January 2012

Building Wealth Through Operating and Developing Major Copper and Gold Mines

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 estimatedmineral resource and reserve quantities, grades and contained metal, and possible futuremining, exploration and development activities, are forward-looking statements. Although theCompany believes the expectations expressed in such forward-looking statements are basedon reasonable assumptions, such statements should not be in any way construed asguarantees of future performance and actual results or developments may differ materiallyfrom those in the forward-looking statements. Factors that could cause actual results to differmaterially from those in forward-looking statements include market prices for metals, theconclusions of detailed feasibility and technical analyses, lower than expected grades andquantities of resources, mining rates and recovery rates and the lack of availability ofnecessary capital, which may not be available to the Company on terms acceptable to it or atall. The Company is subject to the specific risks inherent in the mining business as well asgeneral economic and business conditions. For more information on the Company, Investorsshould review the Company's annual Form 40-F filing with the United States SecuritiesCommission at www.sec.gov. and its Canadian securities filings that are available atwww.sedar.com.

Forward-Looking Statements

2

The Taseko Advantage

*Based on 100% of Gibraltar and Prosperity Reserves

Financial Strength

Fully FundedNear-TermMine Expansion

Stability

• Annual copper production capacity to double to 180 million lbs by 2013

• Annual molybdenum production to triple to 3 million lbs by 2013• Three-year payback with 35% IRR

• ~C$375 million cash and equivalents, 9 months YTD operating profit of $63.6 million

• Hedged copper revenue at US$3.50/ lb through 2012 for 90% of production

Major Producing Copper Mine Provides Strong Cash Flow

• Operates in mining friendly jurisdiction in low risk, low taxation environment in British Columbia

• Experienced, operations-focused management team

DiversifiedProject Pipeline

• Project pipeline of 100% owned, near-term gold, copper and niobium projects provide strong upside

• Gibraltar is the second largest open pit copper mine in Canada• 2011 production: 82.9 million lbs of copper and 1.3 million lbs of

molybdenum • 4.3 billion lbs of recoverable copper and 60 million lbs of molybdenum• 27 year mine life

3

Taseko’s Strong Asset Base…

Gibraltar Mine• 4.3 billion lbs

recoverable Cu• 60 million lbs

recoverable Mo• 75% owned by

Taseko

Harmony• 3.0 million oz of

M&I Au resource

Aley• 159 million tonnes

Nb2O5 of inferred resource

• 239 million lbs of niobium

New Prosperity• 3.6 billion lbs

recoverable Cu• 7.7 million oz

recoverable Au

BritishColumbia

Gibraltar(Copper / Moly)

Prosperity(Gold / Copper)

Vancouver

Williams Lake

Aley(Niobium)

Harmony(Gold)

Mackenzie

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 MoProsperity: discount rate of 5%; Forward Cu Curve pulled Sept 23/11, US$1,000/ oz AuAley: US$1.14 kg Nb, in situ valueHarmony: US$50/ Au. Oz, in situ value

5

Location: 65 km north of Williams Lake, British Columbia

Ownership: 75%

Mineral Reserves:

4.3 billion pounds recoverable copper60 million pounds recoverable molybdenumReserves Update: 802m tons at 0.34% copper equivalent*

Mine Type:Open-pit, 55,000 tpd mill throughput in 2011

85,000 tpd mill throughput in 2013

Mine Life: Extended to 27 years from 12 years in 2004

Increased Production at Gibraltar Driven by Optimization and Continuous Investment

Size(Million Tons)

Recoverable Metal Grade Grade

Cu (Billions lbs) Mb (Million lbs) Cu(%) Mo(%) Cu(%) Equivalent*

2011 at 0.20% Cu Cut-off, at $2.25 /lb Cu

P&P Reserves 802 4.3 60.0 0.30 0.008 0.34

M&I Resources 950 - - 0.30 0.008 0.34

Reserve/ Resource Update

*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.com6

GDP3 to Double Annual Production Capacity by December 2012 to 180 million lbs of Copper…

