Mr. Stuart McDonald reports

TASEKO REPORTS FIRST QUARTER 2024 OPERATIONAL PERFORMANCE AND $50 MILLION OF ADJUSTED EBITDA

Taseko Mines Ltd. had first quarter 2024 adjusted EBITDA* (earnings before interest, taxes, depreciation and amortization) of $50-million and earnings from mining operations before depletion and amortization* of $53-million, 38 per cent and 29 per cent higher than the same quarter in 2023, respectively. Revenues for the first quarter were $147-million. Net income for the quarter was $19-million (seven cents per share) and adjusted net earnings* were $8-million (three cents per share).

This news release should be read with the company's financial statements and management's discussion and analysis (MD&A), available on the company's website and filed on SEDAR+. Except where otherwise noted, all currency amounts are stated in Canadian dollars. In March, 2024, Taseko acquired the remaining 12.5-per-cent interest and now owns 100 per cent of the Gibraltar mine, located north of the city of Williams Lake in south-central British Columbia. Production and sales volumes stated in this news release are on a 100-per-cent basis unless otherwise indicated.

In the first quarter, Gibraltar produced 30 million pounds of copper and 247,000 pounds of molybdenum. Mill throughput in the quarter was 7.7 million tons, or 84,400 tons per day, processing an average grade of 0.24 per cent copper. Total operating cash costs (C1)* for the quarter were $2.46 (U.S.) per pound of copper.

Stuart McDonald, president and chief executive officer of Taseko, commented: "Gibraltar operations performed generally in line with plan in the first quarter, generating strong margins on a realized copper sales price of $3.89 (U.S.) per pound. The operating team successfully completed a mill component replacement in January and following this maintenance downtime, mill throughput averaged 90,000 tons per day, 6 per cent above the design capacity. The gradual transition to the Connector pit will continue over the next few months and the in-pit crusher relocation is planned for the second quarter.

"In late March, we acquired the remaining 12.5-per-cent interest in Gibraltar and now own 100 per cent of the mine. This transaction is a real positive for Taseko, providing immediate cash flow and production growth. The acquisition cost is spread out over 10 years, with the next scheduled payment in 2026, which allows us to focus our financial resources on Florence development. As part of the transaction, we also acquired additional concentrate offtake rights and, with smelter treatment costs at record lows, the timing could not have been better. This additional offtake has now been sold at negative treatment costs, resulting in cost savings of $10-million in the second half of 2024," continued Mr. McDonald.

"At Florence copper, initial construction and wellfield development activities are progressing smoothly. There are now three drill rigs operating on the commercial facility wellfield, with a fourth drill to be mobilized in May. A total of 10 new production wells have been drilled to date. Site preparation and earthworks for the SX/EW plant area are also under way and construction of the plant is expected to begin later this quarter. It is an exciting time for the company as we move closer to commercial operations at Florence.

"In April, we further strengthened our financial position through the successful refinancing of our senior secured notes. The maturity of the notes has been pushed out to 2030, and the upsizing provides additional cash proceeds and financial flexibility. With the bond refinancing complete, 100-per-cent ownership of Gibraltar and the copper price today at $4.49 (U.S.) per pound, our business is much improved from just a few months ago," concluded Mr. McDonald.

* Non-GAAP (generally accepted accounting principle) performance measure.

First quarter review:

