Building Wealth Through Operating and Developing Major Copper and - PowerPoint PPT Presentation

Building Wealth Through Operating and Developing Major Copper and Gold Mines January 2012

Forward-Looking Statements 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 • Gibraltar is the second largest open pit copper mine in Canada Major Producing • 2011 production: 82.9 million lbs of copper and 1.3 million lbs of Copper Mine molybdenum Provides Strong • 4.3 billion lbs of recoverable copper and 60 million lbs of molybdenum Cash Flow • 27 year mine life • Annual copper production capacity to double to 180 million lbs by Fully Funded 2013 Near-Term • Annual molybdenum production to triple to 3 million lbs by 2013 Mine Expansion • Three-year payback with 35% IRR • Project pipeline of 100% owned, near-term gold, copper and niobium Diversified projects provide strong upside Project Pipeline • Operates in mining friendly jurisdiction in low risk, low taxation Stability environment in British Columbia • Experienced, operations-focused management team • ~C$375 million cash and equivalents, 9 months YTD operating profit Financial of $63.6 million Strength • Hedged copper revenue at US$3.50/ lb through 2012 for 90% of production 3 * Based on 100% of Gibraltar and Prosperity Reserves

Taseko’s Strong Asset Base… Gibraltar Mine Aley • 4.3 billion lbs • 159 million tonnes recoverable Cu Nb2O5 of inferred • 60 million lbs resource recoverable Mo • 239 million lbs of British • 75% owned by niobium Taseko Columbia Aley (Niobium) New Prosperity Harmony Mackenzie • 3.6 billion lbs • 3.0 million oz of recoverable Cu M&I Au resource • 7.7 million oz Gibraltar recoverable Au Harmony (Copper / Moly) (Gold) Williams Lake Prosperity (Gold / Copper) Vancouve r 4

...Provides Significant Value Asset Valuation ($m) Mineral Assets Gibraltar – After Tax (75%) $1,025 Prosperity – After Tax (100%) $2,008 Aley (100%) $ 270 Harmony (100%) $ 193 Mineral Assets Total $3,496 Financial Assets Cash & Cash Equivalents $ 375 Long-term Debt $ (200) Financial Assets Total $ 175 TOTAL NET ASSET VALUE $3,671 Shares outstanding (millions) 195.50 NAV/ share ($C/share) $ 18.78 Valuation Metric Assumptions: Gibraltar: discount rate of 8%, after GDP3; Forward Cu Curve pulled Sept 23/11, US$14 long term Mo Prosperity: discount rate of 5%; Forward Cu Curve pulled Sept 23/11, US$1,000/ oz Au Aley: US$1.14 kg Nb , in situ value Harmony: US$50/ Au. Oz, in situ value 5

Increased Production at Gibraltar Driven by Optimization and Continuous Investment Location: 65 km north of Williams Lake, British Columbia Ownership: 75% 4.3 billion pounds recoverable copper Mineral 60 million pounds recoverable molybdenum Reserves: Reserves Update: 802m tons at 0.34% copper equivalent* Open-pit, 55,000 tpd mill throughput in 2011 Mine Type: 85,000 tpd mill throughput in 2013 Mine Life: Extended to 27 years from 12 years in 2004 Reserve/ Resource Update Size Recoverable Metal Grade Grade (Million Cu(%) Cu (Billions lbs) Mb (Million lbs) Mo(%) Cu(%) Equivalent* Tons) 2011 at 0.20% Cu Cut-off, at $2.25 /lb Cu 0.34 P&P Reserves 802 4.3 60.0 0.30 0.008 M&I Resources 0.34 950 - - 0.30 0.008 *Assumed metal prices of: Cu US$2.25/lb; Mb US$16.00/lb; assumed molybdenum recovery relative to copper of 55%. The resource and reserve estimation was completed by Gibraltar mine staff under the supervision of Scott Jones, P.Eng., Vice President, Engineering and a Qualified Person under National Instrument 43-101. Mr Jones has verified the methods used to determine grade and tonnage in the geological model, reviewed the long range mine plan, and directed the updated economic evaluation. The estimates used long term metal prices of US$2.25lb for copper and US$14.00/lb for molybdenum and a foreign exchange of US$0.85/C$1.00. A technical report will be filed on www.sedar.com 6

