6-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

As at May 3, 2023

Commission File Number: 001-31965

Taseko Mines Limited
(Translation of registrant's name into English)

12th Floor - 1040 West Georgia St., Vancouver, BC, V6E 4H1
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

[] Form 20-F   [ x ] Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): []

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): []

INCORPORATION BY REFERENCE

Exhibits 99.1 and 99.2 of this Form 6-K are incorporated by reference as additional exhibits to the registrant’s Registration Statement on Form F-10 (File No. 333-271142).

SUBMITTED HEREWITH

Exhibits

Exhibit	Description
99.1	Condensed Consolidated Interim Financial Statements for the period ended March 31, 2023
99.2	Management's Discussion and Analysis for the period ended March 31, 2023

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Taseko Mines Limited
	(Registrant)
Date: May 3, 2023	By:	/s/ Bryce Hamming
		Bryce Hamming
	Title:	Chief Financial Officer

EX-99.1

Condensed Consolidated Interim Financial Statements
March 31, 2023
(Unaudited)

TASEKO MINES LIMITED

Condensed Consolidated Balance Sheets

(Cdn$ in thousands)

(Unaudited)

		March 31,		December 31,
	Note	2023		2022
ASSETS
Current assets
Cash and equivalents		102,265		120,858
Accounts receivable		16,018		13,223
Inventories	9	108,725		92,846
Other financial assets	10	5,353		9,013
Prepaids		4,316		4,931
		236,677		240,871
Property, plant and equipment	11	1,134,920		1,029,240
Inventories	9	5,656		–
Other financial assets	10	9,248		2,989
Goodwill		5,574		5,584
		1,392,075		1,278,684
LIABILITIES
Current liabilities
Accounts payable and other liabilities		77,036		66,716
Current portion of long-term debt	12	25,511		18,409
Current portion of deferred revenue	13	12,643		12,065
Current portion of other financial liabilities	14	15,262		–
Interest payable on senior secured notes		4,731		14,221
Current income tax payable		334		1,227
		135,517		112,638
Long-term debt	12	583,537		568,160
Provision for environmental rehabilitation ("PER")		131,945		113,725
Deferred and other tax liabilities		73,722		76,255
Deferred revenue	13	47,569		47,620
Other financial liabilities	14	59,358		3,877
		1,031,648		922,275
EQUITY
Share capital	15	484,209		479,926
Contributed surplus		52,143		55,795
Accumulated other comprehensive income ("AOCI")		25,740		26,792
Deficit		(201,665	)	(206,104	)
		360,427		356,409
		1,392,075		1,278,684
Subsequent event	12b
Commitments and contingencies	17

The accompanying notes are an integral part of these consolidated interim financial statements.

1

TASEKO MINES LIMITED

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Cdn$ in thousands, except share and per share amounts)

(Unaudited)

		Three months ended March 31,
	Note	2023		2022
Revenues	4	115,519		118,333
Cost of sales
Production costs	5	(74,380	)	(75,560	)
Depletion and amortization	5	(12,027	)	(13,506	)
Earnings from mining operations		29,112		29,267
General and administrative		(3,300	)	(2,701	)
Share-based compensation expense	15b	(3,385	)	(3,080	)
Project related expense		(325	)	(168	)
Loss on derivatives	6	(4,216	)	(9,833	)
Other income		434		337
Income before financing costs and income taxes		18,320		13,822
Finance expenses, net	7	(11,388	)	(11,989	)
Foreign exchange gain		863		4,450
Income before income taxes		7,795		6,283
Income tax expense	8	(3,356	)	(1,188	)
Net income		4,439		5,095
Other comprehensive income (loss):
Items that will remain permanently in other comprehensive income (loss):
Gain (loss) on financial assets		(385	)	912
Items that may in the future be reclassified to profit (loss):
Foreign currency translation reserve		(667	)	(3,577	)
Total other comprehensive loss		(1,052	)	(2,665	)
Total comprehensive income		3,387		2,430
Earnings per share
Basic	16	0.02		0.02
Diluted	16	0.02		0.02
Weighted average shares outstanding (thousands)
Basic	16	288,007		285,768
Diluted	16	291,039		289,500

The accompanying notes are an integral part of these consolidated interim financial statements.

2

TASEKO MINES LIMITED

Condensed Consolidated Statements of Cash Flows

(Cdn$ in thousands)

(Unaudited)

		Three months ended March 31,
	Note	2023		2022
Operating activities
Net income for the period		4,439		5,095
Adjustments for:
Depletion and amortization		12,027		13,506
Income tax expense	8	3,356		1,188
Finance expenses, net	7	11,388		11,989
Share-based compensation expense	15b	3,609		3,273
Loss on derivatives	6	4,216		9,833
Unrealized foreign exchange gain		(950	)	(4,398	)
Amortization of deferred revenue		(1,372	)	(1,721	)
Other operating activities		(249	)	(577	)
Net change in working capital	18	(8,465	)	13,565
Cash provided by operating activities		27,999		51,753
Investing activities
Gibraltar capitalized stripping costs	11	(12,721	)	(15,142	)
Gibraltar sustaining capital expenditures	11	(4,691	)	(3,572	)
Gibraltar capital project expenditures	11	(7,338	)	(3,590	)
Florence Copper development costs	11	(9,874	)	(20,958	)
Other project development costs	11	(273	)	(41	)
Acquisition of Cariboo Copper Corp., net	3,14	2,948		-
Purchase of copper price options	6	-		(4,295	)
Other investing activities		(19	)	(258	)
Cash used for investing activities		(31,968	)	(47,856	)
Financing activities
Interest paid		(20,725	)	(18,678	)
Repayment of equipment loans and leases		(5,737	)	(5,049	)
Revolving credit facility advance	12b	13,518		-
Settlement of performance share units		(1,922	)	(1,927	)
Proceeds from exercise of stock options		291		534
Cash used for financing activities		(14,575	)	(25,120	)
Effect of exchange rate changes on cash and equivalents		(49	)	(2,817	)
Decrease in cash and equivalents		(18,593	)	(24,040	)
Cash and equivalents, beginning of period		120,858		236,767
Cash and equivalents, end of period		102,265		212,727
Supplementary cash flow disclosures	18

The accompanying notes are an integral part of these consolidated interim financial statements.

3

TASEKO MINES LIMITED

Consolidated Statements of Changes in Equity

(Cdn$ in thousands)

(Unaudited)

	Share	Contributed
	capital	surplus		AOCI		Deficit		Total
Balance at January 1, 2022	476,599	55,403		6,649		(180,133	)	358,518
Share-based compensation	-	2,277		-		-		2,277
Exercise of options	814	(280	)	-		-		534
Settlement of performance share units	2,217	(4,144	)	-		-		(1,927	)
Total comprehensive income for the period	-	-		(2,665	)	5,095		2,430
Balance at March 31, 2022	479,630	53,256		3,984		(175,038	)	361,832
Balance at January 1, 2023	479,926	55,795		26,792		(206,104	)	356,409
Share-based compensation	-	2,262		-		-		2,262
Exercise of options	450	(159	)	-		-		291
Settlement of performance share units	3,833	(5,755	)	-		-		(1,922	)
Total comprehensive income (loss) for the period	-	-		(1,052	)	4,439		3,387
Balance at March 31, 2023	484,209	52,143		25,740		(201,665	)	360,427

The accompanying notes are an integral part of these consolidated interim financial statements.

4

TASEKO MINES LIMITED

Notes to Condensed Consolidated Interim Financial Statements

(Cdn$ in thousands - Unaudited)

1.REPORTING ENTITY

Taseko Mines Limited (the "Company" or "Taseko") is a corporation governed by the British Columbia Business Corporations Act. These unaudited condensed consolidated interim financial statements of the Company as at and for the three month period ended March 31, 2023 comprise the Company, its subsidiaries and its 87.5% effective interest in the Gibraltar joint venture. The Company is principally engaged in the production and sale of metals, as well as related activities including mine permitting and development, within the province of British Columbia, Canada and the State of Arizona, USA. 

2.SIGNIFICANT ACCOUNTING POLICIES

(a)Statement of compliance

These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard ("IAS") 34, Interim Financial Reporting and follow the same accounting policies and methods of application as the Company's most recent annual consolidated financial statements. These unaudited condensed consolidated interim financial statements do not include all of the information required for full consolidated annual financial statements and should be read in conjunction with the consolidated annual financial statements of the Company as at and for the year ended December 31, 2022, prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

These unaudited condensed consolidated interim financial statements were authorized for issue by the Company's Audit and Risk Committee on May 3, 2023.

(b) Use of judgments and estimates

In preparing these unaudited condensed consolidated interim financial statements, management has made judgments, estimates and assumptions that affect the application of accounting policies, including the accounting for the Cariboo acquisition (Note 3) and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

The significant judgments made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those applied to the annual consolidated financial statements as at and for the year ended December 31, 2022. 

(c) IFRS Pronouncements

Several new accounting standards, amendments to existing standards and interpretations have been published by the IASB. Management anticipates that all relevant pronouncements will be adopted for the first period beginning on or after the effective date of the new standard.

New standards, amendments and pronouncements that became effective for the period covered by these statements have not been disclosed as they did not have a material impact on the Company's unaudited condensed consolidated interim financial statements.

5

TASEKO MINES LIMITED

Notes to Condensed Consolidated Interim Financial Statements

(Cdn$ in thousands - Unaudited)

3.ACQUISITION OF CARIBOO COPPER CORPORATION

On March 15, 2023 ("Acquisition Date"), the Company completed the acquisition of an additional 12.5% interest in the Gibraltar Mine from Sojitz Corporation ("Sojitz"). Gibraltar is operated through a joint venture which is owned 75% by Taseko and 25% by Cariboo Copper Corporation ("Cariboo"). Under the terms of the agreement, Taseko has acquired Sojitz's 50% interest in Cariboo and now holds directly and indirectly an effective 87.5% interest in the Gibraltar Mine.

The acquisition price consists of a minimum amount of $60 million payable over a five-year period and potential contingent performance payments depending on Gibraltar mine copper revenues and copper prices over the next five years. An initial $10 million has been paid to Sojitz upon closing and the remaining minimum amount will be paid in $10 million annual instalments over the next five years. There is no interest payable on the minimum amounts.

Taseko acquired Sojitz's 50% interest in Cariboo and become a party to the existing Cariboo shareholders agreement with Dowa Metals & Mining Co., Ltd (25%) and Furukawa Co., Ltd (25%). There will be no change to the offtake contracts established in 2010 and Dowa and Furukawa will continue to receive 30% of Gibraltar's copper concentrate offtake. There will be no impact to the operation of the Gibraltar Joint Venture.

The contingent performance payments are payable annually for five years only if the average LME copper price exceeds US$3.50 per pound in a year. The payments will be calculated by multiplying Gibraltar mine copper revenues by a price factor, which is based on a sliding scale ranging from 0.38% at US$3.50 per pound copper to a maximum of 2.13% at US$5.00 per pound copper or above. Total contingent payments cannot exceed $57 million over the five-year period, limiting the acquisition cost to a maximum of $117 million.

The total purchase consideration was discounted to determine fair value and the amounts as at the Acquisition Date are estimated as follows:

Fixed instalments payable	51,387
Performance payments payable	28,010
Total fair value of consideration payable	79,397

The Company has joint control over Cariboo which is a joint arrangement and as such proportionately consolidates its 50% portion of all the Cariboo assets, liabilities, income and expenses. The purchase consideration has been allocated to the assets acquired and liabilities assumed, based upon their estimated fair values at the date of acquisition. The following sets forth the allocation of the preliminary purchase price: 

Cash and cash equivalents	13,467
Accounts receivable and other assets	1,525
Reclamation deposits	6,262
Inventory	15,860
Property, plant and equipment	72,304
Deferred tax asset	5,594
Accounts payable and other liabilities	(8,535	)
Debt	(9,144	)
Provision for environmental rehabilitation	(17,936	)
Total fair value of net assets acquired	79,397

6

TASEKO MINES LIMITED

Notes to Condensed Consolidated Interim Financial Statements

(Cdn$ in thousands - Unaudited)

From the Acquisition Date to March 31, 2023, $1.3 million of the Company's consolidated net income relates to its share of Cariboo.

