Building Value Through Operating and Developing Major Mining - PowerPoint PPT Presentation

Building Value Through Operating and Developing Major Mining Projects December 2013 1

Forward Looking Statement Some of the statements contained in the following material are "forward ‐ looking statements". All statements in this release, other than statements of historical facts, that address estimated mineral resource and reserve quantities, grades and contained metal, and possible future mining, exploration and development activities, are forward ‐ looking statements. Although the Company believes the expectations expressed in such forward ‐ looking statements are based on reasonable assumptions, such statements should not be in any way construed as 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 for metals, the conclusions of detailed feasibility and technical analyses, lower than expected grades and quantities of resources, mining rates and recovery rates and the lack of availability of necessary capital, which may not be available to the Company on terms acceptable to it or at all. The Company is subject to the specific risks inherent in the mining business as well as general economic and business conditions. For more information on the Company, Investors should review the Company's annual Form 40 ‐ F filing with the United States Securities Commission at www.sec.gov. and its Canadian securities filings that are available at www.sedar.com. 2

The Taseko Advantage Major Producing Operating the second largest open pit copper mine in Canada and fourth largest in Copper Mine Provides North America Strong Cash Flow Increasing Production 4.1 billion lbs of recoverable copper and 60 million lbs of molybdenum 25 year mine life Recently Completed Average annual copper production (LOM) nearly doubled to 165 million lbs Annual molybdenum production increasing to 2.5 million Mill Expansion (2013) Three ‐ year payback with 35% IRR Diversified Project pipeline of 100% owned, near ‐ term gold, copper and niobium projects Project Pipeline provide strong upside Stability Assets located in British Columbia; a low risk, low taxation jurisdiction Experienced, operations ‐ focused management team H2 2013 hedged copper revenue minimum at US$2.75/lb; H1 2014 ‐ 13.5 million pounds of copper at US$3.00/lb Financial C$80 million cash and equivalents at September 30/13 Strength YTD 2013 operating profit* of $52 million *Before depletion and amortization. 3

Diversified Asset Base Aley (Nb) Metallurgical testwork being completed Gibraltar (Cu ‐ Mo) British Feasibility Study complete in World class, modernized, open 2013 pit mine Columbia 165 M lbs annual production Aley 25 Year Mine life New Prosperity (Cu ‐ Au) Mackenzie Canadian Environmental Assessment Panel Review Completed in October 2013 Gibraltar Decision expected in Q1 2014 Harmony (Gold) Williams Lake New Prosperity Vancouver 4

Gibraltar Copper/Moly Mine Canada’s Second Largest Open ‐ Pit Copper Mine Location: 65 km north of Williams Lake, British Columbia Ownership: 75% 4.1 billion pounds recoverable copper Mineral 60 million pounds recoverable molybdenum Reserves: Reserves Update (Dec 2012: 770m tons at 0.34% copper equivalent* Open ‐ pit, Copper ‐ Moly Porphyry, average annual copper Mine Type: production (LOM) 165 million lbs Mine Life: 25 years Originally built in 1971 by Placer, Taseko purchased mine in 1999 while on care and maintenance. Restarted in 2004 Exploration drill program increased reserves and extended mine life $700 million capital investment program commenced in 2006, completed in mid ‐ 2013 5 *Assumed metal prices of: Cu US$2.25/lb; Mo US$16.00/lb

Gibraltar Copper/Moly Mine GDP3 – Completed On Time and On Budget 50% capacity increase from construction of a new concentrator and molybdenum plant Mine now feeds two independent copper concentrators, providing increased operational flexibility and synergies Simple payback of three years, based on a C$1.50/lb margin 35% IRR Low capital intensity ‐ $10,800/ton of installed capacity (compared to $15,000+ for other comparable projects) 160m 3 Float Circuit 34’ SAG Mill 20’ Ball Mill 6

Gibraltar Copper/Moly Mine Increasing Production Led by Continuous Investment 100 101,000 / Operating Day Capacity per Calendar Day 91,500 / Calendar Day Tons Per Operating Day Daily Mill Throughput (000s Tons) Tons Per Calendar Day $325 75 million +55% $224 million +20% $76 million 25% 50 25 0 H1 07 H2 07 H1 08 H2 08 H1 09 H2 09 H1 10 H2 10 H1 11 H2 11 H1 12 H2 12 H1 13 Q3 13 October 7

