Mr. Stuart McDonald reports

TASEKO REPORTS STRONG FOURTH QUARTER FINANCIAL PERFORMANCE AND $190 MILLION OF ADJUSTED EBITDA FOR 2023

Taseko Mines Ltd. had full-year-2023 adjusted EBITDA* (earnings before interest, taxes, depreciation and amortization) of $190-million and earnings from mining operations before depletion and amortization* of $207-million. Revenues for 2023 were $525-million, 34 per cent higher than the prior year as a result of improved copper production and an increase in the company's effective interest in the Gibraltar mine, from 75 per cent to 87.5 per cent, in March, 2023. Net income for the year was $83-million (29 cents per share) and adjusted net earnings* were $44-million (15 cents per share).

In the fourth quarter, adjusted EBITDA* was $69-million and earnings from mining operations before depletion and amortization* were $73-million. Net income for the fourth quarter was $67-million (23 cents per share) and adjusted net earnings* were $24-million (eight cents per share).

Fourth quarter copper production from Gibraltar was 34 million pounds and for the full-year-2023 production was 123 million pounds. Annual production was above the company's original guidance and also 26 per cent higher than in 2022. Strong production supported lower total operating cash costs (C1)* of $1.91 (U.S.) per pound for the fourth quarter and $2.37 (U.S.) per pound for the year. Molybdenum production for the fourth quarter and year was 369,000 pounds and 1.2 million pounds, respectively.

Stuart McDonald, president and chief executive officer of Taseko, commented: "The Gibraltar mine finished a successful year with another strong production quarter. The lower benches of the Gibraltar pit continued to deliver the quality ore we expected, with copper grades averaging 0.27 per cent for the period. This resulted in strong earnings and $63-million of operating cash flow in the fourth quarter. For the full year 2023, the average copper grade was 0.25 per cent, which is in line with Gibraltar's life-of-mine reserve grade, and led to significantly improved copper production and financial performance compared to 2022.

"At our Florence copper project, we achieved a major milestone in the fourth quarter, as the final underground injection control permit became effective, successfully concluding the EPA's lengthy permitting process. We also announced two Florence project financings totalling $100-million (U.S.), from Taurus Mining Royalty Fund and Societe Generale, which supplement the previously announced financings from Mitsui and Bank of America.

"We're now moving forward with construction of the commercial production facility at Florence. Initial activities have focused on site preparations, earthworks and civil work for the wellfield, as well as hiring additional site personnel for the construction and operations teams. Wellfield drilling commenced in February and construction of the SX/EW plant and other surface infrastructure will begin in the second quarter. First copper production expected in fourth quarter 2025."

Mr. McDonald added: "Taseko is in a very unique position heading into 2024 with a fully permitted, low-cost project that will provide 80-per-cent growth to our North American copper production profile in the coming years. Our Gibraltar mine is expected to continue to benefit from Gibraltar pit ore, which will be the main source of mill feed for the first half of this year, before the transition to the Connector pit. In January, we had mill downtime in concentrator No. 2 for a planned major component replacement, which was successfully completed in the scheduled time frame. In the second quarter, concentrator No. 1 will be shut down for roughly three weeks for the in-pit crusher relocation and other mill maintenance. Factoring in the additional down time in 2024, we expect Gibraltar to produce approximately 115 million pounds of copper for the year, with quarterly production less variable than in recent years," concluded Mr. McDonald.

