40-F

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 40-F

☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

OR

☒ ANNUAL REPORT PURSUANT TO SECTION 13(a) OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2017 Commission File Number: 001-31965

TASEKO MINES LIMITED

(Exact name of Registrant as specified in its charter)

British Columbia	1040	Not Applicable
(Province or Other Jurisdiction of Incorporation or Organization)	(Primary Standard Industrial Classification Code)	(I.R.S. Employer Identification No.)

15^th Floor – 1040 West Georgia Street

Vancouver, British Columbia

Canada V6E 4H1

(778) 373-4533

(Address and telephone number of Registrant’s principal executive offices)

Corporation Service Company

Suite 400, 2711 Centerville Road

Wilmington, Delaware 19808

(800) 927-9800

(Name, address (including zip code) and telephone number (including

area code) of agent for service in the United States)

Securities registered or to be registered pursuant to section 12(b) of the Act:

Title Of Each Class	Name Of Each Exchange On Which Registered
Common Shares, no par value	NYSE American

Securities registered or to be registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

For annual reports, indicate by check mark the information filed with this Form:

☒ Annual Information Form ☒ Audited Annual Financial Statements

Indicate the number of outstanding shares of each of the Registrant’s classes of capital or common stock as of the close of the period covered by the annual report: 226,999,734 Common Shares as of December 31, 2017

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  ☒                     No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).

Yes  ☐                     No  ☐

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.

Emerging growth company  ☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act.  ☐

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

INTRODUCTORY INFORMATION

Taseko Mines Limited (the “Company” or “Taseko”) is a Canadian public company whose common shares are listed on the Toronto Stock Exchange and the NYSE American Exchange (the “NYSE American”). Taseko is a “foreign private issuer” as defined in Rule 3b-4 under Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is eligible to file this annual report on Form 40-F (the “Annual Report”) pursuant to the multi-jurisdictional disclosure system (the “MJDS”).

PRINCIPAL DOCUMENTS

The following documents that are filed as exhibits to this annual report are incorporated by reference herein:

Document	Exhibit No.
Annual Information Form of the Company for the year ended December 31, 2017 (the “AIF”)	99.5
Audited consolidated financial statements of the Company for the years ended December 31, 2017 and 2016, including the report of independent registered public accounting firm with respect thereto (the “Audited Financial Statements”)	99.6
Management’s Discussion and Analysis of the Company for the year ended December 31, 2017 (the “MD&A”)	99.7

NOTE TO UNITED STATES READERS REGARDING DIFFERENCES

BETWEEN UNITED STATES AND CANADIAN REPORTING PRACTICES

International Financial Reporting Standards

The Company is permitted under the MJDS to prepare this Annual Report in accordance with Canadian disclosure requirements, which are different from those of the United States.

The Company’s Audited Consolidated Financial Statements that are incorporated by reference into this Registration Statement have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (the “IASB”).

DISCLOSURE CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Disclosure controls and procedures are defined in Rule 13a-15(e) under the Exchange Act to mean controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms and includes, without limitation, controls and procedures designed to ensure that such information is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

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Management’s Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, our management carried out an evaluation, with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures, as defined in Rule 13a-15(e), were effective as at December 31, 2017.

See “Internal Controls Over Financial Reporting and Disclosure Controls and Procedures” on page 27 of the MD&A incorporated herein by reference.

INTERNAL CONTROLS OVER FINANCIAL REPORTING

Internal Control over Financial Reporting

Internal control over financial reporting is defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act as a process designed by, or under the supervision of, the issuer’s principal executive and principal financial officers and effected by the issuer’s board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

• pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

• provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

• provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that may have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness of internal control over financial reporting to future periods are subject to risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management’s Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting (as such term is defined in Rule 13a-15(f) of the Exchange Act) for the Company.

With the participation of the CEO and CFO, management carried out an evaluation of the Company’s internal control over financial reporting as at December 31, 2017. In making this evaluation, the Company’s management used the framework established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based upon this evaluation, management concluded that the Company’s internal control over financial reporting was effective as at December 31, 2017.

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A copy of management’s report on the effectiveness of our internal controls is included under “Management’s Report on Internal Control Over Financial Reporting” on page 3 of our Audited Consolidated Financial Statements incorporated herein by reference.

Attestation Report of the Registered Public Accounting Firm

The Company is required to provide an attestation report of the Company’s independent registered public accounting firm on internal control over financial reporting as of December 31, 2017. In this report, the Company’s auditor, KPMG LLP, must state its opinion as to the effectiveness of the Company’s internal control over financial reporting as of December 31, 2017. KPMG LLP has audited the Company’s internal controls over financial reporting and has issued an attestation report on the Company’s internal control over financial reporting as of December 31, 2017 which is included in our Audited Consolidated Financial Statements incorporated herein by reference.

No Changes in Internal Control Over Financial Reporting

There were no changes in the Company’s internal control over financial reporting that occurred during the period covered by this Annual Report that have materially affected, or are reasonably likely to affect, the Company’s internal control over financial reporting.

NOTICES PURSUANT TO REGULATION BTR

The Company did not send any notices required by Rule 104 of Regulation BTR during the year ended December 31, 2017 concerning any equity security subject to a blackout period under Rule 101 of Regulation BTR.

AUDIT AND RISK COMMITTEE

The disclosure provided under “Composition of Audit and Risk Committee” on page 87 of our AIF incorporated herein by reference. The Company’s Board of Directors has established a separately-designated Audit and Risk Committee of the Board in accordance with Section 3(a)(58)(A) of the Exchange Act.

AUDIT AND RISK COMMITTEE FINANCIAL EXPERT

The Company’s Board of Directors has determined that Richard Mundie, Geoffrey Burns, and Alex Morrison, members of the Audit and Risk Committee of the Board, are audit committee financial experts (as that term is defined in Item 407 of Regulation S-K under the Exchange Act) and are independent directors under applicable laws and regulations and the requirements of the NYSE American Exchange.

PRINCIPAL ACCOUNTANT FEES AND SERVICES

The disclosure provided under “Principal Accountant Fees and Services” on page 88 of our AIF incorporated herein by reference.

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AUDIT AND RISK COMMITTEE PRE-APPROVAL POLICIES AND PROCEDURES

The disclosure provided under “Audit and Risk Committee—Pre-Approval Policies and Procedures” on page 88 of our AIF incorporated herein by reference.

OFF-BALANCE SHEET ARRANGEMENTS

The Company has not entered into any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company’s financial condition, changes in financial condition, revenues, expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

CONTRACTUAL OBLIGATIONS

The disclosures provided under “Commitments and contingencies” on page 18 of our MD&A incorporated herein by reference.

CODE OF ETHICS

The disclosure provided under “Code of Ethics” on page 88 of our AIF incorporated herein by reference.

During the Company’s fiscal year ended December 31, 2017, the Company did not (i) substantively amend its Code of Ethics or (ii) grant a waiver, including any implicit waiver, from any provision of its Code of Ethics with respect to any of the directors, executive officers or employees subject to it.

NYSE AMERICAN CORPORATE GOVERNANCE

The Company is subject to corporate governance requirements prescribed under applicable Canadian securities laws, rule and policies. The Company is also subject to corporate governance requirements prescribed by the listing standards of the NYSE American, and the rules and regulations promulgated by the SEC under the Exchange Act (including those applicable rules and regulations mandated by the Sarbanes-Oxley Act of 2002).

Section 110 of the NYSE American company guide permits NYSE American to consider the laws, customs and practices of foreign issuers in relaxing certain NYSE American listing criteria, and to grant exemptions from NYSE American listing criteria based on these considerations. A company seeking relief under these provisions is required to provide written certification from independent local counsel that the non-complying practice is not prohibited by home country law. A description of the significant ways in which the Company’s governance practices differ from those followed by domestic companies pursuant to NYSE American standards is contained on the Company’s website at www.tasekomines.com

The Company’s governance practices also differ from those followed by U.S. domestic companies pursuant to NYSE American listing standards in the following manner:

Board Meetings

Section 802 (c) of the NYSE American Company Guide requires that the Board of Directors hold meetings on at least a quarterly basis. The Board of Directors of the Company is not required to meet on a quarterly basis under the laws of the Province of British Columbia.

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Solicitation of Proxies

NYSE American requires the solicitation of proxies and delivery of proxy statements for all shareholder meetings, and requires that these proxies shall be solicited pursuant to a proxy statement that conforms to applicable SEC proxy rules. Since the Company is a foreign private issuer, the equity securities of the Company are exempt from the proxy rules set forth in Sections 14(a), 14(b), 14(c) and 14(f) of the Exchange Act. The Company solicits proxies in accordance with applicable rules and regulations in Canada.

Shareholders Approval for Dilutive Private Placement Financings

Section 713 of the NYSE American Company Guide requires that the Company obtain the approval of its shareholders for share issuances equal to 20 percent or more of presently outstanding shares for a price which is less than the greater of book or market value of the shares. This requirement does not apply to public offerings. There is no such requirement under British Columbia law or under the Company’s home stock exchange rules (Toronto Stock Exchange (“TSX”)) unless the dilutive financing:

(i) materially affects control of the issuer;

(ii) provides consideration to insiders in the aggregate of 10% or greater of the issuer’s market capitalization or outstanding shares, or a non-diluted basis, where certain conditions are met; and

(iii) is in respect of private placement or an acquisition where the issuer will issue shares in excess of 25% of its presently outstanding shares, on a non-diluted basis.

The Company will seek a waiver from NYSE American’s section 713 requirements should a dilutive private placement financing trigger the NYSE American shareholders’ approval requirement in circumstances where the same financing does not trigger such a requirement under British Columbia law or under the TSX rules.

The Company believes that there are otherwise no significant differences between its corporate governance policies and those required to be followed by United States domestic issuers listed on the NYSE American. In particular, in addition to having a separate Audit and Risk Committee, the Company’s Board of Directors has established a separately-designated Compensation Committee that materially meets the requirements for a compensation committee under section 805 of the NYSE American Company Guide, as currently in force.

Copies of the Company’s corporate governance materials are available on the Company’s website at www.tasekomines.com (under the About Us / Corporate Governance tabs). In addition, the Company is required by National Instrument 58-101 of the Canadian Securities Administrators, Disclosure of Corporate Governance Practices, to describe its practices and policies with regard to corporate governance in management information circulars that are furnished to the Company’s shareholders in connection with annual meetings of shareholders.

MINE SAFETY DISCLOSURE

Pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”), issuers that are operators, or that have a subsidiary that is an operator, of a coal or other mine in the United States are required to disclose in their periodic reports filed with the SEC information regarding specified health and safety violations, orders and citations, related assessments and legal actions, and mining-related fatalities under the regulation of the Federal Mine Safety and Health Administration under the Federal Mine Safety and Health Act of 1977.

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The Company did not have any mines in the United States during the fiscal year ended December 31, 2017.

UNDERTAKING

The Registrant undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the Commission staff, and to furnish promptly, when requested to do so by the Commission staff, information relating to: the securities registered pursuant to Form 40-F; the securities in relation to which the obligation to file an annual report on Form 40-F arises; or transactions in said securities.

CONSENT TO SERVICE OF PROCESS

The Company previously filed an Appointment of Agent for Service of Process and Undertaking on Form F-X signed by the Company and its agent for service of process with respect to the class of securities in relation to which the obligation to file this annual report arises.

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SIGNATURES

Pursuant to the requirements of the Exchange Act, the Company certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this annual report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: March 26, 2018	TASEKO MINES LIMITED
	By:	/s/ Stuart McDonald
		Stuart McDonald
		Chief Financial Officer

EXHIBIT INDEX

Exhibit Number	Exhibit Description
99.1(1)	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section  302 of the Sarbanes-Oxley Act of 2002
99.2(1)	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section  302 of the Sarbanes-Oxley Act of 2002
99.3(1)	Certification of Chief Executive Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted pursuant to Section  906 of the Sarbanes-Oxley Act of 2002
99.4(1)	Certification of Chief Financial Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted pursuant to Section  906 of the Sarbanes-Oxley Act of 2002
99.5(1)	Annual Information Form of the Company for the year ended December 31, 2017
99.6(1)	Audited consolidated balance sheets as at December  31, 2017 and 2016 and the consolidated statements of comprehensive income (loss), changes in equity, and cash flows for the years ended December  31, 2017 and 2016, including the notes thereto and reports of the Company’s independent registered public accounting firm thereon and on the effectiveness of the Company’s internal control over financial reporting as of December  31, 2017
99.7(1)	Management’s discussion and analysis of financial condition and results of operations for the year ended December 31, 2017
99.8(1)	Consent of KPMG LLP
99.9(1)	Consent of Scott Jones, P. Eng.
99.10(1)	Consent of Ronald G. Simpson, P. Geo.
99.11(1)	Consent of Keith Merriam, P. Eng.
99.12(1)	Consent of Robert Rotzinger, P. Eng.
99.13(1)	Consent of Greg Yelland, P. Eng.
99.14(1)	Consent of Dan Johnson, P.E.
99.15(1)	Supplemental Indenture, dated March 26, 2018

⁽¹⁾  Filed as an exhibit to this Annual Report on Form 40-F

EX-99.1

Exhibit 99.1

CERTIFICATION

PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Russell E. Hallbauer, certify that:

(1) I have reviewed this annual report on Form 40-F of Taseko Mines Limited;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;

(4) The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and

(5) The issuer’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.

Date:	March 26, 2018
By:	/s/ R. Hallbauer
Name:	Russell E. Hallbauer
Title:	Chief Executive Officer

EX-99.2

Exhibit 99.2

CERTIFICATION

PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Stuart McDonald, certify that:

(1) I have reviewed this annual report on Form 40-F of Taseko Mines Limited;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;

(4) The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and

(5) The issuer’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.

Date:	March 26, 2018
By:	/s/ Stuart McDonald
Name:	Stuart McDonald
Title:	Chief Financial Officer

EX-99.3

Exhibit 99.3

CERTIFICATION

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Russell E. Hallbauer, Chief Executive Officer of Taseko Mines Limited (the “Company”), hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1)    The Annual Report on Form 40-F of the Company for the fiscal year ended December 31, 2017 (the “Annual Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)    The information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ R. Hallbauer
Name:	Russell E. Hallbauer
Title:	Chief Executive Officer
Date:	March 26, 2018

This written statement is being furnished to the Securities and Exchange Commission as an exhibit to the Company’s Annual Report on Form 40-F. A signed original of this statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

This certification accompanies this Annual Report on Form 40-F pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

EX-99.4

Exhibit 99.4

CERTIFICATION

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Stuart McDonald, Chief Financial Officer of Taseko Mines Limited (the “Company”), hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1)    The Annual Report on Form 40-F of the Company for the fiscal year ended December 31, 2017 (the “Annual Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)    The information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Stuart McDonald
Name:	Stuart McDonald
Title:	Chief Financial Officer
Date:	March 26, 2018

This written statement is being furnished to the Securities and Exchange Commission as an exhibit to the Company’s Annual Report on Form 40-F. A signed original of this statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

This certification accompanies this Annual Report on Form 40-F pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

EX-99.5

Exhibit 99.5

ANNUAL INFORMATION FORM

FOR THE YEAR ENDED DECEMBER 31, 2017

AS AT MARCH 26, 2018

TABLE OF CONTENTS

INTRODUCTORY NOTES	2
Forward-Looking Statements	2
Documents Incorporated by Reference	4
Currency and Metric Equivalents	5
Resource Category (Classifications) Used in this AIF	6
CORPORATE STRUCTURE	10
GENERAL DEVELOPMENT OF TASEKO’s BUSINESS	10
DESCRIPTION OF BUSINESS	12
Gibraltar Mine - Technical Information	15
Florence Copper Project	26
Aley Project	37
Prosperity Project	45
RISK FACTORS	55
DIVIDENDS	70
DESCRIPTION OF CAPITAL STRUCTURE	70
Share Capital	70
Senior Secured Notes	71
Ratings	72
MARKET FOR SECURITIES	73
DIRECTORS AND OFFICERS	73
Committees of the Board of Directors	75
Principal Occupations and Other Information	75
Cease Trade Orders, Bankruptcies, Penalties or Sanctions	83
Potential Conflicts of Interest	84
LEGAL PROCEEDINGS AND REGULATORY ACTIONS	85
INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS	85
TRANSFER AGENT AND REGISTRAR	85
MATERIAL CONTRACTS	85
INTERESTS OF EXPERTS	85
ADDITIONAL INFORMATION	87
AUDIT AND RISK COMMITTEE	87

FIGURES

FIGURE 1: LOCATION OF TASEKO’S PROPERTIES 13

APPENDIX A

INTRODUCTORY NOTES

Forward-Looking Statements

This Annual Information Form (“AIF”), including the documents incorporated by reference, contain forward-looking statements and forward-looking information (collectively referred to as “forward-looking statements”) which may not be based on historical fact, including without limitation statements regarding our expectations in respect of future financial position, business strategy, future production, reserve potential, exploration drilling, exploitation activities, events or developments that we expect to take place in the future, projected costs and plans and objectives. Often, but not always, forward-looking statements can be identified by the use of the words “believes”, “may”, “plan”, “will”, “estimate”, “scheduled”, “continue”, “anticipates”, “intends”, “expects”, and similar expressions.

Such statements reflect our management’s current views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and known or unknown risks and contingencies. Many factors could cause the Company’s actual results, performance or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements, including, among others:

• uncertainties about the future market price of copper and the other metals that we produce or may seek to produce;

• changes in general economic conditions, the financial markets and in the demand and market price for our input costs, such as diesel fuel, steel, concrete, electricity and other forms of energy, mining equipment, and fluctuations in exchange rates, particularly with respect to the value of the U.S. dollar and Canadian dollar, and the continued availability of capital and financing;

• inherent risks associated with mining operations;

• the risk of inadequate insurance or inability to obtain insurance to cover mining risks;

• uncertainties related to the accuracy of our estimates of mineral reserves (as defined below), mineral resources (as defined below), production rates and timing of production, future production and future cash and total costs of production and milling;

• uncertainties related to feasibility studies that provide estimates of expected or anticipated costs, expenditures and economic returns from a mining project;

• the availability of, and uncertainties relating to the development of, additional financing and infrastructure necessary for the development of our projects;

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• our ability to comply with the extensive governmental regulation to which our business is subject;

• uncertainties related to the ability to obtain necessary title, licenses and permits for future development projects and project delays due to third party opposition;

• uncertainties related to unexpected judicial or regulatory proceedings;

• changes in, and the effects of, the laws, regulations and government policies affecting our exploration and development activities and mining operations, particularly laws, regulations and policies;

• our dependence solely on our 75% interest in Gibraltar (as defined below) for revenues;

• our ability to extend existing concentrate off-take agreements or enter into new agreements;

• environmental issues and liabilities associated with mining including processing and stock piling ore;

• labor strikes, work stoppages, or other interruptions to, or difficulties in, the employment of labor in markets in which we operate mines, or environmental hazards, industrial accidents, equipment failure or other events or occurrences, including third party interference that interrupt the production of minerals in our mines;

• litigation risks and the inherent uncertainty of litigation;

• the capital intensive nature of our business both to sustain current mining operations and to develop any new projects;

• our reliance upon key personnel;

• the competitive environment in which we operate;

• the effects of forward selling instruments to protect against fluctuations in copper prices;

• the risk of changes in accounting policies and methods we use to report our financial condition, including uncertainties associated with critical accounting assumptions and estimates; and

• risks related to our indebtedness; and

• other risks detailed from time-to-time in the Company’s annual reports, MD&A, quarterly reports and material change reports filed with and furnished to securities regulators, and those risks which are discussed under the heading “Risk Factors”.

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Such information is included, among other places, in the AIF under the headings “Description of Business” and “Risk Factors”.

Should one or more of these risks and uncertainties materialize, or should underlying factors or assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Material factors or assumptions involved in developing forward-looking statements include, without limitation, that:

• the price of copper and other metals will not decline significantly or for a protracted period of time;

• Gibraltar will not experience any significant production disruptions that would materially affect revenues; and

• the Company will have sufficient working capital and be able to secure additional funding necessary for the development and continued advancement of its projects.

These factors should be considered carefully and readers are cautioned not to place undue reliance on the forward-looking statements. Readers are cautioned that the foregoing list of risk factors is not exhaustive and it is recommended that prospective investors carefully consult the more complete discussion of risks and uncertainties facing the Company included under “Risk Factors” in this AIF for a more detailed discussion of these risks.

Although the Company believes that the expectations conveyed by the forward-looking statements are reasonable based on the information available to it on the date such statements were made, no assurances can be given as to future results, approvals or achievements. The forward-looking statements contained in this AIF and the documents incorporated by reference herein are expressly qualified by this cautionary statement. The Company disclaims any duty to update any of the forward-looking statements after the date of the AIF to conform such statements to actual results or to changes in the Company’s expectations except as otherwise required by applicable law.

Documents Incorporated by Reference

Incorporated by reference into this AIF are the audited consolidated financial statements, together with the auditors’ report thereon, and Management’s Discussion and Analysis for Taseko Mines Limited (the “Company” or “Taseko”) for the year ended December 31, 2017. The financial statements are available for review on the SEDAR website located at www.sedar.com. All financial information in this AIF is prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board using Canadian dollars.

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Currency and Metric Equivalents

The Company’s accounts are maintained in Canadian dollars and all dollar amounts herein are expressed in Canadian dollars unless otherwise indicated.

The following factors for converting Imperial measurements into metric equivalents are provided:

To Convert from Imperial	To Metric	Multiply by
acres	hectares	0.405
feet	metres	0.305
miles	kilometres	1.609
tons (2,000 pounds)	tonnes	0.907
ounces (troy)/ton	grams/tonne	34.286

In this AIF, the following capitalized terms have the defined meanings set forth below:

NYSE American	The NYSE American, formerly known as the NYSE MKT, being one of the two stock exchanges (together with the TSX) on which the Common Shares are listed.
ASCu	The weight percentage of copper per unit weight of rock that is acid soluble, including native copper.
Common Shares	The Company’s common shares without par value, being the only class or kind of the Company’s authorized capital.
Company	Taseko Mines Limited, including its subsidiaries, unless the context requires otherwise.
Carbonatite   deposit	Carbonatite deposits are igneous rocks largely consisting of the carbonate minerals calcite and dolomite, which contain the niobium mineral pyrochlore, rare earth minerals or copper sulphide minerals.
Concentrator	A type of mineral processing facility that converts raw ore from the mine into a metal concentrate that can then be sold to a smelter for further processing.
Epithermal Deposit	A mineral deposit formed at low temperature (50-200°C), usually within one kilometre of the earth’s surface, often as structurally controlled veins.

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Flotation	Flotation is a method of mineral separation whereby, after crushing and grinding ore, froth created in a slurry by a variety of reagents causes some finely crushed minerals to float to the surface where they are skimmed off.
NSR	Net smelter return, a general proxy for the gross value of metals derived from concentrates delivered to a smelter for refining.
Mineral Deposit	A deposit of mineralization, which may or may not be ore.
Mineral Symbols	Ag – silver; Au – gold; Cu – copper; Pb – lead; Zn – Zinc; Mo – molybdenum; and Nb – niobium.
Porphyry Deposit	A type of mineral deposit in which ore minerals are widely disseminated, generally of low grade but large tonnage.
Semi-autogenous   Grinding (“SAG”)	SAG mills are essentially autogenous mills, but utilize grinding balls to aid in grinding like in a ball mill. A SAG mill is generally used as a primary or first stage grinding solution.
Solvent Extraction/   Electrowinning   (“SX/EW”)	Solvent extraction is the technique of transferring a solute from one solution to another; for example when copper oxide is dissolved into solution, copper becomes the solute. Electrowinning is the process in which an electric current flows between a pair of electrodes (anode & cathode) in a solution containing metal ions (electrolyte). Metal is deposited on the cathode in accordance with the metal’s ability to gain or lose electrons. Since ion deposition is selective, the cathode product is generally high grade and requires little further refining.
Taseko	Taseko Mines Limited, including its subsidiaries, unless the context requires otherwise.
TSX	The Toronto Stock Exchange, being one of the two stock exchanges (together with the NYSE American) on which the Common Shares are listed.

Resource Category (Classifications) Used in this AIF

The discussion of mineral deposit classifications in this AIF adheres to the resource/reserve definitions and classification criteria developed by the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM Council”). Estimated mineral resources fall into two broad categories dependent on whether the economic viability of them has been established and these are namely “resources” (economic viability not established) and ore “reserves” (viable economic production is feasible). Resources are sub-divided into categories depending on the confidence

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level of the estimate based on level of detail of sampling and geological understanding of the deposit. The categories, from lowest confidence to highest confidence, are inferred resource, indicated resource and measured resource. Reserves are similarly sub-divided by order of confidence into probable (lowest) and proven (highest). These classifications can be more particularly described as follows in accordance with the CIM Definition Standards on Mineral Resources and Reserves (the “2014 CIM Standards”) adopted by the CIM Council on May 10, 2014:

A “feasibility study” is a comprehensive technical and economic study of the selected development option for a mineral project that includes appropriately detailed assessments of applicable modifying factors together with any other relevant operational factors and detailed financial analysis that are necessary to demonstrate, at the time of reporting, that extraction is reasonably justified (economically mineable). The results of the study may reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. The confidence level of the study will be higher than that of a pre-feasibility study.

A “Mineral Resource” is a concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling.

An “Inferred Mineral Resource” is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

An “Indicated Mineral Resource” is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation. An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral Resource and may only be converted to a Probable Mineral Reserve.

A “Measured Mineral Resource” is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning and final evaluation of the economic viability of the deposit. Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality

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continuity between points of observation. A Measured Mineral Resource has a higher level of confidence than that applying to either an Indicated Mineral Resource or an Inferred Mineral Resource. It may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve.

A “Mineral Reserve” is the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at Pre-Feasibility or Feasibility level as appropriate that include application of Modifying Factors. Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified. The U.S. Securities and Exchange Commission require permits in hand or their issuance imminent to classify mineralized material as reserves.

A “pre-feasibility study” is a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a preferred mining method, in the case of underground mining, or the pit configuration, in the case of an open pit, is established and an effective method of mineral processing is determined. It includes a financial analysis based on reasonable assumptions on the modifying factors and the evaluation of any other relevant factors which are sufficient for a Qualified Person, acting reasonably, to determine if all or part of the mineral resource may be converted to a mineral reserve at the time of reporting. A pre-feasibility is at a lower confidence level than a feasibility study.

A “Probable Mineral Reserve” is the economically mineable part of an Indicated, and in some circumstances, a Measured Mineral Resource. The confidence in the Modifying Factors applying to a Probable Mineral Reserve is lower than that applying to a Proven Mineral Reserve.

A “Proven Mineral Reserve” is the economically mineable part of a Measured Mineral Resource. A Proven Mineral Reserve implies a high degree of confidence in the Modifying Factors.

“Modifying Factors” are considerations used to convert Mineral Resources to Mineral Reserves. These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors.

CAUTIONARY NOTE TO UNITED STATES INVESTORS CONCERNING ESTIMATES OF RESERVES AND MEASURED, INDICATED AND INFERRED RESOURCES

The disclosure in this AIF, including the documents incorporated by reference herein, uses terms that comply with reporting standards in Canada and certain estimates are made in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and the 2014 CIM Standards. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all reserve and resource estimates contained in or incorporated by reference in this AIF have been prepared in accordance with NI 43-101 and the 2014 CIM Standards. These

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standards differ significantly from the requirements of the SEC, and reserve and resource information contained herein and incorporated by reference herein may not be comparable to similar information disclosed by U.S. companies.

This AIF includes mineral reserve estimates that have been calculated in accordance with NI 43-101, as required by Canadian securities regulatory authorities. For United States reporting purposes, SEC Industry Guide 7 (under the United States Securities Exchange Act of 1934 (the “Exchange Act”)), as interpreted by Staff of the SEC, applies different standards in order to classify mineralization as a reserve. As a result, the definitions of proven and probable reserves used in NI 43-101 and the 2014 CIM Standards differ from the definitions in the SEC Industry Guide 7. Under SEC standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. Among other things, all necessary permits would be required to be in-hand or their issuance be imminent in order to classify mineralized material as reserves under the SEC standards. Accordingly, certain mineral reserve estimates contained in this AIF may not qualify as “reserves” under SEC standards, unless expressly stated to so qualify.

In addition, this AIF uses the terms “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” to comply with the reporting standards in Canada. We advise investors that while those terms are recognized and required by Canadian regulations, the SEC does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories that are not already classified as “reserves” will ever be converted into mineral reserves. These terms have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility.

Further, “inferred resources” have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Therefore, Investors are also cautioned not to assume that all or any part of the inferred resources exists. In accordance with Canadian rules, estimates of “inferred mineral resources” cannot form the basis of feasibility or other economic studies.

It cannot be assumed that all or any part of “measured mineral resources”, “indicated mineral resources”, or “inferred mineral resources” will ever be upgraded to a higher category. Investors are cautioned not to assume that any part of the reported “measured mineral resources”, “indicated mineral resources”, or “inferred mineral resources” in this AIF that are not already classified as “reserves” is economically or legally mineable.

In addition, disclosure of “contained ounces” in respect of resources that do not qualify as reserves is permitted disclosure under Canadian regulations; however, the SEC only permits issuers to report reserves in ounces and requires other mineralized material to be reported as in place tonnage and grade without reference to unit measures.

For the above reasons, information contained in this AIF and the documents incorporated by reference herein containing descriptions of our mineral deposits may not be comparable to

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similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.

CORPORATE STRUCTURE

Taseko Mines Limited was incorporated on April 15, 1966, pursuant to the Company Act (British Columbia). This corporate legislation was superseded in 2004 by the British Columbia Business Corporations Act which is now the corporate law statute that governs us. Our registered office is located at Suite 1500, 1055 West Georgia Street, Vancouver, British Columbia, V6E 4N7, and our head office is located at Suite 1500, 1040 West Georgia Street, Vancouver, British Columbia, V6E 4H1.

The following is a list of the Company’s principal subsidiaries:

	Jurisdiction of Incorporation	Ownership
Gibraltar Mines Ltd. 1	British Columbia	100%
Taseko Holdings Ltd.	British Columbia	100%
Aley Corporation	British Columbia	100%
Curis Resources Ltd. 2	British Columbia	100%
Curis Holdings (Canada) Ltd. 2	British Columbia	100%
Florence Copper Inc. 2	Nevada, USA	100%

^1. Taseko owns 100% of Gibraltar Mines Ltd., which owns 75% of the Gibraltar Joint Venture.

^2. Taseko owns 100% of Curis Resources Ltd., which owns 100% of Curis Holdings (Canada) Ltd., which owns 100% of Florence Copper Inc.

Gibraltar Joint Venture

On March 31, 2010, we established by two contracts an unincorporated joint venture (“JV”) between Gibraltar Mines Ltd., and Cariboo Copper Corp. (“Cariboo”) over the Gibraltar copper and molybdenum mine (the “Gibraltar Mine” or “Gibraltar”), whereby Cariboo acquired a 25% interest in the Gibraltar Mine and we retained a 75% interest with Gibraltar Mines Ltd. operating the mine for the two JV participants. Under the related Joint Venture Formation Agreement (“JVFA”), the Company contributed to the Joint Venture substantially all assets and obligations pertaining to the Gibraltar Mine, and Cariboo paid the Company $187 million to obtain its 25% interest in the JV. Gibraltar Mines Ltd. continues to be the operator of the Gibraltar Mine under the Joint Venture Operating Agreement (the “JVOA”) which is filed at www.sedar.com. Cariboo is a Japanese consortium jointly owned by Sojitz Corporation (50%), Dowa Metals & Mining Co., Ltd. (25%) and Furukawa Co., Ltd. (25%).

GENERAL DEVELOPMENT OF TASEKO’s BUSINESS

Taseko is a Vancouver, B.C. headquartered mining company that has been focused on the operation of the Gibraltar Mine, and on the development of the Florence Copper Project, the Aley Niobium Project, and the New Prosperity Gold and Copper Project. All of these properties are located in British Columbia, Canada except for the Florence Copper project which is located

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in Arizona, United States. The following is a summary of the development of our business over the last three financial years:

2015

In May 2015, the Company completed an updated mine plan for the Gibraltar Mine featuring a 50% decrease in strip ratio and a reduced cut-off grade, achieving an overall reduction in copper production costs with a slightly lower amount of copper produced. The new mine plan was a result of a detailed, six-month engineering study and forms the basis of an updated NI 43-101 compliant reserve. The reserve estimate is documented in a technical report entitled “Technical Report on Mineral Reserve Update at the Gibraltar Mine” dated June 15, 2015, prepared by Taseko and Gibraltar Mine staff under the supervision of Scott Jones, P. Eng., a Qualified Person under NI 43-101.

In January 2015, the British Columbia Minister of Environment granted the Company a five-year extension to the New Prosperity Environmental Assessment Certificate.

2016

In February 2016, Taseko announced that it had filed a civil claim in the B.C. Supreme Court against the Canadian federal government. The claim seeks damages in relation to the February 26, 2014 decision of the Minister of the Environment concerning the New Prosperity Project in that the Government of Canada and its agents failed to meet the legal duties that were owed to Taseko and that in doing so they caused and continue to cause damages, expenses and loss to Taseko.

Taseko has been proceeding with its request to amend the British Columbia environmental assessment certificate for the New Prosperity Project. In addition, Taseko has filed a Notice of Work with the Ministry of Energy & Mines which will allow the Company to gather information to advance mine permitting under the Mines Act of British Columbia.

2017

In January 2017, the Company announced that completed technical work on the Florence Copper Project had resulted in a significant improvement in project economics. The results are described in the report titled “NI 43-101 Technical Report, Florence Copper Project, Florence, Pinal County, Arizona” dated February 28, 2017, amended and restated December 4, 2017 prepared by Dan Johnson, P.E., a Qualified Person under NI 43-101, and is filed on www.sedar.com.

In September 2017, the Company announced that it had received all necessary state and federal permits to build and operate the Florence Copper Production Test Facility (“PTF”) in Arizona, and the Company’s board of directors had approved the construction of the PTF at an estimated cost of US$25 million.

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In March 2017, the Company completed a US$33 million streaming agreement with Osisko Gold Royalties Ltd (“Osisko”) for Taseko’s 75% share of payable silver production from the Gibraltar Mine.

In June 2017, the Company completed an offering of US$250 million aggregate principal amount of 8.75% senior secured notes due 2022 (the “2017 Secured Notes”). The Company used the net proceeds of the offering and $72 million of its existing cash balance to fund the redemption of its US$200 million senior notes due 2019 and to repay its senior secured credit facility (due March 2019) and the related copper call option. The 2017 Secured Notes have been issued under and are governed by a trust indenture dated as of June 14, 2017 among the Company, certain of the Company’s subsidiaries as guarantors, The Bank of New York Mellon, as U.S. trustee, and the BNY Trust Company of Canada, as Canadian co-trustee and collateral agent (the “2017 Secured Note Indenture”). Information on the terms of the 2017 Secured Notes and the 2017 Secured Note Indenture is incorporated by reference from the Company’s material change report dated June 14, 2017 filed on SEDAR on June 24, 2017.

In July 2017, Gibraltar’s mining and milling operations were impacted by wildfires in the Cariboo region which limited employees’ ability to travel to the mine site, due to restrictions on road access and evacuation orders in the region.

DESCRIPTION OF BUSINESS

Taseko is a mining company that seeks to create shareholder value by acquiring, developing, and operating large tonnage mineral deposits which, under conservative forward metal price assumptions, are capable of supporting a mine for ten years or longer.

Taseko’s principal business activity is operating the Gibraltar Mine and advancing its other projects to a production decision. In recent years, the Company has expanded the Gibraltar Mine ore concentrator, added a second ore concentrator, increased the mining fleet and made other production improvements at the mine. Our business is focused on the production of copper and molybdenum from the Gibraltar Mine and on securing environmental permits for the proposed Florence Copper Project, Aley Niobium Project, and the New Prosperity Gold and Copper Project.

The Company also owns the Harmony Gold Project, currently a dormant exploration stage gold property.

All projects are operated solely by Taseko, directly or through subsidiaries and are 100% owned, except the Gibraltar Mine which is 75% owned.

