">481 <BR>350 </TD>
    <TD align=center width="16%">0.46 <BR>0.35 </TD>
    <TD align=center width="16%">0.26 <BR>0.18 </TD>
    <TD align=center width="16%">5.0 <BR>2.7 </TD>
    <TD align=center width="16%">2.4 <BR>1.2 </TD></TR>
  <TR vAlign=top>
    <TD align=center>Total </TD>
    <TD align=center width="16%">831 </TD>
    <TD align=center width="16%">0.41 </TD>
    <TD align=center width="16%">0.23 </TD>
    <TD align=center width="16%">7.7 </TD>
    <TD align=center width="16%">3.6 </TD></TR></TABLE></DIV>
<P align=justify>The table below uses the terms &lsquo;measured resources&rsquo; and &lsquo;indicated resources&rsquo;.  The Company advises investors that while those terms are recognized and required by Canadian regulations, the SEC does not recognize them. The mineral resources shown in Table 7 include the mineral reserves shown in Table 6.  Resource estimates were based on a copper cut-off of 0.14%.</P>
<P align=center><B>Table 7: New Prosperity Mineral Resources at 0.14% Copper
Cut-off &#150; September 2009</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 nowrap>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;<B>Category</B> </TD>
    <TD width="25%" align=center nowrap><B>Tonnes (millions)</B> </TD>
    <TD width="25%" align=center nowrap><B>Gold (g/t)</B> </TD>
    <TD width="25%" align=center nowrap><B>Copper (%)</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Measured <BR>Indicated </TD>
    <TD align=center width="25%">547.1 <BR>463.4 </TD>
    <TD align=center width="25%">0.46 <BR>0.34 </TD>
    <TD align=center width="25%">0.27 <BR>0.21 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Total </TD>
    <TD align=center width="25%">1,010.5 </TD>
    <TD align=center width="25%">0.41 </TD>
    <TD align=center width="25%">0.24 </TD></TR></TABLE></DIV>
<P align=justify>In 2010 Taseko worked with various consultants to advance
project engineering to the detailed phase and to advance various permit
applications. Taseko temporarily suspended work on detailed engineering and permitting in November 2010 following
the federal cabinet&#146;s decision on the environmental assessment.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_26></A>
<P align=center>- 25 -</P>
<P align=justify>In early 2012 Taseko initiated a geotechnical field
investigation to support the design and environmental assessment of the
relocated tailings facility at New Prosperity.</P>
<P align=justify><I>Planned Mining Operations</I></P>
<P align=justify>The proposed mine plan utilizes a large-scale conventional
truck shovel open pit mining and milling operation. Following a one and a half
year pre-strip period, total material mined from the open pit over years 1 - 31
averages 170,000 tonnes per day at a life-of-mine strip ratio of 1.5:1. A
declining net smelter return cut-off is applied to the mill feed, which defers
lower grade ore for later processing. The stockpiled ore is processed in the
final years of the mine plan. </P>
<P align=justify>The New Prosperity processing plant has been designed with a
nominal capacity of 70,000 tonnes per day. The plant consists of a single
12-metres diameter SAG mill, two 7.9 -metre diameter ball mills, followed by
processing steps that include bulk rougher flotation, regrinding, cleaner
flotation, thickening and filtering to produce a copper-gold concentrate.
Expected life-of-mine metallurgical recovery is 87% for copper and 69% for gold,
with annual production averaging 110 million pounds copper and 234,000 ounces
gold over the 33-year mine life. </P>
<P align=justify>The copper-gold concentrate will be hauled with highway trucks
to an expanded load-out facility at the Gibraltar Mines Ltd.&#146;s existing facility
near Macalister for rail transport to various points of sale, but primarily
through the Port of Vancouver for shipment to smelters/refineries around the
world. </P>
<P align=justify>Power would be supplied via a new 124 kilometre long, 230 kV
transmission line from Dog Creek on the BC Hydro Grid. Infrastructure would also
include the upgrade of sections of the existing road to the site, construction
of a short spur to the minesite, an on-site camp, equipment maintenance shop,
administration office, concentrator facility, warehouse, and explosives
facilities. </P>
<P align=justify>Based on this update, the project would employ up to 460
permanent hourly and staff personnel. In addition, approximately 60 contractor
personnel would be employed in areas including catering, concentrate haulage,
explosives delivery, and bussing. </P>
<P align=justify><I>Environmental Assessment</I></P>
<P align=justify>The Ministry of Environment of British Columbia accepted
Taseko&#146;s Environmental Assessment report on March 13, 2009 and proceeded with an
Environmental Assessment Office (&#147;EAO&#148;) led review of this Project in a
coordinated manner with the CEAA on their respective provincial and federal
environmental assessment processes.</P>
<P align=justify>On January 14, 2010, Taseko received the environmental
assessment certificate for the Prosperity project from the Province.</P>
<P align=justify>The federal process conducted by a three-person panel, included
six weeks of public hearings in March and April of 2010 as part of the
environmental review. The panel's findings were essentially the same as the
conclusions reached in the Provincial Environmental Assessment but they were not mandated to assess economic and social value
generated by the project. In July, the panel submitted its final report to the
federal government for their approval.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_27></A>
<P align=center>- 26 -</P>
<P align=justify>In November, the federal Minister of Environment announced that
the Prosperity mine project, as proposed, would not be granted federal
authorizations to proceed. Taseko suspended work on detailed engineering and
permitting after the federal announcement. The Company has reviewed and revised
its plan and has put forth a new design proposal, which adds construction costs
and life of mine operating expenditures of approximately $300 million to the
original design. The new plan responds to the concerns identified during the
federal review process and on February 21, 2011 the Company submitted a project
description for the New Prosperity project to the federal government.</P>
<P align=justify>On November 7, 2011 the CEAA announced that the New Prosperity
Gold-Copper Mine project would undergo an environmental assessment by a federal
review panel. In announcing the decision the Minister of the Environment
indicated that the time for the Agency to complete these activities and for the
panel to conduct its review, including holding public hearings and preparing its
report, is to be no more than 12 months, in total.</P>
<P align=justify>On January 23, 2012 the Agency released draft environmental
impact statement (EIS) guidelines and the draft terms of reference for the
review panel for a 30 day public comment period. On March 16, 2012 the EIS
guidelines were finalized by the Minister of the Environment and issued to
Taseko. Issuance of the terms of reference for the review panel is anticipated
in April. Taseko will submit the EIS in compliance with the finalized
guidelines.</P>
<P align=justify>The Provincial Mines Act permit application was submitted to
the Ministry of Energy, Mines, and Petroleum Resources in June 2010 but was put
in abeyance following the November federal decision.</P>
<P align=justify><B>Aley Project</B></P>
<P align=justify><I>Property Acquisition</I></P>
<P align=justify>In June 2007, Taseko acquired 100% of the Aley niobium project
in northern British Columbia through the acquisition of all the issued and
outstanding shares in the capital of a private company, for a total cash
consideration of $1.5 million and 894,730 common shares then valued at $2.9
million. Taseko purchased the residual net smelter royalty for a total cash
consideration of $0.3 million and the issuance of units having a value at the
time of $0.8 million (consisting of 240,000 common shares and 120,000
warrants).</P>
<P align=justify>Niobium is a metal used in making high strength steels required
in the manufacture of automobiles, bridges, pipes, jet turbines and other high
technology applications. Ninety percent of niobium enters the market as
ferro-niobium (FeNb); 15% of all steel produced worldwide contains FeNb, a
number that may increase to 20% in the near future. The increase in demand for
FeNb has resulted largely from the overall growth in the global steel industry
and also from the increasing intensity of use in steels. Demand for
ferro-niobium has grown at approximately 10% per annum in recent years and
Taseko anticipates that growth to continue over the next 10 years. Ferro-niobium
is currently selling for $40/kg Nb and Taseko expects prices to increase to
$50/kg by 2015 and $60/kg by 2020. Currently, 90% of the world&#146;s niobium is
supplied by three mines: The CBMM (Companhia Brasileira de Metalurgia e
Minera&#231;&#227;o), Anglo American of South America Ltda mines in Brazil and the Niobec
mine operated by Iamgold in Quebec, Canada,</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_28></A>
<P align=center>- 27 -</P>
<P align=justify><I>Location, Access and Infrastructure</I></P>
<P align=justify>The property is located in the Omineca Mining Division in
British Columbia, Canada, centred at latitude 56&#176;27&#146;N and longitude 123&#176;13&#146;W.
Logging roads from Mackenzie, BC lead to the Ospika Logging Camp on the east
side of Williston Lake. The property is located near the shore of the lake,
about 30 kilometres from the Ospika Camp and is currently accessed via
helicopter. </P>
<P align=justify><I>Property Description</I></P>
<P align=justify>The Aley project consists of 104 contiguous mineral claims that
cover 43,3 square kilometres. All claims are in good standing until January
2021. The claims are 100% owned by us and are not subject to any royalties or
carried interests.</P>
<P align=justify><I>Aley Project History</I></P>
<P align=justify>A previous operator identified six zones from surface
exploration, which included mapping, sampling and trenching. Twenty holes,
totalling 3,058 metres were drilled in 1985-86. Of these, 16 were drilled in the
Saddle, Saddle West and Central zones.</P>
<P align=justify>In 2004, another operator took samples from trenches for
metallurgical testing. Approximately 1200 kilograms of material was collected
from three sites &#150; two in the Central zone and one from the Saddle zone. Sample
analysis was done by Process Research Associates (PRA), and test work was
similar to that developed for the Niobec mine in Quebec. The test work included
de-sliming, magnetic separation, carbonate rougher flotation, niobium rougher
and scavenger flotation, and the first and second niobium rougher and cleaner
flotation stages. Enough work was completed to benchmark reagent use and
operating conditions for unit processes. The results obtained compared favorably
to the operating results at Niobec.</P>
<P align=justify><I>Geology</I></P>
<P align=justify>The Aley project hosts a carbonatite complex that intrudes
Cambrian to Ordovician sedimentary rocks of the Kechika (limestone), Skoki
(dolomite to volcaniclastics), and Road River Group formations (clastic
sedimentary rocks). The intrusion is ovoid in plan with a diameter of
approximately 2 km surrounded for up to 500m by a fenite (quartz-albite syenite)
aureole. . The fenite comprises massive units and occasional breccias. The
carbonatite is predominantly composed of dolomite carbonatite with minor calcite
carbonatite. Niobium (Nb) occurs in the mineral pyrochlore, as crystals that
precipitated from the carbonatite magmas, and has also been altered to other
niobium bearing minerals such as fersmite (Nb-oxide) and columbite (Fe-bearing
Nb-Tantalum oxide). Niobium mineralization occurs in subvertical to moderately
inclined bands that probably formed at the edges of the magma chamber, and which
were elongated during intrusion into the sedimentary rocks.</P>
<P align=justify>Of the six known mineralized zones, the best exploration
results to date have been derived from the Central Zone.</P>
<P align=justify><I>Recent Exploration</I></P>
<P align=justify>Taseko completed an initial exploration program on the Aley
deposit in 2007 that included 11 diamond drill holes to check the results of the
1985-86 drilling program and to plan for subsequent exploration work. No work
was done on the Aley project in 2008 or 2009.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_29></A>
<P align=center>- 28 -</P>
<P align=justify>Taseko completed a significant exploration program on the Aley
project in the summer of 2010, comprising geological mapping and 4,460 metres of
diamond drilling in 23 holes in the Central Zone. These holes intersected
excellent grade niobium mineralization across an area measuring over 900 metres
east-west and 350 metres north-south. Mineralized drill intercepts ranged up to
over 200 metres in length. Niobium mineralization intersected was highly
continuous and close to surface. The extensive body of niobium mineralization
indicated by the 2010 drilling was open to expansion in at least three
directions and to depth.</P>
<P align=justify>In 2011 a drill program completed 17,094 metres over 70 holes
in the central zone. The objective of the drill program was the delineation of
the continuity and extent of Nb mineralization in the Central Zone with infill
drilling. The program also sought to establish a better understanding of the
deposit geometry and the continuity and extent of Nb mineralization.</P>
<P align=justify><I>Sampling and Analysis</I></P>
<P align=justify>Details of sampling and analysis of drill cores are described
in the March 28 2012 technical report, &#147;Technical Report Aley Carbonatite
Niobium Project&#148;. Sample pulps are stored in the Company&#146;s warehouse at Port
Kells, BC. Drill core is stored at the Company&#146;s warehouse in MacKenzie.</P>
<P align=justify><I>Estimates of Mineralization</I></P>
<P align=justify>The 2010 drilling program resulted in the establishment of an
inferred resource of 158 million tonnes grading 0.43% Nb<sub>2</sub>O<sub>5</sub> for the
Central Zone at a 0.2% Nb<sub>2</sub>O<sub>5</sub> cut-off grade as documented in the October 26, 2011 technical report, &#147;Technical Report
Aley Carbonatite Niobium Project&#148;. </P>
<P align=justify>The inclusion of the data from the 2011 drill program resulted
in an increased and upgraded in-pit mineral resource for the Central Zone. The
resource as documented in the March 29, 2012 technical report, &#147;Technical Report
Aley Carbonatite Niobium Project&#148;is summarized in Table 8 for a range of cut-off
grades with the base case of 0.2% Nb<sub>2</sub>O<sub>5</sub> in
boldface. Table 8 uses the terms &lsquo;measured resources&rsquo;, &lsquo;indicated resources&rsquo; and &lsquo;inferred resources&rsquo;.  The Company advises investors that while those terms are recognized and required by Canadian regulations, the SEC does not recognize them. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_30></A>
<P align=center>- 29 -</P>
<P align=justify><B>Table 8: Aley Mineral Resources as at March 1, 2012</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=2 width="100%" border=0>

  <TR vAlign=top>
    <TD rowSpan=2
    align=center nowrap
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"><B>COG %</B> <BR>
      <B>Nb</B><B>2</B><B>O</B><B>5</B>
    </TD>
    <TD width="26%" colSpan=2
    align=center nowrap
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;<B>MEASURED</B> </TD>
    <TD width="3%" align=left nowrap  >&nbsp;</TD>
    <TD width="26%" colSpan=2
    align=center nowrap
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"><B>INDICATED</B> </TD>
    <TD width="3%" align=right nowrap  >&nbsp;</TD>
  <TD width="26%" colSpan=2
    align=center nowrap
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"><B>MEASURED+INDICATED</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD width="13%"
    align=center nowrap
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"><B>Tonnes 000's</B> </TD>
    <TD width="13%"
    align=center nowrap
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"><B>% Nb</B><B>2</B><B>O</B><B>5</B> </TD>
    <TD width="3%" align=right nowrap  >&nbsp;</TD>
    <TD width="13%"
    align=center nowrap
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"><B>Tonnes 000's</B> </TD>
    <TD width="13%"
    align=center nowrap
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"><B>% Nb</B><B>2</B><B>O</B><B>5</B> </TD>
    <TD width="3%" align=right nowrap  >&nbsp;</TD>
    <TD width="13%"
    align=center nowrap
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"><B>Tonnes 000's</B> </TD>
  <TD width="13%"
    align=center nowrap
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"><B>% Nb</B><B>2</B><B>O</B><B>5</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center>0.10 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">137,373 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;0.36 </TD>
    <TD align=right width="3%"  >&nbsp;</TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">215,145 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;0.31 </TD>
    <TD align=right width="3%"  >&nbsp;</TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">352,518 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;0.33 </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center>0.15 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">126,769 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;0.38 </TD>
    <TD align=right width="3%"  >&nbsp;</TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">197,767 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;0.33 </TD>
    <TD align=right width="3%"  >&nbsp;</TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">324,536 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;0.35 </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center><B>0.20</B> </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%"><B>112,651</B> </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;<B>0.41</B> </TD>
    <TD align=right width="3%"  >&nbsp;</TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%"><B>173,169</B> </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;<B>0.35</B> </TD>
    <TD align=right width="3%"  >&nbsp;</TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%"><B>285,820</B> </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;<B>0.37</B> </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center>0.25 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">96,183 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;0.44 </TD>
    <TD align=right width="3%"  >&nbsp;</TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">131,999 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;0.39 </TD>
    <TD align=right width="3%"  >&nbsp;</TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">228,182 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;0.41 </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center>0.30 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">81,377 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;0.47 </TD>
    <TD align=right width="3%"  >&nbsp;</TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">102,966 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;0.42 </TD>
    <TD align=right width="3%"  >&nbsp;</TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">184,343 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;0.45 </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="13%">&nbsp; </TD>
    <TD width="13%">&nbsp; </TD>
    <TD width="3%"  >&nbsp;</TD>
    <TD width="13%">&nbsp; </TD>
    <TD width="13%">&nbsp; </TD>
    <TD width="3%"  >&nbsp;</TD>
    <TD width="13%">&nbsp; </TD>
    <TD width="13%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center rowSpan=2><B>COG %</B> <BR><B>Nb</B><B>2</B><B>O</B><B>5</B>
    </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="26%" colSpan=2><B>INFERRED</B> </TD>
    <TD align=left width="3%"  >&nbsp;</TD>
    <TD align=left width="13%">&nbsp; </TD>
    <TD align=left width="13%">&nbsp; </TD>
    <TD align=left width="3%"  >&nbsp;</TD>
    <TD align=left width="13%">&nbsp; </TD>
    <TD align=left width="13%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="13%"><B>Tonnes 000's</B> </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="13%"><B>% Nb</B><B>2</B><B>O</B><B>5</B> </TD>
    <TD align=left width="3%"  >&nbsp;</TD>
    <TD align=left width="13%">&nbsp; </TD>
    <TD align=left width="13%">&nbsp; </TD>
    <TD align=left width="3%"  >&nbsp;</TD>
    <TD align=left width="13%">&nbsp; </TD>
    <TD align=left width="13%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center>0.10 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">177,350 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;0.29 </TD>
    <TD align=left width="3%"  >&nbsp;</TD>
    <TD align=left width="13%">&nbsp; </TD>
    <TD align=left width="13%">&nbsp; </TD>
    <TD align=left width="3%"  >&nbsp;</TD>
    <TD align=left width="13%">&nbsp; </TD>
    <TD align=left width="13%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center>0.15 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">168,733 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;0.30 </TD>
    <TD align=left width="3%"  >&nbsp;</TD>
    <TD align=left width="13%">&nbsp; </TD>
    <TD align=left width="13%">&nbsp; </TD>
    <TD align=left width="3%"  >&nbsp;</TD>
    <TD align=left width="13%">&nbsp; </TD>
    <TD align=left width="13%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center><B>0.20</B> </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%"><B>144,216</B> </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;<B>0.32</B> </TD>
    <TD align=left width="3%"  >&nbsp;</TD>
    <TD align=left width="13%">&nbsp; </TD>
    <TD align=left width="13%">&nbsp; </TD>
    <TD align=left width="3%"  >&nbsp;</TD>
    <TD align=left width="13%">&nbsp; </TD>
    <TD align=left width="13%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center>0.25 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">97,891 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;0.37 </TD>
    <TD align=left width="3%"  >&nbsp;</TD>
    <TD align=left width="13%">&nbsp; </TD>
    <TD align=left width="13%">&nbsp; </TD>
    <TD align=left width="3%"  >&nbsp;</TD>
    <TD align=left width="13%">&nbsp; </TD>
    <TD align=left width="13%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center>0.30 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">68,976 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=right width="13%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;0.41 </TD>
    <TD align=left width="3%"  >&nbsp;</TD>
    <TD align=left width="13%">&nbsp; </TD>
    <TD align=left width="13%">&nbsp; </TD>
    <TD align=left width="3%"  >&nbsp;</TD>
    <TD align=left width="13%">&nbsp; </TD>
    <TD align=left width="13%">&nbsp; </TD></TR></TABLE>
<P align=justify>The resource is constrained by a 45&#176;wall slope Lerchs-Grossman
pit assuming a metal price of US$50/kg Nb with process recovery of 50%. General
&amp; administration, processing and ore mining costs were assumed to be
$30/tonne. Base waste mining costs were assumed to be $1.50/tonne.</P>
<P align=justify><I>Exploration and Development</I></P>
<P align=justify>The Company plans to continue work on the project in 2012.
Field work will be focused on geotechnical investigation of pit, plant site and
tailings facility as well as environmental studies. Engineering is progressing
with respect to pit design, metallurgical test work, site facilities, and
infrastructure requirements.</P>
<P align=justify><B>Harmony Project</B></P>
<P align=justify>Gibraltar Mines Ltd., a subsidiary of Taseko Mines Limited,
acquired the Harmony gold project in October 2001 through a transaction with
Continental Minerals Corporation (formerly Misty Mountain Gold Ltd.) for
consideration of $2.23 million in cash and the issuance of tracking preferred
shares in Gibraltar&#146;s capital stock. The tracking preferred shares were
exchanged for Taseko common shares in 2011.</P>
<P align=justify>As there had not been significant exploration or development
conducted on the Harmony project for several years, due to historically low gold
prices, the Harmony gold property was written down to a nominal value in 2004.
The Company is considering further technical studies of Harmony.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_31></A>
<P align=center>- 30 -</P>
<P align=justify><I>Location, Access and Infrastructure</I></P>
<P align=justify>The Harmony project is located at latitude 53<SUP>o </SUP>31&#146; N
and longitude 132<SUP>o </SUP>13&#146; W in the Skeena Mining Division, on Graham
Island, Queen Charlotte Islands (also known as Haida Gwaii), on the
north-western coast of British Columbia, Canada.</P>
<P align=justify><I>Property Description</I></P>
<P align=justify>The Harmony project comprises of 58 mineral claims and 177
square kilometres. All claims are in good standing until July 2012. The claims
are 100% owned by Taseko and are not subject to any royalties or carried
interests.</P>
<P align=justify><I>Exploration History</I></P>
<P align=justify>Prospectors discovered mineralization at Harmony in 1970. The
project claims were optioned by various companies during the period 1970 to
1975, which carried out geological mapping, geochemical surveys and minor
drilling. Consolidated Cinola Mines Ltd. acquired the ground in 1977 and, with
partners, carried out detailed drilling totalling 30,116 metres in 231 holes by
1984. In 1981, 465 metres of an underground drift and crosscuts were excavated
for a metallurgical bulk sample. A 45 tonne per day pilot mill was established
to treat about 5,200 tonnes of material and in 1982 a feasibility study for a
10,000-15,000 tonnes per day operation was completed. From 1986 to 1988, City
Resources drilled 83 diamond drill holes and 64 reverse-circulation drill holes,
totalling 13,356 metres, and completed 117.6 metres of underground development
to obtain a bulk sample, conducted bench scale metallurgical testing, and
developed open pit scenarios for the project. Barrack Gold of Australia acquired
City Resources and the project in 1989, however Barrack subsequently was put
into bankruptcy and City Resources was acquired in the early 1990&#146;s by a new
group of investors who renamed the company to Misty Mountain Gold Ltd. From 1989
&#150; 1999, additional drilling, metallurgical and engineering studies were carried
out at the Harmony project.</P>
<P align=justify><I>Geology and Mineralization</I></P>
<P align=justify>The Harmony project hosts the Specogna epithermal gold deposit,
controlled by the Sandspit fault. Dacite dykes of Tertiary age have intruded
along the fault. Contemporaneous, pervasive silicification, hydrothermal
brecciation, stockwork and banded quartz veining and gold mineralization have
developed along the hanging wall of the fault. This extends for a strike
distance of at least 800 metres, eastwards from the fault at least 200 metres
and to a depth of at least 240 metres. Pyrite and marcasite are the dominant
metallic minerals. Gold occurs as native gold and electrum, which are commonly
visible. Silver is also present as an alloy with gold.</P>
<P align=justify><I>Sampling and Analysis</I></P>
<P align=justify>Details of sampling and analysis of drill cores are described
in the 2004 Annual Information Form. Sample pulps are stored in the Company&#146;s
warehouse at Port Kells, BC. Drill core is stored at site.</P>
<hr style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noshade size=5>
<a name=page_32></a>
<p align=center>- 31 -</p>
<P align=justify><I>Estimates of Mineralization</I></P>
<P align=justify>In 2001, measured and indicated resources were estimated by the
Company based on various reports to be 64 million tonnes grading 1.53 grams
Au/tonne, containing approximately 3 million ounces of gold. There were also
inferred resources estimated at 21 million tonnes grading 1.04 grams Au/tonne.
The estimates were done at a 0.60 grams Au/tonne cut-off.</P>
<P align=justify><I>Aboriginal Issues</I></P>
<P align=justify>The Queen Charlotte Islands-Haida Gwaii, including the area
surrounding the Harmony gold project, is subject to aboriginal peoples&#146; land
claims. Aboriginal land claims are subject to the B.C. Treaty Commission
Legislation and the B.C. Treaty Commission, both established in 1993.</P>
<P align=justify><I>Exploration and Development</I></P>
<P align=justify>In late 2007, after completion of the Queen Charlotte-Haida
Gwaii Land and Resource Management Plan designated the area in which the Harmony
project is located as a mineral development zone, Taseko has initiated a review
of the metallurgical flow sheet and prior mine development planning to establish
further work programs. </P>
<P align=justify><B><FONT color=#0099FF size="3">RISK FACTORS</FONT></B></P>
<P align=justify>There are a number of risks that may have a material and
adverse impact on the future operating and financial performance of Taseko and
could cause the Company&#146;s operating and financial performance to differ
materially from the estimates described in forward-looking statements relating
to the Company. </P>
<P align=justify><B><I>Changes in the market price of copper, gold and other
metals, which are volatile and have fluctuated widely, affect the profitability
of our operations and financial condition.</I></B></P>
<P align=justify>Our profitability and long-term viability depend, in large
part, upon the market price of copper, gold and other metals and minerals
produced from our mineral properties. The market price of copper, gold and other
metals is volatile and is affected by numerous factors beyond our control,
including:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>expectations with respect to the rate of inflation;
  <LI>the relative strength of the U.S. dollar and certain other currencies;
  <LI>interest rates;
  <LI>global or regional political or economic conditions, including interest
  rates and currency values;
  <LI>supply and demand for industrial products and jewelry containing metals;
  and
  <LI>sales by central banks and other holders, speculators and producers of
  copper, gold and other metals in response to any of the above factors.
</LI></UL>
<P align=justify>A decrease in the market price of copper, gold and other metals
could affect our ability to finance the development of the New Prosperity
Project and the exploration and development of our other mineral properties, including the Gibraltar Mine,
which could have a material adverse effect on our financial condition and
results of operations. Copper and gold prices are near a historical high and
there can be no assurance that the market price of copper and other metals will
remain at current levels or that such prices will improve. There is no assurance
that if commercial quantities of copper, gold 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>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_33></A>
<P align=center>- 32 -</P>
<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>environmental hazards;
  <LI>industrial accidents;
  <LI>metallurgical and other processing problems;
  <LI>unusual or unexpected rock formations;
  <LI>structural cave-ins or slides;
  <LI>flooding;
  <LI>fire;
  <LI>metals losses; and
  <LI>periodic interruptions due to inclement or hazardous weather conditions.
  </LI></UL>
<P align=justify>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 our business if we incur
losses related to any significant events that are not covered by its insurance
policies.</P>
<P align=justify><B><I>Lack of infrastructure could delay or prevent us from
developing advanced projects.</I></B></P>
<P align=justify>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>the development of our projects will be commenced or completed on a timely
  basis, if at all;
  <LI>the resulting operations will achieve the anticipated production volume;
  or
  <LI>the construction costs and ongoing operating costs associated with the
  development of our advanced projects will not be higher than anticipated.
</LI></UL>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_34></A>
<P align=center>- 33 -</P>
<P align=justify><B><I>We are subject to significant governmental
regulation.</I></B></P>
<P align=justify>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>environmental protection;
  <LI>management and use of toxic substances and explosives;
  <LI>management of tailings and other wastes generated by our operations;
  <LI>management of natural resources;
  <LI>exploration and development of mines, production and post-closure
  reclamation;
  <LI>exports;
  <LI>price controls;
  <LI>taxation;
  <LI>regulations concerning business dealings with First Nations groups;
  <LI>labour standards and occupational health and safety, including mine
  safety; and
  <LI>historic and cultural preservation. </LI></UL>
<P align=justify>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>
<P align=justify><B><I>There are risks associated with the New Prosperity
Project.</I></B></P>
<P align=justify>On January 14, 2010, Taseko received an environmental
assessment certificate for the Prosperity Project from the British Columbia
Provincial Ministry of Environment. Applications for Provincial permits were
submitted in June 2010 but were put in abeyance following the November 2010
Federal decision. In November 2010, the Federal Minister of Environment
announced that the Prosperity Project, as proposed, could not be granted Federal
authorizations to proceed. The Company submitted a new project description to
the Federal Government in February 2011. Failure to obtain certificates and
permits in a timely manner or at all will delay or even lead to abandonment of
the New Prosperity Project, which could negatively affect the Company.</P>
<P align=justify>Furthermore, the feasibility of the Prosperity Project 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 these prices, which are 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>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_35></A>
<P align=center>- 34 -</P>
<P align=justify>The New Prosperity Project will require substantial financing,
including a possible combination of debt and equity financing. On May 12, 2010,
the Company entered into a gold stream transaction agreement with Franco-Nevada Corporation
(&#147;Franco-Nevada&#148;), whereby the Company may receive funding in staged deposits
totalling US $350 million. The investment by Franco-Nevada is subject to (among
other conditions) the condition precedent that the New Prosperity project plan
that we had agreed with them must receive appropriate governmental approval.
Because our revised New Prosperity project plan is not the one we agreed with
Franco-Nevada in 2010, this condition will not be satisfied, and so
Franco-Nevada may currently terminate this agreement on ten business days&#146;
written notice to Taseko. However, we believe Franco-Nevada currently has no
economic incentive to do so and is awaiting the outcome of our new proposal to
the Canadian federal environmental authorities. If our revised mine proposal is
ultimately accepted by the authorities, we intend to seek Franco-Nevada
agreement to reconfirm the terms of our gold stream transaction with them, but
there is no assurance that Franco-Nevada will agree to provide such
reconfirmation. Until then, Franco-Nevada could terminate the agreement. There
is also a risk that Franco-Nevada will be unable to fund its obligations at the
time we receive the necessary approvals. The investment by Franco-Nevada is also
subject to certain other conditions precedent which the Company may not be able
to satisfy. There can be no assurance that gold stream, debt 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><I>We are subject to risks associated with joint
ventures.</I></B></P>
<P align=justify>Taseko participates in a joint venture with Cariboo with
respect to the Gibraltar Mine. Taseko may enter into more joint ventures in the
future with other third parties. There are risks associated with joint ventures,
including, for example:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>disagreement with a venture counterparty about how to develop, operate or
  finance a project;
  <LI>that a venture counterparty may at any time have economic or business
  interests or goals which are, or which become, inconsistent with our business
  interests or goals;
  <LI>that a venture counterparty may not comply with a joint venture agreement;

  <LI>the possibility that a venture counterparty in an investment might become
  bankrupt;
  <LI>that such venture counterparty may be in a position to take action
  contrary to Taseko&#146;s instructions or requests or contrary to Taseko&#146;s policies
  or objectives,
  <LI>possible litigation between joint venture counterparty about joint venture
  matters;
  <LI>the inability to exert control over decisions related to a joint venture
  that Taseko does not have a controlling interest in; or
  <LI>the possibility that Taseko may not be able to sell its interest in the
  joint venture if it desires to exit the joint venture.
  <LI>These risks could result in legal liability, affect our ability to develop
  or operate a project under a joint venture, or have a material and adverse
  effect on our earnings, cash flows, financial condition or results of
  operations. </LI></UL>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=center>- 35 -</P>
<P align=justify><B><I>We are currently dependent on the Gibraltar Mine and
suspension of production at that mine may materially adversely affect our
business.</I></B></P>
<P align=justify>We are in the process of developing the Prosperity Project, the
Harmony Project and the Aley Project. Therefore, until these other mines are
developed and operational and are beginning to have revenue, we are dependent
upon the Gibraltar Mine for revenues. If the Gibraltar Mine were to cease
production for any reason, it would have a material adverse effect on our
results of operations, business and financial position.</P>
<P align=justify><B><I>Our future success depends upon our ability to develop
our existing reserves.</I></B></P>
<P align=justify>We have not yet received the permits necessary to mine all of
our proven and probable reserves that are economically recoverable. In order to
develop our proven and probable reserves, we must receive various governmental
permits. We make no assurances that we will be able to obtain the governmental
permits that we would need to continue developing our proven and probable
services. Furthermore, we may not be able to mine all of our proven and probable
reserves as profitably as we do at our current operations.</P>
<P align=justify>Our mining operations are conducted on properties owned or
leased by us. We may not be able to negotiate new leases or obtain contracts for
properties containing surface, underground or subsidence rights necessary to
develop any of our proven and probable reserves. Additionally, we may not be
able to maintain our leasehold interest in properties on which mining operations
are not commenced during the term of the lease.</P>
<P align=justify><B><I>Our mines, which are still under development, may not
achieve anticipated productive capacity, may experience unanticipated costs or
may be delayed or not completed at all.</I></B></P>
<P align=justify>Our mines are still under development. The development of a
mine is a complex and challenging process that may take longer and cost more
than predicted, or not be completed at all. In addition, anticipated productive
capacity may not be achieved. We may encounter unforeseen geological conditions
or delays in obtaining required construction, environmental or operating permits
or mine design adjustments. Construction delays cause reduced production and
cash flow while certain fixed costs, such as minimum royalties, must still be
paid on a predetermined schedule.</P>
<P align=justify><B><I>As our existing copper and molybdenum supply agreements
expire, our revenues and operating profits could be negatively impacted if we
are unable to extend existing agreements or enter into new agreements due to
competition, changing copper and molybdenum purchasing patterns or other
variables.</I></B></P>
<P align=justify>As our copper and molybdenum supply agreements at the Gibraltar
Mine expire, we will compete with other copper and molybdenum suppliers to renew
these agreements or to obtain new sales. To the extent our other mines in
operation do not have contracts for copper and molybdenum or if we cannot renew
these copper and molybdenum supply agreements with our customers or find
alternate customers willing to purchase our copper and molybdenum, our revenue
and operating profits could suffer.</P>
<P align=justify>Our customers may decide not to extend existing agreements or
enter into new long-term contracts or, in the absence of long-term contracts,
may decide to purchase less copper and molybdenum than in the past or on
different terms, including under different concentrate pricing terms. To the
degree that we operate outside of long-term contracts, our revenues are subject
to pricing in the concentrate spot market that can be
significantly more volatile than the pricing structure negotiated through a
long-term copper and molybdenum concentrate supply agreement. This volatility
could adversely affect the profitability of our operations if conditions in the
spot market pricing for copper and molybdenum concentrate are unfavourable.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<P align=center>- 36 -</P>
<P align=justify><B><I>Our business requires substantial capital
expenditures.</I></B></P>
<P align=justify>Our business is capital intensive due to construction of new
mines and infrastructure and maintenance of existing operations. Specifically,
the exploration, permitting and development of reserves, mining costs, the
maintenance of machinery and equipment and compliance with applicable laws and
regulations require substantial capital expenditures. While a significant amount
of the capital expenditures required to build-out our mine has been spent, we
must continue to invest capital to maintain or to increase the amount of
reserves that we develop and the amount of metal that we produce. We cannot
assure you that we will be able to maintain our production levels or generate
sufficient cash flow, or that we will have access to sufficient financing to
continue our production, exploration, permitting and development activities at
or above our present levels and we may be required to defer all or a portion of
our capital expenditures. Our business, results of operations and financial
condition may be adversely affected if we cannot make such capital
expenditures.</P>
<P align=justify><B><I>We operate our mines with a limited and efficient work
force. Our ability to operate our company efficiently could be impaired if we
lose key personnel or fail to continue to attract qualified
personnel.</I></B></P>
<P align=justify>We manage our business with a number of key personnel at each
location, including key contractors, the loss of a number of whom could have a
material adverse effect on us. In addition, as our business develops and
expands, we believe that our future success will depend greatly on our continued
ability to attract and retain highly-skilled and qualified personnel and
contractors. We cannot be certain that key personnel will continue to be
employed by us or that we will be able to attract and retain qualified personnel
and contractors in the future. Failure to retain or attract key personnel could
have a material adverse effect on us.</P>
<P align=justify><B><I>Any change in consumption patterns of copper could affect
our ability to sell the copper we produce.</I></B></P>
<P align=justify>The copper market is volatile and cyclical and consumption of
copper is influenced by global economic growth, trends in industrial production
and conditions in the housing and automotive industries and economic growth in
China, which is the largest consumer of refined copper in the world. Should
demand weaken and consumption patterns change, in particular, if consumers seek
out lower cost substitute materials, the price of copper could be adversely
affected, which could negatively affect our results of operations.</P>
<P align=justify><B><I>Capital costs may increase at the GDP3 expansion
project.</I></B></P>
<P align=justify>Capital costs with respect to GDP3 expansion are inherently
uncertain, particularly beyond one year, and could change materially over time.
Capital costs may increase significantly beyond what we or others in the mining
industry anticipate. Capital costs may vary from estimates for a variety of
reasons, including, among others:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>failure to obtain and maintain the necessary regulatory and partner
  approvals; </LI></UL>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_38></A>
<P align=center>- 37 -</P>
<UL style="TEXT-ALIGN: justify">
  <LI>natural phenomena, such as inclement weather conditions or floods;
  <LI>labour shortages or strikes;
  <LI>delay or lack of success completing construction activities; or
  <LI>delays, interruption or reduction in production or construction activities
  due to fires, failure of critical equipment, shortage of supplies, underground
  floods, earthquakes, tailings dam failures, lack of tailings capacity, ground
  movements and cave-ins, or other difficulties. </LI></UL>
<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>The mining industry is intensely competitive. Significant
competition exists for the acquisition of properties producing or capable of
producing copper, gold or other metals. We may be at a competitive disadvantage
in acquiring additional mining properties because we 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 our 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>Recent increases in copper, gold 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><FONT color=#0099FF size="3">DIVIDENDS</FONT></B></P>
<P align=justify>The Company has paid no dividends in any of the three years
ending December 31, 2011. The Company has no plans to pay a dividend in the
foreseeable future.</P>
<P align=justify><B><FONT color=#0099FF size="3">DESCRIPTION OF CAPITAL STRUCTURE
</FONT></B></P>
<P align=justify><B>Share Capital</B></P>
<P align=justify>Taseko&#146;s share capital consists of an unlimited number of no
par value common shares. As of March 28, 2012, there were 194,894,935 common
shares issued and outstanding as fully paid and non-assessable.</P>
<P align=justify>The holders of Taseko&#146;s common shares are entitled to one vote
for each share on all matters submitted to a vote of shareholders.</P>
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<P align=center>- 38 -</P>
<P align=justify>There have been no changes in the classification of common
shares (reclassifications, consolidations, reverse splits or the like) within
the previous five years. All common shares of Taseko rank <I>pari passu
</I>(i.e. equally) for the payment of any dividends and distributions in the
event of a windup.</P>
<P align=justify>There are no constraints imposed on the foreign ownership of
securities of Taseko however an acquisition of control of Taseko by a
non-Canadian would be subject to a review by the Canadian government under its
foreign investment laws.</P>
<P align=justify><B>Senior Notes</B></P>
<P align=justify>The Company has US$200 million aggregate principal amount of
publicly-traded senior notes (&#147;Notes&#148;) due in 2019, bearing interest at an
annual rate of 7.75% . The Company may redeem some or all of the Notes at any
time on or after April 15, 2015 at redemption prices ranging from 103.875% to
100%, plus accrued and unpaid interest to the date of redemption. Prior to April
15, 2015, all or part of the Notes may be redeemed at 100% plus a make-whole
premium, plus accrued and unpaid interest to the date of redemption. In
addition, until April 15, 2014, the Company may redeem up to 35% of the
principal amount of Notes, in an amount not greater than the net proceeds of
certain equity offerings, at a redemption price of 107.75%, plus accrued and
unpaid interest to the date of redemption. The Notes are guaranteed on a senior
unsecured basis by two of the Company&#146;s existing subsidiaries, and future
subsidiaries of the Company other than immaterial subsidiaries. The subsidiary
guarantees are, in turn, guaranteed by the Company.</P>
<P align=justify><B>Ratings</B></P>
<P align=justify>The following table sets out the ratings of Taseko&#146;s senior
notes by the rating agencies indicated as at March 28, 2012:</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>&nbsp; </TD>
    <TD align=center width="66%" colSpan=2>&nbsp;<B>Rating Agency</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=center width="33%"><B>Standard &amp; Poor&#146;s Rating Services</B>
    </TD>
    <TD align=center width="33%"><B>Moody&#146;s Investor Services</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Senior Notes </TD>
    <TD align=center width="33%">B </TD>
    <TD align=center width="33%">B3 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Trend/Outlook </TD>
    <TD align=center width="33%">Stable </TD>
    <TD align=center width="33%">Stable </TD></TR></TABLE></DIV>
<P align=justify>Standard &amp; Poor&#146;s Rating Services&#146; (&#147;S&amp;P&#148;) credit
ratings are on a long-term rating scale that ranges from AAA to D, which
represents the range from highest to lowest quality of such securities rated.
S&amp;P has assigned Taseko a corporate credit rating of B and a credit rating
of B on the senior notes. According to the S&amp;P, this rating generally means
the relevant issue currently has the capacity to meet its finance commitments,
but that adverse business, financial, or economic conditions will likely impair
the relevant issuer&#146;s capacity or willingness to meet its financial commitments.