2023 annual review:

• Annual cash flow from operations was $151.1-million and net income was $82.7-million (29 cents per share) for the year.
• Earnings from mining operations before depletion and amortization* were $207.4-million, adjusted EBITDA* was $190.1-million and adjusted net income* was $44.4-million (15 cents per share).
• Total operating costs (C1)* for the year were $2.37 (U.S.) per pound produced.
• The Gibraltar mine produced 122.6 million pounds of copper and 1.2 million pounds of molybdenum in 2023. Copper recoveries averaged 82.6 per cent and copper head grades were 0.25 per cent.
• Gibraltar sold 120.7 million pounds of copper for the year (100-per-cent basis), which contributed to revenue for Taseko of $525.0-million, the highest annual revenue Taseko has ever recorded. Average realized copper prices were $3.84 (U.S.) per pound for the year.
• On March 15, 2023, Taseko acquired 50 per cent of Cariboo Copper Corp., increasing its effective interest from 75 per cent to 87.5 per cent in the Gibraltar mine.
• In September, the U.S. Environmental Protection Agency (EPA) issued the final underground injection control (UIC) permit for the Florence copper project and the permit became effective on Oct. 31, 2023. The company now has all key permits in place and is commencing construction of the commercial production facility at Florence.

Fourth quarter review:

• Fourth quarter cash flow from operations was $62.8-million and net income was $67.4-million (23 cents per share) for the quarter.
• Earnings from mining operations before depletion and amortization* were $73.1-million, adjusted EBITDA* was $69.1-million, and adjusted net income* was $24.1-million (eight cents per share).
• Gibraltar produced 34.2 million pounds of copper for the quarter. Average head grades were 0.27 per cent and copper recoveries were 82.2 per cent for the quarter.
• Gibraltar sold 35.9 million pounds of copper in the quarter (100-per-cent basis) at an average realized copper price of $3.75 (U.S.) per pound.
• Total operating costs (C1)* for the quarter were $1.91 (U.S.) per pound produced.
• Construction of the commercial production facility at Florence is advancing with recent site activities focused on site preparations, earthworks and civil work for the commercial wellfield. Wellfield drilling commenced in February and construction of the SX/EW plant and associated surface infrastructure is scheduled to get under way in the second quarter of 2024.

* Non-GAAP (generally accepted accounting principles) performance measures.

Fourth quarter review -- continued:

• During the quarter, the company closed the first Florence project debt facility with Bank of America for gross proceeds of $25-million (U.S.), secured against the SX/EW plant and other equipment.
• The company had a cash balance of $96.5-million and has approximately $176-million of available liquidity at Dec. 31, 2023.
• On Feb. 2, 2024, the company closed its $50-million (U.S.) royalty with Taurus Mining Royalty Fund LP and the company also received the first $10-million (U.S.) of the $50-million (U.S.) Mitsui copper stream financing in January, 2024.

On March 15, 2023, the company increased its effective interest in the Gibraltar mine from 75 per cent to 87.5 per cent through the acquisition of a 50-per-cent interest in Cariboo Copper Corp. The financial results reported in this MD&A (management's discussion and analysis) include the company's 87.5-per-cent proportionate share of Gibraltar mine income and expenses for the period March 15, 2023, to Dec. 31, 2023 (prior to March 15, 2023 -- 75 per cent).

Operations analysis

Full-year results

Gibraltar produced 122.6 million pounds of copper for the year, compared with 97.0 million pounds in 2022. The higher production was attributable to improved ore grades and recoveries as the lower benches of the Gibraltar pit provided the expected higher grades and more consistent mineralized zones. Copper grades for the year averaged 0.25 per cent copper, compared with 0.20 per cent in 2022, and copper recoveries for 2023 were 82.6 per cent, compared with 79.5 per cent in 2022.

A total of 88.1 million tons were mined in the year, compared with 88.7 million tons mined in 2022. The strip ratio of 1.3 was lower than the prior year as mining operations were focused in the Gibraltar pit in 2023, which has a lower strip ratio. Ore stockpiles also increased by 9.1 million tons, including oxide ore from the upper benches of the Connector pit.

Total site costs* at Gibraltar of $430.7-million (which includes capitalized stripping of $55.6-million) was $28.3-million higher than 2022, primarily due to higher repairs and maintenance costs and labour costs, partially offset by lower diesel costs and lower grinding media costs.