The map below highlights the location of the Company’s four properties in British Columbia, Canada and Florence Copper property in Arizona, USA:

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Figure 1: Location of Taseko’s Properties

Principal Products and Competitive Conditions

Taseko’s strategy has been to grow the Company by leveraging cash flow from the Gibraltar Mine to acquire and develop a pipeline of projects. The Company continues to believe this will generate the best, long-term returns for shareholders. Our development projects are located in British Columbia and Arizona and represent a diverse range of metals, including gold, copper, molybdenum and niobium. Taseko’s project focus is currently on the development of the Florence Copper Project where it has incurred expenditures of $15.2 million in 2017. Taseko also spent $3.4 million on the Aley Niobium and New Prosperity projects in 2017. Taseko will continue to take a prudent approach to spending on development projects.

Following a period of mine expansion and capital expenditure, Gibraltar has achieved a stable level of operations and the Company’s focus is on further improvements to operating practices to reduce unit costs. Improvement of operating costs were due to cost control initiatives which were implemented during 2015, including mine plan modifications, workforce reductions and vendor initiatives. In September 2016, the molybdenum circuit at Gibraltar was successfully restarted as a result of higher molybdenum prices, and is expected to continue contributing by-product credits in future periods.

Copper prices have been on an upward trend over the last year, with prices increasing by approximately 30% during 2017. The price of London Metals Exchange (“LME”) copper at the

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end of 2017 was US$3.25 per pound. Management believes that the market will continue to benefit from improving global copper demand and tight mine supply going forward.

The Canadian dollar exchange rate has continued to remain at a substantial discount to the U.S. dollar. A weak Canadian dollar contributes to improved operating margins at Gibraltar as approximately 80% of mine operating costs are paid in Canadian dollars.

Environmental Protection Requirements

Taseko’s mining, exploration and development activities in Canada are subject to various levels of Canadian Federal and British Columbia Provincial laws and regulations relating to the protection of the environment. Similarly, the Florence Copper Project is subject to various levels of US Federal and Arizona State laws and regulations relating to protection of the environment. All of the jurisdictions include requirements for closure and reclamation of mining properties as part of their regulatory framework.

The total liability for reclamation and closure cost obligations, as calculated in accordance with International Financial Reporting Standards, at December 31, 2017 was $107.9 million. This amount represents the present value of the estimated future costs of planned and anticipated closure and remediation activities, assuming a pre-tax discount rate of 2.3% and an inflation rate of 2.0%.

Environmental and Sustainability Policy

Taseko is committed to continual improvement towards the protection of human health and the stewardship of the environment. Taseko recognizes that responsible environmental management is critical to our success and has committed that it will:

• Consider the environmental impacts of its operations and take appropriate steps to prevent environmental pollution;

• Comply with relevant environmental legislation, regulations and corporate requirements;

• Integrate environmental policies, programs and practices into all activities;

• Ensure that all employees and service providers understand their environmental responsibilities and encourage dialogue on environmental issues;

• Develop, maintain and test emergency preparedness plans to ensure protection of the environment, employees and the public;

• Work with government and the public to develop effective and efficient measures to improve protection of the environment, based on sound science; and

• Maintain an environmental committee to review environmental performance, objectives and targets, and to ensure continued recognition of environmental issues as a high priority.

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Employees

As at December 31, 2017, the Company had the following employees and contractors:

Location	Full-time Salaried	Hourly (Unionized)	Contractors
Vancouver	18	-	1
Gibraltar	152	527	13
Florence, USA	6	-	2
Total	176	527	16

Occupational Health and Safety Policy

Taseko provides safe and healthy working conditions, and to establish operating practices which safeguard employees and physical assets.

To achieve this goal, the Company commits to:

• Meeting or exceeding all industry standards and legislative requirements;

• Developing and enforcing safe work rules and procedures;

• Providing employees with the information and training necessary for them to perform their work safely and efficiently;

• Acquiring and maintaining materials, equipment and facilities so as to promote good health and safety; and

• Encouraging employees at all levels to take a leadership role in incident prevention by reporting and/or correcting unsafe situations.

Gibraltar’s 2017 loss time frequency was 0.59 per one million man hours worked, below the British Columbia mining industry average of 1.06.

In February 2017, the Province of British Columbia Ministry of Energy and Mines awarded Gibraltar with the 2016 John Ash award at the 55th Annual Mine Safety Awards held in Victoria, BC, for the third year in a row. This prestigious award goes to the mining operation in British Columbia that has worked at least one million hours during the year with the lowest injury-frequency rate.

As construction activities ramp up at the Florence project site, Taseko is pleased to report that there were no lost time accidents in 2017.

Gibraltar Mine - Technical Information

Current Technical Report

Unless stated otherwise, information of a technical or scientific nature related to the Gibraltar Mine contained in this AIF (including documents incorporated by reference herein) is

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summarized or extracted from a technical report entitled “Technical Report on the Mineral Reserve Update at the Gibraltar Mine” dated June 15, 2015 (the “Gibraltar Technical Report”), prepared by Scott Jones, P. Eng. filed on Taseko’s profile at www.sedar.com and updated with production and development results since that time. Mr. Jones is employed by the Company as Vice-President, Engineering and is a “Qualified Person” as defined by Canadian securities regulatory instrument NI 43-101.

Project Description, Location, and Access

The Gibraltar open pit mine and related facilities are located 65 kilometres north of the town of Williams Lake and are centered at latitude 52^o 30’N and longitude 122^o 16’W in the Cariboo Mining Division. Williams Lake is approximately 590 kilometres north of Vancouver, British Columbia.

Access to the Gibraltar Mine from Williams Lake is 45 kilometres via Highway 97 to McLeese Lake, and then 20 kilometres by paved road to the mine site.

The Gibraltar Mine property consists of 244 tenures held as summarized in Table 1 below.

Table 1: Mineral Tenures – Gibraltar Mine

Tenure Type	Number	Area (ha)
Claims	212	19,815
Leases	32	2,275
Total	244	22,090

There are 32 mining leases at the Gibraltar Mine which are valid until at least October 2033 as long as renewal fees, which are due on an annual basis, are paid. Rights to use the surface accompany each mining lease. There are 212 claims included in the Gibraltar property tenure package. One of these claims is due to expire in June 2018, and the remainder are due to expire in May 2021 or later. It is intended that all leases and claims will be renewed prior to their renewal fees being due (in the case of the leases) and prior to their expiry in the case of the claims.

There are several land parcels for which surface rights were purchased outright. There is one fee simple lot at the Gibraltar Mine on which the plant site is located and annual taxes are paid. In addition, the Gibraltar Mine holds three other land parcels.

In March 2017, Taseko entered into an agreement to sell its 75% share of payable silver production from the Gibraltar Mine to Osisko Gold Royalties Ltd. There are no other royalties, overrides, back-in rights, payments or other agreements to which the project is subject.

There are no significant factors or risks that might affect access or title or ability to perform work on the property.

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History

In 1964, Gibraltar acquired a group of claims in the McLeese Lake area from Malabar Mining Co. Ltd. Canadian Exploration Limited (“Canex”) and Duval Corporation (“Duval”) had also been exploring on adjacent claims known as the Pollyanna Group. In 1969, Gibraltar, Canex and Duval entered into an agreement providing for the commingling of Gibraltar’s claims with the Pollyanna Group. In 1971, Gibraltar acquired Duval’s remaining interest in the property.

Preliminary development of the Gibraltar Mine began in October 1970. The concentrator commenced production in March, 1972 and was fully operational by April 1972. A cathode copper plant with an annual capacity of 10 million pounds of market-ready copper metal began operation in October 1986.

In October 1996, Westmin Resources Limited (“Westmin”) acquired 100% control of Gibraltar and in December 1997, Boliden Limited Westmin (Canada) Limited (“Boliden”) acquired Westmin. In March 1998, Boliden announced that it would cease mining operations at the Gibraltar Mine at the end of 1998.

In July 1999, Taseko’s subsidiary, Gibraltar Mines Ltd., purchased the Gibraltar Mine assets from Boliden and certain of its affiliates, including all mineral interests, mining and processing equipment and facilities, and assumed responsibility for reclamation obligations.

From 1999 to 2004, Taseko geologists and engineers sought to better define known resources and explored for additional mineralized material. The on-site staff completed on-going reclamation work and maintained the Gibraltar Mine for re-start. Operating and environmental permits were kept in good standing. The mine re-opened in October 2004.

Gibraltar has been owned and operated as an unincorporated joint venture between Taseko and Cariboo since March 31, 2010. The Company’s wholly-owned subsidiary, Gibraltar Mines Ltd. and Cariboo hold 75% and 25% beneficial interests in the Joint Venture, respectively.

Gibraltar increased design mill capacity to 55,000 tons per day in 2011. Gibraltar further increased design mill capacity to 85,000 tons per day in 2013 through installation of a complete independent second concentrator and a stand-alone molybdenum separation plant.

Total production since 1972 is 586 million tons of ore producing 3.1 billion pounds of copper in concentrate, 102 million pounds of cathode copper and 35 million pounds of molybdenum.

Geological Setting, Mineralization, and Deposit Types

The Gibraltar deposits are hosted by the upper Triassic Granite Mountain batholith, located within a wedge of Mesozoic and Palaeozoic rocks bounded on the west by the Fraser Fault system and on the east by the Pinchi Fault system. The Granite Mountain Batholith is a composite body consisting of three major phases; Border Phase diorite, Mine Phase tonalite, and Granite Mountain trondjhemite. Contacts between the major phases are gradational over widths ranging from two metres to several hundred metres. The regional deformation was

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accompanied by localized metasomatic alteration and associated sulphide deposition that led to the concentration of copper mineralization in specific areas of the batholith.

There are currently five defined mineralized zones on the Gibraltar Mine property. They are the Pollyanna, Granite, Gibraltar, Connector, and Extension zones. They occur in a broad zone of shearing and alteration.

Two major ore structure orientations have been recognized; the Sunset and Granite Creek systems. Ore host structures of the Sunset system are mainly shear zones, with minor development of stockworks and associated foliation lamellae whereas oriented stockworks with associated pervasive foliation lamellae predominate in the Granite Creek system.

Pyrite and chalcopyrite are the principal primary sulphide minerals. Small concentrations of other sulphides are present in the Gibraltar ores with molybdenite being a minor but economically important associate of chalcopyrite in the Pollyanna, Granite, and Connector deposits.

Exploration

There has been no material non-drilling exploration conducted on the Gibraltar property since 2000.

A property-scale Induced Polarization (“IP”) geophysical survey was designed and initiated in August 2000. Field activities included 237 kms of line cutting and some 220 kms of IP survey. Several deposit scale anomalies external to current reserves were identified and drill tested in 2003 as described in a report titled “Technical Report on the Gibraltar Mine, British Columbia” by James W. Hendry, P.Eng., and C. Stewart Wallis, P.Geo., dated March 23, 2005, which is filed on www.sedar.com.

Drilling

From 1999 to 2004, Taseko geologists and engineers sought to better define known resources and explored for additional mineralized material. A core drilling program for pit definition for the Granite Lake and PGE Connector deposits and property exploration at the 98 Oxide Zone was carried out between September and November 2005. A further drilling program carried out in 2006 was designed to define the mineral resources between the existing pits by tying together the extensive mineralization zones, and to test for additional mineralization at depth.

The 2007 program tested a number of targets to define further mineralization, provided definition drilling in the Pollyanna-Granite saddle zone and Granite West areas and included condemnation drilling for the proposed extensions of both the #5 and #6 Dump footprints. The targets for further mineralization were Gibraltar South, Pollyanna North IP anomaly, Granite South and the Gunn Zone.

The 2008 exploration program was conducted on the southern and eastern margins of the Gibraltar pit and northwest of the Gibraltar West pit. The objective was to upgrade identified

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inferred resources to indicated or measured categories through “in-fill” drilling. Holes drilled in the Gibraltar West pit area were incorporated into the 2008 reserve estimate for the new Gibraltar Extension Pit.

The 2010 program was conducted on the northern and western margins of the Gibraltar Pit, and one hole on the southwest margin. The objective was to define the ultimate limit of the Gibraltar Pit to the north and west. The 2010 drilling program met the objective of delineating mineralization to the north and west of the Gibraltar Pit. A total of 28,129 feet was drilled in 34 drill holes in 2010.

The 2011 program was aimed at identifying mineralization down-dip of the Gibraltar and Granite deposits. A total of 12,229 feet were drilled in 5 holes. A deep zone of anomalous copper ± molybdenum mineralization encountered in drill-hole 2011-003 extends from approximately 2,600 to 3,700 feet and consists of intermittent intercepts grading up to 1.3% TCu and 0.4% Mo.

In 2013, there were two drill programs completed, one in the summer and the other in the fall. Both programs targeted the projected mineralization south of the current Granite Pit. A total of 38,068 feet in 31 holes were drilled between the two programs. The objective of both programs was to increase the extent of the mineralization within two of the Granite pit pushbacks.

In early spring of 2014, a resource drill program commenced targeting the Connector pit and the area between Gibraltar East and Granite Pit. At the same time a geotechnical drill program was undertaken. A total of 38 holes between the two programs were drilled with a cumulative length of 37,456 feet. The main goals of the drilling programs were (1) to collect high-quality geological, geotechnical and assay data, (2) to improve the geological understanding of the ore body, and (3) to increase the drill density within and confidence level of the resource model.

In late 2015, one exploration drill hole was drilled to expand the current known mineralization northwest of the Extension deposit. The total depth of the hole was 2,507 feet. A significant interval of copper was encountered at above reserve grade. The mineralization to the west, northwest and at depth is open. More drilling is needed to confirm if the Extension pit can be expanded to include this material.

In 2016, two drill programs were completed. The first program targeted the conversion of resource material from inferred to measured/indicated at the Granite and Pollyanna deposits. This reserve definition program totaled 35 holes with a cumulative length of 29,342 feet. The second program was an exploration program that targeted the extension of the mineralization discovered in the 2015 exploration hole. Drilling totaled 14,432 feet in 7 holes. The preliminary exploration results were positive with the best results received from the northwest most hole.

In 2017, two drill programs were completed. The first program targeted the conversion of resource material from inferred to measured/indicated at the Granite, Pollyanna and Connector deposits. This reserve definition program totaled 38 holes with a cumulative length of 38,961 feet. The second program was an exploration program that targeted the extension of the mineralization discovered in the 2015/2016 exploration drilling with 4 holes with a cumulative

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length of 7,996 feet. This program had 2 phases: two holes (4,055 feet) drilled between January 4, 2017 and February 14, 2017 and two holes (3,941 feet) drilled between September 15, 2017 and October 3, 2017. The exploration results received have expanded the known mineralization to the west, northwest and at depth with the 2016 and 2017 drilling and remains open in these directions. More drilling is needed to prove up the extent of this mineralization.

Sampling, Analysis, and Data Verification

Over 135,000 samples have been taken for total copper analysis from drilling at Gibraltar since 1965. About 95% of these samples were also assayed for molybdenum, 52% for acid soluble copper, 41% for multi-element ICP and 30% for gold. Essentially all rock drilled and recovered is sampled in 10 ft intervals. Unconsolidated overburden material, where it exists, is generally not recovered by core drilling and therefore not usually sampled.

From discovery in 1965 through mine start-up in 1971, and since mine re-start in 2004, assays on exploration drill samples have been performed by reputable, independent third party analytical laboratories. Mine laboratory personnel performed all exploration drill sample analyses from 1979 to 2003.

Well-documented sample preparation, security and analytical procedures used on the Gibraltar drill programs since 1999 have been carried out in an appropriate manner consistent with common industry practice. The results are supported by many years of mine production. A significant amount of due diligence and analytical QAQC for copper and molybdenum has been completed on the samples that were used in the current mineral resource/reserve estimate. The quality of the work performed on the digital database provides confidence that it is of good quality and acceptable for use in geological and resource modeling of the Gibraltar deposits.

Details of sample preparation, assay laboratories, security, and data verification used in the Gibraltar drill hole sampling and analytical programs is documented in the Gibraltar Technical Report.

Mineral Processing and Metallurgical Testing

Sulphide ore from the Gibraltar deposits has been processed on-site since 1972 and run of mine oxide ore has been leached since 1986. The current mineral reserves are contained within zones which have been significantly mined, with the exception of the Extension Zone. Metallurgical testing associated with the Extension Zone returned results consistent with the larger ore body.

The basis for predictions of copper concentrate flotation recovery is plant performance data from both of the existing concentrators based on sulphide and oxide content. Copper recovery averages 88% over the remaining operating period of the reserves.

Closed circuit cleaner locked cycle tests on Gibraltar bulk copper concentrate provide recovery values in the range of 90 to 93% at a final molybdenum grade greater than 50%. Applying the predicted molybdenum recovery from the locked cycle tests to the average bulk flotation circuit

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molybdenum recovery supports the molybdenum recovery of 50% used in economic calculations.

The basis of the predictions of copper cathode produced from heap leaching and subsequent solvent extraction is based upon historical leaching recovery curves. These curves take into account the annual recovery declination from the date of material placement.

Mineral Resource and Mineral Reserve Estimates

The Gibraltar Mine mineral resources and reserves are based on the published reserves as of December 31, 2014, as documented in the Gibraltar Technical Report and reflect depletion due to mining from 2015 to 2017.

The reserve estimate uses long-term metal prices of US$2.75/lb for copper and US$11.00/lb for molybdenum and a foreign exchange of C$1.00=US$0.85.

The proven and probable sulphide reserves as of December 31, 2017, are tabulated in Table 2 below.

Table 2:   Gibraltar Mine Sulphide Mineral Reserves at 0.15% Copper Cut-off

Pit	Category	Tons (millions)(1)	Cu (%)	Mo (%)
Connector	Proven	153	0.25	0.010
	Probable	14	0.22	0.008
	Subtotal	167	0.25	0.010
Gibraltar	Proven	153	0.25	0.009
	Probable	111	0.23	0.008
	Subtotal	264	0.24	0.008
Granite	Proven	87	0.27	0.009
	Probable	9	0.25	0.007
	Subtotal	97	0.27	0.009
Extension	Proven	50	0.33	0.002
	Probable	1	0.26	0.001
	Subtotal	51	0.33	0.002
Pollyanna	Proven	84	0.25	0.007
	Probable	5	0.23	0.003
	Subtotal	89	0.25	0.007
Total		668	0.26	0.008

  (1)   Totals may not add due to rounding.

There are also oxide reserves as shown in Table 3 below. These oxide reserves are in addition to the sulphide reserves stated in Table 2.

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Table 3:   Gibraltar Mine – Oxide Mineral Reserves at 0.10% ASCu Cut-off

Pit	Category	Tons (millions)(1)	ASCu (%)
Connector	Proven	1	0.15
	Probable	14	0.15
	Subtotal	15	0.15
Gibraltar	Proven	-	0.00
	Probable	1	0.18
	Subtotal	1	0.18
Extension	Proven	-	0.00
	Probable	-	0.00
	Subtotal	-	0.00
Pollyanna	Proven	-	0.00
	Probable	1	0.12
	Subtotal	1	0.12
Total		18	0.15

 (1) Totals may not add due to rounding.

Cautionary Note to Investors concerning estimates of Measured and Indicated Resources

The following section uses the terms “measured” and “indicated resources”. We advise investors that while those terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all mineral deposits in these categories that are not already classified as “reserves” will ever be converted into reserves.

The resource estimate uses long-term metal prices of US$3.50/lb for copper and US$11.00/lb for molybdenum and a foreign exchange rate of C$1.00=US$0.90.

The mineral reserves stated in Table 2 above are contained within the mineral resources indicated in Table 4 below:

Table 4: Gibraltar Mine Mineral Resources at 0.15% Copper Cut-off

Category	Tons (millions)	Cu (%)	Mo (%)
Measured	755	0.26	0.008
Indicated	256	0.24	0.007
Total	1,011	0.25	0.008

The mineral resource and reserve estimations were completed by Gibraltar Mine staff under the supervision of Scott Jones, P.Eng., Vice-President, Engineering, a Qualified Person under NI 43-101 and the author of the Gibraltar Technical Report. Mr. Jones has verified the methods used to determine grade and tonnage in the geological model, reviewed the long-range mine plan, and directed the updated economic evaluation.

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Mining Operations

The Gibraltar Mine is a typical open pit operation that utilizes drilling, blasting, cable shovel loading and large-scale truck hauling to excavate rock. The Gibraltar Mine is planned for excavation of sulphide mineralized material of sufficient grade that it can be economically mined, crushed, ground and processed to a saleable product by froth flotation.

Rock containing lower grade sulphide mineralization or oxide mineralization is also mined but is not immediately processed. The lower grade sulphide material is stockpiled for later processing in the concentrator. In addition, a portion of the low grade sulphide material and all of the oxide material can be leached with a highly diluted sulphuric acid, which is naturally assisted by bacterial action, and the resultant copper sulphate solution can be processed to cathode copper in the Gibraltar Mine’s SX/EW plant.

The strip ratio over the remaining 22 year operating period of the reserve will average 1.9. Strip ratio refers to the ratio of the amount of overburden (or waste material) required to be mined in order to extract a unit of ore. For example, a 3:1 stripping ratio means that mining one tonne of ore will require mining three tonnes of waste rock. While the annual strip ratio generally decreases with time, the strip ratio will vary and be managed over the course of the mine life based on exchange rates, commodity prices, and grade distribution during annual and mid-range mine planning process to optimize the economic performance of the operation.

Processing and Recovery Operations

The processing facilities at the Gibraltar Mine consist of two separate bulk sulphide concentrators, a dedicated molybdenum flotation plant, and a series of leach piles which feed a solvent extraction and electrowinning (“SX/EW”) facility.

Run of mine ore is fed to the two sulphide concentrators in parallel at a combined design rate of approximately 85,000 tonne per day. These two bulk concentrators, while differing in size, follow the same process path. Ore is fed to primary crushing with the product reporting to a closed circuit SAG/Ball comminution stage. Ground ore is processed through a rougher flotation stage. Tailings from the rougher flotation stage are pumped to a storage facility, while the concentrate is reground and processed through two further cleaner flotation stages. Final bulk concentrate contains both copper and molybdenum values.

The bulk concentrate from both facilities is combined and processed through a single molybdenum flotation plant. The bulk concentrate is floated in a rougher stage which depresses the copper values and selectively recovers molybdenum. The underflow from this plant is the site’s final copper concentrate. This copper concentrate is dewatered and shipped in bulk to market. The rougher concentrate is reground and processed through two further cleaner flotation stages. Molybdenum final concentrate from this plant is dewatered and bagged, and subsequently shipped to market. The molybdenum flotation plant was restarted in September 2016 after being idled in July 2015 during a decline in molybdenum prices.

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Oxide ore from the mine is delivered to oxide leach dumps. The SX/EW plant is designed to extract copper from the pregnant leach solutions (“PLS”) collected from the site’s leach dumps. Acidic solution is passed through the leach pile and extracts copper in the form of copper ions in this PLS. This copper laden solution is delivered to the SX/EW plant via collection ditches, ponds and pumping where required. The process takes PLS and selectively extracts the copper ions in solvent extraction mixer-settlers. The copper is transferred from this acid solution to an organic phase and finally to a clean electrolyte. The electrolyte is filtered and heated before being passed through the electrowinning cells where the copper is plated out on stainless steel cathodes. The resultant high quality cathode copper is bundled and sold. The barren solution leaving the plant, raffinate, is pumped back to leach additional copper from the leach piles.

Gibraltar’s copper concentrate has an approximately 28% copper content grade and no significant deleterious elements. Gibraltar copper cathode is nominally 99.9%+ pure copper.

Infrastructure, Permitting and Compliance Activities

The Canadian National Railway (“CN”) has rail service to facilitate the shipping of copper concentrates to Vancouver Wharves, owned and operated by Kinder Morgan in North Vancouver, British Columbia. The Company owns and operates the concentrate rail load-out facility on the CN rail line at Macalister, 26 kilometres from the mine site. Electricity is obtained from BC Hydro. Natural gas is provided by Fortis BC. The communities of Williams Lake and Quesnel are sufficiently close to the site to supply goods, services, and personnel to the Gibraltar Mine. The Gibraltar Mine had over 650 active personnel at the end of December 2017. Make-up fresh water for the mine site is obtained from a set of wells on the Gibraltar Mine property. Process facilities operate using reclaimed water from the existing tailings storage facility

Water currently stored in the Gibraltar Pit will be transferred to the completed Granite pit starting in early 2025. This will require the construction of a bulk pit dewatering system.

Relocation of the in-pit crusher feeding concentrator 1 will need to be completed by 2023 prior to starting phase 2 of the Connector Pit.

With the current design parameters and tailings deposition plan, the tailings facility footprint will accommodate tailings storage until at least 2033. It is anticipated that actual tailings deposition performance will enable deposition of all tailings generated in the reserve mine plan within the existing facility footprint.

All material regulatory authorizations and permits are in place to extract the reserves described in this report with the exception of:

• A small extension of lease boundary to include the Extension Pit by 2032.

• Periodic amendments of PE-416 and M-40 for pit wall pushbacks, water discharge, and waste rock and tailings storage.

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Other permit considerations include approvals required for route changes to the access road, hydro transmission line, natural gas line, and water discharge pipeline in order to complete development of the Extension Pit which is scheduled to start in 2032. Approvals will be sought as required.

There have been no material environmental non-compliance incidents since the mine reopened in 2004.

Capital and Operating Costs

As the majority of the mine’s facilities are in place and operating, the only capital requirements are for the relocation of the in-pit crusher/conveyor system and electrical substation, bulk pit dewatering, specific tailings and water discharge related activities, and sustaining capital to maintain the integrity of the mining and processing equipment.

The total anticipated site capital requirements over the next 22 years are summarized in Table 5.

Table 5: Capital Cost Summary

Area	Total Capital         (in millions)
Bulk Pit Dewatering		$15
Tailings and Water Reclaim/Discharge		$4
Crusher Relocation		$36
Pit Substation Relocation		$3
Road and Gas Line Relocation		$5
General Sustaining		$198
Total		$261

Average estimated unit site operating costs over the next 22 years are summarized in Table 6:

Table 6: Site Operating Cost Summary

Operating Category	Life of Mine Cost
Mining cost/ton mined1		$1.81
Milling cost/ton milled		$3.90
General and Administrative cost/ton milled		$0.85
Total operating cost/ton milled		$9.93

  ¹ Mine cost/ton milled is $5.25 at a strip ratio of 1.9:1

The basis for capital and operating cost estimates are documented in the Gibraltar Technical Report.

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Exploration, Development, and Production

Gibraltar is pursuing initiatives to improve recovery, concentrator throughput, and mine cost and productivity. Continued improvement in any or all of these areas will have not only positive economic implications but could increase the size of the reserve pits under current commodity assumptions and/or impact the optimum cut-off grade.

Florence Copper Project

Technical Report

Unless stated otherwise, the information of a technical or scientific nature related to the Florence Copper Project contained in this AIF is summarized or extracted from the technical report entitled “NI 43-101 Technical Report, Florence Copper Project, Florence, Pinal County, Arizona” dated February 28, 2017, amended and restated December 4, 2017 (the “Florence Copper Technical Report”) prepared by Dan Johnson, P.E., who is a Qualified Person as defined by NI 43-101 and filed on www.sedar.com under Taseko’s profile.

Project Description, Location and Access

The Florence Copper Project (or “Florence Copper”) is an advanced-stage oxide copper project controlled 100 percent by Taseko Mines Limited. The project hosts a buried porphyry copper deposit that is amenable to in-situ copper recovery (“ISCR”) and solvent extraction-electrowinning (“SX/EW”) copper production.

Florence Copper is located in the Sonoran Desert of Pinal County in south-central Arizona at latitude 33° 02’ 49” North and longitude 111° 25’ 48” West within the limits of the Town of Florence. The Florence Copper site entrance is 14 miles by paved highway from Interstate 10 and can be accessed from the center of the Town of Florence via 4 miles of highway (AZ-79 and Hunt Highway). The Copper Basin Railway, a federally regulated shortline railroad, is located 100 feet north of Hunt Highway adjacent to the project site and provides rail access between the town of Winkelman and the Union Pacific Railroad at the Magma loading station near Interstate 10.

The Florence Copper property is 1,342 acres and consists of two contiguous parcels of land. Florence Copper owns surface and subsurface rites to 1,182 acres of patented land held in fee simple that includes the majority of the project area. The patented land is subject to annual property taxes and falls within the jurisdiction of the Town of Florence for zoning and land use. Florence Copper also holds Arizona State Mineral Lease 11-26500 that includes approximately 160 acres of surface and subsurface mineral rights on Arizona State Trust Lands, which is not subject to the jurisdiction of the Town of Florence for land use. The Arizona State Mineral Lease term is from December 2013 through to December 2033 and is renewable with Florence Copper having the preferred right to renew thereafter. The mineral lease requires annual rent to be paid to the State of Arizona and includes a royalty requirement on production from the mineral lease land. The Arizona State Mineral Lease is in good standing and the State Trust Lands overlie approximately 42 percent of the targeted copper resource.

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There are three separate royalties applicable to Florence Copper. The land subject to Arizona State Mineral Lease 11-26500 is subject to a royalty payable to the State of Arizona based on a percentage (between 2% and 8% according to a “Copper Index Price”) of the gross value of minerals produced. A 3% “Net Returns” royalty on the entire property is payable to Conoco Inc. and a 2.5% “Net Profits Interest” royalty applicable to the patented land is payable to BHP Billiton.

Although there are some limited environmental liabilities on the project site relating to historical mining and exploration activities conducted by previous owners, these are managed by the company and do not pose a risk to access, title or the ability to perform work on the project.

The patented land portion of the project is currently the subject of a legal non-conforming use litigation which may affect the Company’s ability to access the portion of the deposit on the patented land. Further legal details are included in the section of this AIF entitled “Legal and Permitting”.

History

The project has had four previous owners whose primary business is exploration and mining development including Continental Oil Company (“Conoco”), Magma Copper Company (“Magma”), BHP Copper Inc. (“BHP”) and Curis Resources Ltd. (“Curis”). BHP conveyed the land constituting the Florence Copper Project to Florence Copper Inc. on May 2000. In the years between 2002 and 2009 the ownership of the private property passed through a number of companies including Roadrunner Resorts LLC, WHM Merrill Ranch Investments LLC, The Peoples Bank, and Merrill Ranch Properties LLC. Ownership of Arizona State Mineral Lease 11-26500 remained with Florence Copper Inc. which was acquired by Felix-Hunt Highway LLC in 2008. Curis purchased the surface rights and all of the mineral rights to the 1,182 acre private land component of the Florence Copper Project in December 2009. In February 2010, Curis obtained assignment of Arizona State Mineral Lease 11-26500 completing the land holdings that form the Florence Copper site. Curis was acquired by Taseko in November 2014.

Conoco discovered the Florence Copper deposit in 1970 while executing an exploratory drilling program southwest of Poston Butte. From 1970 to 1977 Conoco completed approximately six hundred and twenty thousand feet of exploration drilling in 612 drill holes. In 1974, Conoco mined approximately fifty thousand tons of mineralized material from a single-level, underground mine designed to collect sample for metallurgical and geological testing. Metallurgical testing of the recovered material was performed using a small plant built on the property. The mine shafts are now capped at the ground surface and the mine is flooded.

Magma acquired the property from Conoco in July 1992 and initiated a Pre-Feasibility Study to verify the Conoco work and to determine the most effective technology for extracting copper from the deposit. The results from copper resource modeling, metallurgical testing, material property testing, and financial analysis supported the conclusion that the preferred method for development of the property was ISCR and SX/EW to produce cathode copper. Magma also

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completed approximately 150,000 feet of exploration drilling in 172 drill holes over the period from 1994 to 1996.

In January 1996, Broken Hill Proprietary Company Limited of Australia acquired Magma and created BHP. In 1998, BHP conducted a 90-day field optimization ISCR test to demonstrate hydraulic control, gather copper recovery and other technical data for a feasibility study. The outcome of the study confirmed to regulatory agencies that production wells could be efficiently installed into the mineralized zone, hydraulic control of the injected and process solutions could be maintained and documented, and that the ISCR method was a viable method for copper extraction at Florence Copper. BHP also completed approximately seventeen thousand feet of exploration drilling in 21 drill holes in 1997.

After completing the acquisition of Florence Copper in February 2010, Curis conducted approximately eight thousand feet of drilling in 6 drill holes to verify previous results, provide metallurgical samples, and information for further project development. Curis performed detailed data verification and generated a new resource model for the project as well as undertaking a metallurgical program focused on simulating in-situ conditions by using whole core box leach tests.

Geological Setting, Mineralization and Deposit Types

The Florence Copper Project hosts a porphyry copper deposit consisting of a large core of sulfide copper mineralization underlying a zone of oxide copper mineralization. The deposit formed when numerous dike swarms of Laramide granodiorite porphyry intruded Precambrian quartz monzonite near Poston Butte. Hydrothermal solutions associated with the intrusion altered the host rock depositing copper and iron sulfide minerals in the strongly faulted and fractured rocks.

Mid-Tertiary Basin and Range extensional faults subsequently elevated and isolated much of the Florence Copper deposit as a horst block and this block as well as the downthrown fault blocks were exposed to weathering and erosion. The centre of the deposit was eventually eroded to a gently undulating surface and the deposit was buried due to regional erosion processes to a depth of approximately 400 feet. During this period of erosion and deposition, a clay layer was deposited approximately 75 feet above the bedrock surface that impedes the mixing of groundwater between the near surface aquifer and the deeper aquifer hosting the mineralized zone.

Mineralization in the highly-fractured oxide zone consists primarily of chrysocolla with lesser “copper wad,” tenorite, cuprite, native copper, and trace azurite and brochantite. The majority of the copper occurs as chrysocolla in veins and fracture fillings, while the remainder occurs as copper-bearing clays in fracture fillings and former plagioclase sites. The average thickness of the oxidized zone is approximately 400 feet.

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The main sulfide minerals in the deposit are chalcopyrite, pyrite and molybdenite with minor chalcocite and covellite. The supergene chalcocite blanket is very thin and irregular and in most instances the transition from the oxide zone to the sulfide zone is quite abrupt.

Exploration

Substantial exploration work has been undertaken on the Florence Copper site by previous owners including drilling (exploration, assessment, condemnation, geotechnical and environmental), underground mine development, geophysical surveys and mineralogy studies.

Over the period since Taseko acquired the Florence Copper Project, the Company has not conducted any exploration work on the property, its activities concentrating on permitting, metallurgical testing, and engineering.

Drilling

Drilling on the Florence Copper site has been undertaken by means of core drilling, RC rotary drilling and conventional rotary drilling. Conoco developed a detailed geologic core logging protocol in the early to mid-1970s and subsequent geologists have continued to use this method, with slight modifications, to maintain continuity of the geologic data produced.

Since 2009, work on the property has been focused on the site’s potential copper production through ISCR which has included the drilling of 6 holes to obtain samples for metallurgical testing and engineering studies to support planning for project development.

Drilling performed on the property is summarized in Table 7 below.

Table 7: Drilling by Company

Company	# of Drill     Holes		Core Length     (metres)
Curis Resources (2011)		6		7,752
BHP Copper (1997)		21		16,638
Magma Copper Company (1994-1996)		172		146,891
Conoco (1970-1977)		612		620,483
Other		6		3,716
Total		817		795,480

Sampling, Analysis and Data Verification

Sampling protocols were developed by previous owners to ensure consistency and mitigate bias. Sampling consisted of core samples and cuttings from drilling, as well as bulk samples obtained from the underground workings. Core samples as well as conventional rotary and reverse circulation drill cuttings were all assayed, although assays for conventional rotary

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cuttings are considered unreliable and have not been used in the project data set. Core samples provide the most representative, unbiased samples of the mineralized materials encountered in the borehole.

Assays of drill samples were conducted by various laboratories under the supervision of Arizona-registered assayers and laboratory managers. The “San Manuel Method” was consistently used by Magma, BHP and outside laboratories contracted for the analysis of percent acid-soluble copper content in the Florence drill and metallurgical test samples.

Data verification has been performed by each company conducting exploration and development at the site and the information and data generated by all prior owners have been reviewed and verified to ensure that the data is of good quality and is suitable for use in mineral reserve estimates. Details of sample preparation, assay laboratories, security, and data verification used in the drill hole sampling and analytical programs is documented in the Florence Technical Report.

Mineral Processing and Metallurgical Testing

The Florence Copper property has a long history of metallurgical testing which establishes the amenability of the site oxide copper mineralization to leaching. Historic test work has included laboratory scale column testing and vat leaching as well as pilot scale vat and agitation leaching. These tests have been conducted on material sourced from drill core as well as a bulk sample from the test underground mining.