S&amp;P adds that an issuer or obligation rated &#145;B&#146; should be able to withstand
a mild level of stress and still meet its financial obligations. The ratings
from AAA to D may be modified by the addition of a plus (+) or a minus (-) sign
to show relative standing within the major categories. In addition, S&amp;P may
add a rating outlook of &#147;positive&#148;, &#147;negative&#148; or &#147;stable&#148; which assesses the
potential direction of a long-term credit rating over the intermediate term
(typically six months to two years).</P>
<P align=justify>Moody&#146;s Investor Services&#146; (&#147;Moody&#146;s&#148;) credit ratings are on a
long-term debt rating scale that ranges from Aaa to C, which represents the
range from highest to lowest quality of such securities rated. Moody&#146;s has
assigned Taseko a corporate family credit rating of B3and a credit rating of B3
on the senior notes. According to Moody&#146;s, this rating generally means that the obligations are considered speculative and are subject to
high credit risk. Moody&#146;s appends numerical modifiers 1, 2 and 3to each generic
rating classification from AA through C. The modifier 1 indicates that the
security ranks in the higher end of its generic rating category, the modifier 2
indicates a mid-range ranking and the modifier 3 indicates a ranking in the
lower end of the generic category.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_40></A>
<P align=center>- 39 -</P>
<P align=justify>We understand that the credit ratings accorded to the senior
notes by S&amp;P and Moody&#146;s are not recommendations to purchase, hold or sell
the senior notes as such ratings do not comment as to market price or
suitability for a particular investor. There is no assurance that any rating
will remain in effect for any given period of time or that any rating will not
be revised or withdrawn entirely by a rating agency in the future if, in its
judgment, circumstances so warrant.</P>
<P align=justify><B><FONT color=#0099FF size="3">MARKET FOR SECURITIES</FONT></B></P>
<P align=justify>Taseko&#146;s common shares are listed on the Toronto Stock Exchange
(TSX) and the NYSE Amex Equities Exchange under the symbols TKO and TGB,
respectively. The following table shows the price ranges and volume traded by
month in 2011, based on trading information published by each Exchange. </P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD align=left nowrap>&nbsp; </TD>
    <TD width="42%" colSpan=3 align=center nowrap><B>Toronto Stock Exchange </B></TD>
    <TD width="42%" colSpan=3 align=center nowrap><B>NYSE Amex Equities Exchange
    </B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=center nowrap><BR>
      <BR><B>2011 </B></TD>
    <TD width="14%" align=center nowrap><BR>
      <BR><B>High (C$) </B></TD>
    <TD width="14%" align=center nowrap><BR>
      <BR><B>Low (C$) </B></TD>
    <TD width="14%" align=center nowrap><B>Average </B><BR>
      <B>Daily Share
      </B><BR><B>Volume </B></TD>
    <TD width="14%" align=center nowrap><BR>
      <BR><B>High (US$) </B></TD>
    <TD width="14%" align=center nowrap><BR>
      <BR><B>Low (US$) </B></TD>
    <TD width="14%" align=center nowrap><B>Average </B><BR>
      <B>Daily Share
      </B><BR><B>Volume </B></TD></TR>
  <TR vAlign=top>
    <TD align=left>December </TD>
    <TD align=center width="14%">3.22 </TD>
    <TD align=center width="14%">2.55 </TD>
    <TD align=right width="14%">457,900 </TD>
    <TD align=center width="14%">3.18 </TD>
    <TD align=center width="14%">2.50 </TD>
    <TD align=right width="14%">879,000 </TD></TR>
  <TR vAlign=top>
    <TD align=left>November </TD>
    <TD align=center width="14%">3.90 </TD>
    <TD align=center width="14%">2.81 </TD>
    <TD align=right width="14%">419,300 </TD>
    <TD align=center width="14%">3.82 </TD>
    <TD align=center width="14%">2.70 </TD>
    <TD align=right width="14%">&nbsp; &nbsp; &nbsp;1,016,300 </TD></TR>
  <TR vAlign=top>
    <TD align=left>October </TD>
    <TD align=center width="14%">3.82 </TD>
    <TD align=center width="14%">2.45 </TD>
    <TD align=right width="14%">608,500 </TD>
    <TD align=center width="14%">3.85 </TD>
    <TD align=center width="14%">2.30 </TD>
    <TD align=right width="14%">&nbsp; &nbsp; &nbsp;1,307,000 </TD></TR>
  <TR vAlign=top>
    <TD align=left>September </TD>
    <TD align=center width="14%">4.00 </TD>
    <TD align=center width="14%">2.60 </TD>
    <TD align=right width="14%">459,400 </TD>
    <TD align=center width="14%">4.09 </TD>
    <TD align=center width="14%">2.50 </TD>
    <TD align=right width="14%">&nbsp; &nbsp; &nbsp;1,424,900 </TD></TR>
  <TR vAlign=top>
    <TD align=left>August </TD>
    <TD align=center width="14%">4.31 </TD>
    <TD align=center width="14%">3.20 </TD>
    <TD align=right width="14%">743,300 </TD>
    <TD align=center width="14%">4.61 </TD>
    <TD align=center width="14%">3.23 </TD>
    <TD align=right width="14%">&nbsp; &nbsp; &nbsp;2,104,700 </TD></TR>
  <TR vAlign=top>
    <TD align=left>July </TD>
    <TD align=center width="14%">4.95 </TD>
    <TD align=center width="14%">4.23 </TD>
    <TD align=right width="14%">344,600 </TD>
    <TD align=center width="14%">5.08 </TD>
    <TD align=center width="14%">4.41 </TD>
    <TD align=right width="14%">&nbsp; &nbsp; &nbsp;1,253,500 </TD></TR>
  <TR vAlign=top>
    <TD align=left>June </TD>
    <TD align=center width="14%">5.05 </TD>
    <TD align=center width="14%">4.09 </TD>
    <TD align=right width="14%">504,600 </TD>
    <TD align=center width="14%">5.18 </TD>
    <TD align=center width="14%">4.16 </TD>
    <TD align=right width="14%">&nbsp; &nbsp; &nbsp;1,373,900 </TD></TR>
  <TR vAlign=top>
    <TD align=left>May </TD>
    <TD align=center width="14%">5.23 </TD>
    <TD align=center width="14%">4.62 </TD>
    <TD align=right width="14%">494,900 </TD>
    <TD align=center width="14%">5.44 </TD>
    <TD align=center width="14%">4.72 </TD>
    <TD align=right width="14%">&nbsp; &nbsp; &nbsp;1,404,700 </TD></TR>
  <TR vAlign=top>
    <TD align=left>April </TD>
    <TD align=center width="14%">5.84 </TD>
    <TD align=center width="14%">4.95 </TD>
    <TD align=right width="14%">414,200 </TD>
    <TD align=center width="14%">6.08 </TD>
    <TD align=center width="14%">5.20 </TD>
    <TD align=right width="14%">&nbsp; &nbsp; &nbsp;1,426,700 </TD></TR>
  <TR vAlign=top>
    <TD align=left>March </TD>
    <TD align=center width="14%">6.22 </TD>
    <TD align=center width="14%">5.13 </TD>
    <TD align=right width="14%">619,500 </TD>
    <TD align=center width="14%">6.38 </TD>
    <TD align=center width="14%">5.18 </TD>
    <TD align=right width="14%">&nbsp; &nbsp; &nbsp;2,276,700 </TD></TR>
  <TR vAlign=top>
    <TD align=left>February </TD>
    <TD align=center width="14%">6.31 </TD>
    <TD align=center width="14%">5.67 </TD>
    <TD align=right width="14%">854,300 </TD>
    <TD align=center width="14%">6.37 </TD>
    <TD align=center width="14%">5.69 </TD>
    <TD align=right width="14%">&nbsp; &nbsp; &nbsp;3,330,300 </TD></TR>
  <TR vAlign=top>
    <TD align=left>January </TD>
    <TD align=center width="14%">6.10 </TD>
    <TD align=center width="14%">4.84 </TD>
    <TD align=right width="14%">1,089,400 </TD>
    <TD align=center width="14%">6.08 </TD>
    <TD align=center width="14%">4.85 </TD>
    <TD align=right width="14%">&nbsp; &nbsp; &nbsp;4,066,600
</TD></TR></TABLE></DIV>
<P align=justify><B><FONT color=#0099FF size="3">DIRECTORS AND OFFICERS</FONT></B></P>
<P align=justify>As at March 28, 2012, the directors and executive officers of
Taseko, as a group, beneficially owned, directly or indirectly, or exercised
control or direction over 3,582,008 common shares, representing less than two
percent of the total number of common shares outstanding before giving effect to
the exercise of options to purchase common shares held by such directors and
executive officers. The statement as to the number of common shares beneficially
owned, directly or indirectly, or over which control or direction is exercised
by the directors and executive officers of Taseko as a group is based upon
information furnished by the directors and officers.</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>Name, Position and Office, and </B></TD>
    <TD align=left width="25%" ><B>Period a Director and/or
    </B></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Province or
      State and Country of Residence </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%"
    ><B>Officer of Taseko </B></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="25%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Directors </B></TD>
    <TD align=left width="25%" bgColor=#e6efff >&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="25%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>William Armstrong, Director <BR>Surrey,
      British Columbia, Canada </TD>
    <TD align=left width="25%" bgColor=#e6efff >Since May 2006
      <BR></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>- 40 -</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>Name, Position and Office, and</B> </TD>
    <TD align=left width="25%" ><B>Period a Director and/or</B>
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Province or
      State and Country of Residence</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="25%"
    ><B>Officer of Taseko</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="25%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>T. Barry Coughlan, Director <BR>Vancouver,
      British Columbia, Canada </TD>
    <TD align=left width="25%" bgColor=#e6efff >Since February
      2001 <BR></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="25%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Scott D. Cousens, Director <BR>Vancouver,
      British Columbia, Canada </TD>
    <TD align=left width="25%" bgColor=#e6efff >Since October
      1992 <BR></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="25%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Robert A. Dickinson, Director <BR>Lions
      Bay, British Columbia, Canada </TD>
    <TD align=left width="25%" bgColor=#e6efff >Since January
      1991 <BR></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="25%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Russell E. Hallbauer, President, Chief
      Executive Officer and Director <BR>West Vancouver, British Columbia,
      Canada </TD>
    <TD align=left width="25%" bgColor=#e6efff >Since July 2005
      <BR></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="25%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Wayne Kirk, Director <BR>Orcas, Washington,
      USA </TD>
    <TD align=left width="25%" bgColor=#e6efff >Since July 2004
      <BR></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="25%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Alex Morrison, Director <BR>Bellingham,
      Washington, USA </TD>
    <TD align=left width="25%" bgColor=#e6efff >Since April 2011
      <BR></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="25%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Richard Mundie, Director <BR>Vancouver,
      British Columbia, Canada </TD>
    <TD align=left width="25%" bgColor=#e6efff >Since January
      2010 <BR></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="25%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Ronald W. Thiessen, Chairman of the Board
      and Director <BR>West Vancouver, British Columbia, Canada </TD>
    <TD align=left width="25%" bgColor=#e6efff >Since October
      1993 <BR></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="25%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Executive Officers </TD>
    <TD align=left width="25%" bgColor=#e6efff >&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="25%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Brian Battison, Vice President Corporate
      Affairs <BR>Tsawwassen, British Columbia, Canada </TD>
    <TD align=left width="25%" bgColor=#e6efff >Since September
      2007 <BR></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="25%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Scott Jones, Vice President, Engineering
      <BR>North Vancouver, British Columbia, Canada </TD>
    <TD align=left width="25%" bgColor=#e6efff >Since December
      2007 <BR></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="25%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>John W. McManus, Senior Vice President,
      Operations <BR>West Vancouver, British Columbia, Canada </TD>
    <TD align=left width="25%" bgColor=#e6efff >Since October
      2005 <BR></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="25%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Peter Mitchell, Chief Financial Officer
      <BR>West Vancouver, British Columbia, Canada </TD>
    <TD align=left width="25%" bgColor=#e6efff >Since September
      2008 <BR></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="25%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>David Rouleau, Vice President, Operations
      <BR>Vancouver, British Columbia, Canada </TD>
    <TD align=left width="25%" bgColor=#e6efff >Since June 2010
      <BR></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="25%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Trevor Thomas, Secretary <BR>Vancouver,
      British Columbia, Canada </TD>
    <TD align=left width="25%" bgColor=#e6efff >Since August 2008
      <BR></TD></TR></TABLE>
<P align=justify>Except where indicated, each director and senior officer of
Taseko has held the same or similar principal occupation with the organization
indicated or a predecessor thereof for the last five years.</P>
<P align=justify>At the annual general meeting held in June 2011 all the
directors listed above were re-elected to a term of office expiring at the next
annual general meeting of Taseko, which is currently scheduled for June 2012.
Some of the directors serve together on a number of boards of other publicly
listed companies.</P>
<P align=justify>Although the directors oversee the management of Taseko&#146;s
affairs, a cost sharing arrangement exists between a number of the public
resource companies on which several of the directors serve pursuant to a
corporate services agreement with Hunter Dickinson Services Inc. (&#147;HDSI&#148;) dated
July 2, 2010. HDSI is a private company which until recently was owned equally
by eight public companies, one of which was Taseko. HDSI provides executive,
engineering, geological and administrative services to, and incurs costs on
behalf of, these companies and allocates the full costs to them.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_42></A>
<P align=center>- 41 -</P>
<P align=justify>All officers have a term of office lasting until their removal
or replacement by the Board of Directors. However, there are certain services
agreements in place with respect to these persons which will affect any
termination of services. The President and CEO is currently employed by HDSI and
provides services to the Company under the terms of the corporate services
agreement.</P>
<P align=justify><B>Committees of the Board of Directors</B></P>
<P align=justify><I>Audit Committee<BR></I>The Audit Committee is comprised of
Richard Mundie (Chairman), Wayne Kirk, and Alex Morrison.</P>
<P align=justify><I>Compensation Committee<BR></I>The Compensation Committee is
comprised of T. Barry Coughlan (Chairman), William P. Armstrong, and Richard A.
Mundie.</P>
<P align=justify><I>Nominating and Governance Committee<BR></I>The Nominating
and Governance Committee is comprised of Wayne Kirk (Chairman), T. Barry
Coughlan and Alex Morrison.</P>
<P align=justify><I>Investment Committee<BR></I>The Investment Committee
consisting is comprised of Russell Hallbauer (Chairman), William P. Armstrong,
Ronald W. Thiessen, and Wayne Kirk.</P>
<P align=justify><I>Executive Committee<BR></I>The Executive Committee is
comprised of Russell Hallbauer (Chairman), William P. Armstrong, T. Barry
Coughlan and Ronald W. Thiessen.</P>
<P align=justify><I>Environmental, Health and Safety Committee<BR></I>The
Environmental, Health and Safety Committee is comprised of William P. Armstrong
(Chairman), Alex Morrison and Richard A. Mundie.</P>
<P align=justify><B>Principal Occupations and Other Information</B></P>
<P align=justify><B>William P. Armstrong, P.Eng. &#150; Director </B></P>
<P align=justify>Mr. Armstrong earned his Bachelors and Masters degrees in
Geological Engineering from the University of British Columbia and has more than
45 years&#146; experience in the mining industry. He recently retired from Teck
Cominco Ltd., where he was General Manager, Resource Evaluations, and was
responsible for the evaluation of potential acquisitions and divestitures. He
was also responsible for the company&#146;s mineral reserves and resources. During
his career with Cominco Ltd., and Teck Cominco Ltd., Mr. Armstrong was involved
in feasibility studies, construction and operation of a large number of mines,
including coal deposits, underground and open pit base metal mines and precious
metal mines.</P>
<P align=justify>Mr. Armstrong is, or was within the past five years, an officer
and/or director of the following public companies:</P>
<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>Company</B> </TD>
    <TD align=left width="25%"><B>Positions Held</B> </TD>
    <TD align=left width="25%"><B>From</B> </TD>
    <TD align=left width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Compania Minera El Brocal </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">January 2001 </TD>
    <TD align=left width="25%">February 2007 </TD></TR></TABLE></DIV><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_43></A>
<P align=center>- 42 -</P>
<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>Company</B> </TD>
    <TD align=left width="25%"><B>Positions Held</B> </TD>
    <TD align=left width="25%"><B>From</B> </TD>
    <TD align=left width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Euromax Resources Ltd. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">October 2011 </TD>
    <TD align=left width="25%">February 2012 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Hansa Resources Ltd. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">August 2008 </TD>
    <TD align=left width="25%">April 2010 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Taseko Mines Limited </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">May 2006 </TD>
    <TD align=left width="25%">Present </TD></TR></TABLE></DIV>
<P align=justify><B>T. Barry Coughlan, B.A. &#150; Director</B></P>
<P align=justify>Barry Coughlan is a self-employed businessman and financier who
has been involved in the financing and management of publicly traded companies
for over 25 years. His principal occupation is President and Director of TBC
Ventures Ltd., a private investment company.</P>
<P align=justify>Mr. Coughlan is, or was within the past five years, an officer
and or a director of the following companies:</P>
<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>Company</B> </TD>
    <TD align=left width="25%"><B>Positions Held</B> </TD>
    <TD align=left width="25%"><B>From</B> </TD>
    <TD align=left width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Amarc Resources Ltd. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">February 2009 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>Continental Minerals Corporation </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">May 2006 </TD>
    <TD align=left width="25%">December 2006 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Creso Exploration Inc. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">July 2010 </TD>
    <TD align=left width="25%">October 2010 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Farallon Mining Ltd. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">March 1998 </TD>
    <TD align=left width="25%">January 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Great Basin Gold Ltd. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">February 1998 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>ICN Resources Ltd. (formerly Icon <BR>Industries
      Ltd.) <BR></TD>
    <TD align=left width="25%">President and CEO </TD>
    <TD align=left width="25%">September 1991 </TD>
    <TD align=left width="25%">November 2009 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">September 1991 </TD>
    <TD align=left width="25%">January 2010 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Northcliff Resources Ltd. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">June 2011 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>Quadro Resources Ltd. (formerly <BR>Tri-Gold Resources
      Corp.) </TD>
    <TD align=left width="25%">President, CEO and <BR>Director </TD>
    <TD align=left width="25%">June 1986 <BR></TD>
    <TD align=left width="25%">Present <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Quartz Mountain Resources Ltd. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">January 2005 </TD>
    <TD align=left width="25%">December 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Rathdowney Resources Ltd. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">March 2011 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>Taseko Mines Limited </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">February 2001 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>Vatic Ventures Corporation </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">January 2011 </TD>
    <TD align=left width="25%">Present </TD></TR></TABLE></DIV>
<P align=justify><B>Scott D. Cousens &#150; Director</B></P>
<P align=justify>Scott Cousens provides management, technical and financial
services to a number of publicly-traded Hunter Dickinson companies. Mr. Cousens&#146;
focus since 1991 has been the development of relationships within the
international investment community. Substantial financings and subsequent
corporate success has established strong ties with North American, European and
Asian investors. He is a director of and employed by Hunter Dickinson Services
Inc. (and Hunter Dickinson Inc.), a company providing management and
administrative services to several publicly-traded companies (including Taseko),
and focuses on directing corporate development and financing activities.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_44></A>
<P align=center>- 43 -</P>
<P align=justify>Mr. Cousens is, or was within the past five years, an officer
and/or director of the following public companies:</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>Company</B> </TD>
    <TD align=left width="25%"><B>Positions Held</B> </TD>
    <TD align=left width="25%"><B>From</B> </TD>
    <TD align=left width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Amarc Resources Ltd. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">September 1995 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>Anooraq Resources Corporation </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">September 1996 </TD>
    <TD align=left width="25%">June 2009 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Continental Minerals Corporation </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">June 1994 </TD>
    <TD align=left width="25%">April 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Curis Resources Ltd. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">November 2010 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>Farallon Mining Ltd. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">December 1995 </TD>
    <TD align=left width="25%">April 2007 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Great Basin Gold Ltd. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">March 1993 </TD>
    <TD align=left width="25%">November 2006 </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Heatherdale Resources Ltd. <BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">November 2009 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Chairman </TD>
    <TD align=left width="25%">November 2009 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>Northern Dynasty Minerals Ltd. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">June 1996 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Northcliff Resources Ltd. <BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">June 2011 </TD>
    <TD align=left width="25%">February 2012 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Director Capital Markets </TD>
    <TD align=left width="25%">February 2012 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>Rathdowney Resources Ltd. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">June 2011 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>Rockwell Diamonds Inc. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">November 2000 </TD>
    <TD align=left width="25%">November 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Taseko Mines Limited </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">October 1992 </TD>
    <TD align=left width="25%">Present </TD></TR></TABLE></DIV>
<P align=justify><B>Robert A. Dickinson, B.Sc., M.Sc. - Director</B></P>
<P align=justify>Robert Dickinson is an economic geologist who serves as a
member of management of several mineral exploration companies, primarily those
for whom Hunter Dickinson Services Inc. (provides services. He holds a Bachelor
of Science degree (Hons. Geology) and a Master of Science degree (Business
Administration - Finance) from the University of British Columbia. Mr. Dickinson
has also been active in mineral exploration over 40 years. He is a director of
Hunter Dickinson Services Inc. (and Hunter Dickinson Inc.), a company providing
management and administrative services to several publicly-traded companies
(including Taseko), and focuses on directing corporate development and financing
activities. He is also President and Director of United Mineral Services Ltd., a
private investment company.</P>
<P align=justify>Mr. Dickinson is, or was within the past five years, an officer
and/or director of the following public companies:</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_45></A>
<P align=center>- 44 -</P>
<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>Company</B> </TD>
    <TD align=left width="25%"><B>Positions Held</B> </TD>
    <TD align=left width="25%"><B>From</B> </TD>
    <TD align=left width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Amarc Resources Ltd. <BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">April 1993 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Chairman </TD>
    <TD align=left width="25%">April 2004 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=4>Anooraq Resources Corporation <BR><BR><BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">November 1990 </TD>
    <TD align=left width="25%">September 2004 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">October 2004 </TD>
    <TD align=left width="25%">June 2009 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Chairman </TD>
    <TD align=left width="25%">April 2004 </TD>
    <TD align=left width="25%">September 2004 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Co-Chairman </TD>
    <TD align=left width="25%">October 2004 </TD>
    <TD align=left width="25%">June 2009 </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=3>Continental Minerals Corporation <BR><BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">June 2004 </TD>
    <TD align=left width="25%">April 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Chairman </TD>
    <TD align=left width="25%">June 2004 </TD>
    <TD align=left width="25%">January 2006 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Co-Chairman </TD>
    <TD align=left width="25%">January 2006 </TD>
    <TD align=left width="25%">December 2006 </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Curis Resources Ltd. <BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">November 2010 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Chairman </TD>
    <TD align=left width="25%">November 2010 </TD>
    <TD align=left width="25%">December 2010 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Detour Gold Corporation </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">August 2006 </TD>
    <TD align=left width="25%">February 2009 </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=3>Farallon Mining Ltd. <BR><BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">July 1991 </TD>
    <TD align=left width="25%">April 2007 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Chairman </TD>
    <TD align=left width="25%">April 2004 </TD>
    <TD align=left width="25%">September 2004 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Co-Chairman </TD>
    <TD align=left width="25%">September 2004 </TD>
    <TD align=left width="25%">April 2006 </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=3>Great Basin Gold Ltd. <BR><BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">May 1986 </TD>
    <TD align=left width="25%">November 2006 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Chairman </TD>
    <TD align=left width="25%">April 2004 </TD>
    <TD align=left width="25%">December 2005 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Co-Chairman </TD>
    <TD align=left width="25%">December 2005 </TD>
    <TD align=left width="25%">November 2006 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Heatherdale Resources Ltd. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">November 2009 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Northcliff Resources Ltd. <BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">June 2011 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Chairman </TD>
    <TD align=left width="25%">June 2011 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Northern Dynasty Minerals Ltd. <BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">June 1994 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Chairman </TD>
    <TD align=left width="25%">April 2004 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Quartz Mountain Resources Ltd. <BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">December 2003 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Chairman </TD>
    <TD align=left width="25%">December 2011 </TD>
    <TD align=left width="25%">Present </TD></TR></TABLE></DIV><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_46></A>
<P align=center>- 45 -</P>
<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>Company</B> </TD>
    <TD align=left width="25%"><B>Positions Held</B> </TD>
    <TD align=left width="25%"><B>From</B> </TD>
    <TD align=left width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Rathdowney Resources Ltd. <BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">March 2011 </TD>
    <TD align=left width="25%">December 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Chairman </TD>
    <TD align=left width="25%">March 2011 </TD>
    <TD align=left width="25%">December 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Rockwell Diamonds Inc. <BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">November 2000 </TD>
    <TD align=left width="25%">September 2006 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Chairman </TD>
    <TD align=left width="25%">November 2000 </TD>
    <TD align=left width="25%">September 2006 </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=3>Taseko Mines Limited <BR><BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">January 1991 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Chairman </TD>
    <TD align=left width="25%">April 2004 </TD>
    <TD align=left width="25%">July 2005 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Co-Chairman </TD>
    <TD align=left width="25%">July 2005 </TD>
    <TD align=left width="25%">May 2006 </TD></TR></TABLE></DIV>
<P align=justify><b>Russell E. Hallbauer, P.Eng. &ndash; Director, President &amp; CEO</b></P>
<P align=justify>Mr. Hallbauer graduated from the Colorado School of Mines with a B.Sc. in Mining Engineering in 1979. He is a Registered Professional Engineer with the Association of Professional Engineers of British Columbia.  He has been a member of the Canadian Institute of Mining and Metallurgy since 1975 and is a director and former chairman of the Mining Association of B.C.</P>
<P align=justify>In 1983, he joined Teck Corporation&rsquo;s Bullmoose mine, advancing through Engineering and Supervisory positions to become Mine Superintendent in 1987, and in 1992, became General Manager of Quintette.  In 1995, he assumed new responsibilities in Vancouver when he was appointed General Manager, Coal Operations, overseeing Teck&rsquo;s three operating coal mines in the Province.  In 2002, he was appointed General Manager, Base Metal Joint Ventures, responsible for Teck Cominco&rsquo;s interests in Highland Valley Copper, Antamina in Peru, and Louvicourt in Quebec.  Mr. Hallbauer is a director of Hunter Dickinson Services Inc. (and Hunter Dickinson Inc.), a company providing management and administrative services to several publicly-traded companies (including Taseko), and focuses on directing corporate development and financing activities.</P>
<P align=justify>Mr. Hallbauer is, or was within the past five years, an officer and/or director of the following public companies:</P>
<TABLE width="100%" border=1 cellPadding=3 cellSpacing=0
borderColor=#000000
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; ">
  <TR vAlign=top>
    <TD align=left><B>Company</B> </TD>
    <TD align=left width="25%"><B>Positions Held</B> </TD>
    <TD align=left width="25%"><B>From</B> </TD>
    <TD align=left width="25%"><B>To</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD rowspan="2" align=left>Curis Resources Ltd.</TD>
    <TD align=left width="25%">Chairman</TD>
    <TD align=left width="25%">December 2010</TD>
    <TD align=left width="25%">Present</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">November 2010</TD>
    <TD align=left width="25%">Present</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Northern Dynasty Minerals Ltd.</TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">April 2008</TD>
    <TD align=left width="25%">Present</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Taseko Mines Limited</TD>
    <TD align=left width="25%">President/CEO/Director</TD>
    <TD align=left width="25%">July 2005</TD>
    <TD align=left width="25%">Present </TD>
  </TR>
</TABLE>
<P align=justify><B>Wayne Kirk, LLB &#150; Director</B></P>
<P align=justify>Wayne Kirk is a retired attorney and professional consultant.
With over 35 years professional experience Mr. Kirk also has over 9 years senior
executive experience in the mining industry.</P>
<P align=justify>Mr. Kirk is a citizen of the United States and is a resident of
the state of Washington. A Harvard University graduate, Mr. Kirk received his
law degree in 1968. From 1992 to 2001 Mr. Kirk was the Vice President, General
Counsel and Corporate Secretary of Homestake Mining Company. Prior to his
retirement in June 2004 he spent two years as Special Counsel for the law firm,
Thelen Reid &amp; Priest, in San Francisco.</P>
<P align=justify>Mr. Kirk is, or within the past five years was, a director of
the following public companies:</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>Company</B> </TD>
    <TD align=left width="25%"><B>Positions Held</B> </TD>
    <TD align=left width="25%"><B>From</B> </TD>
    <TD align=left width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Anooraq Resources Corporation </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">July 2005 </TD>
    <TD align=left width="25%">September 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Gabriel Resources Ltd. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">June 2008 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>Great Basin Gold Ltd. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">July 2004 </TD>
    <TD align=left width="25%">January 2012 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Northern Dynasty Minerals Ltd. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">July 2004 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>Taseko Mines Limited </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">July 2004 </TD>
    <TD align=left width="25%">Present </TD></TR></TABLE></DIV>
<P align=justify><B>Alex Morrison, CA - Director</B></P>
<P align=justify>Alex Morrison is a mining executive and chartered accountant
with over 25 years of experience in the mining industry.</P>
<P align=justify>Mr. Morrison is a citizen of the United States and is a
resident of the state of Washington.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_47></A>
<P align=center>- 46 -</P>
<P align=justify>Mr. Morrison has held senior executive positions at a number of
mining companies, most recently serving as Vice President and Chief Financial
Officer of Franco-Nevada Corporation from 2007 to 2010. From 2002 to 2007, Mr. Morrison held
increasingly senior positions at Newmont Mining Corporation, including Vice
President, Operations Services and Vice President, Information Technology. Prior
to that, Mr. Morrison was Vice President and Chief Financial Officer of NovaGold
Resources Inc., Vice President and Controller of Homestake Mining Company and
held senior financial positions at Phelps Dodge Corporation and Stillwater
Mining Company. Mr. Morrison began his career with PricewaterhouseCoopers LLP
after obtaining his Bachelor of Arts in Business Administration from Trinity
Western University. </P>
<P align=justify>Mr. Morrison is, or within the past five years was, an officer
and/or director of the following public companies: </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>Company</B> </TD>
    <TD align=left width="25%"><B>Positions Held</B> </TD>
    <TD align=left width="25%"><B>From</B> </TD>
    <TD align=left width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Detour Gold Corporation </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">May 2010 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>Franco-Nevada Corporation </TD>
    <TD align=left width="25%">Chief Financial Officer </TD>
    <TD align=left width="25%">January 2008 </TD>
    <TD align=left width="25%">April 2010 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Taseko Mines Limited </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">April 2011 </TD>
    <TD align=left width="25%">Present </TD></TR></TABLE></DIV>
<P align=justify><B>Richard Mundie, CA &#150; Director </B></P>
<P align=justify>Richard Mundie is a Chartered Accountant with a Bachelor of
Commerce degree from the University of British Columbia. Mr. Mundie has held a
number of senior leadership positions in the mining sector for over 25 years in
key organizations in British Columbia and overseas. From 2005 to 2007, he was
Vice President, Asia Affairs and Chief Representative (China), for Teck Cominco
Limited. In this role, he was active in the international mining community and
participated in several joint programs to build stronger relationships with the
Chinese Government. </P>
<P align=justify>Mr. Mundie also held the position of Vice President &#150;
Commercial for a period of ten years with Teck Cominco. In this role, he was
responsible for marketing the company&#146;s commercial mineral products, gaining
invaluable experience in Europe, South America, United States, Japan, Korea, and
Taiwan. </P>
<P align=justify>Between 1983 and 1995, he held a number of financial and
leadership positions with Cominco and in 1992, he assumed the role of Director
of Business Development with wide responsibilities for mergers, acquisitions and
divestitures. Earlier career positions included a number of finance related
roles in the resources sector, transport and public accounting with
PricewaterhouseCoopers LLP.</P>
<P align=justify>Mr. Mundie is, or within the past five years was, an officer
and/or director of the following public companies:</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>Company</B> </TD>
    <TD align=left width="25%"><B>Positions Held</B> </TD>
    <TD align=left width="25%"><B>From</B> </TD>
    <TD align=left width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Far West Mining Ltd. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">August 2010 </TD>
    <TD align=left width="25%">June 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Mundoro Capital Inc. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">May 2010 </TD>
    <TD align=left width="25%">December 2010 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Panoro Minerals Ltd. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">March 2010 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>Taseko Mines Limited </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">January 2010 </TD>
    <TD align=left width="25%">Present </TD></TR></TABLE></DIV><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_48></A>
<P align=center>- 47 -</P>
<P align=justify><B>Ronald W. Thiessen, CA &#150; Chairman of the Board and
Director</B></P>
<P align=justify>Ronald Thiessen is a Chartered Accountant with professional
experience in finance, taxation, mergers, acquisitions and re-organizations.
Since 1986, Mr. Thiessen has been involved in the acquisition and financing of
mining and mineral exploration companies. Mr. Thiessen is a director of Hunter
Dickinson Services Inc. (and Hunter Dickinson Inc.), a company providing
management and administrative services to several publicly-traded companies
(including Taseko), and focuses on directing corporate development and financing
activities. </P>
<P align=justify>Mr. Thiessen is, or was within the past five years, an officer
and/or director of the following public companies:</P>
<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>Company</B> </TD>
    <TD align=left width="25%"><B>Positions Held</B> </TD>
    <TD align=left width="25%"><B>From</B> </TD>
    <TD align=left width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Amarc Resources Ltd. <BR><BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">September 1995 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">President and Chief <BR>Executive Officer </TD>
    <TD align=left width="25%">September 2000 <BR></TD>
    <TD align=left width="25%">Present <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Anooraq Resources Corporation <BR><BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">April 1996 </TD>
    <TD align=left width="25%">June 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">President and Chief <BR>Executive Officer </TD>
    <TD align=left width="25%">September 2000 <BR></TD>
    <TD align=left width="25%">August 2007 <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=3>Continental Minerals Corporation <BR><BR><BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">November 1995 </TD>
    <TD align=left width="25%">April 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">President and Chief <BR>Executive Officer </TD>
    <TD align=left width="25%">September 2000 <BR></TD>
    <TD align=left width="25%">January 2006 <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Co-Chairman </TD>
    <TD align=left width="25%">January 2006 </TD>
    <TD align=left width="25%">April 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Detour Gold Corporation <BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">July 2006 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Chairman </TD>
    <TD align=left width="25%">July 2006 </TD>
    <TD align=left width="25%">March 2009 </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=4>Farallon Mining Ltd. <BR><BR><BR><BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">August 1994 </TD>
    <TD align=left width="25%">January 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">President and Chief <BR>Executive Officer </TD>
    <TD align=left width="25%">September 2000 <BR></TD>
    <TD align=left width="25%">September 2004 <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Co-Chairman </TD>
    <TD align=left width="25%">September 2004 </TD>
    <TD align=left width="25%">December 2005 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Chairman </TD>
    <TD align=left width="25%">December 2005 </TD>
    <TD align=left width="25%">January 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=4>Great Basin Gold Ltd. <BR><BR><BR><BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">October 1993 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">President and Chief <BR>Executive Officer </TD>
    <TD align=left width="25%">September 2000 <BR></TD>
    <TD align=left width="25%">December 2005 <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Co-Chairman </TD>
    <TD align=left width="25%">December 2005 </TD>
    <TD align=left width="25%">November 2006 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Chairman </TD>
    <TD align=left width="25%">November 2006 </TD>
    <TD align=left width="25%">Present </TD></TR></TABLE></DIV><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_49></A>
<P align=center>- 48 -</P>
<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>Company</B> </TD>
    <TD align=left width="25%"><B>Positions Held</B> </TD>
    <TD align=left width="25%"><B>From</B> </TD>
    <TD align=left width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Northern Dynasty Minerals Ltd. <BR><BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">November 1995 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">President and Chief <BR>Executive Officer </TD>
    <TD align=left width="25%">November 2001 <BR></TD>
    <TD align=left width="25%">Present <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Quartz Mountain Resources Ltd. <BR><BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">December 2011 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">President and Chief <BR>Executive Officer </TD>
    <TD align=left width="25%">December 2011 <BR></TD>
    <TD align=left width="25%">Present <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=3>Rockwell Diamonds Inc. <BR><BR><BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">November 2000 </TD>
    <TD align=left width="25%">September 2007 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">President and Chief <BR>Executive Officer </TD>
    <TD align=left width="25%">November 2000 <BR></TD>
    <TD align=left width="25%">September 2006 <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Chairman </TD>
    <TD align=left width="25%">September 2006 </TD>
    <TD align=left width="25%">September 2007 </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=4>Taseko Mines Limited <BR><BR><BR><BR></TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">October 1993 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">President and Chief <BR>Executive Officer </TD>
    <TD align=left width="25%">September 2000 <BR></TD>
    <TD align=left width="25%">July 2005 <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Co-Chairman </TD>
    <TD align=left width="25%">July 2005 </TD>
    <TD align=left width="25%">May 2006 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Chairman </TD>
    <TD align=left width="25%">May 2006 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>Quadro Resources Ltd. (formerly <BR>Tri-Gold Resources
      Corp.) </TD>
    <TD align=left width="25%">Director <BR></TD>
    <TD align=left width="25%">July 1992 <BR></TD>
    <TD align=left width="25%">December 2006 <BR></TD></TR></TABLE></DIV>
<P align=justify><B>Brian Battison &#150; Vice President, Corporate Affairs</B></P>
<P align=justify>Brian Battison is responsible for all matters relating to
corporate and public affairs, including government and community relations,
First Nations liaison, sustainability and economic and social responsibility.
Mr. Battison is a public affairs specialist with over 25 years of practical
experience in policy development, issue management and communication in both the
private and public sectors. He has been a senior political and policy advisor
for the government of British Columbia, served as Interim President &amp; CEO of
the Mining Association of BC and spent more than a decade operating a private
full service communications consulting firm specializing in strategic planning,
program development, implementation and evaluation in the areas of mining and
resource development, electrical energy, and health care.</P>
<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>Company</B> </TD>
    <TD align=left width="25%"><B>Positions Held</B> </TD>
    <TD align=left width="25%"><B>From</B> </TD>
    <TD align=left width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Taseko Mines Limited <BR></TD>
    <TD align=left width="25%">Vice President, Corporate Affairs </TD>
    <TD align=left width="25%">September 2007 </TD>
    <TD align=left width="25%">Present <BR></TD></TR></TABLE></DIV>
<P align=justify><B>Scott Jones, P.Eng. &#150; Vice President, Engineering</B></P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_50></A>
<P align=center>- 49 -</P>
<P align=justify>Scott Jones has 30 years of experience in the mining industry.
Prior to joining Taseko in 2006, he was a Senior Mining Engineer for Teck
Cominco where he was involved in property valuation and feasibility studies. He
has also held various senior positions in both underground and open pit
operations for Teck Cominco and at Barrick Gold&#146;s Hemlo Operations. He has a
B.Sc. in Mine Engineering from McGill University.</P>
<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>Company</B> </TD>
    <TD align=left width="25%"><B>Positions Held</B> </TD>
    <TD align=left width="25%"><B>From</B> </TD>
    <TD align=left width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Taseko Mines Limited <BR></TD>
    <TD align=left width="25%">Vice President, Engineering </TD>
    <TD align=left width="25%">December 2007 <BR></TD>
    <TD align=left width="25%">Present <BR></TD></TR></TABLE></DIV>
<P align=justify><B>John McManus, P. Eng &#150; Senior Vice-President,
Operations</B></P>
<P align=justify>John McManus holds a Bachelor of Science degree in mining
engineering from the Colorado School of Mines and a Technologist Diploma in
Mining from the British Columbia Institute of Technology.</P>
<P align=justify>Mr. McManus has worked in the mining industry in British
Columbia for over 30 years where he gained experience in mine operations, mine
engineering and environmental management. Prior to joining Taseko in 2005, he
was the General Manager, Coal Mountain Operations at Elk Valley Coal
Corporation. Before that, Mr. McManus was the Mine Manager at Teck Cominco&#146;s
coal mining joint venture Bullmoose operation, General Superintendent at the
Elkview coal mine and Superintendent of Engineering at the Quintette operation.
His past experience also includes five years working in operations and
engineering at the Highland Valley and Lornex copper mines and three years
working in gold exploration in the Yukon, British Columbia and California.</P>
<P align=justify>Mr. McManus is, or was within the past five years, an officer
and or director of the following public companies:</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>Company</B> </TD>
    <TD align=left width="25%"><B>Positions Held</B> </TD>
    <TD align=left width="25%"><B>From</B> </TD>
    <TD align=left width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>European Nickel PLC </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">August 2010 </TD>
    <TD align=left width="25%">December 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left rowSpan=2>Taseko Mines Limited <BR><BR></TD>
    <TD align=left width="25%">Vice President, Operations </TD>
    <TD align=left width="25%">October 2005 </TD>
    <TD align=left width="25%">December 2007 </TD></TR>
  <TR vAlign=top>
    <TD align=left width="25%">Senior Vice President, <BR>Operations </TD>
    <TD align=left width="25%">December 2007 <BR></TD>
    <TD align=left width="25%">Present <BR></TD></TR></TABLE></DIV>
<P align=justify><B>Peter Mitchell, CA &#150; Chief Financial Officer</B></P>
<P align=justify>Peter Mitchell is a Chartered Accountant with degrees in
Economics (BA) from the University of Western Ontario and Business
Administration (MBA) from the University of British Columbia. Prior to his role
with Taseko, Mr. Mitchell held executive positions with several private equity
portfolio companies. He was most recently President of Florida Career College, a
portfolio investment of Greenhill Capital and Abrams Capital. Prior to this
position he was President and CEO of Vatterott Education Holdings which was
owned by Wellspring Capital.</P>
<P align=justify>Mr. Mitchell is, or was within the past five years, an officer
and or director of the following public companies:</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_51></A>
<P align=center>- 50 -</P>
<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>Company</B> </TD>
    <TD align=left width="25%"><B>Positions Held</B> </TD>
    <TD align=left width="25%"><B>From</B> </TD>
    <TD align=left width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Northcliff Resources Ltd. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">June 2011 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>Northern Dynasty Minerals Ltd. </TD>
    <TD align=left width="25%">Director </TD>
    <TD align=left width="25%">May 2011 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>Taseko Mines Limited </TD>
    <TD align=left width="25%">Chief Financial Officer </TD>
    <TD align=left width="25%">September 2008 </TD>
    <TD align=left width="25%">Present </TD></TR></TABLE></DIV>
<P align=justify><B>David Rouleau, P. Eng &#150; Vice-President, Operations</B></P>
<P align=justify>Dave Rouleau holds a Bachelor of Science Mine Engineering
Degree from the South Dakota School of Mines and a Mining Technology Diploma
from Haileybury School of Mines. Prior to joining Taseko, Mr. Rouleau was a key
member of Canadian Natural Resources senior management team developing the $10
billion Horizon Oil Sands Project in Fort McMurray, Alberta. Mr. Rouleau was
responsible for all aspects of the 200 million tonne per year mining operation
supporting 110,000 barrels per day of synthetic crude oil production. Mr.
Rouleau's background also includes 17 years with Teck Cominco in various mine
operations and engineering roles. </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>Company</B> </TD>
    <TD align=left width="25%"><B>Positions Held</B> </TD>
    <TD align=left width="25%"><B>From</B> </TD>
    <TD align=left width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Taseko Mines Limited </TD>
    <TD align=left width="25%">Vice President, Operations </TD>
    <TD align=left width="25%">June 2010 </TD>
    <TD align=left width="25%">Present </TD></TR></TABLE></DIV>
<P align=justify><B>Trevor Thomas, LLB &#150; Secretary</B></P>
<P align=justify>Trevor Thomas has practiced in the areas of corporate
commercial, corporate finance, securities and mining law since 1995, both in
private practice environment as well as in-house positions and is currently
general counsel for Hunter Dickinson Inc. Prior to joining Hunter Dickinson Inc.
he served as in-house legal counsel with Placer Dome Inc.</P>
<P align=justify>Mr. Thomas is, or within the past five years was, an officer
and or director of the following public companies:</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>Company</B> </TD>
    <TD align=left width="25%"><B>Positions Held</B> </TD>
    <TD align=left width="25%"><B>From</B> </TD>
    <TD align=left width="25%"><B>To</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Amarc Resources Ltd. </TD>
    <TD align=left width="25%">Secretary </TD>
    <TD align=left width="25%">February 2008 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>Anooraq Resources Corporation <BR></TD>
    <TD align=left width="25%">Asst Secretary <BR></TD>
    <TD align=left width="25%">November 2007 </TD>
    <TD align=left width="25%">July 2011 <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Continental Minerals Corporation </TD>
    <TD align=left width="25%">Secretary </TD>
    <TD align=left width="25%">February 2008 </TD>
    <TD align=left width="25%">April 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Farallon Mining Ltd. <BR></TD>
    <TD align=left width="25%">Secretary <BR></TD>
    <TD align=left width="25%">December 2007 </TD>
    <TD align=left width="25%">January 2011 <BR></TD></TR>
  <TR vAlign=top>
    <TD align=left>Heatherdale Resources Ltd. <BR></TD>
    <TD align=left width="25%">Secretary <BR></TD>
    <TD align=left width="25%">November 2009 </TD>
    <TD align=left width="25%">September 2010 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Northcliff Resources Ltd. </TD>
    <TD align=left width="25%">Secretary </TD>
    <TD align=left width="25%">June 2011 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>Northern Dynasty Minerals Ltd. </TD>
    <TD align=left width="25%">Secretary </TD>
    <TD align=left width="25%">February 2008 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>Rathdowney Resources Ltd. </TD>
    <TD align=left width="25%">Secretary </TD>
    <TD align=left width="25%">March 2011 </TD>
    <TD align=left width="25%">Present </TD></TR>
  <TR vAlign=top>
    <TD align=left>Rockwell Diamonds Inc. </TD>
    <TD align=left width="25%">Secretary </TD>
    <TD align=left width="25%">February 2008 </TD>
    <TD align=left width="25%">Present </TD></TR></TABLE></DIV><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_52></A>
<P align=center>- 51 -</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>Taseko Mines Limited </TD>
    <TD align=left width="25%">Secretary </TD>
    <TD align=left width="25%">August 1, 2008 </TD>
    <TD align=left width="25%">Present </TD></TR></TABLE></DIV>
<P align=justify><B>Cease Trade Orders, Bankruptcies, Penalties or
Sanctions</B></P>
<P align=justify>No director or officer of Taseko is as of the date of this AIF,
or has been within the 10 years before the date of this AIF, a director or
officer of any company that while that person was acting in that capacity, was
the subject of a cease trade order, penalties, sanctions or bankruptcy, during
the time the individual was a director or within a one year period thereafter,
or was a director or officer of a company during the time in which an event
occurred which led to a cease trade order, penalties, sanctions or bankruptcy
subsequent to the individual ceasing to act as a director or officer.</P>
<P align=justify><B>Potential Conflicts of Interest </B></P>
<P align=justify>Several Directors of Taseko also serve as directors of one or
more other resource companies involved in mineral exploration and/or
development. It may occur from time to time that as a consequence of his
activity in the mineral industry and serving on such other boards that a
Director may become aware of potential resource property opportunities which are
of interest to more than one of the companies on whose boards that person
serves. Furthermore, it is possible that the Directors of Taseko and the
directors of one or more such other companies may also agree to allow joint
participation on Taseko&#146;s properties or the properties of that other company.