Molybdenum production was 1.2 million pounds in the year, compared with 1.1 million pounds in the prior year. Molybdenum prices strengthened in 2023 with an average molybdenum price of $24.19 (U.S.) per pound, an increase of 29 per cent compared with the 2022 average price of $18.73 (U.S.) per pound.

Off-property costs per pound produced* were 38 U.S. cents for the year, which is two U.S. cents higher than the prior year, primarily due to an increase in treatment and refining charges (TCRC) rates.

Total operating costs per pound produced (C1)* were $2.37 (U.S.) for the year, compared with $2.98 (U.S.) in the prior year.

Operations analysis -- continued

Fourth quarter results

Gibraltar produced 34.2 million pounds of copper for the quarter, which was generally consistent with the prior quarter. Slightly lower throughput of 7.6 million tons was offset by higher grade compared with the prior quarter. Copper grades in the fourth quarter were 0.27 per cent, higher than recent quarters and in line with management expectations as the lower benches of the Gibraltar pit provided higher grades and more consistent mineralized zones.

Copper recoveries in the fourth quarter were 82.2 per cent and were impacted by performance in concentrator No. 2 prior to a major component replacement that was completed in January.

Total site costs* at Gibraltar of $110.6-million (which includes capitalized stripping of $31.9-million) were $8.6-million higher than the prior quarter due to higher labour cost, grinding media cost, and timing of repairs and maintenance. Site operating cost per ton milled* was $9.72 and was lower than the previous quarters in 2023, mainly due to higher capitalized stripping costs.

Molybdenum production was 369,000 pounds in the fourth quarter. At an average molybdenum price of $18.64 (U.S.) per pound and the impact of negative price adjustments of $1.8-million for Taseko's 87.5-per-cent share, molybdenum generated a byproduct credit per pound of copper produced of 13 U.S. cents in the fourth quarter.

Off-property costs per pound produced* were 45 U.S. cents for the fourth quarter, reflecting higher sales, higher ocean freight costs (including bunker fuel) and increased TCRCs compared with the same quarter in the prior year.

Total operating costs per pound produced (C1)* were $1.91 (U.S.) for the quarter and were lower than the previous quarter due to increased waste stripping costs being capitalized from the Connector pit.

Gibraltar outlook

The Gibraltar pit will continue to be the main source of mill feed for the first half of 2024 before mining of ore transitions into the Connector pit in the second half of the year. Stripping activity will continue to be focused in the Connector pit and further oxide ore from this pit is expected to be added to the leach pads in 2024. The restart of the SX/EW facility at the Gibraltar mine is expected in 2026.

Concentrator No. 2 had additional downtime in January, 2024, for a planned major component replacement, and concentrator No. 1 is scheduled to be down for three weeks in June for the in-pit crusher relocation and other mill maintenance. After taking into account the reduced mill availability from these two scheduled down times, total copper production at Gibraltar for 2024 is expected to be approximately 115 million pounds.

The estimated remaining capital cost of the crusher relocation project is $10-million and no other significant capital projects are planned for Gibraltar in 2024.

The company continues to purchase options to provide copper price and fuel price protection. Currently, the company has copper put contracts in place that secure a minimum copper price of $3.25 (U.S.) per pound for 42 million pounds of copper and diesel call options for 12.5 million litres of diesel, covering the first half of 2024.

Florence copper

On Sept. 14, 2023, the company received the final UIC permit from the EPA and the UIC permit became effective on Oct. 31, 2023. The company now has all the key permits in place for the commercial production facility and is commencing construction.

Site activities to date have focused on site preparations, earthworks and civil work for the commercial wellfield, and the hiring of additional management and site personnel positions for the construction and operations teams. The initial drilling contracts have been awarded and finalized, and drilling of the commercial facility wellfield commenced in February.

