The Prosperity deposit is a gold-copper porphyry with a 1.0 billion tonne measured and indicated resource containing 5.3 billion pounds of copper and 13.3 million ounces of gold. At today's metal prices (US$1,000/ounce gold and US$3.15/pound copper) the project has a pre-tax net present value of C$3 billion and a 40% pre-tax internal rate of return.

Over the past four years, Taseko has significantly advanced the project, completing the feasibility study, and entering the Provincial and Federal Environmental Assessment process. Prosperity is a project that holds the potential to dramatically increase shareholder value. Development of this large-scale deposit will be a major step towards transforming Taseko into a mid-tier mining company.

We have developed a website, www.newprosperityproject.ca, to explore the facts of New Prosperity and to promote discussion about the project. We and invite you to visit the website to explore the facts about the New Prosperity Project and to engage in discussions about the project.

New Prosperity - Background

Taseko's 2011 New Prosperity gold-copper project proposal is a revised plan that builds on the core strengths of the original Prosperity proposal. New Prosperity aims to deliver significant economic value to British Columbia and Canada while at the same time limit the impact to the environment and address concerns of aboriginal people.

Status

2010 marked the culmination of a rigorous federal and provincial government review process for Prosperity, Taseko Mines Limited's development application for a gold-copper mine near William's Lake, British Columbia. The development application - based upon years of third party scientific analyses - was reviewed under both the British Columbia and Canadian Environmental Assessment Acts.

Following these reviews, the Province of British Columbia granted Taseko the right to proceed with development, however, the Federal Government decided the project could not be justified as proposed and invited Taseko to submit a new design that would address their concerns.

In response, Taseko submitted to the Federal Government a new project description in June of 2011. In November of 2011, the Canadian Environmental Assessment Agency (CEAA) announced that the new plan named "New Prosperity" would be assessed by a federal review panel. The Minister of the Environment directed the agency to ensure that information obtained during the previous environmental assessment is used to the extent possible to ensure a timely decision and that the review take no more than 12 months.

New Prosperity Defined

Both the Federal and Provincial Governments concluded in 2010 that the Prosperity Gold-Copper Project was not likely to have any significant adverse effects on:

• Air quality
• Surface or groundwater quality
• Wildlife
• Vegetation, including old growth forest, grasslands and wetlands
• Fish in the Taseko river
• Water quality in Onion Lake
• Human health
• Traffic
• Biodiversity
• Noise emissions
• Archaeological resources
• Mule deer and moose habitat

However, the Federal Government also concluded that the project would adversely affect:

Fish Habitat Effects of the New Project Design Compared to the Previous Project

	Effects of Previous Project	Effects of Revised Project	Amount of Habitat Retained	% Improvement in Revised Project Compared to Previous
Lake Habitat	118 ha	6.6 ha	111 ha	94%
Fish-Bearing Stream Habitat	34,817 m2	20,590 m2	14,227 m2	41%
Non-Fish Bearing Stream Habitat	53,444 m2	20,633 m2	32,811 m2	61%
Riparian Habitat Along Streams	85,000 m2	20,072 m2	64,928 m2	76%

• Fish and fish habitat
• Navigation
• The traditional use of the land and its resources by First Nations

Specifically, these three concerns have as their focal point the elimination of Fish Lake, a 111-hectare resource that was to be drained and replaced by a newer, larger lake nearby, in the original Prosperity development plan reviewed by government in 2010.

Simply put, the preservation of Fish Lake was not an economically viable option for the development of Prosperity. The use of the drained klake bottom for the storage of waste rock in combination with the creation of a new larger lake as compensation for the loss of Fish Lake was the only way to feasibly advance the project.

The New Prosperity project design preserves Fish Lake and directly addresses the concerns of the Federal Government. The project is able to adsorb the $300 million in the additional costs associated with the design because of higher long-term prices for gold & copper.

