Gibraltar Fiscal Year 2005 Production October 1, 2004 to September 30, 2005
	Actual	Revised Forecast	Variance	Comments
Ore + waste mined (tons)	39,992,000	41,658,000	-4%	Mining rate adversely impacted by unscheduled maintenance on the shovel fleet, as well as truck availability.
Ore milled (tons)	11,484,000	11,913,000	-4%	Lower mill throughput due to poor crusher availability and grinding circuit productivity.
Stripping ratio	2.31	2.35	-2%
Copper grade (%)	0.314	0.306	+3%
Molybdenum grade (% MoS 2)	0.017	0.016	+6%
Copper recovery (%)	76.2	80.4	-5%	Lower copper recovery due to ore variability and higher amounts of secondary mineralization than expected.
Molybdenum recovery (%)	23.1	35.2	-35%	Molybdenum recovery was low as the new circuit was established.
Copper production (lb)	54,785,347	58,600,000	-7%	Below forecast throughput and recovery.
Molybdenum production (lb)	427,059	541,000	-20%	Below forecast throughput and recovery.

 

Gibraltar Commercial Production January 1, 2005 to September 30, 2005
Copper production (lb)	42,675,438
Copper sales (lb)	39,584,722
Molybdenum production (lb)	427,059
Molybdenum sales (gross lb)	418,016
Copper production costs, net of molybdenum, per lb of copper	US$0.87
Treatment and transportation cost per lb of copper	US$0.28
Total cash cost per lb of copper	US$1.15

There was no time loss accidents during the year ended September 30, 2005. At the end of the fiscal year, the Gibraltar operation employed 248 people.

Mineral Reserves

A detailed review of the geological model, confirmation of pit wall locations established in previous mine optimization studies, and an analysis of current price and mining cost projections allowed for expansion of the previously defined pits, specifically, at the PGE Connector and Granite Lake deposits. As a result, the overall proven and probable reserves increased by 30%, from 149 million tons remaining after production to September 30, 2005, to 194 million tons (Taseko News Release dated December 12, 2005). The additional mine production and scheduling plans, although developed, have not yet been formalized and approved by the board of directors.

Further definition drilling and economic analysis will be undertaken in 2006 with the objective of upgrading additional resources into the reserve category. The drilling program will be focused on defining this resource between the existing pits and tying together the extensive mineralization zones. In anticipation of a further increase in the mineral reserves, an engineering study has been initiated to evaluate the economics of expanding the mill production rate by 25%. This would include an assessment of the capital investment required to increase grinding and flotation capacities and the fleet of mining equipment.

Refinery Update

Feasibility level studies were completed in 2002 to assess the viability of constructing a copper refinery at Gibraltar, based on a hydrometallurgical process developed by Cominco Engineering Services Ltd. A refinery located at Gibraltar would produce cathode copper from copper concentrate at the site rather than sending these concentrates to an overseas smelter for treatment, which would result in an estimated operating cost saving to Gibraltar of US$0.20/lb of copper produced.

With mining operations now underway at Gibraltar, mine technical personnel have been re-assessing the refinery project. An updated refinery feasibility study is expected to be completed in the near term, but the immediate focus is to increase the reserves and evaluate expanding the mill as these will affect the refinery project's economics. The British Columbia Environmental Assessment ("BCEA") Office has advised Taseko that the proposed refinery would not be reviewable under the BCEA Act because the refining process would be integrated with ore milling operations of the fully permitted Gibraltar mine.

Production Forecast for Fiscal 2006

The forecasted copper and molybdenum production for 2006 are 60.1 million pounds and 874,000 pounds, respectively. The forecast by quarter is as follows:
 

	Q1	Q2	Q3	Q4	Total 2006
Copper (millions lb)	13.4	15.2	15.7	15.8	60.1
Molybdenum (thousands lb)	200	220	227	227	874
Copper production costs, net of molybdenum credits*, per lb of copper	US$1.03	US$0.81	US$0.81	US$0.80	US$0.83
OPC transport & treatment per lb of copper	US$0.30	US$0.34	US$0.34	US$0.34	US$0.34
Total cash costs of production per lb of copper	US$1.33	US$1.15	US$1.15	US$1.14	US$1.17

*Excludes mining equipment lease costs but includes contractor overhead costs
Off Property Costs ("OPC") are concentrate transportation, smelting and refining costs

The forecast production cost for 2006 is based on a molybdenum sales price of US$20 per pound (molybdenum credit); an increase in copper treatment costs of US$0.06 per pound as per the treatment contract schedule; re-scheduling of pit production including additional costs for stripping; and higher estimated input costs.

Prosperity Project

In November 2005, work was re-initiated on the Prosperity Copper-Gold Project. Taseko holds a 100% interest in the Prosperity property, which encompasses 196 mineral claims covering approximately 85 square kilometres, located 125 kilometres southwest of the City of Williams Lake in south-central British Columbia. The property hosts a large porphyry copper-gold deposit amenable to large-scale open pit mining.

Taseko carried out extensive exploration, engineering, mine planning, environmental, and socio-economic studies on the Prosperity project prior to 2001, including two years in the British Columbia Environmental Assessment ("BCEA") process. In 2005, Taseko was granted an extension order for the Prosperity Project Application under the BCEA process until April 30, 2007.

Taseko technical staff are currently reviewing previous feasibility studies and re-assessing the project economics based on new technologies, concepts, and innovative approaches to mine development. This includes re-examining optimal mining rates and mining equipment size, analyzing the economics of constructing and operating a single line mill rather than multiple smaller lines, and evaluating the potential improvements which could be realized with state-of-the-art metallurgical technologies such as large tank flotation circuits and expert computerized mill control systems. The Company is also reassessing major infrastructure plans, such as the power-line route, to determine if there are synergies to be achieved with the other communities of interest in the area.

Financial Results

Taseko had after-tax earnings of $24.4 million, or $0.23 per share ($0.21 per share fully diluted [1]) in the year ended September 30, 2005 compared to a loss of $81.4 million, or $1.09 per share, in fiscal 2004.
Earnings in 2005 also include pre-tax earnings of $6.8 million and current and future tax recoveries of $4.1 million and $13.4 million, respectively, compared to $23.7 million of tax expense in fiscal 2004.

Gibraltar recorded revenues of $71.9 million from sales of copper concentrate, and $15.7 million was realized from sales of molybdenum. Revenue was recorded for nine months of commercial production ending September 30, 2005.

Total production costs for the year were $57.8 million. Costs of production include $33.8 million for mining; $23.4 million for milling; $5.7 million for mine administration; $0.3 million in royalties; and $2.4 million for molybdenum treatment expenses. This also includes a reduction of $7.8 million related to a build up of copper concentrate inventory. Total treatment, refining and transportation costs for the year were $13.5 million. Amortization expense was $2.7 million.

Additional information is provided in Taseko's Management Discussion and Analysis and Financial Statements for the fiscal year ended September 30, 2005. Download these documents from the Company's website www.tasekomines.com or from www.sedar.com. For further details on Taseko Mines Limited, please visit the website at contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.
 
Russell Hallbauer
President and CEO
 
The TSX Venture Exchange and the American Stock Exchange have not approved or disapproved of the contents of this press release.
 
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address estimated resource quantities, grades and contained gold, 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 20-F filing with the United States Securities Commission and its home jurisdiction filings that are available at www.sedar.com.