… and supported by an 80% increase in copper reserves

Multiphase Mine Expansion:

→ ~$1.025 billion NPV (after tax) at 8%* after GDP3 expansion (75% basis)

Phase Project Scope Investment CompletionDate

Phase I Increased daily production capacity to 46,000 tpd C$76 million 2008

Phase 2Increased daily production capacity to 55,000 tpdbringing annualized production rates to 115 million lbsof copper and 1.4 million lbs of molybdenum

C$224 million 2011

Phase 3(GDP3)

Construction of a new standalone 55,000 tpdconcentrator (Initial run rate = 30,000 tpd)Expansion of mining fleet to provide 85,000 tpd ore delivery; 330,000 tpd mining rate, at life of mine strip ratioConstruction of a new molybdenum separation facility to boost molybdenum production to 3 million pounds/ year

C$325 million By end 2012

*discount rate of 8%, after GDP3; Forward Cu Curve pulled Sept 23/11, US$14 long term Mo, US$0.05/Cu Eq. lb7

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)

...Is Fully Financed…

8 *Copper Mountain: $14,620/tpd mill capacity; Mount Milligan: $21,600/ tpd mill capacity

GDP3 Molybdenum Plant

Relocated Overland Conveyor

Refurbished #2 Primary

CrusherRefurbished Coarse

Ore Stockpile

#2 Concentrator

…And Significantly Expands the Gibraltar Mine

9

2011 20132012

Commissioning

Project Engineering

Procurement

#2 Concentrator Construction

Molybdenum Plant Construction

Infrastructure Construction

GDP3 is on schedule, on budget and will be commissioned in Q1 2013

10

…as one of the largest gold-copper porphyries in the world

5-year production profile (based on new Federal Project Description Submission)

→ Life of mine average annual production ~570,000 gold eq. ounces**

Location: 125 km south west of Williams Lake, British Columbia

Ownership: 100%

Mineral Reserves:7.7 million ounces recoverable gold3.6 billion pounds recoverable copper

Mine Type: Open-pit, 70,000 tpd mill throughput

Mine Life: +20 years

New Prosperity Project Holds Significant Potential…

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

* Based on 6 months production** Based on long-term Au price US $1000/oz, Cu Price US $2.90/lb11

The New Prosperity Project ….

12

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

…Has Attractive Economics...

13* Based on: discount rate of 5%; Forward Cu Curve pulled Sept 23/11, US$1,000/ oz Au** 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

2010 2011 2012 2013 2014 2015 2016

Commissioning

Construction

Detailed Facility Engineering &Site Prep

Federal EA Certificate

New CEAA Review

Project Description Complete

New Engineering for Project

Provincial Mine Permit Process

Provincial EA CertificateGranted

…And Supports A Schedule For New Prosperity’s Mine Development

15

Location: Northern British Columbia

Ownership: 100%

Mine Type: Open Pit, 5000 tpd mill throughput

Mine Life: +20 years

Aley Niobium, A Further Mine Development Opportunity in a $4.5 Billion Industry…

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

• Price has averaged over US $20/ lb in the past four years

• 3 producers worldwide:• CBMM, Brazil• Anglo American, Brazil• IAMGOLD, Canada

16

Approximate Outline of Carbonatite

Saddle Zone

Central Zone

Scale: 2.5 kms

Scale: 2.5 kms

…Extensive Drilling has Validated a Known and Economic Mineral Deposit…

17

Potential Resource/ReservesAley Path Forward→ $18 million approved

expenditures (2011/2012)

• Build road access• Complete major drill program

to convert to M&I 43-101 resource

• Feasibility study completion anticipated by Q4 2012

Inferred Resource• open pit, low strip ratio• 159 million tonnes at 0.43%

Nb2O5, plus rare earths at 0.20% COG

• Containing 239 million lbs of niobium

…And A Feasibility Study is Being Prepared…

18

Valuation – Niobium Basis Only

• Recent CBMM transaction values CBMM at $13B

• Indicates contained Nb value is $1.14/kg based on reserves of 650Mt at 2.5% Nb2O5