The values of assets and liabilities acquired are based on preliminary fair values, which are subject to change upon finalization of a complete valuation.  Based on the complete valuation, the Company will also determine whether the consideration paid compared to the fair value of assets and liabilities acquired results in a bargain purchase. If the acquisition had taken place at the beginning of the year, the unaudited consolidated revenue for the three-month period ended March 31, 2023 would have been approximately $130,546 and net earnings of the Company would have been approximately $6,507.

4.REVENUE

	Three months ended March 31,
	2023		2022
Copper contained in concentrate	109,123		114,455
Copper price adjustments on settlement	(202	)	660
Molybdenum concentrate	7,749		4,070
Molybdenum price adjustments on settlement	1,831		102
Silver (Note 13)	1,532		1,519
Total gross revenue	120,033		120,806
Less: Treatment and refining costs	(4,514	)	(2,473	)
Revenue	115,519		118,333

5.COST OF SALES

	Three months ended March 31,
	2023		2022
Site operating costs	74,438		59,859
Transportation costs	5,104		5,115
Changes in inventories of finished goods	399		7,577
Changes in inventories of ore stockpiles	(5,561	)	3,009
Production costs	74,380		75,560
Depletion and amortization	12,027		13,506
Cost of sales	86,407		89,066

Site operating costs include personnel costs, non-capitalized waste stripping costs, repair and maintenance costs, consumables, operating supplies and external services.

6.DERIVATIVE INSTRUMENTS

During the three month period ended March 31, 2023, the Company purchased zero cost copper collar contracts for 42 million pounds of copper with maturity dates ranging from July through to December 2023, with a minimum copper strike price of US$3.75 per pound and a ceiling price of US$4.70 per pound.

During the three month period ended March 31, 2023, the Company purchased fuel call options for 12 million litres of diesel with maturity dates ranging from July to December 2023, at a total cost of $941.

The Company recognized a net realized loss of $1,488 on copper collar contracts for 15 million pounds with a minimum strike price of US$3.75 per pound and a ceiling price of US$4.72 per pound, that expired out-of-the-money during the three month period ended March 31, 2023.

7

TASEKO MINES LIMITED

Notes to Condensed Consolidated Interim Financial Statements

(Cdn$ in thousands - Unaudited)

	Three months ended March 31,
	2023	2022
Net realized loss on settled copper options	1,488	2,347
Net unrealized loss on outstanding copper options	1,644	7,461
Realized loss on fuel call options	538	-
Unrealized loss on fuel call options	546	25
	4,216	9,833

Details of the outstanding copper price option contracts at March 31, 2023 are summarized in the following table:

	Quantity	Strike price	Period	Cost	Fair value
Copper collar contracts	15 million lbs	US$3.75/per lb US$4.72/per lb	Q2 2023	1,488	368
Copper collar contracts	42 million lbs	US$3.75/per lb US$4.70/per lb	H2 2023	Zero-cost	2,686

7.FINANCE EXPENSES

	Three months ended March 31,
	2023		2022
Interest expense	11,541		10,182
Amortization of financing fees	671		508
Finance expense - deferred revenue (Note 13)	1,473		1,373
Accretion on PER	504		92
Less: interest expense capitalized	(1,880	)	-
Finance income	(921	)	(166	)
	11,388		11,989

For the three month period ended March 31, 2023, interest expense includes $406 (2022 - $324) from lease liabilities and lease related obligations.

8.INCOME TAX

	Three months ended March 31,
	2023	2022
Current income tax expense	544	519
Deferred income tax expense	2,812	669
	3,356	1,188

8

TASEKO MINES LIMITED

Notes to Condensed Consolidated Interim Financial Statements

(Cdn$ in thousands - Unaudited)

9.INVENTORIES

	March 31,	December 31,
	2023	2022
Ore stockpiles	61,913	45,306
Copper contained in concentrate	11,350	12,105
Molybdenum concentrate	773	417
Materials and supplies	40,345	35,018
	114,381	92,846

Included in the ore stockpiles inventory is oxide ore at a cost of $5,656 that is classified on the balance sheet as a long-term asset.

10.OTHER FINANCIAL ASSETS

	March 31,	December 31,
	2023	2022
Current:
Marketable securities	2,183	2,568
Copper price options (Note 6)	3,054	6,184
Fuel call options (Note 6)	116	261
	5,353	9,013
Long-term:
Investment in private companies	1,200	1,200
Reclamation deposits	6,696	434
Restricted cash	1,352	1,355
	9,248	2,989

The Company holds strategic investments in publicly-traded and privately owned mineral exploration and development companies, including marketable securities. Marketable securities and the investment in privately owned companies are accounted for at fair value through other comprehensive income.

9

TASEKO MINES LIMITED

Notes to Condensed Consolidated Interim Financial Statements

(Cdn$ in thousands - Unaudited)

11.PROPERTY, PLANT & EQUIPMENT

The following schedule shows the continuity of property, plant and equipment net book value for the three months ended March 31, 2023:

	Three months ended March 31, 2023
Net book value January 1, 2023	1,029,240
Additions:
Gibraltar capitalized stripping costs	14,408
Gibraltar sustaining capital expenditures	4,758
Gibraltar capital projects	7,338
Cariboo acquisition (Note 3)	73,611
Florence Copper development costs	14,520
Yellowhead development costs	130
Aley development costs	143
Other items:
Right of use assets	5,959
Rehabilitation costs asset	36
Disposals	27
Foreign exchange translation and other	(704	)
Depletion and amortization	(14,546	)
Net book value at March 31, 2023	1,134,920

Net book value	Gibraltar Mine		Florence Copper		Yellowhead	Aley	Other		Total
At December 31, 2022	610,399		380,987		21,950	14,873	1,031		1,029,240
Cariboo acquisition (Note 3)	73,611		-		-	-	-		73,611
Net additions	32,490		14,520		130	143	-		47,283
Changes in rehabilitation cost asset	36		-		-	-	-		36
Depletion and amortization	(14,480	)	23		-	-	(89	)	(14,546	)
Foreign exchange translation	-		(704	)	-	-	-		(704	)
At March 31, 2023	702,056		394,826		22,080	15,016	942		1,134,920

For the three month period ended March 31, 2023, the Company capitalized development costs of $14,520 for the Florence Copper project, which includes $1,880 of capitalized borrowing costs. Since its acquisition of Florence Copper in November 2014, the Company has incurred and capitalized a total of $292.4 million in project development and other costs.

Non-cash additions to property, plant and equipment of Gibraltar include $1,687 of depreciation on mining assets related to capitalized stripping.

Since January 1, 2020, development costs for Yellowhead of $5,840 have been capitalized as mineral property, plant and equipment.

10

TASEKO MINES LIMITED

Notes to Condensed Consolidated Interim Financial Statements

(Cdn$ in thousands - Unaudited)

Depreciation related to the right of use assets for the three month period ended March 31, 2023 was $2,249 (2022: $1,057).

12.DEBT

	March 31,	December 31,
	2023	2022
Current:
Lease liabilities (d)	10,590	7,613
Secured equipment loans (e)	9,373	8,489
Lease related obligations (f)	5,548	2,307
	25,511	18,409
Long-term:
Senior secured notes (a)	533,626	534,118
Revolving credit facility (b)	12,396	(925	)
Lease liabilities (d)	11,023	7,408
Secured equipment loans (e)	26,492	24,550
Lease related obligations (f)	-	3,009
	583,537	568,160
Total debt	609,048	586,569

(a)Senior secured notes

On February 10, 2021, the Company completed an offering of US$400 million aggregate principal amount of senior secured notes (the "2026 Notes"). The 2026 Notes mature on February 15, 2026 and bear interest at an annual rate of 7.0%, payable semi-annually on February 15 and August 15. A portion of the proceeds were used to redeem the outstanding US$250 million 8.75% senior secured notes due on June 15, 2022. The remaining proceeds, net of transaction costs, call premium and accrued interest, of approximately $167 million (US$131 million) were available for capital expenditures, including at its Florence Copper project and Gibraltar mine, working capital and for general corporate purposes.

The 2026 Notes are secured by liens on the shares of Taseko's wholly-owned subsidiary, Gibraltar Mines Ltd., and the subsidiary's rights under the joint venture agreement relating to the Gibraltar mine, as well as the shares of Curis Holdings (Canada) Ltd. and Florence Holdings Inc. The 2026 Notes are guaranteed by each of Taseko's existing and future restricted subsidiaries. The 2026 Notes also allow for up to US$145 million of first lien secured debt to be issued and up to US$50 million of debt for equipment financing, all subject to the terms of the note indenture. The Company is also subject to certain restrictions on asset sales, issuance of preferred stock, dividends and other restricted payments. However, there are no maintenance covenants with respect to the Company's financial performance.

The Company may redeem some or all of the 2026 Notes at any time on or after February 15, 2023, at redemption prices ranging from 103.5% to 100%, plus accrued and unpaid interest to the date of redemption. On a change of control, the 2026 Notes are redeemable at the option of the holder at a price of 101%.

(b)Revolving credit facility

On October 6, 2021, the Company closed a secured US$50 million revolving credit facility (the "Facility"). The Facility is secured by first liens against Taseko's rights under the Gibraltar joint venture, as well as the shares of Gibraltar Mines Ltd., Curis Holdings (Canada) Ltd., and Florence Holdings Inc. The Facility will be available for capital expenditures, working capital and general corporate purposes.

11

TASEKO MINES LIMITED

Notes to Condensed Consolidated Interim Financial Statements

(Cdn$ in thousands - Unaudited)

The Facility has customary covenants for a revolving credit facility. Financial covenants include a requirement for the Company to maintain a leverage ratio, an interest coverage ratio, a minimum tangible net worth and a minimum liquidity amount as defined under the Facility. The Company was in compliance with these covenants as at March 31, 2023.

On February 1, 2023, the Company entered into an agreement to extend the maturity date of the Facility by an additional year to July 2, 2026. In addition to the one-year extension of the Facility, the lender has also agreed to an accordion feature, which will allow the amount of the Facility to be increased by US$30 million, for a total of US$80 million, subject to credit approval and other conditions.

Amounts outstanding under the facility bear interest at the Adjusted Term SOFR rate plus an applicable margin and have a standby fee of 1.00%. As at March 31, 2023, a total of $13,518 was advanced under the Facility, which was subsequently repaid on April 17, 2023.

(c)Letter of credit facilities

The Gibraltar joint venture has in place a $15 million credit facility for the purpose of providing letters of credit ("LC") to key suppliers of the Gibraltar mine to assist with ongoing trade finance and working capital needs. Any LCs issued under the facility will be guaranteed by Export Development Canada ("EDC") under its Account Performance Security Guarantee program. The facility is renewable annually, is unsecured and contains no financial covenants. As at March 31, 2023, a total of $3.75 million in LCs were issued and outstanding under this LC facility (December 31, 2022 - $3.75 million).

On April 8, 2022, the Company closed a US$4 million credit facility for the sole purpose of issuing LCs to certain key contractors in conjunction with the development of Florence Copper. Any LCs to be issued under this facility will also be guaranteed by EDC. The facility is renewable annually, is unsecured and contains no financial covenants. 

(d)Lease liabilities

Lease liabilities include the Company's outstanding lease liabilities under IFRS 16.

(e)Secured equipment loans

The equipment loans as at March 31, 2023 are secured by some of the existing mobile mining equipment at the Gibraltar mine and commenced between August 2019 and December 2022 with monthly repayment terms of 48 months and with interest rates ranging between 6.4% to 8.9%.