GDP3 to Double Annual Production Capacity by December 2012 to 180 million lbs of Copper… … and supported by an 80% increase in copper reserves Phase Project Scope Investment Completion Multiphase Mine Expansion: Date Increased daily production capacity to 46,000 tpd C$76 million 2008 Phase I Increased daily production capacity to 55,000 tpd bringing annualized production rates to 115 million lbs C$224 million 2011 Phase 2 of copper and 1.4 million lbs of molybdenum Construction of a new standalone 55,000 tpd concentrator (Initial run rate = 30,000 tpd) Phase 3 Expansion of mining fleet to provide 85,000 tpd ore C$325 million By end 2012 (GDP3) delivery; 330,000 tpd mining rate, at life of mine strip ratio Construction of a new molybdenum separation facility to boost molybdenum production to 3 million pounds/ year → ~$1.025 billion NPV (after tax) at 8%* after GDP3 expansion (75% basis) 7 *discount rate of 8%, after GDP3; Forward Cu Curve pulled Sept 23/11, US$14 long term Mo, US$0.05/Cu Eq. lb

...Is Fully Financed… Source of Funds: Use of Funds: C$M % of total C$M % of total Cash $ 176 54% Concentrator & Moly Plant $ 235 72% Equipment financing $ 90 28% Mining Equipment $ 90 28% JV Partner $ 59 18% Total $325 100% Total $325 100% Project Financial Highlights: • Simple payback of 3 years, based on a C$1.50/lb margin • 35% internal rate of return • Low capital intensity vs Copper mine projects* • $7,800 / tpd mill capacity • $10,800 / tpd mill capacity (including mining equipment) 8 *Copper Mountain: $14,620/tpd mill capacity; Mount Milligan: $21,600/ tpd mill capacity

…And Significantly Expands the Gibraltar Mine GDP3 Molybdenum #2 Concentrator Plant Refurbished #2 Primary Refurbished Coarse Crusher Ore Stockpile Relocated Overland Conveyor 9

GDP3 is on schedule, on budget and will be commissioned in Q1 2013 2011 2012 2013 Project Engineering Procurement #2 Concentrator Construction Molybdenum Plant Construction Infrastructure Construction Commissioning 10

New Prosperity Project Holds Significant Potential… …as 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 (based on new Federal Project Description Submission) Yr 1* Yr 2 Yr 3 Yr 4 Yr 5 Average 160,000 300,000 325,000 275,000 305,000 Gold (ounces) 300,000 75,000 130,000 130,000 120,000 120,000 Copper (thousands, pounds) 130,000 → Life of mine average annual production ~570,000 gold eq. ounces** * Based on 6 months production 11 ** Based on long-term Au price US $1000/oz, Cu Price US $2.90/lb

The New Prosperity Project …. 12

…Has Attractive Economics... Economics • Revised Economic Study completed in January 2011 • Preliminary capital cost estimate of C$1 billion • Operating cost of C$8.35 per tonne milled • Total costs, net of BPCs at US$2.50 cu, of negative US$125/oz gold Net Present Value • Long term pricing * $2.00 billion • Current spot pricing ** $4.14 billion * Based on: discount rate of 5%; Forward Cu Curve pulled Sept 23/11, US$1,000/ oz Au 13 ** Based on: $4.00 Cu and $1,800 Au

Regulatory Process is well advanced… • British Columbia Government approved project in January 2010 • Canadian Environmental Assessment Agency (CEAA) announced a Panel Review to commence in November 2011 • The Minister of Environment has instructed CEAA to: • Design a process which assess the environmental effects identified in the original project description • Ensure information obtained during the original environmental assessment is used • Adhere to a timeline of no more than 12 months → Expect Environmental Assessment Review to be completed by November 2012 14