Recent metallurgical test work has focused on test methods specific to simulating ISCR performance. This program began in 2011 with box leach tests where whole drill core was leached at near atmospheric pressure to simulate leaching of undisturbed ore. In 2013 development of a pressurized test apparatus led to tests on whole drill core to simulate the hydrostatic pressure in the ore body during leaching and rinsing. This pressurized test apparatus has been refined to more accurately simulate ISCR conditions as the test work has proceeded and a test linking seven pressurized cells in series was completed in 2016. This series leach test passed solutions through approximately 15 feet of whole core with a solution transit time of about 13 days, representing approximately the mid-point of scale-up between a single pressurized test with a solution transit time of less than two days and the full scale well field with an estimated 30 days transit time. The development of the ISCR leach test methodologies culminating in the series leach test has allowed the laboratory to produce mature leach solutions with compositions that closely correspond to those predicted for the full scale operation. All of the ISCR leach testing was conducted in closed circuit and used solvent extraction to recover the leached copper into a proxy electrolyte solution.

The leaching model for ISCR at Florence is based on data from the box leach tests, individual pressurized tests and the series testing. Laboratory data used for modelling is subjected to a validation process based on established industry practice in the copper leaching field. The leach model is then combined with a model of sweep efficiency, which adjusts for the amount of mineralized material that would be contacted by solutions over time in the ISCR well field, and a recovery factor to account for the proportion of copper leached which is plated as cathode

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copper. Recovery to cathode copper is predicted to be 70% over a four year leach cycle for Florence Copper.

Mineral Resource and Mineral Reserve Estimates

The Florence Copper mineral reserves, as defined by the Florence Copper Technical Report, are based on ISCR from the oxide zone material combined with SX/EW to produce cathode copper. The reserves utilize a copper price of US$2.50 per pound and the reserve estimate is presented in Table 8 below.

Table 8: Reserve Estimate at 0.05% TCu Cut-off

	Tons (in millions)	Grade	Contained Cu     (in millions lbs)
Probable	345	0.36	2,473
Note: Contained metal values do not account for metallurgical recoveries. The tonnage factor is 12.5 ft3/ton.

The Florence Copper mineral resource is summarized in the Table 9 and includes the mineral reserves included in Table 8 above. The mineral resource utilizes a copper price of US$2.50 per pound and the mineral resource estimate includes only oxide mineralization in bedrock as sulfide mineralization is considered not recoverable by ISCR methods and is consequently not included in either the mineral resource or reserve estimates.

Table 9: Florence Project Mineral Resources

All Oxide in Bedrock (0.05 %TCu cutoff)
Class	Tons (in millions)	Grade	Cu (in millions lbs)
Measured	296	0.35	2,094
Indicated	134	0.28	745
M+I	429	0.33	2,839
Inferred	63	0.24	295
Note: All oxide includes the entire copper oxide zone and iron-oxide leached cap zone including the top 40-foot of bedrock (bedrock exclusion zone). Contained metal values do not account for metallurgical recoveries. The tonnage factor is 12.5 ft3/ton.

Cautionary Note to Investors concerning estimates of Measured and Indicated Resources

The following section uses the terms “measured” and “indicated resources”. We advise investors that while those terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all mineral deposits in these categories that are not already classified as “reserves” will ever be converted into reserves.

Mining Operations

The mining method proposed for Florence Copper is ISCR which is an extraction method used for selected mineral deposit conditions as an alternative to open pit or underground mine

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methods. The Florence Copper deposit is amenable to the ISCR method due to the high degree of natural fracturing in the oxide zone, connectivity of the fractures, acid soluble copper mineralization that occurs on the faces of the fractures, and host rocks as well as deposit hydrologic conditions which are favorable for leaching operations.

The ISCR process involves drilling wells into the mineralized material and circulating a dilute low pH lixiviant solution (consisting of 99% water) through the ore between injection and recovery wells. The lixiviant solution dissolves the copper minerals and the resulting copper rich solution is processed in a conventional SX/EW plant where the copper is removed from the solution and plated as cathode copper.

The ISCR method is highly environmentally efficient, does not require the large scale movement of waste rock or ore and will have minimal impact on the site topography. Using ISCR will result in the project consuming less energy, less water and producing less carbon dioxide emissions and waste per pound of copper produced than a conventional mining operation. The project well field design includes a surrounding network of perimeter wells and monitoring wells to ensure that the process solutions remain in the mineralized zone and, when leaching in an area is completed, the process solutions will be rinsed from the block to restore the ground water quality.

Processing and Recovery Operations

Copper recovery at Florence Copper will utilize conventional SX/EW technology to produce cathode copper from the copper-bearing leach solutions pumped from the ISCR well field. The planned commercial SX/EW plant is designed to handle a flow of 11,000 gpm with a PLS grade of 2 grams per litre.

The planned processing plant and associated infrastructure will be located on Florence Copper private land to the east of the State Land parcel. The process fluids are piped to and from the process plant in lined trenches.

The process consists of the following elements:

• ISCR well field;

• Lined PLS and raffinate ponds;

• SX Plant with four mixer settlers;

• Tank farm for handling process liquids;

• EW Tankhouse;

• Ancillary warehouse and maintenance facilities;

• Water treatment plant and solution ponds; and

• Existing Administration Office complex.

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Infrastructure, Permitting and Compliance Activities

The Florence Copper area has excellent local infrastructure and vendor resources to support exploration, development, and mining. Service companies for the metals/non-metals, coal, oil and gas industries are located in Phoenix and Tucson as well as, at a greater distance, in Albuquerque, New Mexico and Denver, Colorado. Skilled manpower resources are readily available locally due to the area’s long history of copper exploration and mining.

The project site has an administration building, warehouse building, equipment laydown yard and core storage facility. The project site is serviced from existing water wells for its’ potable water needs as well as for future process requirements. The site is also presently serviced with electrical power, trash pick-up, a septic system for sanitary wastes and full communication services including landline telephone, cellular telephone and internet services.

Power for commercial development of the project is available from an Arizona Public Service high-voltage transmission line at the northwest corner of the property. Natural gas is available in the area from Southwest Gas approximately one mile east of the site.

Development of the site is planned to occur in two phases. The first phase is construction and operation of the Production Test Facility (“PTF”), which will demonstrate the application of ISCR to the Florence Copper Project. The second phase is the construction and operation of the commercial ISCR facility. The various permits required to authorize the PTF have been issued by the regulators. The status of permitting activities is provided below.

The Temporary Aquifer Protection Permit (“TAPP”) for the PTF was issued in August 2016 by the Arizona Department of Environmental Quality (“ADEQ”) and was subject to an appeal. The Water Quality Appeals Board conducted a hearing on the issues under appeal and dismissed the appeal, upholding the permit. The permit is in force, but is the subject of a complaint for judicial review in the Arizona Superior Court.

In February 2016, the United States Environmental Protection Agency (“EPA”) issued the final Memorandum of Agreement in accordance to the Section 106 National Historic Preservation Act for the archeological work associated with the construction of the PTF. In December 2016, the Company received the final Underground Injection Control (“UIC”) Permit for the PTF from the EPA. The permit was subject to petitions for review to the Environmental Appeals Board (“EAB”) and the EAB upheld the permit in September 2017. The permit is in force, but the EAB’s ruling is the subject of an appeal to the Ninth Circuit of the U.S. Court of Appeals.

Additional details are available in the “Legal and Permitting” section.

The Company has all of the permits required for construction and operation of the PTF and construction activities are underway.

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Capital and Operating Costs

The estimated pre-production capital cost for the Florence Copper commercial production facility is US$204 million. A summary of the major components of the capital cost estimate is presented in Table 10.

Table 10: Summary of Pre-Production Capital Cost Estimate

Item	Capital Cost     (millions $US)
Pre-Production ISCR Well Field	$42
SX/EW Plant	$49
Utilities, Infrastructure and Ancillaries	$14
Indirect Costs	$61
Owner’s Costs	$21
Total Construction Capital Costs	$188
Pre-Production Operating Costs	$16
Total Pre-Production and Capital Costs	$204

Sustaining capital expenditures during the production period were estimated to be US$713 million. This capital will be expended over a 22-year period and consists of US$624 million for well field development and US$89 million for a water treatment plant and construction of process water ponds.

Details of the basis for capital cost estimates can be found in the Florence Copper Technical Report.

The estimated average operating costs for Florence Copper over the life of mine is US$0.90 per pound of copper and the estimated total production cost is US$1.10 per pound of copper produced inclusive of royalties. Details of the estimated operating costs are presented in Table 11.

Table 11: Summary of Operating Cost Estimate

Item	Operating Cost     ($US per lb copper)
ISCR Well Field	$0.33

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SX/EW Plant	$0.24
Water Treatment	$0.07
General and Administration	$0.19
Reclamation	$0.04
Off Property Costs	$0.02
Total Operational Costs	$0.90
Royalties	$0.21
Total Production Costs	$1.10

The details of the basis for the project operating cost estimate can be found in the Florence Copper Technical Report.

The main assumptions and inputs to the base case economic analysis of the Florence Copper Project are:

• Total pre-production capital costs of US$204 million;

• Life of project sustaining capital costs of US$713 million;

• Copper recovery of 70%;

• Total production costs of US$1.10 per pound of copper; and

• Long term copper price of US$3.00 per pound.

The following after-tax economic indicators are derived from the base case life of mine cash flow assuming the tax rates in effect at the effective date of the Florence Technical Report:

• Project after-tax net present value of $680 million** at a 7.5% discount rate;

• Internal rate of return of 37%; and

• Payback period of 2.5 years.

** The Company expects that the reduced U.S. corporate income tax rates, announced in December 2017, will have a significant positive impact on the project’s post-tax net present value.

Exploration, Development and Production

Development of the site is planned to occur in two phases. The first phase is construction and operation of the PTF which will demonstrate the application of ISCR to the Florence Copper Project. The second phase is the construction and operation of the commercial ISCR facility with a production capacity of 85 million pounds of cathode copper per year and an expected average annual production of 81 million pounds of copper over 21 years.

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The Company has obtained the necessary permits to construct and operate the PTF and is currently in the process of constructing the PTF. The PTF is expected to be operational in the latter half of 2018.

Legal and Permitting

On September 28, 2012, the ADEQ issued Florence Copper a TAPP for the development of a PTF, which involves the construction, operation and closure of a 24-well ISCR operation on the State Land portion of the Company’s project site. Following the completion of the required public comment and response period, on July 3, 2013 ADEQ issued to Florence Copper an appealable TAPP. On August 2, 2013 a single appeal to the Water Quality Appeals Board (“WQAB”) was filed by the Town of Florence and others. The WQAB referred the matter to the Office of Administrative Hearings to conduct an administrative hearing, which took place from March 18, 2014 through May 7, 2014. The Administrative Law Judge (“ALJ”) issued a recommendation to the WQAB on September 29, 2014. On November 14, 2014, the WQAB issued its Final Order, which adopted most of the ALJ’s recommendations and remanded the TAPP to ADEQ to amend pursuant to the agency’s Significant Amendment process. On April 1, 2015, Florence Copper submitted to ADEQ an application to amend its TAPP in accordance with the WQAB’s ruling. ADEQ issued a final Significant Amendment to the TAPP on August 3, 2016, following the completion of the required public comment and response period. The Town of Florence and two nearby property developers filed an appeal of the Significant Amendment with the WQAB on September 1, 2016. The WQAB conducted a hearing in July 2017 on four remaining issues under appeal and dismissed the appeal, upholding the permit. In August 2017, the Town of Florence then filed a complaint for judicial review of the administrative decision on the permit, which is now before the Arizona Superior Court.

On March 4, 2013, the Florence Town Council authorized the town staff to initiate an eminent domain action against Florence Copper’s patented mining land held in fee simple. The action did not include the 159.5 acre State Trust Land parcel on which Florence Copper can operate for nine years, including the Phase 1 PTF and the initial years of commercial operations. On October 14, 2013, the Town of Florence filed suit in Pinal County Superior Court seeking a declaration that (a) Florence Copper does not have vested contractual rights or common law rights to conduct in-situ copper recovery mining on its private property, and (b) if such rights exist, the Town seeks to expropriate a legal non-conforming use within its Town boundaries through eminent domain. Florence Copper filed a motion to change the case venue and a motion to dismiss the eminent domain portion of the complaint. The motion was granted and the case was moved to the Complex Litigation Bench in Maricopa County Superior Court. On July 2, 2015, Florence Copper’s motion to dismiss the eminent domain claim was also granted. The remaining issue now pending in Maricopa County Superior Court is whether a legal non-conforming use (“LNCU”) right to mine continues to exist on Florence Copper’s privately owned land. The issue is scheduled to proceed to trial in Arizona Superior Court in August 2018.

On December 20, 2016, the EPA issued the final UIC Permit to Florence Copper. This permit regulates the operation of Class III underground injection wells at the PTF. Three petitions for review were filed with the EAB of the EPA. These petitions were filed by the Town of Florence

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(“TOF”) and Southwest Value Partners (“SWVP”), the Gila River Indian Community, and John Anderson, a Town Councilman representing himself. The Gila River Indian Community withdrew its petition and Councilman Anderson’s petition was dismissed by the EAB. On September 22, 2017 the EAB dismissed the TOF/SWVP petition and upheld the UIC Permit issued to Florence Copper. The TOF/SWVP appealed the EAB ruling to the Ninth Circuit of the U.S. Court of Appeals. Briefing by the parties will begin in the summer of 2018.

Aley Project

Current Technical Report

Unless stated otherwise, information of a technical or scientific nature related to the Aley Project contained in this AIF (including documents incorporated by reference herein) is summarized or extracted from a technical report entitled “Technical Report on Mineral Reserves at the Aley Project, British Columbia, Canada” dated October 30, 2014, amended and restated December 4, 2017 (the “Aley Technical Report”) prepared by Scott Jones, P.Eng, Keith Merriam, P.Eng, Greg Yelland, P.Eng, Robert Rotzinger, P.Eng., and Ronald G. Simpson, P.Geo., each of whom is a Qualified Person as defined by NI 43-101 and filed on Taseko’s profile on SEDAR at www.sedar.com.

Project Description, Location, and Access

Niobium is a metal used in high strength low alloy steels which are required to manufacture automobiles, bridges, pipes, jet turbines and other high technology applications. Ninety percent of niobium enters the market as ferroniobium (FeNb); 15% of all steel produced worldwide contains FeNb. Substantial growth in demand for ferroniobium took place in the second half of the 2000s, resulting largely from the overall growth in the global steel market, with a peak level in 2008. In recent years demand for ferroniobium has been volatile but on average consistent with 2008 levels. Industry experts indicate growth is expected at 2.5% per annum over the next 10 years (Roskill, 2017, Thirteenth Edition, Niobium: Global Industry, Markets and Outlook to 2026). Currently, 90% of the world’s niobium is supplied by three mines: CBMM (Companhia Brasileira de Metalurgia e Mineração) and CMOC (China Molybdenum Co., Ltd.) mines in Brazil, and the Niobec mine operated by Magris Resources in Quebec, Canada.

The property is located in the Omineca Mining Division in British Columbia, Canada, centred at latitude 56°27’N and longitude 123°13’W, approximately 140 kms north northwest of the Municipality of Mackenzie. Logging roads from Mackenzie provide access to the Ospika Logging Camp on the east side of Williston Lake. The property is located about 30 kms from the Ospika Camp and is currently accessed via helicopter.

The Aley property consists of one mineral lease valid until at least December 2045 as long as annual renewal fees are paid, and one hundred and eleven mineral claims covering the mineral rights for approximately 470 square kms. Six claims are in good standing until December 2024 while the balance are in good standing until at least October 2025. It is intended that the lease

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and claims will be renewed prior to their renewal fees being due (in the case of the lease) and prior to their expiry in the case of the claims.

There are no title encumbrances, surface rights issues or legal access obligations that must be met in order for Aley Corporation to retain this property. The Aley Property is not subject to any royalty terms, back-in rights, payments or any other agreements or encumbrances.

As this is a green-field project, there are no existing environmental liabilities on the property and there has been no development at the site. When additional site work is required, permit applications will be made. The Company does not hold any surface rights.

History

Cominco Ltd. (“Cominco”) acquired the property in 1980 after following up on base metals soil anomalies in the northern part of the property. Samples collected in the Aley area showed evidence of carbonatite including niobium mineralization. Cominco staked a series of claims from 1982 through 1986.

Cominco field work from 1983 through 1986 included access trail construction, ground magnetic and scintillometer surveys, geologic mapping, soil and rock chip sampling and drilling of 19 core holes (3,046 metres). Preliminary metallurgical work followed in 1983-85 using material from a 5 ton bulk sample.

Following the acquisition of control of the mineral claims by Aley Corporation in 2004, exploration efforts concentrated on trench sampling for metallurgical material and the confirmation of previous geology and drill hole collar locations.

In 2006, metallurgical test work was conducted by on surface samples blasted from the Saddle and Central Zone trenches for metallurgical work.

In June 2007, Taseko acquired 100% of the Aley Niobium Project from Aley Corporation for total cash consideration of $1.5 million and 894,730 common shares then valued at $2.9 million. Taseko purchased the residual net smelter royalty for total cash consideration of $0.3 million and the issuance of units having a value at the time of $0.8 million (consisting of 240,000 common shares and 120,000 warrants).

From 2007 to 2011, Taseko completed three programs of helicopter supported exploration drilling comprising a total of 22,922 metres in 104 holes.

Drilling results through 2010 established an inferred mineral resource of 159 million tonnes grading 0.43% Nb₂O₅ using a cut-off grade of 0.20% Nb₂O₅.

Drilling results through 2011 established a measured and indicated resource of 286 million tonnes grading 0.37% Nb₂O₅ using a cut-off grade of 0.20% Nb₂O₅.

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From 2011 to 2014, Taseko focused on metallurgical testing of the ore and developing a viable process for producing FeNb to support the pre-feasibility level design work completed in 2014. Environmental baseline data collection was also carried out during this period.

In 2014, the Company filed an NI 43-101 technical report for the Aley Niobium Project. Further engineering and metallurgical testwork has been completed since then which is expected to result in improved project economics. Environmental monitoring on the project continues and a number of product marketing initiatives are underway.

Geological Setting, Mineralization, and Deposit Type

The Aley region lies within the Western Foreland belt of the Rocky Mountains. It is characterized by Early to Middle Paleozoic deep water carbonates and shales. The Aley Creek area lies near the eastern limit of Paleozoic volcanism and coarse clastic sedimentation in the Foreland Belt.

The Aley Carbonatite complex intrudes Cambrian to Ordovician sedimentary rocks of the Kechika (limestone), Skoki (dolomite to volcaniclastics) and Road River Group formations (clastic sedimentary rocks). The intrusion is ovoid in plan with a diameter of approximately 2 kms and surrounded by a fenite aureole up to 500 metres. The complex is predominantly composed of dolomite carbonatite (CD) with minor calcite carbonatite (CC). Texturally, relationships suggest CD to be metasomatic in origin while CC is interpreted to be primary.

Niobium (Nb) bearing minerals at Aley are pyrochlore, fersmite and columbite, the latter two being alteration products of pyrochlore. Alteration at Aley has followed a general sequence: pyrochlore has altered to fersmite then fersmite has altered to columbite.

Exploration

The only non-drilling exploration work conducted by Taseko since acquiring the property is geologic mapping undertaken in 2009 and 2010 and geochemical mineralogical and petrographic characterization in 2010. This information was used to define targets in the 2010 and 2011 drill programs.

Drilling

In 1985 and 1986 Cominco drilled twenty diamond drill holes totaling 3,062 metres in the Central and Saddle Zones.

Taseko completed an initial exploration program on the Aley deposit in 2007 that included 11 diamond drill holes to check the results of the 1985-86 drilling program and to plan for subsequent exploration work. No work was done on the Aley project in 2008 or 2009.

Taseko completed an exploration program in the summer of 2010, comprising geological mapping and 4,460 metres of diamond drilling in 23 holes in the Central Zone. These holes intersected excellent grade niobium mineralization across an area measuring over 900 metres east-west and 350 metres north-south. Mineralized drill intercepts ranged up to over 200 metres

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in length. Niobium mineralization intersected was highly continuous and close to surface. The extensive body of niobium mineralization indicated by the 2010 drilling was open to expansion in at least three directions and to depth.

In 2011, 17,094 metres of drilling were completed in 70 holes. The objective of the drill program was the delineation of the continuity and extent of Nb mineralization in the Central Zone with infill drilling. The program also sought to establish a better understanding of the deposit geometry and the continuity and extent of Nb mineralization.

Condemnation and geotechnical drilling totalling 2,493 metres was completed in 2012. In addition 10 kms of exploration access road right of way was cleared and 5 kms of road was established.

Sampling, Analysis, and Data Verification

The sample database for the Aley Project contains results from 104 core holes drilled between 1985 and the end of 2011. The Central Zone has been tested by 98 holes all of which are entirely within the carbonatite complex. All of the assays on drill samples have been performed by reputable, independent third party analytical laboratories.

Taseko implemented a QAQC program consistent with common industry practice after taking over the project in 2007. This program was in addition to the QAQC procedures used internally by the analytical laboratories. The results of this program indicate that analytical results are of high quality and suitable for use in detailed modeling and resource evaluation studies.

Details of sample preparation, assay laboratories, security, and data verification used in the drill hole sampling and analytical programs is documented in the Aley Technical Report.

Mineral Processing and Metallurgical Testing

The metallurgical testing that was used as the basis for design was conducted at SGS Laboratory in Vancouver, and at XPS in Sudbury from 2011 to 2014. The test program included: mineralogical work, liberation analysis, comminution test work, gravity work, magnetic separation, batch and locked cycle flotation programs and leach test work. The niobium concentrate produced from the work at SGS was sent to XPS for conversion test work.

The final flow sheet developed from the test work includes comminution, magnetic separation, flotation, leaching and final conversion.

The overall results from the series of tests conducted at the labs show that a process plant recovery of 71% was achieved in repeatable and stable locked cycle tests and a leach recovery average of 95% was achieved over all leach tests. The overall ferroniobium grade achieved was 63% Nb at a recovery to ferroniobium alloy of 65%.

Details of metallurgical test work are documented in the Aley Technical Report.

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Mineral Resource and Mineral Reserve Estimates

The Company and its consultants carried out progressive engineering, metallurgical and environmental studies over the period 2011 to 2014, including completion of a pre-feasibility level study of the project in 2014.

The resulting mineral reserves using long-term metal prices of US$45.00/kg for niobium and an exchange rate of US$0.90/CDN$1.00 are shown in Table 12.

Table 12:  Aley Mineral Reserves at 0.30% Nb₂O₅ Cut-off

Category	Tonnes (millions)	Nb2O5 (%)
Proven Probable	44     40	0.52     0.48
Total	84	0.50

The mineral resource using long-term metal prices of US$50.00/kg for niobium and an exchange rate of US$0.80/CDN$1.00 for the Aley Deposit is summarized in Table 13 at a cut-off grade of 0.20% Nb₂O₅.

Table 13:  Aley Mineral Resources at 0.20% Nb₂O₅ Cut-off

Category	Tonnes (millions)	Nb2O5 (%)
Measured	113	0.41
Indicated	173	0.35
Total Measured and Indicated	286	0.37
Inferred	144	0.32

The mineral resources shown in Table 13 include the mineral reserves shown in Table 12.

Cautionary Note to Investors concerning estimates of Measured and Indicated Resources

This section uses the terms “measured” and “indicated resources”. We advise investors that while those terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all mineral deposits in these categories that are not already classified as “reserves” will ever be converted into reserves.

The mineral resource and reserves estimates are documented in the technical report titled “Technical Report on Mineral Reserves at the Aley Project, British Columbia, Canada”, dated October 30, 2014, amended and restated December 4, 2017, filed on www.sedar.com.

Mining Operations

The mining method planned is a conventional open pit with equipment sized and fleet requirements determined to meet the required production rate.

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The designed pit is subdivided into 2 phases, the first phase mining down the east ridge, the second phase mining the west and north ridges and down to the bottom of the pit. Using the 2 pit phases, a 24 year production schedule has been developed. For the final 4 years of the mill production under this plan, mining will have been completed from the pit and all mill feed will be from the stockpile.

The mine plan and production schedule were developed for a 10,000 tonnes per day mill feed operation and results in a life of mine strip waste:ore ratio of 0.5 to 1.

Processing and Recovery Operations

The processing plant has been designed with a nominal capacity of 10,000 tonnes per day. The plant consists of a three stage comminution circuit that consists of a SAG mill, a ball mill, and a fine grinding mill with the appropriate size classification circuits. Final comminution product is fed to the concentration plant, details of which are proprietary and confidential. An upgraded concentrate from the concentrator is fed to a leach facility for further processing, while waste streams produced in the concentrator are recombined and pumped to a tailings storage management facility. Leached concentrate residue is then processed through a calciner and proceeds to ferroniobium conversion. Converter waste is stored in a secure containment facility and final product ferroniobium is delivered to market.

Expected life-of-mine overall niobium metallurgical recovery is 63% with annual production averaging approximately 14 million kilograms of FeNb which is equivalent to approximately nine million kilograms of contained niobium over the 24 year mine life.

Infrastructure, Permitting, and Compliance Activities

The ferroniobium will be hauled with highway trucks to a transfer station in Mackenzie for rail or truck transport to various points of sale, but primarily through the Port of Vancouver for shipment to smelters/refineries around the world.

Power is proposed to be supplied via a new 150 km long, 138 kV transmission line from the BC Hydro Morfee substation in the community of Mackenzie. Infrastructure would also include the upgrade of sections of the existing road to the site, an on-site camp, equipment maintenance shop, administration office, concentrator and converter facilities, warehouse, and explosives facilities.

The project would employ up to 325 permanent hourly and staff personnel. In addition, contractor personnel would be employed in areas including catering, and goods and personnel transportation.

On September 19, 2014, the British Columbia Environmental Assessment Office (“EAO”) issued a Section 10 Order under the British Columbia Environmental Assessment Act, initiating the provincial environmental assessment process for the Project.

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On November 24, 2014, the Canadian Environmental Assessment Agency (“CEAA”) determined that a federal environmental assessment was required, issued a Notice of Commencement, and approved British Columbia’s request for Substitution under the Canadian Environmental Assessment Act, 2012. As a result the province will conduct the assessment and Aboriginal consultation on behalf of the Federal government.

On December 31, 2014, British Columbia issued a Section 11 Order under the Environmental Assessment Act describing the scope of the Aley project subject to the environmental assessment, identifying the Aboriginal Groups requiring consultation, and directing Taseko to draft Application Information Requirements (“AIR”) for the environmental assessment application.

Capital and Operating Costs

A summary of the estimated pre-production capital costs estimated for the project is $870 million and is summarized in Table 14.

Table 14: Summary of Capital Costs

Area	Capital Cost     (in millions) (1)
Mining Equipment		$25
Capitalized Pre-Production Costs		$38
Process Plant - Concentrate		$166
Process Plant - FeNb Converter		$97
Sand Storage & Water Reclaim		$50
Ancillary Facilities		$43
On-Site Infrastructure		$62
Off-Site Infrastructure		$86
Subtotal Direct Costs		$569
Indirect Costs		$145
Owner’s Costs		$46
Contingency		$110
Subtotal for Indirect Costs		$301
Total		$870

(1) Totals may not add due to rounding.

Life of Mine sustaining capital costs are estimated at $80 million.

All costs shown are in Q3 2014 Canadian dollars. No allowances have been made for escalation, interest and financing, taxes or working capital in the capital cost estimate.

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Estimated average operating costs are summarized in Table 15.

Table 15: Summary of Site Operating Costs

Operating Category	Operating Cost ($/tonne)
Mining		$4.63
Processing		$44.90
General and administrative		$6.05
Off-site costs		$2.62
Total		$58.20

The basis for capital and operating cost estimates are documented in the Aley Technical Report.

A list of the main assumptions and inputs to the economic analysis of the Aley project are listed below:

• Pre-production capital costs of $870 million;

• Life of Mine sustaining capital costs of $80 million;

• Total operating costs of US$24/kg Nb;

• Long-term Nb price of US$45/kg; and

• Exchange rate of CDN$1.00=US$0.90.

The following pre-tax economic indicators are derived from the base case life of mine cash flow:

• Net present value of $860 million (8% discount rate);

• Internal rate of return on investment of 17%; and

• Payback period of 5.5 years.

The following after-tax economic indicators are derived from the base case life of mine cash flow assuming current federal and provincial tax laws in force:

• Net Present Value of $480 million (8% discount rate); and

• Internal Rate of Return on Investment of 14%.

Exploration, Development, and Production

The Company is currently preparing the draft Application Information Requirements (“AIR”) for the Environmental Assessment. The EAO has established a Working Group, comprising of representatives of CEAA, government agencies, First Nations, and local governments. This group will provide input on aspects of the environmental assessment including the AIR.

Environmental monitoring of surface and groundwater baseline conditions and geochemical characterization of ore, waste rock, and tailings in support of the Environmental Impact Statement are ongoing. Optimization of the project metallurgy, process plant design and project

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development plan are also ongoing and this work is nearing completion. The results of the optimization work will be disclosed as soon as the work is complete.

Prosperity Project

Current Technical Report and Project Status Summary

Unless stated otherwise, information of a technical or scientific nature related to the Prosperity project contained in this AIF is summarized or extracted from a technical report entitled “Technical Report on the 344 Million Tonne Increase in Mineral Reserves at the Prosperity Gold – Copper Project” dated December 17, 2009, (the “Prosperity Technical Report”) prepared by Scott Jones, P. Eng. and filed on Taseko’s profile on SEDAR at www.sedar.com. Mr. Jones is employed by the Company as Vice-President, Engineering and is a Qualified Person as defined by NI 43-101. Readers are cautioned that the Prosperity Technical Report is now some eight years old and accordingly caution needs to be advised when assessing its conclusions in light of current operating and capital costs, appropriate technologies, metals price outlooks, and like matters.

As disclosed in the Company’s Short Form Base Shelf Prospectus dated December 15, 2017, the Company has determined that, in light of the current negative position of the federal Canadian government regarding the Environmental Assessment for the Prosperity Project performed in 2013, and notwithstanding the Company’s position that the negative outcome was the product of a flawed review process which the Company is legally challenging, the Company does not consider the Prosperity Project to be material at this time. While the Company has reached this determination with respect to reference to its current operations, the Company’s assessment of materiality could change and the Prosperity Project may again become material in the event that the Company’s legal challenge is successful. Accordingly, the Company has elected to retain the detailed disclosure set out below as would be required for the Prosperity Project as a material project as contemplated by applicable disclosure rules. The Company will update this information if the Prosperity Project once again becomes material to the Company.

Project Description, Location, and Access

The Prosperity project is located at latitude 51° 28’ N and longitude 123° 37’ W in the Clinton Mining Division, approximately 125 kms southwest of the City of Williams Lake, British Columbia.

Access from Williams Lake is via Highway 20 to Lee’s Corner, then via an all-weather main logging haulage road to the site, a total road distance of 192 kilometres.

The Prosperity property consists of one mineral lease which is valid until at least June 2035 as long as renewal fees, which are due on an annual basis, are paid, and 85 mineral claims covering the mineral rights for approximately 190 square kms. Six claims are in good standing until at least July 2018, while the remainder are in good standing until at least August 2018. It is

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intended that all leases and claims will be renewed prior to their renewal fees being due (in the case of the lease) and prior to their expiry in the case of the claims.

The claims are 100% owned by Taseko and are not subject to any royalties or carried interests.

As this is a green-field project, there are no existing environmental liabilities on the property and there has been no development at the site. When additional site work is required, permit applications will be made and approved by responsible regulatory agencies. The Company does not currently hold any surface rights, these would need to be applied for.

History

The Prosperity deposit was originally discovered by prospectors in the early 1930’s. Phelps Dodge Corporation conducted a small exploration program in the early 1960’s and subsequently allowed the claims to lapse.

In 1969, Taseko acquired the property and drilled 18 holes totalling approximately 2,300 metres immediately to the south of the area previously explored, discovering significant tonnage grading 0.25% to 0.30% copper.

From 1970 to 1974, under option agreements with Nittetsu Mining Company and Quintana Minerals Corporation, approximately 5,000 metres of drilling was completed in 29 holes. Bethlehem Copper Corp. (“Bethlehem”) optioned the project in 1979 and by 1981 had completed approximately 14,000 metres of drilling in 73 holes. Following the corporate merger of Bethlehem and Cominco Ltd. (“Cominco”) Cominco acquired the Bethlehem option agreement on the property. From 1982 to 1989 Cominco work programs included geophysical and soil geochemical surveys, an additional 5,300 metres of drilling in 48 holes, and a limited metallurgical test work program. In 1990, Cominco Ltd. reported a drill–indicated mineral resource of 208 million tonnes at an average grade of 0.23% Cu and 0.41 gpt Au to 360 metres below surface.

After a period of disagreement with Cominco regarding compliance with the option agreement, which included legal proceedings, in 1993 Taseko acquired 100% of the project free of any royalties or third party interests through settlement agreements.

Following drilling in 1991 and 1992, Taseko reported mineralized material (unclassified mineral resource) of 976 million tonnes at an average grade of 0.23% Cu and 0.48 gpt Au.

Comprehensive metallurgical tests were completed in 1993 and a pre-feasibility report was completed in 1994.

Following a significant drill program in the latter half of the 1990’s, in 1998 Taseko reported estimated measured and indicated mineral resources of 1.0 billion tonnes at 0.41 gpt Au and 0.24% Cu and an inferred resource of 0.2 billion tonnes grading 0.25 gpt Au and 0.21% Cu at a 0.14% copper cut-off.

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Work on the project was deferred from 2000 to 2005 first due to low metal prices and then later as the Company turned its attention to re-starting the Gibraltar Mine. In November 2005, work was reactivated on the project. A pre-feasibility level study was completed in the first quarter of fiscal 2007 followed by a full feasibility study in the fall of that year. In 2008 Taseko worked with a number of consultants to investigate value engineering opportunities, energy efficiency, and operating ease in various areas of the concentrator and support infrastructure. The outcome of this work, in combination with a significantly different outlook for copper and gold prices in 2009 resulted in the current reserve.

In late 2009 and 2010, additional metallurgical testing and geotechnical investigations were undertaken in support of detailed engineering.

In 2010, Taseko worked with various consultants to advance project engineering to the detailed phase and to advance various permit applications. Taseko temporarily suspended work on detailed engineering and permitting in November 2010 following the federal cabinet’s decision on the environmental assessment.

In early 2011, Taseko began design revisions to the project to address the concerns identified during the federal review process.

In early 2012, Taseko completed a geotechnical field investigation to support the design and environmental assessment of the relocated tailings facility proposed as part of a New Prosperity Design.

There has been no production from the property and there is no material infrastructure on the project.

Geological Setting, Mineralization, and Deposit Types

The project is located within the western-most portion of the Intermontane Belt at the boundary between the Intermontane and Coast morphologic belts. The surrounding area is underlain by poorly exposed, Late Paleozoic to Cretaceous litho tectonic assemblages which have been intruded by plutons of Mid-Cretaceous to Early Tertiary age. The main Coast Plutonic Complex is 50 kilometres southwest of the New Prosperity project area.

The Yalakom Fault is the major fault in the region and lies to the southwest of the deposit on the New Prosperity project. Estimates of Eocene dextral strike-slip offsets for the Yalakom Fault have been postulated variously as ranging from 80 to 190 kms, 125 to 175 kms or 115 kms. It may have imparted some related structural controls that are important to the localization of mineralization at the deposit.

The project hosts a large porphyry gold-copper deposit. The deposit is predominantly hosted in Cretaceous andesitic volcaniclastic and volcanic rocks. In the western portion of the deposit, the host rocks have been intruded by the multi-phase, steeply dipping Fish Creek Stock. The stock is surrounded by an east-west trending, south dipping swarm of subparallel quartz-feldspar porphyritic dykes. The stock and dykes comprise the Late Cretaceous Fish Lake Intrusive

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Complex that is spatially and genetically related to the deposit. Post mineralization porphyritic diorite occurs as narrow dykes that cross-cut all host rocks. The central portion of the deposit is cut by two major faults, striking north-south and dipping steeply to the west.

Pyrite and chalcopyrite are the principal sulphide minerals in the deposit. They are uniformly distributed in disseminations, fracture fillings, veins and veinlets and may be accompanied by bornite and lesser molybdenite and tetrahedrite-tenantite. Native gold occurs as inclusions in and along microfractures with copper-bearing minerals and pyrite.

Exploration

There has been no material non-drilling exploration conducted on the property since the early 1990’s. Exploration programs prior to this time included extensive IP and magnetic geophysical and soil geochemical surveys which contributed to the definition of the mineralization.