• First quarter cash flow from operations was $59.6-million and net income was $18.9-million (seven cents per share) for the quarter.
• Earnings from mining operations before depletion and amortization* were $52.8-million, adjusted EBITDA* was $49.9-million, and adjusted net income* was $7.7-million (three cents per share).
• Gibraltar produced 29.7 million pounds of copper for the quarter. Average head grades were 0.24 per cent and copper recoveries were 79 per cent for the quarter.
• Gibraltar sold 31.7 million pounds of copper in the quarter (100-per-cent basis) at an average realized copper price of $3.89 (U.S.) per pound.
• Total operating costs (C1)* for the quarter were $2.46 (U.S.) per pound produced.
• On March 25, 2024, the company completed its acquisition of the remaining 12.5-per-cent interest in Gibraltar and now owns 100 per cent. The company paid $5-million on closing, with the remaining amounts payable over a 10-year period with the next scheduled payment in March, 2026.
• Construction of the commercial production facility at Florence is advancing with recent site activities focused on site preparations and earthworks for the commercial wellfield and plant area. Wellfield drilling commenced in February and 10 new production wells have been drilled to date.
• During the quarter, the company received the first $10-million (U.S.) deposit from Mitsui & Co. (U.S.A.) Inc. for its copper stream financing and closed its $50-million (U.S.) royalty financing with Taurus Mining Royalty Fund LP. The company had a cash balance of $158-million and has approximately $239-million of available liquidity at March 31, 2024.
• On April 23, 2024, the company completed an offering of $500-million (U.S.) aggregate principal amount of 8.25 per cent senior secured notes due May 1, 2030. A portion of the proceeds were used to redeem the outstanding $400-million (U.S.) 7 per cent senior secured notes due on Feb. 15, 2026. The remaining proceeds, net of transaction costs, call premium and accrued interest, are approximately $110-million.

On March 15, 2023, the company increased its effective interest in Gibraltar from 75 per cent to 87.5 per cent through the acquisition of a 50-per-cent interest in Cariboo Copper Corp. from Sojitz Corp. On March 25, 2024, the company increased its effective interest in Gibraltar from 87.5 per cent to 100 per cent through the acquisition of the remaining 50-per-cent interest in Cariboo from Dowa Metals & Mining Co. Ltd. and Furukawa Co. Ltd.

The financial results reported in this news release include the company's 87.5-per-cent proportionate share of Gibraltar mine income and expenses for the period from March 16, 2023, to March 24, 2024 (prior to March 15, 2023 -- 75 per cent), and 100 per cent of Gibraltar mine income and expenses for the period from March 25, 2024, to March 31, 2024.

The company finalized the accounting for the acquisition of its 50-per-cent interest in Cariboo from Sojitz and the related 12.5-per-cent interest in Gibraltar in the fourth quarter of 2023. In accordance with the accounting standards for business combinations, the comparable financial statements as of March 31, 2023, and for the three months then ended have been revised to reflect the changes in finalizing the consideration paid and the allocation of the purchase price to the assets and liabilities acquired.

Operations analysis

First quarter review

Gibraltar produced 29.7 million pounds of copper for the quarter. Copper production and mill throughput in the quarter were impacted by concentrator No. 2 downtime in January for a planned major component replacement which reduced operating time by 10 days.

Copper head grades of 0.24 per cent were in line with management expectations. Copper recoveries in the first quarter were 79 per cent, lower than the recent quarters due to lower head grades and increased milling of partially oxidized material.

A total of 22.8 million tons were mined in the first quarter. The strip ratio of 1.7 was higher than the recent quarters as stripping continues in the Connector pit and 2.0 million tons of oxide ore from the upper benches of the Connector pit were also added to the heap leach pads in the period. There were 1.1 million tons in mill feed from ore stockpiles.

Operations analysis -- continued

Total site costs* at Gibraltar of $109.5-million (which includes capitalized stripping of $18.5-million) were comparable with the previous quarter.

Molybdenum production was 247,000 pounds in the first quarter. At an average molybdenum price of $19.93 (U.S.) per pound, molybdenum generated a byproduct credit per pound of copper produced of 17 U.S. cents in the first quarter.

Off-property costs per pound produced* were 42 U.S. cents for the first quarter, reflecting higher copper sales volumes relative to production volumes and additional trucking costs for concentrate movements compared with the same quarter in the prior year.

Total operating costs per pound produced (C1)* was $2.46 (U.S.) for the quarter, compared with $2.94 (U.S.) in the prior-year quarter as shown in the attached bridge graph.