Accordingly, situations may arise in the ordinary course which involve a
Director in an actual or potential conflict of interest as well as issues in
connection with the general obligation of a director to make corporate
opportunities available to the company on which the director serves. In all such
events, any director who might have a disclosable financial interest in a
contract or transaction by virtue of office, employment or security holdings or
other such interest in another company or in a property interest under
consideration by the Taseko Board, would be obliged to abstain from voting as a
Taseko Director in respect of any transaction involving that other company(s) or
in respect of any property in which an interest is held by him. The Directors
will use their best business judgment to help avoid situations where conflicts
or corporate opportunity issues might arise and they must at all times fulfill
their duties to act honestly and in the best interests of Taseko.</P>
<P align=justify><B><FONT color=#0099FF size="3">LEGAL PROCEEDINGS AND REGULATORY
ACTIONS</FONT></B></P>
<P align=justify>There are no potentially material legal proceedings to which
Taseko is a party.</P>
<P align=justify>The Company has not been subject to any regulatory actions</P>
<P align=justify><B><FONT color=#0099FF size="3">INTEREST OF MANAGEMENT AND OTHERS IN
MATERIAL TRANSACTIONS</FONT></B></P>
<P align=justify>None of the directors or senior officers of the Company, nor
any person who has held such a position since the beginning of the last
completed financial year end of the Company, nor any associate or affiliate of
the foregoing persons, has any substantial or material interest, direct or
indirect, by way of beneficial ownership of securities or otherwise, in any
material transaction of the Company other than as set out herein.</P>
<P align=justify>HDSI is a private company with certain directors in common with
the Company and which provides geological, corporate development, administrative
and management services to, and incurs third party costs on behalf of the
Company and its subsidiaries. On July 2, 2010, the HDSI services agreement was modified and services are now
provided based on annually set hourly rates. Transactions with HDSI are
reflected in the Company's statement of operations and comprehensive income
(loss) and are measured at the exchange amount based on the agreement. The
services are rendered at no more than fair market value.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_53></A>
<P align=center>- 52 -</P>
<P align=justify><B><FONT color=#0099FF size="3">TRANSFER AGENT AND
REGISTRAR</FONT></B></P>
<P align=justify>The Company&#146;s registrar and transfer agent for its common
shares is Computershare Trust Company of Canada, located in Vancouver, BC.</P>
<P align=justify><B><FONT color=#0099FF size="3">MATERIAL CONTRACTS</FONT></B></P>
<P align=justify>Taseko&#146;s material contracts are as follows:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(a) </TD>
    <TD colSpan=2>
      <P align=justify>Red Mile Royalty Sale Agreements dated September 29,
      2004:</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">i) </TD>
    <TD>
      <P align=justify>Royalty Agreement among, <I>inter alia</I>, Gibraltar and
      Wilshire (GP) No. 2 Corporation, in its own capacity and in its capacity
      as general partner on behalf of all the limited partners of Red Mile
      Resources No. 2 Limited Partnership (&#147;Red Mile&#148;), pursuant to which
      Gibraltar sold to Red Mile a royalty (the &#147;Royalty Interest&#148;) for
      $67,357,000 (the &#147;Purchase Price&#148;);</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">ii) </TD>
    <TD>
      <P align=justify>Call Option Agreement among, <I>inter alia</I>, 688888
      B.C. Ltd. (&#147;688888&#148;), a wholly- owned subsidiary of Taseko, and Red Mile
      Resources Inc., in its capacity as general partner on behalf of all of the
      partners of Red Mile Resources Fund Limited Partnership (&#147;RMRF&#148;), pursuant
      to which 688888 has an option to, directly or indirectly, re-acquire the
      Royalty Interest by acquiring from Red Mile the Royalty Interest or from
      RMRF all of the limited partnership units of Red Mile held by
  RMRF;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">iii) </TD>
    <TD>
      <P align=justify>Funding Pledge Agreement among, <I>inter alia</I>,
      Alberta Capital Trust Corporation (&#147;Alberta Trust&#148;) and Gibraltar,
      pursuant to which the Purchase Price was invested in a promissory note
      with Alberta Trust, and Gibraltar pledged the promissory note, along with
      interest earned and to be earned thereon, to secure its obligations under
      the Funding Pledge Agreement; and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">iv) </TD>
    <TD>
      <P align=justify>Pledge, Priorities and Direction Agreement, pursuant to
      which Gibraltar is entitled to have released to it funds held under a
      promissory note, and interest thereon, to fund its royalty obligations
      under the Royalty Agreement to the extent of its royalty payment
      obligations;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  <TR>
    <TD vAlign=top width="5%">(b) </TD>
    <TD colSpan=2>
      <P align=justify>Corporate Services Agreement dated July 2, 2010 between
      HDSI and the Company, pursuant to which HDSI agreed to provide technical,
      geological, corporate communications, administrative and management
      services to the Company;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(c) </TD>
    <TD colSpan=2>
      <P align=justify>Copper Concentrate Agreement dated April 17, 2008 between
      Gibraltar and MRI, pursuant to which Gibraltar sells copper concentrate to
      MRI;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(d) </TD>
    <TD colSpan=2>
      <P align=justify>Joint Venture Formation Agreement dated March 18, 2010
      between the Company, Gibraltar and Cariboo, pursuant to the formation of
      the Gibraltar Joint Venture;</P></TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_54></A>
<P align=center>- 53 -</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(e) </TD>
    <TD>
      <P align=justify>Joint Venture Operating Agreement with Cariboo, dated
      March 18, 2010 whereby the Gibraltar mine is operated in a 75:25 joint
      venture with Cariboo;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(f) </TD>
    <TD>
      <P align=justify>Off-Take Agreement dated March 18, 2010 between the
      Company, Gibraltar and Cariboo, pursuant to which the Gibraltar Joint
      venture sells copper concentrate to Cariboo;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(g) </TD>
    <TD>
      <P align=justify>At the Market Issuance Agreement, dated October 18, 2010,
      with McNicoll, Lewis &amp; Vlak LLC, pursuant to which the Company may, at
      its discretion, from time to time sell up to a maximum of 18,600,000, of
      its common shares through "at-the-market" issuance;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(h) </TD>
    <TD>
      <P align=justify>Purchase and Sale Agreement dated May 12, 2010 between
      Franco-Nevada Corporation and the Company, pursuant to which Franco-Nevada
      will purchase gold equal to 22% of the life-of-mine gold to be produced by
      Taseko from its proposed Prosperity gold-copper mine; and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(i) </TD>
    <TD>
      <P align=justify>Indenture, dated as of April 15, 2011, between the
      Company, as issuer and Parent Guarantor, Gibraltar Mines Ltd., as
      Subsidiary Guarantor, and Aley Corporation, as Subsidiary Guarantor, and
      The Bank of New York Mellon, as U.S. trustee, and BNY Trust Company of
      Canada, as Canadian Co-Trustee.</P></TD></TR></TABLE>
<P align=justify><B><FONT color=#0099FF size="3">INTERESTS OF EXPERTS</FONT></B></P>
<P align=justify>The following is a list of the persons or companies named as
having prepared or certified a statement, report or valuation, in this AIF
either directly or in a document incorporated by reference and whose profession
or business gives authority to the statement, report or valuation made by the
person or company:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>The Company&#146;s independent auditors are KPMG LLP,
      Chartered Accountants, who have issued an independent auditors&#146; report
      dated March 16, 2012 in respect of the Company&#146;s consolidated financial
      statements as at December 31, 2011 and 2010 and January 1, 2010 and for
      the years ended December 31, 2011 and 2010 and the Company&#146;s internal
      control over financial reporting as at December 31, 2011;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(b) </TD>
    <TD>
      <P align=justify>Scott Jones, P. Eng. authored the &#147;Technical Report on
      the 357 Million Ton Increase in Mineral Reserves at the Gibraltar Mine&#148;
      dated June 24, 2011; and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(c) </TD>
    <TD>
      <P align=justify>Scott Jones, P. Eng. authored the &#147;Technical Report on
      the 344 million tonne increase in mineral reserves at the Prosperity Gold
      &#150; Copper Project&#148; dated December 17, 2009.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(d) </TD>
    <TD>
      <P align=justify>Ronald G. Simpson, authored the &#147;Technical Report Aley
      Carbonatite Niobium Project&#148; dated October 26, 2011 and the &#147;Technical
      Report Aley Carbonatite Niobium Project&#148; dated March 29,
  2011.</P></TD></TR></TABLE>
<P align=justify>To our knowledge, Scott Jones and Ronald Simpson do not hold,
directly or indirectly, more than 1% of our issued and outstanding common
shares. KPMG are the auditors of the Company and have confirmed that they are
independent of the Company within the meaning of the &#145;Rules of Professional
Conduct&#146; of the Institute of Chartered Accountants of B.C.</P>
<P align=justify>Based on information provided by the relevant persons, and
except as otherwise disclosed in this AIF, none of the persons or companies
referred to above has received or will receive any direct or indirect interests in our property or the property of
an associated party or an affiliate of ours or have any beneficial ownership,
direct or indirect, of our securities or of an associated party or an affiliate
of ours.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_55></A>
<P align=center>- 54 -</P>
<P align=justify><B><FONT color=#0099FF size="3">ADDITIONAL INFORMATION</FONT></B></P>
<P align=justify>Additional information, including directors&#146; and officers&#146;
remuneration, indebtedness of officers, executive stock options and interests of
management and others in material transactions, where applicable, is contained
in annual financial statements, MD&amp;A, proxy circulars and interim financial
statements available at the SEDAR internet web site (<U><font color="#0099FF">www.sedar.com</font></U>).</P>
<P align=justify>The following documents can be obtained upon request from
Taseko&#146;s Shareholder Communication Department by calling (778) 373-4533:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(i) </TD>
    <TD>
      <P align=justify>this Annual Information Form, together with any document
      incorporated herein by reference;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(ii) </TD>
    <TD>
      <P align=justify>the Annual Report of the Company and any interim
      financial statements filed with Securities Commissions subsequent to the
      audited financial statements for the Company&#146;s most recently completed
      financial year; and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(iii) </TD>
    <TD>
      <P align=justify>the Proxy Circular for the 2011 annual general meeting of
      the Company.</P></TD></TR></TABLE>
<P align=justify>The Company may require the payment of a reasonable charge from
persons, other than security holders of the Company, requesting copies of these
documents.</P>
<P align=justify><B><FONT color=#0099FF size="3">AUDIT AND RISK COMMITTEE</FONT></B></P>
<P align=justify>The Audit and Risk Committee has adopted a charter that sets
out its mandate and responsibilities, and is attached to this AIF as Appendix
A.</P>
<P align=justify><B>Composition of Audit and Risk Committee</B></P>
<P align=justify>The Audit and Risk Committee, consisting of Richard Mundie,
Wayne Kirk and Alex Morrison, reviews all financial statements of the Company
prior to their publication, reviews audits, considers the adequacy of audit
procedures, recommends the appointment of independent auditors, reviews and
approves the professional services to be rendered by them and reviews fees for
audit services. The charter has set criteria for membership which all members of
the Audit and Risk Committee are required to meet consistent with National
Instrument 52-110 <I>Audit Committees </I>and other applicable regulatory
requirements. The Audit and Risk Committee, as needed, meets separately (without
management present) with the Company&#146;s auditors to discuss the various aspects
of the Company&#146;s financial statements and the independent audit.</P>
<P align=justify>Each Audit and Risk Committee member is an independent director and is financially literate.  Mr. Mundie is the Audit and Risk Committee&rsquo;s chairman.</P>
<P align=justify><B>Relevant Education and Experience </B></P>
<P align=justify>Disclosure respecting the education and experience of the Audit
and Risk Committee is provided in their biographies above. As a result of their
education and experience, each member of the Audit Committee has familiarity
with, an understanding of, or experience in: </P>
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<P align=center>- 55 -</P>
<UL style="TEXT-ALIGN: justify">
  <LI>the accounting principles used by the Company to prepare its financial
  statements, and the ability to assess the general application of those
  principles in connection with estimates, accruals and reserves;
  <LI>reviewing or evaluating financial statements that present a breadth and
  level of complexity of accounting issues that are generally comparable to the
  breadth and complexity of issues that can reasonably be expected to be raised
  by the Company&#146;s financial statements, and
  <LI>internal controls and procedures for financial reporting. </LI></UL>
<P align=justify><B>Code of Ethics</B></P>
<P align=justify>The Company has adopted a code of ethics that applies to all
directors, officers and employees of the Company, including the Chief Executive
Officer, Chief Financial Officer and other senior finance staff. A copy of the
Code of Ethics, which is included as a part of the Company&#146;s Governance Policies
and Procedures Manual, is available on the Company&#146;s website at
<U><font color="#0099FF">www.tasekomines.com</font></U>. </P>
<P align=justify><B>Principal Accountant Fees and Services</B></P>
<P align=justify>The following table discloses the aggregate fees billed for
each of the last two years for professional services rendered by the Company&#146;s
audit firm for various services.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Services:</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=right width="12%"><B>Year ended</B> </TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=right width="12%"><B>Year ended</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="12%"><B>December 31, 2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="12%"><B>December 31, 2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Audit Fees </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;727,100 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;532,942 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Audit Related Fees
      (1) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">29,750 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Tax Fees </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>All Other Fees </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Total </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">&nbsp;727,100 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">562,692 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(1) </TD>
    <TD>
      <P align=justify>&#147;Audit-Related Fees&#148; include services that are
      traditionally performed by the auditor. For the year ended December 31,
      2010, audit-related services include fees billed for services rendered in
      connection with the Company&#146;s sale of 25% of the Gibraltar mine, the
      opening balance sheet audit of the Gibraltar Joint Venture and the
      Company&#146;s reversal of uncertain tax position.</P></TD></TR></TABLE>
<P align=justify><B>Pre-Approval Policies and Procedures</B></P>
<P align=justify>Management of the Company requests approval from the Audit and
Risk Committee for all audit and non-audit services to be provided by the
Company&#146;s auditors. The Audit and Risk Committee pre-approves all such services
with set maximum dollar amounts for each itemized service. During such
deliberations, the Audit and Risk Committee assesses, among other factors,
whether the services requested would be considered &#147;prohibited services&#148; as
contemplated under Canadian independence standards and by the US Securities and
Exchange Commission, and whether the services requested and the fees related to
such services could impair the independence of the auditors. No audit-related
fees, tax fees or other non-audit fees for such &#147;prohibited services&#148; were
approved by the Audit and Risk Committee.</P>
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<P align=center><B>APPENDIX A</B></P>
<P align=center><B>Audit and Risk Committee Charter</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="10%" ><FONT color=#0099FF size="3"><B>1.</B>
      </FONT></TD>
    <TD>      <P align=justify><font color="#0099FF" size="3"><B>PURPOSE: RESPONSIBILITIES AND
  AUTHORITY</B></font></P></TD>
  </TR></TABLE>
<P align=justify>The Audit and Risk Committee (the &#147;Audit Committee&#148; or
&#147;Committee&#148;) shall carry out its responsibilities under applicable laws,
regulations and stock exchange requirements with respect to the employment,
compensation and oversight of the Company&#146;s independent auditor, and other
matters under the authority of the Committee. The Committee also shall assist
the Board of Directors in carrying out its oversight responsibilities relating
to the Company&#146;s financial, accounting and reporting processes, the Company&#146;s
system of internal accounting and financial controls, the Company&#146;s compliance
with related legal and regulatory requirements, and the fairness of transactions
between the Company and related parties. In furtherance of this purpose, the
Committee shall have the following responsibilities and authority:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify><B><I>Relationship with Independent
    Auditor.</I></B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>(i) Subject to the law of British
Columbia as to the role of the Shareholders in the appointment of independent
auditors, the Committee shall have the sole authority to appoint or replace the
independent auditor.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(ii) The Committee shall be directly
responsible for the compensation and oversight of the work of the independent
auditor (including resolution of disagreements between management and the
independent auditor regarding financial reporting) for the purpose of preparing
or issuing an audit report or related work. </P>
<P style="MARGIN-LEFT: 10%" align=justify>(iii) The independent auditor shall
report directly to the Committee.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(iv) The Committee shall approve in
advance all audit and permitted non-audit services with the independent auditor,
including the terms of the engagements and the fees payable; provided that the
Committee Chairman may approve services to be performed by the independent
auditors and the fee therefor between Committee meetings if the amount of the
fee does not exceed $50,000, provided that any such approval shall be reported
to the Committee at the next meeting thereof.. The Committee may delegate to a
subcommittee the authority to grant pre-approvals of audit and permitted
non-audit services, provided that the decision of any such subcommittee shall be
presented to the full Committee at its next scheduled meeting.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(v) At least annually, the Committee
shall review and evaluate the experience and qualifications of the lead partner
and senior members of the independent auditor team.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(vi) At least annually, the Committee
shall obtain and review a report from the independent auditor regarding:</P>
<P style="MARGIN-LEFT: 15%" align=justify>(A) the independent auditor&#146;s internal
quality-control procedures;</P>
<P style="MARGIN-LEFT: 15%" align=justify>(B) any material issues raised by the
most recent internal quality-control review, or peer review, of the auditor, or
by any inquiry or investigation by governmental or
professional authorities within the preceding five years respecting one or more
independent audits carried out by the firm;</P>
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<P align=center>- 2 -</P>
<P style="MARGIN-LEFT: 15%" align=justify>(C) any steps taken to deal with any
such issues; and</P>
<P style="MARGIN-LEFT: 15%" align=justify>(D) all relationships between the
independent auditor and the Company. </P>
<P style="MARGIN-LEFT: 10%" align=justify>(vii) At least annually, the Committee
shall evaluate the qualifications, performance and independence of the
independent auditor, including considering whether the auditor&#146;s quality
controls are adequate and the provision of permitted non-audit services is
compatible with maintaining the auditor&#146;s independence. </P>
<P style="MARGIN-LEFT: 10%" align=justify>(viii) The Committee shall ensure the
rotation of the lead (or coordinating) audit partner having primary
responsibility for the audit, the concurring partner responsible for reviewing
the audit, and other audit partners as required by law. </P>
<P style="MARGIN-LEFT: 10%" align=justify>(ix) The Committee shall consider
whether, in order to assure continuing auditor independence, it is appropriate
to adopt a policy of rotating the independent auditing firm on a regular
basis.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(x) The Committee shall recommend to
the Board policies for the Company&#146;s hiring of employees or former employees of
the independent auditor who were engaged on the Company&#146;s account or
participated in any capacity in the audit of the Company.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(xi) The Committee shall oversee the
implementation by management of appropriate information technology systems for
the Company, including as required for proper financial reporting and
compliance.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">(b) </TD>
    <TD>
      <P align=justify><B><I>Financial Statement and Disclosure
      Review.</I></B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>(i) The Committee shall review and
discuss with management and the independent auditor the annual audited financial
statements, including disclosures made in management&#146;s discussion and analysis,
and recommend to the Board whether the audited financial statements should be
filed with applicable securities regulatory authorities and included in the
Company&#146;s annual reports.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(ii) The Committee shall review and
discuss with management (and, to the extent the Committee deems it necessary or
appropriate, the independent auditor) the Company&#146;s quarterly financial
statements, including disclosures made in management&#146;s discussion and analysis,
and recommend to the Board whether such financial statements should be filed
with applicable securities regulatory authorities.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(iii) The Committee shall review and
discuss with management and the independent auditor significant financial
reporting issues and judgments made in connection with the preparation of the
Company&#146;s financial statements, including the independent auditor&#146;s assessment
of the quality of the Company&#146;s accounting principles, any significant changes in
the Company&#146;s selection or application of accounting principles, any major
issues as to the adequacy of the Company&#146;s internal controls over financial
reporting, and any special steps adopted in light of material control
deficiencies.</P>
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<P align=center>- 3 -</P>
<P style="MARGIN-LEFT: 10%" align=justify>(iv) At least annually and prior to
the publication of annual audited financial statements, the Committee shall
review and discuss with management and the independent auditor a report from the
independent auditor on:</P>
<P style="MARGIN-LEFT: 15%" align=justify>(A) all critical accounting policies
and practices used by the Company;</P>
<P style="MARGIN-LEFT: 15%" align=justify>(B) all alternative accounting
treatments of financial information that have been discussed with management
since the prior report, ramifications of the use of such alternative disclosures
and treatments, the treatment preferred by the independent auditor, and an
explanation of why the independent auditor&#146;s preferred method was not adopted;
and.</P>
<P style="MARGIN-LEFT: 15%" align=justify>(C) other material written
communications between the independent auditor and management since the prior
report, such as any management letter or schedule of unadjusted differences, the
development, selection and disclosure of critical accounting estimates, and
analyses of the effect of alternative assumptions, estimates or GAAP methods on
the Company&#146;s financial statements.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(v) Prior to their filing or issuance,
the Committee shall review the Company&#146;s Annual Information Form/Annual Report
to the SEC, quarterly and annual earnings press releases, and other financial
press releases, including the use of &#147;pro forma&#148; or &#147;adjusted&#148; non-GAAP
information.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(vi) The Committee shall review and
discuss with management the financial information and earnings guidance provided
to analysts and rating agencies. Such discussion may be specific or it may be in
general regarding the types of information to be disclosed and the types of
presentations to be made.</P>
<P style="MARGIN-LEFT: 5%" align=justify>(c) <B><I>Conduct of the Annual
Audit</I></B>. The Committee shall oversee the annual audit, and in the course
of such oversight the Committee shall have the following responsibilities and
authority: </P>
<P style="MARGIN-LEFT: 10%" align=justify>(i) The Committee shall meet with the
independent auditor prior to the audit to discuss the planning and conduct of
the annual audit, and shall meet with the independent auditor as may be
necessary or appropriate in connection with the audit.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(ii) The Committee shall ascertain
that the independent auditor is registered and in good standing with the
Canadian Public Accounting Board and the Public Company Accounting Oversight
Board and that the independent auditor satisfies all applicable Canadian
independence standards, Independence Standards Board Standard No. 1, and SEC
Regulation S-X, Section 2-01. The Committee shall obtain from the auditor a
written statement delineating all relationships between the auditor and the
Company as per ISB Standard 1, and review relationships that may impact the
objectivity and independence of the auditor. </P>
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<P align=center>- 4 -</P>
<P style="MARGIN-LEFT: 10%" align=justify>(iii) The Committee shall discuss with
the independent auditor the matters required to be discussed by Statement on
Auditing Standards No. 61 relating to the conduct of the audit, including</P>
<P style="MARGIN-LEFT: 15%" align=justify>(A) the adoption of, or changes to,
the Company&#146;s significant auditing and accounting principles and practices as
suggested by the independent auditor, internal auditors or management;</P>
<P style="MARGIN-LEFT: 15%" align=justify>(B) the management letter provided by
the independent auditor and the Company&#146;s response to that letter; and</P>
<P style="MARGIN-LEFT: 15%" align=justify>(C) any difficulties encountered in
the course of the audit work, including any restrictions on the scope of
activities or access to requested information, and any significant disagreements
with management.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(iv) The Committee shall obtain from
the independent auditor assurance that the audit was conducted in a manner
consistent with Section 10A of the Securities Exchange Act of 1934 and that, in
the course of conducting the audit, the independent auditor has not become aware
of information indicating that an illegal act has or may have occurred or, if
such an act may have occurred, that the independent auditor has taken all action
required by Section 10A(b) of the Securities Exchange Act of 1934.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(v) The Committee shall make such
inquiries to the management and the independent auditor as the Committee members
deem necessary or appropriate to satisfy themselves regarding the efficacy of
the Company&#146;s financial and internal controls and procedures and the auditing
process.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">(d) </TD>
    <TD>
      <P align=justify><B><I>Compliance and
Oversight.</I></B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>(i) The Committee shall meet
periodically with management and the independent auditor in separate executive
sessions. The Committee may also, to the extent it deems necessary or
appropriate, meet with the Company&#146;s investment bankers and financial analysts
who follow the Company. </P>
<P style="MARGIN-LEFT: 10%" align=justify>(ii) The Committee shall discuss with
management and the independent auditor the effect of regulatory and accounting
initiatives as well as off-balance sheet structures on the Company&#146;s financial
statements. </P>
<P style="MARGIN-LEFT: 10%" align=justify>(iii) The Committee shall discuss with
management the Company&#146;s major financial risk exposures and the steps management
has taken to monitor and control such exposures, including the Company&#146;s risk
assessment and risk management policies, and regularly review the top risks
identified by management and the policies and practices adopted by the Company
to mitigate those risks.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(iv) At least annually and prior to
the filing of the AIF/Annual Report to the SEC, the Committee shall review with
management and the independent auditor the disclosure controls and procedures
and confirm that the Company (with CEO and CFO participation) has evaluated the
effectiveness of the design and operation of the controls within 90 days prior
to the date of filing of the AIF/Annual Report to the SEC. The
Committee also shall review with management and the independent auditor any
deficiencies in the design and operation of internal controls and significant
deficiencies or material weaknesses therein and any fraud involving management
or other employees who have a significant role in the Company&#146;s internal
controls. As a part of that review, the Committee shall review the process
followed in preparing and verifying the accuracy of the required CEO and CFO
annual certifications.</P>
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<P align=center>- 5 -</P>
<P style="MARGIN-LEFT: 10%" align=justify>(v) At least annually and prior to the
filing of the AIF/Annual Report to the SEC, the Committee shall review with
management and the independent auditor management&#146;s internal control report and
assessment of the internal controls and procedures, and the independent
auditor&#146;s report on and assessment of the internal controls and procedures. </P>
<P style="MARGIN-LEFT: 10%" align=justify>(vi) The Committee shall establish
procedures for the receipt, retention and treatment of complaints received by
the Company regarding accounting, internal accounting controls or auditing
matters, and the confidential, anonymous submission by employees of concerns
regarding questionable accounting or auditing matters.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(vii) The Committee shall discuss with
management and the independent auditor any correspondence with regulators or
governmental agencies and any employee complaints or reports which raise
material issues regarding the Company&#146;s financial statements or accounting
policies.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(viii) At least annually, the
Committee shall meet with the Company&#146;s legal counsel and discuss any legal
matters that may have a material impact on the financial statements or the
Company&#146;s compliance policies.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(ix) The Committee shall oversee the
preparation of reports relating to the Audit Committee required under applicable
laws, regulations and stock exchange requirements. </P>
<P style="MARGIN-LEFT: 10%" align=justify>(x) The Committee shall exercise
oversight with respect to anti-fraud programs and controls</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">(e) </TD>
    <TD>
      <P align=justify><B><I>Related Party
  Transactions.</I></B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>(i) The Committee shall review for
fairness to the Company proposed transactions, contracts and other arrangements
between the Company and its subsidiaries and any related party or affiliate, and
make recommendations to the Board whether any such transactions, contracts and
other arrangements should be approved or continued. The foregoing shall not
include any compensation payable pursuant to any plan, program, contract or
arrangement subject to the authority of the Company&#146;s Compensation Committee.
</P>
<P style="MARGIN-LEFT: 10%" align=justify>(ii) As used herein the term &#147;related
party&#148; means any officer or director of the Company or any subsidiary, or any
shareholder holding a greater than 10% direct or indirect financial or voting
interest in the Company, and the term &#147;affiliate&#148; means any person, whether
acting alone or in concert with others, that has the power to exercise a
controlling influence over the Company and its subsidiaries. "Related party"
includes Hunter Dickinson Services Inc. </P>
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noShade SIZE=5>
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<P align=center>- 6 -</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">(f) </TD>
    <TD>
      <P align=justify><B><I>Additional duties. </I></B>The Committee shall
      perform the following additional duties:</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>(i) The Committee shall review and
recommend hedging and dividend policies.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(ii) The Committee shall oversee the
Company&#146;s insurance program and approve insurance policy limits.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(iii) The Committee shall review the
appointment of senior financial personnel and make recommendations to the Board
of Directors regarding the appointment of the Chief Financial Officer.</P>
<P style="MARGIN-LEFT: 10%" align=justify>(iv) The Committee shall recommend to
the Nominating and Governance Committee the qualifications and criteria for
membership on the Committee.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="10%" ><FONT color=#0099FF size="3"><B>2.</B>
      </FONT></TD>
    <TD>      <P align=justify><font color="#0099FF" size="3"><B>STRUCTURE AND
  MEMBERSHIP</B></font></P></TD>
  </TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>(a) <B>Number and qualification</B>.
The Committee shall consist of three persons unless the Board should from time
to time otherwise determine. All members of the Committee shall meet the
experience and financial literacy requirements of National Instrument NI 52-110
and the rules of the Toronto Stock Exchange and the NYSE Amex. At least one
member of the Committee shall be a &#147;financial expert&#148; as defined in Item 407 of
SEC Regulation S-K. </P>
<P style="MARGIN-LEFT: 5%" align=justify>(b) <B>Selection and Removal</B>.
Members of the Committee shall be appointed by the Board, upon the
recommendation of the Nominating and Corporate Governance Committee. The Board
may remove members of the Committee at any time with or without cause.</P>
<P style="MARGIN-LEFT: 5%" align=justify>(c) <B>Independence</B>. All of the
members of the Committee shall be &#147;independent&#148; as required for audit committees
by National Instrument NI 52-110, the rules of the Toronto Stock Exchange and
the NYSE Amex, and SEC Rule 10A-3.</P>
<P style="MARGIN-LEFT: 5%" align=justify>(d) <B>Chair</B>. Unless the Board
elects a Chair of the Committee, the Committee shall elect a Chair by majority
vote.</P>
<P style="MARGIN-LEFT: 5%" align=justify>(e) <B>Compensation</B>. The
compensation of the Committee shall be as determined by the Board.</P>
<P style="MARGIN-LEFT: 5%" align=justify>(f) <B>Term</B>. Members of the
Committee shall be appointed for one-year terms. Each member shall serve until
his or her replacement is appointed, or until he or she resigns or is removed
from the Board or the Committee.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="10%" ><FONT color=#0099FF size="3"><B>3.</B>
      </FONT></TD>
    <TD>      <P align=justify><font color="#0099FF" size="3"><B>PROCEDURES AND
  ADMINISTRATION</B></font></P></TD>
  </TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>(a) <B>Meetings</B>. The Committee
shall meet as often as it deems necessary in order to perform its
responsibilities, but not less than quarterly. The Committee shall keep minutes
of its meetings and any other records as it deems appropriate.</P>
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<P align=center>- 7 -</P>
<P style="MARGIN-LEFT: 5%" align=justify>(b) <B>Subcommittees</B>. The Committee
may form and delegate authority to one or more subcommittees, consisting of at
least one member, as it deems appropriate from time to time under the
circumstances.</P>
<P style="MARGIN-LEFT: 5%" align=justify>(c) <B>Reports to the Board</B>. The
Committee shall regularly report to the Board with respect to such matters as
are relevant to the Committee&#146;s discharge of its responsibilities, and shall
report in writing on request of the Chairman of the Board.</P>
<P style="MARGIN-LEFT: 5%" align=justify>(d) <B>Charter</B>. The Committee
shall, at least annually, review and reassess the adequacy of this Charter and
recommend any proposed changes to the Board for approval.</P>
<P style="MARGIN-LEFT: 5%" align=justify>(e) <B>Independent Advisors</B>. The
Committee shall have the authority to engage such independent legal and other
advisors as it deems necessary or appropriate to carry out its responsibilities.
Such independent advisors may be regular advisors to the Company. The Committee
is empowered, without further action by the Board, to cause the Company to pay
appropriate compensation to advisors engaged by the Committee.</P>
<P style="MARGIN-LEFT: 5%" align=justify>(f) <B>Investigations</B>. The
Committee shall have the authority to conduct or authorize investigations into
any matters within the scope of its responsibilities as it deems appropriate,
including the authority to request any Officer or other person to meet with the
Committee and to access all Company records.</P>
<P style="MARGIN-LEFT: 5%" align=justify>(g) <B>Annual Self-Evaluation</B>. The
Committee shall evaluate its own performance at least annually.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="10%" ><FONT color=#0099FF size="3"><B>4.</B>
      </FONT></TD>
    <TD>      <P align=justify><font color="#0099FF" size="3"><B>ADDITIONAL POWERS</B></font></P></TD>
  </TR></TABLE>
<P align=justify>The Committee shall have such other duties as may be delegated
from time to time by the Board of Directors.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="10%" ><FONT color=#0099FF size="3"><B>5.</B>
      </FONT></TD>
    <TD>      <P align=justify><font color="#0099FF" size="3"><B>LIMITATION OF COMMITTEE&#146;S
  ROLE</B></font></P></TD>
  </TR></TABLE>
<P align=justify>While the Committee has the responsibilities and powers set
forth in this Charter, it is not the duty of the Committee to plan or conduct
audits or to determine that the Company&#146;s financial statements and disclosures
are complete and accurate and are in accordance with GAAP and applicable rules
and regulations. These are the responsibilities of management and the
independent auditor.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="10%" ><FONT color=#0099FF size="3"><B>6.</B>
      </FONT></TD>
    <TD>      <P align=justify><font color="#0099FF" size="3"><B>COMMITTEE MEMBER INDEPENDENCE, FINANCIAL LITERACY AND
  FINANCIAL EXPERT REQUIREMENTS</B></font></P></TD>
  </TR></TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left ><B>A.</B> </TD>
    <TD align=left width="95%"><B>Independence</B> </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="95%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >(a) </TD>
    <TD align=left width="95%">See Appendix 2 of the Company&#146;s Corporate
      Governance Overview and Guidelines. </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="95%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>B.</B> </TD>
    <TD align=left width="95%"><B>Financial Literacy and Financial Expert
      Requirements</B> </TD></TR></TABLE>
<P align=justify><B>NI 52-110</B></P>
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<P align=center>- 8 -</P>
<P align=justify>Section 3.1(4) states that each audit committee member must be
financially literate.</P>
<P align=justify>Section 1.6 defines the meaning of financial literacy as
follows:</P>
<P align=justify>&#147;For the purposes of this Instrument, an individual is
financially literate if he or she has the ability to read and understand a set
of financial statements that present a breadth and level of complexity of
accounting issues that are generally comparable to the breadth and complexity of
the issues that can reasonably be expected to be raised by the issuer&#146;s
financial statements.&#148;</P>
<P align=justify><B>NYSE AMEX Section 803(B)(2)(a)(iii)</B></P>
<P align=justify>Each issuer must have an Audit Committee of at least three
members, each of whom:</P>
<P align=justify>&#147;is able to read and understand fundamental financial
statements, including a company&#146;s balance sheet, income statement, and cash flow
statement. Additionally, each issuer must certify that it has, and will continue
to have, at least one member of the audit committee who is financially
sophisticated, in that he or she has past employment experience in finance or
accounting, requisite professional certification in accounting, or any other
comparable experience or background which results in the individual&#146;s financial
sophistication, including but not limited to being or having been a chief
executive officer, chief financial officer, other senior officer with financial
oversight responsibilities. A director who qualifies as an audit committee
financial expert under Item 407(d)(5)(ii) of Regulation S-K is presumed to
qualify as financially sophisticated.&#148;</P>
<P align=justify><B>ITEM 407(d)(5)(ii) 0F REGULATION S-K, DEFINITION OF
FINANCIAL EXPERT</B></P>
<P align=justify>For purposes of this Item, an audit committee financial expert
means a person who has the following attributes:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(A) </TD>
    <TD>
      <P align=justify>An understanding of generally accepted accounting
      principles and financial statements;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(B) </TD>
    <TD>
      <P align=justify>The ability to assess the general application of such
      principles in connection with the accounting for estimates, accruals and
      reserves;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(C) </TD>
    <TD>
      <P align=justify>Experience preparing, auditing, analyzing or evaluating
      financial statements that present a breadth and level of complexity of
      accounting issues that are generally comparable to the breadth and
      complexity of issues that can reasonably be expected to be raised by the
      small business issuer&#146;s financial statements, or experience actively
      supervising one or more persons engaged in such activities;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(D) </TD>
    <TD>
      <P align=justify>An understanding of internal control over financial
      reporting; and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(E) </TD>
    <TD>
      <P align=justify>An understanding of audit committee
  functions.</P></TD></TR></TABLE>
<P align=justify>A person shall have acquired such attributes through: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(A) </TD>
    <TD>
      <P align=justify>Education and experience as a principal financial
      officer, principal accounting officer, controller, public accountant or
      auditor or experience in one or more positions that involve the
      performance of similar functions;</P></TD></TR></TABLE><BR>
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<P align=center>- 9 -</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(B) </TD>
    <TD>
      <P align=justify>Experience actively supervising a principal financial
      officer, principal accounting officer, controller, public accountant,
      auditor or person performing similar functions;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(C) </TD>
    <TD>
      <P align=justify>Experience overseeing or assessing the performance of
      companies or public accountants with respect to the preparation, auditing
      or evaluation of financial statements; or</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(D) </TD>
    <TD>
      <P align=justify>Other relevant experience.</P></TD></TR></TABLE><BR>
<HR align=center width="100%" color=black noShade SIZE=5>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.6
<SEQUENCE>7
<FILENAME>exhibit99-6.htm
<DESCRIPTION>AUDITED CONSOLIDATED FINANCIAL STATEMENTS
<TEXT>


<HTML>
<HEAD>
   <TITLE>Taseko Mines Limited - Exhibit 99.6 - Filed by newsfilecorp.com</TITLE>
   <META name="HandheldFriendly" content="true">
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<BODY style="font-size:10pt;">

<HR noshade align="center" width=100% size=3 color="black">

<P><A name=page_1></A>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P align=center><IMG
src="taseko.jpg" width="361" height="49" border=0> <BR>
</P>
<P align=center><FONT size=3>Consolidated Financial Statements</FONT><BR><FONT
size=3>December 31, 2011 and 2010</FONT></P>
<P align=center>&nbsp;</P>
<P align=center>&nbsp;</P>
<P align=center>&nbsp;</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_2></A>
<P align=justify><B>MANAGEMENT&#146;S RESPONSIBILITY FOR FINANCIAL STATEMENTS
</B></P>
<P align=justify>The consolidated financial statements, the notes thereto and
other financial information contained in the Management&#146;s Discussion and
Analysis have been prepared in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards Board and are the
responsibility of the management of Taseko Mines Limited. The financial
information presented elsewhere in the Management&#146;s Discussion and Analysis is
consistent with the data that is contained in the consolidated financial
statements. The consolidated financial statements, where necessary, include
amounts which are based on the best estimates and judgment of management. </P>
<P align=justify>In order to discharge management&#146;s responsibility for the
integrity of the financial statements, the Company maintains a system of
internal accounting controls. These controls are designed to provide reasonable
assurance that the Company&#146;s assets are safeguarded, transactions are executed
and recorded in accordance with management&#146;s authorization, proper records are
maintained and relevant and reliable financial information is produced. These
controls include maintaining quality standards in hiring and training of
employees, establishing policies and procedures, a corporate code of conduct and
ensuring that there is proper accountability for performance within appropriate
and well-defined areas of responsibility. </P>
<P align=justify>The Board of Directors is responsible for overseeing
management&#146;s performance of its responsibilities for financial reporting and
internal control. The Audit Committee, which is composed of non-executive
directors, meets with management as well as the external auditors to ensure that
management is properly fulfilling its financial reporting responsibilities to
the Directors who approve the consolidated financial statements. The external
auditors have full and unrestricted access to the Audit Committee to discuss the
scope of their audits, the adequacy of the system of internal controls and
review financial reporting issues. </P>
<P align=justify>The consolidated financial statements have been audited by KPMG
LLP, the Company&#146;s independent registered chartered accountants, in accordance
with Canadian generally accepted auditing standards and standards of the Public
Company Accounting Oversight Board (United States). </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>/s/ Russell Hallbauer </TD>
    <TD width="50%" align=left>/s/ Peter Mitchell </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>Russell Hallbauer </TD>
    <TD width="50%" align=left>Peter Mitchell </TD></TR>
  <TR vAlign=top>
    <TD align=left>Chief Executive Officer </TD>
    <TD width="50%" align=left>Chief Financial Officer </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>Vancouver, British Columbia </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>March 9, 2012 </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_3></A>
<P align=justify><B>MANAGEMENT&#146;S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING </B></P>
<P align=justify>The Company&#146;s management, including the Chief Executive Officer
and the Chief Financial Officer, is responsible for establishing and maintaining
adequate internal control over financial reporting. Internal control over
financial reporting is defined in Rule 13a-15(f) and Rule 15d-15(f) promulgated
under the Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;) as a
process designed by, or under the supervision of, the Company&#146;s principal
executive and principal financial officers and effected by the Company&#146;s Board
of Directors, management and other personnel, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with International
Financial Reporting Standards. The Company&#146;s internal control over financial
reporting includes those policies and procedures that: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>pertain to the maintenance of records that, in reasonable detail,
  accurately and fairly reflect the transactions and dispositions of the assets
  of the Company; </P>
  <LI>
  <P>provide reasonable assurance that transactions are recorded as necessary to
  permit preparation of financial statements in accordance with generally
  accepted accounting principles, and that receipts and expenditures of the
  Company are being made only in accordance with authorizations of management
  and directors of the Company; and </P>
  <LI>
  <P>provide reasonable assurance regarding prevention or timely detection of
  unauthorized acquisition, use or disposition of the Company&#146;s assets that
  could have a material effect on the financial statements. </P></LI></UL>
<P align=justify>The Company&#146;s management, under the supervision of the Chief
Executive Officer and the Chief Financial Officer, assessed the effectiveness of
the Company&#146;s internal control over financial reporting as defined in Rule
13a-15(f) and Rule 15d-15(f) under the Exchange Act as of December 31, 2011. In
making this assessment, it used the criteria set forth in the Internal
Control-Integrated Framework issued by the Committee of Sponsoring Organizations
of the Treadway Commission (COSO). Based on this assessment, management has
concluded that, as of December 31, 2011, the Company&#146;s internal control over
financial reporting is effective based on those criteria.</P>
<P align=justify>The effectiveness of the Company&#146;s internal control over
financial reporting as of December 31, 2011 has been audited by KPMG LLP, the
Company&#146;s independent registered chartered accountants, as stated in their
report immediately preceding the Company&#146;s audited consolidated financial
statements for the years ended December 31, 2011 and 2010. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>/s/ Russell Hallbauer </TD>
    <TD width="50%" align=left>/s/ Peter Mitchell </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>Russell Hallbauer </TD>
    <TD width="50%" align=left>Peter Mitchell </TD></TR>
  <TR vAlign=top>
    <TD align=left>Chief Executive Officer </TD>
    <TD width="50%" align=left>Chief Financial Officer </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>Vancouver, British Columbia </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>March 9, 2012 </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_4></A><br>
<IMG
src="kpmglogo.jpg" width="95" height="42" border=0> <BR>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 8pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD  align=left>&nbsp;</TD>
    <TD width="40%" align=left ><B>KPMG LLP </B></TD>
    <TD width="10%" align=left >Telephone </TD>
    <TD width="23%" align=left>(604) 691-3000 </TD></TR>
  <TR vAlign=top>
    <TD  align=left>&nbsp;</TD>
    <TD width="40%" align=left ><B>Chartered Accountants </B></TD>
    <TD width="10%" align=left >Fax </TD>
    <TD width="23%" align=left>(604) 691-3031 </TD></TR>
  <TR vAlign=top>
    <TD  align=left>&nbsp;</TD>
    <TD width="40%" align=left >PO Box 10426 777 Dunsmuir Street
    </TD>
    <TD width="10%" align=left >Internet </TD>
    <TD width="23%" align=left>www.kpmg.ca </TD></TR>
  <TR vAlign=top>
    <TD  align=left>&nbsp;</TD>
    <TD width="40%" align=left >Vancouver BC V7Y 1K3 </TD>
    <TD width="10%" align=left >&nbsp; </TD>
    <TD width="23%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD  align=left>&nbsp;</TD>
    <TD width="40%" align=left >Canada </TD>
    <TD width="10%" align=left >&nbsp; </TD>
    <TD width="23%" align=left>&nbsp; </TD></TR></TABLE></DIV>
<P align=center><B><FONT size=4>INDEPENDENT AUDITORS&#146; REPORT OF REGISTERED
PUBLIC ACCOUNTING FIRM</FONT></B></P>
<P align=justify>To the Shareholders of Taseko Mines Limited</P>
<P align=justify>We have audited the accompanying consolidated financial
  statements of Taseko Mines Limited, which comprise the consolidated balance
  sheets as at December 31, 2011, December 31, 2010 and January 1, 2010, the
  consolidated statements of comprehensive income, changes in equity and cash
  flows for the years ended December 31, 2011 and December 31, 2010, and notes,
  comprising a summary of significant accounting policies and other explanatory
  information.</P>
<P align=justify><I>Management&#146;s Responsibility for the Consolidated Financial
  Statements</I></P>
<P align=justify>Management is responsible for the preparation and fair
  presentation of these consolidated financial statements in accordance with
  International Financial Reporting Standards as issued by the International
  Accounting Standards Board, and for such internal control as management
  determines is necessary to enable the preparation of consolidated financial
  statements that are free from material misstatement, whether due to fraud or
  error.</P>
<P align=justify><I>Auditors&#146; Responsibility</I></P>
<P align=justify>Our responsibility is to express an opinion on these
  consolidated financial statements based on our audits. We conducted our audits
  in accordance with Canadian generally accepted auditing standards and the
  standards of the Public Company Accounting Oversight Board (United States).
  Those standards require that we comply with ethical requirements and plan and
  perform the audit to obtain reasonable assurance about whether the consolidated
  financial statements are free from material misstatement.</P>
<P align=justify>An audit involves performing procedures to obtain audit
  evidence about the amounts and disclosures in the consolidated financial
  statements. The procedures selected depend on our judgment, including the
  assessment of the risks of material misstatement of the consolidated financial
  statements, whether due to fraud or error. In making those risk assessments, we
  consider internal control relevant to the entity&#146;s preparation and fair
  presentation of the consolidated financial statements in order to design audit
  procedures that are appropriate in the circumstances, but not for the purpose of
  expressing an opinion on the effectiveness of the entity&#146;s internal control. An
  audit also includes evaluating the appropriateness of accounting policies used
  and the reasonableness of accounting estimates made by management, as well as
  evaluating the overall presentation of the consolidated financial
  statements.</P>
<P align=justify>We believe that the audit evidence we have obtained in our
  audits is sufficient and appropriate to provide a basis for our audit
  opinion.<br>
  <br>
</P>
<P style="MARGIN-LEFT: 30%" align=justify><FONT size=1>KPMG LLP is a Canadian
limited liability partnership and a member firm of the KPMG <BR></FONT><FONT
size=1>network of independent member firms affiliated with KPMG International
Cooperative </FONT><BR><FONT size=1>(&#147;KPMG International&#148;), a Swiss entity.