• Based on estimated Niobec NAV of $535M and total resources of 560,000 tonnes Nb2O5 indicates contained Nb value of $1.35/kg

• Average value is $1.25/kg contained Nb

… With Significant Potential Value

Inferred Resource In Situ Value Based on Industry Transactions

Recovered Metal Value at $50/kg Nb

214m kgs Nb $ 270M $ 10.7B

19

Location:Haida Gwaii - Graham IslandDesignated Mineral Development Zone

Ownership: 100%

Measured & Indicated Resources*:

3 million ounces gold65 million tonnes @ 1.52 grams Au/tonne

Inferred Resources*: 21 million tonnes @ 1.04 grams Au/tonne

Scoping Study, completed in 2007• Capital cost of $265 million

• Operating Cost of $18.50/ tonne milled

• 10,000 tonnes per day mill throughput

• 200,000 ounces per year production

• 12 year mine life

→ $250 million NPV and 22% IRR @ US $900/oz gold**

Harmony Gold Project Offers Additional Growth and Value

20* 2001 – M. Nowak, P.Eng** 5% discount rate and 1.00/1.00 US$/C$ exchange rate

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

2011 2012 2013 2014 2015 2016

Cu Production Moly Au Production Nb Production

Based on US dollars:Cu*: $3.34/ lb $3.35/ lb $3.35/ lb $3.35/ lb $3.33/ lb $3.30/ lbMo: $14/ lb $14/ lb $14/lb $14/ lb $14/ lb $14/ lbAu: $1000/ oz $1000/ ozNb: $18/ lb

Copper forecast based on forward curveGibraltar copper and molybdenum revenue is based on 75% of production

Est ~400% increase in revenue from 2011 - 2016

Current Production, Planned Production Increases, and Project Pipeline Provide Growth and Value Creation…

21

$0

$200

$400

$600

$800

$1,000

$1,200

2005 2006 2007 2008 2009 2010 2011*

Cash and Highly Liquid Investments Total Assets

Shareholders' Equity Long Term Debt

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milli

on

…Supported By Strong Balance Sheet

*As at September 30, 2011 (unaudited)22

0

20

40

60

80

100

120

2008* 2009 2010 2011 9M YTD

Operating Profit

C$,

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…And Strong Operating Profit

Operating profit= Gross profit - G&A + other operating income – other operating expenses*15 months23

Top 50 Major Global Non-Producing Cu-Au Deposits by Gold Contained

• Prosperity is one of the largest non-producing copper-gold deposits in a jurisdiction with low political risk (2nd largest pre-producing deposit in a low political risk jurisdiction globally)

-

0.2

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Medium Political Risk

Low Political Risk

Gold Grade (g/t)

94M 44M 32M

Source: Wellington West Capital Markets; Metals Economics Group 2008-2009; Fraser Mining Institute Survey for Political Risk; Transparency International Annual Report 2008

Appendix 1: Major Cu-Au Deposits

24

Appendix 2: Key Accomplishments

Jan 2012 • 2011 production: 82.9 million lbs of copper and 1.3 million lbs of molybdenum

Nov 2011 • New Prosperity enters into Federal Environmental Assessment process

Sept 2011 • Inferred Resource announced at Aley: 158m tonnes at 0.43% Nb2O5 (0.20% COG)

June 2011 • H1 2011 production: 38.4 million lbs of copper and 619,000 lbs of molybdenum

May 2011 • Gibraltar’s reserves increase by 80%, to 802m tons• Construction of GDP3 Commences, which will increase annual copper capacity by

~60 million lbs to 180 million lbs

April 2011 • Issues Senior Notes for total proceeds of US$200m; due in 2019 and have an annual interest rate of 7.75%.