(f)Lease related obligations

Lease related obligations relate to a lease arising under a sale leaseback transaction on certain items of equipment at the Gibraltar mine. The lease commenced in June 2019 and has a term of 54 months. At the end of the lease term, the Company has an option to renew the term, an option to purchase the equipment at fair market value or option to return the equipment. The lease contains a fixed price early buy-out option exercisable at the end of 48 months.

12

TASEKO MINES LIMITED

Notes to Condensed Consolidated Interim Financial Statements

(Cdn$ in thousands - Unaudited)

(g)Debt continuity

The following schedule shows the continuity of total debt for the three months ended March 31, 2023:

Total debt as at January 1, 2023	586,569
Revolving credit facility advance	13,518
Lease additions	6,043
Lease liabilities and equipment loans repayments	(5,737	)
Lease and equipment loans from Cariboo acquisition (Note 3)	9,144
Unrealized foreign exchange gain	(1,160	)
Amortization of deferred financing charges	671
Total debt as at March 31, 2023	609,048

13.DEFERRED REVENUE

	March 31,	December 31,
	2023	2022
Current:
Customer advance payments (a)	6,882	6,456
Osisko - silver stream agreement (b)	5,761	5,609
Current portion of deferred revenue	12,643	12,065
Long-term portion of deferred revenue (b)	47,569	47,620
Total deferred revenue	60,212	59,685

(a) Customer advance payments

At March 31, 2023, the Company received advance payments from a customer on 1.7 million pounds (100% basis) of copper concentrate inventory (December 31, 2022 - 2.0 million pounds).

(b) Silver stream purchase and sale agreement

The Company has entered into a silver stream purchase and sale agreement with Osisko Gold Royalties Ltd. ("Osisko"), whereby the Company received upfront cash deposit payments totalling $52.7 million for the sale of an equivalent amount of its 75% share of Gibraltar payable silver production until 5.9 million ounces of silver have been delivered to Osisko. After that threshold has been met, 35% of an equivalent amount of Taseko's share of all future payable silver production from Gibraltar will be delivered to Osisko. The Company receives no further cash consideration once silver deliveries are made under the agreement.

13

TASEKO MINES LIMITED

Notes to Condensed Consolidated Interim Financial Statements

(Cdn$ in thousands - Unaudited)

The following table summarizes changes in the Osisko deferred revenue:

Balance at December 31, 2022	53,229
Finance expense (Note 7)	1,473
Amortization of deferred revenue	(1,372	)
Balance at March 31, 2023	53,330

14.OTHER FINANCIAL LIABILITIES

	March 31, 2023	December 31, 2022
Long-term:
Fixed consideration payable to Sojitz (Note 3)	41,387	-
Performance payments payable to Sojitz (Note 3)	28,010	-
Deferred share units (Note 15b)	5,154	3,877
Restricted share units (Note 15b)	69	-
Balance at March 31, 2023	74,620	3,877
Less current portion:
Fixed consideration payable to Sojitz (Note 3)	9,346	-
Performance payments payable to Sojitz (Note 3)	5,916	-
Long-term portion of other financial liabilities	59,358	3,877

15.EQUITY

(a)Share capital

	Common shares (thousands)
Common shares outstanding at December 31, 2022	286,493
Common shares issued under PSU plan	1,597
Exercise of share options	327
Common shares outstanding at March 31, 2023	288,417

The Company's authorized share capital consists of an unlimited number of common shares with no par value.

In January 2023, the Company issued 1,597,177 common shares as part of settlement of the performance share units that vested.

14

TASEKO MINES LIMITED

Notes to Condensed Consolidated Interim Financial Statements

(Cdn$ in thousands - Unaudited)

(b)Share-based compensation

	Options (thousands)		Average price
Outstanding at January 1, 2023	9,288		1.62
Granted	2,629		2.38
Exercised	(327	)	0.89
Cancelled/forfeited	(72	)	2.44
Expired	(1,166	)	2.86
Outstanding at March 31, 2023	10,352		1.69
Exercisable at March 31, 2023	7,950		1.47

During the three month period ended March 31, 2023, the Company granted 2,629,000 (2022 - 2,113,000) share options to directors, executives and employees, exercisable at an average exercise price of $2.38 per common share (2022 - $2.58 per common share) over a five year period. The total fair value of options granted was $3,575 (2022 - $2,979) based on a weighted average grant-date fair value of $1.36 (2022 - $1.41) per option.

The fair value of options was measured at the grant date using the Black-Scholes formula. Expected volatility is estimated by considering historic average share price volatility. The inputs used in the Black-Scholes formula are as follows:

Expected term (years)	5.0
Forfeiture rate	0%
Volatility	66%
Dividend yield	0%
Risk-free interest rate	2.9%
Weighted-average fair value per option	$1.36

Deferred Performance and Restricted Share Units

	RSUs (thousands)	DSUs (thousands)	PSUs (thousands)
Outstanding at January 1, 2023	-	1,958	2,500
Granted	350	343	830
Settled	-	-	(1,375	)
Outstanding at March 31, 2023	350	2,301	1,955

During the three month period ended March 31, 2023, 342,750 DSUs were issued to directors (2022 - 172,000) and 830,000 PSUs to senior executives (2022 - 595,000). The fair value of DSUs and PSUs granted was $4,344 (2022 - $2,532), with a weighted average fair value at the grant date of $2.38 per unit for the DSUs (2022 - $2.58 per unit) and $4.25 per unit for the PSUs (2022 - $3.51 per unit).

During the three month period ended March 31, 2023, the Company established a non-executive employee Restricted Share Units ("RSUs") plan for employees as long-term incentive compensation and granted 350,000 units, with a weighted average fair value at grant date of $2.38 per unit for the RSUs.

15

TASEKO MINES LIMITED

Notes to Condensed Consolidated Interim Financial Statements

(Cdn$ in thousands - Unaudited)

Share-based compensation expense is comprised as follows:

	Three months ended March 31,
	2023	2022
Share options - amortization	1,718	1,430
Performance share units - amortization	545	848
Restricted share units - amortization	69	-
Change in fair value of deferred share units	1,277	995
	3,609	3,273

16.EARNINGS PER SHARE

Earnings per share, calculated on a basic and diluted basis, is as follows:

	Three months ended March 31,
	2023	2022
Net income attributable to common shareholders - basic and diluted	4,439	5,095
(in thousands of common shares)
Weighted-average number of common shares	288,007	285,768
Effect of dilutive securities:
Stock options	3,032	3,732
Weighted-average number of diluted common shares	291,039	289,500
Earnings per common share
Basic earnings per share	0.02	0.02
Diluted earnings per share	0.02	0.02

17.COMMITMENTS AND CONTINGENCIES

(a)Commitments

The Company is a party to certain contracts relating to service and supply agreements. Future minimum payments under these agreements as at March 31, 2023 are presented in the following table:

Remainder of 2023	9,760
2024	13,586
2025	5,463
2026	960
2027	-
2028 and thereafter	-
Total commitments	29,769

16

TASEKO MINES LIMITED

Notes to Condensed Consolidated Interim Financial Statements

(Cdn$ in thousands - Unaudited)

As at March 31, 2023, the Company had commitments to incur capital expenditures of $7,372 (December 31, 2022 - $9,265) for Florence Copper and $3,785 (December 31, 2022 - $2,795) for the Gibraltar joint venture.

(b)Contingencies

The Company has guaranteed 100% of certain capital lease and equipment loans entered into by the Gibraltar joint venture in which it holds an 87.5% interest. As a result, the Company has guaranteed the joint venture partner's 12.5% share of this debt which amounted to $5,228 as at March 31, 2023.

The Company has also indemnified 100% of a surety bond issued by the Gibraltar joint venture to the Province of British Columbia. As a result, the Company has indemnified the joint venture partner's 12.5% share of this obligation, which amounted to $7,313 as at March 31, 2023.

(c)Mitsui Financing

On December 19, 2022, the Company signed agreements with Mitsui & Co. (U.S.A.) Inc. ("Mitsui") to form a strategic partnership to develop the Company's Florence Copper project (the "Project"). Mitsui has committed to an initial investment of US$50 million conditional on receipt of the final Underground Injection Control permit from the Environmental Protection Agency, with proceeds to be used for construction of the commercial production facility. The initial investment will be in the form of a copper stream agreement (the "Copper Stream") on 2.67% of the copper produced at Florence Copper and Mitsui to pay a delivery price equal to 25% of the market price of copper delivered under the contract.

In addition, Mitsui has acquired an option to invest an additional US$50 million for a 10% equity interest in Florence Copper (the "Equity Option"). The Equity Option is exercisable by Mitsui at any time up to three years following completion of construction of the commercial production facility. If Mitsui elects to exercise its Equity Option, the Copper Stream will terminate. If the Equity Option is not exercised by Mitsui by its expiry date, the Company will have the right to buy-back 100% of the Copper Stream, otherwise, it will terminate when 40 million pounds of copper have been delivered under the agreement.

As part of the arrangement, Taseko and Mitsui have entered into an offtake contract for 81% of the copper cathode produced at Florence during the initial years of production. The initial offtake agreement will cease and be replaced with a marketing agency agreement if the Equity Option is exercised by Mitsui. Mitsui's offtake entitlement would also reduce to 30% if the Equity Option is not exercised by its expiry date until the Copper Stream deposit has been reduced to nil.

For accounting purposes, the Mitsui agreements include derivatives that are required to be fair valued at each reporting period. The Company has determined that the fair value of the derivatives is negligible as of March 31, 2023 based on the contingent nature of the Mitsui agreements and the consideration of other relevant factors.

17

TASEKO MINES LIMITED

Notes to Condensed Consolidated Interim Financial Statements

(Cdn$ in thousands - Unaudited)

18.SUPPLEMENTARY CASH FLOW INFORMATION

	Three months ended March 31,
	2023		2022
Change in non-cash working capital items:
Accounts receivable	(1,546	)	2,862
Inventories	(5,612	)	8,194
Prepaids	672		1,028
Accounts payable and accrued liabilities1	(1,090	)	8,341
Advance payment on product sales	426		(5,297	)
Interest payable	(130	)	(63	)
Mineral tax payable	(1,185	)	(1,500	)
	(8,465	)	13,565
Non-cash investing and financing activities
Cariboo acquisition, net assets (Note 3)	65,930		-
Assets acquired under capital lease	69		164
Right-of-use assets	5,959		122

¹Excludes accounts payable and accrued liability changes on capital expenditures.

19.FAIR VALUE MEASUREMENTS

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value, by reference to the reliability of the inputs used to estimate the fair values.

Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

Level 3 - inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The fair values of the senior secured notes are $492,531 and the carrying value is $533,626 at March 31, 2023. The fair value of all other financial assets and liabilities approximates their carrying value.

The Company has certain financial assets and liabilities that are measured at fair value on a recurring basis and uses the fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value, with Level 1 inputs having the highest priority.

18

TASEKO MINES LIMITED

Notes to Condensed Consolidated Interim Financial Statements

(Cdn$ in thousands - Unaudited)

	Level 1	Level 2	Level 3	Total
March 31, 2023
Financial assets designated as FVPL
Derivative asset copper put and call options	-	3,054	-	3,054
Derivative asset fuel call options	-	116	-	116
	-	3,170	-	3,170
Financial assets designated as FVOCI
Marketable securities	2,183	-	-	2,183
Investment in private companies	-	-	1,200	1,200
Reclamation deposits	6,696	-	-	6,696
	8,879	-	1,200	10,079
December 31, 2022
Financial assets designated as FVPL
Derivative asset copper put and call options	-	6,184	-	6,184
Derivative asset fuel call options	-	261	-	261
	-	6,445	-	6,445
Financial assets designated as FVOCI
Marketable securities	2,568	-	-	2,568
Investment in private companies	-	-	1,200	1,200
Reclamation deposits	434	-	-	434
	3,002	-	1,200	4,202

There have been no transfers between fair value levels during the reporting period. The carrying value of cash and equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair value as at March 31, 2023.