Taseko’s Growth Strategy Disciplined Investments in Diversified Project Pipeline Use free cash flow generated by Gibraltar to advance near ‐ term projects: 2 nd largest niobium deposit in the world • • 13.3 Million ounces of Gold • 5.3 billion pounds of Copper • 739 million kilograms contained niobium • ~540,000 ounces gold eq. annual production • Estimated 12 million pounds of annual niobium production • Located in British Columbia • Located in British Columbia • Construction ready in 2015, pending federal government approval • Environmental assessment underway $2.3 billion NPV $350+ million annual revenue 8

New Prosperity One of the Largest Gold/Copper Porphyries in the World Location: 125 km south west of Williams Lake, British Columbia Ownership: 100% 7.7 million ounces recoverable gold Mineral Reserves: 3.6 billion pounds recoverable copper Mine Type: Open ‐ pit, 70,000 tpd mill throughput Mine Life: +20 years 5 ‐ year production profile Yr 1* Yr 2 Yr 3 Yr 4 Yr 5 Average Gold (ounces) 160,000 300,000 325,000 275,000 305,000 300,000 Copper (thousands, pounds) 75,000 130,000 130,000 120,000 120,000 130,000 Life of mine average annual production ~540,000 gold eq. ozs** * Based on 6 months production 9 ** Based on long ‐ term Au price US$1000/oz, Cu Price US$2.75/lb

New Prosperity Robust Economics Economics Revised Economic Study completed in January 2011 Preliminary capital cost estimate of C$1 billion (excluding mining equipment) Operating cost of C$8.35 per tonne milled Total cash costs of negative US$125/oz au, net of BPCs at US$2.50 cu Net Present Value (5% discount rate) @ Long term pricing* – $2.3 billion @ Current spot pricing – $3.8 billion *Forward Cu Curve first 3 years, $2.75/lb LT, $1,200/oz Au 10

New Prosperity Environmental Assessment Review Taseko submitted Environmental Impact Statement (EIS) on September 20, 2012 EIS determined sufficient on June 20, 2013 Panel Hearings held July 22 – August 23, 2013 Panel Report issued on October 31, 2013 Taseko commences federal judicial review on December 2, 2013 Next steps: Federal government decision (expected in Q1 2014) 11

New Prosperity October 31 Panel Report Panel relied on a Natural Resource Canada (NRCAN) assessment of the plan that was NOT Taseko’s plan. Natural Resources Canada based their opinion on the wrong TSF design, not on the TSF design proposed by Taseko for New Prosperity. The Panel then relied on these flawed opinions and errors to arrive at flawed findings of significant environmental effect — on fish and fish habitat, wetlands and aboriginal interest in the Fish Lake area. Taseko was subsequently asked by the CEAA to provide further specific information on the matter. Taseko provided the correct information to the Minister of Environment (November 8) and CEAA (November 15) to ensure that New Prosperity is evaluated in a fair and transparent manner. 12

New Prosperity The Mistake and the Reality NRCAN assumed there was no low permeability basin liner for the TSF and that seepage would therefore readily leak into more pervious overburden and fractured bedrock. The New Prosperity TSF not only includes a continuous low permeability liner , but that the liner would meet a hydraulic conductivity design specification to restrict seepage losses consistent with the results of seepage modeling. The Issue Seepage rates and water quality are two determinants in predicting significance of environmental impacts on fish and fish habitat, wetlands and aboriginal interest in the Fish Lake area. The Panel relied on the faulty opinions of NRCAN (seepage rates based on the wrong design) in concluding significant environmental effects. 13

Aley Niobium Project Accretive Development Opportunity Location: Northern British Columbia Ownership: 100% Mine Type: Open Pit, 10,000 tpd mill throughput Mine Life: +20 years Project Highlights 739 million kilograms of contained niobium* 2 nd largest niobium deposit in the world Open pit, bulk mining methods Estimated annual production of 12 million lbs of niobium, generating revenue of ~$350 ‐ $400 million $25 million spent (expensed) from 2011 ‐ 2013 Road construction Metallurgical testwork Engineering on minesite components, tailings storage facility and transmission line Environment baseline studies * 285 million tonne M&I resource grading 0.37% Nb 2 O 5 (at a 0.20% Nb 2 O 5 cut ‐ off) 14

Aley Niobium Project Niobium Specifically used in manufacturing high strength, low alloy steels Green technologies, turbines, aerospace, automobile steels, oil and gas Global annual consumption of ferro ‐ niobium is 210 million lbs/year Growing at 5 ‐ 7% per year Current pricing of FeNb is $40/kg 3 producers worldwide: CBMM, Brazil; Anglo American, Brazil; IAMGOLD, Canada Niobium Benefits in Steel $9 of Niobium used in a 100 kg Weight Reduction 5% Fuel Efficiency Car Improvement = = 15