</FONT><BR>
  <FONT size=1>KPMG Canada provides services to KPMG LLP. </FONT></P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_5></A><br>
<IMG src="kpmgmini.jpg" width="50" height="22" border=0> <BR>
<P align=right><I>Taseko Mines Limited </I><BR><I>Page 2 </I><BR></P>
<P align=justify><I>Opinion</I></P>
<P align=justify>In our opinion, the consolidated financial statements present
  fairly, in all material respects, the consolidated financial position of Taseko
  Mines Limited as at December 31, 2011, December 31, 2010 and January 1, 2010,
  and its consolidated financial performance and its consolidated cash flows for
  the years ended December 31, 2011 and December 31, 2010 in accordance with
  International Financial Reporting Standards as issued by the International
  Accounting Standards Board.</P>
<P align=justify><I>Other Matter</I></P>
<P align=justify>We have also audited, in accordance with the standards of the
  Public Company Accounting Oversight Board (United States), Taseko Mines
  Limited's internal control over financial reporting as of December 31, 2011,
  based on the criteria established in Internal Control &#151; Integrated Framework,
  issued by the Committee of Sponsoring Organizations of the Treadway Commission
  (COSO), and our report dated March 29, 2012 expressed an unqualified opinion on
  the effectiveness of Taseko Mines Limited&#146;s internal control over financial
  reporting.</P>
<P align=justify><B>\\s\\ KPMG LLP</B></P>
<P align=justify>Chartered Accountants</P>
<P align=justify>March 29, 2012 <BR>
Vancouver, Canada</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_4></A><br>
<IMG
src="kpmglogo.jpg" width="95" height="42" border=0> <BR>
<DIV>
  <TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 8pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
    <TR vAlign=top>
      <TD  align=left>&nbsp;</TD>
      <TD width="40%" align=left ><B>KPMG LLP </B></TD>
      <TD width="10%" align=left >Telephone </TD>
      <TD width="23%" align=left>(604) 691-3000 </TD>
    </TR>
    <TR vAlign=top>
      <TD  align=left>&nbsp;</TD>
      <TD width="40%" align=left ><B>Chartered Accountants </B></TD>
      <TD width="10%" align=left >Fax </TD>
      <TD width="23%" align=left>(604) 691-3031 </TD>
    </TR>
    <TR vAlign=top>
      <TD  align=left>&nbsp;</TD>
      <TD width="40%" align=left >PO Box 10426 777 Dunsmuir Street </TD>
      <TD width="10%" align=left >Internet </TD>
      <TD width="23%" align=left>www.kpmg.ca </TD>
    </TR>
    <TR vAlign=top>
      <TD  align=left>&nbsp;</TD>
      <TD width="40%" align=left >Vancouver BC V7Y 1K3 </TD>
      <TD width="10%" align=left >&nbsp;</TD>
      <TD width="23%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD  align=left>&nbsp;</TD>
      <TD width="40%" align=left >Canada </TD>
      <TD width="10%" align=left >&nbsp;</TD>
      <TD width="23%" align=left>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P align=justify><B><FONT size=4>REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM</FONT></B></P>
<P align=justify>To the Board of Directors of Taseko Mines Limited</P>
<P align=justify>We have audited Taseko Mines Limited (the &#147;Company")&#146;s internal
  control over financial reporting as of December 31, 2011 based on the criteria
  established in Internal Control&#151;Integrated Framework issued by the Committee of
  Sponsoring Organizations of the Treadway Commission (COSO). The Company's
  management is responsible for maintaining effective internal control over
  financial reporting and for its assessment of the effectiveness of internal
  control over financial reporting. Our responsibility is to express an opinion on
  the Company's internal control over financial reporting based on our audit.</P>
<P align=justify>We conducted our audit in accordance with the standards of the
  Public Company Accounting Oversight Board (United States). Those standards
  require that we plan and perform the audit to obtain reasonable assurance about
  whether effective internal control over financial reporting was maintained in
  all material respects. Our audit included obtaining an understanding of internal
  control over financial reporting, assessing the risk that a material weakness
  exists, and testing and evaluating the design and operating effectiveness of
  internal control based on the assessed risk. Our audit also included performing
  such other procedures as we considered necessary in the circumstances. We
  believe that our audit provides a reasonable basis for our opinion.</P>
<P align=justify>A company's internal control over financial reporting is a
  process designed to provide reasonable assurance regarding the reliability of
  financial reporting and the preparation of financial statements for external
  purposes in accordance with generally accepted accounting principles. A
  company's internal control over financial reporting includes those policies and
  procedures that (1) pertain to the maintenance of records that, in reasonable
  detail, accurately and fairly reflect the transactions and dispositions of the
  assets of the company; (2) provide reasonable assurance that transactions are
  recorded as necessary to permit preparation of financial statements in
  accordance with generally accepted accounting principles, and that receipts and
  expenditures of the company are being made only in accordance with
  authorizations of management and directors of the company; and (3) provide
  reasonable assurance regarding prevention or timely detection of unauthorized
  acquisition, use, or disposition of the company's assets that could have a
  material effect on the financial statements. </P>
<P align=justify>Because of its inherent
  limitations, internal control over financial reporting may not prevent or detect
  misstatements. Also, projections of any evaluation of effectiveness to future
  periods are subject to the risk that controls may become inadequate because of
  changes in conditions, or that the degree of compliance with the policies or
  procedures may deteriorate.<br>
  <br>
</P>
<P style="MARGIN-LEFT: 30%" align=justify><FONT size=1>KPMG LLP is a Canadian
  limited liability partnership and a member firm of the KPMG <BR>
  </FONT><FONT
size=1>network of independent member firms affiliated with KPMG International
    Cooperative </FONT><BR>
  <FONT size=1>(&#147;KPMG International&#148;), a Swiss entity. </FONT><BR>
  <FONT size=1>KPMG Canada provides services to KPMG LLP. </FONT></P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<p><A name=page_5></A><br>
<IMG src="kpmgmini.jpg" width="50" height="22" border=0> </p>
<P align=justify>In our opinion, the Company maintained, in all material
  respects, effective internal control over financial reporting as of December 31,
  2011, based on the criteria established in Internal Control&#151;Integrated Framework
  issued by the Committee of Sponsoring Organizations of the Treadway Commission
  (COSO).</P>
<P align=justify>We also have audited, in accordance with the standards of the
  Public Company Accounting Oversight Board (United States), the consolidated
  balance sheets of the Company and subsidiaries as of December 31, 2011, December
  31, 2010 and January 1, 2010 and the related consolidated statements of
  comprehensive income, changes in equity and cash flows for the years ended
  December 31, 2011 and December 31, 2010, and our report dated March 29, 2012
  expressed an unqualified opinion on those consolidated financial statements.</P>
<P align=justify><B>\\s\\ KPMG LLP</B></P>
<P align=justify>Chartered Accountants<BR>
</P>
<P align=justify>March 29, 2012 <BR>
  Vancouver, Canada</P>
<p><BR>
</p>
<P align=right><I>Taseko Mines Limited </I><BR>
    <I>Page 2 </I></P><HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_6></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD></TR>
  <TR vAlign=top>
    <TD align=left>Consolidated Statements of Comprehensive Income </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in
      thousands, except per share amounts) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=right >For the years ended </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=right >December 31, </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD  width="8%"
    align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Note </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >2010 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Revenues </TD>
    <TD bgColor=#e6efff  width="8%" align=center>4 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right >&nbsp;251,866 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right >&nbsp;278,460 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Cost of sales </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="8%"
    align=center>5 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >(165,565</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >(157,759</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Gross profit </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >86,301 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >120,701 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>General and administrative </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >(21,100</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >(19,057</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Exploration and evaluation </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >(10,411</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >(10,090</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Other operating income (expenses) </TD>
    <TD bgColor=#e6efff  width="8%" align=center>7 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >5,175 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >(2,675</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Gain (loss) on contribution
      to joint venture </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="8%"
    align=center>3 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >(3,987</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >98,157 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >55,978 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >187,036 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Finance expenses </TD>
    <TD bgColor=#e6efff  width="8%" align=center>8 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >(22,492</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >(10,747</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Finance income </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="8%"
    align=center>9 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >17,270 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >19,572 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Earnings before income taxes </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >50,756 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >195,861 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Income tax expense </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="8%" align=center>10 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right >(23,782</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right >(46,504</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Net earnings for
      the year </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="8%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    ><B>&nbsp;26,974 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    ><B>&nbsp;149,357 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Other comprehensive income (loss): </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left >&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left >&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Unrealized gains (losses) on available-for-sale
    </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;financial assets, net of tax </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >(2,401</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >5,249 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Realized gains on available-for-sale
    </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;financial assets,
      net of tax </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="8%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >(5,246</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >(3,576</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD
      align=left nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>Total other comprehensive income (loss) for the year </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="8%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right ><B>&nbsp;(7,647</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right ><B>&nbsp;1,673 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left><B>Total comprehensive income for the year </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="8%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right ><B>&nbsp;19,327 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD width="12%"
    align=right nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid" ><B>&nbsp;151,030 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Earnings per share </B></TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Basic </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right >&nbsp;0.14 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right >&nbsp;0.80 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Diluted </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right >&nbsp;0.14 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right >&nbsp;0.74 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Weighted-average shares outstanding (thousands)
      </B></TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Basic </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >193,213 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >186,103 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Diluted </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >197,748 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >203,006 </TD>
    <TD bgColor=#e6efff  width="2%"
  align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify>The accompanying notes are an integral part of these
consolidated financial statements.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_7></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD></TR>
  <TR vAlign=top>
    <TD align=left>Consolidated Statements of Cash Flows </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in
      thousands) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=right >For the years ended </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=right >December 31, </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD  width="8%"
    align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Note </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >2010 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Operating activities </B></TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Net earnings for the year </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right >26,974 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right >&nbsp;149,357 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Adjustments for: </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Depreciation </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >12,827 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >12,973 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp; &nbsp;Income tax expense </TD>
    <TD bgColor=#e6efff  width="8%" align=center>10 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >23,782 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >46,504 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Income tax paid </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >(38,660</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >(1,911</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp; &nbsp;Share-based compensation
    </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >8,215 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >9,260 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Unrealized gain on derivatives </TD>
    <TD  width="8%" align=center>7 </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >(22,944</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >(8,877</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp; &nbsp;Finance expenses </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >18,164 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >7,403 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Finance income </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >(13,963</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >(5,018</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp; &nbsp;Gain on contribution to
      joint venture </TD>
    <TD bgColor=#e6efff  width="8%" align=center>3 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >(98,157</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Other operating activities </TD>
    <TD  width="8%" align=center>24 </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >9,617 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >837 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Net change in non-cash working capital </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="8%" align=center>24 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right >(12,348</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right >(18,293</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Cash provided by operating activities </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >11,664 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >94,078 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Investing activities </B></TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left >&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left >&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Purchase of property, plant and equipment
    </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >(63,915</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >(55,303</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Purchase of financial assets </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap >(235,595</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >(24,009</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Interest received </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >7,093 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >2,629 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Proceeds from sale of financial assets </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >169,515 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >16,449 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Proceeds from contribution to joint venture
    </TD>
    <TD bgColor=#e6efff  width="8%" align=center>3 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >186,811 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Other investing
      activities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="8%"
    align=center>24 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >(1,066</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >1,860 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff>Cash provided by (used for) investing activities    </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >(123,968</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >128,437 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Financing activities </B></TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Repayment of debt </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >(10,729</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >(56,823</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Interest paid </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >(10,121</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >(3,118</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Common shares issued for cash </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >8,420 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >3,837 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Proceeds from debt issuance </TD>
    <TD bgColor=#e6efff  width="8%" align=center>19 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >192,020 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >14,077 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Debt issuance
      costs </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="8%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >(6,052</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff>Cash provided by (used for) financing activities    </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >173,538 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >(42,027</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Effect of exchange rate changes on </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;cash and equivalents
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="8%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >4,765 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >(3,777</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Increase in cash and equivalents </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >65,999 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >176,711 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Cash and equivalents,
      beginning of year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="8%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >211,793 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >35,082 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left><B>Cash and equivalents, end of year </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="8%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD width="12%"
    align=right nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid" ><B>277,792 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD width="12%"
    align=right nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid" ><B>&nbsp;211,793 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify>The accompanying notes are an integral part of these
consolidated financial statements.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_8></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD></TR>
  <TR vAlign=top>
    <TD align=left>Consolidated Balance Sheets </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in
      thousands) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap >December 31, </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap >December 31, </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap >January 1, </TD>
  <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD  width="8%"
    align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Note </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >2010 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >2010 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>ASSETS </B></TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Current assets </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left >&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left >&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left >&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Cash and equivalents </TD>
    <TD bgColor=#e6efff  width="8%" align=center>24a </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right >&nbsp;277,792
</TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right >&nbsp;211,793
</TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right >&nbsp;35,082 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Accounts receivable </TD>
    <TD  width="8%" align=center>11 </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >39,909 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >21,918 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >12,505 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Other financial assets </TD>
    <TD bgColor=#e6efff  width="8%" align=center>12 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >86,147 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >26,202 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >21,634 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Inventories </TD>
    <TD  width="8%" align=center>13 </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >23,290 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >21,286 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >21,792 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Current tax receivable </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >7,437 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >&#150; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >&#150; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Prepaids </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="8%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >2,348 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >534 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >2,112 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >436,923 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >281,733 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >93,125 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Other financial assets </TD>
    <TD bgColor=#e6efff  width="8%" align=center>12 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >111,641 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >93,825 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >102,821 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Property, plant and equipment </TD>
    <TD  width="8%" align=center>14 </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >440,565 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >341,098 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >366,299 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Intangible assets </TD>
    <TD bgColor=#e6efff  width="8%" align=center>15 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >5,438 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >5,438 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >5,438 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Prepaids </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="8%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >165 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="8%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right ><B>&nbsp;994,732 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right ><B>&nbsp;722,094 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD width="12%"
    align=right nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid" ><B>&nbsp;567,683 </B></TD>
  <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>LIABILITIES </B></TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Current liabilities </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left >&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left >&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left >&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Accounts payable and accrued
      liabilities </TD>
    <TD bgColor=#e6efff  width="8%" align=center>16 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right >&nbsp;36,289 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right >&nbsp;23,796 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right >&nbsp;17,993 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Current portion of long-term debt </TD>
    <TD  width="8%" align=center>19 </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >13,753 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >10,315 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >27,678 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Other financial liabilities </TD>
    <TD bgColor=#e6efff  width="8%" align=center>17 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >10,797 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >7,248 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >28,911 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Current tax liabilities </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >&#150; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >24,528 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >370 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Deferred revenue - royalty obligation </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="8%" align=center>17a </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right >175 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right >175 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right >175 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >61,014 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >66,062 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >75,127 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Long-term debt </TD>
    <TD  width="8%" align=center>19 </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >218,502 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >28,018 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >46,525 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Other financial liabilities </TD>
    <TD bgColor=#e6efff  width="8%" align=center>17 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >45,980 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >54,144 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >89,921 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Provision for environmental rehabilitation </TD>
    <TD  width="8%" align=center>18 </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >96,022 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >53,129 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >50,700 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Deferred tax liabilities </TD>
    <TD bgColor=#e6efff  width="8%" align=center>10 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >76,091 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >59,518 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >16,880 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Deferred revenue -
      royalty obligation </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="8%"
    align=center>17a </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >306 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >481 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >656 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >497,915 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >261,352 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >279,809 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>EQUITY </B></TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Share capital </TD>
    <TD  width="8%" align=center>20a </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >378,393 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >365,553 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >350,376 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Contributed surplus </TD>
    <TD bgColor=#e6efff  width="8%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >33,040 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >26,193 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >19,532 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap>Accumulated other comprehensive income (loss) ("AOCI") </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >(1,398</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >6,249 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >4,576 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Retained earnings (deficit) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="8%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right >86,782 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right >62,747 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right >(86,610</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="8%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >496,817 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >460,742 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >287,874 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="8%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right ><B>&nbsp;994,732 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right ><B>&nbsp;722,094 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right ><B>&nbsp;567,683 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Commitments and contingencies </TD>
    <TD bgColor=#e6efff  width="8%" align=center>23 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Subsequent events </TD>
    <TD  width="8%" align=center>28 </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left >&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left >&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left >&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P align=justify>The accompanying notes are an integral part of these
consolidated financial statements.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_9></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD></TR>
  <TR vAlign=top>
    <TD align=left>Consolidated Statements of Changes in Equity </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in
      thousands) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 9pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="6%" align=center>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="9%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="9%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="9%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="9%" align=right nowrap>Retained </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="9%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="6%" align=center>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="9%" align=right>Share </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="9%" align=right nowrap>Contributed </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="9%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="9%" align=right>earnings </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="9%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD width="6%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">Note    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%"
      align=right>capital </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%"
      align=right>surplus </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD width="9%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">AOCI    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%"
      align=right>(deficit) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right>Total
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="6%" align=center>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff>Balance at January 1, 2010 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>$</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>350,376 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>$</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>&nbsp;19,532 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>$</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>&nbsp;4,576 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>$</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>&nbsp;(86,610</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>) </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>$</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>&nbsp;287,874 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Exercise of options </TD>
    <TD vAlign=bottom width="6%" align=center>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>6,436 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>(2,599</TD>
    <TD vAlign=bottom width="2%" align=left>) </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>&#150; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>&#150; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>3,837 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Shares issued </TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>8,741 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>&#150; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>&#150; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>&#150; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>8,741 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Share-based compensation </TD>
    <TD vAlign=bottom width="6%" align=center>21 </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>&#150; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>9,260 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>&#150; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>&#150; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>9,260 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff>Total comprehensive income for the year </TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="9%" align=right>&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="9%" align=right>&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="9%" align=right>1,673 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="9%" align=right>149,357 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="9%" align=right>151,030 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Balance at December 31, 2010 </TD>
    <TD vAlign=bottom width="6%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="1%"
    align=left><B>$</B></TD>
    <TD width="9%"
    align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 2px solid"><B>365,553 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="9%"
    align=right><B>&nbsp;26,193 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="1%"
    align=left><B>$</B></TD>
    <TD width="9%"
    align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 2px solid"><B>&nbsp;6,249 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="9%"
    align=right><B>&nbsp;62,747 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="1%"
    align=left><B>$</B></TD>
    <TD width="9%"
    align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 2px solid"><B>&nbsp;460,742 </B></TD>
  <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Balance at January 1, 2011 </TD>
    <TD vAlign=bottom width="6%" align=center>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>$</TD>
    <TD vAlign=bottom width="9%" align=right>365,553 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>$</TD>
    <TD vAlign=bottom width="9%" align=right>&nbsp;26,193 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>$</TD>
    <TD vAlign=bottom width="9%" align=right>&nbsp;6,249 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>$</TD>
    <TD vAlign=bottom width="9%" align=right>&nbsp;62,747 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>$</TD>
    <TD vAlign=bottom width="9%" align=right>&nbsp;460,742 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Exercise of options </TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>4,228 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>(1,368</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>) </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>&#150; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>&#150; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>2,860 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Preferred shares redemption </TD>
    <TD vAlign=bottom width="6%" align=center>20b </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>(26,642</TD>
    <TD vAlign=bottom width="2%" align=left>) </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>&#150; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>&#150; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>(2,939</TD>
    <TD vAlign=bottom width="2%" align=left>) </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>(29,581</TD>
    <TD vAlign=bottom width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Shares issued </TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=center>20b </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>35,254 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>&#150; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>&#150; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>&#150; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>35,254 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Share-based compensation </TD>
    <TD vAlign=bottom width="6%" align=center>21 </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>&#150; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>8,215 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>&#150; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>&#150; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>8,215 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Total comprehensive income for the year </TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="9%" align=right>&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="9%" align=right>&#150; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="9%" align=right>(7,647</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="9%" align=right>26,974 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="9%" align=right>19,327 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Balance at December 31, 2011 </TD>
    <TD vAlign=bottom width="6%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="1%"
    align=left><B>$</B></TD>
    <TD width="9%"
    align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 2px solid"><B>378,393 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="9%"
    align=right><B>&nbsp;33,040 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="1%"
    align=left><B>$</B></TD>
    <TD width="9%"
    align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 2px solid"><B>&nbsp;(1,398</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="2%"
    align=left><B>) </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="9%"
    align=right><B>&nbsp;86,782 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="1%"
    align=left><B>$</B></TD>
    <TD width="9%"
    align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 2px solid"><B>&nbsp;496,817 </B></TD>
  <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P align=justify>The accompanying notes are an integral part of these
consolidated financial statements.</P>
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width="100%" noShade>
<A name=page_10></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in
      thousands) </TD></TR></TABLE>
<P
align=justify><B>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;REPORTING
ENTITY </B></P>
<P align=justify>Taseko Mines Limited (the Company) is a corporation governed by
the <I>British Columbia Business Corporations Act. </I>The consolidated
financial statements of the Company as at and for the year ended December 31,
2011 comprise the Company, its subsidiaries and its 75% interest in the
Gibraltar joint venture since its formation on March 31, 2010. The Company is
principally engaged in the production and sale of metals, as well as related
activities including exploration and mine development, within the province of
British Columbia. Seasonality does not have a significant impact on the
Company&#146;s operations. </P>
<P
align=justify><B>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SIGNIFICANT
ACCOUNTING POLICIES </B></P>
<P align=justify><I>(a) &nbsp;Statement of compliance </I></P>
<P align=justify>These consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards (IFRS). These are
the Company&#146;s first consolidated financial statements prepared in accordance
with IFRS and IFRS 1, <I>First Time Adoption of International Financial
Reporting Standards </I>has been applied. </P>
<P align=justify>Note 27 provides an explanation of how the transition to IFRS
has affected the reported financial position, financial performance and cash
flows of the Company.</P>
<P align=justify>These consolidated financial statements were authorized for
issue by the Board of Directors on March 9, 2012. </P>
<P align=justify><I>(b) &nbsp;Basis of measurement </I></P>
<P align=justify>These consolidated financial statements have been prepared on a
historical cost basis except for fair-value- through-profit-or-loss,
available-for-sale and derivative financial instruments which are measured at
fair value. </P>
<P align=justify>These consolidated financial statements are presented in
Canadian dollars, which is the Company&#146;s functional currency. Non-Canadian
dollar monetary assets and liabilities are translated into Canadian dollars at
the closing exchange rate as at the balance sheet date. Non-monetary assets and
liabilities, revenues and expenses are translated in Canadian dollars at the
prevailing rate of exchange on the dates of the transactions. All financial
information presented in Canadian dollars has been rounded to the nearest
thousand, unless otherwise noted. </P>
<P align=justify>The preparation of these consolidated financial statements in
conformity with IFRS requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expenses. Actual results may differ
from these estimates. Estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognized in the period in
which the estimates are revised and in any future periods affected. </P>
<P align=justify>Significant areas where judgment is applied include reserve and
resource estimation; asset valuations and the measurement of impairment charges
or reversals; finished and in-process inventory quantities; plant and equipment
lives; tax provisions; provisions for environmental rehabilitation; valuation of
derivative instruments; assessment of joint control in business combinations and
share-based compensation. Key estimates and assumptions made by management with
respect to these areas have been disclosed in the notes to these consolidated
financial statements as appropriate.</P>
<P align=justify>The accuracy of reserve and resource estimates is a function of
the quantity and quality of available data and the assumptions made and judgment
used in the engineering and geological interpretation, and may be subject to
revision based on various factors. Changes in reserve and resource estimates may
impact the carrying value of property, plant and equipment; the calculation of
depreciation expense; the capitalization of stripping costs incurred during
production; and the timing of cash flows related to the provision for
environmental rehabilitation. </P>
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width="100%" noShade>
<A name=page_11></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify>Changes in forecast prices of commodities, exchange rates,
production costs and recovery rates may change the economic status of reserves
and resources. Forecast prices of commodities, exchange rates, production costs
and recovery rates, and discount rates assumptions, either individually or
collectively, may impact the carrying value of derivative financial instruments,
inventory, property, plant and equipment, and intangibles, as well as the
measurement of impairment charges or reversals. </P>
<P align=justify><I>(c)&nbsp; Basis of consolidation </I></P>
<P align=justify><I>Subsidiaries </I></P>
<P align=justify>Subsidiaries are entities controlled by the Company, either
directly or indirectly. The financial statements of subsidiaries are included in
these consolidated financial statements from the date that control commences
until the date that control ceases. All intercompany balances, transactions,
income and expenses are eliminated in preparing the consolidated financial
statements. </P>
<P align=justify><I>Joint ventures </I></P>
<P align=justify>A joint venture is a contractual arrangement whereby the
Company and other parties undertake an economic activity that is subject to
joint control (i.e., when the strategic financial and operating policy decisions
relating to the activities of the joint venture require the unanimous consent of
the parties sharing control). </P>
<P align=justify>Joint venture arrangements that involve the joint control, and
often the joint ownership, by the venturers of one or more assets contributed
to, or acquired for the purpose of, the joint venture and dedicated to the
purposes of the joint venture are referred to as jointly controlled assets
(JCA). The assets are used to obtain benefits for the venturers. Each venturer
may take a share of the output from the assets and each bears an agreed share of
the expenses incurred. These joint ventures do not involve the establishment of
a corporation, partnership or other entity, or a financial structure that is
separate from the venturers themselves. Each venturer has control over its share
of future economic benefits through its share of the JCA. </P>
<P align=justify>The Company reports its interests in a JCA using the
proportionate consolidation method. The Company combines its proportionate share
of the joint venture&#146;s individual income and expenses, assets and liabilities
and cash flows on a line-by-line basis with similar items in the consolidated
financial statements. Unrealized income and expenses resulting from transactions
between the Company and the joint venture are eliminated to the extent of the
interest in the joint venture. </P>
<P align=justify><I>(d)&nbsp; Revenue recognition </I></P>
<P align=justify>Revenue is recognized when the significant risks and rewards of
ownership have been transferred and the amount of revenue is reasonably
determinable. These conditions are generally satisfied when title passes to the
customer. Cash received in advance of meeting these conditions is recorded as
deferred revenue.</P>
<P align=justify>Under the terms of the Company&#146;s concentrate and cathode sales
contracts, the final sales amount is based on final assay results and quoted
market prices in a period subsequent to the date of sale. Revenues for these
sales are recorded at the time of shipment, which is also when the risks and
rewards of ownership transfer to the customer, based on an estimate of metal
contained using initial assay results and forward market prices on the expected
date that final sales prices will be fixed. The period between provisional
pricing and final settlement can be between one and four months. This
provisional pricing mechanism represents an embedded derivative. The embedded
derivative is recorded at fair value each reporting period by reference to
forward market prices until the date of final pricing, with the changes in fair
value recorded as an adjustment to revenue. </P>
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width="100%" noShade>
<A name=page_12></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify><I>(e) &nbsp;Cash and equivalents </I></P>
<P align=justify>Cash and equivalents consist of cash and highly-liquid
investments having terms of three months or less from the date of acquisition
and that are readily convertible to known amounts of cash. Cash and equivalents
exclude cash subject to restrictions. </P>
<P align=justify><I>(f)&nbsp; Financial instruments </I></P>
<P align=justify>Financial assets and liabilities are recognized on the balance
sheet when the Company becomes party to the contractual provisions of the
instrument. The classification of financial instruments dictates how these
assets and liabilities are measured subsequently in the Company&#146;s financial
statements.</P>
<P align=justify><I>Financial instruments at fair value through profit or loss
(FVTPL) </I></P>
<P align=justify>Financial instruments are classified as FVTPL when they are
held for trading. A financial instrument is held for trading if it was acquired
for the purpose of selling in the near term. Derivative financial instruments
that are not designated and effective as hedging instruments are classified as
FVTPL. Financial instruments classified as FVTPL are stated at fair value with
any changes in fair value recognized in earnings for the period. Financial
assets in this category include dual currency deposits and derivatives.</P>
<P align=justify>The Company may enter into derivative financial instruments to
manage exposure to commodity price fluctuations (primarily copper) and to
improve the returns on its cash assets. These instruments are non-hedge
derivative instruments. </P>
<P align=justify><I>Loans and receivables </I></P>
<P align=justify>Loans and receivables are financial assets with fixed or
determinable payments that are not quoted in an active market. Subsequent to
initial recognition, these financial assets are recorded at amortized cost using
the effective interest method, except for short-term receivables when the
recognition of interest would be immaterial. Accounts receivable are assessed
for evidence of impairment at each reporting date, with any impairment
recognized in earnings for the period. Financial assets in this category include
cash, accounts receivable and the promissory note. </P>
<P align=justify><I>Available-for-sale financial assets </I></P>
<P align=justify>Marketable securities, except for those marketable securities
that are derivative instruments, capped floating rate notes and reclamation
deposits are designated as available-for-sale and recorded at fair value.
Unrealized gains and losses are recognized in other comprehensive income until
the securities are disposed of or when there is evidence of impairment in value.
If impairment in value has been determined, it is recognized in earnings for the
period.</P>
<P align=justify><I>Financial liabilities </I></P>
<P align=justify>Financial liabilities are initially recorded at fair value, net
of transaction costs, and are subsequently measured at amortized cost using the
effective interest method. The Company has accounted for accounts payable and
accrued liabilities, debt and the royalty obligation under this method. </P>
<P align=justify><I>Fair value measurement </I></P>
<P align=justify>Fair value is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value hierarchy establishes three
levels to classify the inputs to valuation techniques used to measure fair
value, by reference to the reliability of the inputs used to estimate the fair
values. </P>
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width="100%" noShade>
<A name=page_13></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Level 1 &#150; quoted prices (unadjusted) in
active markets for identical assets or liabilities; </P>
<P style="MARGIN-LEFT: 5%" align=justify>Level 2 &#150; inputs other than quoted
prices included within Level 1 that are observable for the asset or liability,
either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
</P>
<P style="MARGIN-LEFT: 5%" align=justify>Level 3 &#150; inputs for the asset or
liability that are not based on observable market data (unobservable inputs).
</P>
<P align=justify><I>(g) &nbsp;Exploration and evaluation</I> </P>
<P align=justify>Exploration and evaluation expenditures relate to the initial
search for a mineral deposit and the subsequent evaluation to determine the
economic potential of the mineral deposit. The exploration and evaluation stage
commences when the Company obtains the legal right or license to begin
exploration. This stage ends when management determines that there is sufficient
evidence to support probability of future mining operations of economically
recoverable reserves, and requires significant judgment on the part of
management. </P>
<P align=justify>Exploration and evaluation expenditures are recognized in
earnings in the period in which they are incurred. Once it is expected that
expenditures can be recovered by future exploitation or sale, they are
considered development costs and capitalized as part of mineral properties
within property, plant and equipment.</P>
<P align=justify>Exploration activities primarily consist of expenditures
relating to drilling programs and include: researching and analyzing existing
exploration data; conducting geological mapping studies; and taking core samples
for analysis. Evaluation activities include: examination and testing of
extraction methods and metallurgical/treatment processes; studies related to
assessment of transportation and infrastructure requirements; market and finance
studies; and detailed economic evaluations to determine whether development of
the reserves is commercially justifiable, including the preparation of scoping,
preliminary feasibility and final feasibility studies. </P>
<P align=justify><I>(h)&nbsp; Inventory </I></P>
<P align=justify>Inventory is valued at the lower of cost and net realizable
value. Cost is determined on a weighted average basis and includes direct labour
and materials; non-capitalized stripping costs; depreciation; freight; and
overhead costs. Net realizable value is determined with reference to relevant
market prices, less applicable variable selling costs and estimated remaining
costs of completion to bring the inventory into its saleable form. </P>
<P align=justify>Work in process represents stockpiled ore and metals in the
processing circuits that have not yet completed the production process, and are
not yet in a saleable form. Finished goods inventory represents metals in
saleable form that have not yet been sold. Materials and supplies inventories
represent consumables used in the production process, as well as spare parts and
other maintenance supplies that are not classified as capital items. </P>
<P align=justify>The quantity of recoverable metal in stockpiled ore and in the
processing circuits is an estimate which is based on the tons of ore added and
removed, expected grade and recovery. The quantity of recoverable metal in
concentrate is an estimate using initial assay results. </P>
<P align=justify><I>(i)&nbsp; Property, plant and equipment </I></P>
<P align=justify><I>Land, buildings, plant and equipment </I></P>
<P align=justify>Land, buildings, plant and equipment are recorded at cost,
including all expenditures incurred to prepare an asset for its intended
use.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_14></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify>Repairs and maintenance costs are charged to expense as
incurred, except when these repairs significantly extend the life of an asset or
result in an operating improvement. In these instances, the portion of these
repairs relating to the betterment is capitalized as part of plant and
equipment. </P>
<P align=justify>Depreciation is based on the cost of the assets less residual
value. Where an item of plant and equipment is comprised of major components
with different useful lives, the components are accounted for as separate items
and depreciated separately. Depreciation commences when an asset is available
for use. Estimates of remaining useful lives and residual values are reviewed
annually. Changes in estimates are accounted for prospectively. </P>
<P align=justify>The depreciation rates of the major asset categories are as
follows: </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="70%">

  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Land </TD>
    <TD bgColor=#e6efff width="50%" align=right>Not depreciated </TD></TR>
  <TR vAlign=top>
    <TD align=left>Buildings </TD>
    <TD width="50%" align=right nowrap>Straight-line basis over 10-25 years </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Plant and equipment </TD>
    <TD bgColor=#e6efff width="50%" align=right>Units-of-production basis
  </TD></TR>
  <TR vAlign=top>
    <TD align=left>Mining equipment </TD>
    <TD width="50%" align=right>Straight-line basis over 5-20 years </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff>Light vehicles and other mobile equipment    </TD>
    <TD bgColor=#e6efff width="50%" align=right>Straight-line basis over 2-5
      years </TD></TR>
  <TR vAlign=top>
    <TD align=left>Furniture, computer and office equipment </TD>
    <TD width="50%" align=right>Straight-line basis over 2-3 years
  </TD></TR></TABLE></DIV>
<P align=justify><I>Mineral properties </I></P>
<P align=justify>Mineral properties consist of the cost of acquiring and
developing mineral properties. Once in production, mineral properties are
amortized on a units-of-production basis. </P>
<P align=justify>Acquisition costs arise either as an individual asset purchase
or as part of a business combination, and may represent a combination of either
proven and probable reserves, resources, or future exploration potential. The
estimated fair values attributable to proven and probable reserves and resources
are recorded as mineral properties within property, plant and equipment.
Exploration potential is recorded as an intangible asset. </P>
<P align=justify>Mineral property development costs include: stripping costs
incurred in order to provide initial access to the ore body; stripping costs
incurred during production that generate a future economic benefit by increasing
the productive capacity or extending the productive life of the mine;
capitalized exploration and evaluation costs; and capitalized interest.</P>
<P align=justify><I>Construction in progress </I></P>
<P align=justify>Construction in progress includes the purchase price and any
costs directly attributable to bringing the asset to the location and condition
necessary for its intended use. Construction in progress includes advances on
long-lead items. Construction in progress is not depreciated. Once the asset is
complete and available for use, the costs of construction are transferred to the
appropriate category of property, plant and equipment, and depreciation
commences. </P>
<P align=justify><I>Capitalized interest </I></P>
<P align=justify>Interest is capitalized for qualifying assets. Qualifying
assets are assets that require a substantial period of time to prepare for their
intended use. Capitalization ceases when the asset is substantially complete or
if construction is interrupted for an extended period. Where the funds used to
finance a project form part of general borrowings, the amount capitalized is
calculated using a weighted average of rates applicable to relevant general
borrowings of the Company during the period.</P>
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width="100%" noShade>
<A name=page_15></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify><I>Leased assets </I></P>
<P align=justify>Leased assets in which the Company receives substantially all
the risks and rewards of ownership of the asset are capitalized as finance
leases at the lower of the fair value of the asset or the estimated present
value of the minimum lease payments. The corresponding lease obligation is
recorded within debt on the balance sheet. Assets under operating leases are not
capitalized and rental payments are included in earnings. </P>
<P align=justify><I>Impairment </I></P>
<P align=justify>The carrying amounts of the Company&#146;s non-financial assets are
reviewed for impairment whenever circumstances suggest that the carrying value
may not be recoverable. If such indication exists, the recoverable amount of the
asset is estimated in order to determine the extent of the impairment, if any.
These assessments require the use of estimates and assumptions such as long-term
commodity prices, discount rates, future capital requirements, exploration
potential and operating performance.</P>
<P align=justify>The recoverable amount of an asset or cash generating unit
(CGU) is the higher of fair value less costs to sell and value in use. Fair
value is determined as the amount that would be obtained from the sale of the
asset in an arm&#146;s-length transaction between knowledgeable and willing parties.
In assessing value in use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset. For
the purpose of impairment testing, assets that cannot be tested individually are
grouped together into the smallest group of assets that generates cash inflows
that are largely independent of the cash flows of other assets or CGU&#146;s. If the
recoverable amount of an asset or its related CGU is estimated to be less than
its carrying amount, the carrying amount of the asset or CGU is reduced to its
recoverable amount and the impairment loss is recognized in earnings for the
period.</P>
<P align=justify>Where an impairment loss subsequently reverses, the carrying
amount of the asset or CGU is increased to the revised estimate of its
recoverable amount, but not to an amount that exceeds the carrying amount that
would have been determined had no impairment loss been recognized for the asset
or CGU in prior years. A reversal of an impairment loss is recognized
immediately in earnings. </P>
<P align=justify><I>(j) &nbsp;Intangible assets </I></P>
<P align=justify>Mineral property acquisition costs arise either as an
individual asset purchase or as part of a business combination, and may
represent a combination of either proven and probable reserves, resources, or
future exploration potential. When management has not made a determination that
there is probable future economic benefit and the property is not imminently
expected to move into development, the entire amount is considered acquired
exploration potential and is classified as an intangible asset. When such
property moves into development, the acquired exploration intangible asset is
transferred to non-depreciable mineral properties within property, plant and
equipment. </P>
<P align=justify><I>(k)&nbsp; Income taxes </I></P>
<P align=justify>Income tax on the earnings for the periods presented comprises
current and deferred tax. Income tax is recognized in earnings except to the
extent that it relates to items recognized directly in equity or in other
comprehensive income. Income tax is calculated using tax rates enacted or
substantively enacted at the reporting date applicable to the period of expected
realization or settlement. </P>
<P align=justify>Current tax expense is the expected tax payable on the taxable
income for the year, adjusted for amendments to tax payable with regards to
previous years. </P>
<P align=justify>Deferred tax is determined using the balance sheet liability
method, providing for temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for
taxation purposes. The following temporary differences are not provided for: the
initial recognition of assets or liabilities acquired (not in a business combination) that affect neither
accounting nor taxable profit on acquisition; and differences relating to
investments in subsidiaries, associates, and joint ventures to the extent that
they are not probable to reverse in the foreseeable future. The amount of
deferred tax provided is based on the expected manner of realization or
settlement of the carrying amount of assets and liabilities. A deferred tax
asset is recognized only to the extent that it is probable that future taxable
profits will be available against which the asset can be utilized. Deferred tax
assets are reviewed at each reporting date and are reduced to the extent it is
no longer probable that the related tax benefit will be realized.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_16></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify><I>(l) &nbsp;Share-based compensation </I></P>
<P align=justify>The fair-value method of accounting is used for the Company&#146;s
share option plan. Fair value is measured at grant date using the Black-Scholes
option pricing model and is recognized in earnings on a graded amortization
basis over the option vesting period, with a corresponding increase in equity.
The amount recognized as an expense is adjusted to reflect the actual number of
share options that are expected to vest.<B> </B></P>
<P align=justify><I>(m)&nbsp; Provisions </I></P>
<P align=justify><I>Environmental rehabilitation </I></P>
<P align=justify>The Company records the present value of estimated costs of
legal and constructive obligations required to retire an asset in the period in
which the obligation occurs. Environmental rehabilitation activities include
facility decommissioning and dismantling; removal and treatment of waste
materials; site and land rehabilitation, including compliance with and
monitoring of environmental regulations; and related costs required to perform
this work and/or operate equipment designed to reduce or eliminate environmental
effects. The provision for environmental rehabilitation (PER) is adjusted each
period for new disturbances, and changes in regulatory requirements, the
estimated amount of future cash flows required to discharge the liability, the
timing of such cash flows and the pre-tax discount rate specific to the
liability. The unwinding of the discount is recognized in earnings as a finance
cost.</P>
<P align=justify>When a PER is initially recognized, the corresponding cost is
capitalized by increasing the carrying amount of the related asset, and is
amortized to earnings on the same basis as the related asset. Costs are only
capitalized to the extent that the amount meets the definition of an asset and
represents future economic benefits to the operation.</P>
<P align=justify>Significant estimates and assumptions are made in determining
the provision for environmental rehabilitation as there are numerous factors
that will affect the ultimate liability payable. These factors include
estimation of the extent and cost of rehabilitation activities; timing of future
cash flows that are impacted by changes in discount rates; inflation rate; and
regulatory requirements. </P>
<P align=justify><I>Other provisions </I></P>
<P align=justify>Other provisions are recognized when the Company has a present
obligation (legal or constructive) that has arisen as a result of a past event
and it is probable that a future outflow of resources will be required to settle
the obligation, provided that a reliable estimate can be made of the amount of
the obligation. Where the effect is material, the provision is discounted using
a pre-tax rate that reflects current market assessments of the time value of
money and the risk specific to the obligation. The accretion expense is included
in finance expense. </P>
<P align=justify><I>(n)&nbsp; Finance income and expenses </I></P>
<P align=justify>Finance income comprises interest income on funds invested,
gains on the disposal of marketable securities, and changes in the fair value of
derivatives included in cash and equivalents and marketable securities. Interest
income is recognized as it accrues in earnings, using the effective interest
method.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_17></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify>Finance expenses comprise interest expense on borrowings,
unwinding of the discount on provisions, losses on the disposal of marketable
securities, changes in the fair value of derivatives included in cash and
equivalents and marketable securities, and impairment losses recognized on
financial assets. Borrowing costs that are not directly attributable to the
acquisition, construction or production of a qualifying asset are recognized in
earnings using the effective interest method.</P>
<P align=justify>Foreign currency gains and losses are reported on a net basis.
</P>
<P align=justify><I>(o) &nbsp;Earnings (loss) per share </I></P>
<P align=justify>The Company presents basic and diluted earnings (loss) per
share data for its common shares, calculated by dividing the earnings (loss)
attributable to common shareholders of the Company by the weighted average
number of common shares outstanding during the period. Diluted earnings per
share is determined by adjusting the earnings attributable to common
shareholders and the weighted average number of common shares outstanding for
the effects of all dilutive potential common shares, which comprise preferred
shares and share options granted. </P>
<P align=justify><I>(p)&nbsp; New accounting standards </I></P>
<P align=justify><I>Consolidated Financial Statements</I></P>
<P align=justify>In May 2011, the IASB issued IFRS 10, <I>Consolidated Financial
Statements</I> and IFRS 12, <I>Disclosure of Interests in Other Entities</I>.
IFRS 10 establishes principles for the presentation and preparation of
consolidated financial statements when an entity controls one or more other
entities. This standard defines the principle of control and establishes control
as the basis for determining which entities are consolidated in an entity&#146;s
consolidated financial statements. IFRS 10 sets out three elements of control:
a) power over the investee; b) exposure, or rights, to variable returns from
involvement with the investee; and c) the ability to use power over the investee
to affect the amount of the investors return. IFRS 10 sets out the requirements
on how to apply the control principle. IFRS 12 outlines the disclosure
requirements for interests in subsidiaries and other entities to enable users to
evaluate the risks associated with interests in other entities and the effects
of those interests on an entity&#146;s financial position, financial performance and
cash flows. IFRS 10 and IFRS 12 supersede IAS 27, <I>Consolidated and Separate
Financial Statements</I> and SIC-12, <I>Consolidation &#150; Special Purpose
Entities</I>.</P>
<P align=justify>IFRS 10 and IFRS 12 are effective for annual periods beginning
on or after January 1, 2013, with earlier application permitted. The Company is
currently assessing the impact of these standards on its financial
statements.</P>
<P align=justify><I>Joint Arrangements</I></P>
<P align=justify>In May 2011, the IASB issued IFRS 11, <I>Joint
Arrangements</I>, which provides guidance on accounting for joint arrangements.
If an arrangement has joint control, IFRS 11 classifies joint arrangements as
either joint operations or joint ventures, depending on the rights and
obligations of the parties involved.</P>
<P align=justify>A joint operation is an arrangement where the jointly
controlling parties have rights to the assets and obligations in respect of the
liabilities relating to the arrangement. An entity accounts for a joint
operation by recognizing its portion of the assets, liabilities, revenues and
expenses. A joint venture is an arrangement where the jointly controlling
parties have rights to the net assets of the arrangement. A joint venture is
accounted for using the equity method. Proportionate consolidation is no longer
permitted. </P>
<P align=justify>This standard is effective for annual periods beginning on or
after January 1, 2013, with early adoption permitted. The Company is currently
assessing the impact that IFRS 11 will have on its consolidated financial
statements.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_18></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify><I>Fair Value Measurement</I></P>
<P align=justify>In May 2011, the IASB issued IFRS 13, <I>Fair Value
Measurement</I>. This standard defines fair value, sets out a single IFRS
framework for measuring fair value and outlines disclosure requirements about
fair value measurements. IFRS 13 defines fair value as the price that would be
received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. Fair value is a
market-based measurement, not an entity-specific measurement, so assumptions
that market participants would use should be applied in measuring fair
value.</P>
<P align=justify>IFRS 13 is effective for annual periods on or after January 1,
2013, with earlier application permitted. This standard is to be applied
prospectively as of the beginning of the annual period in which it is initially
applied and the disclosure requirements do not need to be applied in comparative
periods before initial application. The Company is currently assessing the
impact of this standard on its financial statements.</P>
<P align=justify><I>Other Comprehensive Income</I></P>
<P align=justify>In June 2011, the IASB and FASB issued amendments to standards
to align the presentation requirements for other comprehensive income (OCI). The
IASB issued amendments to IAS 1, <I>Presentation of Financial Statements</I> to
require companies preparing financial statements under IFRS to group items
within OCI that may be reclassified to the profit or loss. The amendments also
reaffirm existing requirements that items in OCI and profit or loss should be
presented as either a single statement or two consecutive statements.</P>
<P align=justify>The amendments to IAS 1 set out in <I>Presentation of Items of
Other Comprehensive Income </I>are effective for fiscal years beginning on or
after July 1, 2012. The Company is currently assessing the impact of these
amendments on its financial statements. </P>
<P align=justify><I>Production Stripping Costs </I></P>
<P align=justify>In October 2011, the IASB issued International Financial
Reporting Interpretation Committee (IFRIC) 20, <I>Stripping Costs in the
Production Phase of a Surface Mine</I>. This interpretation requires the
capitalization and depreciation of stripping costs from the production phase of
a mine if an entity can demonstrate that it is probable that future economic
benefits will be realized, that costs can be reliably measured, and that the
component of the ore body for which access has been improved can be identified.
