Mr. Russell Hallbauer reports

TASEKO ANNOUNCES 43 MILLION POUNDS OF COPPER PRODUCTION AND FINANCIAL RESULTS FOR THE THIRD QUARTER

Taseko Mines Ltd. had earnings from mining operations before depletion and amortization (1) of $33.7-million and adjusted net income (1) of $1.5-million for the three months ended Sept. 30, 2018.

Russell Hallbauer, President & CEO commented, "In August, Gibraltar's mine engineering group determined that the Granite Pit high wall could be steepened, based on data from geotechnical and rock structure evaluations. We immediately redesigned the Granite Pit pushback, which allowed us earlier access to high grade ore benches. These benches, which we partially mined in the third quarter, were not included in the 2018 mine plan and ended up having a dramatic impact on copper production during the quarter."

"Not only did we benefit from higher grade ore in the third quarter, but the ore that was processed was also softer and we were able to achieve higher than design throughput of 87,000 tons per day, 6% higher than the previous quarter. The combination of higher grade ore and throughput resulted in 43 million pounds of copper production in the third quarter," added Mr. Hallbauer.

Mr. Hallbauer continued, "Sales of 29 million pounds in the quarter were below production due to extremely poor rail service, which stranded 18.5 million pounds of copper in concentrate at the mine. The lower sales affected our quarterly revenues by approximately $40 million and cash flow by approximately $30 million, based on current copper pricing."

"We continued to make progress at our Florence Copper Project during the quarter. The wellfield, SX/EW plant and all associated infrastructure are now commissioned and pre-operations tests are being performed with positive results to-date. We anticipate final authorizations to commence operations from the regulators shortly, and are ready to immediately commence leaching operations. This project represents many near-term catalysts for the Company as we demonstrate the low-cost, environmental and technical attributes of the in-situ production process," continued Mr. Hallbauer.

"Fourth quarter production is expected to be at a more normalized level, with estimated total copper production of 130 million pounds for 2018. We anticipate that during the fourth quarter the railway will be able to move most of the excess copper concentrate inventory, in addition to the fourth quarter production, to the port for shipping. Depending on vessel scheduling and berth availability, we could realize sales of approximately 45 million pounds (100% basis) for the quarter," concluded Mr. Hallbauer.

Third Quarter Highlights

• Copper production in the third quarter was 43.0 million pounds (100% basis), which represents a 28% increase over the previous quarter as a result of the higher head grades and increased mill throughput;
• Total copper sales for the quarter were 29.0 million pounds (100% basis), as concentrate shipments were delayed by poor rail service between the mine and the port terminal. As a result, inventories increased to 18.5 million pounds of copper (100% basis) at September 30, 2018. The lower sales affected the Company's quarterly revenues by approximately $40 million and cash flow by approximately $30 million, based on current copper pricing. The excess inventory is expected to be sold in the fourth quarter;
• Third quarter earnings from mining operations before depletion and amortization* were $33.7 million;
• Net income was $7.1 million ($0.03 net earnings per share) and Adjusted net income* was $1.5 million ($0.01 per share);
• Site operating costs, net of by-product credits* were US$1.34 per pound produced and Total operating costs (C1)* were US$1.58 per pound produced, as unit costs were positively impacted by the higher grades and production;
• The Company has finalized an insurance claim of $7.9 million (75% basis) related to the Cariboo region wildfires in July 2017. Third quarter earnings include an insurance recovery of $3.9 million;
• Construction of the Production Test Facility ("PTF") for the Florence Copper Project was completed in October, on time and on budget. The facility is operational and first copper cathode is expected by the end of this year;
• Cash flow from operations was $18.1 million, which was impacted by a $12.6 million working capital adjustment related to the increased inventories and the timing of customer payments;
• At September 30, 2018 the Company held put options for 15 million pounds of copper with scheduled maturities over the fourth quarter of 2018 at a strike price of US$2.80 per pound; and
• The Company's cash balance at September 30, 2018 was $45 million, a reduction from the previous quarter mainly due to the build-up of unsold copper concentrate inventories.

*Non-GAAP performance measure. See end of news release.

                                         HIGHLIGHTS
                       (Cdn$ in thousands, except for per share amounts)
  
                                         Three months ended September 30,Nine months ended September 30,
                                              2018      2017Change             2018     2017   Change
Revenues                                    74,297    78,508     (4,211)    232,749  282,891   (50,142)
Earnings from mining operations before
depletion and amortization*                 33,742    45,133    (11,391)     83,553  145,020   (61,467)
Earnings from mining operations             13,568    33,348    (19,780)     30,644  111,859   (81,215)
Net income (loss)                            7,098    20,136    (13,038)   (16,054)   41,862   (57,916)
Per share - basic ("EPS")                     0.03      0.09      (0.06)     (0.07)     0.19     (0.26)
Adjusted net income (loss)*                  1,464    13,405    (11,941)    (7,198)   42,965   (50,163)
Per share - basic ("adjusted EPS")*           0.01      0.06      (0.05)     (0.03)     0.19     (0.22)
EBITDA*                                     37,718    48,457    (10,739)     63,597  141,407   (77,810)
Adjusted EBITDA*                            31,940    42,356    (10,416)     71,728  133,110   (61,382)
Cash flows provided by operations           18,053    37,124    (19,071)     49,958  179,180  (129,222)

                              Operating Data (Gibraltar - 100% basis)

                                        Three months ended September 30,Nine months ended September 30,
                                             2018      2017      Change     2018      2017      Change
Tons mined (millions)                        29.0      23.3         5.7     83.1      66.2        16.9
Tons milled (millions)                        8.0       7.2         0.8     22.9      22.0         0.9
Production (million pounds Cu)               43.0      35.1         7.9     99.4     115.7      (16.3)
Sales (million pounds Cu)                    28.8      30.2       (1.4)     83.8     111.7      (27.9)

*Non-GAAP performance measure.  See end of news release.