Drilling

Until 1991, exploration programs on the property included 176 percussion and diamond drill holes totalling approximately 27,100 metres. This work helped define the project mineralization to a depth of 200 metres, and outlined a gold-copper mineralized zone approximately 850 metres in diameter.

Diamond drilling from 1991 through 1997 totalled approximately 85,000 metres in 267 holes, expanding the deposit to 1400 metres east-west, 600 metres north-south and to 850 metres below surface, increasing the density of drilling in the deposit, and adding to the geotechnical and geochemical characterization of the deposit.

From 1963 to 1997, a total of 155,000 metres had been drilled in 452 holes.

Six core holes totaling 1,762 metres were drilled in 2007 for metallurgical purposes. The purpose of this program was to provide sufficient material representative of the various alteration zones anticipated to be encountered in the first six years of production.

Sampling, Analysis, and Data Verification

Over 65,000 samples have been taken for analysis from drilling since 1969. All of the assays on drill samples have been performed by reputable, independent third party analytical laboratories.

Taseko implemented a quality control quality assurance (“QAQC”) program consistent with common industry practice after taking over the project in 1991. This program was in addition to the QAQC procedures used internally by the analytical laboratories. The results of this program indicate that analytical results are of high quality and suitable for use in detailed modeling and resource evaluation studies.

Details of sample preparation, assay laboratories, security, and data verification used in the drill hole sampling and analytical programs is documented in the Prosperity Technical Report.

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Mineral Processing and Metallurgical Testing

Progressive metallurgical studies over the period 1991 through 1993 included batch and locked cycle flotation tests on composites representing different areas of the deposit to determine achievable copper and gold recoveries and provide detailed concentrate analysis, grind-ability assessments, tailings settling tests, environmental data, and a cursory examination of the removal of deleterious elements from flotation concentrate.

In 1996 a run-in pilot plant was carried out as a precursor to a comprehensive pilot plant; its main objectives to establish basic operating parameters and generate material for initial environmental testing.

In 1997 a pilot plant campaign included batch and locked cycle tests as well as pilot plant runs carried out on composites prepared representing different zones of the deposit. It also included grinding test work, detailed analysis of concentrates, generation of environmental data, tailings settling tests, and concentrate settling and filtration tests.

A test work program was completed in 2008 to investigate the metallurgical performance of Prosperity mineralization at coarser regrinds and alternate regrind flow sheets. This work was conducted on core from the 2007 drilling campaign that represented years 1 through 4 mill feed.

The results support estimated life of mine recoveries of copper and gold recoveries of 87% and 69% respectively using conventional flotation methods.

Estimated average concentrate grades over the mine life are 24% copper, 35 g/t gold and 89 g/t silver. Smelter penalties are anticipated for arsenic, antimony, and mercury.

Additional details with respect to metallurgical test work can be found in the Prosperity Technical Report.

Mineral Resource and Mineral Reserve Estimates

The mineral resources and mineral reserves are as documented in the 2009 Prosperity Technical Report.

The reserve estimate uses long-term metal prices of US$1.65/lb for copper and US$650/oz for gold and a foreign exchange of CDN$1.00=US$0.82.

The proven and probable reserves are tabulated in Table 16 below.

Table 16:  Prosperity Mineral Reserves at CDN$5.50 NSR/t Pit-Rim Cut-off

Category	Tonnes (millions)	Gold (g/t)	Copper (%)	Recoverable Gold Ounces (millions)	Recoverable Copper Pounds (billions)
Proven Probable	481 350	0.46 0.35	0.26 0.18	5.0 2.7	2.4 1.2

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Total 831 0.41 0.23 7.7 3.6

Cautionary Note to Investors concerning estimates of Measured and Indicated Resources

The following section uses the terms “measured” and “indicated resources”. We advise investors that while those terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all mineral deposits in these categories that are not already classified as “reserves” will ever be converted into reserves.

The mineral resources shown in Table 17 include the mineral reserves shown in Table 16. Resource estimates are based on a copper cut-off of 0.14%.

Table 17:  Prosperity Mineral Resources at 0.14% Copper Cut-off

Category	Tonnes (millions)	Gold (g/t)	Copper (%)
Measured	547	0.46	0.27
Indicated	463	0.34	0.21
Total	1,010	0.41	0.24

Mining Operations

The proposed mine plan utilizes a large-scale conventional open pit mining and milling operation. Following a one and a half year pre-strip period, total material mined from the open pit over years 1 to 31 averages 170,000 tonnes per day at a life-of-mine strip ratio of 1.5:1. A declining net smelter return cut-off is applied to the mill feed, which defers lower grade ore for later processing. The stockpiled ore is processed in the final years of the mine plan.

Processing and Recovery Operations

The processing plant has been designed with a nominal capacity of 70,000 tonnes per day. The plant consists of a single 12 metre diameter SAG mill, two 7.9-metre diameter ball mills, followed by processing steps that include bulk rougher flotation, regrinding, cleaner flotation, thickening and filtering to produce a copper-gold concentrate. Expected life-of-mine metallurgical recovery is 87% for copper and 69% for gold, with annual production averaging 110 million pounds copper and 234,000 ounces gold over the 33-year mine life.

The copper-gold concentrate will be hauled with highway trucks to an expanded load-out facility at Gibraltar Mines Ltd.’s existing facility near Macalister for rail transport to various points of sale, but primarily through the Port of Vancouver for shipment to smelters/refineries around the world.

Infrastructure, Permitting and Compliance Activities

Power is proposed to be supplied via a new 124 km long, 230 kV transmission line from Dog Creek on the BC Hydro Grid. The Company does not yet have rights of way or approvals to

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construct facilities to provide electricity to the site. Ample water is available nearby for a mining operation.

The Canadian National railway services Williams Lake and has rolling stock available to move concentrates by rail to points of sale in North America.

Infrastructure would also include the upgrade of sections of the existing road to the site, construction of a short spur to the mine site, an on-site camp, equipment maintenance shop, administration office, concentrator facility, warehouse, and explosives facilities.

The project would employ up to 460 permanent hourly and staff personnel. In addition, approximately 60 contractor personnel would be employed in areas including catering, concentrate haulage, explosives delivery, and busing.

The City of Williams Lake is sufficiently close and is capable of supplying goods, services, and personnel to a mine.

Between 2009 and 2010, the British Columbia Environmental Assessment Office (“EAO”) led a review of the Project in a coordinated manner with the CEAA.

In January 2010, Taseko received the environmental assessment certificate for the Prosperity Project from the Province of B.C.

The Federal process was conducted by a three-person panel, whose findings were in certain respects similar to the conclusions reached in the Provincial Environmental Assessment, although they were not mandated to assess positive economic and social value generated by the project. In July 2010, the panel submitted its final report to the Federal Government.

In November 2010, the Federal Minister of Environment announced that the Prosperity mine project, as proposed, would not be granted federal authorizations to proceed. The Company reviewed and revised its plan and put forth a new design proposal, the New Prosperity project, which included the preservation of Fish Lake by relocating the tailings storage facility and modifying the water management plan. This design addressed the concerns identified during the federal review process, and in February 2011 the Company submitted a project description for the New Prosperity project to the Federal Government.

In June 2011, Taseko submitted an application to the EAO to amend the Environmental Assessment Certificate in accordance with the New Prosperity project description.

On September 20, 2012, the Environmental Impact Statement (EIS) was submitted to the three-member Review Panel (the “Panel”) established for the federal environmental assessment of the project. Following the public hearings conducted in Williams Lake and several First Nation communities in the region in July and August 2013, the Panel prepared their report and submitted it to the Federal Minister of the Environment on October 31, 2013.

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The Panel report found that the proposed project is not likely to cause significant adverse environmental effects in respect of 33 different areas provided effective mitigation was undertaken but found significant adverse environmental effects were likely in relation to three matters: (i) water quality in Fish Lake and Wasp Lake; (ii) fish and fish habitat in Fish Lake, wetlands and riparian ecosystems; and (iii) Tsilhqot’in current use of lands for traditional purposes, cultural heritage and archaeological/historical resources.

On November 29, 2013, the Company filed an application for judicial review in the Federal Court, seeking to set aside certain findings of the Panel report. The Company is asking the court for a declaration that certain findings relating to seepage and water quality be set aside, and that the Panel failed in certain respects to comply with principles of procedural fairness and the rules of natural justice.

On February 26, 2014, the Minister of the Environment announced her conclusion, based on the Panel report, that the New Prosperity Mine project is likely to cause significant adverse environmental effects that cannot be mitigated. In accordance with the requirements of the Canadian Environmental Assessment Act, 2012, she referred the matter to the Governor in Council who decided that those effects are not justified in the circumstances.

On March 26, 2014, the Company filed an application for judicial review in Federal Court, seeking to quash the decisions of the Minister and Governor in Council communicated on February 26, 2014. The Company is also seeking a declaration that certain sections of the Canadian Environmental Assessment Act, 2012, are in whole or in part beyond the powers of the Federal government under the Constitution Act, 1867.

On August 21, 2014, the Company applied to the Federal Court to convert both judicial reviews into a civil action for damages. The motion was denied with the court suggesting that the company’s concerns were best dealt with in the judicial review process.

On January 14, 2015, the British Columbia Minister of Environment granted the Company a five-year extension to the Environmental Assessment Certificate for Prosperity. The original Prosperity Environmental Assessment Certificate from the Province of British Columbia is subject to an ongoing amendment process to reflect the changes made in the New Prosperity mine design.

On February 12, 2016, the Company announced that it had filed a civil claim in British Columbia Supreme Court against the Canadian federal government. The claim seeks damages in relation to the February 26, 2014 decision concerning the New Prosperity Project in that the Government of Canada and its agents failed to meet the legal duties that were owed to Taseko and that in doing so they caused and continue to cause damages, expenses and loss to Taseko.

Taseko is proceeding with its request to amend the British Columbia environmental assessment certificate for the New Prosperity Project. In addition, on July 14, 2017 Taseko received a permit from the Ministry of Energy & Mines which allows the Company to gather information to

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advance mine permitting under the Mines Act British Columbia. The issuance of this permit is being challenged by First Nations opposed to the project and the legality of conducting the work is being challenged by CEAA. Both actions are before the courts.

The two Judicial Reviews initiated by Taseko were heard in federal court over a five day period in the week of January 30, 2017. Both Judicial Reviews focus on the principles of administrative and procedural fairness. Taseko’s allegation is that the Government of Canada, through the conduct of the environmental assessment and the decisions which resulted from it, failed in their obligation to uphold those fundamental principles. On December 5, 2017 each application for judicial review was dismissed by the court.

On January 3, 2018 Taseko filed Notices’ to Appeal for both decisions. It is not known when these appeals will be heard in court.

Capital and Operating Costs

The direct and indirect capital cost to bring the Prosperity Project into production at a design ore throughput rate of 70,000 tonnes per day was estimated in 2009 to be $814 million as summarized in Table 18.

Table 18:  Pre-production Capital Cost

Description	(in millions)
Site Preparation		$10
Mining		$68
Crushing, Conveying & Stockpiling		$52
Concentrator		$227
Tailings Disposal & Reclaim Water		$22
Site Infrastructure		$96
Offsite Infrastructure		$55
Total Direct Costs		$530
Total Indirect Costs		$161
Owners Costs		$19
Contingency		$104
Total Project Costs		$814

The capital cost estimate is expressed in constant 2nd quarter 2009 Canadian dollars using exchange rates of $US:$CDN of 0.95 and $EURO:$CDN of 0.65.

The sustaining and additional equipment capital cost estimate was $701 million over the operating life-of-mine and is summarized in Table 19.

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Table 19:  Life of Mine Sustaining Capital Cost

Description	(in millions)
Additional Mining Equipment		$248
Equipment Replacement		$274
Tailings		$113
Concentrator and Infrastructure		$30
Closure		$36
Total		$701

The operating costs for the Prosperity Project, including mining, milling, and general and administrative costs have been estimated in the second quarter of 2009 Canadian dollars and include no allowance for escalation or exchange rate fluctuations.

The average project site operating cost for the 33 year life-of-mine was estimated to be $7.51/tonne of ore milled.

The estimated life of mine average unit costs for each major operating area are shown in Table 20.

Table 20:  Life-of-Mine Unit Costs

Operating Category	Site Operating Cost     ($/tonne)
Mining		$3.14
Milling		$3.85
General and Administrative		$0.52
Total		$7.51

The 2009 Prosperity Technical Report used metal prices of US$650/oz gold, US$10.00/oz silver, and US$1.65/lb copper, and an exchange rate of $0.82 USD per CDN$. These were conservative values, well below long term forecast prices at the time and were used solely as the basis for determining the mineral reserve.

Key indicators derived from an economic analysis of the project at reserve metal prices only are summarized in Table 21 and are in constant 2^nd quarter 2009 CDN$.

Table 21:  Key Reserve Indicators

Total copper production	1,655,000 tonnes/3,648,000,000 lbs
Total gold production	7,720,000 troy ozs
Total silver production	19,800,000 troy ozs
Mine Life	33 years

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Pre-tax return on investment (ROI)	10.0%
Pre-tax payback period	8 years
Annual average net pre-tax cash flow (years 1-33)	$100,000,000
Pre-tax NPV (at 7.5%)	$222,000,000
Pre-production capital cost	$814,000,000
LOM sustaining capital	$701,000,000
LOM average site operating costs	$7.51/t ore processed
LOM average off property costs	$3.06/t ore processed
LOM average cost (net of by-product credits)*	US$0.59 per lb copper produced

*Total site and off property costs including all TC/RCs and transportation.

The basis for capital and operating cost estimates are documented in the 2009 Prosperity Technical Report.

Exploration, Development, and Production

Taseko’s current focus is on pursuing the appeals of both judicial reviews, the civil action, and the provincial Environmental Assessment Certificate Amendment for New Prosperity.

The Company has evaluated the current project design and potential tailings alternatives to achieve the best environmental protection in terms of both dam stability and potential impacts to water quality. The evaluation considered best practices and best available technologies, tailings storage locations, and water balance. The evaluation is consistent with the province’s requirement for all projects to undergo an assessment of alternative means of undertaking the project with respect to options for tailings management and clarified any previous misconceptions with respect to all aspects of seepage control and water management.

On July 14, 2017, the Company received a permit to conduct a site investigation program to collect the data required to complete the detailed engineering required in support of a B.C. Mines Act Permit application. The issuance of this permit is being challenged by First Nations opposed to the project and the legality of conducting the work is being challenged by CEAA. Both actions are before the courts.

RISK FACTORS

There are a number of risks that may have a material and adverse impact on the future operating and financial performance of Taseko and could cause the Company’s operating and financial performance to differ materially from the estimates described in forward-looking statements relating to the Company.

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Changes in the market price of copper, molybdenum and other metals, which are volatile and have fluctuated widely, affect the profitability of our operations and financial condition.

Our profitability and long-term viability depend, in large part, upon the market price of metals, primarily copper, and potentially molybdenum, gold and other metals and minerals. The market price of copper is volatile and is affected by numerous factors beyond our control, including:

• copper demand, especially from China;

• expectations with respect to the rate of inflation;

• the relative strength of the U.S. dollar and certain other currencies;

• interest rates;

• global or regional political or economic conditions, including interest rates and currency values;

• global mine supply of metal;

• global demand for industrial products and jewellery containing metals; and

• sales by central banks and other holders, speculators and producers of copper, gold and other metals in response to any of the above factors.

The copper market is volatile and cyclical and consumption of copper is influenced by global economic growth, trends in industrial production, conditions in the housing and automotive industries and economic growth in China, which is the largest consumer of refined copper in the world. Should demand weaken and consumption patterns change, in particular, if consumers seek out lower cost substitute materials, the price of copper could be adversely affected, which could negatively affect our results of operations.

A decrease in the market price of copper and molybdenum would affect the profitability of the Gibraltar and our ability to finance the exploration and development of our other mineral properties, which would have a material adverse effect on our business and results of operations. There can be no assurance that the market price of copper and other metals will remain at current levels or that such prices will improve. If commercial quantities of copper, gold and other metals are discovered, there is no assurance that a profitable market will exist or continue to exist for a production decision to be made or for the ultimate sale of the metals.

Fluctuations in foreign currency exchange rates could have an adverse effect on our business, results of operations and financial condition.

Fluctuations in the Canadian dollar relative to the U.S. dollar could significantly affect our business, results of operations and financial condition. As our Gibraltar operation is located in Canada, our costs are incurred primarily in Canadian dollars. However, our revenue is based on the market price of copper and other metals and is denominated in United States dollars. A strengthening of the Canadian dollar relative to the United States dollar will reduce our profitability, materially adversely affect our financial condition, and may also affect our ability to finance our development projects. We do not currently enter into foreign currency contracts to hedge against currency risk.

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Mining is inherently risky and operations are subject to conditions or events beyond our control, which could have a material adverse effect on our business and results of operations.

Mining involves various types of risks and hazards, including:

• uncertainties inherent in estimating mineral reserves and mineral resources;

• environmental hazards;

• discharge of pollutants or hazardous chemicals;

• industrial or environmental accidents;

• machinery breakdown;

• metallurgical and other processing problems;

• unusual or unexpected rock formations and other geological problems;

• structural cave-ins or slides;

• flooding;

• fire;

• metals losses; and

• periodic interruptions due to inclement or hazardous weather conditions.

These risks could result in injury or death, environmental damage, damage to, or destruction of, mineral properties, production facilities or other properties, delays in mining, increased production costs, monetary losses, and possible legal liability. Interruptions to our mining or processing operations may adversely impact our ability to continue production of concentrate at expected rates, with the result that our business and results of operations may be materially adversely affected

We may not be able to obtain insurance to cover these risks at economically feasible premiums. Insurance against certain environmental risks, including potential liability for pollution or other hazards as a result of the disposal of waste products occurring from production, is not generally available to us or to other companies within the mining industry. We may suffer a material adverse impact on our business and results of operations if we incur losses related to any significant events that are not covered by insurance policies.

The need for infrastructure could delay or prevent us from developing our development projects.

Completion of the development of our development projects is subject to various requirements, including government permitting and the need to establish power, water and transportation facilities. The lack of availability on acceptable terms or the delay in the availability of any one or more of these services could prevent or delay development of our projects. If adequate infrastructure is not available in a timely manner, there can be no assurance that:

• the development of our projects will be commenced or completed on a timely basis, if at all;

• the resulting operations will achieve the anticipated production volume; or

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• the construction costs and ongoing operating costs associated with the development of our projects will not be higher than anticipated.

Our various development projects, which are still under development, will require substantial additional financing for completion, may not achieve anticipated production capacity, may experience unanticipated costs or may be delayed or not completed at all.

The development projects are at various stages of development. The development of a mining project is a complex and challenging process that may take longer and cost more than initially projected, or may not be completed at all. In addition, anticipated production capacity may never be achieved. We may encounter unforeseen geological conditions or delays in obtaining required construction, environmental or operating permits or mine design adjustments. Operating delays may cause reduced production and cash flow while certain fixed costs, such as minimum royalties or loan payments, may still have to be paid on a predetermined schedule.

Moreover, completion of the development projects is subject to, among other things, the commercial availability of adequate financing. Even if financing is available, the 2017 Secured Note Indenture contains, and agreements for future financings will likely contain, a number of restrictive covenants that impose significant financial restrictions on us, including on our ability to incur additional debt. These restrictions could significantly limit our ability to obtain adequate financing for the development of the development projects. Without funds available to finance construction and development activities, the development projects may not be completed and the potential benefits of the development projects may never be realized. There can be no assurance that the development projects will ever materially contribute to our revenues, and capital expenditures for our development projects may materially adversely affect our business and results of operations.

In addition, there can be no assurance that our exploration efforts will result in the discovery of significant mineralization or that any mineralization discovered will result in an increase of our proven mineral reserves or probable mineral reserves. If proven mineral reserves or probable mineral reserves are developed, it may take a number of years and substantial expenditures from the initial phases of drilling until production is possible, during which time the economic feasibility of production may change. The combination of these factors may cause us to expend significant resources (financial and otherwise) on a property without receiving a return on investment.

We are subject to extensive governmental regulation of all aspects of our business.

Our operations and exploration and development activities are subject to extensive federal, provincial, state and local laws and regulations governing various matters, including:

• environmental protection;

• management and use of toxic substances and explosives;

• management of tailings and other wastes generated by our operations;

• management of natural resources;

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• exploration and development of mines, production and post-closure reclamation;

• exports;

• price controls;

• taxation;

• labour standards and occupational health and safety, including mine safety; and

• historic and cultural preservation.

Failure to secure approvals or comply with applicable laws and regulations may result in civil or criminal fines or penalties or enforcement actions, including orders issued by regulatory or judicial authorities enjoining or curtailing operations or requiring corrective measures, installation of additional equipment or remedial actions, any of which could result in the Company incurring significant expenditures. We may also be required to compensate private parties suffering loss or damage by reason of a breach of such laws, regulations or permitting requirements. It is also possible that future laws and regulations, or a more stringent enforcement of current laws and regulations by governmental authorities, could cause additional expense, capital expenditures, restrictions on or suspensions of our operations and delays in the development of our properties.

We are subject to risks related to the title of the properties that we own and lease.

Our mining operations are conducted on properties owned, subject to claims or leased by us from provincial and state governments. Although we have exercised reasonable due diligence with respect to determining title to properties we own or lease, there is no guarantee that title to such properties and other tenure will not be challenged or impugned. No assurances can be given that there are no title defects affecting the properties. There may be valid challenges to the title of our properties which, if successful, could make us unable to operate our properties as planned or permitted, or unable to enforce our rights with respect to our properties. In British Columbia, the rights of aboriginal peoples and their claims to much of British Columbia’s land area are not settled.

In addition, we may not be able to negotiate new leases or obtain contracts for properties containing surface, underground or subsidence rights necessary to develop any of our proven mineral reserves and probable mineral reserves at our development projects. Furthermore, our leasehold interests could potentially be at risk if mining operations are not commenced during the term of the lease.

We are subject to risks related to government regulation, permits, licenses and approvals.

Government regulations relating to mineral rights tenure, permission to disturb areas, land use and the right to operate can adversely affect Taseko. Our exploration, development and operations will require permits, licenses and approvals from various governmental authorities.

There can be no assurance that all necessary permits, licenses and approvals will be obtained or updated on a timely basis in order for us to carry out planned exploration, development or

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operational activities on our properties, including the planned development of the our development projects, and, if obtained or updated, that the costs involved will not exceed those that we have estimated. It is possible that the costs and delays associated with the compliance with the standards and regulations under such permits, licenses and approvals could result in Taseko not proceeding with the development or operation of its projects.

Although the Florence Copper Project was previously permitted for a period and has obtained a number of the required permits, licenses and approvals, the Florence Copper Project is currently updating and amending certain permits through a well-defined amendment process, but there can be no assurance as to the outcome of this process. There are, and may in the future be, legal challenges to the validity of permits, licenses and approvals obtained by Florence Copper Project, and there can be no assurance that such challenges will successfully be defeated. Obtaining, updating and defending the necessary governmental permits, licenses and approvals is a complex, time-consuming and costly process, the success of which is contingent upon many variables outside of our control. Obtaining, updating, or defending permits, licenses and approvals may increase costs and cause delays depending on the nature of the activity to be permitted and the interpretation of applicable requirements implemented by the permitting authority.

There is considerable uncertainty as to our ability to obtain the required permits for development of the Prosperity Project. The Federal Minister of the Environment has concluded under its environmental assessment completed under the Canadian Environmental Assessment Act, 2012 that the project is likely to cause significant adverse environmental effects that cannot be mitigated. We disagree with this determination and filed an application in the Canadian Federal Court for a judicial review of the decision of the Minister of the Environment with the objective of obtaining a court order that would quash the Minister’s decision. On December 5, 2017, the application for judicial review was dismissed by the court. On January 3, 2018 Taseko filed a Notice to Appeal the decision. It is not known when the appeal will be heard in court. We have also filed a civil claim in the British Columbia Supreme Court in which we are seeking damages from the government of Canada in connection with our allegation that it failed to meet the legal duties that were owed to us in carrying out the environmental review process. Given the uncertainty inherent in these legal proceedings and the current decision of the Minister, there is considerable uncertainty as to whether we will be able to obtain the required permitting for the development of the Prosperity project. As a result, we no longer consider this project material to our operations.

Aboriginal peoples’ title claims and rights to consultation and accommodation may impact our ability to expand our existing operations and proceed with our development projects.

Provincial and federal governments in Canada are required by law to consult with aboriginal peoples with respect to the issuance or amendment of project authorizations in Canada and to try to accommodate aboriginal peoples’ needs to the extent considered appropriate. There is considerable uncertainty as to the meaning, implications and use of the word “accommodate.” In practice, it is extraction industry participants who are often left to engage with affected local

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aboriginal communities with the goal often being the achievement of an impacts and benefits agreement. Such agreements may provide promises of priority for employment opportunities, the provision of commercial services such as transportation and catering, social, educational and environmental initiatives and cash payments. This consultation and accommodation may affect the timetable and costs of our development projects and may impact the manner in which we proceed with the development of these projects

Changes in government rules, regulations or agreements, or their application, may negatively affect the Company’s ownership rights, its access to or its ability to advance the exploration and development of its mineral properties.

The Canadian and U.S. governments currently have in place or may in the future implement laws, regulations, policies or agreements that may negatively affect the Company’s ownership rights with respect to its mineral properties or its access to the properties. These may restrain or block the Company’s ability to advance the exploration and development of its mineral properties or significantly increase the costs and timeframe to advance the properties.

We are solely dependent on the Gibraltar for revenues and suspension of production at that mine would materially adversely affect our business, results of operations and financial condition.

Our development projects are in various stages of development (and the Harmony gold project remains an exploration-stage property). However, until these other projects are developed and operational and are beginning to produce revenue, we are dependent solely upon Gibraltar for revenues. If Gibraltar were to cease production for any reason, it would have a material adverse effect on our business, results of operations, and financial position.

Our ability to expand or replace depleted reserves and the possible recalculation of our reserves and resources could materially affect our business and results of operations.

Our reported mineral reserves and mineral resources are only estimates. No assurance can be given that the estimated mineral reserves and mineral resources will be recovered or that they will be recovered at the rates estimated. Mineral reserve and mineral resource estimates are based on limited sampling and, consequently, are uncertain because the samples may not be representative. Mineral reserve and mineral resource estimates may require revision (either up or down) based on actual production experience. Market fluctuations in the price of metals, as well as increased production costs or reduced recovery rates, changes in the mine plan or pit design, or increasing capital costs may render certain mineral reserves and mineral resources uneconomic and may ultimately result in a restatement of mineral reserves and/or mineral resources. Moreover, short-term operating factors relating to the mineral reserves and mineral resources, such as the need for sequential development of ore bodies and the processing of new or different ore grades, may adversely affect our profitability in any particular accounting period.

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There are uncertainties inherent in estimating proven mineral reserves and probable mineral reserves and measured mineral resources, indicated mineral resources and inferred mineral resources, including many factors beyond our control. Estimating mineral reserves and mineral resources is a subjective process. Accuracy depends on the quantity and quality of available data and assumptions and judgments used in engineering and geological interpretation, which may be unreliable. It is impossible to have full knowledge of particular geological structures, faults, voids, intrusions, natural variations in and within rock types and other occurrences. Failure to identify and account for such occurrences in our assessment of mineral reserves and mineral resources may make mining more expensive and cost ineffective, which could have a material and adverse effect on our business and results of operations.

There is no assurance that mineral reserve and mineral resource figures are accurate, or that the mineral reserves or mineral resources can be mined or processed profitably. Mineral resources that are not classified as mineral reserves do not have demonstrated economic viability. You should not assume that all or any part of the measured mineral resources, indicated mineral resources, or inferred mineral resources will ever be upgraded to a higher category or that any or all of an inferred mineral resource exists or is economically or legally feasible to mine.

In addition, since mines have limited lives based on proven and probable mineral reserves, we continually seek to replace and expand our reserves. Mineral exploration, at both newly acquired properties and existing mining operations, is highly speculative in nature, involves many risks and frequently does not result in the discovery of mineable reserves. If proven mineral reserves or probable mineral reserves are developed, it may take a number of years and substantial expenditures from the initial phases of drilling until production is possible, during which time the economic feasibility of production may change.

Any material reductions in estimates of mineral reserves and/or mineral resources, or our ability to extract those resources, could have a material adverse effect on our business and results of operations

As our existing copper and molybdenum offtake agreements expire, our revenues and operating profits could be negatively impacted if we are unable to extend existing agreements or enter into new agreements due to competition, changing copper and molybdenum purchasing patterns, or other variables.

As our copper and molybdenum offtake agreements at the Gibraltar expire, we will compete with other copper and molybdenum suppliers to renew these agreements or to obtain new sales. If we cannot renew these copper and molybdenum supply agreements with our customers or find alternate customers willing to purchase our copper and molybdenum, our revenue and operating profits would suffer.

Our customers may decide not to extend existing agreements or enter into new long-term contracts or, in the absence of long-term contracts, may decide to purchase less copper and molybdenum than in the past or on different terms, including under different concentrate pricing

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terms. To the degree that we operate outside of long-term contracts, our revenues are subject to pricing in the concentrate spot market that can be significantly more volatile than the pricing structure negotiated through a long-term copper and molybdenum concentrate supply agreement. This volatility could materially adversely affect our business and results of operations if conditions in the spot market pricing for copper and molybdenum concentrate are unfavourable.

We are subject to risks related to environmental matters.

All of Taseko’s exploration, development, and mining operations are subject to environmental laws and regulations, which can make operations expensive or prohibit them altogether. Many environmental laws and regulations require Taseko to obtain and update permits for its activities from time to time, which may include environmental impact analyses, cultural resources analyses, and public review processes. Taseko must comply with stringent environmental legislation in carrying out work on its projects. Environmental legislation is evolving in a manner that will require stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects and a heightened degree of responsibility for companies and their officers, directors and employees. It is possible that future changes in environmental laws, regulations and permits, or changes in their enforcement or regulatory interpretation, could increase the cost of, or altogether prohibit, carrying out exploration, development, or operation of its projects or any other properties Taseko may acquire. Further, compliance with new or additional environmental legislation may result in delays to the exploration and development activities. It is possible that future changes in applicable laws, regulations and permits or changes in their enforcement or regulatory interpretation could have a significant impact on some portion of Taseko’s business, causing those activities to be economically re-evaluated at that time.

Taseko may be subject to potential risks and liabilities associated with the protection of the environment, as a result of its mineral exploration, development and production. To the extent that Taseko is subject to environmental liabilities, the payment of such liabilities or the costs that it may incur to remedy such liabilities would reduce funds otherwise available to Taseko and could have a material adverse effect on Taseko. If Taseko is unable to fully remedy an environmental liability, it might be required to suspend operations or enter into interim compliance measures pending completion of the required remedy. The potential exposure may be significant and could have a material adverse effect on Taseko.

We are subject to risks related to litigation.

The Company is or may be subject to legal proceedings related to the development of its projects, its operations, titles to its properties, environmental issues and shareholder or other investor lawsuits. Given the uncertain nature of these actions, the Company cannot reasonably predict the outcome thereof. If the Company is unable to win or favourably settle any lawsuits, it may have a material adverse effect on the Company.

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Our business requires substantial capital expenditures.

Our business is capital intensive and requires construction of new mines and infrastructure and maintenance of existing operations. Specifically, the exploration, permitting and development of reserves, mining costs, the maintenance of machinery and equipment and compliance with applicable laws and regulations require substantial capital expenditures. While the capital expenditures required to build-out our Gibraltar have been spent, we must continue to invest capital to maintain or to increase the amount of reserves that we develop and the amount of metal that we produce. We make no assurances that we will be able to maintain our production levels or generate sufficient cash flow, or that we will have access to sufficient financing to continue our production, exploration, permitting and development activities at or above our present levels and we may be required to defer all or a portion of our future capital expenditures. Moreover, increases in costs of key inputs may substantially increase our capital expenditures. Our business, results of operations and financial condition may be adversely affected if we cannot make such capital expenditures.

The Florence, Aley and New Prosperity projects will require substantial financing to be arranged prior to construction and development of these properties. Such financing could include a possible combination of debt and equity financing. On May 12, 2010, the Company entered into a gold stream transaction agreement for the New Prosperity project with Franco-Nevada Corporation (“Franco-Nevada”), whereby the Company may receive funding in staged deposits totalling US$350 million. The investment by Franco-Nevada is subject to (among other conditions) the condition precedent that the Prosperity project plan that we had agreed with them must receive appropriate governmental approval. Because our revised New Prosperity project plan is not the one we agreed with Franco-Nevada in 2010, this condition will not be satisfied, and so Franco-Nevada may currently terminate this agreement on ten business days’ written notice to Taseko. However, we believe Franco-Nevada currently has no economic incentive to do so. If our revised mine proposal is ultimately accepted by the authorities, we intend to seek Franco-Nevada’s agreement to reconfirm the terms of our gold stream transaction with them, but there is no assurance that Franco-Nevada will agree to provide such reconfirmation. The investment by Franco-Nevada is also subject to certain other conditions precedent which the Company may not be able to satisfy. There can be no assurance that gold stream, debt or equity financing will be available on acceptable terms. Other risks include those typical of large mine development projects, including the general uncertainties inherent in engineering and construction costs, the need to comply with generally increasing environmental regulation, opposition by aboriginal peoples and environmental groups, and accommodation of local and community concerns. The economics of the feasibility study are sensitive to the U.S. dollar and Canadian dollar exchange rate, and this rate has been subject to large fluctuations in the last several years.

Our ability to operate our company efficiently could be impaired if we lose key personnel or fail to continue to attract qualified personnel.

We manage our business with a number of key personnel at each location, including key contractors, the loss of a number of whom could have a material adverse effect on us. In

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addition, as our business develops and expands, we believe that our future success will depend greatly on our continued ability to attract and retain highly-skilled and qualified personnel and contractors. We cannot be certain that key personnel will continue to be employed by us or that we will be able to attract and retain qualified personnel and contractors in the future. Failure to retain or attract key personnel could have a material adverse effect on us.

There is no assurance that we will be able to renegotiate our existing union agreement for Gibraltar when it expires in 2021.

We have a union agreement in place for our unionized employees at Gibraltar which expires in 2021. If we are unable to renew this union agreement on acceptable terms when it becomes subject to renegotiation, we could experience a disruption of operations, higher labor costs or both. A lengthy strike or other labor disruption could have a material adverse effect on our business and results of operations.

Our actual costs of reclamation and mine closure costs may exceed current estimates.

We are required to prepare and file reclamation and mine closure plans for the Gibraltar Mine with the British Columbia Ministry of Energy and Mines and to post security for the estimated costs to complete this reclamation and mine closure work. The Gibraltar reclamation and mine closure plans are updated every five years and the amount of the bond is agreed based on this plan. The most recent five year reclamation and closure plan was submitted in March 2017 and bond and cash security of $47.6 million (100% basis) has been posted as of December 31, 2017 to meet reclamation bonding requirements for the Gibraltar Mine. Additional security in the amount of $6.5 million has been provided to meet reclamation bonding requirements for the Florence Project and this amount may need to be increased in the future. The Company has also recorded total provisions for environmental rehabilitation for all its properties of $107.9 million in its consolidated financial statements as of December 31, 2017, which has been calculated in accordance with International Financial Reporting Standards. There is no assurance that our bonding requirements, the recorded provision for environmental rehabilitation, and the actual costs of reclamation and mine closure for each of our properties will not exceed current estimates or that the estimated costs will not increase in the future when our reclamation and mine closure plans are updated. Accordingly, the amount we are required to spend on reclamation and mine closure activities could be materially different from current estimates. Any additional amounts required to be spent on bonding requirements, reclamation costs, and mine closure activities could materially adversely affect our business and results of operations.

There is no assurance that any of our expansion or development plans will not be opposed.

There is an increasing level of awareness relating to the perceived environmental and social impacts of mining activities. Opposition to mining activities by communities or indigenous groups, including aboriginal peoples, may have an impact on our ability to proceed with the expansion or development of our projects and the timetable and costs for these projects. While

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we are committed to operating in a socially responsible manner, there can be no assurance that our community relations efforts will mitigate this potential risk. Opponents of the Florence Copper project have in the past, and may in the future, file legal challenges to the validity of permits, licenses and approvals obtained by Florence Copper project, and there can be no assurance that such challenges will successfully be defeated. Obtaining, updating and defending the necessary governmental permits, licenses and approvals is a complex, time-consuming and costly process, the success of which is contingent upon many variables outside of our control. Obtaining, updating, or defending permits, licenses and approvals may increase costs and cause delays depending on the nature of the activity to be permitted and the interpretation of applicable requirements implemented by the permitting authority.