The fair value of the senior secured notes, a Level 1 instrument, is determined based upon publicly available information.

The Company's metal concentrate sales contracts are subject to provisional pricing with the selling price adjusted at the end of the quotational period. At each reporting date, the Company's settlement receivable on these contracts are marked-to-market based on a quoted forward price for which there exists an active commodity market. At March 31, 2023, the Company had net settlement payables of $100 (December 31, 2022 - settlement payables of $209).

The investment in private companies, a Level 3 instrument, are valued based on a management estimate. As this is an investment in a private exploration and development company, there are no observable market data inputs. At March 31, 2023, the determination of the estimated fair value of the investment includes comparison to the market capitalization of comparable public companies.

Commodity price risk

The Company is exposed to the risk of fluctuations in prevailing market commodity prices on the metals it produces.  The Company enters into copper put and collar option contracts to reduce the risk of short-term copper price volatility. The amount and duration of the hedge position is based on an assessment of business-specific risk elements combined with the copper pricing outlook. Copper put and collar option contracts are typically extended adding incremental quarters at established put strike prices to provide the necessary price protection. 

19

TASEKO MINES LIMITED

Notes to Condensed Consolidated Interim Financial Statements

(Cdn$ in thousands - Unaudited)

Provisional pricing mechanisms embedded within the Company's sales arrangements have the character of a commodity derivative and are carried at fair value as part of accounts receivable.

The table below summarizes the impact on revenue and receivables for changes in commodity prices on the provisionally invoiced sales volumes.

	As at March 31,
	2023
Copper increase/decrease by US$0.10/lb.1	510

¹The analysis is based on the assumption that the period-end copper price increases/decreases US$0.10/lb, with all other variables held constant. At March 31, 2023, 3.8 million pounds of copper in concentrate were exposed to copper price movements. The closing exchange rate at March 31, 2023 of CAD/USD 1.35.

The sensitivities in the above tables have been determined with foreign currency exchange rates held constant.  The relationship between commodity prices and foreign currencies is complex and movements in foreign exchange can impact commodity prices. The sensitivities should therefore be used with care.

20

EX-99.2

TASEKO MINES LIMITED

Management's Discussion and Analysis

This management discussion and analysis ("MD&A") is intended to help the reader understand Taseko Mines Limited (“Taseko”, “we”, “our” or the “Company”), our operations, financial performance, and current and future business environment. This MD&A is intended to supplement and complement the condensed consolidated interim financial statements and notes thereto, prepared in accordance with IAS 34 of International Financial Reporting Standards (“IFRS”) for the three months ended March 31, 2023 (the “Financial Statements”). You are encouraged to review the Financial Statements in conjunction with your review of this MD&A and the Company’s other public filings, which are available on the Canadian Securities Administrators’ website at www.sedar.com and on the EDGAR section of the United States Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

This MD&A is prepared as of May 3, 2023. All dollar figures stated herein are expressed in Canadian dollars, unless otherwise specified. Included throughout this MD&A are references to non-GAAP performance measures which are denoted with an asterisk and further explanation including their calculations are provided on page 22.

Cautionary Statement on Forward-Looking Information

This discussion includes certain statements that may be deemed "forward-looking statements". All statements in this discussion, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities, and events or developments that the Company expects are forward-looking statements. Although we believe the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not 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, global economic events arising from the coronavirus (COVID-19) pandemic outbreak, exploitation and exploration successes, continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. All of the forward-looking statements made in this MD&A are qualified by these cautionary statements. We disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by applicable law. Further information concerning risks and uncertainties associated with these forward-looking statements and our business may be found in the Company's other public filings with the SEC and Canadian provincial securities regulatory authorities.

1

TASEKO MINES LIMITED

Management's Discussion and Analysis

CONTENTS

OVERVIEW	3
HIGHLIGHTS	3
REVIEW OF OPERATIONS	5
GIBRALTAR OUTLOOK	6
ACQUISITION OF ADDITIONAL 12.5% INTEREST IN GIBRALTAR	7
FLORENCE COPPER	7
LONG-TERM GROWTH STRATEGY	8
MARKET REVIEW	9
FINANCIAL PERFORMANCE	10
FINANCIAL CONDITION REVIEW	16
SUMMARY OF QUARTERLY RESULTS	20
CRITICAL ACCOUNTING POLICIES AND ESTIMATES	20
INTERNAL AND DISCLOSURE CONTROLS OVER FINANCIAL REPORTING	21
KEY MANAGEMENT PERSONNEL	21
NON-GAAP PERFORMANCE MEASURES	22

2

TASEKO MINES LIMITED

Management's Discussion and Analysis

OVERVIEW

Taseko is a copper focused mining company that seeks to create long-term shareholder value by acquiring, developing, and operating large tonnage mineral deposits in stable jurisdictions which are capable of supporting a mine for decades. The Company's principal operating asset is the 87.5% owned Gibraltar mine, which is located in central British Columbia and is one of the largest copper mines in North America. Taseko also owns Florence Copper, which is advancing towards construction, as well as the Yellowhead copper, New Prosperity gold-copper, and Aley niobium projects.

HIGHLIGHTS

Operating Data (Gibraltar - 100% basis)	Three months ended March 31,
	2023	2022	Change
Tons mined (millions)	24.1	20.3	3.8
Tons milled (millions)	7.1	7.0	0.1
Production (million pounds Cu)	24.9	21.4	3.5
Sales (million pounds Cu)	26.6	27.4	(0.8	)
Financial Data	Three months ended March 31,
(Cdn$ in thousands, except for per share amounts)	2023	2022	Change
Revenues	115,519	118,333	(2,814	)
Earnings from mining operations before depletion and amortization*	41,139	42,773	(1,634	)
Cash flows provided by operations	27,999	51,753	(23,754	)
Adjusted EBITDA*	36,059	38,139	(2,080	)
Adjusted net income*	5,088	6,162	(1,074	)
Per share - basic ("Adjusted EPS")*	0.02	0.02	-
Net income (GAAP)	4,439	5,095	(656	)
Per share - basic ("EPS")	0.02	0.02	-

3

TASEKO MINES LIMITED

Management's Discussion and Analysis

First Quarter Review

• In March 2023, the Company announced the results of recent technical work and updated economics for the Florence Copper project. Including updated modelling, capital expenditures and operating costs, the Florence Copper project now has an after-tax net present value of US$930 million (at an 8% discount rate) with an internal rate of return of 47% and a 2.6 year payback period;
  
  
• First quarter earnings from mining operations before depletion and amortization* was $41.1 million, Adjusted EBITDA* was $36.1 million, and cash flows from operations was $28.0 million;
  
  
• GAAP net income was $4.4 million ($0.02 per share) and Adjusted net income* was $5.1 million ($0.02 per share);
  
  
• Gibraltar produced 24.9 million pounds of copper for the quarter which was slightly below expectations due to unplanned mill downtime that was necessary to address crusher maintenance and other mechanical issues;
  
  
• Copper head grades in the quarter were 0.22%, similar to recent quarters and in line with management's expectation;
  
  
• Gibraltar sold 26.6 million pounds of copper in the quarter (100% basis) which contributed to revenue for Taseko of $115.5 million. The average realized copper price was US$4.02 per pound for the first quarter, compared to the LME average price of US$4.05 per pound;
  
  
• Total site costs* in the first quarter was $112.8 million on a 100% basis, $6.6 million higher than the previous quarter due to greater diesel consumption from the higher mining rates and additional costs incurred for mill maintenance;
  
  
• On March 15, 2023, the Company completed its acquisition of an additional 12.5% interest in the Gibraltar mine from Sojitz Corporation ("Sojitz") and now holds an effective 87.5% interest in the Gibraltar mine; 
  
  
• In February 2023, the Company entered into an agreement to extend the maturity date of its revolving credit facility by an additional year to July 2026. In addition to the one-year extension, the lender has also agreed to an accordion feature, which will allow the amount of the credit facility to be increased to US$80 million, subject to credit approval and other conditions; and
  
  
• The Company had a closing cash balance of $102 million at March 31, 2023.

4

TASEKO MINES LIMITED

Management's Discussion and Analysis

REVIEW OF OPERATIONS

Gibraltar mine

Operating data (100% basis)		Q1 2023			Q4 2022			Q3 2022			Q2 2022			Q1 2022
Tons mined (millions)		24.1			22.9			23.2			22.3			20.3
Tons milled (millions)		7.1			7.3			8.2			7.7			7.0
Strip ratio		1.9			1.1			1.5			2.8			2.6
Site operating cost per ton milled (Cdn$)*	$	13.54		$	13.88		$	11.33		$	11.13		$	11.33
Copper concentrate
Head grade (%)		0.22			0.22			0.22			0.17			0.19
Copper recovery (%)		80.7			83.4			77.1			77.3			80.2
Production (million pounds Cu)		24.9			26.7			28.3			20.7			21.4
Sales (million pounds Cu)		26.6			25.5			26.7			21.7			27.4
Inventory (million pounds Cu)		3.7			5.4			4.2			2.7			4.0
Molybdenum concentrate
Production (thousand pounds Mo)		234			359			324			199			236
Sales (thousand pounds Mo)		225			402			289			210			229
Per unit data (US$ per pound produced)*
Site operating costs*	$	2.82		$	2.79		$	2.52		$	3.25		$	2.95
By-product credits*		(0.37	)		(0.40	)		(0.15	)		(0.15	)		(0.18	)
Site operating costs, net of by-product credits*	$	2.45		$	2.39		$	2.37		$	3.10		$	2.77
Off-property costs		0.37			0.36			0.35			0.37			0.36
Total operating costs (C1)*	$	2.82		$	2.75		$	2.72		$	3.47		$	3.13

5

TASEKO MINES LIMITED

Management's Discussion and Analysis

OPERATIONS ANALYSIS

First Quarter Review

Gibraltar produced 24.9 million pounds of copper for the quarter, a 7% decrease over the fourth quarter.  Copper production in the quarter was impacted by low mill availabilities due to poor crusher performance and extended mill shutdowns to troubleshoot mechanical issues.  As a result, mill throughput was approximately 12% below plan for the period.

Copper head grades of 0.22% were in line with recent quarters and management expectations.  Copper recoveries in the first quarter were 80.7% and while above the average achieved for 2022, were impacted by operating variability in the concentrators.

Mine operations went as planned in the quarter and a total of 24.1 million tons were mined. The ore stockpiles increased by 0.4 million tons in the first quarter and 0.8 million tons of oxide ore from the Connector pit was placed on the heap leach pads. This oxide ore will be processed in future years when Gibraltar's solvent extraction and electrowinning ("SX/EW") plant is restarted.

Total site costs* at Gibraltar of $112.8 million were $6.6 million higher than last quarter due to greater diesel fuel consumption from the higher mining rates and increased mill maintenance costs incurred to address mechanical issues. 

Molybdenum production was 234 thousand pounds in the first quarter. At an average molybdenum price of US$32.79 per pound and with inclusion of the impact of favorable provisional price adjustments, molybdenum generated a by-product credit of US$0.37 per pound of copper produced in the first quarter.

Off-property costs per pound produced* were US$0.37 and were generally in line with recent quarters.

Total operating costs per pound produced (C1)* were US$2.82 for the quarter, compared to US$3.13 in the same period in 2022 with key variances summarized in the bridge graph below:

GIBRALTAR OUTLOOK

The Gibraltar pit will continue to be the sole source of mill feed in 2023 and the quarterly production profile is expected to be less variable than 2022 due to improving quality and consistency of ore as mining progresses deeper into the pit.  Waste stripping will continue in the new Connector pit and initial mill feed from this pit is planned for 2024.  The in-pit crusher that currently sits over the Connector ore zone was planned to be relocated in the third quarter of this year, but will now be deferred to spring of 2024.  This results in increased mill production in the current year, and allows the timing of the crusher move to align with a maintenance shutdown that is required for one of the SAG mills.