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 heap leach pads this year. Management is currently reviewing the potential to restart Gibraltar's SX/EW facility next year.

Concentrator No. 1 is scheduled for three weeks additional downtime in the second quarter for the in-pit crusher relocation and other mill maintenance. After taking into account the reduced mill availability for scheduled downtimes, 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 this year.

With the component replacement in concentrator No. 2 completed in January, 2024, the company is finalizing its insurance claim for associated property damage and business interruption as a result of the component failure. This insurance claim is expected to be finalized in the coming months.

The company has recently tendered Gibraltar concentrate to various customers for the remainder of 2024 and for significant tonnages in 2025 and 2026. In 2023, treatment and refining costs (TCRCs) accounted for approximately 17 U.S. cents per pound of off-property costs. With these recently awarded offtake contracts, the company expects off-property costs to reduce by approximately 10 U.S. cents to 20 U.S. cents per pound from the second half of 2024 through 2026 due to these fixed, lower TCRCs.

The company has a prudent hedging program in place to protect a minimum copper price during the Florence construction period. Currently, the company has copper put contracts to secure a minimum copper price of $3.25 (U.S.) per pound for 21 million pounds of copper covering the second quarter of 2024, copper collar contracts that secure a minimum copper price of $3.75 (U.S.) per pound for 42 million pounds of copper covering the second half of 2024 and copper collar contracts that secure a minimum copper price of $4 (U.S.) per pound for 108 million pounds of copper for 2025. The copper collar contracts also have ceiling prices between $5 (U.S.) and $5.40 (U.S.) per pound.

Acquisition of remaining 12.5-per-cent interest in Gibraltar

On March 25, 2024, the company entered into an agreement to acquire the remaining 12.5-per-cent interest in Gibraltar from Dowa and Furukawa. Under the terms of the agreement, Taseko will acquire Dowa and Furukawa's shares in Cariboo and will then own 100 per cent of Cariboo shares and have an effective 100-per-cent interest in Gibraltar.

The acquisition price consists of a minimum amount of $117-million, payable over a period of 10 years, and potential contingent payments depending on copper prices and Gibraltar's cash flow. An initial $5-million was paid to Dowa and Furukawa ($2.5-million each) on closing and the remaining amounts will be settled with annual payments commencing in March, 2026.

The annual payments will be based on the average LME (London Metal Exchange) copper price of the previous calendar year, subject to an annual cap based on a percentage of cash flow from Gibraltar. At copper prices below $4 (U.S.) per pound, the annual payment will be $5-million, increasing pro rata to a maximum annual payment of $15.25-million at copper prices of $5 (U.S.) per pound or higher. The annual payments also can not exceed 6.25 per cent of Gibraltar's annual cash flow for the 2025 to 2028 calendar years and 10 per cent of Gibraltar's cash flow for the 2029 to 2033 calendar years. Any outstanding balance on the minimum acquisition amount of $117-million will be repayable in a final balloon payment in March, 2034.

Total consideration is capped at $142-million, limiting the contingent consideration to a maximum of $25-million. In addition, Taseko has the option to settle the full acquisition price at any time prior to 2029 by making total payments of $117-million.

The company's minimum payment obligations for the acquisition are in the form of loans from Dowa and Furukawa to Cariboo. The loans are non-interest bearing, are guaranteed by Taseko and a portion of the loans is secured by Cariboo's 25-per-cent joint venture interest in Gibraltar. The loans contain minimum protective covenants, including the requirement not to amend the joint venture agreement for Gibraltar or sell Cariboo's 25-per-cent interest in the joint venture.

Under the Cariboo offtake arrangements entered into in 2010, Dowa and Furukawa were entitled to receive 30 per cent of Gibraltar's copper concentrate offtake for the life of mine at benchmark terms. Upon closing of this acquisition, the Cariboo offtake agreement was terminated and Taseko retained full marketing rights for 100 per cent of Gibraltar's concentrate offtake going forward.