Increased competition could adversely affect our ability to attract necessary capital funding and could adversely affect our ability to acquire suitable mineral properties for development in the future.

The mining industry is intensely competitive. Significant competition exists for the acquisition of properties producing or capable of producing copper, gold or other metals. We may be at a competitive disadvantage in acquiring additional mining properties because we must compete with other individuals and companies, many of which have greater financial resources, operational experience and technical capabilities than we do. We may also encounter increasing competition from other mining companies in our efforts to hire experienced mining professionals. Increased competition could adversely affect our ability to attract necessary capital funding, or to acquire it on acceptable terms, or acquire suitable producing properties or prospects for mineral exploration in the future.

We may be adversely affected by our inability to control operating costs.

Our profitability depends in part on our ability to control operating costs. Increased demand for and cost of labor, services, equipment and other key inputs, such as diesel fuel, steel, concrete and electricity, could cause operating costs at Gibraltar to increase materially, resulting in delays if services or equipment cannot be obtained in a timely manner due to inadequate availability, and increased potential for scheduling difficulties and cost increases due to the need to coordinate the availability of services or equipment, any of which could materially increase project exploration, development or construction costs, result in project delays, or both. Increases in operating costs at Gibraltar may materially adversely affect our business and results of operations.

Shareholder activism.

The Company has in the past been subject to and may in the future become the target of shareholder activist activities. The effects of shareholder activist activities could have a negative effect on the Company and its business. The Company cannot predict with certainty the outcome of any future shareholder activist activities.

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Risks Relating to our Indebtedness

Our high level of indebtedness could adversely affect our financial condition and prevent us from fulfilling our obligations under the senior secured notes.

Our total long-term debt was $317.9 million as of December 31, 2017. Our high level of indebtedness could have important consequences to us:

• making it more difficult for us to satisfy our obligations with respect to the senior secured notes and any other existing or future debt;

• limiting our ability to obtain additional financing to fund development projects, working capital, capital expenditures, acquisitions or other general corporate purposes;

• requiring a substantial portion of our cash flows to be dedicated to debt service payments instead of other purposes, thereby reducing the amount of cash flows available for investments, working capital, capital expenditures, acquisitions and other general corporate purposes;

• increasing our vulnerability to general adverse economic and industry conditions;

• limiting our flexibility in planning for and reacting to changes in the industry in which we operate;

• placing us at a disadvantage compared to other, less leveraged competitors; and

• increasing our cost of borrowing.

In addition, the senior secured note indenture contains, and any future debt may contain, restrictive covenants that limit our ability to engage in activities that may be in our long-term best interest. Our failure to comply with those covenants could result in an event of default, which, if not cured or waived, could result in the acceleration of some or all of our debt and would have material negative consequences for shareholders.

We and our subsidiaries may still be able to incur substantially more debt, which could further exacerbate the risks associated with our high level of indebtedness.

The terms of the 2017 Secured Note Indenture permit us to incur substantial additional indebtedness in the future, including to finance working capital, capital expenditures, investments or acquisitions and including under any future credit facility, as defined in the 2017 Secured Note Indenture (a “Future Credit Facility”) or other “First Lien Debt”, as defined in the 2017 Secured Note Indenture (“First Lien Debt”). Although the 2017 Secured Note Indenture will limit our ability and the ability of our restricted subsidiaries to incur additional indebtedness, and to incur liens to secure such indebtedness, these restrictions are subject to a number of qualifications and exceptions and, under certain circumstances, debt incurred in compliance with these restrictions could be substantial. To the extent that we incur additional indebtedness,

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the risks associated with our substantial leverage described above, including our possible inability to service our debt, would increase.

To service our indebtedness, we will require a significant amount of cash. Our ability to generate cash depends on many factors beyond our control.

Our ability to make payments on and to refinance our indebtedness, including the 2017 Secured Notes, and to fund planned capital expenditures and other general corporate purposes, among other things, will depend on our ability to generate cash in the future. This, to a certain extent, is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control. We cannot assure you that our business will generate sufficient cash flow from operations or that future capital will be available to us in an amount sufficient to enable us to make payments on or to refinance our indebtedness, including the 2017 Secured Notes, or to fund our other liquidity needs. If our cash flows and capital resources are insufficient to allow us to make payments on our indebtedness, we may need to reduce or delay capital expenditures, sell assets, seek additional capital or restructure or refinance all or a portion of our indebtedness, including the 2017 Secured Notes, on or before maturity. We cannot assure you that we will be able to refinance any of our indebtedness, including the 2017 Secured Notes, on commercially reasonable terms or at all, or that the terms of that indebtedness will allow any of the above alternative measures or that these measures would satisfy our debt service obligations. If we are unable to generate sufficient cash flow or refinance our debt on favorable terms, it would significantly adversely affect our financial condition, the value of our outstanding debt and our ability to make any required cash payments under our indebtedness.

The terms of existing indebtedness will, and future indebtedness may, restrict our current and future operations, particularly our ability to respond to changes in our business and to take certain actions.

The instruments governing our current indebtedness contain, and agreements governing future indebtedness may contain, a number of restrictive covenants that impose significant operating and financial restrictions on us and may limit our ability to engage in acts that may be in our long-term best interest, including restrictions on our ability to:

• transfer and sell assets;

• pay dividends or distributions on our capital stock, repurchase our capital stock, make payments on subordinated indebtedness and make certain investments;

• incur additional debt;

• create or incur liens on our assets;

• create restrictions on the ability of our restricted subsidiaries to pay dividends, make loans or sell assets to us or any of our restricted subsidiaries;

• merge, amalgamate or consolidate with another company; and

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• enter into transactions with affiliates.

The covenants in the 2017 Secured Note Indenture are subject to certain exceptions and qualifications. In addition, if we enter into a Future Credit Facility in the future, it will likely contain financial covenants, including maintenance covenants that would require us to satisfy such covenants on an ongoing basis. Our ability to comply with these financial covenants can be affected by events beyond our control.

A breach of the covenants under the 2017 Secured Note Indenture, or under any agreements for future indebtedness, could result in an event of default under the applicable indebtedness. Such a default may allow the creditors of the defaulted indebtedness to accelerate the related debt and may also result in the acceleration of any other debt which has a cross-acceleration or cross-default provision to the related debt. Furthermore, if we were unable to repay the amounts due and payable under any secured arrangement, those respective lenders could proceed against the collateral securing such indebtedness, which could include our interest in Gibraltar and Gibraltar’s interest in the JVOA. In the event our lenders or noteholders accelerate the repayment of our borrowings, we and our subsidiaries may not have sufficient assets to repay that indebtedness.

As a result of restrictions contained in the 2017 Secured Note Indenture, and that may be contained in any agreements for future indebtedness, we may be limited in how we conduct our business, unable to raise additional debt or equity financing to operate during general economic or business downturns or unable to compete effectively or to take advantage of new business opportunities.

These restrictions may affect our ability to grow in accordance with our strategy.

A lowering or withdrawal of the credit ratings assigned to our debt securities by rating agencies may adversely increase our future borrowing costs and reduce our access to capital.

Any credit rating assigned to us could be lowered or withdrawn entirely by a rating agency if, in that rating agency’s judgment, future circumstances relating to the basis of the rating, such as adverse changes, so warrant. Any downgrade by a rating agency may result in higher borrowing costs and could decrease earnings. Any future lowering of our ratings likely would make it more difficult or more expensive for us to obtain additional debt financing.

Our 2017 Secured Notes are denominated in U.S. dollars, and we may incur additional debt in the future denominated in U.S. dollars.

The 2017 Secured Notes are, and our future indebtedness may be, denominated in U.S. dollars. Fluctuations in exchange rates may significantly increase or decrease the amount of debt and interest expense recorded in our financial statements. We do not currently employ derivative instruments to hedge foreign exchange risk related to our U.S. dollar denominated debt.

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We may not have the ability to raise funds necessary to finance any change of control offer required under the 2017 Secured Note Indenture.

If a change of control (as defined in the 2017 Secured Note Indenture) occurs, we will be required to offer to purchase the 2017 Secured Notes at 101% of their principal amount plus accrued and unpaid interest. Our ability to repurchase 2017 Secured Notes upon such a change of control would be limited by our access to funds at the time of the repurchase and the terms of our other debt agreements. The source of funds for any purchase of 2017 Secured Notes would be our available cash, cash generated from our subsidiaries’ operations or other sources, including sales of assets and issuances of debt or equity. In addition, any Future Credit Facility or other debt agreement that we may enter into in the future may contain provisions relating to a change of control. Upon a change of control, we may be required immediately to repay the outstanding principal, any accrued interest on and any other amounts owed by us under any Future Credit Facility or other debt agreement that we may enter into in the future. The source of funds for these repayments would be the same sources noted above to repurchase the notes upon a change of control. However, we cannot assure you that we will have sufficient funds available or that we will be permitted by our other debt instruments to fulfill these obligations upon a change of control in the future, in which case the lenders under any secured debt instruments would have the right to foreclose on our assets, which would have a material adverse effect on us. Furthermore, certain events that constitute a change of control could also constitute an event of default under any future indebtedness, and we might not be able to obtain a waiver of such defaults. In order to avoid the obligations to repurchase the notes upon a change of control, we may have to avoid transactions that would otherwise be beneficial to us.

DIVIDENDS

The Company has not paid dividends to date and the Company has no plans to pay a dividend in the foreseeable future.

DESCRIPTION OF CAPITAL STRUCTURE

Share Capital

Taseko’s share capital consists of an unlimited number of no par value common shares. As of March 26, 2018, there were 227,145,584 common shares issued and outstanding. In addition, there were 10,829,900 stock options and 3,000,000 share purchase warrants outstanding at March 26, 2018. All shares are required by law to be issued only as fully paid and non-assessable.

The holders of Taseko’s common shares are entitled to one vote for each share on all matters submitted to a vote of shareholders.

There have been no changes in the classification of common shares (reclassifications, consolidations, reverse splits or the like) within the previous five years. All common shares of Taseko rank pari passu (i.e. equally) for the payment of any dividends and distributions in the event of a wind-up.

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There are no constraints imposed on the foreign ownership of securities of Taseko, however an acquisition of control of Taseko by a non-Canadian would be subject to a review by the Canadian government under its foreign investment laws if the aggregate acquisition price were to exceed certain thresholds all of which are much higher than the Company’s current implied value.

Senior Secured Notes

In June 2017, the Company completed an offering of US$250 million aggregate principal amount of senior secured notes (“the Notes”). The Notes mature on June 15, 2022 and bear interest at an annual rate of 8.75%, payable semi-annually on June 15 and December 15, commencing December 15, 2017. The Notes were issued at 99% of par value and the Company incurred other transaction costs of $9.3 million resulting in net proceeds from the offering of $317.6 million (US$240.5 million). The net proceeds were used, along with cash on hand, to redeem the senior notes and to repay the senior secured credit facility and to settle the related copper call option.

The 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. The Notes are guaranteed by each of Taseko’s existing and future restricted subsidiaries, other than certain immaterial subsidiaries. The Company is able to incur limited amounts of additional secured and unsecured debt under certain conditions as defined in 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 Notes at any time on or after June 15, 2019, at redemption prices ranging from 104.375% to 100%, plus accrued and unpaid interest to the date of redemption. Prior to June 15, 2019, all or part of the notes may be redeemed at 100%, plus a make-whole premium, plus accrued and unpaid interest to the date of redemption. In addition, until June 15, 2019, the Company may redeem up to 35% of the aggregate principal amount of the notes, in an amount not greater than the net proceeds of certain equity offerings, at a redemption price of 108.750%, plus accrued and unpaid interest to the date of redemption. On a change of control, the Notes are redeemable at the option of the holder at a price of 101%.

Purchase and Sale Agreement with Osisko

On March 3, 2017, the Company entered into a silver stream purchase and sale agreement with Osisko Gold Royalties Ltd. (“Osisko”), whereby the Company received an upfront cash deposit payment of US$33 million for the sale of silver equivalent to 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 amount equivalent to Taseko’s share of all future payable silver production from Gibraltar will be delivered to Osisko. In addition to the initial deposit, the Company receives cash payments of US$2.75 per ounce for all silver deliveries made under the agreement.

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The silver sale agreement has a minimum term of 50 years and automatically renews for successive 10-year periods as long as Gibraltar mining operations are active. If the initial deposit is not fully reduced through silver deliveries at current market prices at time of the deliveries, a cash payment for the remaining amount will be due to Osisko at the expiry date of the agreement. The Company’s obligations under the agreement are secured by a pledge of Taseko’s 75% interest in the Gibraltar Joint Venture.

In connection with the silver stream transaction, the Company issued share purchase warrants to Osisko to acquire 3 million common shares of the Company at any time until April 1, 2020 at an exercise price of $2.74 per share

Ratings

The following table sets out the ratings of Taseko’s senior secured notes by the rating agencies indicated as at March 26, 2018:

	Rating Agency
	Standard & Poor’s Rating Services	Moody’s Investor Services
Senior Secured Notes	B	B3
Trend / Outlook	Stable	Stable

Standard & Poor’s Rating Services’ (“S&P”) credit ratings are on a long-term rating scale that ranges from AAA to D, which represents the range from highest to lowest quality of such securities rated. S&P has assigned Taseko a corporate credit rating of B/Stable. According to S&P, this rating generally means the relevant issuer is vulnerable, but currently has the capacity to meet its financial commitments. Adverse business, financial, or economic conditions will likely impair the capacity or willingness to meet its financial commitments. The stable outlook reflects S&P’s expectation that the Company will have sufficient source of liquidity to fund its operations at least over the next 12 months. The ratings from AAA to D may be modified by the addition of a plus (+) or a minus (-) sign to show relative standing within the major categories. In addition, S&P may add a rating outlook of “positive”, “negative” or “stable” which assesses the potential direction of a long-term credit rating over the intermediate term (typically six months to two years).

Moody’s Investor Services’ (“Moody’s”) credit ratings are on a long-term debt rating scale that ranges from AAA to Caa, which represents the range from highest to lowest quality of such securities rated. Moody’s has assigned Taseko a corporate family credit rating of B3 and a credit rating of B3 on the senior secured notes. According to Moody’s this rating generally means that the obligations are considered to be speculative and are subject to high credit risk. Moody’s appends numerical modifiers 1, 2 and 3 to each generic rating classification from AA through C. The modifier 1 indicates that the security ranks in the higher end of its generic rating category, the modifier 2 indicates a mid-range ranking and the modifier 3 indicates a ranking in the lower end of the generic category.

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The credit ratings accorded to the senior notes by S&P and Moody’s are not recommendations to purchase, hold or sell the senior notes as such ratings do not comment as to market price or suitability for a particular investor. There is no assurance that any rating will remain in effect for any given period of time or that any rating will not be revised or withdrawn entirely by a rating agency in the future if, in its judgment, circumstances so warrant.

MARKET FOR SECURITIES

Taseko’s common shares are listed on the Toronto Stock Exchange (TSX) and the NYSE American Stock Exchange under the symbols TKO and TGB, respectively. The following table shows the price ranges and volume traded by month in 2017, based on trading information published by each Exchange.

	Toronto Stock Exchange			NYSE American Stock Exchange
2017	High (C$)	Low (C$)	Average Daily  Share Volume	High (US$)	Low (US$)	Average Daily Share Volume
December	2.98	2.52	249,126	2.38	1.96	758,470
November	2.91	2.50	392,614	2.27	1.95	850,852
October	2.96	2.08	439,833	2.46	1.54	1,496,773
September	2.50	2.06	455,135	2.05	1.68	1,489,525
August	2.43	1.83	806,105	1.95	1.42	1,093,313
July	1.89	1.54	154,465	1.53	1.18	539,445
June	1.76	1.46	133,959	1.31	1.11	497,591
May	1.82	1.41	275,627	1.34	1.02	610,791
April	1.82	1.36	274,079	1.36	1.00	556,489
March	1.98	1.53	360,574	1.49	1.15	861,257
February	2.12	1.64	503,963	1.63	1.25	1,295,121
January	1.94	1.17	532,395	1.50	0.86	1,040,870

DIRECTORS AND OFFICERS

As at March 26, 2018, the directors and executive officers of Taseko, as a group, beneficially owned, directly or indirectly, or exercised control or direction over 9,994,708 common shares, representing less than five percent of the total number of common shares outstanding before giving effect to the exercise of options to purchase common shares held by such directors and executive officers. The statement as to the number of common shares beneficially owned, directly or indirectly, or over which control or direction is exercised by the directors and executive officers of Taseko as a group is based upon information furnished by the directors and officers as reflected on SEDI (www.sedi.com).

Name, Position and Office, and   Province or State and Country of Residence	Period a Director and/or Officer of Taseko
Directors
William P. Armstrong, Director   Ladysmith, British Columbia, Canada	Since May 2006
Geoffrey Burns, Director   North Vancouver, British Columbia, Canada	Since May 2016

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Name, Position and Office, and   Province or State and Country of Residence	Period a Director and/or Officer of Taseko
Anu Dhir, Director   Toronto, Ontario, Canada	Since September 2017
Robert A. Dickinson, Director   Lions Bay, British Columbia, Canada	Since January 1991
Russell E. Hallbauer, President, Chief Executive Officer and Director   West Vancouver, British Columbia, Canada	Since July 2005
Alex Morrison, Director   Castle Pines, Colorado, USA	Since April 2011
Richard Mundie, Director   Vancouver, British Columbia, Canada	Since January 2010
Ronald W. Thiessen, Chairman of the Board and Director   West Vancouver, British Columbia, Canada	Since October 1993
Linda Thorstad, Director   Vancouver, British Columbia, Canada	Since August 2014
Executive Officers
Brian Battison, Vice President Corporate Affairs   Tsawwassen, British Columbia, Canada	Since September 2007
Brian Bergot, Vice President, Investor Relations   North Vancouver, British Columbia, Canada	Since March 2014
Scott Jones, Vice President, Engineering   North Vancouver, British Columbia, Canada	Since December 2007
John W. McManus, Chief Operating Officer   West Vancouver, British Columbia, Canada	Since October 2005
Stuart McDonald, Chief Financial Officer   North Vancouver, British Columbia, Canada	Since September 2013
Robert Rotzinger, Vice President, Capital Projects   West Vancouver, British Columbia, Canada	Since December 2012
Trevor Thomas, Secretary   Vancouver, British Columbia, Canada	Since August 2008

At the annual general meeting held in June 2017, all the directors listed above, were re-elected as directors. All directors have a term of office expiring at the next annual general meeting of Taseko, which is currently scheduled for June 2018.

All officers have a term of office lasting until their removal or replacement by the Board of Directors. However, there are certain employment agreements in place with respect to these persons which will affect any termination of services.

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Committees of the Board of Directors

Audit and Risk Committee

The Audit and Risk Committee is comprised of Richard Mundie (Chair), Geoffrey Burns, and Alex Morrison.

Compensation Committee

The Compensation Committee is comprised of Alex Morrison (Chair), William P. Armstrong, Anu Dhir and Richard Mundie.

Nominating and Governance Committee

The Nominating and Governance Committee is comprised of Linda Thorstad (Chair), Alex Morrison and Richard Mundie.

Environmental, Health and Safety Committee

The Environmental, Health and Safety Committee is comprised of William P. Armstrong (Chair), Robert A. Dickinson, Geoffrey Burns, and Linda Thorstad.

Principal Occupations and Other Information

William P. Armstrong, P.Eng. – Director

Mr. Armstrong earned his Bachelors and Masters Degrees in Geological Engineering from the University of British Columbia and has more than 45 years of experience in the mining industry. He retired from Teck Cominco Ltd., where he was General Manager, Resource Evaluations and was responsible for the evaluation of potential acquisitions and divestitures. He was also responsible for the company’s mineral reserves and resources. During his career with Cominco Ltd., and Teck Cominco Ltd., Mr. Armstrong was involved in feasibility studies, construction and operation of a large number of mines, including coal deposits, underground and open pit base metal mines and precious metal mines.

Mr. Armstrong is, or within the past five years, was a director of the following public companies:

Company	Positions Held	From	To
Atlantic Gold Corporation	Director	September 2013	Present
Taseko Mines Limited	Director	May 2006	Present

Geoffrey Burns, MBA, B.Sc. – Director

Mr. Burns brings over thirty years of senior management experience in the mining industry to Taseko. He is currently the Chairman of Maverix Metals Inc. and until December 2015 was the President, CEO and a Director at Pan American Silver Corp. (“PASC”). During his 12 year

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tenure at PASC, the company increased its silver production from 7.5 million ounces to over 26 million ounces annually to become the second largest primary silver producer in the world. He has extensive experience throughout North and South America in mine operations and project development having participated in numerous mine construction projects from feasibility study into continuous operation. He has also led numerous capital market transactions including placements of equity, debt and convertible debt, and he was instrumental in completing several cornerstone acquisitions for PASC. Mr. Burns holds a B.Sc. Majors degree in Geology from McMaster University, and an MBA from York University.

Mr. Burns is, or within the past five years was, an officer and/or director of the following public companies:

Company	Positions Held	From	To
Maverix Metals Inc.	Director and Chairman	January 2012	Present
Pan American Silver Corp.	Director	July 2003	December 2015
	President and CEO	May 2004	December 2015
Taseko Mines Limited	Director	May 2016	Present

Anu Dhir, B.A. JD. – Director

Ms. Dhir is a co-founder and executive of ZinQ Mining, a private base metals and precious metals company. Prior to ZinQ, she served as Vice President, Corporate Development and Company Secretary at Katanga Mining Limited, a publicly-listed mining company. Her portfolio of responsibilities at Katanga covered corporate development, legal advisory, investor relations, governance, and communications.

Ms. Dhir also serves as a non-executive Director for Golden Star Resources and Trillium Health Partners. Ms. Dhir holds a BA from the University of Toronto and earned her Law degree (Juris Doctor) at Quinnipiac University in Hamden, Connecticut.

Ms. Dhir is, or within the past five years, was a director of the following public companies:

Company	Positions Held	From	To
Atlatsa Resources Corporation	Director	July 2008	December 2014
Energulf Resources Ltd.	Director	August 2013	September 2015
Frontier Rare Earths Limited	Director	November 2010	January 2015
Golden Star Resources	Director	February 2014	Present
Great Basin Gold Limited	Director	May 2011	June 2013
Taseko Mines Limited	Director	September 2017	Present

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Robert A. Dickinson, B.Sc., M.Sc. – Director

Mr. Dickinson is an economic geologist who has been actively involved in mineral exploration and mine development for over 45 years and was inducted into the Canadian Mining Hall of Fame in 2012. He is Chairman of Hunter Dickinson Inc. (“HDI”) and Hunter Dickinson Services Inc. (“HDSI”) as well as a director and member of the management team of a number of public companies associated with HDSI. He is also President and Director of United Mineral Services Ltd., a private resources company. He also serves as a Director of Britannia Mine Museum and Trustee of the BC Mineral Resources Education Program.

Mr. Dickinson is, or within the past five years was, an officer and/or director of the following public companies:

Company	Positions Held	From	To
Amarc Resources Ltd.	Director	April 1993	Present
	Chairman	April 2004	Present
Heatherdale Resources Ltd.	Director	November 2009	Present
Northcliff Resources Ltd.	Director	June 2011	Present
	Chairman	June 2011	January 2013
Northern Dynasty Minerals Ltd.	Director	June 1994	Present
	Chairman	April 2004	Present
Quartz Mountain Resources Ltd.	Director	December 2003	Present
Taseko Mines Limited	Director	January 1991	Present

Russell E. Hallbauer, P.Eng. – Director, President and Chief Executive Officer

Mr. Hallbauer graduated from the Colorado School of Mines with a B.Sc. in Mining Engineering in 1979. He is a Registered Professional Engineer with the Association of Professional Engineers of British Columbia. He has been a member of the Canadian Institute of Mining and Metallurgy since 1975 and is a director and former chairman of the Mining Association of B.C.

In 1983, he joined Teck Corporation’s Bullmoose mine, advancing through Engineering and Supervisory positions to become Mine Superintendent in 1987, and in 1992, became General Manager of Quintette. In 1995, he assumed new responsibilities in Vancouver when he was appointed General Manager, Coal Operations, overseeing Teck’s three operating coal mines in the Province. In 2002, he was appointed General Manager, Base Metal Joint Ventures, responsible for Teck Cominco’s interests in Highland Valley Copper, Antamina in Peru, and Louvicourt in Quebec. Mr. Hallbauer is a director of HDSI (and HDI), a company providing

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management and administrative services to several publicly-traded companies (including Taseko), and focuses on directing corporate development and financing activities.

Mr. Hallbauer is, or within the past five years was, an officer and/or director of the following public companies:

Company	Positions Held	From	To
Curis Resources Ltd.	Co-Chairman	September 2012	November 2014
	Director	November 2010	November 2014
Northern Dynasty Minerals Ltd.	Director	April 2008	February 2016
Taseko Mines Limited	President/CEO/Director	July 2005	Present

Alexander Morrison, CPA, CA - Director

Mr. Morrison is a mining executive and Chartered Professional Accountant with over 25 years of experience in the mining industry.

Mr. Morrison is a citizen of the United States and is a resident of the state of Colorado.

Mr. Morrison has held senior executive positions with a number of mining companies, most recently serving as Vice President and Chief Financial Officer of Franco-Nevada Corporation from 2007 to 2010. From 2002 to 2007, Mr. Morrison held increasingly senior positions at Newmont Mining Corporation, including Vice President, Operations Services and Vice President, Information Technology. Prior to that, Mr. Morrison was Vice President and Chief Financial Officer of NovaGold Resources Inc., Vice President and Controller of Homestake Mining Company and held senior financial positions at Phelps Dodge Corporation and Stillwater Mining Company. Mr. Morrison began his career with PricewaterhouseCoopers LLP after obtaining his Bachelor of Arts in Business Administration from Trinity Western University.

Mr. Morrison is, or within the past five years, was a director of the following public companies:

Company	Positions Held	From	To
Detour Gold Corporation	Director	May 2010	Present
Pershing Gold Corporation	Director	November 2012	February 2018
Gold Resource Corporation	Director	March 2016	Present
Gold Standard Ventures Corp.	Director	August 2017	Present
Taseko Mines Limited	Director	April 2011	Present

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Richard Mundie, CPA, CA – Director

Mr. Mundie is a Chartered Professional Accountant with a Bachelor of Commerce degree from the University of British Columbia. Mr. Mundie has held a number of senior leadership positions in the mining sector for over 40 years in key organizations in British Columbia and overseas. From 2005 to 2007, he was Vice President, Asia Affairs and Chief Representative (China), for Teck Cominco Limited. In this role, he was active in the international mining community and participated in several joint programs to build stronger relationships with the Chinese Government.

Mr. Mundie also held the position of Vice President – Commercial for a period of ten years with Teck Cominco. In this role, he was responsible for marketing the company’s commercial mineral products, gaining invaluable experience in Europe, South America, United States, Japan, Korea, and Taiwan.

Between 1983 and 1995, he held a number of financial and leadership positions with Cominco and in 1992, he assumed the role of Director of Business Development with wide responsibilities for mergers, acquisitions and divestitures. Earlier career positions included a number of finance related roles in the resources sector, transport and public accounting with PriceWaterhouseCoopers LLP.

Mr. Mundie is, or within the past five years was, a director of the following public companies:

Company	Positions Held	From	To
Panoro Minerals Ltd.	Director	March 2010	September 2016
Taseko Mines Limited	Director	January 2010	Present

Ronald W. Thiessen, CPA, FCA – Chairman of the Board and Director

Mr. Thiessen is a Chartered Professional Accountant with professional experience in finance, taxation, mergers, acquisitions and re-organizations. Since 1986, Mr. Thiessen has been involved in the acquisition and financing of mining and mineral exploration companies. Mr. Thiessen’s is a director of HDSI (and HDI), a company providing management and administrative services to several publicly-traded companies (including Taseko), and focuses on directing corporate development and financing activities.

Mr. Thiessen is, or within the past five years was, an officer and/or director of the following public companies:

Company	Positions Held	From	To
Amarc Resources Ltd.	Director	September 1995	Present
	President and CEO	September 2000	Present

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Company	Positions Held	From	To
Great Basin Gold Ltd.	Director	October 1993	June 2013
	Chairman	November 2006	June 2013
Northern Dynasty Minerals Ltd.	Director	November 1995	Present
	President and CEO	November 2001	Present
Quartz Mountain Resources Ltd.	Director	December 2011	Present
	President and CEO	December 2011	Present
Taseko Mines Limited	Director	October 1993	Present
	Chairman	May 2006	Present

Linda Thorstad, MSc, P.Geo., FEC (Hon), FGC - Director

Ms. Thorstad is a registered professional geoscientist and has over 35 years of senior management experience in the mining industry. Her experience spans exploration and development companies as well as key roles with mid-tier producers. Ms. Thorstad served as the Director, Government and Community Relations and Permitting at Alamos Gold until April 2015. Prior to Alamos, she was the President and Chief Executive Officer of Orsa Ventures until it was acquired by Alamos Gold in 2013. Additionally, she has been involved in two special government commissions focused on sustainability, land use, resource and environmental management. Ms. Thorstad is the past President of the Association of Professional Engineers and Geoscientists of British Columbia, a Founding Member of the Canadian Council of Professional Engineers (now Geoscience Canada) and Honorary Fellow of Engineers Canada.

Ms. Thorstad is, or within the past five years, was a director of the following public companies:

Company	Positions Held	From	To
Orsa Ventures Corporation	Director	August 2008	September 2013
Taseko Mines Limited	Director	August 2014	Present

Brian Battison – Vice President, Corporate Affairs

Mr. Battison is responsible for all matters relating to corporate and public affairs, including government and community relations and external communications. Mr. Battison has many years of experience in both the private and public sectors specializing in policy and program development, strategic planning and issue management.

Mr. Battison is, or within the past five years was, an officer of the following public companies:

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Company	Positions Held	From	To
Taseko Mines Limited	Vice President, Corporate Affairs	September 2007	Present

Brian Bergot – Vice President, Investor Relations

Mr. Bergot was appointed Vice President, Investor Relations in March 2014 and has over 20 years of experience in the natural resources sector. Brian joined Taseko in 2006 and has held roles of increasing responsibility, in both Investor Relations and Marketing & Logistics. Prior to his career in mining, Mr. Bergot spent 14 years at Methanex Corporation, a $7 billion BC-based chemical company. At Methanex, he held a number of corporate and operational roles including investor relations and marketing & logistics. As Vice President, Investor Relations, he is responsible for expanding the Company’s shareholder base in the North American and European markets.

Mr. Bergot is, or within the past five years was, an officer of the following public companies:

Company	Positions Held	From	To
Taseko Mines Limited	Vice President, Investor Relations	March 2014	Present

Scott Jones, P.Eng. – Vice President, Engineering

Mr. Jones has over 35 years of experience in the mining industry. Prior to joining Taseko in 2006, he was a Senior Mining Engineer for Teck Cominco where he was involved in property valuation and feasibility studies. He has also held various senior positions in both underground and open pit operations for Teck Cominco and at Barrick Gold’s Hemlo Operations. He has a B.Sc. in Mine Engineering from McGill University.

Mr. Jones is, or within the past five years was, an officer of the following public companies:

Company	Positions Held	From	To
Taseko Mines Limited	Vice President, Engineering	December 2007	Present

John McManus, P. Eng. – Chief Operating Officer

Mr. McManus holds a Bachelor of Science degree in mining engineering from the Colorado School of Mines and a Technologist Diploma in Mining from the British Columbia Institute of Technology.

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Mr. McManus has worked in the mining industry in British Columbia for over 30 years where he gained experience in mine operations, mine engineering and environmental management. Prior to joining Taseko in 2005, he was the General Manager, Coal Mountain Operations at Elk Valley Coal Corporation. Before that, Mr. McManus was the Mine Manager at Teck Cominco’s coal mining joint venture Bullmoose operation, General Superintendent at the Elkview coal mine and Superintendent of Engineering at the Quintette operation. His past experience also includes five years working in operations and engineering at the Highland Valley and Lornex copper mines and three years working in gold exploration in the Yukon, British Columbia and California.

Mr. McManus is, or within the past five years was, an officer of the following public companies:

Company	Positions Held	From	To
Taseko Mines Limited	Senior Vice President, Operations	December 2007	December 2013
	Chief Operating Officer	December 2013	Present

Stuart McDonald, CPA, CA – Chief Financial Officer

Mr. McDonald is a Chartered Professional Accountant with over 20 years of experience in mining finance, corporate development, treasury management and financial reporting. Prior to joining Taseko in 2013, he held a number of senior financial positions in the mining industry including Chief Financial Officer of Quadra FNX Mining Ltd. (and its predecessor Quadra Mining Ltd.) from 2007 to 2010, and CFO and Senior Vice President of Yukon Zinc Corp. from 2010 to 2013. He was also Corporate Controller at Cumberland Resources from 2004 until its acquisition by Agnico-Eagle Mines in 2007. Prior to joining the mining industry, he was a Senior Manager at Deloitte & Touche LLP and also spent three years as an Audit Manager with Ernst & Young in the Czech Republic.

Mr. McDonald is, or within the past five years was, an officer of the following public companies:

Company	Positions Held	From	To
Taseko Mines Limited	Chief Financial Officer	September 2013	Present

Robert Rotzinger, P. Eng. – Vice-President, Capital Projects

Mr. Rotzinger has over 20 years of experience in the mining industry with Taseko and predecessor companies. Mr. Rotzinger has been a key participant in the $700 million capital investment program at the Gibraltar Mine including managing the engineering, construction and commissioning of the three phase mine expansion project. In 2014, he was the recipient of the Canadian Mineral Processors Society “Mineral Processor of the Year Award” and in 2010, he was a co-recipient of the Association of Mineral Exploration British Columbia E.A. Scholz Award for Excellence in Mine Development for the expansion and modernization of the Gibraltar Mine.

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He has also received PowerSmart Excellence Awards from BC Hydro in 2008 for Outstanding Energy Efficient Project and again in 2010 for the Application of New Energy Efficient Technology.

Mr. Rotzinger is, or within the past five years was, an officer of the following public companies:

Company	Positions Held	From	To
Taseko Mines Limited	Vice President, Capital Projects	December 2012	Present

Trevor Thomas, LLB – Secretary

Mr. Thomas has practiced in the areas of corporate commercial, corporate finance, securities and mining law since 1995, both in private practice environment as well as in-house positions and is currently general counsel for Hunter Dickinson Inc. Prior to joining Hunter Dickinson Inc. he served as in-house legal counsel with Placer Dome Inc.

Mr. Thomas is, or within the past five years was, an officer of the following public companies:

Company	Positions Held	From	To
Amarc Resources Ltd.	Secretary	February 2008	Present
Curis Resources Ltd.	Secretary	June 2013	November 2014
Heatherdale Resources Ltd.	Secretary	July 2013	Present
Northcliff Resources Ltd.	Secretary	June 2011	Present
Northern Dynasty Minerals Ltd.	Secretary	February 2008	Present
Quartz Mountain Resources Ltd.	Secretary	June 2013	Present
Rathdowney Resources Ltd.	Secretary	March 2011	Present
Taseko Mines Limited	Secretary	August 2008	Present

Cease Trade Orders, Bankruptcies, Penalties or Sanctions

No director or executive officer of Taseko is as of the date of this AIF, or has been within the 10 years before the date of this AIF, a director or executive officer of any company that was the subject of a cease trade order or similar penalty or sanction while that person was acting in that capacity, or was the subject of a cease trade order or similar penalty or sanction after the director or executive officer ceased to act in that capacity and which resulted from any event that occurred while that person was acting in the capacity of a director or executive officer.

Except as disclosed below, no director or executive officer of the Company, or a shareholder holding a sufficient number of securities of the Company to affect materially control of the Company, (i) is, or within ten years prior to the date hereof has been, a director or executive officer of any company (including the Company) that, while that person was acting in that

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capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets, or (ii) has, within ten years prior to the date hereof, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of the director, executive officer or shareholder.

As publicly disclosed at www.sedar.com, Great Basin Gold Ltd. (“GBG”), a company on whose board Ronald W. Thiessen served became insolvent and was liquidated commencing in 2012. GBG was developing two gold projects using substantial debt financing when gold prices began their precipitous fall. Mr. Thiessen resigned on June 30, 2013.

No director or executive officer of the Company, or a shareholder holding a sufficient number of securities of the Company to affect materially the control of the Company, has been subject to (i) any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority; or (ii) any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable investor in making an investment decision.