6

TASEKO MINES LIMITED

Management's Discussion and Analysis

Gibraltar is expected to produce 115 million pounds of copper (+/-5%) in 2023 on a 100% basis.

Strong metal prices combined with our copper hedge protection continues to provide stable operating margins at the Gibraltar mine. Copper prices in the first quarter averaged US$4.05 per pound which is slightly higher than the 2022 average of US$3.99 per pound.  Molybdenum prices are currently US$20.88 per pound, which is 11% higher than the average price in 2022. The Company currently has copper price collar contracts in place that secure a minimum copper price of US$3.75 per pound for 52 million pounds of copper until December 31, 2023.

The technical information contained in this MD&A related to the Gibraltar mine has been reviewed and approved by Richard Weymark, P.Eng., MBA, VP Engineering, who is a Qualified Person in accordance with the requirements of NI 43-101.

ACQUISITION OF ADDITIONAL 12.5% INTEREST IN GIBRALTAR

On March 15, 2023, the Company completed the acquisition of an additional 12.5% interest in the Gibraltar mine from Sojitz. Gibraltar is operated through a joint venture which is owned 75% by Taseko and 25% by Cariboo Copper Corporation ("Cariboo"). Under the terms of the agreement, Taseko has acquired Sojitz's 50% interest in Cariboo and now holds an effective 87.5% interest in the Gibraltar mine. The other 50% of Cariboo is held equally by Dowa Metals & Mining Co., Ltd. ("Dowa") and Furukawa Co. Ltd. ("Furukawa").

The acquisition price consists of a minimum amount of $60 million payable over a five-year period and potential contingent payments depending on Gibraltar mine copper revenues and copper prices over the next five years. An initial $10 million has been paid to Sojitz on closing and the remaining minimum amount will be paid in $10 million annual instalments over the next five years. There is no interest payable on the minimum amounts and the amounts payable to Sojitz are secured against shareholder loans owing from Cariboo to Taseko.

The contingent payments are payable annually for five years only if the average LME copper price exceeds US$3.50 per pound in a year. The payments will be calculated by multiplying Gibraltar mine copper revenues by a price factor, which is based on a sliding scale ranging from 0.38% at US$3.50 per pound copper to a maximum of 2.13% at US$5.00 per pound copper or above. Total contingent payments cannot exceed $57 million over the five-year period, limiting the acquisition cost to a maximum of $117 million.

Taseko will become a party to the existing Cariboo shareholders agreement with Dowa and Furukawa. There will be no change to the offtake contracts established in 2010 and Dowa and Furukawa will continue to receive 30% of Gibraltar's copper concentrate offtake. There will be no impact to the operation of the Gibraltar Joint Venture.

FLORENCE COPPER

The Company is awaiting the issuance of the final Underground Injection Control ("UIC") permit from the U.S. Environmental Protection Agency ("EPA"), which is the final permitting step required prior to construction commencing on the commercial production facility.  The EPA is currently addressing comments that were received during the public comment period, which was held in the fall of 2022.  Public comments submitted to the EPA have demonstrated strong support for the Florence Copper project among local residents, business organizations, community leaders and state-wide organizations. 

In December 2022, the Company signed agreements with Mitsui & Co. (U.S.A.) Inc. ("Mitsui") to form a strategic partnership to develop Florence Copper.  Mitsui has committed to an initial investment of US$50 million which is conditional on receipt of the final UIC permit, with proceeds to be used for construction of the commercial production facility. The initial investment will be in the form of a copper stream agreement on 2.67% of the copper produced at Florence Copper. In addition, Mitsui has the option to invest an additional US$50 million (for a total investment of US$100 million) for a 10% equity interest in Florence Copper.

7

TASEKO MINES LIMITED

Management's Discussion and Analysis

Detailed engineering and design for the commercial production facility is substantially completed and procurement activities are well advanced.  The Company has purchased the major processing equipment associated with the SX/EW plant and the equipment has now been delivered to the Florence site.  The Company is well positioned to transition into construction once the final UIC permit is received. The Company incurred $9.9 million of capital expenditures at the Florence project in the first quarter of 2023. 

In March 2023, the Company announced the results of recent technical work and updated economics for the Florence Copper project. The Company has filed a new technical report entitled “NI 43-101 Technical Report Florence Copper Project, Pinal County, Arizona” dated March 30, 2023 (the “Technical Report”) on SEDAR. The Technical Report was prepared in accordance with NI 43-101 and incorporates updated capital and operating costs for the commercial production facility and refinements made to the operating models, based on the Production Test Facility (“PTF”) results. 

The technical work completed by Taseko in recent years has been extensive and has de-risked the project significantly. The PTF operated successfully over an 18-month period and provided a valuable opportunity to test operational controls and strategies which will be applied in future commercial operations. In addition, a more sophisticated leaching model has been developed and calibrated to the PTF wellfield performance. This detailed modeling data, along with updated costing, has been used to update assumptions for the ramp up and operation of the commercial wellfield and processing facility.

Florence Copper Project Highlights:

•Net present value of US$930 million (after-tax at an 8% discount rate)

•Internal rate of return of 47% (after-tax)

•Payback period of 2.6 years

•Operating costs (C1) of US$1.11 per pound of copper

•Annual production capacity of 85 million pounds of LME grade A cathode copper

•22 year mine life

•Total life of mine production of 1.5 billion pounds of copper

•Total estimated initial capital cost of US$232 million remaining

•Long-term copper price of US$3.75 per pound

The technical information contained in this MD&A related to the Florence Copper Project has been reviewed and approved by Richard Weymark, P.Eng., MBA, VP Engineering, Robert Rotzinger, P.Eng., VP Capital Projects, and Richard Tremblay, P.Eng., MBA, Senior VP Operations, who are Qualified Persons in accordance with the requirements of NI 43-101.

LONG-TERM GROWTH STRATEGY

Taseko's strategy has been to grow the Company by acquiring and developing a pipeline of complementary projects focused on copper in stable mining jurisdictions. We continue to believe this will generate long-term returns for shareholders. Our other development projects are located in British Columbia. 

Yellowhead Copper Project

Yellowhead Mining Inc. ("Yellowhead") has an 817 million tonnes reserve and a 25-year mine life with a pre-tax net present value of $1.3 billion at an 8% discount rate using a US$3.10 per pound copper price based on the Company's 2020 NI 43-101 technical report. Capital costs of the project are estimated at $1.3 billion over a 2-year construction period.  Over the first 5 years of operation, the copper equivalent grade will average 0.35% producing an average of 200 million pounds of copper per year at an average C1* cost, net of by-product credit, of US$1.67 per pound of copper. The Yellowhead copper project contains valuable precious metal by-products with 440,000 ounces of gold and 19 million ounces of silver with a life of mine value of over $1 billion at current prices.

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TASEKO MINES LIMITED

Management's Discussion and Analysis

The Company is preparing to advance into the environmental assessment process and is undertaking some additional engineering work in conjunction with ongoing engagement with local communities including First Nations. The Company is also collecting baseline data and modeling which will be used to support the environmental assessment and permitting of the project.

The technical information contained in this MD&A related to the Yellowhead Copper Project has been reviewed and approved by Richard Weymark, P.Eng., MBA, VP Engineering, who is a Qualified Person in accordance with the requirements of NI 43-101.

New Prosperity Gold-Copper Project

In late 2019, the Tŝilhqot'in Nation, as represented by Tŝilhqot'in National Government, and Taseko entered into a confidential dialogue, with the involvement of the Province of British Columbia, in order to obtain a long-term resolution of the conflict regarding Taseko's proposed copper-gold mine previously known as New Prosperity, acknowledging Taseko's commercial interests and the Tŝilhqot'in Nation's opposition to the project.

This dialogue has been supported by the parties' agreement, beginning December 2019, to a series of one-year standstills on certain outstanding litigation and regulatory matters relating to Taseko's tenures and the area in the vicinity of Teẑtan Biny (Fish Lake). The standstill agreement was most recently extended for a fourth one-year term in December 2022, with the goal of providing time and opportunity for the Tŝilhqot'in Nation and Taseko to negotiate a final resolution.

The dialogue process has made tangible progress in the past 12 months but is not complete. In agreeing to extend the standstill through 2023, the Tŝilhqot'in Nation and Taseko acknowledge the constructive nature of discussions to date, and the future opportunity to conclude a long-term and mutually acceptable resolution of the conflict that also makes an important contribution to the goals of reconciliation in Canada.

Aley Niobium Project

Environmental monitoring and product marketing initiatives on the Aley niobium project continue. The converter pilot test is ongoing and is providing additional process data to support the design of the commercial process facilities and will provide final product samples for marketing purposes. The Company has also initiated a scoping study to investigate the potential production of niobium oxide at Aley to supply the growing market for niobium-based batteries.

MARKET REVIEW

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TASEKO MINES LIMITED

Management's Discussion and Analysis

Copper prices are currently around US$3.89 per pound, compared to US$4.05 per pound at March 31, 2023.  In March 2022, copper reached a record high of US$5.09 per pound due to uncertainty arising from the Ukraine conflict, rising inflation rates and low warehouse inventory levels. Copper prices have steadily recovered since the onset of COVID-19 due to tight physical market conditions, ensuing supply chain bottlenecks, inflation pressures caused by economic stimulus measures and other geopolitical challenges. 

Electrification of transportation and the focus on government investment in construction and infrastructure including initiatives focused on the renewable energy, electrification and meeting net zero targets by 2050, are inherently copper intensive.  According to S&P Global's copper market outlook report published in July 2022, titled 'The Future of Copper: Will the looming supply gap short-circuit the energy transition?', global demand for copper is projected to double from approximately 25 million metric tons today to roughly 50 million metric tons by 2035, a record high that will be sustained and continue to grow to 53 million metric tons by 2050, in order to achieve net-zero targets.  All of these factors continue to provide unprecedented catalysts for higher copper prices to continue in the future.  Short-term volatility is expected due to macroeconomic uncertainty and the risk of a US and global recession. While some analysts predict a potential copper market balance in 2023 based on current development projects commissioning or under construction and the recession caused pullback in demand, the medium to longer-term outlook for copper remains extremely favorable.  This increased demand for copper after years of under investment by the copper industry in new primary mine supply, coupled with inherently low recycling rates, is expected to support strong copper prices over the coming decade.

Approximately 8% of the Company's revenue is made up of molybdenum sales. During the first quarter of 2023, the average molybdenum price was US$32.79 per pound.  Molybdenum prices are currently around US$20.88 per pound.  Molybdenum demand and prices have been driven by supply challenges at large South American copper mines that produce molybdenum as a by-product.  Continued strong demand from the energy sector has boosted demand for alloyed steel products, as well as growing demand from the renewables and military sectors. The Company's sales agreements specify molybdenum pricing based on the published Platts Metals reports.

Approximately 80% of the Gibraltar mine's costs are Canadian dollar denominated and therefore, fluctuations in the Canadian/US dollar exchange rate can have a significant effect on the Company's operating results and unit production costs, which are earned and in some cases reported in US dollars. The Canadian dollar was fairly stable against the US dollar during the first quarter, despite the global recession concerns.