Florence copper project

The company has all the key permits in place for the commercial production facility at the Florence copper project and construction has commenced. All the major SX/EW plant components are on site and previous work on detailed engineering and procurement of long-lead items has derisked the construction schedule. First copper production is expected in the fourth quarter of 2025.

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 2023 technical report was prepared in accordance with National Instrument 43-101 and incorporated the results of testwork from the production test facility (PTF), as well as updated capital and operating costs (Q3 2022 basis) for the commercial production facility.

Project highlights based on the 2023 technical report:

• Net present value of $930-million (U.S.) (at $3.75 (U.S.) copper price, after-tax 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;
• Remaining initial capital cost of $232-million (U.S.) (Q3 2022 basis).

Site activities in the first quarter of 2024 have focused on site preparations and earthworks for the commercial wellfield and plant area, and the hiring of additional personnel for the construction and operations teams.

Drilling of the commercial facility wellfield commenced in February and there are currently three drills operating, with a fourth drill to be mobilized in May. At the end of April, a total of 10 new production wells have been drilled and a total of 90 new production wells will be drilled during the construction of the commercial facility.

The company has a fixed-price contract with the general contractor for construction of the SX/EW plant and associated surface infrastructure. The general contractor continues their mobilization. Plant earthworks are under way with a focus on bulk excavation of the various facility ponds and preparations for the initial concrete pour in the plant area.

The estimated remaining capital costs in the 2023 technical report for construction of the commercial facility are $232-million (U.S.), of which $18.0-million (U.S.) had been incurred in the first quarter of 2024. Other capital costs of $15.7-million (U.S.) include final payments for delivery of long-lead equipment that was ordered in 2022 and to bring forward the construction of an evaporation pond to provide additional water management flexibility. Approximately $10-million (U.S.) of these other capital costs remains to be incurred in the next two quarters.

The company has closed several Florence project-level financings to finance initial commercial facility construction costs. On Jan. 26, 2024, the company received the first $10-million (U.S.) deposit from the $50-million (U.S.) copper stream transaction with Mitsui. The remaining amounts will be paid on a quarterly basis. On Feb. 2, 2024, the company also closed a $50-million (U.S.) royalty with Taurus, which was financed in one lump-sum payment at that time.

The company considers that the construction of the Florence copper project is now fully financed, and remaining project costs are expected to be financed with the company's available liquidity, remaining instalments from Mitsui and cash flow from its 100-per-cent ownership interest in Gibraltar.

Long-term growth strategy

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

Yellowhead Mining Inc. copper project

Yellowhead 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 copper price of $3.10 (U.S.) per pound based on the company's 2020 NI 43-101 technical report. Capital costs of the project were 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 production over the life of mine.

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 Tsilhqot'in Nation, as represented by Tsilhqot'in national government, and Taseko 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 Tsilhqot'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 Tsilhqot'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, Tsilhqot'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.

The company will host a telephone conference call and live webcast on Thursday, May 2, 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, 416-764-8688 in Canada or on-line at the company's website. The conference call will be archived for later playback until May 16, 2024, and can be accessed by dialling 888-390-0541 toll-free, 416-764-8677 in Canada or on-line at the company's website, using the entry code 748928 followed by the pound key.

Technical information

The technical information contained in this news release related to the Florence copper project is based upon the report, entitled, "NI 43-101 Technical Report, Florence Copper Project, Pinal County, Arizona," issued March 30, 2023, with an effective date of March 15, 2023, which is available on SEDAR+. The Florence copper project technical report was prepared under the supervision of Richard Tremblay, PEng, MBA, Richard Weymark, PEng, MBA, and Robert Rotzinger, PEng. Mr. Tremblay is employed by the company as chief operating officer, Mr. Weymark is vice-president of engineering, and Mr. Rotzinger is vice-president of capital projects. All three are qualified persons as defined by NI 43-101.

We seek Safe Harbor.