Potential Conflicts of Interest

Several directors of Taseko also serve as directors of one or more other resource companies involved in mineral exploration and/or development. It may occur from time to time that as a consequence of their activity in the mineral industry and serving on such other boards that a director may become aware of potential resource property opportunities which are of interest to more than one of the companies on whose boards that person serves. Furthermore, it is possible that the directors of Taseko and the directors of one or more such other companies may also agree to allow joint participation on Taseko’s properties or the properties of that other company. Accordingly, situations may arise in the ordinary course which involves a director in an actual or potential conflict of interest as well as issues in connection with the general obligation of a director to make corporate opportunities available to the company on which the director serves. In all such events, any director who might have a disclosable financial interest in a contract or transaction by virtue of office, employment or security holdings or other such interest in another company or in a property interest under consideration by the Taseko Board, would be obliged to abstain from voting as a Taseko director in respect of any transaction involving that other company(s) or in respect of any property in which an interest is held by him. The directors will use their best business judgment to help avoid situations where conflicts or corporate opportunity issues might arise and they must at all times fulfill their duties to act honestly and in the best interests of Taseko.

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LEGAL PROCEEDINGS AND REGULATORY ACTIONS

The Company has not been subject to any securities regulatory authority or other regulatory authority or court penalty or sanction.

INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS

None of the directors or senior officers of the Company, nor any person who has held such a position since the beginning of the last completed financial year end of the Company, nor any associate or affiliate of the foregoing persons, has any substantial or material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any material transaction of the Company other than as set out herein.

Three directors of the Company (Robert Dickinson, Ronald Thiessen and Russell Hallbauer) are also principals of Hunter Dickinson Services Inc. (“HDSI”), a private company. HDSI invoices the Company for the executive services (director fees) of Messrs. Dickinson and Thiessen and for other services provided by HDSI. For the year ended December 31, 2017, the Company incurred total costs of $1.4 million (2016: $1.4 million) in transactions with HDSI. Of these, $0.6 million (2016: $0.6 million) related to administrative, legal, exploration and tax services, $0.5 million related to reimbursements of office rent costs (2016: $0.5 million), and $0.3 million (2016: $0.3 million) related to director fees for two Taseko directors who are also principals of HDSI.

TRANSFER AGENT AND REGISTRAR

The Company’s registrar and transfer agent for its common shares is Computershare Investor Services Inc. at its offices in Vancouver, British Columbia.

MATERIAL CONTRACTS

The following contracts are considered material and have been filed at www.sedar.com:

(a) Joint Venture Operating Agreement with Cariboo, dated March 18, 2010, whereby the Gibraltar Mine is operated in a 75:25 joint venture with Cariboo; and

(b) 2017 Secured Note Indenture, dated as of June 14, 2017, between the Company and each of the Guarantors Party, and The Bank of New York Mellon, as U.S. Trustee, and BNY Trust Company of Canada, as Canadian Co-Trustee and Collateral Agent. Information on the terms of the 2017 Secured Notes and the 2017 Secured Note Indenture is incorporated by reference from the Company’s material change report dated June 14, 2017 filed on SEDAR on June 24, 2017.

INTERESTS OF EXPERTS

The following is a list of the persons or companies named as having prepared or certified a statement, report or valuation, in this AIF either directly or in a document incorporated by

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reference and whose profession or business gives authority to the statement, report or valuation made by the person or company:

(a) The Company’s independent auditors are KPMG LLP, Chartered Professional Accountants, who have issued independent auditors’ reports dated February 20, 2018 in respect of the Company’s consolidated financial statements as at December 31, 2017 and for the fiscal year ended December 31, 2017 and the Company’s internal control over financial reporting as of December 31, 2017;

(b) Scott Jones, P. Eng. authored the “Technical Report on the 344 million tonne increase in mineral reserves at the Prosperity Gold – Copper Project” dated December 17, 2009;

(c) Ronald G. Simpson, P.Geo. co-authored the “Technical Report on Mineral Reserves at the Aley Project” dated October 30, 2014, amended and restated December 4, 2017;

(d) Scott Jones, P. Eng. co-authored the “Technical Report on Mineral Reserves at the Aley Project” dated October 30, 2014, amended and restated December 4, 2017;

(e) Robert Rotzinger, P. Eng. co-authored the “Technical Report on Mineral Reserves at the Aley Project” dated October 30, 2014, amended and restated December 4, 2017;

(f) Keith Merriam, P. Eng. co-authored the “Technical Report on Mineral Reserves at the Aley Project” dated October 30, 2014, amended and restated December 4, 2017;

(g) Greg Yelland, P. Eng. co-authored the “Technical Report on Mineral Reserves at the Aley Project” dated October 30, 2014, amended and restated December 4, 2017;

(h) Scott Jones, P. Eng. authored the “Technical Report on the Mineral Reserve Update at the Gibraltar Mine” dated June 15, 2015; and

(i) Dan Johnson, P.E., authored the “NI 43-101 Technical Report, Florence Copper Project, Florence, Pinal County, Arizona” dated February 28, 2017, amended and restated December 4, 2017.

To our knowledge, Scott Jones, Ronald G. Simpson, Robert Rotzinger, Keith Merriam, Greg Yelland and Dan Johnson do not hold, directly or indirectly, more than 1% of our issued and outstanding common shares.

KPMG are the auditors of the Company and have confirmed that they are independent of the Company within the meaning of the relevant rules and related interpretations prescribed by the relevant professional bodies in Canada and any applicable legislation or regulation and also that they are independent accountants with respect to the Company under all relevant US professional and regulatory standards.

Based on information provided by the relevant persons, and except as otherwise disclosed in this AIF, none of the persons or companies referred to above has received or will receive any direct or indirect interests in our property or the property of an associated party or an affiliate of ours or have any beneficial ownership, direct or indirect, of our securities or of an associated party or an affiliate of ours.

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ADDITIONAL INFORMATION

Additional information, including additional financial information, directors’ and officers’ remuneration, indebtedness of officers, executive stock options and interests of management and others in material transactions, where applicable, is contained in annual financial statements, MD&A, proxy circulars and interim financial statements available at the SEDAR internet web site (www.sedar.com).

The following documents can be obtained upon request from Taseko’s Shareholder Communication Department by calling (778) 373-4533:

I. this Annual Information Form, together with any document incorporated herein by reference;

II. the Annual Report of the Company and any interim financial statements filed with Securities Commissions subsequent to the audited financial statements for the Company’s most recently completed financial year; and

III. the Proxy Circular for the June 8, 2017 annual general meeting of the Company dated April 24, 2017.

The Company may require the payment of a reasonable charge from persons, other than security holders of the Company, requesting copies of these documents.

AUDIT AND RISK COMMITTEE

The Audit and Risk Committee has adopted a charter that sets out its mandate and responsibilities, and is attached to this AIF as Appendix A.

Composition of Audit and Risk Committee

The Audit and Risk Committee, consisting of Richard Mundie, Geoffrey Burns and Alex Morrison, reviews all financial statements of the Company prior to their publication, meets with the auditors as part of their review of audit findings, considers the adequacy of audit procedures, recommends the appointment of independent auditors, reviews and approves the professional services to be rendered by them and reviews fees for audit services. The charter has set criteria for membership which all members of the Audit and Risk Committee are required to meet consistent with National Instrument 52-110 Audit Committees and other applicable regulatory requirements. The Audit and Risk Committee, as needed, meets separately (without management present) with the Company’s auditors to discuss the various aspects of the Company’s financial statements and the independent audit.

Each Audit and Risk Committee member is an independent director and is financially literate. Mr. Mundie is the Audit and Risk Committee’s chairman. Messrs. Morrison, Burns, and Mundie are financial experts.

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Relevant Education and Experience

Disclosure respecting the education and experience of the Audit and Risk Committee is provided in their biographies above. As a result of their education and experience, each member of the Audit Committee has familiarity with, an understanding of, or experience in:

• the accounting principles used by the Company to prepare its financial statements, and the ability to assess the general application of those principles in connection with estimates, accruals and reserves;

• reviewing or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the Company’s financial statements, and

• internal controls and procedures for financial reporting.

Code of Ethics

The Company has adopted a code of ethics that applies to all directors, officers and employees of the Company, including the Chief Executive Officer, Chief Operating Officer, Chief Financial Officer and other senior finance staff. A copy of the Code of Ethics, which is included as a part of the Company’s Governance Policies and Procedures Manual, is available on the Company’s website at www.tasekomines.com and at the SEDAR internet web site www.sedar.com.

Principal Accountant Fees and Services

The following table discloses the aggregate fees billed for each of the last two years for professional services rendered by the Company’s audit firm for various services.

Services	Year ended December 31, 2017		Year ended   December 31, 2016
Audit Fees1		$  598,500		$  476,000
Audit Related Fees2		–		–
Tax Fees		–		–
All Other Fees		–		–
Total		$  598,500		$  476,000

(1) “Audit Fees” for the year ended December 31, 2017 include fees related to the stream agreement with Osisko, senior secured notes offering, and the short form base shelf prospectus.

(2) “Audit Related Fees” include services that are traditionally performed by the auditor.

Pre-Approval Policies and Procedures

Management of the Company requests approval from the Audit and Risk Committee for all audit and non-audit services to be provided by the Company’s auditors. The Audit and Risk Committee pre-approves all such services with set maximum dollar amounts for each itemized

- 89 -

service. During such deliberations, the Audit and Risk Committee assesses, among other factors, whether the services requested would be considered “prohibited services” as contemplated under Canadian independence standards and by the US Securities and Exchange Commission, and whether the services requested and the fees related to such services could impair the independence of the auditors. No audit-related fees, tax fees or other non-audit fees for such “prohibited services” were approved by the Audit and Risk Committee.

APPENDIX A

Audit and Risk Committee Charter

1.   Purpose: Responsibilities and Authority

The Audit and Risk Committee (the “Audit Committee” or “Committee”) shall carry out its responsibilities under applicable laws, regulations and stock exchange requirements with respect to the employment, compensation and oversight of the Company’s independent auditor, and other matters under the authority of the Committee. The Committee also shall assist the Board of Directors in carrying out its oversight responsibilities relating to the Company’s financial, accounting and reporting processes, the Company’s system of internal accounting and financial controls, the Company’s compliance with related legal and regulatory requirements, and the fairness of transactions between the Company and related parties. In furtherance of this purpose, the Committee shall have the following responsibilities and authority:

(a)          Relationship with Independent Auditor.

(i)        Subject to the law of British Columbia as to the role of the Shareholders in the appointment of independent auditors, the Committee shall have the sole authority to appoint or replace the independent auditor.

(ii)        The Committee shall be directly responsible for the compensation and oversight of the work of the independent auditor (including resolution of disagreements between management and the independent auditor regarding financial reporting) for the purpose of preparing or issuing an audit report or related work.

(iii)        The independent auditor shall report directly to the Committee.

(iv)        The Committee shall approve in advance all audit and permitted non-audit services with the independent auditor, including the terms of the engagements and the fees payable; provided that the Committee Chairman may approve services to be performed by the independent auditors and the fee therefor between Committee meetings if the amount of the fee does not exceed $50,000, provided that any such approval shall be reported to the Committee at the next meeting thereof. The Committee may delegate to a subcommittee the authority to grant pre-approvals of audit and permitted non-audit services, provided that the decision of any such subcommittee shall be presented to the full Committee at its next scheduled meeting.

(v)        At least annually, the Committee shall review and evaluate the experience and qualifications of the lead partner and senior members of the independent auditor team.

(vi)        At least annually, the Committee shall obtain and review a report from the independent auditor regarding:

(A)        the independent auditor’s internal quality-control procedures;

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(B)        any material issues raised by the most recent internal quality-control review, or peer review, of the auditor, or by any inquiry or investigation by governmental or professional authorities within the preceding five years respecting one or more independent audits carried out by the firm;

(C)         any steps taken to deal with any such issues; and

(D)         all relationships between the independent auditor and the Company.

(vii)      At least annually, the Committee shall evaluate the qualifications, performance and independence of the independent auditor, including considering whether the auditor’s quality controls are adequate and the provision of permitted non-audit services is compatible with maintaining the auditor’s independence.

(viii)      The Committee shall ensure the rotation of the lead (or coordinating) audit partner having primary responsibility for the audit, the concurring partner responsible for reviewing the audit, and other audit partners as required by law.

(ix)        The Committee shall consider whether, in order to assure continuing auditor independence, it is appropriate to adopt a policy of rotating the independent auditing firm on a regular basis.

(x)        The Committee shall recommend to the Board policies for the Company’s hiring of employees or former employees of the independent auditor who were engaged on the Company’s account or participated in any capacity in the audit of the Company.

(xi)        The Committee shall oversee the implementation by management of appropriate information technology systems for the Company, including as required for proper financial reporting and compliance.

(b)          Financial Statement and Disclosure Review.

(i)        The Committee shall review and discuss with management and the independent auditor the annual audited financial statements, including disclosures made in management’s discussion and analysis, and recommend to the Board whether the audited financial statements should be filed with applicable securities regulatory authorities and included in the Company’s annual reports.

(ii)        The Committee shall review and discuss with management (and, to the extent the Committee deems it necessary or appropriate, the independent auditor) the Company’s quarterly financial statements, including disclosures made in management’s discussion and analysis, and recommend to the Board whether such financial statements should be filed with applicable securities regulatory authorities.

(iii)        The Committee shall review and discuss with management and the independent auditor significant financial reporting issues and judgments made in

- 3 -

connection with the preparation of the Company’s financial statements, including the independent auditor’s assessment of the quality of the Company’s accounting principles, any significant changes in the Company’s selection or application of accounting principles, any major issues as to the adequacy of the Company’s internal controls over financial reporting, and any special steps adopted in light of material control deficiencies.

(iv)        At least annually and prior to the publication of annual audited financial statements, the Committee shall review and discuss with management and the independent auditor a report from the independent auditor on:

(A)        all critical accounting policies and practices used by the Company;

(B)        all alternative accounting treatments of financial information that have been discussed with management since the prior report, ramifications of the use of such alternative disclosures and treatments, the treatment preferred by the independent auditor, and an explanation of why the independent auditor’s preferred method was not adopted; and.

(C)        other material written communications between the independent auditor and management since the prior report, such as any management letter or schedule of unadjusted differences, the development, selection and disclosure of critical accounting estimates, and analyses of the effect of alternative assumptions, estimates or GAAP methods on the Company’s financial statements.

(v)        Prior to their filing or issuance, the Committee shall review the Company’s Annual Information Form/Annual Report to the SEC, quarterly and annual earnings press releases, and other financial press releases, including the use of “pro forma” or “adjusted” non-GAAP information.

(vi)        The Committee shall review and discuss with management the financial information and earnings guidance provided to analysts and rating agencies. Such discussion may be specific or it may be in general regarding the types of information to be disclosed and the types of presentations to be made.

(c)          Conduct of the Annual Audit. The Committee shall oversee the annual audit, and in the course of such oversight the Committee shall have the following responsibilities and authority:

(i)        The Committee shall meet with the independent auditor prior to the audit to discuss the planning and conduct of the annual audit, and shall meet with the independent auditor as may be necessary or appropriate in connection with the audit.

(ii)        The Committee shall ascertain that the independent auditor is registered and in good standing with the Canadian Public Accounting Board and the Public Company Accounting Oversight Board (“PCAOB”) and that the independent auditor satisfies all applicable Canadian independence standards (Canadian Auditing Standard 200), PCAOB Rule 3526 and SEC Regulation S-X, Section 2-01. The Committee shall obtain from the auditor a written statement description

- 4 -

of all relationships between the auditor and the Company and persons in a financial reporting oversight role at the Company as per PCAOB Rule 3526, that may reasonably be thought to bear on independence.

(ii)      The Committee shall discuss with the independent auditor the matters required to be discussed by PCAOB Auditing Standard No. 16 and Canadian Auditing Standard 260 relating to the conduct of the audit.

(iii)      The Committee shall obtain from the independent auditor assurance that the audit was conducted in a manner consistent with Section 10A of the Securities Exchange Act of 1934 and that, in the course of conducting the audit, the independent auditor has not become aware of information indicating that an illegal act has or may have occurred or, if such an act may have occurred, that the independent auditor has taken all action required by Section 10A(b) of the Securities Exchange Act of 1934.

(iv)      The Committee shall make such inquiries to the management and the independent auditor as the Committee members deem necessary or appropriate to satisfy themselves regarding the efficacy of the Company’s financial and internal controls and procedures and the auditing process.

(d)          Compliance and Oversight.

(i)        The Committee shall meet periodically with management and the independent auditor in separate executive sessions. The Committee may also, to the extent it deems necessary or appropriate, meet with the Company’s investment bankers and financial analysts who follow the Company.

(ii)        The Committee shall discuss with management and the independent auditor the effect of regulatory and accounting initiatives as well as off-balance sheet structures on the Company’s financial statements.

(iii)        The Committee shall discuss with management the Company’s major financial risk exposures and the steps management has taken to monitor and control such exposures, including the Company’s risk assessment and risk management policies, and regularly review the top risks identified by management and the policies and practices adopted by the Company to mitigate those risks.

(iv)        At least annually and prior to the filing of the AIF/Annual Report to the SEC, the Committee shall review with management and the independent auditor the disclosure controls and procedures and confirm that the Company (with CEO and CFO participation) has evaluated the effectiveness of the design and operation of the controls within 90 days prior to the date of filing of the AIF/Annual Report to the SEC. The Committee also shall review with management and the independent auditor any deficiencies in the design and operation of internal controls and significant deficiencies or material weaknesses therein and any fraud involving management or other employees who have a significant role in the Company’s internal controls. As a part of that review, the Committee shall review the process followed in preparing and verifying the accuracy of the required CEO and CFO annual certifications.

- 5 -

(v)      At least annually and prior to the filing of the AIF/Annual Report to the SEC, the Committee shall review with management and the independent auditor management’s internal control report and assessment of the internal controls and procedures, and the independent auditor’s report on and assessment of the internal controls and procedures. In connection with its review of interim and annual financial statements and related management’s discussion and analysis, the Committee shall confirm with management that the Company (with CEO and CFO participation) has taken all actions required in connection with the certifications required by National Instrument NI 52-109, Certification of Disclosure in Issuers’ Annual and Interim Filings.

(vi)      The Committee shall establish procedures for the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls or auditing matters, and the confidential, anonymous submission by employees of concerns regarding questionable accounting or auditing matters.

(vii)      The Committee shall discuss with management and the independent auditor any correspondence with regulators or governmental agencies and any employee complaints or reports which raise material issues regarding the Company’s financial statements or accounting policies.

(viii)      At least annually, the Committee shall meet with the Company’s legal counsel and discuss any legal matters that may have a material impact on the financial statements or the Company’s compliance policies.

(ix)        The Committee shall oversee the preparation of reports relating to the Audit Committee required under applicable laws, regulations and stock exchange requirements.

(x)        The Committee shall exercise oversight with respect to anti-fraud programs and controls.

(e)          Related Party Transactions.

(i)        The Committee shall review for fairness to the Company proposed transactions, contracts and other arrangements between the Company and its subsidiaries and any related party or affiliate, and make recommendations to the Board whether any such transactions, contracts and other arrangements should be approved or continued. The foregoing shall not include any compensation payable pursuant to any plan, program, contract or arrangement subject to the authority of the Company’s Compensation Committee.

(ii)        As used herein the term “related party” means any officer or director of the Company or any subsidiary, or any shareholder holding a greater than 10% direct or indirect financial or voting interest in the Company, and the term “affiliate” means any person, whether acting alone or in concert with others, that controls, is controlled by or is under common control with another person. “Related party” includes Hunter Dickinson Services Inc., its principals, and their affiliates.

- 6 -

(f)         Additional duties. The Committee shall perform the following additional duties:

(i)        The Committee shall review and recommend dividend policies.

(ii)        The Committee shall oversee the Company’s insurance program and approve insurance policy limits.

(iii)       The Committee shall review the appointment of senior financial personnel and make recommendations to the Board of Directors regarding the appointment of the Chief Financial Officer.

(iv)       The Committee shall recommend to the Nominating and Governance Committee the qualifications and criteria for membership on the Committee.

(v)       The Committee shall review and discuss with management the requirement for annual public disclosure pursuant to the Extractive Sector Transparency Measures Act and shall be responsible for approving such disclosures.

2. Structure and Membership

(a)    Number and qualification. The Committee shall consist of three persons unless the Board should from time to time otherwise determine. All members of the Committee shall meet the experience and financial literacy requirements of National Instrument NI 52-110 and the rules of the Toronto Stock Exchange and the NYSE American. At least one member of the Committee shall be a “financial expert” as defined in Item 407 of SEC Regulation S-K.

(b)    Selection and Removal. Members of the Committee shall be appointed by the Board, upon the recommendation of the Nominating and Corporate Governance Committee. The Board may remove members of the Committee at any time with or without cause.

(c)    Independence. All of the members of the Committee shall be “independent” as required for audit committees by National Instrument NI 52-110, the rules of the Toronto Stock Exchange and the NYSE American, and SEC Rule 10A-3.

(d)    Chair. Unless the Board elects a Chair of the Committee, the Committee shall elect a Chair by majority vote.

(e)    Compensation. The compensation of the Committee shall be as determined by the Board.

(f)     Term. Members of the Committee shall be appointed for one-year terms. Each member shall serve until his or her replacement is appointed, or until he or she resigns or is removed from the Board or the Committee.

3. Procedures and Administration

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(a)        Meetings.    The Committee shall meet as often as it deems necessary in order to perform its responsibilities, but not less than quarterly. The Committee shall keep minutes of its meetings and any other records as it deems appropriate.

(b)        Subcommittees. The Committee may form and delegate authority to one or more subcommittees, consisting of at least one member, as it deems appropriate from time to time under the circumstances.

(c)        Reports to the Board.    The Committee shall regularly report to the Board with respect to such matters as are relevant to the Committee’s discharge of its responsibilities, and shall report in writing on request of the Chairman of the Board.

(d)        Charter.    The Committee shall, at least annually, review and reassess the adequacy of this Charter and recommend any proposed changes to the Board for approval.

(e)        Independent Advisors.    The Committee shall have the authority to engage such independent legal and other advisors as it deems necessary or appropriate to carry out its responsibilities. Such independent advisors may be regular advisors to the Company. The Committee is empowered, without further action by the Board, to cause the Company to pay appropriate compensation to advisors engaged by the Committee.

(f)        Investigations.    The Committee shall have the authority to conduct or authorize investigations into any matters within the scope of its responsibilities as it deems appropriate, including the authority to request any Officer or other person to meet with the Committee and to access all Company records.

(g)      Annual Self-Evaluation.    The Committee shall evaluate its own performance at least annually.

4. Additional Powers

The Committee shall have such other duties as may be delegated from time to time by the Board of Directors.

5. Limitation of Committee’s Role

While the Committee has the responsibilities and powers set forth in this Charter, it is not the duty of the Committee to plan or conduct audits or to determine that the Company’s financial statements and disclosures are complete and accurate and are in accordance with GAAP and applicable rules and regulations. These are the responsibilities of management and the independent auditor.

6. Committee Member Independence, Financial Literacy and Financial Expert Requirements

A. Independence

See Appendix 2 of the Company’s Corporate Governance Overview and Guidelines.

- 8 -

B. Financial Literacy and Financial Expert Requirements

NI 52-110

Section 3.1(4) states that each audit committee member must be financially literate.

Section 1.6 defines the meaning of financial literacy as follows:

“For the purposes of this Instrument, an individual is financially literate if he or she has the ability to read and understand a set of financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues that can reasonably be expected to be raised by the issuer’s financial statements.”

NYSE American Section 803(B)(2)(a)(iii)

Each issuer must have an Audit Committee of at least three members, each of whom:

“is able to read and understand fundamental financial statements, including a company’s balance sheet, income statement, and cash flow statement. Additionally, each issuer must certify that it has, and will continue to have, at least one member of the audit committee who is financially sophisticated, in that he or she has past employment experience in finance or accounting, requisite professional certification in accounting, or any other comparable experience or background which results in the individual’s financial sophistication, including but not limited to being or having been a chief executive officer, chief financial officer, other senior officer with financial oversight responsibilities. A director who qualifies as an audit committee financial expert under Item 407(d)(5)(ii) of Regulation S-K …. is presumed to qualify as financially sophisticated.”

ITEM 407(d)(5)(ii) OF REGULATION S-K, DEFINITION OF FINANCIAL EXPERT

For purposes of this Item, an audit committee financial expert means a person who has the following attributes:

(A) An understanding of generally accepted accounting principles and financial statements;

(B) The ability to assess the general application of such principles in connection with the accounting for estimates, accruals and reserves;

(C) Experience preparing, auditing, analyzing or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant’s financial statements, or experience actively supervising one or more persons engaged in such activities;

(D) An understanding of internal control over financial reporting; and

(E) An understanding of audit committee functions.

- 9 -

A person shall have acquired such attributes through:

(A) Education and experience as a principal financial officer, principal accounting officer, controller, public accountant or auditor or experience in one or more positions that involve the performance of similar functions;

(B) Experience actively supervising a principal financial officer, principal accounting officer, controller, public accountant, auditor or person performing similar functions;

(C) Experience overseeing or assessing the performance of companies or public accountants with respect to the preparation, auditing or evaluation of financial statements; or

(D) Other relevant experience.

EX-99.6

Exhibit 99.6

Consolidated Financial Statements

December 31, 2017 and 2016

MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL STATEMENTS

The consolidated financial statements, the notes thereto and other financial information contained in the Management’s Discussion and Analysis have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and are the responsibility of the management of Taseko Mines Limited. The financial information presented elsewhere in the Management’s Discussion and Analysis is consistent with the data that is contained in the consolidated financial statements. The consolidated financial statements, where necessary, include amounts which are based on the best estimates and judgment of management.

In order to discharge management’s responsibility for the integrity of the financial statements, the Company maintains a system of internal control over financial reporting. These controls are designed to provide reasonable assurance that the Company’s assets are safeguarded, transactions are executed and recorded in accordance with management’s authorization, proper records are maintained and relevant and reliable financial information is produced. These controls include maintaining quality standards in hiring and training of employees, establishing policies and procedures, a corporate code of conduct and ensuring that there is proper accountability for performance within appropriate and well-defined areas of responsibility.

The Board of Directors is responsible for overseeing management’s performance of its responsibilities for financial reporting and internal control over financial reporting. The Audit Committee, which is composed of non-executive directors, meets with management as well as the external auditors to ensure that management is properly fulfilling its financial reporting responsibilities to the Directors who approve the consolidated financial statements. The external auditors have full and unrestricted access to the Audit Committee to discuss the scope of their audits, the adequacy of the system of internal control over financial reporting and review financial reporting issues.

The consolidated financial statements have been audited by KPMG LLP, the Company’s independent registered public accounting firm, in accordance with Canadian generally accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United States).

Russell Hallbauer	Stuart McDonald
Chief Executive Officer	Chief Financial Officer

Vancouver, British Columbia

February 20, 2018

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

The Company’s management, including the Chief Executive Officer and the Chief Financial Officer, is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) and Rule 15d-15(f) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) as a process designed by, or under the supervision of, the Company’s principal executive and principal financial officers and effected by the Company’s Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with International Financial Reporting Standards. The Company’s internal control over financial reporting includes those policies and procedures that:

• pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

• provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

• 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 management, under the supervision of the Chief Executive Officer and the Chief Financial Officer, assessed the effectiveness of the Company’s internal control over financial reporting as defined in Rule 13a-15(f) and Rule 15d-15(f) under the Exchange Act as of December 31, 2017. In making this assessment, it used the criteria set forth in the Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this assessment, management has concluded that, as of December 31, 2017, the Company’s internal control over financial reporting is effective based on those criteria.

The effectiveness of the Company’s internal control over financial reporting as of December 31, 2017 has been audited by KPMG LLP, the Company’s independent registered public accounting firm, as stated in their report immediately preceding the Company’s audited consolidated financial statements for the years ended December 31, 2017 and 2016.

Russell Hallbauer	Stuart McDonald
Chief Executive Officer	Chief Financial Officer

Vancouver, British Columbia

February 20, 2018

	KPMG LLP	Telephone	(604) 691-3000
	Chartered Professional Accountants	Fax	(604) 691-3031
	PO Box 10426 777 Dunsmuir Street Vancouver BC V7Y 1K3 Canada	Internet	www.kpmg.ca

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors of Taseko Mines Limited

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated financial statements of Taseko Mines Limited (the “Company”), which comprise the consolidated balance sheets as at December 31, 2017 and December 31, 2016, the consolidated statements of comprehensive income (loss), changes in equity and cash flows for the years then ended, and the related notes, comprising a summary of significant accounting policies and other explanatory information (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as at December 31, 2017 and December 31, 2016, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Report on Internal Control Over Financial Reporting

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company’s internal control over financial reporting as of December 31, 2017, based on the criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 20, 2018 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Basis for Opinion

A – Management’s Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

B – Auditors’ Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement, whether due to error or fraud. Those standards also require that we comply with ethical requirements, including independence. We are required to be independent with respect to the Company in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We are a public accounting firm registered with the PCAOB.

An audit includes performing procedures to assess the risks of material misstatements of the consolidated financial statements, whether due to error or fraud, and performing procedures to respond to those risks. Such procedures included obtaining and examining, on a test basis, audit evidence regarding the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Company’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances.

An audit also includes evaluating the appropriateness of accounting policies and principles used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a reasonable basis for our audit opinion.

//s// KPMG LLP

We have served as the Company’s auditor since 1999.

Vancouver, Canada

February 20, 2018

2

	KPMG LLP	Telephone	(604) 691-3000
	Chartered Professional Accountants	Fax	(604) 691-3031
	PO Box 10426 777 Dunsmuir Street Vancouver BC V7Y 1K3 Canada	Internet	www.kpmg.ca

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors of Taseko Mines Limited

Opinion on Internal Control Over Financial Reporting

We have audited Taseko Mines Limited (the “Company”) internal control over financial reporting as of December 31, 2017, based on the criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017, based on the criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Report on the Consolidated Financial Statements

We also have audited, in accordance with Canadian generally accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Company, which comprise the consolidated balance sheets as at December 31, 2017 and December 31, 2016, the consolidated statements of comprehensive income (loss), changes in equity and cash flows for the years then ended, and the related notes, comprising a summary of significant accounting policies and other explanatory information (collectively referred to as the “consolidated financial statements”), and our report dated February 20, 2018 expressed an unmodified opinion on those consolidated financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB and in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s 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 generally accepted accounting principles, 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.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

//s// KPMG LLP

Chartered Professional Accountants

Vancouver, Canada

February 20, 2018

2

TASEKO MINES LIMITED

Consolidated Statements of Comprehensive Income (Loss)

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

			For the years ended December 31,
	Note		2017			2016
Revenues		4		378,299			263,865
Cost of sales		5
Production costs				(200,583	)		(209,150	)
Depletion and amortization				(47,722	)		(52,939	)
Earnings from mining operations				129,994			1,776
General and administrative				(12,775	)		(11,299	)
Share-based compensation		22		(6,983	)		(3,619	)
Exploration and evaluation				(1,730	)		(2,087	)
Loss on derivatives		7		(10,082	)		(6,360	)
Other income (expenses)		8		(6,341	)		(4,072	)
Income (loss) before financing costs and income taxes				92,083			(25,661	)
Finance expenses		9		(46,430	)		(30,007	)
Finance income				935			1,084
Foreign exchange gains				16,852			8,475
Income (loss) before income taxes				63,440			(46,109	)
Income tax (expense) recovery		10		(29,178	)		14,713
Net income (loss)				34,262			(31,396	)
Other comprehensive income (loss):
Unrealized loss on available-for-sale financial assets, before tax				(4,248	)		(32	)
Tax recovery				—			516
Foreign currency translation reserve				(7,720	)		(3,709	)
Total other comprehensive loss				(11,968	)		(3,225	)
Total comprehensive income (loss)				22,294			(34,621	)
Earnings (loss) per share
Basic				0.15			(0.14	)
Diluted				0.15			(0.14	)
Weighted average shares outstanding (thousands)
Basic				225,682			221,828
Diluted				232,039			221,828

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

TASEKO MINES LIMITED

Consolidated Statements of Cash Flows

(Cdn$ in thousands)

		For the years ended December 31,
	Note	2017			2016
Operating activities
Net income (loss) for the year			34,262			(31,396	)
Adjustments for:
Depletion and amortization			47,722			53,024
Income tax expense (recovery)	10		29,178			(14,713	)
Share-based compensation expense	22		7,100			3,682
Loss on derivatives	7		10,082			6,360
Finance expenses, net			45,495			28,923
Unrealized foreign exchange gains			(17,684	)		(7,785	)
Write-down of mine equipment			3,551			—
Deferred revenue deposit			44,151			—
Amortization of deferred revenue	18		(1,322	)		—
Deferred electricity payments (repayments)	16, 19		(6,174	)		10,938
Other operating activities			1,097			(469	)
Net change in non-cash working capital	24		13,621			(14,711	)
Cash provided by operating activities			211,079			33,853
Investing activities
Purchase of property, plant and equipment	14		(97,223	)		(18,843	)
Purchase of copper put options	7		(3,952	)		(3,777	)
Proceeds from copper put options	7		—			3,371
Investment in other financial assets			(1,395	)		—
Other investing activities			758			158
Cash used for investing activities			(101,812	)		(19,091	)
Financing activities
Net proceeds from issuance of senior secured notes	17a		317,596			—
Repayment of senior notes	17b		(264,180	)		—
Repayment of senior secured credit facility	17c		(92,463	)		—
Settlement of copper call option	17c		(15,745	)		—
Interest paid			(43,995	)		(22,668	)
Repayment of capital leases and equipment loans			(17,074	)		(16,586	)
Proceeds on exercise of options and warrants			2,928			22
Proceeds from senior secured credit facility	17b		—			93,605
Financing costs for senior secured credit facility	17c		—			(4,346	)
Repayment of Curis secured loan	17c		—			(43,767	)
Cash provided by (used for) financing activities			(112,933	)		6,260
Effect of exchange rate changes on cash and equivalents			(5,133	)		(513	)
Increase (decrease) in cash and equivalents			(8,799	)		20,509
Cash and equivalents, beginning of year			89,030			68,521
Cash and equivalents, end of year			80,231			89,030
Supplementary cash flow disclosures	24

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

TASEKO MINES LIMITED

Consolidated Balance Sheets

(Cdn$ in thousands)

		December 31,			December 31,
	Note	2017			2016
ASSETS
Current assets
Cash and equivalents			80,231			89,030
Accounts receivable	11		21,618			12,905
Other financial assets	12		2,774			1,574
Inventories	13		39,639			60,550
Prepaids			1,474			1,268
			145,736			165,327
Property, plant and equipment	14		797,265			730,208
Other financial assets	12		40,537			48,368
Goodwill	15		5,172			5,536
			988,710			949,439
LIABILITIES
Current liabilities
Accounts payable and other liabilities	16		47,382			33,416
Current income tax payable	10		302			889
Current portion of long-term debt	17		11,270			16,157
Current portion of deferred revenue	18		1,312			—
Interest payable on senior notes			1,143			4,336
			61,409			54,798
Long-term debt	17		317,948			373,133
Provision for environmental rehabilitation (“PER”)	20		107,874			98,454
Deferred and other tax liabilities	10		89,045			62,202
Deferred revenue	18		39,640			—
Other financial liabilities	19		5,714			21,913
			621,630			610,500
EQUITY
Share capital	21(a)		422,091			417,975
Contributed surplus	21(c), 22		47,478			45,747
Accumulated other comprehensive income (“AOCI”)	21d		389			12,357
Deficit			(102,878	)		(137,140	)
			367,080			338,939
			988,710			949,439
Commitments and contingencies	20, 23

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

TASEKO MINES LIMITED

Consolidated Statements of Changes in Equity

(Cdn$ in thousands)

	Share capital		Contributed surplus			AOCI			Deficit			Total
Balance at January 1, 2016		417,944		42,558			15,582			(105,744	)		370,340
Issuance of warrants		—		830			—			—			830
Share-based compensation		—		2,368			—			—			2,368
Exercise of options		31		(9	)								22
Total comprehensive loss for the year		—		—			(3,225	)		(31,396	)		(34,621	)
Balance at December 31, 2016		417,975		45,747			12,357			(137,140	)		338,939
Balance at January 1, 2017		417,975		45,747			12,357			(137,140	)		338,939
Issuance of warrants		—		1,876			—			—			1,876
Share-based compensation		—		2,919			—			—			2,919
Exercise of options and warrants		4,116		(1,188	)		—			—			2,928
Settlement of performance share units		—		(1,876	)		—			—			(1,876	)
Total comprehensive income (loss) for the year		—		—			(11,968	)		34,262			22,294
Balance at December 31, 2017		422,091		47,478			389			(102,878	)		367,080

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

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

1. REPORTING ENTITY

Taseko Mines Limited (the “Company” or “Taseko”) is a corporation governed by the British Columbia Business Corporations Act. The consolidated financial statements of the Company as at and for the year ended December 31, 2017 comprise the Company, its subsidiaries and its 75% interest in the Gibraltar joint venture since its formation on March 31, 2010. The Company is principally engaged in the production and sale of metals, as well as related activities including exploration and mine development, within the province of British Columbia, Canada and the State of Arizona, USA. Seasonality does not have a significant impact on the Company’s operations.