This interpretation is effective for annual periods beginning on or after
January 1, 2013. The Company is currently assessing the impact of this
interpretation on its financial statements. </P>
<P align=justify><B>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; INTEREST
IN JOINT VENTURE </B></P>
<P align=justify>On March 31, 2010, the Company entered into an agreement with
Cariboo Copper Corp. (Cariboo) whereby the Company contributed certain assets
and liabilities of the Gibraltar mine into an unincorporated joint venture and
Cariboo paid the Company $186,811 to acquire a 25% interest in the joint
venture. The Company recognized a gain on contribution to the joint venture of
$98,157 in 2010.</P>
<P align=justify>The assets and liabilities contributed by the Company to the
joint venture were mineral property interests, plant and equipment, inventory,
prepaid expenses, reclamation deposits, capital lease obligations, and site
closure and reclamation obligations. Certain key strategic, operating, investing
and financing policies of the joint venture require unanimous approval such that
neither venturer is in a position to exercise unilateral control over the joint
venture. The Company continues to be the operator of the Gibraltar mine. </P>
<P align=justify>During 2011, the construction of the SAG direct feed system was
completed. Under the terms of agreement with Cariboo, the Company assumed 100%
of the capital costs in excess of the capital budget for the SAG direct feed
system at the joint venture formation. The Company recognized a net loss on
contribution to the joint venture of $3,987 during 2011 as a result of funding Cariboo&#146;s portion of
the SAG direct feed system project costs above the 2010 budgeted amount. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_19></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify>Summary financial information for the joint venture on 100%
basis: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
  <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Current assets </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;99,957 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;130,284 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Non-current assets </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;991,166 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;862,962 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Current liabilities </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;59,095 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;46,440 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">Non-current
      liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;156,153 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;108,197 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>From Inception</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>on March 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>Year ended</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>2010 to</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Revenues </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;335,822 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;259,160 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#ffffff align=left>Expenses </TD>
    <TD bgColor=#ffffff  width="1%" align=left>$</TD>
    <TD bgColor=#ffffff width="12%" align=right>&nbsp;244,735 </TD>
    <TD bgColor=#ffffff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff  width="1%" align=left>$</TD>
    <TD bgColor=#ffffff width="12%" align=right>&nbsp;157,167 </TD>
    <TD bgColor=#ffffff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Net income </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;91,087 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;101,993 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P
align=justify><B>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;REVENUE
</B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=right nowrap><B>Years ended December 31,</B> </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Copper concentrate </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;227,140 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD width="12%" align=right nowrap bgColor=#e6efff>&nbsp;258,932 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Copper cathode </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>6,936
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>3,987
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Total copper sales </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD width="12%" align=right nowrap bgColor=#e6efff>&nbsp;234,076 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD width="12%" align=right nowrap bgColor=#e6efff>&nbsp;262,919 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Molybdenum concentrate </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>14,317 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>12,656 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD
      align=left nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">Silver contained in copper concentrate </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>3,473 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>2,885 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;251,866 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;278,460 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify>As a result of the formation of a joint venture on March 31,
2010 (note 3), the 2010 comparatives include 100% of the Gibraltar mine&#146;s
results through to March 31, 2010 and 75% of the Gibraltar mine&#146;s results
thereafter. </P>
<P align=justify><B>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; COST OF
SALES </B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=right nowrap><B>Years ended December 31,</B> </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Direct mining costs </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD width="12%" align=right nowrap bgColor=#e6efff>&nbsp;125,536 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD width="12%" align=right nowrap bgColor=#e6efff>&nbsp;120,810 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Depreciation </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>12,145 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>12,655 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Treatment and refining costs </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>11,632 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>11,563 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Transportation costs </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>13,108 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>16,275 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD
      align=left nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">Changes in inventories of finished goods and work in process    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>3,144 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(3,544</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;165,565 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;157,759 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify>As a result of the formation of a joint venture on March 31,
2010 (note 3), the 2010 comparatives include 100% of the Gibraltar mine&#146;s
results through to March 31, 2010 and 75% of the Gibraltar mine&#146;s results
thereafter. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_20></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify>Cost of sales consists of direct mining costs (which include
personnel costs, mine site general &amp; administrative costs, non-capitalized
stripping costs, repair &amp; maintenance costs, operating supplies and external
services), depreciation, and offsite costs comprised of treatment &amp; refining
costs and transportation costs. </P>
<P align=justify><B>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
COMPENSATION EXPENSE </B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=right nowrap><B>Years ended December 31,</B> </TD>
    <TD width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff>Wages, salaries and benefits </TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD width="12%" align=right nowrap bgColor=#e6efff>&nbsp;42,314 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD width="12%" align=right nowrap bgColor=#e6efff>&nbsp;39,254 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Post-employment benefits </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,135 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>666 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Share-based compensation </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>8,215 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>9,260 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" align=left>$</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;51,664 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" align=left>$</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;49,180 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify>As a result of the formation of a joint venture on March 31,
2010 (note 3), the 2010 comparatives include 100% of the Gibraltar mine&#146;s
results through to March 31, 2010 and 75% of the Gibraltar mine&#146;s results
thereafter. </P>
<P align=justify>Compensation expense is presented as a component of cost of
sales, general and administrative expense, and exploration and evaluation
expense.</P>
<P
align=justify><B>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OTHER
OPERATING INCOME (EXPENSES)</B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=right nowrap><B>Years ended December 31,</B> </TD>
    <TD width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Realized loss on copper derivative instruments
    </TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;(9,910</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD width="12%" align=right nowrap bgColor=#e6efff>&nbsp;(12,200</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap>Unrealized gain on copper derivative instruments </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap>22,944 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>8,877 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Consulting expenses </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(6,322</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Impairment of plant and equipment </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(2,377</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Management fee income </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>840 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>648 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;5,175 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;(2,675</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" align=left>) </TD>
  </TR>
</TABLE>
<P align=justify>Consulting expenses are related to the consultants engaged to
  work with the Gibraltar management team to achieve improvements in operational
  performance. </P>
<P align=justify>Certain plant and equipment was deemed redundant upon
completion of the SAG direct feed project during 2011 which resulted in an
impairment charge. The Company has also identified other assets for which there
are no longer plans to utilize under the current life-of-mine plan, and which
were therefore included in the impairment charge. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_21></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify><B>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FINANCE
EXPENSES </B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=right nowrap><B>Years ended December 31,</B> </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Interest expense </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;13,957 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;4,542 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Accretion on PER (note 18) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2,046 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,936 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff>Loss on extinguishment of debt and royalty
      obligations (note 17b &amp; 19d) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,136 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Foreign exchange loss
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>6,489
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2,133
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD width="12%"
    align=right nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;22,492 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD width="12%"
    align=right nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;10,747 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify><B>9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;FINANCE
INCOME </B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=right nowrap><B>Years ended December 31,</B> </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Interest income </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;6,859 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD width="12%" align=right nowrap bgColor=#e6efff>&nbsp;14,933 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap>Change in fair value of financial instruments </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(307</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(25</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Gain on sale of shares </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>5,995 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>4,087 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Income realized on dual currency deposits </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4,275 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>577 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Dividend income </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>448 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;17,270 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;19,572 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify><B>10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; INCOME TAX </B></P>
<P align=justify><I>(a)&nbsp; &nbsp;Income tax expense </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=right nowrap><B>Years ended December 31,</B> </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Current income tax: </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Current period </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;6,166 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;3,539 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp; &nbsp;Adjustments
      recognized for current tax of prior periods </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(164</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>567 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;6,002 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;4,106 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Deferred income tax: </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Origination and reversal of temporary
      differences </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;17,906 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD width="12%" align=right nowrap bgColor=#e6efff>&nbsp;43,392 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap>&nbsp;Adjustments recognized for deferred tax of prior periods    </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2,621 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Reduction in tax rate </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(126</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(3,615</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;17,780 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;42,398 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD width="12%"
    align=right nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;23,782 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD width="12%"
    align=right nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;46,504 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify>During the year ended December 31, 2011, the Company recognized
recoveries of income tax of $907 (2010: $22,523) and interest expense of $208
(2010: $8,098) associated with the reversal of historical tax reserves dating
back to 2006 (2010: 2005). </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_22></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify><I>(b)&nbsp;&nbsp; Income tax recognized directly in OCI
</I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=right nowrap><B>Years ended December 31,</B> </TD>
    <TD width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff>Unrealized gains (losses) on available-for-sale
      financial assets, before tax </TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD width="12%" align=right nowrap bgColor=#e6efff>&nbsp;(2,744</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;5,999 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Tax (expense) benefit
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>343 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(750</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD
      align=left nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;Unrealized gains (losses) on available-for-sale financial
      assets, net of tax </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;(2,401</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;5,249 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Realized gains (losses) on available-for-sale financial assets,
      before tax </TD>
    <TD width="1%" align=left>$</TD>
    <TD width="12%" align=right nowrap>&nbsp;(5,995</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>$</TD>
    <TD width="12%" align=right nowrap>&nbsp;(4,087</TD>
    <TD width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Tax (expense) benefit </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>749 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>511 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Realized gains
      on available-for-sale financial assets, net of tax </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;(5,246</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" align=left>$</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;(3,576</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Total other comprehensive income (loss) for the year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD width="12%"
    align=right nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;(7,647</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;1,673 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify><I>(c)&nbsp; &nbsp;Effective tax rate reconciliation </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=right nowrap><B>Years ended December 31,</B> </TD>
    <TD width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff>Income tax at Canadian statutory rate of 26.5%
      (2010: 28.5%) </TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;13,450 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;55,820 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Permanent differences </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2,335 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap>(20,367</TD>
    <TD width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Mineral tax </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>7,419 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>14,180 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Future tax rate differences </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(126</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(3,615</TD>
    <TD width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Unrecognized tax benefits </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1,366 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Other </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(662</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>486 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Income tax at the effective tax rate of 46.9% (2010: 23.7%) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD width="12%"
    align=right nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;23,782 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD width="12%"
    align=right nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;46,504 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify><I>(d)&nbsp; &nbsp;Deferred tax assets and liabilities </I></P>
<P align=justify>Deferred tax assets and liabilities are attributable to the
following: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>January 1,</B> </TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Property, plant and equipment </TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;(98,568</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;(79,730</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;(46,617</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap>Financial instruments at fair value through profit or loss    </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(7,196</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>651 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>6,210 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Available-for-sale financial assets </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>200 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(893</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(654</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Debt </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(751</TD>
    <TD width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Provisions </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>17,845 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>7,497 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>5,423 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Other </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>11,149 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>12,868 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>10,523 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Tax loss carryforwards </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>479 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>89 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>8,986 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;(76,091</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;(59,518</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;(16,880</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" align=left>)
  </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_23></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify><I>e)&nbsp;&nbsp; Unrecognized deferred tax assets and
liabilities </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>January 1,</B> </TD>
  <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap>Deductible temporary differences: </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Debt </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;1,366 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P align=justify>Deferred tax assets have not been recognized in respect of
these items because it is not probable that future taxable profit will be
available against which the Company can utilize the benefits. There are no
unrecognized tax liabilities. </P>
<P align=justify><B>11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ACCOUNTS RECEIVABLE
</B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>January 1,</B> </TD>
  <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Trade receivables </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;29,891 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;17,443 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;10,802 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap>Other receivables due from related parties (note 26) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>241 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,764 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Harmonized sales tax receivable </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>5,767 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1,956 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1,378 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>BC mineral exploration tax credit </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2,610 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Other receivables </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>1,400 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>755 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>325 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;39,909 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;21,918 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;12,505 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P align=justify><B>12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OTHER FINANCIAL
ASSETS </B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>January 1,</B> </TD>
  <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Current: </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff>&nbsp;Dual currency deposits &gt; 3-month
      term </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;40,602 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap>&nbsp;Copper put option contracts (note 25e) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>25,407 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>433 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,928 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Shares &#150; available for sale </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>11,898 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>17,922 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>11,856 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Promissory note (note 17a) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>8,190 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>7,248 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4,697 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Short-term investments </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>50 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Warrants </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>599 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Restricted cash </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>3,153 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;86,147 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;26,202 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;21,634 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Long-term: </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Capped floating rate notes </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;20,055 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Reclamation deposits </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>24,962 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>23,266 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>29,421 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Promissory
      note (note 17a) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>66,624 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>70,559 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>73,400 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;111,641 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;93,825 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;102,821 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P align=justify>Reclamation deposits are invested in government bonds and
treasury bills bearing interest in the range of 1.4% to 4.7% . </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_24></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify><B>13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; INVENTORIES </B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>January 1,</B> </TD>
  <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Work in process </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;1,154 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;1,514 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;1,896 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Finished goods </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Copper concentrate </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>6,063 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>7,515 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>5,831 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Copper cathode </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>179 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>982 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>178 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff>&nbsp;Molybdenum concentrate </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>244 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>53 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>70 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Materials and
      supplies </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>15,650 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>11,222 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>13,817 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;23,290 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;21,286 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;21,792 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P align=justify>In<I> </I>2011, materials and supplies inventories was written
down by $446 (2010: $536). This writedown is included in cost of sales. The net
realizable value of the materials and supplies inventories after the writedown
was nil (2010: nil; January 1, 2010: nil). </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_25></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify><B>14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PROPERTY, PLANT
&amp; EQUIPMENT </B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>Mineral </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>Plant and </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">properties<SUP>1</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">equipment </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>CIP
      <SUP>4</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>Total
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Cost</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>At January 1, 2010 </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;112,326 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;229,431 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;64,671 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;406,428 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Additions </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>14,641 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>29,124 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>36,086 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>79,851 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Contribution to joint venture <SUP>2</SUP> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(28,127</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(57,409</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(17,896</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(103,432</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Transfers between categories <SUP>4</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>65,271 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(65,271</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>At December 31, 2010 </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;98,840 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;266,417 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;17,590 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;382,847 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Additions </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>44,465 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>27,778 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>45,391 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>117,634 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Capitalized interest <SUP>3</SUP> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>874 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>874 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Impairments </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(3,673</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(3,673</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Transfers
      between categories <SUP>4</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>13,150 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>(13,150</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left>At
      December 31, 2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;143,305 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;303,672 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;50,705 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;497,682 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap><B>Accumulated depreciation and impairments</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>At January 1, 2010 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;13,969 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;26,160 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;40,129 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Depreciation </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>3,832 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>9,583 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>13,415 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Contribution to joint venture <SUP>2</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(3,799</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(7,995</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(11,794</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>At December 31, 2010 </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;14,001 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;27,748 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;41,749 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Depreciation </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>3,782 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>12,882 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>16,664 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Impairments
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(1,296</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(1,296</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left>At
      December 31, 2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;17,783 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;39,334 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;57,117 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Carrying amounts</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left>At
      January 1, 2010 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;98,357 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;203,271 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;64,671 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;366,299 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>At December 31,
      2010 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;84,839 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;238,669 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;17,590 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;341,098 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left>At
      December 31, 2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;125,522 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;264,338 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;50,705 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;440,565 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P align=justify><SUP>1 </SUP>Mineral properties consists of the cost of
acquiring and developing mineral properties. Development costs include
capitalized stripping costs, capitalized exploration and evaluation costs,
capitalized interest, and rehabilitation cost asset.<SUP> <BR></SUP><SUP>2.
</SUP>On March 31, 2010, the Company contributed certain assets and liabilities
of the Gibraltar mine into an unincorporated joint venture in which the Company
retains a 75% interest.<SUP> <BR></SUP><SUP>3</SUP> The capitalization rate for
the period was 5.77% .<SUP> <BR></SUP><SUP>4. </SUP>Construction in process
(CIP) is transferred to the relevant category of property, plant and equipment
once the asset is available for use. </P>
<P align=justify><I>(a)&nbsp; &nbsp;Leased assets</I></P>
<P align=justify>The Company leases mining equipment under a number of capital
lease agreements. Some leases may not be terminated by the Company prior to the
end of its term. Most of the leases provide the Company with the option to
purchase the equipment at a beneficial price. One lease contains a mandatory
purchase provision. Certain rents are based on an annual average usage for the
applicable equipment and, if at the end of the term (unless the equipment has
been purchased by the Company), the actual annual average usage of such
equipment has been greater than the specified usage, the Company must pay an
additional amount for each excess hour of actual usage. The leased assets secure
the lease obligations (note 19). </P>
<P align=justify>At December 31, 2011, the net carrying amount of leased assets
was $29,606 (2010: $25,883; January 1, 2010: $17,889). </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_26></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify><I>(b)&nbsp;&nbsp; Change in estimates</I></P>
<P align=justify>Certain items of property, plant and equipment at the Gibraltar
mine which management previously expected to remain in production for the life
of mine are now expected to be replaced by assets constructed and/or purchased
as part of an expansion project at the mine. As a result the expected useful
lives of these assets decreased. The estimated effect of these changes on
depreciation expense, recognized in cost of sales, in current and future periods
is as follows: </P>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD width="8%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD width="8%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>2012</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD width="8%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>2013</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD width="8%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>2014</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD width="8%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>2015</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD width="8%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Later</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
      <TD
    align=left vAlign=bottom nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid" >Estimated increase (decrease) in depreciation expense </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right>&nbsp;281 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>$</TD>
    <TD
    width="8%" align=right vAlign=bottom nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;2,937 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right>&nbsp;1,108 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right>&nbsp;405 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right>&nbsp;405 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>$</TD>
    <TD
    width="8%" align=right vAlign=bottom nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(5,136</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>) </TD></TR></TABLE></DIV>
<P align=justify><B>15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; INTANGIBLE ASSETS
</B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>January 1,</B> </TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Aley niobium property </TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;5,436 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;5,436 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;5,436 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap>Prosperity gold-copper property <SUP>1</SUP> </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Harmony gold property <SUP>1</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>1 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>1 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>1 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;5,438 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;5,438 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;5,438 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P align=justify><SUP>1. </SUP>Carrying amounts for Prosperity and Harmony
represent the original mineral property acquisition costs less historical
impairments. </P>
<P align=justify><B>16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ACCOUNTS PAYABLE AND
ACCRUED LIABILITIES </B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>January 1,</B> </TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Trade payables </TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;31,055 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;20,628 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;12,663 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap>Other payables due to related parties (note 26) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>44 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>154 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>13 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Interest payable </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>3,351 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>47 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>124 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Other payables
      <SUP>1</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>1,839
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2,967
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>5,193
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;36,289 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;23,796 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;17,993 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P align=justify><SUP>1. </SUP>Includes amounts owing as a result of settlement
of copper call option contracts. The balance as at December 31, 2011 was $ nil
(2010: $658; January 1, 2010: $3,160). </P>
<P align=justify><B>17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OTHER FINANCIAL
LIABILITIES </B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>January 1,</B> </TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Current: </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Royalty obligations </TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;8,190 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;7,248 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;11,208 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Copper call
      option contracts </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2,607
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>17,703 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;10,797 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;7,248 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;28,911 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Long-term: </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Royalty obligations </TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;44,594 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;51,645 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;57,621 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;
      &nbsp;Income tax obligations (note 10a) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>1,386
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2,499
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>32,300 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;45,980 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;54,144 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;89,921 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_27></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify><I>(a)&nbsp;&nbsp; Red Mile royalty obligations and promissory
note </I></P>
<P align=justify>In September 2004, the Company sold a royalty on the Gibraltar
mine&#146;s copper production to Red Mile Resources No. 2 Limited Partnership (Red
Mile), an unrelated investment partnership, for $67,357. The proceeds were
invested with a trust company in a promissory note (note 12) and the Company
pledged the promissory note, along with interest earned thereon, as security for
its royalty obligations. </P>
<P align=justify>Pursuant to the agreements, the Company received fees and
interest for services performed in relation to the Red Mile transaction,
including $1,750 for indemnifying an affiliate of Red Mile from any claims
relating to a breach by the Company under the royalty agreement. The
indemnification funds received were recorded as deferred revenue and will be
recognized as income over the expected remaining life of the royalty agreement.
</P>
<P align=justify>Annual royalties are payable to Red Mile at rates ranging from
$0.01 to $0.14 per pound of copper produced during the period from the
commencement of commercial production (as defined in the agreement) to the
latter of (i) December 2014 and (ii) five years after the end of commercial
production from the mine. Funds held in the promissory note are released to
satisfy the annual royalty payment. </P>
<P align=justify>The Company has a pre-emptive option to effectively purchase
(call) the royalty interest by acquiring the Red Mile partnership units in
consideration of a payment which is (i) approximately equal to the funds
received by the Company less royalty payments to date, or (ii) fair value,
whichever is lower. Under certain circumstances, the investors in Red Mile also
have a right to sell (put) their Red Mile partnership units to the Company at
fair value; however, such right is subject to the Company&#146;s pre-emptive right to
exercise the &#147;call&#148; in advance of any &#147;put&#148; being exercised and completed. </P>
<P align=justify>The Company has granted to Red Mile a net profits interest
(NPI) which survives any &#147;put&#148; or &#147;call&#148; of the Red Mile units. The NPI is
applicable for the years 2011 to 2014 and ranges from 2% to 4%, depending on the
average copper price each year adjusted for variations in foreign currency
exchange rates. No NPI is payable until the Company reaches a pre-determined
aggregate level of revenues less defined operating costs and expenditures and,
as at December 31, 2011, this threshold has not yet been met. </P>
<P align=justify><I>(b)&nbsp; &nbsp;Gibraltar Royalty LP royalty obligations
</I></P>
<P align=justify>In 2009, the Company sold a production royalty to Gibraltar
Royalty Limited Partnership (GRLP), an unrelated investment partnership. Annual
royalties were payable to GRLP at rates ranging from $0.003 to $0.004 per pound
of copper produced from the Gibraltar mine during the period from September 1,
2009 through December 31, 2030. The Company had a pre-emptive option to
repurchase (call) the royalty obligation by acquiring the GRLP partnership
units. On March 24, 2010, the Company exercised its &#147;call&#148; and settled the
royalty obligation of $6,511. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_28></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify><B>18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PROVISIONS </B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap>Environmental </TD>
  <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>rehabilitation </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>At January 1, 2010 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;50,700 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Additions during the year </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>304 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff>&nbsp;Contribution to joint venture
      <SUP>1</SUP> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(12,866</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Change in estimates </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>13,146 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Used during the year </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(91</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Unwind of
      discount </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>1,936
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>At January 1, 2011 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>53,129 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Additions during the year </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>171 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Change in estimates </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>43,345 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Used during the year </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(2,670</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Unwind of discount </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>2,046 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>At December 31,
      2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;96,022 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Long-term </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>96,022 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Current </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;96,022 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P align=justify><SUP>1. </SUP>On March 31, 2010, the Company contributed
certain assets and liabilities of the Gibraltar mine into an unincorporated
joint venture in which the Company retains a 75% interest.<SUP> </SUP></P>
<P align=justify>The PER represents the present value of estimated costs of
legal and constructive obligations required to retire an asset. The PER has been
recognized based on the Company&#146;s internal estimates. Assumptions, based on the
current economic environment, have been made which management believes are a
reasonable basis upon which to estimate the future liability. </P>
<P align=justify>The following significant estimates and assumptions were made
for the purpose of estimating the PER: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>January 1,</B> </TD>
  <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Pre-tax discount rate </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>3.1% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>3.7% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>4.1% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Inflation rate </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2.0% </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2.0% </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2.0% </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Market risk adjustment </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.5% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.5% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.5% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Number of years to mine closure </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>26 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>21 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>22 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD
      align=left nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">Number of years over which rehabilitation occurs </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>100 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>100 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>100 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P align=justify>Estimates are reviewed regularly to take into account any
material changes to the assumptions. During 2011, the Company completed an
updated reserve estimate for the Gibraltar mine which extended the life of the
mine and deferred the expected timing of mine closure by six years. Furthermore,
there have been changes in discount rates and inflation rates during the current
period, which has had a significant impact on the PER. </P>
<P align=justify>In general, the expected cash flows become more reliable
towards the end of the mine&#146;s life, whereas the estimate of a PER at the
beginning of the mine&#146;s life is more subjective. Actual rehabilitation costs
will ultimately depend upon future market prices for the necessary
decommissioning works required which will reflect market conditions at the
relevant time. Furthermore, the timing of rehabilitation is likely to depend on
when the mine ceases to produce at economically viable rates. This, in turn,
will depend upon future metal prices which are inherently uncertain. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_29></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify>As required by the regulatory authorities, before commencing
work on a project or mine, the Company posts a security which is held in trust
by the regulatory authorities. These reclamation deposits (note 12) are returned
only once the site is reclaimed to a satisfactory level and there are no ongoing
monitoring or maintenance requirements. For the Gibraltar mine, the Company has
also issued an irrevocable standby letter of credit for $10 million as part of
its security with the regulatory authorities. </P>
<P align=justify><B>19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; DEBT </B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>January 1,</B> </TD>
  <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Current: </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Capital leases </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;6,925 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;5,354 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;3,750 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff>&nbsp;Secured equipment loans </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>6,828 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>4,961 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,032 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Credit
      facility </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>21,896 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;13,753 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;10,315 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;27,678 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Long-term: </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Senior notes </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;197,409 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Capital leases </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>14,862 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>14,959 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>10,238 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff>&nbsp;Secured equipment loans </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>6,231 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>13,059 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>6,678 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Credit
      facility </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>29,609 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;218,502 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;28,018 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;46,525 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P align=justify><I>(a)&nbsp; &nbsp;Senior notes</I><B><I> </I></B></P>
<P align=justify>In April 2011, the Company completed a public offering of
US$200 million in senior notes due in 2019, bearing interest at an annual rate
of 7.75% . The notes are guaranteed by the Company&#146;s subsidiaries and the
subsidiary guarantees are, in turn, guaranteed by the Company. </P>
<P align=justify>The Company may redeem some or all of the notes at any time on
or after April 15, 2015 at redemption prices ranging from 103.875% to 100% plus
accrued interest. Prior to April 15, 2015, the notes may be redeemed at 100%
plus a make-whole premium, plus accrued interest. In addition, until April 15,
2014, the Company may redeem up to 35% of the principal amount of notes, in an
amount not greater than the net proceeds of certain equity offerings, at a
redemption price of 107.75%, plus accrued interest.</P>
<P align=justify>The Company is subject to certain restrictions on asset sales,
payments, and incurrence of indebtedness and issuance of preferred stock.</P>
<P align=justify><I>(b)&nbsp; &nbsp;Capital leases</I><B><I> </I></B></P>
<P align=justify>Capital leases are are repayable in monthly installments with
fixed interest rates and are secured by plant and equipment with a carrying
value of $29,606 (2010: $25,883; January 1, 2010: $17,889). The capital lease
obligations bear fixed interest rates ranging from 5.93% to 8.80% and have
maturity dates ranging from 2012 to 2016. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_30></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify><I>(c)&nbsp; &nbsp;Secured equipment loans</I></P>
<P align=justify>The equipment loans are secured by equipment with a carrying
value of $26,899 (2010: $28,404; January 1, 2010: $11,269). The loans are
repayable in monthly installments and bear fixed interest rates ranging from
5.35% to 8.63% and have maturity dates ranging from 2012 to 2014. </P>
<P align=justify><I>(d)&nbsp;&nbsp; Credit facility</I></P>
<P align=justify>The Company had a US$50-million credit facility agreement
bearing interest at LIBOR plus 5 percent. The facility was repayable in equal
installments commencing April 2010 and every second month thereafter until
February 2012. During 2010, the Company repaid the facility and recorded a loss
of $834 as a result of writing off deferred finance costs. </P>
<P align=justify><B>20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EQUITY </B></P>
<P align=justify><I>(a)&nbsp; &nbsp;Share capital </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap>Tracking </TD>
  <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap>Common </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap>preferred </TD>
  <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(thousands of
      shares) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>shares </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>shares </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>At January 1, 2010 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>182,925 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>12,484 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Issued on purchase of royalty interest (note 17b) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,556 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Issued as donation </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>225 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Exercise of
      share options </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2,792
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>At January 1, 2011 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>187,498 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>12,484 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Issued for cash </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,000 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff>&nbsp;Exchange of tracking preferred shares
      for common shares (note 20b) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>5,916 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(12,484</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Exercise of
      share options </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2,091
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left>At
      December 31, 2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>196,505 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P align=justify>The Company&#146;s authorized share capital consists of an unlimited
number of common shares with no par value. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>January 1,</B> </TD>
  <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Common shares </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;378,393 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;338,911 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;323,734 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">Tracking preferred
      shares </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>26,642 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>26,642 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;378,393 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;365,553 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;350,376 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P align=justify><I>(b)&nbsp;&nbsp; Equity issued </I></P>
<P align=justify>During the year ended December 31, 2011, the Company sold one
million of its common shares through at-the-market issuance for net proceeds of
$5,559. </P>
<P align=justify>During the year ended December 31, 2011, Continental Minerals
Corporation (&#147;Continental&#148;) completed its previously-announced plan of
arrangement with Jinchuan Group Ltd. Pursuant to the plan of arrangement, the
outstanding preferred shares of Continental were exchanged for common shares of
the Company, resulting in the issuance of 5,916,241 common shares at a fair
value of $29,581 and the redemption of all of the outstanding tracking preferred
shares. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_31></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify>On March 24, 2010, the Company issued 1,556,365 common shares
to repurchase a royalty held by Gibraltar Royalty Limited Partnership, an
unrelated investment partnership, on the Gibraltar mine&#146;s copper production. The
fair value of the shares issued exceeded the carrying value of the royalty
obligation, resulting in a charge of $1,302 to profit and loss. </P>
<P align=justify><I>(c)&nbsp;&nbsp; Contributed surplus </I></P>
<P align=justify>Contributed surplus represents employee entitlements to
share-based awards that have been charged to profit and loss in the periods
during which the entitlements were accrued and have not yet been exercised. </P>
<P align=justify><I>(d)&nbsp;&nbsp; Accumulated other comprehensive income
(&#147;AOCI&#148;) </I></P>
<P align=justify>AOCI is comprised of the cumulative net change in the fair
value of available-for-sale financial assets, net of taxes, until the
investments are sold or impaired. </P>
<P align=justify><B>21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SHARE-BASED
COMPENSATION </B></P>
<P align=justify>The Company has a share option plan (equity settled) approved
by the shareholders that allows it to grant options to directors, officers,
employees and other service providers. Under the plan, a maximum of 10% of the
Company&#146;s outstanding common shares may be granted. The exercise price of an
option is set at the time of grant using the five-day volume weighted average
price of the common shares. Options may have a term of up to ten years. Vesting
conditions of options is at the discretion of the Board of Directors at the time
the options are granted.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(thousands of
      options) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">Options </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">Average price </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Outstanding at January 1, 2010 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>10,385 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>1.39 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Granted </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>3,709 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4.63 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Exercised </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(2,792</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1.37 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Forfeited </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(188</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1.62 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Expired </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Outstanding at January 1, 2011 </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>11,114 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>2.47 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Granted </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,370 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>5.16 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Exercised </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(2,091</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1.37 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Forfeited </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(98</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>4.58 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Expired </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Outstanding at December 31, 2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>11,295 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>3.22 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Exercisable at
      December 31, 2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>8,683
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2.71
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P align=justify>The weighted-average share price at the date of exercise for
share options exercised in 2011 was $4.18 (2010: $5.18) . </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>Options </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap>Average life </TD>
  <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">Range of exercise
      price </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">(thousands) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>(years) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>$1.00 to $2.17 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>4,996 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2.1 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>$3.07 to $4.77 </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>3,654 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2.3 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>$5.00 to $5.74 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>2,645 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>3.9 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>11,295 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2.6
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_32></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify>The fair value at grant date of the share option plan was
measured based on the Black-Scholes formula. Expected volatility is estimated by
considering historic average share price volatility. The inputs used in the
measurement of the fair values at grant date of the share-based payment plans
are the following: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=right nowrap>Key management personnel </TD>
    <TD width="2%" align=right>&nbsp;</TD>
    <TD width="1%" align=right>&nbsp;</TD>
    <TD colspan="4" align=right nowrap>Employees </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2011
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2010
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2011
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2010
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Weighted-average share price </TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>5.01 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>4.60 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>4.98 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>5.05 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Expected term (years) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4.9 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>5.0 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>3.0 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>3.2 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Expected forfeiture rate </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0% </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0% </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0% </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0% </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Weighted-average expected volatility </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap>77.0% </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap>75.4% </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap>83.8% </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap>82.7% </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Expected dividend yield </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0% </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0% </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0% </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0% </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Risk-free interest
      rate </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2.2%
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2.7%
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2.2%
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>1.8%
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD
      align=left nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">Weighted-average fair value per option </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>3.11 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>2.88 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>2.69 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>2.85 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify><B>22.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EARNINGS PER SHARE
</B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=right nowrap><B>Year ended December 31,</B> </TD>
    <TD width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Net earnings </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;26,974 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;149,357 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Net earnings &#150;
      diluted </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;26,974 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;149,357 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>(in thousands of common shares) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Weighted-average number of common shares <SUP>1</SUP> </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>193,213 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>186,103 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Dilutive securities: </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Effect of share options </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4,535 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>10,626 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Effect of tracking preferred shares </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>6,277 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">Weighted-average number
      of diluted common shares <SUP>1</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">197,748 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">203,006 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>($ per common share) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Basic earnings per share</B> </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>0.14</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>0.80</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><B>Diluted earnings per share</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>0.14</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>0.74</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify><SUP>1 .</SUP>The normal course issuer bid announced January
31, 2012 (see note 28) may reduce the number of common shares outstanding by up
to 10 million. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_33></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify><B>23.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; COMMITMENTS AND
CONTINGENCIES </B></P>
<P align=justify><I>(a)&nbsp; &nbsp;Commitments </I></P>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="11%" align=right nowrap><B>&lt;1 year or</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="11%" align=right><B>on</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
      align=right><B>demand</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="11%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>1
      - 2 years</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="11%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>2
      - 5 years</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="11%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>&gt;5 years</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
      align=right><B>Total</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>At December 31, 2011</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >&nbsp;Capital lease liability
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="11%" align=right>&nbsp;6,925 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="11%" align=right>&nbsp;5,938 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="11%" align=right>&nbsp;8,924 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="11%" align=right>&nbsp;- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="11%" align=right>&nbsp;21,787 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp;Future interest charges </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>1,133
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>709
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>602
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>2,444
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >Capital lease commitments </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>&nbsp;8,058 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>&nbsp;6,647 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>&nbsp;9,526 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD width="11%"
    align=right nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;24,231 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Operating lease commitments<SUP>1</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
      align=right>&nbsp;1,377 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
      align=right>&nbsp;117 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
      align=right>&nbsp;145 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
      align=right>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
      align=right>&nbsp;1,639 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"
    >Capital expenditures commitments </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>&nbsp;37,200 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD width="11%"
    align=right nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;37,200 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>At December 31, 2010</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="11%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >&nbsp;Capital lease liability
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="11%" align=right>&nbsp;5,354 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="11%" align=right>&nbsp;5,394 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="11%" align=right>&nbsp;9,565 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="11%" align=right>&nbsp;- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="11%" align=right>&nbsp;20,313 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp;Future interest charges </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>1,098
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>750
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>720
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>2,568
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >Capital lease commitments </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>&nbsp;6,452 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>&nbsp;6,144 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>&nbsp;10,285 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>&nbsp;22,881 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Operating lease commitments </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
      align=right>&nbsp;2,730 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
      align=right>&nbsp;1,377 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
      align=right>&nbsp;262 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
      align=right>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
      align=right>&nbsp;4,369 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"
    >Capital expenditures commitments </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>&nbsp;2,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>14,942 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>&nbsp;16,942 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE></DIV>
<P align=justify>Operating leases are entered into as a means of acquiring
property, plant and equipment. Certain leases contain extension and renewal
options. </P>
<P align=justify>In respect of its interest in a joint venture, the joint
venture is committed to incur capital expenditures of $49,600 (2010: $21,923),
of which the Company&#146;s share of this commitment is $37,200 (2010: $16,942). </P>
<P align=justify>During the year ended December 31, 2011, an amount of $2,859
was recognized as an expense in profit or loss in respect of operating leases
(2010: $1,413).</P>
<P align=justify><I>(b)&nbsp; &nbsp;Contingencies </I></P>
<P align=justify>The Company has guaranteed 100% of certain debt entered into by
the Gibraltar joint venture in which it holds a 75% interest. As at December 31,
2011, this debt totaled $33,513 on a 100% basis. The Company has also guaranteed
its share of additional debt totaling $9,711 on 75% basis. </P>
<P align=justify><B>24.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SUPPLEMENTARY CASH
FLOW INFORMATION </B></P>
<P align=justify><I>(a)&nbsp;&nbsp; Cash and equivalents </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-TOP: #000000 1px solid"><B>December 31,</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-TOP: #000000 1px solid"><B>December 31,</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-TOP: #000000 1px solid"><B>January 1,</B> </TD>
  <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Cash </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;217,338 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;191,901 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;24,572 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">Dual currency
      deposits &lt; 3-month term </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>60,454 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>19,892 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>10,510 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;277,792 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;211,793 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;35,082 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_34></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify><I>(b)&nbsp; &nbsp;Other items </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=right nowrap><B>For the year ended December 31,</B> </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Change in non-cash working capital items</B>
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Accounts receivable </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right nowrap>&nbsp;(17,989</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;(9,413</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Inventories </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(2,005</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(4,730</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Accounts payable and accrued liabilities </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>12,492 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>5,802 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Deferred revenue </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(175</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(175</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Other </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(4,671</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(9,777</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;(12,348</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD width="12%"
    align=right nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;(18,293</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Operating cash flows &#150; other items</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Non-cash donation expense </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;928 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Realized loss on copper derivative instruments </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>9,910 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Reclamation expenditures </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(2,670</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(91</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Impairment of
      plant and equipment </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2,377
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;9,617 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;837 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Investing cash flows &#150; other items</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Net cash reinvested in reclamation deposit
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;(1,054</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;(1,293</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Reclamation deposit </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(12</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Restricted cash </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>3,153 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;(1,066</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;1,860 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Non-cash investing and financing activities</B>
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Shares issued for donation </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;928 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Assets acquired under capital lease </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;7,241 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;12,923 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap>&nbsp;Shares issued for redemption of royalty obligation </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;7,813 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Shares issued for preferred shares redemption </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;26,642 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify><B>25.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FINANCIAL RISK
MANAGEMENT </B></P>
<P align=justify><I>(a)&nbsp; &nbsp;Overview </I></P>
<P align=justify>In the normal course of business, the Company is inherently
exposed to market, liquidity and credit risk through its use of financial
instruments. The timeframe and manner in which the Company manages these risks
varies based upon management&#146;s assessment of the risk and available alternatives
for mitigating risk. The Board approves and monitors risk management processes,
including treasury policies, counterparty limits, controlling and reporting
structures.</P>
<P align=justify><I>(b)&nbsp;&nbsp; Market risk </I></P>
<P align=justify>Market risk is the risk that the fair value of future cash
flows of a financial instrument will fluctuate because of changes in market
prices. Market prices comprise three types of risk: commodity price risk;
interest rate risk; and currency risk. Financial instruments affected by market
risk include: cash and equivalents; accounts receivable; promissory note;
marketable securities; reclamation deposits; accounts payable and accrued
liabilities; debt; royalty obligation; and derivatives. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_35></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify>The objective of market risk management is to manage and
control market risk exposures within acceptable parameters, while optimizing the
return. The Company buys and sells derivatives in order to manage market risks.
The derivative instruments employed by the Company are not designated as hedges
for accounting purposes. These non-hedge derivatives are considered to be
economic hedges. </P>
<P align=justify><I>Commodity price risk </I></P>
<P align=justify>The Company is exposed to the risk of fluctuations in
prevailing market commodity prices on the metals it produces. To manage the
Company&#146;s operating margins effectively in volatile metals markets, the Company
enters into copper option contracts. The amount and duration of the Company&#146;s
hedge position is based on its assessment of business specific risk elements
combined with the copper pricing outlook. Currently, the Company has 90% of its
estimated share of 2012 Gibraltar copper production hedged by means of collar
sell contracts.</P>
<P align=justify>The table below summarizes the impact on earnings after tax and
equity for changes in commodity prices on the fair value of derivatives, other
than those designated as embedded derivatives.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=right nowrap><B>Years ended December 31,</B> </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD
      align=left nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">Copper increases by US$0.34/lb (2010: US$0.45/lb) <SUP>1</SUP>    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;(10,288</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;(325</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
  </TR>
</TABLE>
<P align=justify><SUP>1. </SUP>The analysis is based on the assumption that the
year-end copper price increases 10% with all other variables held constant. The
relationship between the year-end copper price and the strike price of copper
options has significant influence over the fair value of the derivatives. As
such, a 10% decrease in the year-end copper price will not result in an equal
but opposite impact on earnings after tax and equity. The closing exchange rate
for the year ended December 31, 2011 of CAD/USD 1.0170 (2010: 0.9946) was used
in the analysis. </P>
<P align=justify>The Company also enters into physical commodity contracts in
the normal course of business. These contracts are not derivatives and are
measured at cost (typically at nil); they are therefore excluded from the fair
value and sensitivity table above. Also not included in the above tables are
provisionally priced sales volumes for which price finalization is outstanding
at balance date. Provisionally pricing mechanisms embedded within these sales
arrangements have the character of a commodity derivative and are carried at
fair value as part of accounts receivables. The table below summarizes the
impact on earnings after tax and equity for changes in commodity prices upon
provisionally invoiced sales volumes. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=right nowrap><B>Years ended December 31,</B> </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Copper increase/decrease by US$0.34/lb (2010:
      US$0.45/lb) <SUP>1</SUP> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;2,054 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;5,063 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">Molybdenum increase/decrease
      by US$1.34/lb (2010: US$1.60/lb) <SUP>1</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>269 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>223 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify><SUP>1. </SUP>The analysis is based on the assumption that the
metal price moves 10% with all other variables held constant. The closing
exchange rate for the year ended December 31, 2011 of CAD/USD 1.0170 (2010:
0.9946) was used in the analysis. </P>
<P align=justify>The sensitivities in the above tables have been determined as
the absolute impact on fair value of a 10 per cent increase in commodity prices
at each reporting date, while holding all other variables, including foreign
currency and exchange rates, constant. The relationship between commodity prices
and foreign currencies is complex and movements in foreign exchange can impact
commodity prices. The sensitivities should therefore be used with care. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_36></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify><I>Interest rate risk </I></P>
<P align=justify>The Company is exposed to interest rate risk on its outstanding
debt and investments, including cash and equivalents, from the possibility that
changes in market interest rates will affect future cash flows or the fair value
of fixed-rate interest-bearing financial instruments.</P>
<P align=justify>The table below summarizes the impact on earnings after tax and
equity for a change of 100 basis points in interest rates at the reporting date.
This analysis assumes that all other variables, in particular foreign currency
rates, remain constant. This assumes that the change in interest rates is
effective from the beginning of the financial year and balances are constant
over the year. However, interest rates and balances of the Company may not
remain constant in the coming financial year and therefore such sensitivity
analysis should be used with care. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=right nowrap><B>Years ended December 31,</B> </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Fair value sensitivity for fixed-rate instruments</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Cash and equivalents </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;407 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;124 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Dual currency deposits &gt; 3-month term </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>482 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Promissory note </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>789 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>734 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Capital leases </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(148</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(100</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Secured equipment loans </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(128</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(81</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Senior notes
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(1,057</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;345 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;677 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap><B>Cash flow sensitivity for variable-rate instruments</B>    </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Cash and equivalents </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;1,327 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;521 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Capped floating rate notes </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>11 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Reclamation deposits </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>174 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>121 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Credit facility
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
align=right>(93</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;1,512 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;549 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify><I>Currency risk </I></P>
<P align=justify>The Canadian dollar is the functional currency of the Company
and, as a result, currency exposures arise from transactions and balances in
currencies other than the Canadian dollar, primarily the US dollar. The
Company&#146;s potential currency exposures comprise translational exposure in
respect of non-functional currency monetary items, and transactional exposure in
respect of non-functional currency revenues and expenditures. The Company also
has currency exposure as a result of its investment in dual currency deposits
(&#147;DCD&#148;). A DCD is a financial instrument which combines a money market deposit
with a currency option to provide a higher yield than that available for a
standard deposit. The currency that the Company receives upon maturity of the
DCD is dependent on the prevailing spot foreign exchange rate at maturity.</P>
<P align=justify>The following table demonstrates the sensitivity to a 10%
strengthening in the CAD against the USD. With all other variables held
constant, the Company&#146;s earnings after tax would increase/(decrease) due to
changes in the carrying value of monetary assets and liabilities. The impact on
equity is the same as the impact on profit after tax. A weakening in the CAD
against the USD would have had the equal but opposite effect to the amounts
shown below. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_37></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=right nowrap><B>Year ended December 31,</B> </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Cash and equivalents </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;(8,576</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;(10,164</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Dual currency deposits <SUP>1</SUP> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(7,491</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(1,422</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Accounts receivable </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(2,197</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(1,247</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Copper put option contracts </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(1,867</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(31</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff>Accounts payable and accrued liabilities </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>492 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>86 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Copper call option contracts </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>192 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Senior notes </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>14,510 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify><SUP>1. </SUP>Represents the translational exposure of the
DCDs, and does not consider the potential impact of losses as a result of
potential conversions of the DCD into Canadian dollars at maturity. </P>
<P align=justify>The Company&#146;s financial asset and liability profile may not
remain constant and, therefore, these sensitivities should be used with care.