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TASEKO MINES LIMITED

Management's Discussion and Analysis

FINANCIAL PERFORMANCE

Earnings

	Three months ended March 31,
(Cdn$ in thousands)	2023		2022		Change
Net income	4,439		5,095		(656	)
Unrealized foreign exchange gain	(950	)	(4,398	)	3,448
Unrealized loss on copper put and fuel call options	2,190		7,486		(5,296	)
Estimated tax effect of adjustments	(591	)	(2,021	)	1,430
Adjusted net income*	5,088		6,162		(1,074	)

The Company's adjusted net income was $5.1 million ($0.02 per share) for the three months ended March 31, 2023, compared to adjusted net income of $6.2 million ($0.02 per share) for the same period in 2022.  Earnings in the first quarter were impacted by lower average LME copper prices, higher site costs due to the higher input costs such as greater diesel consumption volumes, a decrease in waste stripping costs being capitalized compared to the same prior period, and increased mill maintenance costs partially offset by higher copper sales volume and the favourable impact of higher average molybdenum price in the current period. Negatively impacting earnings this quarter was net realized losses of $2.0 million from the Company's copper price and diesel protection program, partially offset by $1.5 million less in depletion and amortization compared to the same prior period.

Net income was $4.4 million ($0.02 per share) for the three months ended March 31, 2023 after inclusion of the $0.9 million in unrealized foreign exchange gains on the outstanding senior secured notes due to the weakening US dollar in the quarter and $2.2 million of unrealized loss on derivatives that reversed prior quarter unrealized gains due to the rising copper price in the first quarter of 2023.

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TASEKO MINES LIMITED

Management's Discussion and Analysis

No adjustments are made to adjusted net income for provisional price adjustments in the quarter.

Revenues

	Three months ended March 31,
(Cdn$ in thousands)	2023		2022		Change
Copper contained in concentrate	109,123		114,455		(5,332	)
Copper price adjustments on settlement	(202	)	660		(862	)
Molybdenum concentrate	7,749		4,070		3,679
Molybdenum price adjustments on settlement	1,831		102		1,729
Silver	1,532		1,519		13
Total gross revenue	120,033		120,806		(773	)
Less: Treatment and refining costs	(4,514	)	(2,473	)	(2,041	)
Revenue	115,519		118,333		(2,814	)
(thousands of pounds, unless otherwise noted)
Sales of copper in concentrate1	20,033		19,780		253
Average realized copper price (US$ per pound)	4.02		4.59		(0.57	)
Average LME copper price (US$ per pound)	4.05		4.53		(0.48	)
Average exchange rate (US$/CAD)	1.35		1.27		0.08

¹ This amount includes a net smelter payable deduction of approximately 3.5% to derive net payable pounds of copper sold and 12.5% of Cariboo's share of copper sales since March 15, 2023.

Copper revenues for the three months ended March 31, 2023 decreased by $5.3 million compared to the same period in 2022, with $13.1 million due to lower copper prices and partially offset by $6.7 million due to the favorable impact of a stronger US dollar in 2023 and $1.0 million due to larger sales volumes of 0.3 million pounds. Negative provisional price adjustments in the current quarter were only $0.2 million attributed to the Company's practice of fixing prices at the time of shipment directly with customers or through quotational period hedges with financial institutions.

Molybdenum revenues for the three months ended March 31, 2023 increased by $3.7 million compared to the same period in 2022 due primarily to higher average molybdenum prices of US$32.79 per pound, compared to US$19.08 per pound for the same prior period.

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TASEKO MINES LIMITED

Management's Discussion and Analysis

Cost of sales

		Three months ended March  31,
(Cdn$ in thousands)		2023			2022		Change
Site operating costs		74,438			59,859		14,579
Transportation costs		5,104			5,115		(11	)
Changes in inventories of finished goods		399			7,577		(7,178	)
Changes in inventories of ore stockpiles		(5,561	)		3,009		(8,570	)
Production costs		74,380			75,560		(1,180	)
Depletion and amortization		12,027			13,506		(1,479	)
Cost of sales		86,407			89,066		(2,659	)
Site operating costs per ton milled*	$	13.54		$	11.33	$	2.21

Site operating costs for the three months ended March 31, 2023 increased by $14.6 million compared to the same prior period primarily due to a $2.4 million lower allocation of mining costs to capitalized stripping in the current quarter, a $2.7 million increase in diesel costs, explosives and other costs in the quarter, and $1.7 million in mill maintenance costs due to mill availability issues.

Cost of sales is also impacted by changes in copper concentrate inventories and ore stockpiles. During the first quarter of 2023, copper in finished goods inventory decreased by 1.7 million pounds, which contributed to an increase in production costs of $0.4 million.  Due to extreme flooding events in southwest BC in the fourth quarter of 2021, there was 6.0 million pounds of additional copper in finished goods at the 2021 year end that was sold in the first quarter of 2022. The decrease in finished goods in the first quarter of 2022 contributed to the increase in production costs of $7.2 million.

In addition, the ore stockpile increased by 1.2 million tons (which includes 0.8 million tons of oxide tons from the Connector pit that were placed on the heap leach pads) during the first quarter of 2023 which resulted in a decrease in production costs of $5.6 million.

Depletion and amortization for the three months ended March 31, 2023 decreased by $1.5 million over the same prior period. The decrease was primarily due to increases in the remaining mine life and units of production arising from the Gibraltar reserve update which extended the mine life by an additional 7 years. 

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TASEKO MINES LIMITED

Management's Discussion and Analysis

Other operating (income) expenses

	Three months ended March 31,
(Cdn$ in thousands)	2023		2022		Change
General and administrative	3,300		2,701		599
Share-based compensation expense	3,385		3,080		305
Realized loss on derivative instruments	2,026		2,347		(321	)
Unrealized loss on derivative instruments	2,190		7,486		(5,296	)
Project related expenses	325		168		157
Other income, net	(434	)	(337	)	(97	)
	10,792		15,445		(4,653	)

General and administrative expenses for the three months ended March 31, 2023 increased by $0.6 million compared to the same prior period due primarily to timing of various administrative expenditures.

Share-based compensation expense is comprised of amortization of share options and performance share units and the expense on deferred and restricted share units. Share-based compensation expense increased for the three months ended March 31, 2023, compared to the same period in 2022, primarily due to increases in the Company's share price during the period and its impact on the valuation of the deferred share units. More information is set out in Note 15 of the Financial Statements.

For the three months ended March 31, 2023, the Company realized a net loss on derivative instruments of $2.0 million primarily due to the copper collars covering production for the quarter that settled out-of-the-money, compared to a realized loss of $2.3 million in the first quarter of 2022. 

For the three months ended March  31, 2023, the net unrealized loss on derivative instruments of $2.2 million relates primarily to the reduction in the fair value of outstanding copper price collars covering the remainder of 2023. These hedge positions were significantly in the money in previous quarters as copper prices recovered since the year end.  The net unrealized loss on derivatives for the first quarter of 2022 was $7.5 million.

Project related expenses represent costs associated with the New Prosperity project and other technical expenditures undertaken by Taseko.

Finance expenses and income

	Three months ended March 31,
(Cdn$ in thousands)	2023		2022		Change
Interest expense	12,212		10,690		1,522
Finance expense - deferred revenue	1,473		1,373		100
Accretion on PER	504		92		412
Less: interest capitalized	(1,880	)	-		(1,880	)
Finance income	(921	)	(166	)	(755	)
Finance expenses, net	11,388		11,989		(601	)

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TASEKO MINES LIMITED

Management's Discussion and Analysis

Interest expense net for the three month ended March 31, 2023 decreased from the prior year period primarily due to the capitalization of certain borrowing costs as Florence project development costs, and partially offset by the impact of higher interest from new equipment loan incurred in December 2022. 

Finance expense on deferred revenue adjustments represents the implicit financing component of the upfront deposit from the silver sales streaming arrangement with Osisko Gold Royalties Ltd. ("Osisko").  Finance income for the three months ended March 31, 2023 increased from the prior year period due to the higher interest being earned on the Company's cash balances.

Income tax

	Three months ended March 31,
(Cdn$ in thousands)	2023	2022	Change
Current income tax expense	544	519	25
Deferred income tax expense	2,812	669	2,143
Income tax expense	3,356	1,188	2,168
Effective tax rate	43.1%	18.9%	24.2%
Canadian statutory rate	27.0%	27.0%	-
B.C. Mineral tax rate	9.5%	9.5%	-

The overall income tax expense for the three months ended March 31, 2023 was due to deferred income tax expense recognized on income for accounting purposes. The effective tax rate for the first quarter of 2023 is higher than the combined B.C. mineral and income tax rate of 36.5% as certain expenses such as finance charges, derivative losses and general and administration costs are not deductible for BC mineral tax purposes.

As foreign exchange revaluations on the senior secured notes are not recognized for tax purposes until realized, and in the case of capital losses, when they are applied, the effective tax rate may be significantly higher or lower than the statutory rates, as is the case for the three months ended March 31, 2022, relative to net income for that period.

Current income tax represents an estimate of B.C. mineral taxes payable for the first quarter.

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TASEKO MINES LIMITED

Management's Discussion and Analysis

FINANCIAL CONDITION REVIEW

Balance sheet review

	At March 31,	At December 31,
(Cdn$ in thousands)	2023	2022	Change
Cash and equivalents	102,265	120,858	(18,593	)
Other current assets	134,412	120,013	14,399
Property, plant and equipment	1,134,920	1,029,240	105,680
Other assets	20,478	8,573	11,905
Total assets	1,392,075	1,278,684	113,391
Current liabilities	110,006	94,229	15,777
Debt:
Credit facility	12,396	-	12,396
Senior secured notes	533,626	534,118	(492	)
Equipment related financings	63,026	52,451	10,575
Deferred revenue	47,569	47,620	(51	)
Other liabilities	265,025	193,857	71,168
Total liabilities	1,031,648	922,275	109,373
Equity	360,427	356,409	4,018
Net debt (debt minus cash and equivalents)	506,783	465,711	41,072
Total common shares outstanding (millions)	288.4	286.5	1.9

The Company's asset base is comprised principally of property, plant and equipment, reflecting the capital intensive nature of Gibraltar and the mining business. Other current assets primarily include accounts receivable, inventories (concentrate inventories, ore stockpiles, and supplies), prepaid expenses, and marketable securities.  Concentrate inventories, accounts receivable and cash balances fluctuate in relation to transportation and cash settlement schedules.

Property, plant and equipment increased by $105.7 million in the three months ended March 31, 2023, which includes the impact from acquiring an additional 12.5% effective interest in Gibraltar from Sojitz, $14.5 million for Florence Copper development costs as well as capital expenditures at Gibraltar (both sustaining and capital projects).

Net debt increased by $41.1 million in the three months ended March 31, 2023, primarily due to investment of cash in the development of Florence Copper, ongoing debt repayment and the impact from acquiring the additional interest in Gibraltar and its liabilities.

Deferred revenue relates to the advance payments received from Osisko for the sale of Taseko's share of future silver production from Gibraltar. 

Other liabilities increased by $71.2 million primarily due to the deferred consideration payable to Sojitz over the next five years for the acquisition of Cariboo and the addition share of Gibraltar's provision for environmental rehabilitation that it assumed with the purchase of Cariboo, partially offset by a decrease in the deferred tax liabilities.

As at May 3, 2023, there were 288,471,846 common shares and 10,290,083 stock options outstanding. More information on these instruments and the terms of their exercise is set out in Note 15 of the Financial Statements.

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TASEKO MINES LIMITED

Management's Discussion and Analysis

Liquidity, cash flow and capital resources

At March 31, 2023, the Company had cash and equivalents of $102.3 million (December 31, 2022 - $120.9 million).

Cash flow provided by operations during the three months ended March 31, 2023 was $28.0 million compared to cash flow provided by operations of $51.8 million for the same prior period.  The decrease in cash flow provided by operations was due primarily to the change in working capital, which included the increase in ore stockpiles and materials and supplies inventory. Also contributing to the decrease of operating cash flow was the impact of increased site operating costs and lower allocation of mining costs to capitalized stripping in the first quarter of 2023.

Cash used for investing activities during the three months ended March 31, 2023 was $32.0 million compared to $47.9 million for the same prior period. Investing cash flows in the first  quarter includes $24.7 million for capital expenditures at Gibraltar (which includes $12.7 million for capitalized stripping costs, $4.7 million for sustaining capital, and $7.3 million for capital projects), and $9.9 million of cash expenditures for development costs at Florence Copper.  Included in investing activities in the three month period is the Company’s 50% acquisition of  Cariboo, which included an initial fixed payment and accrued interest of $10.8 million to Sojitz and the pickup of the Company’s proportionate share of Cariboo’s cash of $13.5 million.