June 2010 • BC Provincial Government granted Taseko a long-term mining lease for Prosperity, providing mineral tenure security

May 2010 • Signed gold stream agreement with Franco-Nevada to sell 22% of future gold production from Prosperity for US$350 million

March 2010 • Completed transaction to sell 25% Gibraltar Mine for ~$187 million

January 2010 • Received British Columbia Environmental Assessment Certificate for Prosperity

25

Share Structure

Appendix 3: Investment Summary

Cash on Hand: ~C$375 million

Listed: TSX; TKO / NYSE Amex; TGB

Indices:S&P/TSX Composite : S&P/TSX Small CapS&P/TSX Global Mining : S&P/TSX Global Base Metals

Shares Outstanding: 195.5 million

Market Capitalization: ~$600 million

52 Week High/Low: C$6.72/C$2.45 ; US$6.62/US$2.30

Analyst Coverage:

Scotia Capital, Raymond James, Wellington West, CIBC, Canaccord, Jennings Capital, Paradigm, TD Newcrest, Credit Suisse, Dahlman Rose, MLV

Target Range: $4.50- $10.45

26

Russell Hallbauer, P. Eng - President & CEO and Director – Mr. Hallbauer is a professional engineer with over 35 years of mining experience. He has a strong background in open pit and underground mining, overseeing operating joint ventures and revitalizing mines to profitability.

John McManus, P. Eng - Senior Vice President, Operations – Mr. McManus is a professional engineer who has worked in the BC mining industry for over 30 years. He has extensive experience in mine operation, mine engineering and environmental management.

Ron Thiessen, CA - Chairman – Mr. Thiessen is an accredited public accountant in Canada. For over 25 years, he has concentrated on the development of venture capital financing for emerging public and private companies. He is a corporate officer and director of several publicly traded exploration and development companies.

Peter Mitchell, CA - CFO – Mr. Mitchell is an accredited Chartered Accountant in Canada. He has held leadership finance roles in the mining industry, as well as other industrial companies and more recently, in the for-profit education sector.

Brian Battison - Vice President, Corporate Affairs – Mr. Battison is a public affairs specialist with over 25 years of experience in policy development, issue management and communication in both the private and public sectors. He has been a senior political and policy advisor in BC and has served as Interim President & CEO of the Mining Association of BC.

Scott Jones, P. Eng - Vice President, Engineering – Mr. Jones has over 25 years of experience in the mining industry, including property valuations, mining feasibility studies and technical engineering support as well as 10 years in open pit operations and exploration in BC and the Yukon.

Dave Rouleau, P. Eng - Vice President, Operations – Mr. Rouleau has over two decades of experience in the mining and oil and gas industries. He has extensive experience in mine operations and engineering in British Columbia and Alberta.

Appendix 4: Experienced Management Team

27

Robert Rotzinger, P. Eng - General Manager, Projects – Robert is a mechanical engineer and has worked at the Gibraltar Mine since 1994 where he has taken on increasingly senior positions. He has been tasked with the management of diverse engineering, environmental, metallurgical and mining initiatives, such as the revamped molybdenum circuit and Copper Refinery project. He was a key member of the team that restarted operations at Gibraltar last year as well as participating in the development of the Gibraltar Joint Venture with Ledcor CMI Ltd.

Tom Broddy - Manager, Engineering – Tom is a mining engineer with more than 19 years of experience in the mining industry. Prior to joining Taseko in 2006, he was Manager of Container Operations at Centerm container terminal in the Port of Vancouver. He spent 16 years at Tumbler Ridge working at both the Bullmoose and Quintette coal mines and has significant experience in mine engineering, blasting, pit operations and terminal management.

Greg Yelland, P. Eng – Chief Engineering – Greg is a Mining Engineer with over 30 years experience in the Mining Industry, primarily in the area of mine engineering and mine operations. He has worked and consulted on projects and operations in South Africa, Zambia, United States and Canada. He has experience in underground gold , chrome and platinum mines as well as open pit copper, cobalt, coal and industrial minerals.