The company recently executed a fixed-price contract with the general contractor for construction of the SX/EW plant and associated surface infrastructure, which is scheduled to commence in the second quarter of 2024. All the major plant components are on site and the early work on detailed engineering and procurement of long-lead items has significantly derisked the construction schedule. First copper production is expected in the fourth quarter of 2025.

The company has advanced Florence project level financing to finance construction. In the fourth quarter, the company closed a $25-million (U.S.) equipment loan with Bank of America. In January, 2024, the company received the initial $10-million (U.S.) deposit from the $50-million (U.S.) streaming transaction with Mitsui. The remaining amounts will be paid on a quarterly basis in $10-million (U.S.) instalments. On Feb. 2, 2024, the company closed a $50-million (U.S.) royalty with Taurus, which was financed in one lump-sum payment at that time. Additionally, in October, 2023, the Florence project received a credit committee approved commitment from Societe Generale for a $50-million (U.S.) project debt facility with an additional $25-million (U.S.) uncommitted accordion feature.

In March, 2023, the company announced the results of recent technical work and updated economics for the Florence copper project. The company has a technical report, entitled, "NI 43-101 Technical Report Florence Copper Project, Pinal County, Arizona," dated March 30, 2023, on SEDAR+. The technical report was prepared in accordance with National Instrument 43-101 and incorporates updated capital and operating costs (with a basis as of Q3 2022) for the commercial production facility and refinements made to the operating models, based on the production test facility (PTF) results.

Florence copper project highlights:

• Net present value of $930-million (U.S.) (after tax at a discount rate of 8 per cent);
• Internal rate of return of 47 per cent (after tax);
• Payback period of 2.6 years;
• Operating costs (C1) of $1.11 (U.S.) per pound of copper;
• Annual production capacity of 85 million pounds of LME Grade A cathode copper;
• 22-year mine life;
• Total life-of-mine production of 1.5 billion pounds of copper;
• Total estimated initial capital cost of $232-million (U.S.) remaining;
• Long-term copper price of $3.75 (U.S.) per pound.

Long-term growth strategy

Taseko's strategy has been to grow the company by acquiring and developing a pipeline of complementary projects focused on copper in stable mining jurisdictions. The company continues to believe this will generate long-term returns for shareholders. its other development projects are located in British Columbia.

Yellowhead copper project

Yellowhead Mining Inc. has an 817-million-tonne reserve and a 25-year mine life with a pretax net present value of $1.3-billion at a discount rate of 8 per cent using a price of $3.10 (U.S.) per pound of copper based on the company's 2020 NI 43-101 technical report. Capital costs of the project are estimated at $1.3-billion over a two-year construction period. During the first five years of operation, the copper equivalent grade will average 0.35 per cent, producing an average of 200 million pounds of copper per year at an average C1* cost, net of byproduct credit, of $1.67 (U.S.) per pound of copper produced. The Yellowhead copper project contains valuable precious metal byproducts with 440,000 ounces of gold and 19 million ounces of silver with a life-of-mine value of over $1-billion at current prices.

The company is preparing to advance into the environmental assessment process and is undertaking some additional engineering work in conjunction with continuing engagement with local communities, including first nations. The company is also collecting baseline data and modelling, which will be used to support the environmental assessment and permitting of the project.

New Prosperity gold-copper project

In late 2019, the Tilhqot'in Nation, as represented by the Tilhqot'in national government, and Taseko Mines entered into a confidential dialogue, with the involvement of the Province of British Columbia, seeking a long-term resolution of the conflict regarding Taseko's proposed copper-gold mine previously known as New Prosperity, acknowledging Taseko's commercial interests and the Tilhqot'in Nation's opposition to the project.

This dialogue has been supported by the parties' agreement, beginning December, 2019, to a series of standstill agreements on certain outstanding litigation and regulatory matters relating to Taseko's tenures and the area in the vicinity of Teztan Biny (Fish Lake).