2. BASIS OF PREPARATION

2.1 Statement of compliance

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

These consolidated financial statements were authorized for issue by the Board of Directors on February 20, 2018.

2.2 Basis of measurement, judgment and estimation

These consolidated financial statements have been prepared on a historical cost basis except for fair-value-through-profit-or-loss, available-for-sale and derivative financial instruments, which are measured at fair value.

These consolidated financial statements are presented in Canadian dollars, which is the Company’s functional currency. Foreign currency monetary assets and liabilities are translated into Canadian dollars at the closing exchange rate as at the balance sheet date. Foreign currency non-monetary assets and liabilities, revenues and expenses are translated into Canadian dollars at the prevailing rate of exchange on the dates of the transactions. Any gains and losses are included in profit and loss. The Company’s US subsidiary measures the items in its financial statements using the US dollar as its functional currency. The assets and liabilities of the US subsidiary are translated into Canadian dollars using the period end exchange rate. The income and expenses are translated into Canadian dollars at the weighted average exchange rates to the period end reporting date. Any gains and losses on translation are included in accumulated other comprehensive income (“AOCI”). All financial information presented in Canadian dollars has been rounded to the nearest thousand, unless otherwise noted.

The preparation of these consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies 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 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; finished and in-process inventory quantities; plant and equipment lives; tax provisions; provisions for environmental rehabilitation; valuation of financial instruments and derivatives; deferred 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.

1

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

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.

2.3 Basis of consolidation

The consolidated financial statements comprise the financial statements of the Company and controlled entities as at December 31, 2017. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of comprehensive income (loss) from the date the Company gains control until the date the Company ceases to control the subsidiary. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Company’s accounting policies. All intercompany assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Company are eliminated in full on consolidation.

The Company applies the acquisition method in accounting for business combinations. The consideration transferred by the Company to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities incurred and the equity interests issued by the Company, which includes the fair value of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred.

The Company recognizes identifiable assets acquired and liabilities assumed in a business combination regardless of whether they have been previously recognized in the acquiree’s financial statements prior to the acquisition. Assets acquired and liabilities assumed are generally measured at their acquisition-date fair values.

Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated as the excess of the sum of a) fair value of consideration transferred, b) the recognized amount of any non-controlling interest in the acquiree and c) acquisition-date fair value of any existing equity interest in the acquiree, over the acquisition-date fair values of identifiable net assets. If the fair values of identifiable net assets exceed the sum calculated above, the excess amount would be recognized in profit or loss immediately.

2.4 Significant Accounting Policies

(a) Revenue recognition

Revenue is recognized when the significant risks and rewards of ownership have been transferred and the amount of revenue is reasonably determinable. These conditions are generally satisfied when title passes to the customer. Cash received in advance of meeting these conditions is recorded as deferred revenue.

2

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

Under the terms of the Company’s concentrate and cathode sales contracts, the final sales amount is based on final assay results and quoted market prices which may be in a period subsequent to the date of sale. Revenues for these sales, net of treatment and refining charges are recorded at the time of shipment, which is also when the risks and rewards of ownership transfer to the customer, based on an estimate of metal contained using initial assay results and forward market prices on the expected date that final sales prices will be fixed. The period between provisional pricing and final settlement can be up to four months. This provisional pricing mechanism represents an embedded derivative. The embedded derivative is recorded at fair value each reporting period by reference to forward market prices until the date of final pricing, with the changes in fair value recorded as an adjustment to revenue.

(b) Cash and equivalents

Cash and equivalents consist of cash and highly-liquid investments having terms of three months or less from the date of acquisition and that are readily convertible to known amounts of cash. Cash and equivalents exclude cash subject to restrictions.

(c) Financial instruments

Financial assets and liabilities are recognized on the balance sheet when the Company becomes party to the contractual provisions of the instrument. The classification of financial instruments dictates how these assets and liabilities are measured subsequently in the Company’s consolidated financial statements.

Financial instruments at fair value through profit or loss (FVTPL)

Financial instruments are classified as FVTPL when they are held for trading. A financial instrument is held for trading if it was acquired for the purpose of selling in the near term. Derivative financial instruments that are not designated and effective as hedging instruments are classified as FVTPL. Financial instruments classified as FVTPL are stated at fair value with any changes in fair value recognized in earnings for the period. Financial assets in this category include derivative financial instruments that the Company acquires to manage exposure to commodity price fluctuations. These instruments are non-hedge derivative instruments.

Loans and receivables

Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Subsequent to initial recognition, these financial assets are recorded at amortized cost using the effective interest method, except for short-term receivables when the recognition of interest would be immaterial. Accounts receivable are assessed for evidence of impairment at each reporting date, with any impairment recognized in earnings for the period. Financial assets in this category include cash and equivalents and accounts receivable.

Available-for-sale financial assets

Marketable securities, subscription receipts and reclamation deposits are designated as available-for-sale and recorded at fair value. Unrealized gains and losses are recognized in other comprehensive income until the securities are disposed of or when there is evidence of impairment in value. Impairment is evident when there has been a significant or sustained decline in the fair value of the marketable securities. If an impairment in value has been determined, it is recognized in earnings for the period.

Financial liabilities

Financial liabilities are initially recorded at fair value, net of transaction costs, and are subsequently measured at amortized cost using the effective interest method. The Company has accounted for accounts payable and accrued liabilities and long-term debt under this method.

3

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

Fair value measurement

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).

(d) Exploration and evaluation

Exploration and evaluation expenditures relate to the initial search for a mineral deposit and the subsequent evaluation to determine the economic potential of the mineral deposit. The exploration and evaluation stage commences when the Company obtains the legal right or license to begin exploration. Exploration and evaluation expenditures are recognized in earnings in the period in which they are incurred.

Capitalization of development costs as mineral property, plant and equipment commences once the technical feasibility and commercial viability of the extraction of mineral reserve and resources associated with the Company’s evaluation properties are established and management has made a decision to proceed with development.

(e) Inventories

Inventories are valued at the lower of cost and net realizable value. Cost is determined on a weighted average basis and includes direct labour and materials; non-capitalized stripping costs; depreciation and amortization; freight; and overhead costs. Net realizable value is determined with reference to relevant market prices, less applicable variable selling costs and estimated remaining costs of completion to bring the inventories into saleable form.

Ore stockpiles represent stockpiled ore and metals in the processing circuits that have not yet completed the production process, and are not yet in a saleable form. Finished goods inventories represent metals in saleable form that have not yet been sold. Materials and supplies inventories represent consumables used in the production process, as well as spare parts and other maintenance supplies that are not classified as capital items.

The quantity of recoverable metal in stockpiled ore and in the processing circuits is an estimate which is based on the tons of ore added and removed, expected grade and recovery. The quantity of recoverable metal in concentrate is an estimate using initial assay results.

(f) Property, plant and equipment

Land, buildings, plant and equipment

Land, buildings, plant and equipment are recorded at cost, including all expenditures incurred to prepare an asset for its intended use.

4

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

Repairs and maintenance costs are charged to expense as incurred, except when these repairs significantly extend the life of an asset or result in an operating improvement. In these instances, the portion of these repairs relating to the betterment is capitalized as part of plant and equipment.

Depreciation is based on the cost of the asset less residual value. Where an item of plant and equipment is comprised of major components with different useful lives, the components are accounted for as separate items and depreciated separately. Depreciation commences when an asset is available for use. Estimates of remaining useful lives and residual values are reviewed annually. Changes in estimates are accounted for prospectively.

The depreciation rates of the major asset categories are as follows:

Land	Not depreciated
Buildings	Straight-line basis over 10-25 years
Plant and equipment	Units-of-production basis
Mining equipment	Straight-line basis over 5-20 years
Light vehicles and other mobile equipment	Straight-line basis over 2-5 years
Furniture, computer and office equipment	Straight-line basis over 2-3 years

Mineral properties

Mineral properties consist of the cost of acquiring and developing mineral properties. Once in production, mineral properties are amortized on a units-of-production basis over the component of the ore body to which the capitalized costs relate.

Property acquisition costs arise either as an individual asset purchase or as part of a business combination, and may represent a combination of either proven and probable reserves, resources, or future exploration potential. When management has not made a determination that technical feasibility and commercial viability of extracting a mineral resource are demonstrable, the entire amount is considered property acquisition costs and not amortized. When such property moves into development, the property acquisition cost asset is transferred to mineral properties within property, plant and equipment.

Mineral property development costs include: stripping costs incurred in order to provide initial access to the ore body; stripping costs incurred during production that generate a future economic benefit by increasing the productive capacity, extending the productive life of the mine or allowing access to a mineable reserve; capitalized project development costs; and capitalized interest.

Construction in progress

Construction in progress includes the purchase price and any costs directly attributable to bringing the asset to the location and condition necessary for its intended use. Construction in progress includes advances on long-lead items. Construction in progress is not depreciated. Once the asset is complete and available for use, the costs of construction are transferred to the appropriate category of property, plant and equipment, and depreciation commences.

Capitalized interest

Interest is capitalized for qualifying assets. Qualifying assets are assets that require a substantial period of time to prepare for their intended use. Capitalization ceases when the asset is substantially complete or if construction is interrupted for an extended period. Where the funds used to finance a project form part of general borrowings, the amount capitalized is calculated using a weighted average of rates applicable to relevant general borrowings of the Company during the period.

5

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

Leased assets

Leased assets in which the Company receives substantially all the risks and rewards of ownership of the asset are capitalized as finance leases at the lower of the fair value of the asset or the estimated present value of the minimum lease payments. The corresponding lease obligation is recorded within debt on the balance sheet. Assets under operating leases are not capitalized and rental payments are expensed on a straight-line basis.

Impairment

The carrying amounts of the Company’s non-financial assets are reviewed for impairment whenever circumstances suggest that the carrying value may not be recoverable. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. These assessments require the use of estimates and assumptions such as long-term commodity prices, discount rates, future capital requirements, exploration potential and operating performance.

The recoverable amount of an asset or cash generating unit (CGU) is the higher of fair value less costs to sell and value in use. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s-length transaction between knowledgeable and willing parties. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows that are largely independent of the cash flows of other assets or CGU’s. If the recoverable amount of an asset or its related CGU is estimated to be less than its carrying amount, the carrying amount of the asset or CGU is reduced to its recoverable amount and the impairment loss is recognized in earnings for the period.

Where an impairment loss subsequently reverses, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount, but not to an amount that exceeds the carrying amount that would have been determined had no impairment loss been recognized for the asset or CGU in prior years. A reversal of an impairment loss is recognized immediately in earnings.

(g) Income taxes

Income tax on the earnings for the periods presented comprises current and deferred tax. Income tax is recognized in earnings except to the extent that it relates to items recognized directly in equity or in other comprehensive income. Income tax is calculated using tax rates enacted or substantively enacted at the reporting date applicable to the period of expected realization or settlement.

Current tax expense is the expected tax payable on the taxable income for the year, adjusted for amendments to tax payable with regards to previous years.

Deferred tax is determined using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: the initial recognition of assets or liabilities acquired (not in a business combination) that affect neither accounting nor taxable profit on acquisition; and differences relating to investments in subsidiaries, associates, and joint ventures to the extent that they are not probable to reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent it is no longer probable that the related tax benefit will be realized.

6

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

(h) Share-based compensation

The fair-value method is used for the Company’s share-based payment transactions. Under this method, the cost of share options and equity-settled performance share units is recorded based on their estimated fair value at the grant date, including an estimate of the forfeiture rate. The fair value of the share options and performance share units is expensed on a graded amortization basis over the vesting period of the awards, with a corresponding increase in equity.

Share-based compensation expense relating to cash-settled awards, including deferred share units, is recognized based on the quoted market value of the Company’s common shares on the date of grant. The related liability is re-measured to fair value each reporting period to reflect changes in the market value of the Company’s common shares, with changes in fair value recorded in net profit (loss).

(i) Provisions

Environmental rehabilitation

The Company records the present value of estimated costs of legal and constructive obligations required to retire an asset in the period in which the obligation occurs. Environmental rehabilitation activities include facility decommissioning and dismantling; removal and treatment of waste materials; site and land rehabilitation, including compliance with and monitoring of environmental regulations; and related costs required to perform this work and/or operate equipment designed to reduce or eliminate environmental effects. The provision for environmental rehabilitation (“PER”) is adjusted each period for new disturbances, and changes in regulatory requirements, the estimated amount of future cash flows required to discharge the liability, the timing of such cash flows and the pre-tax discount rate specific to the liability. The unwinding of the discount is recognized in earnings as a finance cost.

When a PER is initially recognized, the corresponding cost is capitalized by increasing the carrying amount of the related asset, and is amortized to earnings on a unit-of-production basis. Costs are only capitalized to the extent that the amount meets the definition of an asset and represents future economic benefits to the operation.

Significant estimates and assumptions are made in determining the provision for environmental rehabilitation as there are numerous factors that will affect the ultimate liability payable. These factors include estimation of the extent and cost of rehabilitation activities; timing of future cash flows that are impacted by changes in discount rates; inflation rate; and regulatory requirements.

Other provisions

Other provisions are recognized when the Company has a present obligation (legal or constructive) that has arisen as a result of a past event and it is probable that a future outflow of resources will be required to settle the obligation, provided that a reliable estimate can be made of the amount of the obligation. Where the effect is material, the provision is discounted using a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the obligation. The accretion expense is included in finance expense.

(j) Finance income and expenses

Finance income comprises interest income on funds invested, gains on the disposal of marketable securities, and changes in the fair value of derivatives included in cash and equivalents and marketable securities. Interest income is recognized as it accrues in earnings, using the effective interest method. Finance expenses comprise interest expense on borrowings, unwinding of the discount on provisions, losses on the disposal of marketable securities, changes in the fair value of derivatives included in cash and equivalents and marketable securities, and impairment losses recognized on financial assets. Borrowing costs that are not directly attributable to the

7

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

acquisition, construction or production of a qualifying asset are recognized in earnings using the effective interest method.

(k) Earnings (loss) per share

The Company presents basic and diluted earnings (loss) per share data for its common shares, calculated by dividing the earnings (loss) attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined by adjusting the earnings attributable to common shareholders and the weighted average number of common shares outstanding for the effects of all dilutive potential common shares, which comprise warrants and share options granted. There is no dilution impact when the Company incurs a loss.

(l) Interests in joint arrangements

IFRS defines a joint arrangement as one over which two or more parties have joint control, which is the contractually agreed sharing of control over an arrangement. This exists only when the decisions about the relevant activities (being those that significantly affect the returns of the arrangement) require the unanimous consent of the parties sharing control.

A joint operation is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities, relating to the arrangement. In relation to its interests in joint operations, the Company recognizes its:

• Assets, including its share of any assets held jointly;

• Liabilities, including its share of any liabilities incurred jointly;

• Revenue from the sale of its share of the output arising from the joint operation; and

• Expenses, including its share of any expenses incurred jointly.

2.6 New accounting standards

The Company has not applied the following revised or new IFRS that have been issued but were not yet effective at December 31, 2017:

• In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments to replace IAS 39, Financial Instruments: Recognition and Measurement. IFRS 9 includes requirements for recognition and measurement of financial instruments, a forward-looking “expected credit loss” impairment model and significant changes to general hedge accounting. IFRS 9 is effective for annual periods beginning on or after January 1, 2018, with early adoption permitted. The Company has completed its preliminary assessment and believes that the adoption of IFRS 9 will result in changes to the classification of certain financial assets but will not change the classification of any financial liabilities. The Company plans to adopt IFRS 9 in its financial statements for the annual period beginning January 1, 2018 and continues to evaluate its measurement and disclosure requirements related to the new standard.

• In May 2014, the IASB issued IFRS 15 Revenue from Contracts with Customers. The standard is effective for annual periods beginning on or after January 1, 2018 with early adoption permitted. The standard contains a single five-step model that applies to contracts with customers and two approaches to recognizing revenue: at a point in time, when control of the goods or services is transferred to the customer; or over time, in a manner that best reflects the entity’s performance. New estimates and judgmental thresholds have been introduced, which may affect the amount and/or timing of revenue recognized. The Company is currently evaluating the potential impact of applying IFRS 15, primarily analyzing its concentrate sales agreements with customers and its silver stream purchase and sale agreement. The Company plans to adopt IFRS 15 in its financial statements for the annual period

8

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

beginning on January 1, 2018 and continues to evaluate its measurement and disclosure requirements related to the new standard.

• In January 2016, the IASB issued IFRS 16 Leases. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, i.e. the customer (‘lessee’) and the supplier (‘lessor’). IFRS 16 is effective for annual periods beginning on or after January 1, 2019. A company can choose to apply IFRS 16 before that date but only if it also applies IFRS 15 Revenue from Contracts with Customers. Upon adoption of IFRS 16, the Company anticipates it will record a material balance of lease assets and associated lease liabilities related to leases on the Consolidated Balance Sheet at January 1, 2019. The Company plans to apply IFRS 16 at the date it becomes effective and has not yet quantified the impact of this standard on its consolidated financial statements.

3. INTEREST IN GIBRALTAR JOINT VENTURE

On March 31, 2010, the Company entered into an agreement with Cariboo Copper Corp. (Cariboo) whereby the Company contributed certain assets and liabilities of the Gibraltar mine, operating in British Columbia, into an unincorporated joint venture to acquire a 75% interest in the joint venture. Cariboo contributed $186,800 to purchase the remaining 25% interest.

The assets and liabilities contributed by the Company to the joint venture were mineral property interests, plant and equipment, inventories, prepaid expenses, reclamation deposits, capital lease obligations, and site closure and reclamation obligations. Certain key strategic, operating, investing and financing policies of the joint venture require unanimous approval such that neither venturer is in a position to exercise unilateral control over the joint venture. The Company continues to be the operator of the Gibraltar Mine.

The Company has joint control over the joint arrangement and as such consolidates its 75% portion of all the joint venture’s assets, liabilities, income and expenses.

9

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

The following is a summary of the Gibraltar joint venture financial information on a 100% basis.

	As at December 31,
	2017			2016
Cash and equivalents		52,383			79,638
Other current assets		83,323			98,233
Current assets		135,706			177,871
Non-current assets		1,167,787			1,106,866
Accounts payable and accrued liabilities		53,312			38,747
Other current financial liabilities		15,865			23,743
Current liabilities		69,177			62,490
Long-term debt		21,151			20,287
Provision for environmental rehabilitation		142,164			129,487
Other financial liability		—			14,584
Non-current liabilities		163,315			164,358
	Years ended December 31,
	2017			2016
Revenues		507,212			351,820
Production costs		(267,548	)		(278,440	)
Depletion and amortization		(75,428	)		(81,715	)
Other operating expense		(4,632	)		(3,725	)
Write-down of mine equipment		(4,735	)		—
Interest expense		(5,927	)		(6,459	)
Interest income		343			1,158
Foreign exchange gain (loss)		(907	)		22
Net earnings (loss)		148,378			(17,339	)
Other comprehensive income (loss)		90			(693	)
Comprehensive income (loss) for joint arrangement		148,468			(18,032	)

4. REVENUE

	Years ended December 31,
	2017			2016
Copper contained in concentrate		387,356			283,401
Molybdenum concentrate		21,807			5,900
Silver		2,132			3,988
Total gross revenue		411,295			293,289
Less: Treatment and refining costs		(32,996	)		(29,424	)
Revenue		378,299			263,865

10

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

5. COST OF SALES

	Years ended December 31,
	2017		2016
Site operating costs		167,338		209,381
Transportation costs		19,281		16,507
Changes in inventories of finished goods and ore stockpiles		13,964		(16,738	)
Production costs		200,583		209,150
Depletion and amortization		47,722		52,939
Cost of sales		248,305		262,089

Cost of sales consists of site operating costs (which include personnel costs, mine site supervisory costs, non-capitalized stripping costs, repair and maintenance costs, consumables, operating supplies and external services), transportation costs, and depletion and amortization.

6. COMPENSATION EXPENSE

	Years ended December 31,
	2017		2016
Wages, salaries and benefits		61,998		57,987
Post-employment benefits		1,491		1,309
Share-based compensation		7,100		3,682
		70,589		62,978

Compensation expense is presented as a component of cost of sales, general and administrative expense, and exploration and evaluation expense.

7. DERIVATIVE INSTRUMENTS

During the year ended December 31, 2017, the Company purchased copper put option contracts for 75 million pounds of copper with maturity dates ranging from the second quarter of 2017 to the second quarter of 2018, at strike prices ranging between US$2.40 and US$2.80 per pound, at a total cost of $3,952. Details of the options outstanding at December 31, 2017 and 2016 are summarized in the following table:

	Notional amount		Strike price		Maturity Date		Fair value asset
At December 31, 2017
Commodity contracts
Copper put option contracts		15 million lbs		US$2.70/lb		Q1 2018		13
Copper put option contracts		15 million lbs		US$2.80/lb		Q2 2018		317
At December 31, 2016
Commodity contracts
Copper put option contracts		20 million lbs		US$2.10/lb and US$2.20/lb		Q1 2017		155

11

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

The following table outlines the losses associated with derivative instruments:

	Years ended December 31,
	2017		2016
Realized loss on copper put options		1,807		1,956
Unrealized loss on copper put options		1,970		1,044
Change in fair value of copper call option (Note 17e)		6,305		3,360
		10,082		6,360

In June 2017, the Company settled the copper call option obligation with a payment of $15,745 to the senior secured credit facility lender (see Note 17e).

8. OTHER EXPENSES (INCOME)

	Years ended December 31,
	2017			2016
Write-down of mine equipment		3,551			—
Write-down of investment (Note 12)		3,850			—
Management fee income		(1,168	)		(1,043	)
Special shareholder meeting costs		—			4,894
Other financing costs		—			616
Other operating expense (income), net		108			(395	)
		6,341			4,072

9. FINANCE EXPENSES

	Years ended December 31,
	2017		2016
Interest expense		30,965		27,649
Accretion on PER (Note 20)		2,363		2,358
Loss on settlement of long-term debt		13,102		—
		46,430		30,007

As part of a refinancing completed in June 2017, the Company redeemed its US$200 million senior notes and repaid its US$70 million senior secured credit facility (see Note 17). The settlement of long-term debt resulted in a loss of $13,102, which includes a write-off of $9,203 of deferred financing costs relating to the settled debt and additional interest costs of $3,899 which were paid in lieu of notice to the noteholders and senior secured lender.

12

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

10. INCOME TAX

(a) Income tax expense (recovery)

	Years ended December 31,
	2017		2016
Current income tax:
Current period expense		1,801		836
Deferred income tax:
Origination and reversal of temporary differences		24,735		(15,307	)
Deferred tax adjustments related to prior periods		2,642		(242	)
		27,377		(15,549	)
Income tax expense (recovery)		29,178		(14,713	)

(b) Effective tax rate reconciliation

	Years ended December 31,
	2017			2016
Income tax at Canadian statutory rate of 35.62% (2016: 35.62%)		22,597			(16,424	)
Permanent differences		4,914			1,979
Tax rate differences		1,192			1,118
Foreign tax rate differential		22			(103	)
Unrecognized tax benefits		(2,206	)		(1,072	)
Deferred tax adjustments related to prior periods		2,642			(242	)
Other		17			31
Income tax expense (recovery)		29,178			(14,713	)

(c) Deferred tax assets and liabilities

Deferred tax assets and liabilities are attributable to the following:

	As at December 31,
	2017			2016
Property, plant and equipment		(175,502	)		(151,230	)
Other financial assets		2,884			316
Provisions		19,378			17,926
Tax loss carry forwards		64,195			71,051
Deferred tax liability		(89,045	)		(61,937	)

Tax loss carry forwards relate to non-capital losses in Canada of pre-tax $187,318 (2016: $194,929) which expire between 2027 and 2037 and net operating losses in the United States of pre-tax $65,555 (2016: $56,273), which expire between 2027 and 2037.

13

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

(d) Unrecognized deferred tax assets and liabilities

	As at December 31,
	2017		2016
Deductible temporary differences:
Debt		70,529		76,031
Other investments		34,873		34,840
Other financial assets		19,705		11,620
Deferred tax asset:
Debt		7,385		9,880
Other investments		4,708		4,529
Other financial assets		3,073		1,900

Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the Company can utilize the benefits. There are no unrecognized tax liabilities.

11. ACCOUNTS RECEIVABLE

	As at December 31,
	2017		2016
Trade receivables		19,341		9,463
Other receivables due from joint venture partner		210		162
Goods and services tax receivable		1,094		988
Other receivables		973		2,292
		21,618		12,905

12. OTHER FINANCIAL ASSETS

	As at December 31,
	2017		2016
Current:
Marketable securities		2,444		1,419
Copper put option contracts (Note 7)		330		155
		2,774		1,574
Long-term:
Investment in subscription receipts		2,400		10,333
Reclamation deposits (Note 20)		30,637		30,535
Restricted cash (Note 20)		7,500		7,500
		40,537		48,368

The Company holds strategic investments in publicly traded and privately owned companies, which are classified as available for sale investments. As at December 31, 2017 these investments included marketable securities as well as subscription receipts. The subscription receipts relate to an investment in a privately held company with two directors in common, and are to be convertible into units comprised of shares, or shares and warrants (Note 26c).

14

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

The fair value of the marketable securities is based upon public market information and the Company reviews the value of its investments for evidence of impairment based on both quantitative and qualitative criteria. For the years ended December 31, 2017 and 2016, unrealized gains and losses from the mark-to-market of marketable securities and reclamation deposits have been recorded in other comprehensive income (loss).

In the fourth quarter of 2017, the Company assessed the value of its investment in subscription receipts of a private mineral exploration and development company and recorded a write-down of the investment to its estimated fair value. A write-down of $3,850 was recorded in the statement of income, and an unrealized loss of $4,083 was recorded in other comprehensive income.

13. INVENTORIES

	As at December 31,
	2017		2016
Ore stockpiles		9,332		28,186
Copper contained in concentrate		5,933		5,741
Molybdenum concentrate		217		106
Materials and supplies		24,157		26,517
		39,639		60,550

During the year ended December 31, 2017, the Company recorded a net reversal of previous impairments of $4,639 (2016: net impairment of $17,202), to adjust the carrying value of ore stockpiles to net realizable value. These adjustments were included in cost of sales as a change in inventory of ore stockpile.

15

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

14. PROPERTY, PLANT & EQUIPMENT

	Property Acquisition costs			Mineral properties			Plant and equipment			Construction in Progress			Total
Cost
At January 1, 2016		101,226			244,289			655,440			747			1,001,702
Additions		—			17,404			—			2,394			19,798
Rehabilitation cost asset		—			(27,870	)		—			—			(27,870	)
Capitalized interest 1		—			5,219			—			—			5,219
Disposals		—			—			(838	)		—			(838	)
Foreign exchange translation		(2,822	)		(214	)		(150	)		—			(3,186	)
Transfers between categories		—			—			1,683			(1,683	)		—
At December 31, 2016		98,404			238,828			656,135			1,458			994,825
Additions		—			84,641			10,696			21,030			116,367
Rehabilitation cost asset		—			8,350			—			—			8,350
Capitalized interest 1		—			2,602			—			—			2,602
Disposals		—			—			(6,924	)		—			(6,924	)
Foreign exchange translation		(6,026	)		(783	)		(315	)		—			(7,124	)
Transfers between categories		—			—			19,760			(19,760	)		—
At December 31, 2017		92,378			333,638			679,352			2,728			1,108,096
Accumulated depreciation
At January 1, 2016		—			67,581			139,363			—			206,944
Depreciation2		—			29,076			28,743			—			57,819
Disposals		—			—			(146	)		—			(146	)
At December 31, 2016		—			96,657			167,960			—			264,617
Depreciation2		—			20,033			29,472						49,505
Impairment		—			—			3,551			—			3,551
Disposals		—			—			(6,842	)		—			(6,842	)
At December 31, 2017		—			116,690			194,141			—			310,831
Net book value
At December 31, 2016		98,404			142,171			488,175			1,458			730,208
At December 31, 2017		92,378			216,948			485,211			2,728			797,265

¹  Interest related to the Florence Copper Project was capitalized until June 2017 at an annual rate of 11% (2016: 11%).

²  Depreciation included in cost of sales for 2017 and 2016 of $47,722 and $52,939 respectively.

(a) Capital expenditures

During 2017, the Company capitalized stripping costs of $75,408 (2016: $10,065) and incurred other capital expenditures for Gibraltar of $10,728 (2016: $3,932). In addition, the Company capitalized development costs of $15,245 (2016: $4,961) for the Florence Copper and $1,713 (2016: $840) for the Aley Niobium projects. Non-cash additions to property, plant and equipment include $13,059 for the acquisition of mining equipment under capital leases and $6,371 of depreciation on mining assets related to capitalized stripping.

The rehabilitation cost asset increased by $8,350 for the year ended December 31, 2017, as a result of changes in estimates during the period including an increase in estimated costs and changes in the discount rate.

16

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

(b) Leased assets

The Company leases mining equipment under a number of capital lease agreements. Most of these leases provide the Company with the option to purchase the equipment at a beneficial price. Certain rents are based on an annual average usage for the applicable equipment and, if at the end of the term (unless the equipment has been purchased by the Company), the actual annual average usage of such equipment has been greater than the specified usage, the Company must pay an additional amount for each excess hour of actual usage. The leased assets secure the lease obligations (Note 17). At December 31, 2017, the net carrying amount of leased assets was $51,918 (2016: $53,476).

(c) Property acquisition costs

Property acquisition costs are comprised of the Aley Niobium property $5,436, Florence Copper Project $86,940, New Prosperity gold-copper property $1 and Harmony gold property $1. The carrying amounts for the New Prosperity and Harmony properties are the original property acquisition costs less historical impairments.

15. GOODWILL

Goodwill was recorded on the Company’s acquisition of Curis Resources Ltd. (“Curis”) in 2014. Curis is a mineral exploration and development company whose principal asset is the Florence Copper Project, an in-situ copper recovery and solvent extraction/electrowinning project located in central Arizona, USA. As at December 31, 2017, the carrying value of the goodwill decreased to $5,172 as a result of foreign currency translation.

16. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

	As at December 31,
	2017		2016
Trade payables		23,879		28,180
Accrued liabilities		18,692		4,012
Amounts payable to BC Hydro		4,764		—
Advance payments		—		1,163
Payables to related parties (Note 26c)		47		61
		47,382		33,416

The amounts payable to BC Hydro represent the remaining balance owing under BC Hydro’s five-year power rate deferral program for BC mines. During the year ended December 31, 2017, the Company made net repayments of $6,174 to BC Hydro and based on recent copper prices the remaining balance is expected to be repaid in 2018. Under the program, effective March 1, 2016, the Gibraltar Mine was able to defer up to 75% of electricity costs. The amount of the deferral was based on a formula that incorporates the average copper price in Canadian dollars during the preceding month. The deferred amount, plus interest at the prime rate plus 5%, is repayable on a monthly schedule of up to 75% of the monthly electricity billing, when the average copper price during the preceding month exceeds a threshold amount of $3.40 per pound. Any remaining deferred balance would be repayable at the end of the five year term.

17

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

17. DEBT

	As at December 31,
	2017		2016
Current:
Capital leases (b)		9,651		8,059
Secured equipment loans (c)		1,619		8,098
		11,270		16,157
Long-term:
Senior secured notes (a)		302,085		—
Capital leases (b)		14,110		11,917
Secured equipment loans (c)		1,753		3,298
Senior notes (d)		—		266,435
Senior secured credit facility (e)		—		91,483
		317,948		373,133

(a) Senior secured notes

In June 2017, the Company completed an offering of US$250,000 aggregate principal amount of senior secured notes (“the Notes”). The Notes mature on June 15, 2022 and bear interest at an annual rate of 8.750%, payable semi-annually on June 15 and December 15, commencing December 15, 2017. The Notes were issued at 99% of par value and the Company incurred other transaction costs of $9,326 resulting in net proceeds from the offering of $317,596 (US$240,468). The net proceeds were used, along with cash on hand, to redeem the senior notes (Note 17d) and to repay the senior secured credit facility and to settle the related copper call option (Note 17e).

The 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. The Notes are guaranteed by each of Taseko’s existing and future restricted subsidiaries, other than certain immaterial subsidiaries. The Company is able to incur limited amounts of additional secured and unsecured debt under certain conditions as defined in 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 Notes at any time on or after June 15, 2019, at redemption prices ranging from 104.375% to 100%, plus accrued and unpaid interest to the date of redemption. Prior to June 15, 2019, all or part of the notes may be redeemed at 100%, plus a make-whole premium, plus accrued and unpaid interest to the date of redemption. In addition, until June 15, 2019, the Company may redeem up to 35% of the aggregate principal amount of the notes, in an amount not greater than the net proceeds of certain equity offerings, at a redemption price of 108.750%, plus accrued and unpaid interest to the date of redemption. On a change of control, the Notes are redeemable at the option of the holder at a price of 101%.

(b) Capital leases

Capital leases are repayable in monthly installments and are secured by equipment with a carrying value $51,918 (2016: $53,476). The capital lease obligations bear fixed interest rates ranging from 3.5% to 5.8% and have maturity dates ranging from 2018 to 2022.

18

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

(c) Secured equipment loans

Equipment loans are secured by equipment with a carrying value of $20,912 (2016: $50,752). The loans are repayable in monthly installments and bear fixed interest rates at 5.6% and have maturity dates ranging from 2018 to 2020.

(d) Senior notes

In April 2011, the Company completed a public offering of US$200,000 in senior unsecured notes. On June 14, 2017, the senior unsecured notes were redeemed at 100% of par value plus accrued interest to the redemption date for a total cost of $269,185 (US$203.8 million).

The unsecured notes were scheduled to mature on April 15, 2019 and were bearing interest at a fixed annual rate of 7.75%, payable semi-annually. The notes were unsecured obligations guaranteed by the Company’s subsidiaries and the subsidiary guarantees were, in turn, guaranteed by the Company. The notes were redeemable by the Company at par value after April 2017.

(e) Senior secured credit facility

On January 29, 2016, the Company entered into a US$70 million senior secured credit facility (the “Facility”) with EXP T1 Ltd., an affiliate of Red Kite. Amounts drawn under the Facility accrued interest on a monthly basis at a rate of three-month LIBOR plus 7.5% per annum, subject to a minimum LIBOR of 1% per annum. The loan principal and all accrued interest was payable upon maturity of the Facility on March 29, 2019. The Facility was repayable at any time without penalty and did not impose any off-take obligations on the Company.

The Facility was secured by a first priority charge over substantially all assets of the Company, including the Company’s 75% joint venture interest in the Gibraltar Mine, shares in all material subsidiaries and the Florence Copper project assets. The availability of the Facility was subject to conditions and covenants, including maintenance of a minimum working capital balance (as defined in the Facility) of US$20 million.

The first tranche of the Facility was drawn on January 29, 2016 and the proceeds of $46,444 (US$33.2 million) were used to repay an existing secured loan and to pay the arrangement fee and other transaction costs. The remainder of the Facility in the amount of $47,161 (US$36.8 million) was drawn during the second quarter of 2016. On June 14, 2017, the Facility plus all accrued interest was fully repaid for $104,901 (US$79.4 million).

Upon entering into the Facility in January 2016, the Company issued a call option to the lender for 7,500 tonnes of copper with a strike price of US$2.04/lb. The call option was to mature in March 2019 with an amount then payable to the lender based on the average copper price during the month of March 2019, subject to a maximum amount of US$15 million. On June 14, 2017 the Company settled the copper call option obligation with a payment to the lender of $15,745 (US$11.9 million), based on the cancellation pay-out amount defined in the Facility agreement.

In connection with the Facility, the Company also issued share purchase warrants to acquire 4 million common shares of the Company at any time until May 9, 2019 at an exercise price of $0.51 per share. These warrants were exercised by the lender in February and March 2017 (Note 21a,b).

