Mr. Stuart McDonald reports

TASEKO RECEIVES APPROVALS FOR US$100 MILLION IN ADDITIONAL FINANCING FOR FLORENCE COPPER

Taseko Mines Ltd. has provided an update on two additional financing transactions, totalling $100-million (U.S.), for its Florence copper project in Arizona, United States. The company has been notified that Taurus Mining Royalty Fund LP has obtained investment committee approval for a $50-million (U.S.) royalty, and Societe Generale has received credit approval for a $50-million (U.S.) senior secured debt facility. Upon closing and satisfaction of conditions precedent, proceeds from these project-level financings will be available to Florence copper to finance the construction and development of the commercial production facility.

Stuart McDonald, president and chief executive officer of Taseko, commented: "The Taurus royalty and the project loan facility from Societe Generale complement the previously announced commitments from Mitsui and Bank of America. A total of $175-million (U.S.) from these four well-regarded industry participants is a strong endorsement of Florence copper's technical merits, attractive economics and favourable environmental attributes.

"Florence Copper will supply 85 million pounds of copper, now defined a critical material by the Department of Energy, to the U.S. domestic market. With the permitting process complete and these new financings expected to close in the coming months, we can now begin construction of the commercial facility at Florence," concluded Mr. McDonald.

Additional Florence financing details

Florence project royalty

The $50-million (U.S.) royalty has received investment committee approval from Taurus. The royalty will be for 1.95 per cent of the gross revenue from the sale of all copper from Florence copper for the life of mine. The $50-million (U.S.) of consideration is payable upon the satisfaction of customary conditions precedent for closing. The royalty will be registered on title and will otherwise be unsecured.

Senior secured project loan facility

The $50-million (U.S.) senior secured debt facility will be provided by Societe Generale subject to completion of definitive documentation and the satisfaction of conditions precedent. The facility also contains a $25-million (U.S.) uncommitted accordion feature which can be exercised by the company in the future to increase its size to $75-million (U.S.) if needed, subject to additional credit approval at that time.

The maturity date of the Florence debt facility will be five years from the date of closing, with no scheduled principal repayments until the maturity date, when any outstanding amounts will be repayable. The facility contains covenants and restrictions customary for a project loan facility. The facility will have a first-lien charge over the assets of Florence and an unsecured guarantee from the company until completion. Societe Generale's credit approval will be formalized in a commitment letter containing customary conditions.

Endeavour Financial is acting as the company's financial adviser in connection with these transactions.

We seek Safe Harbor.