The dialogue process has made meaningful progress in recent months but is not complete. The Tilhqot'in Nation and Taseko acknowledge the constructive nature of discussions, and the opportunity to conclude a long-term and mutually acceptable resolution of the conflict that also makes an important contribution to the goals of reconciliation in Canada.

In March, 2024, Tilhqot'in and Taseko formally reinstated the standstill agreement for a final term, with the goal of finalizing a resolution before the end of this year.

Aley Niobium project

Environmental monitoring and product marketing initiatives on the Aley niobium project continue. The converter pilot test is continuing and is providing additional process data to support the design of the commercial process facilities and will provide final product samples for marketing purposes. The company has also initiated a scoping study to investigate the potential production of niobium oxide at Aley to supply the growing market for niobium-based batteries.

Environmental, social and governance (ESG)

Nothing is more important to Taseko than the safety, health and well-being of its workers and their families. Taseko places a high priority on the continuous improvement of performance in the areas of employee health and safety at the workplace and protection of the environment.

The full report is available on the company's website.

Taseko's 2023 ESG report will be published in the second quarter of 2024.

Market review

Prices (U.S. dollar per pound for commodities) (source data: Bank of Canada, Platts Metals and London Metals Exchange)

Copper prices are currently around $3.90 (U.S.) per pound, compared with $3.84 (U.S.) per pound at Dec. 31, 2023. Short-term volatility in copper prices is expected to continue in the near term due to macroeconomic uncertainty, geopolitical events and recessionary risks from higher interest rates, which is causing a slowdown in industrial demand.

Electrification of transportation and the focus on government investment in construction and infrastructure, including initiatives focused on the renewable energy, electrification and meeting net zero targets by 2050, are inherently copper intensive and supports higher copper prices in the longer term. According to S&P Global's copper market outlook report published in July, 2022, titled, "The Future of Copper: Will the looming supply gap short-circuit the energy transition?," global demand for copper is projected to double from approximately 25 million metric tonnes today to roughly 50 million metric tonnes by 2035, a record high that will be sustained and continue to grow to 53 million metric tonnes by 2050, in order to achieve net-zero targets. All of these factors continue to provide unprecedented catalysts for higher copper prices in the future as new mine supply lags growth in copper demand.

Approximately 4 per cent of the company's revenue is made up of molybdenum sales. During the fourth quarter of 2023, the average molybdenum price was $18.64 (U.S.) per pound. Molybdenum prices are currently around $20 (U.S.) per pound. Molybdenum demand and prices have been driven by supply challenges at large South American copper mines that produce molybdenum as a byproduct. Continued strong demand from the energy sector has boosted demand for alloyed steel products, as well as growing demand from the renewables and military sectors. The company's sales agreements specify molybdenum pricing based on the published Platts Metals reports.

Approximately 80 per cent of the Gibraltar mine's costs are Canadian dollar denominated and therefore, fluctuations in the Canadian/U.S.-dollar exchange rate can have a significant effect on the company's financial results.

The company will host a telephone conference call and live webcast on Friday, March 8, 2024, at 11 a.m. Eastern Time (8 a.m. Pacific Time), to discuss these results. After opening remarks by management, there will be a question-and-answer session open to analysts and investors. To join the conference call without operator assistance, you may preregister on-line to receive an instant automated callback just prior to the start of the conference call. Otherwise, the conference call may be accessed by dialling 888-390-0546 toll-free or 416-764-8688 in Canada, or on-line at the company's website.

The conference call will be archived for later playback until March 15, 2024, and can be accessed by dialling 888-390-0541 toll-free or 416-764-8677 in Canada, or on-line at the company's website, using the entry code 758609 followed by the pound key.

Non-GAAP performance measures

This document includes certain non-GAAP performance measures that do not have a standardized meaning prescribed by IFRS (international financial reporting standards). These measures may differ from those used by, and may not be comparable with 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's performance. These measures have been derived from the company's financial statements and applied on a consistent basis.

We seek Safe Harbor.