Mary Ellen Thorburn – Corporate Controller – Mary Ellen is a Chartered Accountant, a Certified Public Accountant, and a Chartered Financial Analyst with more than 18 years of experience in the mining industry. Prior to joining Taseko, she has worked for Barrick Gold Corporation, UBS Securities, and PWC both in Canada and Internationally.

Keith Merriam, P. Eng - Manager, Process Engineering – Keith is a P.Eng. and an Extractive Metallurgist with over 9 years experience in the Mining Industry, primarily in the area of Mineral Processing. He has worked primarily in technical, commissioning and operational roles, gaining experience in a variety of areas and taking on increasing levels of responsibility. Prior to joining Taseko in 2008, he was the Operations General Foreman at Hudson Bay Mining and Smelting’s Flin Flon Copper/Zinc Concentrator and prior to that, he held the position of Senior Mill Metallurgist.

Katherine Gizikoff - Director, Government and Environmental Affairs – Katherine is a professional agrologist with 28 years experience at coal and metal mines in Western Canada. Prior to joining Taseko in 2007, Katherine was consulting, providing environmental management, reclamation, research, and permitting services for the mining industry in BC. Prior to that, she was an environmental coordinator for Manalta Coal in Alberta, with earlier work experience at Elkview and Similco. Katherine has extensive experience with government-industry committees, facilitation, community liaison and consultation.

Tomas Alba - Manager, Marketing and Logistics – Tomas is an Industrial Engineer with a graduate degree in Transport and Maritime Studies with more than 20 years of experience in the mining industry. Prior to joining Taseko in June 2011, he was Marketing and Logistics Manager at Farallon Mining. He also spent more than 10 years working for Carbocol, Colombian coal mining industry, where he held progressively responsible roles up to and including Director of General Sales.

Appendix 4: Experienced Management Team

28

Mineral Reserves @ C$5.50 NSR/t Cut-Off1

Size M Tonnes

Grade Recoverable Metal

Contained Metal

Au (g/t)

Cu (%)

Au (M oz)

Cu (B lb)

Au (M oz)

Cu (B lb)

P&P reserves 830 0.41 0.23 7.7 3.6 11.0 4.2

M&I Resources 181 0.40 0.30 - - 2.3 1.1

Total 1,011 0.41 0.24 - - 13.3 5.3

Category (at 0.20% Cu Cut-off)

Size(M

Tons)Grade

Recoverable Metal

Contained Metal

Cu (%) Mo (%) Cu (B lbs) Cu (B lbs)

P&P Reserves 802 0.30 0.008 4.3 4.8

M&I Resources* 950 0.30 0.008 - 5.7

Appendix 5: Reserves and ResourcesProsperityThe mineral resource and reserve estimations were completed by Taseko 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 for the reserves used long term metal prices of US$1.65/lb for copper and US$650/oz for gold and a foreign exchange of C$0.82 per US dollar.. A technical report was filed on www.sedar.com.

GibraltarThe 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. Mr Jones has reviewed this release. A technical report will be filed on www.sedar.com.

AleyThe 0.20% Nb2O5 cut-off assumes a metal price of US$50.00/kg Nb with process recovery of 50%. G & A, processing and ore mining costs were assumed to be $30/tonne milled with waste mining costs of $1.50/tonne. A 45°wall slope LG pit was generated to constrain the resource within the block model. Detailed engineering studies will determine the optimal cut-off. The resource estimate was prepared by Ronald G. Simpson, P.Geo. with Geosim Services Inc., a Qualified Person independent of Taseko, The qualified person reviewed and approved the contents of this news release.

Category (at 0.20% Nb205 Cut-off)

Size(M Tons) Grade

Recoverable Metal

Contained Metal

Nb205 (%) Nb (M kgs) Nb (M kgs)

Inferred Reserves 159 0.43 239 4.8

29