</P>
<P align=justify><I>(c)&nbsp;&nbsp; Liquidity risk </I></P>
<P align=justify>Liquidity risk is the risk that the Company will not be able to
meet its financial obligations as they become due. The Company manages liquidity
risk by holding sufficient cash and equivalents and scheduling long-term
obligations based on estimated cash inflows. </P>
<P align=justify>During the year ended December 31, 2011, Moody&#146;s Investor
Service made no change to the Company&#146;s long-term credit rating of B3, and
Standard &amp; Poor&#146;s made no change to the Company&#146;s long-term credit rating of
B. The Company&#146;s strong credit profile and significant cash balance ensure that
sufficient liquid funds are maintained to meet its daily cash requirements. The
Company&#146;s practice on counterparty credit exposure ensures that only
counterparties of a high credit standing are used for the investment of any
excess cash. </P>
<P align=justify>There were no defaults on loans payable during the year. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_38></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify>The maturity profile of the Company&#146;s financial liabilities
based on contractual undiscounted amounts is: </P>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>&lt;1 year or</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>demand</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>1
      - 2 years</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>2
      - 5 years</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>&gt;5 years</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Total</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>At December 31, 2011</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap>&nbsp;Accounts payable and accrued liabilities </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;36,289 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;36,289 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Expected future interest payments </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>17,518 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>16,717 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>47,945 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>36,126 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>118,306 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Capital leases </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>6,925 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>5,938 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>8,924 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>21,787 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Secured equipment loans </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>6,828 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>3,672 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,559 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>13,059 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Senior notes </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>203,400 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap>203,400 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Royalty obligations <SUP>1</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>13,514 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>23,809 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>15,461 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>52,784 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;81,074 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;50,136 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;74,889 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;239,526 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;445,625 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Carrying amount </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;63,556 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;33,419 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;26,944 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;197,409 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD width="12%"
    align=right nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;321,328 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>At December 31, 2010</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff>&nbsp;Accounts payable and accrued
      liabilities </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;23,796 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;23,796 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Expected future interest payments </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2,080 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,371 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,015 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4,466 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Capital leases </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>5,354 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>5,394 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>9,565 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>20,313 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Secured equipment loans </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4,961 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>6,828 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>6,231 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>18,020 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Royalty obligations <SUP>1</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>9,913 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>13,335 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>33,845 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>1,800 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>58,893 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;46,104 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;26,928 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;50,656 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;1,800 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;125,488 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Carrying amount </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;44,023 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;25,557 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;49,641 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;1,800 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;121,021 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE></DIV>
<P align=justify><SUP>1. </SUP>Actual timing of payment for royalty obligations
may differ. Amounts estimated based on expected future production levels. </P>
<P align=justify><I>(d)&nbsp;&nbsp; Credit risk </I></P>
<P align=justify>Credit risk is the risk of potential loss to the Company if a
customer or counterparty to a financial instrument fails to meet its contractual
obligations. The Company is exposed to credit risk from its receivables,
marketable securities and investments, and derivatives. In general, the Company
manages its credit exposure by transacting only with reputable counterparties.
The Company monitors the financial condition of its customers and counterparties
to contracts. </P>
<P align=justify>The following table shows the Company&#146;s receivables at the
reporting date that are exposed to credit risk and the aging analysis. There are
no impairments recognized on the receivables. </P>
<DIV>
  <TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
    <TR vAlign=top>
      <TD align=left>&nbsp; </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right nowrap><B>Not past</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD colspan="7" align=center nowrap><B>Past due but not impaired</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Total</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>due</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>&lt;30 days</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>31-90 days</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>&gt;90 days</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left nowrap><B>At December 31, 2011</B> </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD bgColor=#e6efff align=left>&nbsp;Trade receivables </TD>
      <TD bgColor=#e6efff  width="1%" align=left>$</TD>
      <TD width="12%" align=right nowrap bgColor=#e6efff>&nbsp;29,891 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>$</TD>
      <TD bgColor=#e6efff width="12%" align=right>&nbsp;29,958 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>$</TD>
      <TD bgColor=#e6efff width="12%" align=right>&nbsp;12 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>$</TD>
      <TD bgColor=#e6efff width="12%" align=right>&nbsp;(79</TD>
      <TD bgColor=#e6efff  width="2%" align=left>) </TD>
      <TD bgColor=#e6efff  width="1%" align=left>$</TD>
      <TD bgColor=#e6efff width="12%" align=right>&nbsp;- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Other receivables
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>10,018 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>9,306
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>712
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
      <TD width="12%"
    align=right nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;39,909 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;39,264 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;12 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;633 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left nowrap><B>At December 31, 2010</B> </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD bgColor=#e6efff align=left>&nbsp;Trade receivables </TD>
      <TD bgColor=#e6efff  width="1%" align=left>$</TD>
      <TD bgColor=#e6efff width="12%" align=right>&nbsp;17,443 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>$</TD>
      <TD bgColor=#e6efff width="12%" align=right>&nbsp;17,398 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>$</TD>
      <TD bgColor=#e6efff width="12%" align=right>&nbsp;(7</TD>
      <TD bgColor=#e6efff  width="2%" align=left>) </TD>
      <TD bgColor=#e6efff  width="1%" align=left>$</TD>
      <TD bgColor=#e6efff width="12%" align=right>&nbsp;52 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>$</TD>
      <TD bgColor=#e6efff width="12%" align=right>&nbsp;- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Other receivables
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>4,475
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>4,475
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
      <TD width="12%"
    align=right nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;21,918 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;21,873 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;(7</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;52 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_39></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify>The Company deals with a limited number of counterparties for
its metal sales. The balance at December 31, 2011 is comprised of four customers
(2010: four customers). </P>
<P align=justify><I>(e)&nbsp;&nbsp; Fair values of financial instruments
</I></P>
<P align=justify>The fair values of financial assets and liabilities, together
with their carrying amounts, are presented by class in the following table.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="4"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2011</B>    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="4"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>Carrying</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>Carrying</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>amount</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Fair value</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>amount</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Fair value</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Financial assets</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap><I>Fair value through profit and loss (FVTPL)</I> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Dual currency deposits &lt; 3-month term
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;61,033 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;61,033 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;19,892 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;19,892 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Dual currency deposits &gt; 3-month term </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>40,602 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>40,602 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Copper put option contracts </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>25,407 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>25,407 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>433 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>433 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Warrants </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>599 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>599 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><I>Loans and receivables</I> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Cash </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;216,759 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;216,759 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;191,901 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;191,901 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Accounts receivable </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>39,909 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>39,909 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>21,918 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>21,918 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Promissory note
      <SUP>1</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>74,814 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>N/A </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>77,807 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>N/A </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><I>Available-for-sale</I> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Capped floating rate notes </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;20,055 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;20,055 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Shares </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>11,898 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>11,898 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>17,922 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>17,922 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Reclamation
      deposits </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>24,962 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>24,962 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>23,266 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>23,266 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Financial liabilities</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap><I>Fair value through profit and loss (FVTPL)</I> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Copper call option contracts </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;2,607 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;2,607 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><I>Financial liabilities</I> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Accounts payable and accrued liabilities
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;36,289 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;36,289 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;23,795 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;23,795 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Senior notes </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>197,409 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>185,603 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Capital leases </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>21,787 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>21,562 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>20,313 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>20,040 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Secured equipment loans </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>13,059 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>12,235 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>18,020 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>16,727 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Royalty obligation <SUP>1</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>52,784 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>N/A </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>58,893 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>N/A </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify><SUP>1.</SUP> The fair value of the promissory note and royalty
obligation are not readily determinable with sufficient reliability due to the
uncertainty around the maturities and the future cash flows associated with the
promissory note. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_40></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify>The Company uses the fair value hierarchy described in note 2f
for determining the fair value of financial instruments.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Level 1</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Level 2</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Level 3</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Total</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>December 31, 2011</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><I>Financial assets designated at FVTPL</I> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Dual currency deposits </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;101,635 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;101,635 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Copper put option contracts </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>25,407 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>25,407 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Warrants </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><I>Available-for-sale financial assets</I> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Shares </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>11,898 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>11,898 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Capped floating rate notes </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>20,055 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>20,055 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Reclamation deposits </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>24,962 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>24,962 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;36,860 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;147,097 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;183,957 </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff><I>Financial liabilities designated at
      FVTPL</I> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Copper call
      option contracts </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;2,607 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;2,607 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>December 31, 2010</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><I>Financial assets designated at FVTPL</I> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Dual currency deposits </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;19,892 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;19,892 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Copper put option contracts </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>433 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>433 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Warrants </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>599 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>599 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><I>Available-for-sale financial assets</I> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Shares </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>17,922 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>17,922 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Reclamation
      deposits </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>23,266 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>23,266 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;41,188 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;20,924 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;62,112 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P align=justify>There have been no transfers between fair value levels during
the reporting period.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_41></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify><I>(f)&nbsp;&nbsp; Summary of derivatives and financial assets
containing embedded derivatives </I></P>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD width="17%" align=left>&nbsp; </TD>
    <TD width="17%" align=left>&nbsp; </TD>
    <TD width="17%" align=center><B>Term to</B> </TD>
    <TD width="15%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD width="17%"
      align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Notional amount</B> </TD>
    <TD width="17%"
      align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Strike price</B><SUP>1</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=center><B>maturity</B> </TD>
    <TD width="15%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Fair value</B> </TD>
    <TD width="2%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    ><B>At December 31, 2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="17%"
    align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="17%"
    align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="17%"
    align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="15%"
    align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left ><I>Commodity contracts</I> </TD>
    <TD width="17%" align=left>&nbsp; </TD>
    <TD width="17%" align=left>&nbsp; </TD>
    <TD width="17%" align=left>&nbsp; </TD>
    <TD width="15%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff >&nbsp;Copper put option
      contracts </TD>
    <TD bgColor=#e6efff width="17%" align=center>68.5 million lbs </TD>
    <TD bgColor=#e6efff width="17%" align=center>US$3.50 </TD>
    <TD width="17%" align=center nowrap bgColor=#e6efff>Q1-Q4 2012 </TD>
    <TD bgColor=#e6efff width="15%" align=right>$ 25,407 </TD>
    <TD bgColor=#e6efff width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
      >&nbsp;Copper call option contracts </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=center>68.5
      million lbs </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=center>US$5.02 to 5.12 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=center>Q1-Q4 2012 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%" align=right>$
      (2,607) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left ><I>Dual currency deposits</I>    </TD>
    <TD bgColor=#e6efff width="17%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="17%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="17%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="15%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;USD/CAD (4.50% to 6.00%) </TD>
    <TD width="17%" align=center>US$60 million </TD>
    <TD width="17%" align=center nowrap>1.0300 to 1.0740 </TD>
    <TD width="17%" align=center>&lt; 3 months </TD>
    <TD width="15%" align=right>$ 61,313 </TD>
    <TD width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >&nbsp;USD/CAD (4.00% to 7.05%) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="17%"
    align=center>US$40 million </TD>
    <TD width="17%"
    align=center nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">0.9850 to 1.0800 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="17%"
    align=center>&gt; 3 months </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="15%"
    align=right>$ 40,602 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left ><I>Capped floating rate notes</I> </TD>
    <TD width="17%" align=left>&nbsp; </TD>
    <TD width="17%" align=left>&nbsp; </TD>
    <TD width="17%" align=left>&nbsp; </TD>
    <TD width="15%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >&nbsp;3-month BA rate + 25
      bps </TD>
    <TD bgColor=#e6efff width="17%" align=center>C$10 million </TD>
    <TD bgColor=#e6efff width="17%" align=center>5.00% </TD>
    <TD bgColor=#e6efff width="17%" align=center>Q4 2013 </TD>
    <TD bgColor=#e6efff width="15%" align=right>$ 10,024 </TD>
    <TD bgColor=#e6efff width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp;3-month BA rate + 45 bps </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=center>C$10
      million </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=center>5.50% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=center>Q4
      2014 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%" align=right>$
      10,031 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left ><I>Share purchase
      warrants</I> </TD>
    <TD bgColor=#e6efff width="17%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="17%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="17%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="15%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp;Publicly-traded company </TD>
    <TD width="17%" align=center nowrap style="BORDER-BOTTOM: #000000 1px solid">1
      million shares </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=center>$1.20 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=center>Q2
      2012 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%" align=right>-  </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    ><B>At December 31, 2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="17%"
    align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="17%"
    align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="17%"
    align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="15%"
    align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left ><I>Commodity contracts</I> </TD>
    <TD width="17%" align=left>&nbsp; </TD>
    <TD width="17%" align=left>&nbsp; </TD>
    <TD width="17%" align=left>&nbsp; </TD>
    <TD width="15%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;Copper put option contracts </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="17%"
    align=center>34.3 million lbs </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="17%"
    align=center>US$3.00 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="17%"
    align=center>Q1-Q2 2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="15%"
    align=right>$ 433 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left ><I>Dual currency deposits</I> </TD>
    <TD width="17%" align=left>&nbsp; </TD>
    <TD width="17%" align=left>&nbsp; </TD>
    <TD width="17%" align=left>&nbsp; </TD>
    <TD width="15%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >&nbsp;USD/CAD (4.00% to 4.50%) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="17%"
    align=center>US$20 million </TD>
    <TD width="17%"
    align=center nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">1.0285 to 1.0410 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="17%"
    align=center>&lt; 3 months </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="15%"
    align=right>$ 19,892 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left ><I>Share purchase warrants</I> </TD>
    <TD width="17%" align=left>&nbsp; </TD>
    <TD width="17%" align=left>&nbsp; </TD>
    <TD width="17%" align=left>&nbsp; </TD>
    <TD width="15%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >&nbsp;Publicly-traded company </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="17%"
    align=center>1 million shares </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="17%"
    align=center>$1.20 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="17%"
    align=center>Q2 2012 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="15%"
    align=right>$ 599 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=right>&nbsp;</TD>
  </TR></TABLE>
</DIV>
<P align=justify><SUP>1. </SUP>For the floating rate notes, this value
represents the cap level for the coupon rate.</P>
<P align=justify><I>(g)&nbsp;&nbsp; Capital management </I></P>
<P align=justify>The Company's primary objective when managing capital is to
ensure that the Company is able to continue its operations and that it has
sufficient ability to satisfy its capital obligations and ongoing operational
expenses, as well as to have sufficient liquidity available to fund suitable
business opportunities as they arise. </P>
<P align=justify>The Company considers the components of shareholders' equity,
as well as its cash and equivalents, DCDs classified within marketable
securities, credit facilities and debt as capital. The Company manages its
capital structure and makes adjustments to it in light of changes in economic
conditions and the risk characteristics of the underlying assets. In order to
maintain or adjust the capital structure, the Company may issue or buy back
equity, issue, buy back or repay debt, sell assets, or return capital to
shareholders.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</B> </TD>
  <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Cash and equivalents </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;277,792 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;211,793 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap>&nbsp;DCDs within other financial assets </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>40,602 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Current debt </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>13,753 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>10,315 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Long-term
      debt </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>218,502 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>28,018 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><B>Net (cash) debt</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>&nbsp;(86,139</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>&nbsp;(173,460</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left><B>)</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Shareholders&#146;
      equity</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B>$</B></TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>&nbsp;496,817</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B>$</B></TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>&nbsp;460,742</B> </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_42></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify>In order to facilitate the management of its capital
requirements, the Company prepares annual operating budgets that are approved by
the Board of Directors. Management also actively monitors its financial
covenants to ensure compliance. </P>
<P align=justify>The Company&#146;s investment policy is to invest its cash in highly
liquid interest-bearing investments that are readily convertible to known
amounts of cash. </P>
<P align=justify>There were no changes to the Company's approach to capital
management during the year ended December 31, 2011. </P>
<P align=justify><B>26</B><B>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RELATED
PARTIES </B></P>
<P align=justify><I>(a)&nbsp;&nbsp; Subsidiaries </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD colspan="3" align=center nowrap><B>Ownership interest as at</B>  </TD>
    </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="15%" align=right nowrap><B>December 31,</B> </TD>
    <TD width="15%" align=right nowrap><B>December 31,</B> </TD>
    <TD width="15%" align=right nowrap><B>January 1,</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right><B>2010</B> </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Gibraltar Mines Ltd. </TD>
    <TD bgColor=#e6efff width="15%" align=right>100% </TD>
    <TD bgColor=#e6efff width="15%" align=right>100% </TD>
    <TD bgColor=#e6efff width="15%" align=right>100% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Aley Corporation </TD>
    <TD width="15%" align=right>100% </TD>
    <TD width="15%" align=right>100% </TD>
    <TD width="15%" align=right>100% </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff>Taseko Acquisitionsub Ltd. </TD>
    <TD bgColor=#e6efff width="15%" align=right>100% </TD>
    <TD bgColor=#e6efff width="15%" align=right>100% </TD>
    <TD bgColor=#e6efff width="15%" align=right>100% </TD></TR>
  <TR vAlign=top>
    <TD align=left>0806294 BC Ltd. </TD>
    <TD width="15%" align=right>100% </TD>
    <TD width="15%" align=right>100% </TD>
    <TD width="15%" align=right>100% </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>688888 BC Ltd. </TD>
    <TD bgColor=#e6efff width="15%" align=right>100% </TD>
    <TD bgColor=#e6efff width="15%" align=right>100% </TD>
    <TD bgColor=#e6efff width="15%" align=right>100% </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Gibraltar Royalty
      LP </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right>99.99% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right>99.99% </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%" align=right>-  </TD></TR></TABLE>
<P align=justify><I>(b)&nbsp; &nbsp;Key management personnel compensation
</I></P>
<P align=justify>Key management personnel include the members of the Board of
Directors and executive officers of the Company. </P>
<P align=justify>The Company contributes to a post-employment defined
contribution pension plan on the behalf of certain key management personnel.
This retirement compensation arrangement (RCA Trust) was established to provide
benefits to certain executive officers on or after retirement in recognition of
their long service. Upon retirement, the participant is entitled to the
distribution of the accumulated value of the contributions under the RCA Trust.
Obligations for contributions to the defined contribution pension plan are
recognized as compensation expense in profit or loss in the periods during which
services are rendered by the executive officers. </P>
<P align=justify>Certain executive officers are entitled to termination and
change in control benefits. In the event of termination without cause, other
than a change in control, these executive officers are entitled to an amount
ranging from 9-month to 12-month&#146;s salary. In the event of a change in control,
if a termination without cause or a resignation occurs within 12 months
following the change of control, these executive officers are entitled to
receive, among other things, an amount ranging from 24-month to 32-months salary
and accrued bonus, and all stock options held by these individuals will fully
vest. </P>
<P align=justify>Executive officers and directors also participate in the
Company&#146;s share option program (note 21).</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_43></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify>Compensation for key management personnel (including directors)
is as follows: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center nowrap><B>Year ended December 31,</B> </TD>
    <TD width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Salaries and benefits </TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;3,578 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;3,186 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Post-employment benefits </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,135 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>666 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD
      align=left nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">Share-based compensation </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>6,591 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>6,524 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>11,304 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>10,376 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify><I>(c)&nbsp;&nbsp; Other related party transactions </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center nowrap><B>Transaction value for the</B> </TD>
    <TD width="2%" align=center>&nbsp;</TD>
    <TD width="1%" align=center>&nbsp;</TD>
    <TD colspan="4" align=center nowrap><B>Due to (from) related parties</B> </TD>
    <TD width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center><B>year end December 31,</B> </TD>
    <TD width="2%" align=center>&nbsp;</TD>
    <TD width="1%" align=center>&nbsp;</TD>
    <TD colspan="4" align=center><B>as at December 31,</B> </TD>
    <TD width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Hunter Dickinson Services Inc.: </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;General and administrative expenses </TD>
    <TD width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;2,223 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;2,266 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff>&nbsp;Exploration and evaluation expenses </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>764 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>692 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Prepaid rent
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>995 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;3,982 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;2,958 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;44 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;154 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Gibraltar joint venture: </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Other operating income </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;840 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;648 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;(241</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;(1,764</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </TD>
  </TR>
</TABLE>
<P align=justify>Hunter Dickinson Services Inc. (HDSI) is a private company
which, until early 2010, was owned equally by eight public companies, one of
which was the Company. In the first quarter of 2010, the Company sold its
interest in HDSI for a nominal value. HDSI employs some members of the executive
management of the Company and invoices the Company for their executive services
as well as other services. </P>
<P align=justify>Under the terms of the joint venture operating agreement, the
Gibraltar joint venture pays the Company a management fee for services rendered
by the Company as operator of the Gibraltar mine. </P>
<P align=justify><B>27.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TRANSITION TO IFRS
</B></P>
<P align=justify><I>(a)&nbsp;&nbsp; Elected exemptions</I></P>
<P align=justify>IFRS 1 provides for certain mandatory exceptions and optional
exemptions for first time adopters of IFRS. The Company elected to take the
following IFRS 1 optional exemptions as of the transition date of January 1,
2010: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>Not to apply the requirements of IFRS 3, <I>Business Combinations, </I>and
  restate business combinations that occurred prior to the transition date.
  <LI>To apply the requirements of IFRS 2, <I>Share-based Payments</I>, to share
  options granted which had not vested as at the transition date.
  <LI>To apply the borrowing cost exemption and to prospectively apply IAS 23,
  <I>Borrowing Costs.</I>
  <LI>To not retrospectively apply IFRIC 1, <I>Changes in Existing
  Decommissioning, Restoration and Similar</I> <I>Liabilities. </I>The
  simplified approach to calculating the net book value of the asset related to
  the PER was applied. The PER calculated on the transition date in accordance
  with IAS 37, <I>Provisions,</I> <I>Contingent Liabilities and Contingent
  Assets, </I>was discounted back to the date the liability first arose, at
  which date the corresponding asset was set up, and then accumulated
  depreciation was recalculated as at the transition date. </LI></UL>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_44></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify><I>(b)&nbsp;&nbsp; Reconciliation of Equity </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="5%" align=center>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=right nowrap><B>December 31,</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=right nowrap><B>January 1,</B> </TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD width="5%"
      align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Ref.</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="14%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="14%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Equity under Canadian GAAP</B> </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="5%" align=center>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="14%" align=right>&nbsp;469,951 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="14%" align=right>&nbsp;296,693 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap>&nbsp; &nbsp;Change in accounting method for depreciation    </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="5%" align=center>(i) </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=right>(668</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp;Reversal of impairment </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="5%" align=center>(ii) </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="14%" align=right>3,338 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="14%" align=right>4,574 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Provision for environmental rehabilitation </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="5%" align=center>(iii) </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=right>(14,290</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=right>(16,731</TD>
    <TD width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp;Share-based compensation </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD width="5%" align=center nowrap bgColor=#e6efff>(iv) </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="14%" align=right>- </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="14%" align=right>- </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;
      &nbsp;Deferred income tax </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="5%" align=center>(v)
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="14%" align=right>2,411
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="14%" align=right>3,338
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><B>Equity under IFRS</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="5%"
    align=center>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="14%"
    align=right>&nbsp;460,742 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="14%"
    align=right>&nbsp;287,874 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P align=justify><I>(c)&nbsp; &nbsp;Reconciliation of Total Comprehensive Income
</I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=center>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=right><B>Year ended</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD width="10%"
      align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Ref.</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD width="14%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2010</B> </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff><B>Total Comprehensive Income under
      Canadian GAAP</B> </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=center>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="14%" align=right>&nbsp;150,271 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Change in accounting method for depreciation
    </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=center>(i) </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=right>(1,772</TD>
    <TD width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp;Reversal of impairment </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=center>(ii) </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="14%" align=right>(99</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Provision for environmental rehabilitation </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=center>(iii) </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=right>(1,843</TD>
    <TD width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp;Share-based compensation </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=center nowrap bgColor=#e6efff>(iv) </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="14%" align=right>1,149 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Deferred income tax </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=center>(v) </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="14%" align=right>280 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; &nbsp;Gain on contribution to joint venture </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD width="10%"
    align=center nowrap bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(vi) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="14%"
    align=right>3,044 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Total
      Comprehensive Income under IFRS</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=center>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="14%"
      align=right>&nbsp;151,030 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P align=justify><I>References for (b) and (c) </I></P>
<P style="MARGIN-LEFT: 5%" align=justify>i)&nbsp;&nbsp; Change in accounting
method for depreciation </P>
<P align=justify>On adoption of IFRS effective January 1, 2010, the Company
changed its depreciation accounting method with respect to certain components of
property, plant and equipment as management believes it more appropriately
reflects the use of the corresponding assets thereby resulting in more reliable
and relevant presentation. The impact of this change in accounting method has
been prospectively applied from January 1, 2010 as it is a change in
depreciation method and not a change in an accounting policy. Under IFRS, a
change in the method of depreciation is considered a change in estimate and is
applied prospectively. Under Canadian GAAP, a change in depreciation method
would have been considered a change in accounting policy and retrospectively
applied. </P>
<P align=justify>Mining equipment was previously depreciated using the
units-of-production method based on tons mined which resulted in variability in
the amount depreciated period-to-period. Mining equipment assets are usually
fully deployed in day-to-day activities and have a readily determinable useful
life. As such, management adopted a method to depreciate these assets using the
straight-line method over their estimated useful lives. </P>
<P align=justify>Buildings were previously depreciated using the declining
balance method which results in more depreciation being taken in the initial
years. Management views the utility of buildings to be relatively consistent
over the lives of the buildings and has adopted a method to depreciate these
assets using the straight-line method. </P>
<P style="MARGIN-LEFT: 5%" align=justify>ii)&nbsp; &nbsp;Reversal of impairment
</P>
<P align=justify>Under IFRS, the Company is required to reconsider whether
impairment losses recognized in prior periods no longer exist, or have decreased
on transition and thereafter on an annual basis. If such indicators exist, a new
recoverable amount should be calculated and all or part of the
impairment charge should be reversed to the extent the recoverable amount
exceeds carrying value. This is not permitted under Canadian GAAP.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_45></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify>Based on the Company&#146;s analysis, an adjustment of $4,574 has
been recorded on transition to IFRS to fully reverse an impairment loss
recognized for the Gibraltar mine in fiscal 2001, as the mine subsequently
restarted operations and is expected to continue to generate economic benefits
for the foreseeable future. The Company concluded that the historical
impairments recognized for Prosperity and Harmony should not be reversed.</P>
<P align=justify>As at December 31, 2010, no additional impairment reversals
were identified under IFRS; however, the transition adjustment had been reduced
by 25% to reflect the formation of the Joint Venture. The amounts recorded in
the table above include the incremental depreciation as a result of the
impairment reversal on transition date. </P>
<P style="MARGIN-LEFT: 5%" align=justify>iii)&nbsp; &nbsp;Provision for
environmental rehabilitation </P>
<P align=justify>The Company has re-measured its PER as of the transition date
and estimated the amount to be included in the cost of the related asset by
discounting the liability to the date at which the liability first arose. This
calculation was done using best estimates of the historical risk-adjusted
discount rates. Accumulated depreciation under IFRS was recalculated up to the
transition date.</P>
<P align=justify>Under Canadian GAAP, the Company reduced the amount of its PER
by expected cash inflows associated with future anticipated revenue-generating
activities. Under IFRS, these amounts are recognized as a separate asset when
recovery is virtually certain. The Company concluded that the conditions for
virtual certainty do not exist and have excluded these revenues from its
calculations under IFRS.</P>
<P align=justify>Accordingly, an adjustment was made to increase the asset by
$24,162, to increase the PER by $40,893 and to decrease deferred income taxes by
$5,814, for a total adjustment that decreased equity by $10,917 on the
transition date. </P>
<P align=justify>As at December 31, 2010, the adjustments were updated for
changes in discount rates and incremental depreciation. There were no other
changes in estimates between Canadian GAAP and IFRS. </P>
<P style="MARGIN-LEFT: 5%" align=justify>iv)&nbsp;&nbsp; Share-based
compensation </P>
<P align=justify>For the purpose of accounting for share-based payment
transactions, certain individuals previously classified as contractors under
Canadian GAAP are now classified as employees under IFRS, and the Company
records a lower expense each period, with an equal and offsetting adjustment to
contributed surplus. Additional adjustments were made as at December 31, 2010.
</P>
<P style="MARGIN-LEFT: 5%" align=justify>v)&nbsp; &nbsp;Income tax</P>
<P align=justify>Under IFRS, the Company has derecognized deferred tax
liabilities previously recognized on temporary differences arising on the
initial recognition of the Aley property and Oakmont net profit interest (where
the accounting basis of the asset acquired exceeded its tax basis) in a
transaction which was not a business combination and affected neither accounting
income nor taxable income. Accordingly, mineral property interests were reduced
by $1,955, intangible assets were reduced by $2,907 and deferred income tax
decreased by $3,975, with a decrease to equity of $887. </P>
<P align=justify>Under IFRS, the Company has reversed the deferred tax asset
previously recognized under Canadian GAAP related to the &#147;new mine allowance&#148;
for British Columbia mineral tax purposes. Accordingly, property, plant and
equipment and deferred income tax liability both increased by $6,786. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_46></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify>In addition, deferred taxes have been adjusted for the changes
to net book values arising as a result of the adjustments for first-time
adoption of IFRS as discussed above, resulting in an increase to equity of
$4,255. Additional adjustments were made as at December 31, 2010.</P>
<P style="MARGIN-LEFT: 5%" align=justify>vi)&nbsp;&nbsp; Gain on contribution to
joint venture </P>
<P align=justify>The gain on the contribution to joint venture has been
recalculated under IFRS to reflect adjustments to the carrying values of certain
assets and liabilities of the Gibraltar mine contributed to the joint venture,
as described in references (i), (ii), (iii) and (v).</P>
<P align=justify><I>(d) &nbsp;Reconciliation of Cash Flows </I></P>
<P align=justify>The IFRS transition adjustments noted above did not have an
impact on cash and equivalents. Cash interest paid is presented as a financing
activity, cash interest received is presented as an investing activity, and the
effect of foreign exchange rate changes on cash and equivalents has been
presented separately in the statements of cash flows under IFRS. Under Canadian
GAAP, all of these were included as operating activities. As a result of these
changes in classification under IFRS, cash flow from operating activities
increased by $4,266, cash flow from financing activities decreased by $3,118 and
cash flow from investing activities increased by $2,629, with the effect of the
foreign exchange decreasing cash by $3,777 for the year ended December 31, 2010
compared to Canadian GAAP. There is no net impact on cash and equivalents as a
result of this presentation change. </P>
<P align=justify><I>(e) &nbsp;Financial statement presentation changes </I></P>
<P align=justify>The transition to IFRS has resulted in numerous financial
statement presentation changes. The changes to the consolidated statement of
cash flows are outlined above. The following is a summary of the significant
changes to the consolidated statement of comprehensive income: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>Expenses on the statement of comprehensive income have been classified
  according to function. Accordingly, depreciation and stock-based compensation
  are no longer presented as a separate item on the statement of comprehensive
  income but are included in cost of sales and general and administrative
  expenses. </P>
  <LI>
  <P>Other operating expenses include items related to the operation of the
  business such as gains and losses (realized and unrealized) on copper
  derivative instruments and management fee income related to the joint venture.
  </P>
  <LI>
  <P>Finance expenses comprise interest expense on borrowings, unwinding of the
  discount on provisions, losses on the disposal of marketable securities,
  changes in the fair value of derivatives included in cash and equivalents and
  marketable securities, and impairment losses recognized on financial assets.
  </P>
  <LI>
  <P>Finance income comprises interest income on funds invested, gains on the
  disposal of marketable securities, and changes in the fair value of
  derivatives included in cash and equivalents and marketable securities.
  Interest income is recognized as it accrues in earnings, using the effective
  interest method. </P>
  <LI>
  <P>Foreign currency gains and losses are reported on a net basis in finance
  expense and/or finance income. </P></LI></UL>
<P align=justify>There have been no changes to the presentation of the balance
sheet as a result of IFRS.</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_47></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=3>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
  </TR>
</TABLE>
<P align=justify><B>28.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SUBSEQUENT EVENTS
</B></P>
<P align=justify>Effective February 3, 2012, the Company commenced a normal
course issuer bid for up to 10 million common shares of the Company. All shares
will be purchased on the open market through the facilities of the Toronto Stock
Exchange at the market price at the time of purchase. The Company&#146;s normal
course issuer bid will terminate on February 2, 2013 or earlier if the number of
shares sought in the issuer bid has been obtained. The Company reserves the
right to terminate the bid earlier at any time. Purchases under the normal
course issuer bid are subject to the restricted payment limitations in the
Company&#146;s senior notes indenture. </P>
<HR align=center color=black SIZE=5 width="100%" noShade>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.7
<SEQUENCE>8
<FILENAME>exhibit99-7.htm
<DESCRIPTION>AMENDED MANAGEMENT'S DISCUSSION AND ANALYSIS
<TEXT>
<HTML>
<HEAD>
   <TITLE>Taseko Mines Limited - Exhibit 99.7 - Filed by newsfilecorp.com</TITLE>
</HEAD>
<BODY style="font-size:10pt;">
<HR noshade align="center" width=100% size=3 color="black">
<A name=page_1></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis
  </FONT></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD></TR></TABLE>
<P align=justify>This management&#146;s discussion and analysis ("MD&amp;A") is
intended to help the reader understand Taseko Mines Limited (&#147;Taseko&#148;, &#147;we&#148;,
&#147;our&#148; or the &#147;Company&#148;), our operations, financial performance, and current and
future business environment. This MD&amp;A is intended to supplement and
complement the consolidated financial statements and notes thereto, prepared in
accordance with IFRS for the year ended December 31, 2011 (collectively, the
&#147;Financial Statements&#148;). You are encouraged to review the Financial Statements
in conjunction with your review of this MD&amp;A and the most recent Form
40-F/Annual Information Form on file with the US Securities and Exchange
Commission (&#147;SEC&#148;) and Canadian provincial securities regulatory authorities.
</P>
<P align=justify>This MD&amp;A is prepared as of March 9, 2012. All dollar
figures stated herein are expressed in Canadian dollars, unless otherwise
specified. </P>
<P align=justify><B>Cautionary Statement on Forward-Looking Information </B></P>
<P align=justify>This discussion includes certain statements that may be deemed
"forward-looking statements". All statements in this discussion, other than
statements of historical facts, that address future production, reserve
potential, exploration drilling, exploitation activities, and events or
developments that the Company expects are forward-looking statements. Although
we believe the expectations expressed in such forward-looking statements are
based on reasonable assumptions, such statements are not guarantees of future
performance and actual results or developments may differ materially from those
in the forward-looking statements. Factors that could cause actual results to
differ materially from those in forward-looking statements include market
prices, exploitation and exploration successes, continued availability of
capital and financing and general economic, market or business conditions.
Investors are cautioned that any such statements are not guarantees of future
performance and actual results or developments may differ materially from those
projected in the forward-looking statements. All of the forward-looking
statements made in this MD&amp;A are qualified by these cautionary statements.
We disclaim any intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or otherwise,
except to the extent required by applicable law. Further information concerning
risks and uncertainties associated with these forward-looking statements and our
business may be found in our most recent Form 40-F/Annual Information Form on
file with the SEC and Canadian provincial securities regulatory authorities.</P>
<P align=center>1 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_2></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify><B>CONTENTS </B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD bgColor=#eeeeee align=left><A
      href="#page_3"><B>FINANCIAL
      HIGHLIGHTS</B> </A></TD>
    <TD bgColor=#eeeeee width="8%" align=right ><A
      href="#page_3"><B>3</B>
      </A></TD></TR>
  <TR>
    <TD  align=left>&nbsp;</TD>
    <TD  width="8%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#eeeeee align=left><A
      href="#page_3"><B>RECENT
      DEVELOPMENTS AND MARKET REVIEW</B> </A></TD>
    <TD bgColor=#eeeeee width="8%" align=right ><A
      href="#page_3"><B>3</B>
      </A></TD></TR>
  <TR>
    <TD  align=left>&nbsp;</TD>
    <TD  width="8%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#eeeeee align=left><A
      href="#page_6"><B>FINANCIAL
      PERFORMANCE</B> </A></TD>
    <TD bgColor=#eeeeee width="8%" align=right ><A
      href="#page_6"><B>6</B>
      </A></TD></TR>
  <TR>
    <TD  align=left>&nbsp;</TD>
    <TD  width="8%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#eeeeee align=left><A
      href="#page_11"><B>REVIEW
      OF OPERATIONS AND PROJECTS</B> </A></TD>
    <TD bgColor=#eeeeee width="8%" align=right ><A
      href="#page_11"><B>11</B>
      </A></TD></TR>
  <TR>
    <TD  align=left>&nbsp;</TD>
    <TD  width="8%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#eeeeee align=left><A
      href="#page_15"><B>FINANCIAL
      CONDITION REVIEW</B> </A></TD>
    <TD bgColor=#eeeeee width="8%" align=right ><A
      href="#page_15"><B>15</B>
      </A></TD></TR>
  <TR>
    <TD  align=left>&nbsp;</TD>
    <TD  width="8%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#eeeeee align=left><A
      href="#page_18"><B>SELECTED
      ANNUAL INFORMATION</B> </A></TD>
    <TD bgColor=#eeeeee width="8%" align=right ><A
      href="#page_18"><B>18</B>
      </A></TD></TR>
  <TR>
    <TD  align=left>&nbsp;</TD>
    <TD  width="8%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#eeeeee align=left><A
      href="#page_19"><B>FOURTH
      QUARTER RESULTS</B> </A></TD>
    <TD bgColor=#eeeeee width="8%" align=right ><A
      href="#page_19"><B>19</B>
      </A></TD></TR>
  <TR>
    <TD  align=left>&nbsp;</TD>
    <TD  width="8%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#eeeeee align=left><A
      href="#page_25"><B>SUMMARY
      OF QUARTERLY RESULTS</B> </A></TD>
    <TD bgColor=#eeeeee width="8%" align=right ><A
      href="#page_25"><B>25</B>
      </A></TD></TR>
  <TR>
    <TD  align=left>&nbsp;</TD>
    <TD  width="8%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#eeeeee align=left><A
      href="#page_26"><B>IFRS</B>
      </A></TD>
    <TD bgColor=#eeeeee width="8%" align=right ><A
      href="#page_26"><B>26</B>
      </A></TD></TR>
  <TR>
    <TD  align=left>&nbsp;</TD>
    <TD  width="8%" align=right >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#eeeeee align=left><A
      href="#page_28"><B>CRITICAL
      ACCOUNTING POLICIES AND ESTIMATES</B> </A></TD>
    <TD bgColor=#eeeeee width="8%" align=right ><A
      href="#page_28"><B>28</B>
      </A></TD></TR>
  <TR>
    <TD  align=left>&nbsp;</TD>
    <TD  width="8%" align=right >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#eeeeee align=left><A
      href="#page_29"><B>INTERNAL
      CONTROLS OVER FINANCIAL REPORTING AND DISCLOSURE CONTROLS AND</B>
      <B>PROCEDURES</B> </A></TD>
    <TD bgColor=#eeeeee  width="8%" align=right ><A
      href="#page_29"><B>29</B>
      </A></TD></TR>
  <TR>
    <TD  align=left>&nbsp;</TD>
    <TD  width="8%" align=right >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#eeeeee align=left><A
      href="#page_29"><B>RELATED
      PARTY TRANSACTIONS</B> </A></TD>
    <TD bgColor=#eeeeee width="8%" align=right ><A
      href="#page_29"><B>29</B>
      </A></TD></TR>
  <TR>
    <TD  align=left>&nbsp;</TD>
    <TD  width="8%" align=right >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#eeeeee align=left><A
      href="#page_30"><B>NON-GAAP
      PERFORMANCE MEASURES</B> </A></TD>
    <TD bgColor=#eeeeee width="8%" align=right ><A
      href="#page_30"><B>30</B>
      </A></TD></TR></TABLE>
<P align=center>2 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_3></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify><B>FINANCIAL HIGHLIGHTS </B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="4" align=right style="BORDER-TOP: #000000 1px solid"><B>Year
      ended December 31,</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands,
      except per share amounts) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Revenues </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;251,866 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;278,460 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Net earnings </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>26,974 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>149,357 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;&nbsp; Per share (&#147;EPS&#148;) <SUP>1</SUP>
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.14 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.80 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Adjusted net earnings <SUP>2</SUP> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>17,458 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>51,662 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;&nbsp; Per share (&#147;adjusted EPS&#148;)
      <SUP>1</SUP> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.09 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.28 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>EBITDA <SUP>2</SUP> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>70,681 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>198,443 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Adjusted EBITDA <SUP>2</SUP> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>57,817 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>94,284 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Capital expenditures
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>63,915 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>55,303 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#ffffff align=left>&nbsp; </TD>
    <TD bgColor=#ffffff  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=right bgColor=#ffffff><B>As at December 31,</B> </TD>
    <TD bgColor=#ffffff  width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Cash and equivalents </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;277,792 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;211,793 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Dual currency deposits within other financial assets </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>40,602 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Non-cash working capital </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>98,117 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>3,878 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Net (cash) debt </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(86,139</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(173,460</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Equity </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>496,817 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>460,742 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify><SUP>1</SUP> Calculated using weighted average number of shares
outstanding under the basic method.<BR><SUP>2</SUP> Adjusted net earnings,
adjusted EPS, EBITDA and adjusted EBITDA are non-GAAP financial performance
measures with no standard definition under IFRS. See pages 30-33 of this
MD&amp;A. </P>
<P align=justify>As a result of the formation of a joint venture on March 31,
2010, the full-year comparatives for 2010 throughout this MD&amp;A include 100%
of the Gibraltar mine&#146;s results through to March 31, 2010 and 75% of the
Gibraltar mine&#146;s results thereafter. </P>
<P align=justify><B>RECENT DEVELOPMENTS AND MARKET REVIEW </B></P>
<P align=justify><I>New Prosperity project </I></P>
<P align=justify>The Canadian Environmental Assessment Agency (CEAA) has
completed the terms of reference and guidelines for the Company&#146;s New Prosperity
project. On February 28, 2012 a work program commenced on site for the purpose
of obtaining information required for the federal environmental assessment.</P>
<P align=justify><I>Aley project </I></P>
<P align=justify>The Company is proceeding with its $20-million program for its
Aley niobium project north of Mackenzie, British Columbia. The bulk of the work,
scheduled to take place this summer, has three primary objectives: 1) further
define the ore body; 2) undertake environmental baseline studies and 3) inform
the project feasibility and advance preliminary engineering and mine site
planning. To date, all exploration activities have been through helicopter
supported programs. In order to advance this year's work and support future
development, a road clearing contract has been awarded to a local First Nations
construction firm and work has started on clearing a 12-km route into the
project area.</P>
<P align=center>3 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_4></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify><I>Normal course issuer bid </I></P>
<P align=justify>Effective February 3, 2012, the Company commenced a normal
course issuer bid for up to 10 million common shares of the Company. All shares
will be purchased on the open market through the facilities of the Toronto Stock
Exchange at the market price at the time of purchase. The Company&#146;s normal
course issuer bid will terminate on February 2, 2013 or earlier if the number of
shares sought in the issuer bid has been obtained. The Company reserves the
right to terminate the bid earlier at any time. Purchases under the normal
course issuer bid are subject to the restricted payment limitations in the
Company&#146;s senior notes indenture. </P>
<P align=justify><I>Market review </I></P>
<P align=justify><I>Copper </I></P>
<P align=justify>The market price for copper is a primary driver of our
profitability and our ability to generate operating cash flow. Copper markets
demonstrated strong pricing during 2011 with significant volatility. This
volatility was evidenced by record average prices for 2011 overall combined with
significant declines in the last four months of 2011.</P>
<P align=justify>China and other emerging economies provided strong demand for
copper in 2011 which supported copper prices through much of the year. Concerns
regarding European debt and a slowing economy in the United States and elsewhere
provided the impetus for significant volatility in financial and commodity
markets particularly in the latter part of 2011. While copper prices have
recovered to date in 2012, substantial risk in the form of volatility in
financial and commodity markets will likely continue. This volatility can cause
rapid declines in our copper prices which can have a significant effect on our
profitability. </P>
<P align=justify>As a means to mitigate the potential impact of this copper
price volatility on our future profitability and operating cash flow, we have
purchased copper puts for approximately 90% of our share of 2012 production
creating a US$3.50 floor for this period. These puts were primarily paid for by
selling calls at an average price of US$5.08 per pound.</P>
<P align=justify>The benefits from our hedging strategy became apparent during
2011 with unrealized gains of $22.9 million on copper derivative instruments,
offset partially by realized losses of $9.9 million. The quarterly
mark-to-market of our unrealized hedge position can impact our earnings
significantly due to this non-cash adjustment. We intend to maintain our
strategy of hedging our share of copper production as a means of future
operating margin protection. </P>
<P align=justify>Under our two copper concentrate sales agreements, a portion of
our copper concentrate sales had not yet settled at year end. At December 31,
2011, Gibraltar (100%) had 19.9 million pounds of copper in concentrate not yet
settled. Of this amount, pricing was fixed on 9.3 million pounds and the
residual 10.6 million pounds was subject to final pricing. We are able to fix
copper prices under one of our copper concentrate sales agreements based on
accumulating threshold tonnage levels in the Vancouver warehouse. This
contractual feature along with our hedging program serves to reduce our exposure
to copper price volatility. The copper subject to final pricing is valued at
year end using the copper price forward curve at that point in time.</P>
<P align=center>4 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_5></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify><B>Figure 1: Average monthly spot copper prices (USD per pound)
</B></P>
<IMG src="figure1.jpg" width="389" height="249" border=0> <BR>
<P align=justify><I>Foreign exchange rates </I></P>
<P align=justify><B>Figure 2: Average monthly USD exchange rates (CAD/USD)
</B></P>
<IMG src="figure2.jpg" width="392" height="242" border=0> <BR>
<P align=justify>The results of our operations are
affected by the Canadian dollar/US dollar exchange rate.
Our product sales are denominated in US dollars while the
majority of our operating expenses are denominated in
Canadian dollars. Fluctuations in the Canadian dollar/US
dollar exchange rate can have a significant effect on
operating results; however, changes in this rate have
historically been correlated with offsetting changes in
copper prices which have mitigated this effect.