OPERATIONS ANALYSIS

Third quarter results

Copper production in the third quarter was 43.0 million pounds, significantly higher than previous quarters as a result of improved head grade and increased concentrator throughput. The improved head grade was mainly achieved by developing a very high grade ore zone near the bottom of the Granite pit pushback faster than planned. During bench development, geotechnical drilling and rock structure evaluations indicated that the high wall could be steepened and additional ore benches could be developed deeper into the Granite Pit. Steepening of the high wall and accelerated mining allowed access to the higher grade ore quicker than that anticipated in the 2018 mine plan.

A total of 29.0 million tons were mined during the period, an increase over previous quarters as haulage truck hours were increased to meet mine plan sequencing requirements. The strip ratio for the third quarter of 1.7 to 1 was lower than recent quarters as a total of 2.9 million tons of mined ore was added to the ore stockpile in the period.

Site operating cost per ton milled* was $10.60 in the third quarter of 2018, which is higher than recent quarters. The increased operating costs are due to the increased mining rate as well as a reduction in the proportion of the mining costs that are capitalized. Waste stripping costs of $7.6 million (75% basis), were capitalized in the third quarter.

*Non-GAAP performance measure. See end of news release.

Site operating costs per pound produced* decreased to US$1.50 from US$1.78 in the previous quarter, primarily due to higher copper production. Site operating costs per pound produced* does not take into account the insurance recoverable of $3.9 million that was recorded in the third quarter.

Molybdenum production increased to 0.7 million pounds in the third quarter due to improved molybdenum plant operating performance. Molybdenum sales volumes were in line with production levels as the product is delivered to the customer at the mine gate and not affected by rail transportation delays. By-product credits per pound of copper produced* increased to US$0.16 in the third quarter from US$0.12 in the previous quarter.

Off-property costs per pound produced* were US$0.24 for the third quarter of 2018, which is lower than recent quarters as a result of lower copper sales volume relative to copper production during the current period. Off-property costs are lower in periods where sales volumes are lower. Total operating costs (C1) per pound* decreased to US$1.58, a 20% decrease from the second quarter of 2018.

GIBRALTAR OUTLOOK

Fourth quarter 2018 copper production is expected to return to more normal levels, and total copper production is expected to be approximately 130 million pounds for the 2018 year. Inventories of copper in concentrate increased to 18.5 million pounds at September 30, 2018, and we expect that during the fourth quarter rail service will move most of the excess inventory to the port for shipping. Sales volumes in the fourth quarter could be approximately 45 million pounds of copper (100% basis), depending on vessel scheduling and berth availability.

The Company has finalized an insurance claim of $7.9 million (75% basis) related to the Cariboo region wildfires in July 2017. Cash settlement is expected in the fourth quarter.

REVIEW OF PROJECTS

Taseko's strategy has been to grow the Company by leveraging cash flow from the Gibraltar Mine to assemble and develop a pipeline of projects. We continue to believe this will generate the best, long-term returns for shareholders. Our development projects are located in British Columbia and Arizona and represent a diverse range of metals, including gold, copper, molybdenum and niobium. Our current focus is on the development of the Florence Copper Project.

Florence Copper Project

In September 2017, the Company announced that it was moving forward with the construction of the Production Test Facility ("PTF") for the Florence Copper Project. The SX/EW Plant and the associated wellfield, comprised of 24 production, monitoring, observation and point of compliance wells.

Construction of the PTF progressed smoothly through the third quarter and has now been completed, on time and on budget. Total construction expenditures were $32.5 million (US$25.0 million) as at September 30, 2018. The wellfield and associated facilities are ready to commence leaching activities, and first copper production is expected by the end of the year. Construction expenditures on the PTF in the nine months ended September 30, 2018 were $27.3 million (US$20.8 million).

*Non-GAAP performance measure. See end of news release.

Successful operation of the in situ leaching process will allow permits to be amended for the full scale operation of 85 million pounds per year of copper cathode. It is anticipated that construction of the commercial scale operation could be commenced in the first half of 2020.

Aley Niobium Project

Environmental monitoring on the project continues and a number of product marketing initiatives are underway. A drill program was completed in the third quarter to collect samples for further metallurgical testing.

The Company will host a telephone conference call and live webcast on Thursday, November 1, 2018 at 11:00 a.m. Eastern Time (8:00 a.m. Pacific) to discuss these results. After opening remarks by management, there will be a question and answer session open to analysts and investors. The conference call may be accessed by dialing (877) 303-9079 in Canada and the United States, or (970) 315-0461 internationally. The conference call will be archived for later playback until November 8, 2018 and can be accessed by dialing (855) 859-2056 in Canada and the United States, or (404) 537-3406 internationally and using the passcode 7999942.

We seek Safe Harbor.