Net cash used by financing activities for the three months ended March 31, 2023 was $14.6 million comprised of interest paid of $20.7 million and normal principal repayments for equipment loans and leases of $5.7 million, settlement of performance share units of $1.9 million, partially offset by an advance from the revolving credit facility of $13.5 million.

Liquidity outlook

The Company has approximately $156 million of available liquidity at March 31, 2023, including a cash balance of $102 million and amounts undrawn under the revolving credit facility of US$50 million.  In February 2023, the Company entered into an agreement to extend the maturity date of the revolving credit facility by an additional year to July 2026. In addition to the one-year extension, the lender has also agreed to an accordion feature, which will allow the amount of the credit facility to be increased by US$30 million, for a total of US$80 million, subject to credit approval and other conditions which the Company is currently looking for other commercial banks to underwrite.

With a minimum US$3.75 per pound floor price for 52 million pounds of copper production until December 2023, stable operating margins and cash flows are expected from Gibraltar in 2023.  In addition to ongoing sustaining capital at Gibraltar, the Company has commenced a capital project to relocate the primary crusher for Mill 1 at the Gibraltar mine to a new location. The Company also intends to start the development of the commercial facility at Florence Copper once the final UIC permit is received from the EPA which is expected to occur later this year. The Company does not have any significant capital plans for its other development projects over the next 12 months.

In December 2022, the Company signed agreements with Mitsui to form a strategic partnership to develop Florence Copper.  Mitsui has committed to an initial investment of US$50 million which is conditional on receipt of the final UIC permit, with proceeds to be used for construction of the commercial production facility. The initial investment will be in the form of a copper stream agreement and Mitsui has the option to invest an additional US$50 million (for a total investment of US$100 million) for a 10% equity interest in Florence Copper.

In January 2023, the Company also secured an underwritten commitment for US$25 million from Banc of America Leasing & Capital, LLC to fund costs associated with the SX/EW plant for the Florence Copper commercial production facility.

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TASEKO MINES LIMITED

Management's Discussion and Analysis

If needed, the Company could raise additional capital through equity financings or asset sales, including royalties, sales of project interests, or joint ventures or additional credit facilities, including additional notes offerings.  The Company evaluates these financing alternatives based on a number of factors including the prevailing metal prices and projected operating cash flow from Gibraltar, relative valuation, liquidity requirements, covenant restrictions and other factors, in order to optimize the Company's cost of capital and maximize shareholder value.

Future changes in copper and molybdenum market prices could also impact the timing and amount of cash available for future investment in the Company's development projects, debt obligations, and other uses of capital. To mitigate commodity price risks in the short-term, copper price options are entered into for a substantial portion of Taseko's  share of Gibraltar copper production and the Company has a long track record of doing so (see "Hedging Strategy").

Hedging strategy

The Company generally fixes all or substantially all of the copper prices of its copper concentrate shipments at the time of shipment.  Where the customer's offtake contract does not provide a price fixing option, the Company may look to undertake a quotational period hedge directly with a financial institution as the counterparty in order to fix the price of the shipment.

To protect against sudden and unexpected overall copper price volatility in the market, the Company's hedging strategy aims to secure a minimum price for a significant portion of future copper production using copper put options that are either purchased outright or substantially funded by the sale of copper call options that are significantly out of the money. The amount and duration of the copper hedge position is based on an assessment of business-specific risk elements combined with the copper pricing outlook. Copper price and quantity exposure are reviewed regularly to ensure that adequate revenue protection is in place.

Hedge positions are typically extended by adding incremental quarters at established floor prices (i.e. the strike price of the copper put option) to provide the necessary price protection. Considerations for the cost of the hedging program include an assessment of Gibraltar's estimated production costs, copper price trends and the Company's fixed capital requirements during the relevant period.  During periods of volatility or step changes in the copper price, the Company may revisit outstanding hedging contracts and determine whether the copper put (floor) or call (ceiling) levels should be adjusted in line with the market while maintaining copper price protection. 

From time to time, the Company will look at potential hedging opportunities to mitigate the risk of rising input costs, including foreign exchange and fuel prices where such a strategy is cost effective.  Since the onset of the Ukraine war in early 2022, diesel prices have increased dramatically and become more volatile. To protect against a potential operating margin squeeze that could arise from oil and diesel price shocks, the Company purchases diesel call options to provide a price cap for its share of diesel that is used by its mining fleet. Taseko has in place diesel price protection to December 2023 which caps its site landed diesel cost to an estimated $1.75 per litre. The Company will continue to look to extend this protection depending on market conditions.

	Notional amount	Strike price	Term to maturity	Original cost
At March 31, 2023
Copper collars	15 million lbs	US$3.75 per lb US$4.72 per lb	April to June 2023	$1.5 million
Copper collars	42 million lbs	US$3.75 per lb US$4.70 per lb	July to December 2023	No cost collar
Fuel call options	6 million ltrs	US$1.05 per ltr	April to June 2023	$0.6 million
Fuel call options	12 million ltrs	US$1.00 per ltr	July to December 2023	$0.9 million

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TASEKO MINES LIMITED

Management's Discussion and Analysis

Commitments and contingencies

Commitments

	Payments due
(Cdn$ in thousands)	Remainder of 2023	2024	2025	2026	2027	Thereafter	Total
Debt:
2026 Notes	-	-	-	540,720	-	-	540,720
Interest	18,925	37,850	37,850	18,925	-	-	113,550
Equipment loans:
Principal	7,256	8,761	9,572	10,459	-	-	36,048
Interest	2,165	2,208	1,397	510	-	-	6,280
Lease liabilities:
Principal	8,172	7,683	2,812	1,822	792	-	21,281
Interest	1,106	767	328	138	40	-	2,379
Lease related obligation:
Rental payment	5,747	-	-	-	-	-	5,747
Cariboo acquisition payments 1	-	10,000	10,000	10,000	10,000	10,000	50,000
PER 2	-	-	-	-	-	131,945	131,945
Capital expenditures
Gibraltar	3,785	-	-	-	-	-	3,785
Florence Copper	6,412	960	-	-	-	-	7,372
Other expenditures
Transportation related services 3	9,760	13,586	5,463	960	-	-	29,769

¹On March 15, 2023, the Company completed its acquisition of an additional 12.5% interest in the Gibraltar mine from Sojitz.  The acquisition price consists of a minimum amount of $60 million payable over a five-year period and potential contingent payments depending on Gibraltar mine copper production and copper prices over the next five years. An initial $10 million has been paid to Sojitz on closing and the remaining minimum amount will be paid in $10 million annual instalments over the next five years. There is no interest payable on the minimum amounts. The Company estimates that there is $34 million payable over the next 5 years relating to the contingent consideration payable to Sojitz for its acquisition of the 12.5% interest in the shares of Cariboo.

²Provision for environmental rehabilitation amounts presented in the table represents the present value of estimated costs of legal and constructive obligations required to retire an asset, including decommissioning and other site restoration activities, primarily for the Gibraltar    mine and Florence Copper. As at March 31, 2023, the Company has provided surety bonds of $89.1 million and restricted cash of $6.3 million for its share of Gibraltar's reclamation security. For Florence Copper, the Company has provided to the federal and state regulator surety bonds totaling $12.4 million as reclamation security.

³Transportation related services commitments include ocean freight and port handling services, which are both cancellable upon certain operating circumstances.

The Company has made capital expenditure commitments relating to equipment for the Florence Copper project totaling $7.4 million at March 31, 2023.

The Company has guaranteed 100% of certain equipment loans and leases entered into by Gibraltar in which it holds a 87.5% effective interest. As a result, the Company has guaranteed the joint venture partner's 12.5% share of this debt which amounted to $5.2 million as at March 31, 2023.

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TASEKO MINES LIMITED

Management's Discussion and Analysis

The Company has also indemnified 100% of a surety bond issued by the Gibraltar joint venture to the Province of British Columbia. As a result, the Company has indemnified the joint venture partner's 12.5% share of this obligation, which amounted to $7.3 million as at March 31, 2023.

SUMMARY OF QUARTERLY RESULTS

	2023	2022				2021
(Cdn$ in thousands, except per share amounts)	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2
Revenues	115,519	100,618	89,714	82,944	118,333	102,972	132,563	111,002
Net income (loss)	4,439	(2,275)	(23,517)	(5,274)	5,095	11,762	22,485	13,442
Basic EPS	0.02	(0.01)	(0.08)	(0.02)	0.02	0.04	0.08	0.05
Adjusted net income (loss) *	5,088	7,146	4,513	(16,098)	6,162	13,312	27,020	9,948
Adjusted basic EPS *	0.02	0.02	0.02	(0.06)	0.02	0.05	0.10	0.04
Adjusted EBITDA *	36,059	35,181	34,031	1,684	38,139	52,988	76,291	47,732
(US$ per pound, except where indicated)
Provisional copper price	4.05	3.66	3.51	4.33	4.57	4.40	4.21	4.34
Realized copper price	4.02	3.66	3.48	4.08	4.59	4.37	4.26	4.48
Total operating costs *	2.82	2.75	2.72	3.47	3.13	1.94	1.57	2.02
Copper sales (million pounds)	20.8	19.1	20.0	16.3	20.5	17.9	24.3	20.0

Financial results for the last eight quarters reflect: volatile copper and molybdenum prices and foreign exchange rates that impact realized sale prices; and variability in the quarterly sales volumes due to copper grades and timing of shipments which impacts revenue recognition.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The Company's significant accounting policies are presented in Note 2.4 of the 2022 annual consolidated financial statements. The preparation of the financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies, including the accounting for the Cariboo acquisition and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

In the process of applying the Company's accounting policies, significant areas where judgment is required include the determination of a joint arrangement, determining the timing of transfer of control of inventory for revenue recognition, provisions for environmental rehabilitation, reserve and resource estimation, functional currency, determination of the accounting treatment of the advance payment under the silver purchase and sale agreement reported as deferred revenue, determination of business or asset acquisition treatment, and recovery of other deferred tax assets.

Significant areas of estimation include reserve and resource estimation; asset valuations and the measurement of impairment charges or reversals; valuation of inventories; plant and equipment lives; tax provisions; provisions for environmental rehabilitation; valuation of financial instruments and derivatives; capitalized stripping costs and share-based compensation. Key estimates and assumptions made by management with respect to these areas have been disclosed in the notes to these consolidated financial statements as appropriate. 

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TASEKO MINES LIMITED

Management's Discussion and Analysis

The accuracy of reserve and resource estimates is a function of the quantity and quality of available data and the assumptions made and judgment used in the engineering and geological interpretation, and may be subject to revision based on various factors.  Changes in reserve and resource estimates may impact the carrying value of property, plant and equipment; the calculation of depreciation expense; the capitalization of stripping costs incurred during production; and the timing of cash flows related to the provision for environmental rehabilitation.

Changes in forecast prices of commodities, exchange rates, production costs and recovery rates may change the economic status of reserves and resources. Forecast prices of commodities, exchange rates, production costs and recovery rates, and discount rates assumptions, either individually or collectively, may impact the carrying value of derivative financial instruments, inventories, property, plant and equipment, and intangibles, as well as the measurement of impairment charges or reversals.

There were no changes in accounting policies during the three months ended March 31, 2023.

INTERNAL AND DISCLOSURE CONTROLS OVER FINANCIAL REPORTING

The Company's management is responsible for establishing and maintaining adequate internal control over financial reporting and disclosure controls and procedures.

The Company's internal control system over financial reporting is designed to provide reasonable assurance to management and the Board of Directors regarding the preparation and fair presentation of published financial statements.  Internal control over financial reporting includes those policies and procedures that:

(1)pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company;

(2)provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with IFRS, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

(3)provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the financial statements.