Fluctuations in the Canadian dollar/US dollar exchange rate
will also have an effect on the net operating cash costs of
production as reported in US$ per pound. </P>
<P align=center>5 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_6></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify><B>FINANCIAL PERFORMANCE</B></P>
<P align=justify><I>Earnings </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="4" align=center style="BORDER-TOP: #000000 1px solid"><B>Year
      ended</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="12%" align=center>&nbsp; </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="12%" align=center>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right><B>%
      Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Net earnings </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;26,974 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;149,357 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;(122,383</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(10%</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Unrealized gain on derivatives, net of tax </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(16,864</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(6,347</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(10,517</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>166% </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Gain on sale of shares </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(6,443</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(4,087</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(2,356</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>58% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Changes in fair value of financial instruments </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>307 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>25 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>282 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>&gt;999% </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Foreign currency translation losses </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>5,907 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>4,801 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1,106</TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>23%</TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Loss on extinguishment of debt </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2,136 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(2,136</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(100%</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Loss/(gain) on contribution to joint
      venture, net of tax </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,930 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(63,623</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>66,553 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(105%</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Non-recurring consulting expenses, net of tax </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4,647 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4,647 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>100% </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Non-recurring tax adjustments </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(30,600</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>30,600 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>100% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Adjusted net earnings
      <SUP>1</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;17,458 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;51,662 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;(34,204</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(66%</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
  </TR>
</TABLE>
<P align=justify><SUP>1</SUP> Adjusted net earnings is non-GAAP financial
performance measures with no standard definition under IFRS. See pages 30-33 of
this MD&amp;A. </P>
<P align=justify>The decrease in 2011 net earnings compared to 2010 is primarily
driven by the recognition of a number of non-recurring items in 2010, including
a $63.6 -million after-tax gain realized on the formation of the Gibraltar joint
venture during the first quarter of 2010 and $30.6 million in reversals of
historical tax reserves and interest. </P>
<P align=justify>As can be seen in the table above, the unrealized gains/losses
on derivatives can vary significantly each period and have a significant impact
on earnings. These swings are a result of the derivatives comprising our hedge
program at the balance sheet date, and marking-to-market this copper hedge
position using the forward copper price at the balance-sheet date. The hedge
position at the end of 2011 was comprised of collars hedging 90% of our share of
Gibraltar&#146;s estimated 2012 copper production, whereas the hedge position at the
end of 2010 was comprised of put options on our share of Gibraltar&#146;s estimated
copper production for the first six months of 2011.</P>
<P align=justify>We remove the foreign currency translation impact and the
unrealized gains on the derivative instruments from our adjusted net earnings
measure as they are not indicative of a realized economic gain/loss or the
underlying performance of the business in the period. The realized gains/losses
on these monetary items and derivative positions are reflected in net earnings
in the period in which the position is settled. </P>
<P align=justify>The resultant adjusted net earnings is a non-GAAP performance
measure that we believe is more representative of ongoing operations.
Contributing to the $34-million decrease in adjusted net earnings year over year
are the following changes: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>$27-million decrease in revenues associated with lower sales volumes;
  <LI>$8-million increase in cost of sales;
  <LI>$2-million impairment of plant and equipment;
  <LI>$9-million increase in interest expense associated with the 2011 senior
  notes issuance;
  <LI>$3-million increase in foreign exchange losses;
  <LI>offset by a $4-million increase in finance income; and
  <LI>$12 million for the associated tax effects of these items. </LI>
</UL>
<P align=justify>Each of the above-noted changes is examined in further detail
in the sections below. </P>
<P align=center>6 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_7></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify><I>Revenues </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="4" align=center style="BORDER-TOP: #000000 1px solid"><B>Year
      ended</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right><B>%
      Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Copper concentrate </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;227,140 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;258,932 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;(31,792</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(12%</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Copper cathode </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>6,936
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>3,987
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2,949
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>74% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; Total copper sales </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;234,076 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;262,919 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;(28,843</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(11%</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Molybdenum concentrate </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>14,317 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>12,656 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,661 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>13% </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Silver contained in copper concentrate </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>3,473 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>2,885 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>588 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>20% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;251,866 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;278,460 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;(26,594</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(10%</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>(thousands of pounds, unless otherwise noted) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Copper concentrate </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>58,913 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>69,706 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(10,793</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(15%</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Copper cathode </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>1,863 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>1,133 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>730 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>64% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; Total copper sales </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>60,776 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>70,839 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(10,063</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(14%</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Average realized copper price (US$ per pound)
      <SUP>1</SUP> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>3.89 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>3.60 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.29 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>8% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Molybdenum concentrate
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>974 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>746 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>228 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>30% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify><SUP>1</SUP> The average exchange rate used for 2011 was
CAD/USD $0.9893 (2010: $1.03) . </P>
<P align=justify>Copper revenues are down 11% primarily due to a 14% reduction
in our share of the Gibraltar mine&#146;s sales volumes. Contributing to this
decrease in sales volumes is the 2010 joint venture transaction on March 31,
2010. Copper revenues were positively impacted by an increase in average
realized copper prices year-over-year. Copper averaged US$4.00 per pound in 2011
and US$3.42 per pound in 2010 based on London Metals Exchange (LME) prices for
these periods. </P>
<P align=justify>Molybdenum revenues have increased 13% benefitting from a 30%
increase in sales volumes. The impact of the increased sales volumes has been
partially offset by declining molybdenum prices over the course of 2011.</P>
<P align=justify><I>Cost of sales </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="4" align=center style="BORDER-TOP: #000000 1px solid"><B>Year
      ended</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right><B>%
      Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Direct mining costs </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;125,536 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;120,810 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;4,726 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>4% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Depreciation </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>12,145 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>12,655 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(510</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(4%</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Treatment and refining costs </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>11,632 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>11,563 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>69 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Transportation costs </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>13,108 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>16,275 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(3,167</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(19%</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Changes in inventories of finished goods and WIP </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>3,144 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(3,544</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>6,688 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(189%</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;165,565 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;157,759 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;7,806 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>5% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Copper production (thousands of pounds) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>62,165 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>75,050 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(12,885</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(17%</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Copper sales (thousands of pounds) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>60,776 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>70,839 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(10,063</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(14%</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Direct mining costs per pound produced (per
      pound) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>2.02 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>1.61 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.41 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>25% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Depreciation per pound produced (per pound) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>0.20 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>0.17 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>0.03 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>18% </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Treatment and refining costs per pound sold
      (per pound) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.19 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.16 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.03 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>19% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Transportation costs
      per pound sold (per pound) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>0.22
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>0.23
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(0.01</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
align=right>(4%</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
  </TR>
</TABLE>
<P align=center>7 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_8></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify>The year-over-year increase in direct mining costs reflects a
10% increase in tons mined due, in part, to a planned increase in stripping
activities during 2011. The strip ratio increased to 2.8 during 2011 from 2.5 in
2010. In addition, we have experienced some inflationary pressures in direct
mining costs including higher labour, repairs and maintenance, diesel, grinding
media and explosives costs. The increase in direct mining costs on a &#145;per-unit
of production&#146; basis is also affected by the decrease in grade and recovery
year-over-year. (See <I>Operating Statistics</I> on page 11 for additional
details). </P>
<P align=justify>Depreciation expenses have remained relatively constant
year-over-year. Treatment and refining costs have increased on a &#145;per-unit of
sales&#146; basis, consistent with increases observed in the market in 2011, compared
to 2010.</P>
<P align=justify><I>Other expenses and income </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="4" align=center style="BORDER-TOP: #000000 1px solid"><B>Year
      ended</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right><B>%
      Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>General and administrative </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;21,100 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;19,057 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;2,043 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>11% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Exploration and evaluation
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;10,411 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;10,090 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;321 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>3% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Other operating expenses (income): </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Realized loss on copper derivatives </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;9,910 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;12,200 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;(2,290</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(19%</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Unrealized gain on copper derivatives
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(22,944</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(8,877</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(14,067</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>158% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Consulting expenses </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>6,322 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>6,322 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>100% </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Impairment of plant and equipment </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,377 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,377 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>100% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Management fee
      income </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(840</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(648</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(192</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>30% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;(5,175</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;2,675 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;(7,850</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(293%</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Loss (gain) on contribution
      of joint venture </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;3,987 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;(98,157</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>102,144 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(104%</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
  </TR>
</TABLE>
<P align=justify>The increase in general and administrative expenses in 2011 is
due to higher compensation costs primarily as a result of headcount increases in
our engineering group, as well as increased consulting costs related to our
expansion projects in the period.</P>
<P align=justify>Over 80% of the exploration and evaluation expenses during 2011
were attributable to work performed at the Aley project, with the balance
primarily spent on New Prosperity. In 2010, over 85% of the exploration and
evaluation expenses were incurred on New Prosperity with the remainder primarily
spent on Aley.</P>
<P align=justify>The $9.9 -million loss on copper derivatives reflects the net
cost of our copper hedging program for 2011. We purchased a series of put
options for a total of 69.4 million pounds of copper, and the premium paid on
these put options was approximately US$0.20 per pound. With the decline in spot
copper prices, beginning in the third quarter, some of these options expired
in-the-money. We received proceeds of approximately $3 million on these options.
</P>
<P align=justify>During 2011, the Company purchased put options for 68.8 million
pounds of 2012 copper production. The puts were partially financed by selling
calls for an equivalent amount of copper, for a net cost of US$0.10 per pound.
These costs will be realized over the course of 2012. However, these outstanding
copper derivatives are marked-to-market each period end to fair value with any
changes in fair value recognized in income as unrealized gains or losses. For
2011, we recognized $22.9 million in unrealized gains as a result of the decline
in copper prices from the time we entered into the contracts in the second
quarter 2011 through to the end of the year. </P>
<P align=center>8 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_9></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify>In early July we engaged consultants to work with the Gibraltar
management team over a 23-week period to design and execute programs directed at
improvements in operational performance. The total cost of this engagement
comprises the consulting expenses of $6.3 million. The medium and long-term
benefits are expected to provide a significant return on the program, with
initial operating impacts expected during the current fiscal year. </P>
<P align=justify>Certain plant and equipment were deemed redundant upon
completion of the SAG direct feed project during 2011, which resulted in an
impairment charge. We plan to dismantle the equipment and attempt to sell for
scrap. No value is currently ascribed to the scrap material. We also identified
other assets that will no longer be utilized under our current life-of-mine plan
and recognized an impairment charge on these assets as well. The total
impairment charges for 2011 were $2.4 million. There were no impairments
identified in 2010. </P>
<P align=justify>Under the terms of the joint venture operating agreement, the
Gibraltar joint venture pays the Company a management fee for services rendered
as operator of the Gibraltar mine. The management fees are directly related to
Gibraltar mine&#146;s total revenues. The increase in the 2011 management fees earned
reflects a full year of service by the Company as operator of the mine versus
nine months in 2010. </P>
<P align=justify>On March 31, 2010, we entered into an agreement with Cariboo
Copper Corp. (Cariboo) whereby we contributed certain assets and liabilities of
the Gibraltar mine into an unincorporated joint venture and Cariboo paid the
Company $186.8 million to acquire a 25% interest in the joint venture. We
recognized a gain on contribution to the joint venture of $98.2 million. During
2011, the construction of the SAG direct feed system was completed. Under the
terms of the agreement with Cariboo, the Company assumed 100% of the capital
costs in excess of the capital budget for the SAG direct feed system in place at
the time of the joint venture formation. The Company recognized a loss on
contribution to the joint venture of $4.0 million during 2011 as a result of
funding Cariboo&#146;s portion of the SAG direct feed system project costs above the
2010 budgeted amount.</P>
<P align=justify><I>Finance expenses </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="4" align=center style="BORDER-TOP: #000000 1px solid"><B>Year
      ended</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right><B>%
      Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Interest expense </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;13,957 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;4,542 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;9,415 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>207% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Accretion on PER </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2,046 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,936 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>110 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>6% </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Loss on extinguishment of debt and royalty
      obligations </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,136 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(2,136</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(100%</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Foreign exchange loss
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>6,489
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2,133
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>4,356
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>204%
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;22,492 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;10,747 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;11,745 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>109% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify>Interest expense has increased primarily as a result of the
issuance of the US$200 million in senior notes in April 2011, bearing interest
at 7.75% . The remainder of the interest expense is related to secured equipment
loans and capital leases, which has also increased slightly year over year. </P>
<P align=justify>Foreign exchange losses arise as a result of the significant
transactions we undertake in US dollars. All of our revenue transactions are
denominated in US dollars. We incur certain capital and operating expenditures
in US dollars, as well as make interest payments on our senior notes in US
dollars. As a result of movements in exchange rates between the date we
initially record our transaction and the date payment is made/received, we incur
foreign exchange gains and losses. In addition, we have significant monetary
assets and liabilities denominated in US dollars that are translated to Canadian
dollars at each balance sheet date, resulting in a foreign exchange gain or
loss. These monetary assets and liabilities include cash, accounts receivable
and the senior notes.</P>
<P align=center>9 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_10></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify><I>Finance income </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="4" align=center style="BORDER-TOP: #000000 1px solid"><B>Year
      ended</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right><B>%
      Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Interest income </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;6,859 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;14,933 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;(8,074</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(54%</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Gain on sale of shares </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>5,995 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4,087 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,908 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>47% </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Income realized on dual currency deposits </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>4,275 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>577 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>3,698 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>641% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Change in fair value of financial instruments </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(307</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(25</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(282</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>&gt;999% </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Dividend income </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>448 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>448 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>100% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;17,270 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;19,572 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;(2,302</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(12%</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
  </TR>
</TABLE>
<P align=justify>Interest income is primarily comprised of income earned on the
promissory note and reclamation deposits. In addition, interest income for 2010
includes a recovery of $8.1 million in interest expense associated with reversal
of historical tax reserves. After adjusting for this non-recurring item in 2010,
interest income is comparable year over year.</P>
<P align=justify>Income realized on dual currency deposits increased
significantly in 2011 as a result of the investment of a portion of the proceeds
on the senior notes issuance into these instruments.</P>
<P align=justify><I>Income tax </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="4" align=center style="BORDER-TOP: #000000 1px solid"><B>Year
      ended</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right><B>%
      Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Current expense </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;6,002 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;4,106 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;1,896 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>46% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Deferred expense </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>17,780 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>42,398 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>(24,618</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(58%</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;23,782 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;46,504 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;(22,722</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(49%</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Effective tax rate
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>46.9%
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>23.7%
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Canadian statutory rate </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>26.5% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>28.5% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify>The overall income tax expense is lower in 2011 when compared
to 2010, as the 2010 income tax expense took into account the proceeds received
from the joint venture transaction, which reduced our income tax pools,
resulting in higher deferred taxes. Current cash taxes were also higher in 2010
than they were 2011 as a result of the joint venture transaction. </P>
<P align=justify>The effective tax rate for 2011 is higher than the statutory
rate primarily due to the mineral tax, permanent differences and unrecognized
tax benefits. Certain items that are deductible for income tax purposes are not
deductible for BC Mineral tax purposes which had the effect of increasing the
effective tax rate by 15%. In addition, permanent differences, such as
non-deductible share-based compensation, accounted for 4% of the difference. In
addition, there were unrecognized tax benefits related to unrealized foreign
exchange on debt, which had the effect of increasing the effective tax rate by
3%. When these differences are applied to the net income year-to-date, they
impact the effective tax rate significantly. Other items including the impact of
the reduction of corporate tax rates created minor impacts on the effective tax
rate. </P>
<P align=justify>The effective tax rate for 2010 is lower than the statutory
rate. Permanent differences related to non-deductible share-based compensation,
non-taxable gains on the sale of securities and non-deductible interest had the
effect of reducing the effective tax rate by 10%. This was partially offset by
the impact of the BC Mineral tax which had </P>
<P align=center>10 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_11></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify>the effect of increasing the effective tax rate by 7%. In
addition, there were adjustments for future tax rate differences. </P>
<P align=justify><B>REVIEW OF OPERATIONS AND PROJECTS </B></P>
<P align=justify><I>Gibraltar mine </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="4"
      align=center style="BORDER-TOP: #000000 1px solid"><B>Three months ended</B>
    </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=center>&nbsp;</TD>
    <TD colspan="4"
      align=center style="BORDER-TOP: #000000 1px solid"><B>Twelve months ended</B>
    </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=center>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>OPERATING STATISTICS (100% BASIS)</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Tons mined (millions) </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>15.4 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>15.6 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>57.5 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>52.3 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Tons milled (millions) </TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>4.3 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>3.9 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>15.2 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>15.0 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Stripping ratio </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>2.7 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>2.9 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>2.8 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>2.5 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Copper </TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp;Grade (%) </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>0.292 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>0.333 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>0.304 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>0.338 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Recovery (%) </TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>86.5 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>89.1 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>87.7 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>89.2 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp;Production (million pounds) </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>21.8 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>22.9 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>80.8 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>90.5 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Sales (million pounds) </TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>19.7 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>32.7 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>78.6 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>85.3 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Copper cathode </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Production (million pounds) </TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>0.5 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>0.5 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>2.1 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>1.8 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp;Sales (million pounds) </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>0.9 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>0.9 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>2.5 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>1.5 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Molybdenum </TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp;Grade (%) </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>0.012 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>0.012 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>0.012 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>0.012 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Recovery (%) </TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>38.8 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>29.8 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>36.7 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>25.5 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp;Production (thousand pounds) </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>388 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>276 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>1,331 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>941 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Sales (thousand pounds) </TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>358 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>261 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>1,298 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>924 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Per unit data <SUP>1,4</SUP> </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Operating cash costs <SUP>2 </SUP>(US$ per pound)
    </TD>
    <TD vAlign=bottom  width="1%" align=left>$</TD>
    <TD vAlign=bottom width="12%" align=right>1.91 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>$</TD>
    <TD vAlign=bottom width="12%" align=right>1.70 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>$</TD>
    <TD vAlign=bottom width="12%" align=right>2.04 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>$</TD>
    <TD vAlign=bottom width="12%" align=right>1.56 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; &nbsp;By-product credits <SUP>3 </SUP>(US$ per pound)
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>($0.25</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>($0.26</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>($0.29</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>($0.20</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Net operating cash
      costs of production <SUP>1<BR>
      &nbsp;&nbsp; </SUP>&nbsp;(US$ per pound) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right>1.66 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right>1.44 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right>1.75 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right>1.36 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify><SUP>1</SUP> Operating cash costs and net operating cash costs
of production are non-GAAP financial performance measures with no standard
definition under IFRS. See pages 30-33 of the Company&#146;s MD&amp;A.
<BR><SUP>2</SUP> Operating cash costs are comprised of direct mining costs which
include personnel costs, mine site general &amp; administrative costs,
non-capitalized stripping costs, maintenance &amp; repair costs, operating
supplies and external services. Non-cash costs, such as share-based compensation
and depreciation, have been excluded. <BR><SUP>3</SUP> By-product credits are
calculated based on actual sales of molybdenum and silver for the period,
divided by the total pounds of copper produced during the
period.<BR><SUP>4</SUP> Per unit data may not sum due to rounding. </P>
<P align=center>11 </P>
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    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify><I>Full-year results </I></P>
<P align=justify>The Gibraltar mine&#146;s copper production in 2011 was 82.9
  million pounds, down 10% compared to the prior year production of 92.3 million
  pounds mainly due to lower head grade. Copper production in 2011 was also hampered
  by harsh winter conditions, tie-in of the SAG direct feed system, and the reline
  of the west rougher flotation bank and failure of the feed-end trunnion on Ball
  Mill #1.</P>
<P align=justify>Molybdenum production during 2011 was 1,331 thousand pounds,
  up 41% compared to 2010, also attributable to a significant improvement in molybdenum
  recovery as a result of operational and technical improvements to the molybdenum
  separation circuit. </P>
<P align=justify><B>Figure 3: Net operating cash costs of
production</B><B><SUP>1,2 </SUP></B><B>per pound <BR>(2010 compared to 2011)
</B></P>
<IMG src="figure3.jpg" width="398" height="330" border=0> <BR>
<P align=justify><SUP>1</SUP> Net operating cash costs of production is a non-GAAP
  financial performance measure with no standard definition under IFRS. See pages
  30-33 of the Company&#146;s MD&amp;A. <BR>
  <SUP>2 </SUP>Per unit cash costs of production may not sum due to rounding.</P>
<P align=justify>In 2011, net operating cash costs per pound of copper produced
  averaged US$1.75, a 29% increase over the US$1.36 averaged during the prior-year.
  Net operating cash costs were adversely impacted in 2011 by a 10% reduction
  in copper production, the strengthening of the Canadian dollar compared to the
  US dollar, and increased direct mining costs including higher labour, repairs
  and maintenance, diesel, electricity, grinding media and explosives costs. These
  cost increases were mitigated by a 38% increase in by-product credits to US$0.29
  per pound of copper produced during 2011.</P>
<P align=justify>The tie-in of the SAG direct feed system was completed in May
  2011 which eliminated the secondary crusher and fine ore delivery system bottleneck.
  The tie-in has allowed Gibraltar to move towards optimum mill throughput rates
  and mitigated throughput issues experienced historically in the winter months.</P>
<P align=center>12 </P>
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    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify>In early July we engaged consultants to work with the Gibraltar
  management team over a 23-week period to design and execute programs directed
  at improvements in operational performance. The work with the consultants ended
  in December 2011.</P>
<P align=justify><I>Fourth-quarter results </I></P>
<P align=justify>The Gibraltar mine&#146;s fourth quarter 2011 copper production
  was 22.3 million pounds, a 5% decrease from the 23.4 million pounds produced
  in the fourth quarter 2010 primarily due to lower head grade. Mill optimization
  efforts continue with average mill throughput of 52,500 tons per operating day
  being realized in the quarter. Mill availability was lower than expected in
  the quarter at 89% due to additional downtime for mill re-lines, screen deck
  maintenance, and an annual planned electrical outage. Mill throughput efforts
  have continued with further gains yet to be realized from &#147;mine to mill&#148;
  optimization and improvements in mill availability. </P>
<P align=justify>Molybdenum production during fourth quarter 2011 was 388 thousand
  pounds, up 40% compared to the prioryear quarter, largely due to a 30% increase
  in molybdenum recovery.</P>
<P align=justify><B>Figure 4: Net operating cash costs of
production</B><B><SUP>1,2</SUP></B><B> per pound <BR>
  (fourth quarter 2010 compared to fourth quarter 2011) </B></P>
<IMG src="figure4.jpg" width="388" height="354" border=0> <BR>
<P align=justify><SUP>1</SUP> Net operating cash costs of production is a non-GAAP
  financial performance measure with no standard definition under IFRS. See pages
  30-33 of the Company&#146;s MD&amp;A. <BR>
  <SUP>2</SUP> Per unit cash costs of production may not sum due to rounding.</P>
<P align=justify>In the fourth quarter 2011, total net operating cash costs per
  pound of copper produced averaged US$1.66, a 15% increase over the US$1.44 averaged
  during fourth quarter 2010. Net operating cash costs per unit of production
  were adversely impacted in fourth quarter 2011 mainly due to lower copper production.
  Costs were also impacted with increases in labour, maintenance and consumable
  costs.</P>
<P align=center>13 </P>
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    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify><I>Gibraltar Development Plan (GDP3) </I></P>
<P align=justify>The total GDP3 Project capital cost is estimated at $325
million and, to date, commitments have been made for approximately 70% of the
project capital requirements. Engineering Procurement and Construction
Management (EPCM) activities on the $237-million infrastructure portion of the
project continue to progress as planned. Major equipment purchases for the
concentrator, molybdenum plant and infrastructure are complete and detailed
engineering activities for the project structural, mechanical and electrical
systems continue. Orders and contracts for over 60% of the infrastructure
portion of the project budget have been placed and, as reported previously, all
of the major mining equipment has been purchased. Shipment of long lead items
including transformers and grinding mill components commenced in February
2012.</P>
<P align=justify>Construction activities are proceeding as planned. The #2
Concentrator building foundation and the grinding mill foundations have been
completed as has the erection of the Molybdenum Plant building. Erection of the
#2 Concentrator building is well underway as are civil concrete works for the
mill feed conveyors. Structural and mechanical installation of the conveyors
will commence in March 2012.</P>
<P align=justify>The project remains on time and on budget. Commissioning of the
facilities is scheduled to commence in December 2012.</P>
<P align=justify><I>New Prosperity project </I></P>
<P align=justify>We have revised our plans for the New Prosperity project and
have developed a new design proposal which adds construction costs and life of
mine operating expenditures of approximately $300 million to the original
design. The new plan responds to concerns identified during the federal review
process and in February 2011, the Company submitted a new project description to
the Federal Government. The Federal Government accepted the new project
description during the third quarter 2011.</P>
<P align=justify>On November 7, 2011, the Company was advised that a &#145;Notice of
Commencement&#146; had been posted by the CEAA related to the New Prosperity project.
The Notice of Commencement confirmed that the project description had met all
criteria required for an environmental assessment and that a panel review would
be conducted by the Federal Review Agency. The Minister of the Environment
indicated that CEAA will complete this review in not more than 12 months and
that CEAA would use information gathered in the previous environmental
assessment.</P>
<P align=justify>Subsequent to the Notice of Commencement from CEAA in November
2011, the Company reported that it had been unlawfully obstructed from
conducting work on the New Prosperity site. Court proceedings followed in
December 2011 where the Company&#146;s work permits were suspended for 90 days in
order to allow the courts to hear a provincial judicial review regarding the
adequacy of consultation by the BC Government prior to providing the Company
with the necessary work permits. On February 27, 2012, the Company reported that
the temporary injunction preventing the Company from undertaking routine
exploration work on the New Prosperity site pending a BC Supreme Court Judicial
Review, has been vacated by court order. On February 28, 2012, the Company
commenced a reduced scope of work that will be undertaken for the sole purposes
of obtaining information required for the federal environmental assessment of
the proposed New Prosperity project. On this basis, the parties have agreed not
to further pursue existing legal actions. </P>
<P align=justify>The environmental assessment announced by CEAA remains in
process under the timeline identified in their November 7, 2011 press release.
The public comment period on the draft terms of reference and environmental
impact statement commenced on January 23, 2012 and was completed on February 22,
2012. These documents will now be finalized by CEAA and inform the panel review
process.</P>
<P align=center>14 </P>
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  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify><I>Aley project </I></P>
<P align=justify>Taseko announced a mineral resource estimate for the Aley
project in September 2011. The in-pit inferred resource estimate was based on
assay results from the Central Zone to July 31, 2011 and totaled 158.9 million
tonnes grading 0.43% Nb<SUB>2</SUB>O<SUB>5 </SUB>using a base case cut-off of
0.2% Nb<SUB>2</SUB>O<SUB>5</SUB>. </P>
<P align=justify>The 2011 exploration program was completed in third quarter
2011 and included a total of 16,800 meters of additional resource drilling in 65
holes in the central zone. This drilling was targeted to provide sufficient
infill drill density to achieve a measured and indicated status for the resource
and to investigate those areas in which the resource is open to expansion.
Assays were received in the fourth quarter and review of these assays will be
completed in the first quarter 2012. A geological model and updated block model
are under review with a plan to complete a resource update in the first quarter
2012. Metallurgical testwork is in progress on Aley. </P>
<P align=justify>Environmental baseline studies are ongoing including: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>Climate, Air and Noise
  <LI>Hydrology/Hydrogeology
  <LI>Water Quality
  <LI>Soils and Terrain
  <LI>Vegetation and Ecosystem Mapping
  <LI>Wildlife
  <LI>Aquatic Ecology
  <LI>Fish and Fish Habitat </LI></UL>
<P align=justify>Clearing of the site access road right of way was initiated in
February 2012 with completion anticipated in early April 2012. Road construction
is planned to start soon thereafter.</P>
<P align=justify>Engineering work on minesite components, tailings storage
facility, and transmission line options was started at the end of the fourth
quarter. </P>
<P align=justify><B>FINANCIAL CONDITION REVIEW </B></P>
<P align=justify><I>Balance sheet review </I></P>
<P align=justify>Total assets were $994.7 million at December 31, 2011,
representing a 38% increase from the total assets of $722.1 million at December
31, 2010. The increase is primarily a result of the net proceeds received from
the US$200.0 million senior notes offering which we closed in the second
quarter, along with an increase in the rehabilitation cost asset.</P>
<P align=justify>Our asset base is comprised principally of non-current assets
including property, plant and equipment, reflecting the capital intensive nature
of the mining business. Our current assets include cash, accounts receivable,
other financial assets and inventories (supplies and production inventories),
along with other current assets that are primarily prepaid expenses and
deposits. Production inventories, accounts receivable and cash balances
fluctuate in relation to our shipping and cash settlement schedules, which
provide for payment typically either one or four months after the month of
arrival at the receiving port. </P>
<P align=justify>Total liabilities increased by $236.6 million since December
31, 2010 to $497.9 million as at December 31, 2011. This increase reflects the
senior notes issuance and an increase in the provision for environmental
rehabilitation (PER). </P>
<P align=center>15 </P>
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  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify>The PER valuation is impacted by the changes in discount and
inflation rates as at each quarter end. The volatility in the markets during
2011 extended to the Bank of Canada benchmark bond rates which are used as the
proxies for discount rates. The long-term benchmark bond, which has the greatest
impact on our calculation, decreased to 3.1% as at December 31, 2011 compared to
3.7% at the end of 2010. Given the long time frame over which environmental
rehabilitation expenditures are expected to be incurred (over 100 years), the
amounts of the provision and asset are sensitive to even the slightest change in
estimates of discount and inflation rates.</P>
<P align=justify>As at March 9, 2012, there were 195,818,495 common shares
outstanding. In addition, there were 13,561,500 director, employee and
contractor stock options. More information on these instruments and the terms of
their exercise is set out in note 21 of our 2011 annual financial statements.
</P>
<P align=justify><I>Liquidity, cash flow and capital resources </I></P>
<P align=justify>At December 31, 2011, the Company had cash and equivalents of
$277.8 million, as compared to $211.8 million at December 31, 2010. An
additional $40.6 million and $20.1 million of highly-liquid money market
instruments are recorded as current other financial assets and long-term other
financial assets, respectively, as these instruments have maturity dates greater
than three months from the date of acquisition. We maintained our strategy of
retaining significant liquidity to fund operations and the GDP3 expansion. </P>
<P align=justify>Operating cash flow for 2011 was an inflow of $11.7 million
compared to an inflow of $94.1 million for the prior year. Additionally,
operating cash flow for both periods reflect the formation of the Gibraltar
joint venture on March 31, 2010 and the corresponding 25% decrease in our share
of the Gibraltar mine&#146;s operating cash flow since that date.</P>
<P align=justify>The principal use of operating cash flows is capital
expenditures. With the issuance of the senior notes, a future use of operating
cash flow will be the repayment of debt including interest. </P>
<P align=justify>Future changes in market copper and molybdenum prices could
impact the timing and amount of cash available for future investment in capital
projects and/or other uses of capital. To partially mitigate these risks, we
enter into copper hedges on our share of Gibraltar copper production.
Alternative sources of funding for future capital or other liquidity needs
include future operating cash flow, strategic partnerships, such as the
Gibraltar joint venture and the Franco-Nevada gold stream transaction, and debt
or equity financings. These alternatives are continually evaluated to determine
the optimal mix of capital resources to address our capital needs and minimize
our weighted average cost of capital. </P>
<P align=justify>Cash used in investing activities for 2011 was $124.0 million
principally due to the investment in dual currency deposits (&#147;DCD&#148;) with terms
greater than three months compared to cash generated from investing activities
of $128.4 million for 2010. A DCD is a derivative instrument which combines a
money market deposit with a currency option to provide a higher yield than that
available for a standard deposit. The currency in which the Company receives
payment upon maturity of the DCD is dependent on the prevailing spot foreign
exchange rate at maturity. DCDs with maturity dates of three months or less are
classified as cash and equivalents. During 2011, a total of $235.6 million was
invested in marketable securities, DCDs with terms greater than three months,
and copper hedging contracts. In addition, $63.9 million was invested in
property, plant and equipment, offset by $169.5 million in proceeds on the sale
and maturity of investments, and interest received of $7.1 million. The prior
year reflects the $186.8 million in cash received for the 25% contribution to
the joint venture, offset by capital expenditures and purchase of investments.
</P>
<P align=justify>Cash provided by financing activities for 2011 was $173.5
million compared to cash used in financing activities of $42.0 million for 2010.
Included in 2011 are $192.0 million in proceeds from the senior notes offering,
$8.4 million in proceeds from common shares issued, offset by debt issuance
costs of $6.1 million and repayment of debt including interest. This compares to
a use of cash in financing activities for 2010 of $42.0 million primarily
related to the prepayment of the senior credit facility. </P>
<P align=center>16 </P>
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  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify><I>Hedging strategy </I></P>
<P align=justify>We implemented our hedging program in 2009 as copper prices
were recovering from the commodity pricing collapse that occurred in late 2008
and early 2009. Since that time, our strategy has been to hedge at least 50% of
our copper production using put options that are either purchased outright or
funded by the sale of calls that are significantly out of the money using either
a zero-cost basis or funded basis.</P>
<P align=justify>The amount and duration of our hedge position is based on our
assessment of business-specific risk elements combined with the copper pricing
outlook. Currently we have 90% of our estimated share of 2012 Gibraltar
production hedged at $3.50 per pound. This increased hedging level is based on
the potential risks associated with a copper price correction during the
build-out of GDP3. This corresponds with a period of heightened vulnerability
given the scope of the capital expenditure and working capital requirements
during 2012. The project is scheduled to be completed and commissioned in late
2012.</P>
<P align=justify>We review our copper price and quantity exposure at least
quarterly to ensure that adequate revenue protection is in place. Our hedge
positions are typically extended adding incremental quarters at established put
strike prices to provide the necessary price protection.</P>
<P align=justify>Considerations on the cost of the hedging program include an
assessment of Gibraltar&#146;s estimated production costs, anticipated copper prices
and estimated gross margins during the relevant period. </P>
<P align=justify><I>Commitments and contingencies </I></P>
<P align=justify>The Company expects to incur capital expenditures during the
next five years for both the Gibraltar mine and other projects. The other
projects are at various stages of development, from preliminary exploration
through to permitting. The ultimate decision to incur capital expenditures at
each potential site is subject to positive results which allow the project to
advance past decision hurdles.</P>
<P align=justify>At December 31, 2011, capital commitments associated with GDP3
totaled $49.1 million on a 100% basis. Capital commitments for all other
projects were $0.5 million. Our share of total commitments was $37.2 million at
year end. </P>
<P align=justify>In April 2011, the Company completed a public offering of
US$200 million in senior notes due in 2019, bearing interest at an annual rate
of 7.75% . The notes are guaranteed by the Company&#146;s subsidiaries and the
subsidiary guarantees are, in turn, guaranteed by the Company. The Company may
redeem some or all of the notes at any time on or after April 15, 2015 at
redemption prices ranging from 103.875% to 100% plus accrued interest. Prior to
April 15, 2015, the notes may be redeemed at 100% plus a make-whole premium,
plus accrued interest. In addition, until April 15, 2014, the Company may redeem
up to 35% of the principal amount of notes, in an amount not greater than the
net proceeds of certain equity offerings, at a redemption price of 107.75%, plus
accrued interest. The Company is subject to certain restrictions on asset sales,
payments, and incurrence of indebtedness and issuance of preferred stock.</P>
<P align=center>17 </P>
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width="100%" noShade>
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border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<BR>
<DIV>
  <TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
    <TR vAlign=top>
      <TD style="BORDER-TOP: #000000 1px solid" align=left >&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid"
     width="1%" align=left>&nbsp;</TD>
      <TD colspan="19" align=center style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid">
        Payments due </TD>
      <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left >($ in thousands)
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>2012
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>2013
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>2014
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>2015
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>2016
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%"
      align=right>thereafter </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>Total
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD bgColor=#e6efff align=left >Debt <SUP>1 </SUP>: </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=left>&nbsp; </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=left>&nbsp; </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=left>&nbsp; </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=left>&nbsp; </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=left>&nbsp; </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=left>&nbsp; </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=left>&nbsp; </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >&nbsp;Repayment of principal </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right>13,753 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right>9,610 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right>6,829 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right>3,728 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right>927 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right>203,400 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right>238,246 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD bgColor=#e6efff align=left >&nbsp;Interest </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right>17,518 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right>16,717 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right>16,235 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right>15,927 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right>15,783 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right>36,126 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right>118,306 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >PER <SUP>2</SUP> </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right>128,020 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right>128,020 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD bgColor=#e6efff align=left >Operating leases </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right>1,377 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right>117 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right>145 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right>1,639 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >Capital expenditures <SUP>3</SUP> </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right>37,200 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right>37,200 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >Other expenditures <SUP>4</SUP> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="8%"
    align=right>13,514 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="8%"
    align=right>23,809 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="8%"
    align=right>15,461 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="8%"
    align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="8%"
    align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="8%"
    align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="8%"
    align=right>52,784 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P align=justify><SUP>1</SUP> Debt is comprised of senior notes, capital leases
and secured equipment loans. <BR><SUP>2</SUP> Provision for environmental
rehabilitation &#150; Amounts presented in the table represent the undiscounted
future payments for the expected cost of environmental rehabilitation.
<BR><SUP>3</SUP> Purchase obligations for capital commitments include only those
items where binding commitments have been entered into. Commitments at the end
of 2011 primarily relate to the GDP3 expansion. <BR><SUP>4</SUP> Other
expenditure commitments include the supply of goods and services, royalty
obligations and exploration activities. Actual timing of payment for royalty
obligations may differ. Amounts estimated based on expected future production
levels. </P>
<P align=justify><B>SELECTED ANNUAL INFORMATION</B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="7" align=center style="BORDER-TOP: #000000 1px solid"><B>Year
      ended December 31,</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=center>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands,
      except per share amounts) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2009</B><B><SUP>1</SUP></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Revenues </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;251,866 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;278,460 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;188,902 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Net earnings </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;26,974 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;149,357 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;10,561 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Per share &#150; basic </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.14 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.80 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.06 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Per share &#150;
      diluted </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>0.14
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>0.74
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>0.06
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#ffffff align=left>&nbsp; </TD>
    <TD bgColor=#ffffff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#ffffff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff width="12%" align=right>December 31, </TD>
    <TD bgColor=#ffffff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#ffffff width="12%" align=right>January 1, </TD>
    <TD bgColor=#ffffff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff width="12%"
    align=right>2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff width="12%"
    align=right>2010 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff width="12%"
    align=right>2010 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Total assets </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;994,732 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;722,094 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;567,683 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Total long-term financial
      liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;264,482 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;82,162 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;136,446 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify><SUP>1 </SUP>Information for 2009 is presented in accordance
  with Canadian GAAP and was not required to be restated to IFRS.</P>
<P align=center>18 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_19></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify><B>FOURTH QUARTER RESULTS </B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="4"
      align=center style="BORDER-TOP: #000000 1px solid"><B>Three months ended</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Consolidated Statements of Comprehensive Income</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands,
      except per share amounts) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Revenues </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;60,512 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;108,959 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Cost of sales </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>(41,235</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>(52,461</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Gross profit </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>19,277 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>56,498 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>General and administrative </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(5,377</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(5,159</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Exploration and evaluation </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(2,664</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(3,971</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Other operating income (expenses) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(25,709</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(2,894</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Gain (loss) on contribution
      to joint venture </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>1,095
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(14,473</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>45,569 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Finance expenses </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(4,632</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(5,037</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Finance income </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>9,909
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>1,775
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Earnings (loss) before income taxes </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(9,196</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>42,307 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Income tax recovery (expense) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>1,502 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(16,757</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Net earnings (loss)
      for the period</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>&nbsp;(7,694</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>&nbsp;25,550</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Other comprehensive income (loss): </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Unrealized gains (losses) on available-for-sale financial assets,
      net of tax </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(1,483</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>697 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Total other comprehensive
      income (loss) for the period</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>&nbsp;(1,483</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>&nbsp;697</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Total comprehensive
      income (loss) for the period</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>&nbsp;(9,177</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>&nbsp;26,247</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Earnings per share</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Basic </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;(0.04</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;0.14 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Diluted </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;(0.04</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;0.13 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Weighted-average shares outstanding (thousands)</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Basic </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>195,771 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>187,159 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Diluted </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>200,306 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>204,062 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="12%" align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="12%" align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=right>&nbsp;</TD>
  </TR>
</TABLE>
<P align=center>19 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_20></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="4"
      align=center style="BORDER-TOP: #000000 1px solid"><B>Three months ended</B>
    </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Consolidated Statements of Cash Flows</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Operating activities</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Net earnings (loss) for the period </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;(7,694</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;25,550 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Adjustments for: </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Depreciation </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2,369 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4,790 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp; &nbsp;Income tax expense (recovery)
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(1,502</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>16,757 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Income tax paid </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(5,175</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(525</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp; &nbsp;Share-based compensation
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1,564 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,158 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Unrealized loss on derivatives </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>21,929 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2,509 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp; &nbsp;Finance expenses </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>7,746 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1,531 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Finance income </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(3,851</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,343 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp; &nbsp;Gain on contribution to
      joint venture </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(1,095</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Other operating activities </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,023 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(6</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Net change in non-cash working capital </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(8,623</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(15,756</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Cash provided by operating activities </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>7,786 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>37,256 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Investing activities</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Purchase of property, plant and equipment
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(28,942</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(16,886</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Purchase of financial assets </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(22,766</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(5,685</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Interest received </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,976 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1,548 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Proceeds from sale of financial assets </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>69,955 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Other investing activities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(471</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>5,712 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Cash provided by (used for) investing activities </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>20,752 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(15,311</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Financing activities</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Repayment of debt </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(2,900</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(2,274</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Interest paid </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(8,408</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(1,023</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Common shares issued for cash </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>1,073 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>975 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Cash provided by (used for) financing activities </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(10,235</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(2,322</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Effect of exchange
      rate changes on cash and equivalents </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(8,594</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(3,247</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Increase in cash and equivalents </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>9,709 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>16,376 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Cash and equivalents,
      beginning of period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>268,083 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>195,417 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><B>Cash and equivalents, end of period</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>&nbsp;277,792</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>&nbsp;211,793</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=center>20 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_21></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify><I>Earnings </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="4"
      align=center style="BORDER-TOP: #000000 1px solid"><B>Three months ended</B>
    </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right><B>%
      Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Net earnings (loss) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;(7,694</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;25,550 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;(33,244</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(130%</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Unrealized loss on derivatives, net of tax </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>16,118 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,794 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>14,324 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>798% </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Changes in fair value of financial instruments
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(1,541</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(98</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(1,443</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>&gt;999% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Foreign currency translation losses </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,383 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4,822 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(3,439</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(71%</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Gain on contribution to joint venture,
      net of tax </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(794</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>794 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(100%</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
      align=left>&nbsp;Non-recurring consulting expenses, net of tax </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>1,675
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>1,675
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>100%
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Adjusted net earnings <SUP>1</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;9,941 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;31,274 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;(21,333</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(68%</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
  </TR>
</TABLE>
<P align=justify><SUP>1</SUP> Adjusted net earnings is non-GAAP financial
performance measures with no standard definition under IFRS. See pages 30-33 of
this MD&amp;A. </P>
<P align=justify>Contributing to the $21-million decrease in the quarterly
adjusted net earnings year-over-year are the following changes: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>$48-million decrease in revenues;
  <LI>offset by an $11-million decrease in cost of sales;
  <LI>$2-million impairment on plant and equipment;
  <LI>$3-million increase in interest expense associated with the 2011 senior
  notes issuance;
  <LI>offset by a $3-million increase in finance income;
  and
  <LI>$15 million for the associated tax effects of these items.
  </UL>
<P align=justify>Each of the above-noted changes is examined in further detail
in the sections below. </P>
<P align=justify><I>Revenues </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="4"
      align=center style="BORDER-TOP: #000000 1px solid"><B>Three months ended</B>
    </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right><B>%
      Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Copper concentrate </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;53,998 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;102,017 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;(48,019</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(47%</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Copper cathode </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2,199
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2,472
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(273</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(11%</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; Total copper sales </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;56,197 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;104,489 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;(48,292</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(46%</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Molybdenum concentrate </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>3,439 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>3,193 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>246 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>8% </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Silver contained in copper concentrate </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>876 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>1,277 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(401</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(31%</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;60,512 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;108,959 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;(48,447</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(44%</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>(thousands of pounds, unless otherwise noted) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Copper concentrate </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>14,767 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>24,531 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(9,764</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(40%</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Copper cathode </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>670 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>666 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>4 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>1% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; Total copper sales </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>15,437 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>25,197 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(9,760</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(39%</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Average realized copper price (US$ per pound)
      <SUP>1</SUP> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;3.56 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;4.09 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;(0.53</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(13%</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Molybdenum concentrate
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>269 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>196 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>100 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>51% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify><SUP>1</SUP> The average exchange rate used for 2011 was
CAD/USD $0.9893 (2010: $1.03) . </P>
<P align=center>21 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_22></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify>The 39% decrease in sales volumes was primarily due to
scheduling of shipments of copper concentrate. Consequently, there was a large
inventory of copper concentrate on hand at the end of the fourth quarter 2011
which was shipped during the first week of January 2012. </P>
<P align=justify>The average copper price realized by the Company in both
quarters exceeded the LME prices for the periods. According to the LME, copper
averaged US$3.40 per pound in fourth quarter 2011 and US$3.92 per pound in the
prior-year quarter. The difference between realized copper prices and the
average market price for the fourth quarter 2011 reflects the pricing of 10.6
million pounds of copper concentrate not yet settled using the copper price
forward curve as at December 31, 2011. The spot price for copper closed midway
between the high and low for the fourth quarter at US$3.43 per pound on December
30, 2011. </P>
<P align=justify>Molybdenum revenues totaled $3.4 million in fourth quarter 2011
which is comparable to the prior-year quarter.</P>
<P align=justify><I>Cost of sales </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="1%" align=left>&nbsp;</TD>
    <TD colspan="4"
      align=center style="BORDER-TOP: #000000 1px solid"><B>Three months ended</B>
    </TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="2%"
align=center>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="2%"
  align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands,
      unless otherwise noted) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right><B>%
      Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Direct mining costs </TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;32,777 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;30,056 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;2,721 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>9% </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Depreciation </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2,200 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4,685 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(2,485</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(5%</TD>
    <TD width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Treatment and refining costs </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,973 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>3,757 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>785 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(20%</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Transportation costs </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>3,400 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>5,029 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,629 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(32%</TD>
    <TD width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Changes in inventories of finished goods and WIP </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(115</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>8,934 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(9,049</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(101%</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>41,235 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>52,461 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;(11,226</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(21%</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Copper production (thousands of pounds) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>16,753 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>17,577 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(824</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(5%</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Copper sales (thousands of pounds) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>15,437 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>25,197 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(9,760</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(39%</TD>
    <TD width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Direct mining costs per pound produced (per
      pound) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1.96 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1.71 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.25 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>14% </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Depreciation per pound produced (per pound) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>0.13 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>0.27 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(0.14</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(51%</TD>
    <TD width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Treatment and refining costs per pound sold
      (per pound) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.19 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.15 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.04 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>29% </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Transportation costs
      per pound sold (per pound) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>0.22
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>0.20
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>0.02
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>10% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify>The 21% decrease in cost of sales reflects the 39% decrease in
copper sales volumes in fourth quarter 2011 compared to the prior-year quarter.