First Nations-

The $300 million Fish Lake conservation effort:

• Preserves Fish Lake and enables future generations' use of these waters for fishing, recreation , and other uses.
• Upholds First Nations heritage use of land and resources. In addition to the conservation of Fish Lake, Taseko has worked directly with First Nations, supporting independent impact studies and capacity funding in excess of $1.6 million.

The Province of British Columbia has demonstrated a willingness to develop a revenue sharing agreement based on the mineral tax that will be generated by New Prosperity which would significantly benefit the participating First Nation communities.

In short, New Prosperity retains all of its original designs from which "no adverse effects" would result (see the list above) while directly addressing the concerns that emerged around the elimination of Fish Lake, which is no longer part of the development plan. It is for this reason that Taseko Mines Limited remains confident in a more favorable outcome to the 2011 Federal Government review process.

Economic Stimulus

The conservation of Fish Lake and a 23% total reduction in hectares of disturbance to land and water places New Prosperity fully in line with government recommendations from an environmental and social perspective.

In the meantime, New Prosperity remains poised to offer vital economic value to a region that has been devastated by the Mountain Pine Beetle crisis, while supplying government with significant additional revenue for provincial and national social programming.

Key Economic Highlights of the New Prosperity Gold-Copper Project include:

• Federal government revenues rise by $4.30 billion
• Provincial BC government revenues rise by $5.52 billion
• Consumer spending increase of $9 billion
• Production revenues in excess of $11 billion
• An increase in Real GDP of $11 billion
• An increase in employment of 71,000 jobs
• Residential investment expenditure increase of $786 million
• Non-residential construction investment increases of $1.03 billion
• Investment in machinery and equipment (by others) to increase by
$1.38 billion • The population of BC to rise by 5,400

Mine development is a complicated undertaking, subject to countless and often conflicting factors associated with currency values, mineral pricing, demand for metal, exchange rates, etc.

These factors have aligned right now to make the New Prosperity Gold-Copper Project ready for development.

With a comprehensive plan ready to execute, Taseko is prepared to invest more than $1 billion to make this project a success for the region. Now is the time for New Prosperity.

Reserves and Resources

The mineral reserves estimated from the study:

Prosperity Mineral Reserves at C$5.50 NSR/t Pit-Rim Cut-off
Category	Tonnes (millions)	Gold (g/t)	Copper (%)	Recoverable
				Gold Ounces (millions)	Copper Pounds (billions)
Proven	481	0.46	0.26	5.0	2.4
Probable	350	0.35	0.18	2.7	1.2
Total	831	0.41	0.23	7.7	3.6

Note: The reserve estimate takes into consideration all geologic, mining, milling, and economic factors, and is stated according to Canadian standards (NI43-101).

The Proven and Probable reserves above are included in the following Measured and Indicated Mineral Resources. The Mineral Resources are as outlined by drilling to date, and estimated at a 0.14% Cu cut-off.

Prosperity Mineral Resources at 0.14% Copper Cut-off
Category	Tonnes (millions)	Gold (g/t)	Copper (%)
Measured	547.1	0.46	0.27
Indicated	463.4	0.34	0.21
Total	1,010.50	0.41	0.24

The 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.

History

Initial exploration activity in the vicinity of the Prosperity deposit was undertaken by prospectors in the early 1930's. In 1963-64, Phelps Dodge conducted a small exploration drilling program. Taseko acquired the property in 1969 and exploration drilling continued in the 1970's and 1980's under option agreements with several mining companies. Hunter Dickinson acquired Taseko in 1991 and proceeded with extensive drilling, engineering, metallurgical and socioeconomic programs. The work carried out in the 1990's succeeded in delineating a bulk tonnage porphyry gold-copper mineral resource at Prosperity. By 1998, Taseko had advanced the project to the pre-feasibility and feasibility stages. However, in 2000 prevailing metal prices - copper price ranging from US$0.60 - $0.80 per pound and gold price ranging from US$250-300 per ounce - and a poor outlook for price performance resulted in the decision to put the project on hold.