The Company's internal control system over disclosure controls and procedures is designed to provide reasonable assurance that material information relating to the Company is made known to management and disclosed to others and information required to be disclosed by the Company in its annual filings, interim filings or other reports filed or submitted by us under securities legislation is recorded, processed, summarized and reported within the time periods specified in the securities legislation. 

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined effective can provide only reasonable assurance with respect to financial reporting and disclosure. 

There have been no changes in our internal controls over financial reporting and disclosure controls and procedures during the period ended March 31, 2023 that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting and disclosure.

KEY MANAGEMENT PERSONNEL

Key management personnel include the members of the Board of Directors and executive officers of the Company.

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TASEKO MINES LIMITED

Management's Discussion and Analysis

The Company contributes to a post-employment defined contribution pension plan on the behalf of certain key management personnel. This retirement compensation arrangement ("RCA Trust") was established to provide benefits to certain executive officers on or after retirement in recognition of their long service. Upon retirement, the participant is entitled to the distribution of the accumulated value of the contributions under the RCA Trust.  Obligations for contributions to the defined contribution pension plan are recognized as compensation expense in the periods during which services are rendered by the executive officers.

Certain executive officers are entitled to termination and change in control benefits. In the event of termination without cause, other than a change in control, these executive officers are entitled to an amount ranging from
12-months' to 18-months' salary.  In the event of a change in control, if a termination without cause or a resignation occurs within 12 months following the change of control, these executive officers are entitled to receive, among other things, an amount ranging from 12-months' to 24-months' salary and accrued bonus, and all stock options held by these individuals will fully vest.

Executive officers and directors also participate in the Company's share option program (refer to Note 15 of the Financial Statements). 

Compensation for key management personnel (including all members of the Board of Directors and executive officers) is as follows: 

	Three months ended March 31,
(Cdn$ in thousands)	2023	2022
Salaries and benefits	2,249	2,001
Post-employment benefits	178	178
Share-based compensation expense	2,933	2,618
	5,360	4,797

NON-GAAP PERFORMANCE MEASURES

This document includes certain non-GAAP performance measures that do not have a standardized meaning prescribed by IFRS. These measures may differ from those used by, and may not be comparable to such measures as reported by, other issuers. The Company believes that these measures are commonly used by certain investors, in conjunction with conventional IFRS measures, to enhance their understanding of the Company's performance. These measures have been derived from the Company's financial statements and applied on a consistent basis. The following tables below provide a reconciliation of these non-GAAP measures to the most directly comparable IFRS measure.

Total operating costs and site operating costs, net of by-product credits

Total costs of sales include all costs absorbed into inventory, as well as transportation costs and insurance recoverable. Site operating costs are calculated by removing net changes in inventory, depletion and amortization, insurance recoverable, and transportation costs from cost of sales. Site operating costs, net of by-product credits is calculated by subtracting by-product credits from the site operating costs. Site operating costs, net of by-product credits per pound are calculated by dividing the aggregate of the applicable costs by copper pounds produced. Total operating costs per pound is the sum of site operating costs, net of by-product credits and off-property costs divided by the copper pounds produced. By-product credits are calculated based on actual sales of molybdenum (net of treatment costs) and silver during the period divided by the total pounds of copper produced during the period. These measures are calculated on a consistent basis for the periods presented.

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TASEKO MINES LIMITED

Management's Discussion and Analysis

(Cdn$ in thousands, unless otherwise indicated) - 75% basis (except for Q1 2023)	2023 Q11		2022 Q4		2022 Q3		2022 Q2		2022 Q1
Cost of sales	86,407		73,112		84,204		90,992		89,066
Less:
Depletion and amortization	(12,027	)	(10,147	)	(13,060	)	(15,269	)	(13,506	)
Net change in inventories of finished goods	(399	)	1,462		2,042		(3,653	)	(7,577	)
Net change in inventories of ore stockpiles	5,561		18,050		3,050		(3,463	)	(3,009	)
Transportation costs	(5,104	)	(6,671	)	(6,316	)	(4,370	)	(5,115	)
Site operating costs	74,438		75,806		69,920		64,237		59,859
Less by-product credits:
Molybdenum, net of treatment costs	(9,208	)	(11,022	)	(4,122	)	(3,023	)	(3,831	)
Silver, excluding amortization of deferred revenue	(160	)	263		25		36		202
Site operating costs, net of by-product credits	65,070		65,047		65,823		61,250		56,230
Total copper produced (thousand pounds)	19,491		20,020		21,238		15,497		16,024
Total costs per pound produced	3.34		3.25		3.10		3.95		3.51
Average exchange rate for the period (CAD/USD)	1.35		1.36		1.31		1.28		1.27
Site operating costs, net of by-product credits (US$ per pound)	2.47		2.39		2.37		3.10		2.77
Site operating costs, net of by-product credits	65,070		65,047		65,823		61,250		56,230
Add off-property costs:
Treatment and refining costs	4,142		3,104		3,302		2,948		2,133
Transportation costs	5,104		6,671		6,316		4,370		5,115
Total operating costs	74,316		74,822		75,441		68,568		63,478
Total operating costs (C1) (US$ per pound)	2.82		2.75		2.72		3.47		3.13

¹ Q1 2023 includes the impact from the March 15, 2023 acquisition of Cariboo from Sojitz, which increased the Company's Gibraltar mine ownership from 75% to 87.5%.

Total Site Costs

Total site costs is comprised of the site operating costs charged to cost of sales as well as mining costs capitalized to property, plant and equipment in the period. This measure is intended to capture Taseko's share of the total site operating costs incurred in the quarter at the Gibraltar mine calculated on a consistent basis for the periods presented.

(Cdn$ in thousands, unless otherwise indicated) - 75% basis (except for Q1 2023)	2023 Q11	2022 Q4	2022 Q3	2022 Q2	2022 Q1
Site operating costs	74,438	75,806	69,920	64,237	59,859
Add:
Capitalized stripping costs	12,721	3,866	1,121	11,887	15,142
Total site costs - Taseko share	87,159	79,672	71,041	76,124	75,001
Total site costs - 100% basis	112,799	106,230	94,721	101,500	100,002

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TASEKO MINES LIMITED

Management's Discussion and Analysis

¹ Q1 2023 includes the impact from the March 15, 2023 acquisition of Cariboo from Sojitz, which increased the Company's Gibraltar mine ownership from 75% to 87.5%.

Adjusted net income (loss)

Adjusted net income (loss) removes the effect of the following transactions from net income as reported under IFRS:

• Unrealized foreign currency gain/loss;
• Unrealized gain/loss on derivatives; and
• Loss on settlement of long-term debt and call premium, including realized foreign exchange gains.

Management believes these transactions do not reflect the underlying operating performance of our core mining business and are not necessarily indicative of future operating results. Furthermore, unrealized gains/losses on derivative instruments, changes in the fair value of financial instruments, and unrealized foreign currency gains/losses are not necessarily reflective of the underlying operating results for the reporting periods presented.

(Cdn$ in thousands, except per share amounts)	2023 Q1		2022 Q4		2022 Q3		2022 Q2
Net income (loss)	4,439		(2,275	)	(23,517	)	(5,274	)
Unrealized foreign exchange (gain) loss	(950	)	(5,279	)	28,083		11,621
Unrealized (gain) loss on derivatives	2,190		20,137		(72	)	(30,747	)
Estimated tax effect of adjustments	(591	)	(5,437	)	19		8,302
Adjusted net income (loss)	5,088		7,146		4,513		(16,098	)
Adjusted EPS	0.02		0.02		0.02		(0.06	)

(Cdn$ in thousands, except per share amounts)	2022 Q1		2021 Q4		2021 Q3		2021 Q2
Net income	5,095		11,762		22,485		13,442
Unrealized foreign exchange (gain) loss	(4,398	)	(1,817	)	9,511		(3,764	)
Unrealized (gain) loss on derivatives	7,486		4,612		(6,817	)	370
Estimated tax effect of adjustments	(2,021	)	(1,245	)	1,841		(100	)
Adjusted net income	6,162		13,312		27,020		9,948
Adjusted EPS	0.02		0.05		0.10		0.04

Adjusted EBITDA

Adjusted EBITDA is presented as a supplemental measure of the Company's performance and ability to service debt. Adjusted EBITDA is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the industry, many of which present Adjusted EBITDA when reporting their results.  Issuers of "high yield" securities also present Adjusted EBITDA because investors, analysts and rating agencies consider it useful in measuring the ability of those issuers to meet debt service obligations.

Adjusted EBITDA represents net income before interest, income taxes, and depreciation and eliminates the impact of a number of items that are not considered indicative of ongoing operating performance. Certain items of expense are added and certain items of income are deducted from net income that are not likely to recur or are not indicative of the Company's underlying operating results for the reporting periods presented or for future operating performance and consist of:

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TASEKO MINES LIMITED

Management's Discussion and Analysis

• Unrealized foreign exchange gains/losses;
• Unrealized gain/loss on derivatives;
• Amortization of share-based compensation expense.

(Cdn$ in thousands)	2023 Q1		2022 Q4		2022 Q3		2022 Q2
Net income (loss)	4,439		(2,275	)	(23,517	)	(5,274	)
Add:
Depletion and amortization	12,027		10,147		13,060		15,269
Finance expense	12,309		10,135		12,481		12,236
Finance income	(921	)	(700	)	(650	)	(282	)
Income tax expense	3,356		1,222		3,500		922
Unrealized foreign exchange (gain) loss	(950	)	(5,279	)	28,083		11,621
Unrealized (gain) loss on derivatives	2,190		20,137		(72	)	(30,747	)
Amortization of share-based compensation expense (recovery)	3,609		1,794		1,146		(2,061	)
Adjusted EBITDA	36,059		35,181		34,031		1,684

(Cdn$ in thousands)	2022 Q1		2021 Q4		2021 Q3		2021 Q2
Net income	5,095		11,762		22,485		13,442
Add:
Depletion and amortization	13,506		16,202		17,011		17,536
Finance expense	12,155		12,072		11,875		11,649
Finance income	(166	)	(218	)	(201	)	(184	)
Income tax expense	1,188		9,300		22,310		7,033
Unrealized foreign exchange (gain) loss	(4,398	)	(1,817	)	9,511		(3,764	)
Unrealized (gain) loss on derivatives	7,486		4,612		(6,817	)	370
Amortization of share-based compensation expense	3,273		1,075		117		1,650
Adjusted EBITDA	38,139		52,988		76,291		47,732

Earnings from mining operations before depletion and amortization

Earnings from mining operations before depletion and amortization is earnings from mining operations with depletion and amortization added back. The Company discloses this measure, which has been derived from our financial statements and applied on a consistent basis, to provide assistance in understanding the results of the Company's operations and financial position and it is meant to provide further information about the financial results to investors.

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TASEKO MINES LIMITED

Management's Discussion and Analysis

	Three months ended March 31,
(Cdn$ in thousands)	2023	2022
Earnings from mining operations	29,112	29,267
Add:
Depletion and amortization	12,027	13,506
Earnings from mining operations before depletion and amortization	41,139	42,773

Site operating costs per ton milled

(Cdn$ in thousands, except per ton milled amounts)		2023 Q11		2022 Q4		2022 Q3		2022 Q2		2022 Q1
Site operating costs (included in cost of sales)		74,438		75,806		69,920		64,237		59,859
Tons milled (thousands) (75% basis except for Q1 2023)		5,498		5,462		6,172		5,774		5,285
Site operating costs per ton milled	$	13.54	$	13.88	$	11.33	$	11.13	$	11.33

¹ Q1 2023 includes the impact from the March 15, 2023 acquisition of Cariboo from Sojitz, which increased the Company's Gibraltar mine ownership from 75% to 87.5%.

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