The increase in direct mining costs is partially attributable to higher diesel,
tires, labour, repairs and maintenance, and explosives costs. Also contributing
to the increase in direct mining costs on a &#145;per unit of production&#146; basis is
lower production quarter-over-quarter as a result of lower head grades and
recoveries.</P>
<P align=justify>Depreciation expense included in fourth quarter 2011 cost of
sales has decreased due, in part, to a build-up of inventory during the quarter
which includes capitalized depreciation expenses. Also, fourth quarter 2010
depreciation was higher than normal due to an adjustment that was made in the
quarter relating to the full year.</P>
<P align=justify>Treatment and refining costs and transportation costs have
increased on a &#145;per unit of sales&#146; basis, consistent with increase in these
costs observed in the market.</P>
<P align=center>22 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_23></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify><I>Other expenses and income </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="4"
      align=center style="BORDER-TOP: #000000 1px solid"><B>Three months ended</B>
    </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right><B>%
      Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>General and administrative </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;5,377 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;5,159 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;218 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>4% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Exploration and evaluation
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2,664
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>3,971
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(1,307</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(32%</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Other operating expenses (income): </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Realized loss (gain) on copper derivatives </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;(599</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;658 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;(1,257</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>&gt;100% </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Unrealized loss on copper derivatives
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>21,929 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,509 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>19,420 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>&gt;100% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Consulting expenses </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2,279 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2,279 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>100% </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Impairment of plant and equipment </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,377 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,377 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>100% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Management fee
      income </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(277</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(273</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>(4</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>1% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;25,709 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;2,894 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;22,815 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&gt;100% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Gain)/loss on contribution
      of joint venture </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;(1,095</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;1,095 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(100%</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
  </TR>
</TABLE>
<P align=justify>General and administrative expenses were comparable quarter
over quarter. </P>
<P align=justify>Exploration and evaluation expenses during fourth quarter 2011
were attributable to work performed at the Aley project and the New Prosperity
project. The decrease compared to the prior-year quarter is a result of reduced
spending on the New Prosperity project in the fourth quarter 2011.</P>
<P align=justify>The gain on copper derivatives during fourth quarter 2011
reflects the receipt of $2 million in proceeds on put options expiring in the
money, net of the expense related to the premium paid on these put options at
approximately US$0.20 per pound.</P>
<P align=justify>During 2011, the Company entered into copper derivative
contracts for 68.8 million pounds of 2012 copper production. These outstanding
copper derivatives are marked-to-market each period end with any changes in fair
value recognized in income as unrealized gains or losses. Since the end of the
third quarter 2011 through to the end of the year, there has been an increase in
copper prices resulting in an unrealized loss on copper derivatives in the
amount of $21.9 million.</P>
<P align=justify>In early July, we engaged consultants to work with the
Gibraltar management team over a 23-week period to design and execute programs
directed at improvements in operational performance. The total cost of this
engagement during the fourth quarter 2011 was $2.3 million. </P>
<P align=justify>Certain plant and equipment was deemed redundant upon
completion of the SAG direct feed project during 2011, which resulted in an
impairment charge being taken during fourth quarter 2011. We also identified
other assets that will no longer be utilized under our current life-of-mine plan
and recognized an impairment charge for these assets as well. The total
impairment charges for 2011 were $2.4 million. There were no impairments
identified in 2010. </P>
<P align=center>23 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_24></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify><I>Finance expenses </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="4"
      align=center style="BORDER-TOP: #000000 1px solid"><B>Three months ended</B>
    </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right><B>%
      Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Interest expense </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;4,198 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;1,058 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;3,140 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>297% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Accretion on PER </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>434 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>506 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(72</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(14%</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Foreign exchange loss </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>3,473 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(3,473</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(100%</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;4,632 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>5,037
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;(405</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
align=right>(8%</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
  </TR>
</TABLE>
<P align=justify>The quarter-over-quarter increase in interest expense is due to
the issuance of the senior notes early in the second quarter 2011.</P>
<P align=justify><I>Finance income </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="4"
      align=center style="BORDER-TOP: #000000 1px solid"><B>Three months ended</B>
    </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right><B>%
      Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Interest income </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;2,200 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;1,802 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;398 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>22% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Income realized on dual currency deposits </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2,990 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(125</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>3,115 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>&gt;100% </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Change in fair value of financial instruments
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1,541 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>98 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1,443 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>&gt;100% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Foreign exchange gain
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>3,178
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>3,178
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>100%
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;9,909 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;1,775 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;8,134 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&gt;100% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify>Income realized on dual currency deposits increased
substantially, in line with an increase in the amount of funds invested in these
money market instruments in 2011. </P>
<P align=justify><I>Income tax </I></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="4"
      align=center style="BORDER-TOP: #000000 1px solid"><B>Three months ended</B>
    </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="12%" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Cdn$ in thousands)
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right><B>%
      Change</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Current expense (recovery) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;(2,840</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;(235</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;(2,605</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>&gt;100% </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Deferred expense </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>1,338
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>16,992 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>(15,654</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(92%</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;(1,502</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;16,757 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;(18,259</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&gt;100% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Effective tax rate
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>16.3%
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>39.6%
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Canadian statutory rate </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>26.5% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>28.5% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify>The income tax recovery realized in fourth quarter 2011 is
primarily a result of deductions allowed for tax associated with the copper
hedging program which was much higher than in 2010. In addition, the difference
between depreciation rates used for tax purposes compared to rates used for
accounting purposes contributed to a higher deferred tax expense than in the
prior year&#146;s quarter. </P>
<P align=center>24 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_25></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify><I>Cash flow </I></P>
<P align=justify>The Company&#146;s primary source of liquidity is operating cash
flow. In the fourth quarter of 2011, operating cash flow was an inflow $7.8
million compared to $37.3 million for the prior-year period. The decrease in the
current quarter&#146;s operating cash flow quarter over quarter reflects the decrease
in net earnings.</P>
<P align=justify>Cash received from investing activities in the fourth quarter
of 2011 amounting to $20.8 million is mainly due to capital expenditures of
$28.9 million and purchase of financial assets of $22.8 million, offset by
proceeds from the sale and maturity of investments of $70.0 million and interest
received of $3.0 million. The comparable for the fourth quarter of 2010 was
$15.3 million of cash used in investing activities including capital
expenditures of $16.9 million, purchase of financial assets of $5.7 million,
interest received of $1.5 million and $5.7 million received from other investing
activities. </P>
<P align=justify>Cash used in financing activities was $10.2 million for the
fourth quarter ended December 31, 2011, compared to $2.3 million for the
prior-year period. The increase in the used of cash is mainly due to interest
payment on long term debt.</P>
<P align=justify><B>SUMMARY OF QUARTERLY RESULTS </B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 9pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left >&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="10" align=center style="BORDER-TOP: #000000 1px solid"> 2011
    </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=center>&nbsp;</TD>
    <TD colspan="10" align=center style="BORDER-TOP: #000000 1px solid"> 2010
    </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >($ in thousands, </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=center>&nbsp; </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="6%" align=center>&nbsp; </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="6%" align=center>&nbsp; </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="6%" align=center>&nbsp; </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="6%" align=center>&nbsp; </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="6%" align=center>&nbsp; </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="6%" align=center>&nbsp; </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD width="6%" align=center>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >except per share amounts) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=center>Q4 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=center>Q3 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=center>Q2 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=center>Q1 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=center>Q4 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=center>Q3 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=center>Q2 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=center>Q1 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Revenues </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>60,512 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>84,204 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>48,349 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>58,801 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>108,959 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>37,540 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>56,453 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>75,508 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Net earnings (loss) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>(7,694</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>30,028 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>(1,113</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>5,753 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>25,550 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>728 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>44,783 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>78,296 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >&nbsp;&nbsp; EPS <SUP>1</SUP> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>(0.04</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>0.15 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>(0.01</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>0.03 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>0.14 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>0.00 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>0.24 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>0.43 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Adjusted net earnings <SUP>2</SUP> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>9,941 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>(1,991 </TD>
    <TD  width="2%" align=left>)</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>1,863</TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>7,971 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>31,274 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>6,276 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>3,335 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>10,655 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >&nbsp;&nbsp; Adjusted EPS <SUP>1</SUP> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>0.05 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>(0.01 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>)</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>0.01 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>0.04 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>0.17 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>0.03 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>0.02 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>0.06 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >EBITDA <SUP>2</SUP> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>83</TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>53,920 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>1,815 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>14,864 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>46,353 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>3,893 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>22,436 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>125,762 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >Adjusted EBITDA <SUP>2</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="6%"
    align=right>24,113 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="6%"
    align=right>10,216 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="6%"
    align=right>7,555 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="6%"
    align=right>16,239 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="6%"
    align=right>52,491 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="6%"
    align=right>11,795 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="6%"
    align=right>9,048 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="6%"
    align=right>20,829 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left >(US$ per pound, except
      where indicated) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="6%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Realized copper price <SUP>2</SUP> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>3.56 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>3.73 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>4.25 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>4.28 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>4.09 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>3.78 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>3.18 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>3.31 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Total cash costs of sales <SUP>2</SUP> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>2.20 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>2.33 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>2.37 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>2.08 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>1.69 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>1.79 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>2.08 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>1.65 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >Copper sales (million pounds) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="6%"
    align=right>15.4 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="6%"
    align=right>21.8 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="6%"
    align=right>10.7 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="6%"
    align=right>12.8 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="6%"
    align=right>25.2 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="6%"
    align=right>8.7 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="6%"
    align=right>16.5 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="6%"
    align=right>20.5 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify><SUP>1</SUP> Calculated using weighted average number of shares
outstanding under the basic method. Sum of all the quarters may not add up to
the yearly total due to rounding. <BR><SUP>2</SUP> Adjusted net earnings (loss),
adjusted EPS, EBITDA, adjusted EBITDA, realized copper price and total cash
costs of sales are non-GAAP financial performance measure with no standard
definition under IFRS. See pages 30-33 of the Company&#146;s MD&amp;A. </P>
<P align=justify>Our financial results for the last eight quarters reflect:
volatile copper and molybdenum prices that impact realized sales prices;
variability in the quarterly sales volumes due to timing of shipments which
impacts revenue recognition; and, more recently, a trend of increasing
production costs primarily caused by inflationary pressures on key input costs.
The net earnings in first quarter 2010 include a gain of $65.3 million on the
contribution to the joint venture, net of tax. </P>
<P align=center>25 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_26></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify><B>IFRS </B></P>
<P align=justify>We adopted IFRS effective January 1, 2011. Due to the
requirement to present comparative financial information, the effective
transition date is January 1, 2010. For a discussion of our significant
accounting policies, refer to note 2 of the Financial Statements. </P>
<P align=justify><I>Elected exemptions</I></P>
<P align=justify>IFRS 1 provides for certain mandatory exceptions and optional
exemptions for first time adopters of IFRS. We elected to take the following
IFRS 1 optional exemptions as of the transition date of January 1, 2010: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>Not to apply the requirements of IFRS 3, <I>Business Combinations, </I>and
  restate business combinations that occurred prior to the transition date.
  <LI>To apply the requirements of IFRS 2, <I>Share-based Payments</I>, to share
  options granted which had not vested as at the transition date.
  <LI>To apply the borrowing cost exemption and to prospectively apply IAS 23,
  <I>Borrowing Costs.</I>
  <LI>To not retrospectively apply IFRIC 1, <I>Changes in Existing
  Decommissioning, Restoration and Similar</I> <I>Liabilities. </I>The
  simplified approach to calculating the net book value of the asset related to
  the provision for environmental rehabilitation (&#147;PER&#148;) was applied. The PER
  calculated on the transition date in accordance with IAS 37, <I>Provisions,
  Contingent Liabilities and Contingent Assets, </I>was discounted back to the
  date the liability first arose, at which date the corresponding asset was set
  up, and then accumulated depreciation was recalculated as at the transition
  date. </LI></UL>
<P align=justify><I>Impact of adoption of IFRS on financial reporting </I></P>
<P align=justify>The following tables contain summaries of the adjustments to
equity and to total comprehensive income as a result of the adoption of IFRS.
The transition to IFRS has resulted in numerous financial statement presentation
changes. A description of each of the adjustments and financial statement
presentation change is outlined in note 20 of the Financial Statements. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="15%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>January 1,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="15%"
    align=center><B>Ref.</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Equity under Canadian GAAP</B> </TD>
    <TD bgColor=#e6efff  width="15%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;469,951 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;296,693 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Change in accounting method for depreciation
    </TD>
    <TD  width="15%" align=center>(i) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(668</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp;Reversal of impairment </TD>
    <TD bgColor=#e6efff  width="15%" align=center>(ii) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>3,338 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>4,574 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Provision for environmental rehabilitation </TD>
    <TD  width="15%" align=center>(iii) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(14,290</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(16,731</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp;Share-based compensation </TD>
    <TD bgColor=#e6efff  width="15%" align=center>(iv) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;
      &nbsp;Deferred income tax </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="15%"
    align=center>(v) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2,411
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>3,338
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><B>Equity under IFRS</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="15%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;460,742 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;287,874 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="15%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>Year ended</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="15%"
    align=center><B>Ref.</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>December 31, 2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Total Comprehensive Income under
      Canadian GAAP</B> </TD>
    <TD bgColor=#e6efff  width="15%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;150,271 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Change in accounting method for depreciation
    </TD>
    <TD  width="15%" align=center>(i) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(1,772</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp;Reversal of impairment </TD>
    <TD bgColor=#e6efff  width="15%" align=center>(ii) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(99</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Provision for environmental rehabilitation </TD>
    <TD  width="15%" align=center>(iii) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(1,843</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp;Share-based compensation </TD>
    <TD bgColor=#e6efff  width="15%" align=center>(iv) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1,149 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Deferred income tax </TD>
    <TD  width="15%" align=center>(v) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>280 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; &nbsp;Gain on contribution to joint venture </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="15%" align=center>(vi) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>3,044 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Total
      Comprehensive Income under IFRS</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="15%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>&nbsp;151,030 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P align=center>26 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_27></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify>The conversion to IFRS did not have an impact on total cash
costs of production per pound of copper or total cash costs of sales per pound
of copper. </P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;Change in accounting method for depreciation </P>
<P align=justify>On adoption of IFRS effective January 1, 2010, the Company
changed its depreciation accounting method with respect to certain components of
property, plant and equipment as management believes it more appropriately
reflects the use of the corresponding assets thereby resulting in more reliable
and relevant presentation. The impact of this change in accounting method has
been prospectively applied from January 1, 2010 as it is a change in
depreciation method and not a change in an accounting policy.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii)&nbsp;&nbsp;&nbsp;&nbsp;
Reversal of impairment </P>
<P align=justify>Under IFRS, the Company is required to reconsider whether
impairment losses recognized in prior periods no longer exist, or have decreased
on transition and thereafter on an annual basis. If such indicators exist, a new
recoverable amount should be calculated and all or part of the impairment charge
should be reversed to the extent the recoverable amount exceeds carrying value.
This is not permitted under Canadian GAAP.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii)&nbsp;&nbsp;&nbsp; Provision
for environmental rehabilitation </P>
<P align=justify>The Company has re-measured its PER as of the transition date
and estimated the amount to be included in the cost of the related asset by
discounting the liability to the date at which the liability first arose. This
calculation was done using best estimates of the historical risk-adjusted
discount rates. Accumulated depreciation under IFRS was recalculated up to the
transition date.</P>
<P align=justify>Under Canadian GAAP, the Company reduced the amount of its PER
by expected cash inflows associated with future anticipated revenue-generating
activities. Under IFRS, these amounts are recognized as a separate asset when
recovery is virtually certain. The Company concluded that the conditions for
virtual certainty do not exist and have excluded these revenues from its
calculations under IFRS.</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv)&nbsp;&nbsp;&nbsp;
&nbsp;Share-based compensation </P>
<P align=justify>For the purpose of accounting for share-based payment
transactions, certain individuals previously classified as contractors under
Canadian GAAP are now classified as employees under IFRS, and the Company
records a lower expense each period, with an equal and offsetting adjustment to
contributed surplus. Additional adjustments were made as at December 31, 2010.
</P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Income tax</P>
<P align=justify>Under IFRS, the Company has derecognized deferred tax
liabilities previously recognized on temporary differences arising on the
initial recognition of the Aley property and Oakmont net profit interest (where
the accounting basis of the asset acquired exceeded its tax basis) in a
transaction which was not a business combination and affected neither accounting
income nor taxable income.</P>
<P align=justify>Under IFRS, the Company has reversed the deferred tax asset
previously recognized under Canadian GAAP related to the &#147;new mine allowance&#148;
for British Columbia mineral tax purposes. In addition, deferred taxes have been
adjusted for the changes to net book values arising as a result of the
adjustments for first-time adoption of IFRS as discussed above. </P>
<P align=center>27 </P>
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width="100%" noShade>
<A name=page_28></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi)&nbsp; &nbsp;Gain on
contribution to joint venture </P>
<P align=justify>The gain on the contribution to joint venture has been
recalculated under IFRS to reflect adjustments to the carrying values of certain
assets and liabilities of the Gibraltar mine contributed to the joint venture,
as described in references (i), (ii), (iii) and (v).</P>
<P align=justify><B>CRITICAL ACCOUNTING POLICIES AND ESTIMATES </B></P>
<P align=justify>The Company's significant accounting policies are presented in
note 2 of the Financial Statements. The preparation of the Financial Statements
in conformity with IFRS requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expenses. Actual results may differ
from these estimates. Estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognized in the period in
which the estimates are revised and in any future periods affected. </P>
<P align=justify>Significant areas where judgment is applied include reserve and
resource estimation; asset valuations and the measurement of impairment charges
or reversals; finished and in-process inventory quantities; plant and equipment
lives; tax provisions; provisions for environmental rehabilitation; assessment
of joint control in business combinations; and share-based compensation. Key
estimates and assumptions made by management with respect to these areas have
been disclosed in the notes to the Financial Statements as appropriate.</P>
<P align=justify>The accuracy of reserve and resource estimates is a function of
the quantity and quality of available data and the assumptions made and judgment
used in the engineering and geological interpretation, and may be subject to
revision based on various factors. Changes in reserve and resource estimates may
impact the carrying value of property, plant and equipment; the calculation of
depreciation expense; the capitalization of stripping costs incurred during
production; and the timing of cash flows related to the provision for
environmental rehabilitation. </P>
<P align=justify>Changes in forecast prices of commodities, exchange rates,
production costs and recovery rates may change the economic status of reserves
and resources. Forecast prices of commodities, exchange rates, production costs
and recovery rates, and discount rates assumptions, either individually or
collectively, may impact the carrying value of derivative financial instruments,
inventory, property, plant and equipment, and intangibles, as well as the
measurement of impairment charges or reversals. </P>
<P align=justify>Subsequent to the 2011 year end, the Company was advised by its
auditors, KPMG LLP, that the Public Company Accounting Oversight Board (PCAOB)
communicated to the auditors that based on their inspection results, that an
alternative accounting treatment might be more appropriate for the Company&#146;s
2010 joint venture transaction with Cariboo. Pursuant to that transaction,
Cariboo purchased a 25% joint venture interest in the Gibraltar mining
operations for $187 million. This transaction implied a total value for the
Gibraltar mining operations of approximately $748 million and in the Company&#146;s
annual reconciliation of accounts from Canadian generally accepted accounting
principles (GAAP) to United States GAAP, it recognized a gain calculated as 100%
of the difference between the Company&#146;s carrying cost of the Gibraltar mining
operations of $338 million and its implied value, for a reported gain of $360
million. Under US GAAP, 100% of the gain is recognized if the Company no longer
controls the joint venture. The accounting identified by the PCAOB is dependent
on whether a change of control of the Gibraltar mining operations occurred as a
result of the joint venture transaction.</P>
<P align=justify>Depending on the outcome of anticipated discussions with the
PCAOB and possibly the SEC, it is possible that the Company may have to reverse
the gain recognition for US GAAP purposes on 100% of the Gibraltar mining
operations and recognize a gain only on the 25% actually sold or potentially
recognize the gain as an equity transaction rather than through income. This
would necessitate related restatements to the carrying value of the Gibraltar
mining operations and the presentation of Cariboo&#146;s minority interest but would
have no effect on cash flows in 2010 or thereafter. Based on the review of
PCAOB&#146;s comments to date, the Company believes that the </P>
<P align=center>28 </P>
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width="100%" noShade>
<A name=page_29></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify>accounting approach taken on the joint venture transaction and
subsequent accounting were and continue to be appropriate.</P>
<P align=justify><B>INTERNAL CONTROLS OVER FINANCIAL REPORTING AND DISCLOSURE
CONTROLS AND PROCEDURES </B></P>
<P align=justify>The Company's management is responsible for establishing and
maintaining adequate internal control over financial reporting and disclosure
controls and procedures.</P>
<P align=justify>Our internal control system over financial reporting is
designed to provide reasonable assurance to management and the Board of
Directors regarding the preparation and fair presentation of published financial
statements. Internal control over financial reporting includes those policies
and procedures that: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(1) </TD>
    <TD>
      <P align=justify>pertain to the maintenance of records that in reasonable
      detail accurately and fairly reflect the transactions and dispositions of
      the assets of the Company;</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(2) </TD>
    <TD>
      <P align=justify>provide reasonable assurance that transactions are
      recorded as necessary to permit preparation of financial statements in
      accordance with IFRS, and that receipts and expenditures of the Company
      are being made only in accordance with authorizations of management and
      directors of the Company; and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(3) </TD>
    <TD>
      <P align=justify>provide reasonable assurance regarding prevention or
      timely detection of unauthorized acquisition, use or disposition of the
      Company&#146;s assets that could have a material effect on the financial
      statements.</P></TD></TR></TABLE>
<P align=justify>Our internal control system over disclosure controls and
procedures is designed to provide reasonable assurance that material information
relating to the Company is made known to management and disclosed to others and
information required to be disclosed by the Company in our annual filings,
interim filings or other reports filed or submitted by us under securities
legislation is recorded, processed, summarized and reported within the time
periods specified in the securities legislation.</P>
<P align=justify>All internal control systems, no matter how well designed, have
inherent limitations. Therefore, even those systems determined effective can
provide only reasonable assurance with respect to financial reporting and
disclosure.</P>
<P align=justify>Other than changes related to our conversion to IFRS, there
have been no changes in our internal control over financial reporting and
disclosure controls and procedures during the year ended December 31, 2011 that
have materially affected, or are reasonably likely to materially affect,
internal control over financial reporting and disclosure.</P>
<P align=justify>The Company&#146;s management, at the direction of our chief
executive officer and chief financial officer, have evaluated the effectiveness
of the design and operation of the internal controls over financial reporting
and disclosure controls and procedures as of the end of the period covered by
this report, and have concluded that they were effective at a reasonable
assurance level. </P>
<P align=justify><B>RELATED PARTY TRANSACTIONS </B></P>
<P align=justify><I>Key management personnel </I></P>
<P align=justify>Key management personnel include the members of the Board of
Directors and executive officers of the Company. </P>
<P align=center>29 </P>
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width="100%" noShade>
<A name=page_30></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify>The Company contributes to a post-employment defined
contribution pension plan on the behalf of certain key management personnel.
This retirement compensation arrangement (RCA Trust) was established to provide
benefits to certain executive officers on or after retirement in recognition of
their long service. Upon retirement, the participant is entitled to the
distribution of the accumulated value of the contributions under the RCA Trust.
Obligations for contributions to the defined contribution pension plan are
recognized as compensation expense in profit or loss in the periods during which
services are rendered by the executive officers. </P>
<P align=justify>Certain executive officers are entitled to termination and
change in control benefits. In the event of termination without cause, other
than a change in control, these executive officers are entitled to an amount
ranging from 9-month to 12-month&#146;s salary. In the event of a change in control,
if a termination without cause or a resignation occurs within 12 months
following the change of control, these executive officers are entitled to
receive, among other things, an amount ranging from 24-month to 32-months&#146;
salary and accrued bonus, and all stock options held by these individuals will
fully vest. </P>
<P align=justify>Executive officers and directors also participate in the
Company&#146;s share option program.</P>
<P align=justify>During 2011, the Company incurred total compensation expenses
of $11.3 million for its key management personnel, compared to $10.4 million in
2010.</P>
<P align=justify><I>Other related parties </I></P>
<P align=justify>Hunter Dickinson Services Inc. ("HDSI") is a private company
which has certain directors in common with the Company. HDSI carries out
geological, engineering, corporate development, administrative, financial
management, investor relations, and other management activities for the Company.
The terms and conditions of the transactions are similar to transactions
conducted on an arm&#146;s length basis. During 2011, the Company incurred general
and administrative expenses of $2.2 million, exploration and evaluation expenses
of $0.8 million, and prepaid rent of $1.0 million with HDSI. This compares to
general and administrative expenses of $2.3 million and exploration and
evaluation expenses of $0.7 million in 2010. </P>
<P align=justify>The Gibraltar joint venture pays a management fee to the
Company for services rendered as operator of the Gibraltar mine. During the year
2011, the Company has earned $0.8 million of other operating income for these
services rendered, compared to $0.6 million earned in 2010. </P>
<P align=justify><B>NON-GAAP PERFORMANCE MEASURES </B></P>
<P align=justify>This document includes certain non-GAAP performance measures
that do not have a standardized meaning prescribed by IFRS. These measures may
differ from those used by, and may not be comparable to such measures as
reported by, other issuers. The Company believes that these measures are
commonly used by certain investors, in conjunction with conventional IFRS
measures, to enhance their understanding of the Company&#146;s performance. These
measures have been derived from the Company&#146;s financial statements and applied
on a consistent basis. The following tables below provide a reconciliation of
these non-GAAP measures to the most directly comparable IFRS measure.<B>
</B></P>
<P align=justify><I>Total cash costs per pound </I></P>
<P align=justify>Total cash costs of sales include all costs absorbed into
inventory, as well as by-product credits, treatment &amp; refining costs and
transportation costs, less non-cash items such as depreciation and share-based
compensation. Total cash costs per pound sold are calculated by dividing the
aggregate of the applicable costs by copper pounds sold. Total cash costs of
production are total cash costs of sales adjusted for the net movement in
inventory during the period. Total cash costs per pound produced are calculated
by dividing the aggregate of the </P>
<P align=center>30 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_31></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify>applicable costs by copper pounds produced. These measures are
calculated on a consistent basis for the periods presented. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="1%" align=left>&nbsp;</TD>
    <TD colspan="4"
      align=center style="BORDER-TOP: #000000 1px solid"><B>Three months ended</B>
    </TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="2%"
align=center>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="1%"
align=center>&nbsp;</TD>
    <TD colspan="4" align=center style="BORDER-TOP: #000000 1px solid"><B>Year
      ended</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="2%"
  align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD width="2%" align=center>&nbsp;</TD>
    <TD width="1%" align=center>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>($ in thousands, unless
      otherwise indicated) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Cost of sales</B> </TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;41,235 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;52,461 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;165,565 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;157,759 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Less non-cash items: </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Depreciation </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,220 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>4,967 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>12,145 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>12,656 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Share-based compensation </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(42</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>137 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Less by-product credits: </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Molybdenum </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>3,439 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>3,193 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>14,317 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>12,656 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Silver </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>876 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>1,277 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>3,473 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>2,885 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Total cash costs of sales</B> </TD>
    <TD width="1%" align=left><B>$</B></TD>
    <TD width="12%" align=right><B>&nbsp;34,762</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left><B>$</B></TD>
    <TD width="12%" align=right><B>&nbsp;43,024</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;135,494 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;129,562 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Total copper sold (thousand pounds) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>15,438 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>25,197 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>60,776 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>70,839 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Total cash costs per pound sold </TD>
    <TD width="1%" align=left>$</TD>
    <TD width="12%" align=right>2.25 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>$</TD>
    <TD width="12%" align=right>1.71 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>$</TD>
    <TD width="12%" align=right>2.23 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>$</TD>
    <TD width="12%" align=right>1.83 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Average exchange rate for the period (CAD/USD) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>1.023 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>1.0131 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>0.9893 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>1.0300 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Total cash costs
      of sales (US$ per pound)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>&nbsp;2.20</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>&nbsp;1.69</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>&nbsp;2.25</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>&nbsp;1.78</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Total cash costs of sales</B> </TD>
    <TD width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;34,762 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;43,024 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;135,494 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;129,562 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Net change in inventory </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(13</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(8,624</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(3,144</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>3,544 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Total cash costs of production</B> </TD>
    <TD width="1%" align=left><B>$</B></TD>
    <TD width="12%" align=right><B>&nbsp;34,749</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left><B>$</B></TD>
    <TD width="12%" align=right><B>&nbsp;34,400</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left><B>$</B></TD>
    <TD width="12%" align=right><B>&nbsp;132,350</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left><B>$</B></TD>
    <TD width="12%" align=right><B>&nbsp;133,106</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Less offsite costs: </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Treatment and refining costs </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(2,973</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(3,757</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(11,632</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(11,563</TD>
    <TD width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;Transportation costs </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(3,400</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(5,029</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(13,108</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(16,275</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Net operating cash costs</B> </TD>
    <TD width="1%" align=left><B>$</B></TD>
    <TD width="12%" align=right><B>&nbsp;28,376</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left><B>$</B></TD>
    <TD width="12%" align=right><B>&nbsp;25,614</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left><B>$</B></TD>
    <TD width="12%" align=right><B>&nbsp;107,610</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left><B>$</B></TD>
    <TD width="12%" align=right><B>&nbsp;105,268</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Total copper produced (thousand pounds) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>16,753 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>17,577 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>62,165 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>75,050 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Total cash costs per pound produced </TD>
    <TD width="1%" align=left>$</TD>
    <TD width="12%" align=right>1.69 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>$</TD>
    <TD width="12%" align=right>1.46 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>$</TD>
    <TD width="12%" align=right>1.73 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>$</TD>
    <TD width="12%" align=right>1.40 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Average exchange rate for the period (CAD/USD) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>1.0230 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>1.0131 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>0.9893 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>1.0300 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Net operating cash costs of production</B> </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp;<B>(US$ per pound)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>&nbsp;1.66</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>&nbsp;1.44</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>&nbsp;1.75</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>&nbsp;1.36</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=center>31 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_32></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify><I>Adjusted net earnings </I></P>
<P align=justify>Adjusted net earnings removes the effect of the following
transactions from net earnings as reported under IFRS: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>Unrealized gains/losses on derivative instruments;
  <LI>Gains/losses on the sale of financial instruments;
  <LI>Changes in the fair value of financial instruments;
  <LI>Foreign currency translation gains/losses; and
  <LI>Non-recurring transactions, including non-recurring tax adjustments.
</LI></UL>
<P align=justify>Management believes these transactions do not reflect the
underlying operating performance of our core mining business and are not
necessarily indicative of future operating results. Furthermore, unrealized
gains/losses on derivative instruments, changes in the fair value of financial
instruments, and foreign currency translation gains/losses are not necessarily
reflective of the underlying operating results for the reporting periods
presented.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="4"
      align=center style="BORDER-TOP: #000000 1px solid"><B>Three months ended</B>
    </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="1%"
    align=center>&nbsp;</TD>
    <TD colspan="4" align=center style="BORDER-TOP: #000000 1px solid"><B>Year
      ended</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>($ in thousands, except
      per share amounts) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><B>Net earnings (loss)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>&nbsp;(7,694</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>&nbsp;25,550</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>&nbsp;26,974</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>&nbsp;149,357</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Unrealized loss on derivatives, net of tax </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>16,118 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,794 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(16,864</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(6,347</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Gain on sale of shares </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(6,443</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(4,087</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Changes in fair value of financial instruments </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(1,541</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(98</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>307 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>25 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Foreign currency translation losses (gains)
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1,383 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>4,822 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>5,907 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>4,801 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Loss on extinguishment of debt </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2,136 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Loss/(gain) on contribution to joint venture,
      net of tax </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(794</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,930 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(63,623</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Non-recurring consulting expense, net of tax </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,675 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4,647 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Non-recurring tax adjustments </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(30,600</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Adjusted net earnings</B>
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>&nbsp;9,941</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>31,274</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>&nbsp;17,458</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>51,662</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><B>Adjusted EPS</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>0.05</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>0.17</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>0.09</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>0.28</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify><I>EBITDA and adjusted EBITDA </I></P>
<P align=justify>EBITDA represents net earnings before interest, income taxes,
and depreciation. We present EBITDA because we consider it an important
supplemental measure of our performance and believe it is frequently used by
securities analysts, investors and other interested parties in the evaluation of
companies in our industry, many of which present EBITDA when reporting their
results. We believe issuers of &#147;high yield&#148; securities also present EBITDA
because investors, analysts and rating agencies consider it useful in measuring
the ability of those issuers to meet debt service obligations. We believe EBITDA
is an appropriate supplemental measure of debt service capacity, because cash
expenditures on interest are, by definition, available to pay interest, and tax
expense is inversely correlated to interest expense because tax expense goes
down as deductible interest expense goes up; depreciation is a non-cash charge.
</P>
<P align=justify>We present adjusted EBITDA as a further supplemental measure of
our performance and ability to service debt. We prepare adjusted EBITDA by
adjusting EBITDA to eliminate the impact of a number of items we consider
non-recurring or do not consider indicative of our ongoing operating
performance. You are encouraged to evaluate each adjustment and the reasons we
consider them appropriate for supplemental analysis.</P>
<P align=center>32 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_33></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><B><FONT size=4>TASEKO MINES LIMITED </FONT></B></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Management&#146;s Discussion and Analysis </FONT></TD>
  </TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=justify>Adjusted EBITDA is calculated by adding to EBITDA certain items
of expense and deducting from EBITDA certain items of income that we believe are
not likely to recur or are not indicative of our future operating performance
consisting of: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>Unrealized gains/losses on derivative instruments;
  <LI>Gains/losses on the sale of marketable securities;
  <LI>Changes in the fair value of financial instruments;
  <LI>Foreign currency translation gains/losses; and
  <LI>Non-recurring transactions. </LI></UL>
<P align=justify>While some of the adjustments are recurring, we believe the
elimination of the gain on the contribution to the joint venture, loss on the
extinguishment of debt, and gains/losses on the sale of marketable securities do
not reflect the underlying performance of our core mining business and are not
necessarily indicative of future results. Furthermore, unrealized gains/losses
on derivative instruments, foreign currency translation gains/losses and changes
in the fair value of financial instruments are not necessarily reflective of the
underlying operating results for the reporting periods presented. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="1%" align=left>&nbsp;</TD>
    <TD colspan="4"
      align=center style="BORDER-TOP: #000000 1px solid"><B>Three months ended</B>
    </TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="2%"
align=center>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="1%"
align=center>&nbsp;</TD>
    <TD colspan="4" align=center style="BORDER-TOP: #000000 1px solid"><B>Year
      ended</B> </TD>
    <TD style="BORDER-TOP: #000000 1px solid" width="2%"
  align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD width="2%" align=center>&nbsp;</TD>
    <TD width="1%" align=center>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31,</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>($ in thousands, except
      per share amounts) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Net earnings (loss)</B> </TD>
    <TD bgColor=#e6efff width="1%" align=left><B>$</B></TD>
    <TD bgColor=#e6efff width="12%" align=right><B>&nbsp;(7,694</B></TD>
    <TD bgColor=#e6efff width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff width="1%" align=left><B>$</B></TD>
    <TD bgColor=#e6efff width="12%" align=right><B>&nbsp;25,550</B> </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left><B>$</B></TD>
    <TD bgColor=#e6efff width="12%" align=right><B>&nbsp;26,974</B> </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left><B>$</B></TD>
    <TD bgColor=#e6efff width="12%" align=right><B>&nbsp;149,357</B> </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Add: </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Depreciation </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,369 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>4,790 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>12,827 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>12,973 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Interest expense </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4,197 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,058 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>13,957 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4,542 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Interest income </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,712</TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(1,802</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(6,859</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(14,933</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Income tax expense
      (recovery) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(1,501</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>16,757 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>23,782 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>46,504 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>EBITDA</B> </TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>83</TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;46,353 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;70,681 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;198,443 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Adjustments: </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Unrealized (gain)/loss on derivative instruments
    </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>21,929 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,509 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(22,944</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(8,877</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Gain on sale of marketable securities </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(6,443</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(4,087</TD>
    <TD width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Changes in fair value of financial instruments
    </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(1,541</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(98</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>307 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>25 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Foreign currency translation losses </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,383 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4,822 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>5,907 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4,801 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Loss on extinguishment of debt </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,136 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Loss/(gain) on contribution to joint venture </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(1,095</TD>
    <TD width="2%" align=left>) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>3,987 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(98,157</TD>
    <TD width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Non-recurring consulting expense </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>2,279 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>6,322 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Adjusted EBITDA</B>
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>24,133</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>&nbsp;52,491</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>&nbsp;57,817</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>94,284</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=center>33 </P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.8
<SEQUENCE>9
<FILENAME>exhibit99-8.htm
<DESCRIPTION>CONSENT
<TEXT>
<!DOCTYPE HTML PUBLIC "2011-12-31 Taseko Mines Limited 40-F Consent (Edgar).pdf">


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   <TITLE>Taseko Mines Limited: Exhibit 99.8 - Filed by newsfilecorp.com</TITLE>
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  <TR vAlign=top>
    <TD width="43%" align=left >&nbsp;</TD>
    <TD width="32%" align=left nowrap><B>KPMG LLP </B></TD>
    <TD width="10%" align=left nowrap>Telephone </TD>
  <TD width="15%" align=left nowrap>(604) 691-3000 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD width="32%" align=left nowrap><B>Chartered Accountants </B></TD>
    <TD width="10%" align=left nowrap>Fax </TD>
  <TD width="15%" align=left nowrap>(604) 691-3031 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD width="32%" align=left nowrap>PO Box 10426 777 Dunsmuir Street </TD>
    <TD width="10%" align=left nowrap>Internet </TD>
  <TD width="15%" align=left nowrap>www.kpmg.ca </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD width="32%" align=left nowrap>Vancouver BC V7Y 1K3 </TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
  <TD width="15%" align=left nowrap>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD width="32%" align=left nowrap>Canada </TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
  <TD width="15%" align=left nowrap>&nbsp; </TD>
  </TR>
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<P align=center><B><FONT size=4>CONSENT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM</FONT></B></P>
<P align=justify>To the Board of Directors of Taseko Mines Limited</P>
<P align=justify>We consent to the inclusion in this annual report on Form 40-F
of:</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 >- </TD>
    <TD align=left width="95%">
      <P align=justify>our Independent Auditors&#146; Report of Registered Public
      Accounting Firm dated March 29, 2012 on the consolidated balance sheets of
      Taseko Mines Limited (the &#147;Company") and subsidiaries as of December 31,
      2011, December 31, 2010 and January 1, 2010 and the related consolidated
      statements of comprehensive income, changes in equity and cash flows for
      the years ended December 31, 2011 and December 31, 2010; and </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="95%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >- </TD>
    <TD align=left width="95%">
      <P align=justify>our Report of Independent Registered Public Accounting
      Firm dated March 29, 2012 on the Company&#146;s internal control over financial
      reporting as of December 31, 2011 </P></TD></TR></TABLE>
<P align=justify>each of which is contained in this annual report on Form 40-F
of the Company for the fiscal year ended December 31, 2011.</P>
<P align=justify>&nbsp;</P>
<P align=justify><B>\\s\\ KPMG LLP</B></P>
<P align=justify>Chartered Accountants</P>
<P align=justify>March 29, 2012 <BR>Vancouver, Canada</P>
<P align=justify>&nbsp;</P>
<P align=justify>&nbsp;</P>
<TABLE
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  <TR vAlign=top>
    <TD width="30%" align=left >&nbsp;</TD>
    <TD width="46%" align=left nowrap><font size="1">KPMG LLP is a Canadian limited liability
      partnership and a member firm of the KPMG<br>
      network of independent member firms affiliated
      with KPMG International Cooperative <br>
      (&#147;KPMG International&#148;), a Swiss entity. <br>
      KPMG Canada provides services to KPMG LLP. <br>
    </font></TD>
  <TD align=left width="24%" >&nbsp;</TD>
  </TR></TABLE>
<BR>
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<DOCUMENT>
<TYPE>EX-99.9
<SEQUENCE>10
<FILENAME>exhibit99-9.htm
<DESCRIPTION>CONSENT
<TEXT>
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   <TITLE>Taseko Mines Limited: Exhibit 99.9 - Filed by newsfilecorp.com</TITLE>
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<P align=center><IMG
src="exhibit99-9x1x1.jpg"
border=0></P> <BR>
<P align=justify>March 29, 2012</P>
<P align=justify>VIA EDGAR </P>
<P align=justify>United States Securities and Exchange Commission </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >Re: </TD>
    <TD align=left width="95%">Taseko Mines Limited (the "<B>Company</B>")
  </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="95%">Annual Report on Form 40-F </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="95%">Consent of Expert </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="95%"
    >&nbsp;</TD></TR></TABLE>
<P align=justify>This letter is provided in connection with the Company's Form
40-F annual report for the year ended December 31, 2011 (the &#147;<B>Annual
Report</B>&#148;) to be filed by the Company with the United States Securities and
Exchange Commission (the &#147;SEC&#148;). The Annual Report incorporates by reference the
Annual Information Form of the Company for the year ended December 31, 2011.</P>
<P align=justify>I hereby consent to the use of my name in connection with
reference to my involvement in the preparation of the following technical
reports (the "<B>Technical Reports</B>"):</P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>&#147;Technical Report on the 344 million tonne increase in mineral reserves at
  the Prosperity Gold &#150; Copper Project&#148; dated December 17, 2009 </P>
  <LI>
  <P>&#147;Technical Report on the 357 Million Ton Increase in Mineral Reserves at
  the Gibraltar Mine&#148; dated June 24, 2011 </P></LI></UL>
<P align=justify>and to references to the Technical Reports, or portions
thereof, in the Annual Report and to the inclusion and incorporation by
reference of the information derived from the Technical Reports in the Annual
Report.</P>
<P align=justify>Yours truly, </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>/s/ S. Jones </TD>
    <TD align=left width="50%" >&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD align=left width="50%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Scott Jones, P.Eng., Vice President, Engineering</B> </TD>
    <TD align=left width="50%" >&nbsp;</TD></TR></TABLE><BR>
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<DOCUMENT>
<TYPE>EX-99.10
<SEQUENCE>11
<FILENAME>exhibit99-10.htm
<DESCRIPTION>CONSENT
<TEXT>
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   <TITLE>Taseko Mines Limited: Exhibit 99.10 - Filed by newsfilecorp.com</TITLE>
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<TABLE
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cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center>Ronald G. Simpson, P.Geo. </TD></TR>
  <TR vAlign=bottom>
    <TD align=center>GeoSim Services Inc. </TD></TR>
  <TR vAlign=bottom>
    <TD align=center>1975 Stephens Street </TD></TR>
  <TR vAlign=top>
    <TD align=center>Vancouver, B.C. Canada, V6K 4M7 </TD></TR>
  <TR vAlign=bottom>
    <TD align=center>Telephone: 604 733-7970 </TD></TR>
  <TR vAlign=bottom>
    <TD align=center>Email: rgs@uniserve.com </TD></TR></TABLE>
<P align=justify>March 29, 2012 </P>
<P align=justify>VIA EDGAR</P>
<P align=justify>United States Securities and Exchange Commission</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>Re: </TD>
    <TD align=left width="95%">Taseko Mines Limited (the "<B>Company</B>")
  </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="95%">Annual Report on Form 40-F </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="95%">Consent of Expert </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="95%">&nbsp;</TD></TR></TABLE>
<P align=justify>This letter is provided in connection with the Company's Form
40-F annual report for the year ended December 31, 2011 (the &#147;<B>Annual
Report</B>&#148;) to be filed by the Company with the United States Securities and
Exchange Commission (the &#147;SEC&#148;). The Annual Report incorporates by reference the
Annual Information Form of the Company for the year ended December 31, 2011. I
hereby consent to the use of my name in connection with reference to my
involvement in the preparation of the following technical reports (the
"<B>Technical</B> <B>Reports</B>"): </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>&#147;Technical Report Aley Carbonatite Niobium Project&#148; dated October 26, 2011
  </P>
  <LI>
  <P>&#147;Technical Report Aley Carbonatite Niobium Project&#148; dated March 28, 2012
  </P></LI></UL>
<P align=justify>and to references to the Technical Reports, or portions
thereof, in the Annual Report and to the inclusion and incorporation by
reference of the information derived from the Technical Reports in the Annual
Report. </P><IMG src="exhibit99-10x1x1.jpg" border=0> <BR>
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<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>12
<FILENAME>exhibit99-5x1x1.jpg
<DESCRIPTION>GRAPHIC
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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