The Company had incurred total deferred debt financing costs of $11,257, which included the initial fair value of the copper call option, warrants and other transaction costs. These costs were initially deferred and were being amortized over the life of the loan using the effective interest rate method. The remaining deferred costs were expensed on repayment in June 2017 (Note 9).

19

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

18. DEFERRED REVENUE

On March 3, 2017, the Company entered into a silver stream purchase and sale agreement with Osisko Gold Royalties Ltd. (“Osisko”), whereby the Company received an upfront cash deposit payment of US$33 million for the sale of silver equivalent to 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 amount equivalent to Taseko’s share of all future payable silver production from Gibraltar will be delivered to Osisko. In addition to the initial deposit, the Company receives cash payments of US$2.75 per ounce for all silver deliveries made under the agreement.

The Company recorded the initial deposit as deferred revenue and recognizes amounts in revenue as silver is delivered to Osisko. The amortization of deferred revenue is calculated on a per unit basis using the estimated total number of silver ounces expected to be delivered to Osisko over the life of the Gibraltar Mine. The current portion of deferred revenue is an estimate based on deliveries anticipated over the next twelve months.

The silver sale agreement has a minimum term of 50 years and automatically renews for successive 10-year periods as long as Gibraltar mining operations are active. If the initial deposit is not fully reduced through silver deliveries at current market prices at time of the deliveries, a cash payment for the remaining amount will be due to Osisko at the expiry date of the agreement. The Company’s obligations under the agreement are secured by a pledge of Taseko’s 75% interest in the Gibraltar Joint Venture.

In connection with the silver stream transaction, the Company issued share purchase warrants to Osisko to acquire 3 million common shares of the Company at any time until April 1, 2020 at an exercise price of $2.74 per share. The fair value of the warrants was estimated to be $1,876 at the date of grant and was measured based on the Black-Scholes valuation model. The fair value was determined using the expected life of 3 years, expected volatility of the Company’s common share price of 61%, an expected dividend yield of 0%, and a risk-free interest rate of 0.9% (Note 21b).

The following table summarizes changes in deferred revenue:

Upfront cash deposit	44,151
Issuance of warrants	(1,876	)
Amortization of deferred revenue	(1,323	)
Balance at December 31, 2017	40,952

Deferred revenue is reflected in the consolidated balance sheets as follows:

	December 31, 2017
Current		1,312
Non-current		39,640
		40,952

20

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

19. OTHER FINANCIAL LIABILITIES

	As at December 31,
	2017		2016
Long-term:
Deferred share units (Note 22b)		5,714		1,535
Derivative liability - copper call option (Note 17e)		—		9,440
Amounts payable to BC Hydro (Note 16)		—		10,938
		5,714		21,913

In June 2017 the Company settled the copper call option obligation with a payment of $15,745 to the senior secured credit facility lender.

20. PROVISION FOR ENVIRONMENTAL REHABILITATION

	2017			2016
Beginning balance at January 1		98,454			124,445
Change in estimates		8,350			(27,870	)
Accretion		2,363			2,358
Settlements		(1,205	)		(438	)
Foreign exchange differences		(88	)		(41	)
Ending balance at December 31		107,874			98,454

The provision for environmental rehabilitation (“PER”) represents the present value of estimated costs of legal and constructive obligations required to retire an asset, including decommissioning and other site restoration activities. The majority of these expenditures occur after the end of the life of the related operation. For the Gibraltar Mine, it is anticipated that these costs will be incurred over a period of 100 years beyond the end of the mine life. As at December 31, 2017, the PER was calculated using a pre-tax discount rate of 2.26% (2016 – 2.31%), which is based on the long-term Canadian government bond rate and an inflation rate of 2.0% (2016 – 2.0%) in its cash flow estimates. The increase in the PER during 2017 is primarily due to an increase in estimated costs and a reduction in the discount rates.

During 2017, the Company submitted an updated decommissioning cost report for the Gibraltar Mine to the BC Ministry of Energy, Mines and Petroleum Resources as a requirement to maintain its permits in good standing. The underlying cost assumptions supporting the 2017 decommissioning report reflect management’s best estimate for closure costs and were incorporated into the PER. Estimates are reviewed regularly and there have been adjustments to the amount and timing of cash flows as a result of updated information. Assumptions are based on the current economic environment, but actual rehabilitation costs will ultimately depend upon future market prices for the necessary decommissioning work required, which will reflect market conditions at the relevant time. Furthermore, the timing of rehabilitation will depend on when the mine ceases production which, in turn, will depend on future metal prices, operating conditions and many other factors which are inherently uncertain.

The Company has provided deposits and other financial security for its reclamation obligations which is held in trust by the regulatory authorities. Reclamation deposits (Note 12) are returned once the site is reclaimed to a satisfactory level and there are no ongoing monitoring or maintenance requirements. The restricted cash of $7,500 (Note 12) represents the Company’s share of cash security for a letter of credit issued by the Gibraltar Joint Venture as security for reclamation obligations at the Gibraltar Mine. For the Florence Copper project, the Company has issued security for reclamation bonds totaling $6,515, which is supported by surety bonds of an

21

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

insurance company. The Company has provided cash collateral of $2,002 to the surety provider and these amounts are classified as reclamation deposits (Note 12).

21. EQUITY

(a) Share capital

	Common shares (thousands)
Common shares outstanding at January 1, 2016		221,809
Exercise of share options		58
Common shares outstanding at December 31, 2016		221,867
Exercise of warrants (Note 17e)		4,000
Exercise of share options		1,133
Common shares outstanding at December 31, 2017		227,000

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

(b) Share Purchase Warrants

	Warrants (thousands)			Exercise price
Outstanding at January 1, 2017		4,000			0.51
Issued (Note 18)		3,000			2.74
Exercised		(4,000	)		0.51
Outstanding at December 31, 2017		3,000			2.74

(c) Contributed surplus

Contributed surplus represents employee entitlements to equity settled share-based awards that have been charged to the statement of comprehensive income and loss in the periods during which the entitlements were accrued and have not yet been exercised.

(d) Accumulated other comprehensive income (“AOCI”)

AOCI is comprised of the cumulative net change in the fair value of available-for-sale financial assets, net of taxes, until the investments are sold or impaired and cumulative translation adjustments arising from the translation of foreign subsidiaries.

22. SHARE-BASED COMPENSATION

(a) Share Options

The Company has an equity settled share option plan approved by the shareholders that allows it to grant options to directors, officers, employees and other service providers. Under the plan, a maximum of 9.5% of the Company’s outstanding common shares may be granted. The maximum allowable number of outstanding options to independent directors as a group at any time is 1% of the Company’s outstanding common shares. The exercise price of an option is set at the time of grant using the five-day volume weighted average price of the common shares. Options are exercisable for a maximum of five years from the effective date of grant under the plan. Vesting conditions of options are at the discretion of the Board of Directors at the time the options are granted.

22

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

	Options (thousands)			Average price
Outstanding at January 1, 2016		11,557			2.55
Granted		2,601			0.38
Exercised		(58	)		0.38
Forfeited		(313	)		1.40
Expired		(1,846	)		5.04
Outstanding at January 1, 2017		11,941			1.74
Granted		1,911			1.25
Exercised		(1,133	)		0.78
Forfeited		(39	)		0.96
Expired		(3,399	)		2.71
Outstanding at December 31, 2017		9,281			1.40
Exercisable at December 31, 2017		7,322			1.52

During the year ended December 31, 2017, the Company granted 1,910,500 (2016 – 2,601,000) share options to directors, executives and employees. The total fair value of options granted was $1,165 (2016 – $442) based on a weighted average grant-date fair value of $0.61 (2016 – $0.17) per option. During the year ended December 31, 2017, 1,132,600 options were exercised. The weighted-average share price at the date of exercise was $0.78 per share.

Range of exercise price	Options (thousands)		Average life (years)
$0.38 to $0.68		1,939		2.5
$0.69 to $1.02		1,958		2.0
$1.03 to $1.64		1,849		3.3
$1.65 to $2.40		3,535		1.0
		9,281		1.8

The fair value at grant date of the share option plan was measured based on the Black-Scholes formula. Expected volatility is estimated by considering historic average share price volatility. The inputs used in the measurement of the fair values at grant date of the share-based payment plans are the following:

	2017			2016
Expected term (years)		4.45			4.49
Forfeiture rate		0	%		0	%
Volatility		60.6	%		52.5	%
Dividend yield		0	%		0	%
Risk-free interest rate		1.04	%		0.57	%
Weighted-average fair value per option	$	0.61		$	0.17

23

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

(b) Deferred Share Units and Performance Share Units

The Company has adopted a Deferred Share Unit (“DSU”) Plan (the “DSU Plan”) that provides for an annual grant of DSUs to each non-employee director of the Company, or an equivalent cash payment in lieu thereof, which participants have agreed would in the first instance be used to assist in complying with the Company’s share ownership guidelines. DSUs vest immediately upon grant and are paid out in cash when a participant ceases to be a director of the Company.

The Company has established a Performance Share Unit (“PSU”) Plan (the “PSU Plan”) whereby PSUs are issued to executives as long-term incentive compensation. PSUs issued under the Plan entitle the holder to a cash or equity payment (as determined by the Board of Directors), at the end of a three-year performance period equal to the number of PSU’s granted, adjusted for a performance factor and multiplied by the quoted market value of a Taseko common share on the completion of the performance period. The performance factor can range from 0% to 250% and is determined by comparing the Company’s total shareholder return to those achieved by a peer group of companies.

The continuity of DSUs and PSUs issued and outstanding is as follows:

	DSUs (thousands)			PSUs (thousands)
Outstanding at January 1, 2016		915			462
Granted		714			1,349
Settled		(306	)		(59	)
Forfeited		—			(45	)
Outstanding at January 1, 2017		1,323			1,707
Granted		620			400
Settled		—			(888	)
Outstanding at December 31, 2017		1,943			1,219

During the year ended December 31, 2017, 887,792 of the PSUs issued to executives during 2016, in lieu of annual incentive plan payments for 2015, were settled on a cash basis. The PSUs were settled at prices ranging between $1.75 and $2.25 per unit. The settlement amounts were based on the 5-day volume weighted average share price prior to the vesting date.

During the year ended December 31, 2017, 620,000 DSUs were issued to directors (2016 - 714,000) and 400,000 PSUs to senior executives (2016 - 1,349,292). The fair value of DSUs and PSUs granted was $791 (2016 - $1,080), with a weighted average fair value at the grant date of $1.28 per unit for the DSUs (2016 - $0.38) per unit) and $2.33 per unit for the PSUs (2016 – $0.66 per unit).

For the year ended December 31, 2017, the Company recognized total share-based compensation expense of $7,100 (2016: $3,682).

24

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

23. COMMITMENTS AND CONTINGENCIES

(a) Commitments

The Company is a party to certain contracts relating to capital expenditures, operating leases and service and supply agreements. Future minimum payments under these agreements as at December 31, 2017 are presented in the following table:

2018	13,198
2019	2,363
2020	1,451
2021	408
2022	234
2023 and thereafter	—
Total commitments	17,654

The Gibraltar joint venture (Note 3) is committed to incur capital expenditures of $933 (2016: $251), of which the Company’s share is $700 (2016: $189).

(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 a 75% interest. As a result, the Company has guaranteed the joint venture partner’s 25% share of this debt which amounted to $9,044 as at December 31, 2017.

24. SUPPLEMENTARY CASH FLOW INFORMATION

	For the year ended December 31,
	2017			2016
Change in non-cash working capital items
Accounts receivable		(9,199	)		(1,783	)
Inventories		16,324			(16,023	)
Prepaids		(203	)		349
Accounts payable and accrued liabilities		8,995			4,010
Interest payable		(21	)		(543	)
Income tax paid		(2,275	)		(750	)
Income tax received		—			29
		13,621			(14,711	)
Non-cash investing and financing activities
Share purchase warrants issued (Note 18)		1,876			—
Assets acquired under capital lease		13,059			—
Derivative liabilities (Note 17e)		—			7,334
Share purchase warrants exercised (Note 17e)		(830	)		830

25

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

25. FINANCIAL RISK MANAGEMENT

(a) Overview

In the normal course of business, the Company is inherently exposed to market, liquidity and credit risk through its use of financial instruments. The timeframe and manner in which the Company manages these risks varies based upon management’s assessment of the risk and available alternatives for mitigating risk. The Board approves and monitors risk management processes, including treasury policies, counterparty limits, controlling and reporting structures.

(b) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: commodity price risk; interest rate risk; and currency risk. Financial instruments affected by market risk include: cash and equivalents; accounts receivable; marketable securities; subscription receipts; reclamation deposits; accounts payable and accrued liabilities; debt and derivatives.

The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. The Company buys and sells copper put options in order to reduce commodity price risk. The derivative instruments employed by the Company are considered to be economic hedges but are not designated as hedges for accounting purposes.

Commodity price risk

The Company is exposed to the risk of fluctuations in prevailing market commodity prices on the metals it produces. To manage the Company’s operating margins effectively in volatile metals markets, the Company enters into copper option contracts. 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 option contracts are typically extended adding incremental quarters at established put strike prices to provide the necessary price protection.

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 pre-tax earnings and equity for changes in commodity prices on the fair value of derivatives and the provisionally invoiced sales volumes.

	As at December 31,
	2017		2016
Copper increase/decrease by US$0.33/lb (2016: US$0.25/lb)1, 2		6,645		4,778

¹  The analysis is based on the assumption that the year-end copper price increases 10 percent with all other variables held constant. The relationship between the year-end copper price and the strike price of copper options has significant influence over the fair value of the derivatives. As such, a 10% decrease in the year-end copper price will not result in an equal but opposite impact on earnings after tax and equity. The closing exchange rate for the year ended December 31, 2017 of CAD/USD 1.25 (2016: 1.34) was used in the analysis.

²  At December 31, 2017, 16 million (2016: 14 million) pounds of copper in concentrate were exposed to copper price movements.

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.

26

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

Interest rate risk

The Company is exposed to interest rate risk on its outstanding debt and investments, including cash and cash equivalents, from the possibility that changes in market interest rates will affect future cash flows or the fair value of fixed-rate interest-bearing financial instruments.

The table below summarizes the impact on earnings after tax and equity for a change of 100 basis points in interest rates at the reporting date. This analysis assumes that all other variables, in particular foreign currency rates, remain constant. This assumes that the change in interest rates is effective from the beginning of the financial year and balances are constant over the year. However, interest rates and balances of the Company may not remain constant in the coming financial year and therefore such sensitivity analysis should be used with care.

	Years ended December 31,
	2017			2016
Fair value sensitivity for fixed-rate instruments
Senior secured notes		(1,340	)		—
Capital leases		(176	)		(200	)
Secured equipment loans		(96	)		(160	)
Senior notes		—			(1,960	)
Senior secured credit facility		—			(246	)
		(1,612	)		(2,566	)
Cash flow sensitivity for variable-rate instruments
Cash and equivalents		645			171
Reclamation deposits		209			192
		854			363

Currency risk

The Canadian dollar is the functional currency of the Company and, as a result, currency exposure arises from transactions and balances in currencies other than the Canadian dollar, primarily the US dollar. The Company’s potential currency exposures comprise translational exposure in respect of non-functional currency monetary items, and transactional exposure in respect of non-functional currency revenues and expenditures.

The following table demonstrates the sensitivity to a 10% strengthening in the CAD against the USD. With all other variables held constant, the Company’s shareholders equity and earnings after tax would both increase/(decrease) due to changes in the carrying value of monetary assets and liabilities. A weakening in the CAD against the USD would have had the equal but opposite effect to the amounts shown below.

27

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

	Year ended December 31,
	2017			2016
Cash and equivalents		(4,966	)		(5,429	)
Accounts receivable		(1,435	)		(699	)
Copper put option contracts		(24	)		(12	)
Accounts payable and accrued liabilities		344			283
Senior secured notes		23,293			—
Senior notes		—			20,193
Senior secured credit facility		—			7,435
Equipment loans		27			547

The Company’s financial asset and liability profile may not remain constant and, therefore, these sensitivities should be used with care.

(c) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages liquidity risk by holding sufficient cash and equivalents and scheduling long-term obligations based on estimated cash inflows. There were no defaults on loans payable during the year.

(d) Credit risk

Credit risk is the risk of potential loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Company is exposed to credit risk from its receivables, marketable securities and investments, and derivatives. In general, the Company manages its credit exposure by transacting only with reputable counterparties. The Company monitors the financial condition of its customers and counterparties to contracts. The Company deals with a limited number of counterparties for its metal sales. The Company had two significant customers in 2017 that represented 81% of gross copper concentrate revenues (2016: two customers accounted for 95% of gross copper concentrate revenues). The trade receivable balance at December 31, 2017 and 2016, is comprised of three customers. There are no impairments recognized on the trade receivables.

(e) Fair values of financial instruments

The fair values of the senior secured notes is $322,306 and the carrying value is $302,085 at December 31, 2017. The fair value of all other financial assets and liabilities approximates their carrying value.

28

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

The Company uses the fair value hierarchy described in Note 2.4(c) for determining the fair value of instruments that are measured at fair value.

	Level 1		Level 2		Level 3		Total
December 31, 2017
Financial assets designated at FVTPL
Copper put option contracts		—		331		—		331
Available-for-sale financial assets
Marketable Securities		2,444		—		—		2,444
Investment in subscription receipts (Note 12)		—		—		2,400		2,400
Reclamation deposits		30,638		—		—		30,638
		33,082		331		2,400		35,813
December 31, 2016
Financial assets designated at FVTPL
Copper put option contracts		—		155		—		155
Available-for-sale financial assets
Marketable Securities		1,419		—		—		1,419
Investment in subscription receipts (Note 12)		—		—		10,333		10,333
Reclamation deposits		30,535		—		—		30,535
		31,954		155		10,333		42,442

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 December 31, 2017.

The fair value of the senior secured notes, a Level 1 instrument, is determined based upon publicly available information. The fair value of the capital leases and secured equipment loans, Level 2 instruments, are determined through discounting future cash flows at an interest rate of 4.1% based on the relevant loans effective interest rate.

The fair values of the Level 2 instruments are based on broker quotes. Similar contracts are traded in an active market and the broker quotes reflect the actual transactions in similar instruments.

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 accounts receivable on these contracts are marked-to-market based on a quoted forward price for which there exists an active commodity market.

The subscription receipts, a Level 3 instrument, are valued based on a management estimate. As the subscription receipts are an investment in a private exploration and development company, there are no observable market data inputs. At December 31, 2017 the estimated fair value of the investment has been based on the market capitalization of comparable public companies.

(f) Capital management

The Company’s primary objective when managing capital is to ensure that the Company is able to continue its operations and that it has sufficient ability to satisfy its capital obligations and ongoing operational expenses, as well as to have sufficient liquidity available to fund suitable business opportunities as they arise.

29

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

The Company considers the components of shareholders’ equity, as well as its cash and equivalents, credit facilities and debt as capital. The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may issue or buy back equity, issue, buy back or repay debt, sell assets, or return capital to shareholders.

	December 31, 2017			December 31, 2016
Cash		(80,231	)		(89,030	)
Current portion of long-term debt		11,270			16,157
Long-term debt		317,948			373,133
Net debt		248,987			300,260
Shareholders’ equity		367,080			338,939

In order to facilitate the management of its capital requirements, the Company prepares annual operating budgets that are approved by the Board of Directors. Management also actively monitors its financial covenants to ensure compliance. The Company’s investment policy is to invest its cash in highly liquid interest-bearing investments that are readily convertible to known amounts of cash. There were no changes to the Company’s approach to capital management during the year ended December 31, 2017.

26. RELATED PARTIES

(a) Subsidiaries

	Ownership interest as at
	December 31, 2017			December 31, 2016
Gibraltar Mines Ltd.		100	%		100	%
Curis Resources Ltd.		100	%		100	%
Curis Holdings (Canada) Ltd.		100	%		100	%
Florence Copper Inc.		100	%		100	%
Aley Corporation		100	%		100	%
672520 BC Ltd.		100	%		100	%

(b) Key management personnel compensation

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

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 profit or loss 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 from9-month to 12-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

30

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

(Cdn$ in thousands)

other things, an amount ranging from 24-month to 32-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 (Note 22).

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

	Year ended December 31,
	2017		2016
Salaries and benefits		5,015		5,050
Post-employment benefits		1,491		1,309
Share-based compensation		6,849		3,602
		13,355		9,961

(c) Related party transactions

	Transaction value for the year end December 31,				Due (to) from related parties as at December 31,
	2017		2016		2017			2016
Hunter Dickinson Services Inc.:
General and administrative expenses		1,301		1,400
Exploration and evaluation expenses		98		40
		1,399		1,440		(47	)		(61	)
Gibraltar Joint Venture:
Management fee income		1,168		1,043
Reimbursable compensation expenses and third party costs		34		105
		1,202		1,148		210			162

Three directors of the Company are also principals of Hunter Dickinson Services Inc. (“HDSI”), a private company. HDSI invoices the Company for their executive services (director fees) and for other services provided by HDSI. For the year ended December 31, 2017, the Company incurred total costs of $1,399 (2016: $1,440) in transactions with HDSI. Of these, $593 (2016: $643) related to administrative, legal, exploration and tax services, $526 related to reimbursements of office rent costs (2016: $517), and $280 (2016: $280) related to director fees for two Taseko directors who are also principals of HDSI.

Under the terms of the joint venture operating agreement, the Gibraltar Joint Venture pays the Company a management fee for services rendered by the Company as operator of the Gibraltar Mine. In addition, the Company pays certain expenses on behalf of the Gibraltar Joint Venture and invoices the Joint Venture for these expenses.

31

EX-99.7

Exhibit 99.7

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 consolidated financial statements and notes thereto, prepared in accordance with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board for the year ended December 31, 2017 (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 February 20, 2018. All dollar figures stated herein are expressed in Canadian dollars, unless otherwise specified.

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, 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.

TASEKO MINES LIMITED

Management’s Discussion and Analysis

CONTENTS

OVERVIEW	3
HIGHLIGHTS	3
REVIEW OF OPERATIONS	5
GIBRALTAR OUTLOOK	7
REVIEW OF PROJECTS	7
MARKET REVIEW	9
FINANCIAL PERFORMANCE	9
FINANCIAL CONDITION REVIEW	14
SELECTED ANNUAL INFORMATION	19
FOURTH QUARTER RESULTS	20
SUMMARY OF QUARTERLY RESULTS	26
CRITICAL ACCOUNTING POLICIES AND ESTIMATES	26
CHANGE IN ACCOUNTING POLICIES	27
INTERNAL AND DISCLOSURE CONTROLS OVER FINANCIAL REPORTING	27
FINANCIAL INSTRUMENTS	28
RELATED PARTY TRANSACTIONS	29
NON-GAAP PERFORMANCE MEASURES	31

2

TASEKO MINES LIMITED

Management’s Discussion and Analysis

OVERVIEW

Taseko Mines Limited (“Taseko” or “Company”) is a mining company that seeks to create shareholder value by acquiring, developing, and operating large tonnage mineral deposits which, under conservative forward metal price assumptions, are capable of supporting a mine for ten years or longer. The Company’s sole operating asset is the 75% owned Gibraltar Mine, a large copper mine located in central British Columbia. The Gibraltar Mine is one of the largest copper mines in North America. Taseko also owns the Florence copper, Aley niobium, Harmony gold and New Prosperity gold-copper projects.

HIGHLIGHTS

Financial Data	Year ended December 31,							Three Months Ended December 31,
(Cdn$ in thousands, except for per share amounts)	2017		2016			Change		2017			2016		Change
Revenues		378,299		263,865			114,434		95,408			94,628		780
Earnings from mining operations before depletion and amortization*		177,716		54,715			123,001		32,696			46,617		(13,921	)
Earnings (loss) from mining operations		129,994		1,776			128,218		18,135			37,393		(19,258	)
Net income (loss)		34,262		(31,396	)		65,658		(7,600	)		5,113		(12,713	)
Per share - basic (“EPS”)		0.15		(0.14	)		0.29		(0.03	)		0.02		(0.05	)
Adjusted net income (loss)*		41,420		(31,860	)		73,280		(1,544	)		16,404		(17,948	)
Per share - basic (“adjusted EPS”)*		0.18		(0.14	)		0.32		(0.01	)		0.07		(0.08	)
EBITDA*		163,757		39,520			124,237		22,350			32,312		(9,962	)
Adjusted EBITDA*		161,749		41,628			120,121		28,639			44,477		(15,838	)
Cash flows provided by operations		211,079		33,853			177,226		31,899			49,663		(17,764	)
Operating Data (Gibraltar - 100% basis)	Year ended December 31,							Three Months Ended December 31,
	2017		2016			Change		2017			2016		Change
Tons mined (millions)		93.1		87.6			5.5		26.9			18.5		8.4
Tons milled (millions)		29.8		29.5			0.3		7.9			7.3		0.6
Production (million pounds Cu)		141.2		133.3			7.9		25.5			40.7		(15.2	)
Sales (million pounds Cu)		143.7		131.1			12.6		32.0			40.4		(8.4	)

* Non-GAAP performance measure. See page 31 of this MD&A.

3

TASEKO MINES LIMITED

Management’s Discussion and Analysis

HIGHLIGHTS - CONTINUED

2017 Annual Highlights

• Earnings from mining operations before depletion and amortization* was $177.7 million, a significant increase over the $54.7 million in 2016 due to higher copper and molybdenum production, lower costs and stronger metal prices;

• The Company generated cash flows from operations of $211.1 million, up from $33.9 million in 2016;

• Higher throughput and grades in 2017 resulted in strong copper and molybdenum production of 141.2 million pounds and 2.6 million pounds (100% basis), an increase of 6% and 178%, respectively, over 2016;

• Net income for the year was $34.3 million, or $0.15 per share, and Adjusted net income* was $41.4 million, or $0.18 per share;

• The cash balance at the end of 2017 was $80.2 million, slightly lower than the end of 2016 as the Company used $72 million of cash to complete a refinancing and reduce long-term debt in June 2017;

• Site operating costs* were US$1.09 per pound produced, and Total operating costs (C1)* were US$1.43 per pound produced, reductions of 28% and 23%, respectively, over 2016 unit costs;

• In March the Company completed a US$33 million streaming agreement with Osisko Gold Royalties Ltd. (“Osisko”) for Taseko’s 75% share of payable silver production from the Gibraltar Mine;

• In April 2017, the Company announced that a new long-term agreement was ratified by its unionized employees at Gibraltar. The new agreement will be effective through May 31, 2021;

• In June 2017, the Company completed an offering of US$250 million aggregate principal amount of 8.75% senior secured notes due 2022. The Company used the net proceeds of the offering and $72 million of its existing cash balance to fund the redemption of its US$200 million senior notes due 2019 and to repay its senior secured credit facility (due March 2019) and the related copper call option;

• In July 2017, Gibraltar’s mining and milling operations were impacted by wildfires in the Cariboo region which limited our employees’ ability to travel to the mine site, due to restrictions on road access and evacuation orders in the region; and

• In September 2017, the Company announced that it had received all necessary state and federal permits to build and operate the Florence Copper Production Test Facility (“PTF”) in Arizona, and the Company’s board of directors had approved the construction of the PTF at an estimated cost of US$25 million.

Fourth Quarter Highlights

• Earnings from mining operations before depletion and amortization* was $32.7 million, compared to $46.6 million in the fourth quarter of 2016;

• Cash flow from operations was $31.9 million, a decrease from the same period in 2016 due to lower production and sales volumes;

* Non-GAAP performance measure. See page 31 of this MD&A

4

TASEKO MINES LIMITED

Management’s Discussion and Analysis

• Copper and molybdenum production in the fourth quarter was 25.5 million pounds and 0.5 million pounds, respectively, a decrease from previous quarters as a result of the anticipated lower grade mine feed combined with the increased use of lower grade ore stockpiles, a consequence of the summer wildfires;

• The increased use of stockpiled ore resulted in a non-cash inventory expense and additional depletion and amortization which reduced earnings from mining operations by $10.6 million in the fourth quarter of 2017;

• Site operating costs, net of by-product credits* were US$1.69 per pound produced and Total operating costs (C1)* were US$2.11 per pound produced. Spending in the quarter remained at a similar level as previous quarter but unit costs were impacted by the lower grades and production; and

• Total sales (100% basis) for the quarter were 32.0 million pounds of copper and 0.6 million pounds of molybdenum.

REVIEW OF OPERATIONS

Gibraltar mine (75% Owned)

Operating Data (100% basis)	Q4 2017			Q3 2017			Q2 2017			Q1 2017			Q4 2016			YE 2017			YE 2016
Tons mined (millions)		26.9			23.3			21.1			21.8			18.5			93.1			87.6
Tons milled (millions)		7.9			7.2			7.5			7.3			7.3			29.8			29.5
Strip ratio		4.9			4.1			2.8			2.4			1.1			3.4			1.5
Site operating cost per ton milled (CAD$) **	$	7.68		$	5.93		$	7.67		$	8.59		$	9.13		$	7.48		$	9.47
Copper concentrate
Grade (%)		0.209			0.284			0.309			0.328			0.319			0.281			0.264
Recovery (%)		77.5			86.1			85.2			85.9			87.0			84.1			85.5
Production (million pounds Cu)		25.5			35.1			39.4			41.3			40.7			141.2			133.2
Sales (million pounds Cu)		32.0			30.2			40.7			40.8			40.4			143.7			131.1
Inventory (million pounds Cu)		2.7			9.3			4.6			5.9			5.6			2.7			5.6
Molybdenum concentrate
Production (thousand pounds Mo)		537			445			789			866			764			2,637			949
Sales (thousand pounds Mo)		589			403			794			859			798			2,645			903
Per unit data (US$ per pound)*
Site operating costs*	$	1.86		$	0.97		$	1.08		$	1.15		$	1.23		$	1.22		$	1.58
By-product credits*		(0.17	)		(0.09	)		(0.11	)		(0.15	)		(0.11	)		(0.13	)		(0.06	)
Site operating, net of by-product credits*	$	1.69		$	0.88		$	0.97		$	1.00		$	1.12		$	1.09		$	1.52
Off-property costs		0.42			0.30			0.34			0.33			0.36			0.34			0.33
Total operating costs (C1)*	$	2.11		$	1.18		$	1.31		$	1.33		$	1.48		$	1.43		$	1.85

* Non-GAAP performance measure. See page 31 of this MD&A

** Site operating cost per ton milled excludes capitalized stripping costs

5

TASEKO MINES LIMITED

Management’s Discussion and Analysis

OPERATIONS ANALYSIS

Full-year results

Gibraltar’s copper production in 2017 was 141.2 million pounds, a 6% increase over 2016 due to higher average head grades and increased mill throughput. Mining and milling operations in July and August were impacted by wildfires in the Cariboo region which limited our employees’ ability to travel to the mine site, resulting in reduced mine and mill production for periods of time as well as a complete mine shutdown for several days.

A total of 93.1 million tons were mined in the year at a strip ratio of 3.4 to 1. Waste stripping costs of $69.0 million (75% basis) were capitalized in 2017, an increase over the $9.2 million capitalized in 2016, as a new pushback in the Granite pit was initiated in the current year. Approximately 8.5 million tons of ore were drawn from ore stockpiles during the year.

Site operating costs per pound* for the year were US$1.22 per pound of copper produced, a 23% reduction from 2016, primarily due to the higher copper production and increased capitalization of stripping costs in 2017.    

Molybdenum production for 2017 was approximately 2.6 million pounds, resulting in by-product credits per pound produced* of US $0.13, an increase from US$0.06 in the prior year.

Off property costs per pound produced* were US$0.34 per pound of copper produced, consistent with US$0.33 per pound produced in 2016. Long-term contracts for treatment and refining costs and ocean freight were completed in 2016.

Total operating costs (C1)* decreased to US$1.43 per pound for the year, compared to US$1.85 per pound in 2016.

Fourth quarter results

Fourth quarter copper production at Gibraltar was 25.5 million pounds, lower than the previous quarters in 2017 as a result of reduced head grades. Although a reduction in head grade was expected in the mine plan, head grade was further affected by reduced waste stripping in the third quarter as a result of the summer wildfires in the Cariboo region whereby more mill feed came from the stockpile than planned. Copper head grade at Gibraltar was 0.209% in the fourth quarter. The low head grades and some oxidation from stockpile also impacted copper recoveries which averaged 78% for the period.

A total of 26.9 million tons were mined during the quarter at a strip ratio of 4.9 to 1. Waste stripping costs of $17.5 million (75% basis) were capitalized in the quarter related to the new pushback in the Granite pit. Approximately 4.3 million tons of ore were drawn from the ore stockpile in the fourth quarter.

Site operating cost per ton milled* was $7.68 in the fourth quarter of 2017, which is higher than the third quarter primarily due to the decreased capitalization of stripping costs.

Site operating costs per pound produced* increased to US$1.86 in the fourth quarter of 2017 from US$0.97 in the third quarter of 2017. The increase is due to the lower copper production and lower capitalized stripping costs during the fourth quarter. A total of 0.6 million pounds of molybdenum were sold resulting in by-product credits per pound produced* of US$0.17 in the fourth quarter.

Off-property costs per pound produced* were US$0.42 for the fourth quarter of 2017 compared to the prior quarter off-property costs of US$0.30. The increase is due to the higher sales volumes, as treatment and refining and ocean freight costs are recognized at the time of sale.

Total operating costs (C1) per pound* increased to US$2.11, a 79% increase from the third quarter of 2017.

* Non-GAAP performance measure. See page 31 of this MD&A

6

TASEKO MINES LIMITED

Management’s Discussion and Analysis

Health and Safety Milestones

Health and safety have always been a high-level commitment for Taseko, Gibraltar, and Florence management. Taseko is committed to operational practices that result in improved efficiencies, safety performance and occupational health. Nothing is more important to the Company than the safety, health and well-being of our workers and their families.

Gibraltar’s 2017 loss time frequency was 0.59 per one million man hours worked, below the British Columbia mining industry average of 1.06.

In February 2017, the Province of British Columbia Ministry of Energy and Mines awarded Gibraltar with the 2016 John Ash award at the 55th Annual Mine Safety Awards held in Victoria, BC, for the third year in a row. This prestigious award goes to the mining operation in British Columbia that has worked at least one million hours during the year with the lowest injury-frequency rate.

As site activities ramp up at the Florence PTF we are pleased to report that there were no lost time accidents in 2017.

GIBRALTAR OUTLOOK

During the summer wildfires, the Gibraltar Mine maintained production with reduced operations personnel for a lengthy period and also had a complete shutdown for several days in July. This had an immediate impact on mine production but, more importantly, impacted mine plan sequencing which has continued to affect copper production into the first quarter of 2018. Taking this into account, head grades and copper production in the first quarter of 2018 will be similar to the fourth quarter of 2017. Looking beyond the first quarter, with the higher stripping rates and the transition into the new ore zone completed, copper grade will increase and we expect the average copper grade for 2018 to be in line with Gibraltar’s life of mine average grade.

Copper markets have shown continued strength in early 2018 with prices rising to US$3.19 per pound as of February 20, 2018. Molybdenum prices have also continued to strengthen in the first quarter of 2018, increasing to US$12.33 per pound as of February 20, 2018, which is 40% higher than the average molybdenum price in the fourth quarter of 2017. The Company continues to review engineering plans for a potential mill expansion at Gibraltar.

The Company is pursuing an insurance claim related to the Cariboo region wildfires in July 2017. The amount of the claim cannot be determined at this time, but could be in the range of $3 to $10 million.

REVIEW OF PROJECTS

Taseko’s strategy has been to grow the Company by leveraging cash flow from the Gibraltar Mine to assemble and develop a pipeline of projects. We continue to believe this will generate the best, long-term returns for shareholders. Our development projects are located in British Columbia and Arizona and represent a diverse range of metals, including gold, copper, molybdenum and niobium. Our project focus is currently on the development of the Florence Copper Project where we incurred expenditures of $15.2 million in 2017 (2016 - $5.0 million). We also spent $1.7 million on the Aley Niobium project in 2017 (2016—$0.8 million) and $1.7 million on the New Prosperity project (2016 - $1.7 million). Taseko will continue to take a prudent approach to spending on development projects.

7

TASEKO MINES LIMITED

Management’s Discussion and Analysis

Florence Copper Project

In January 2017, the Company announced that completed technical work on the Florence property has resulted in a significant improvement in project economics. The NI 43-101 technical report documenting these results was filed on www.sedar.com on February 28, 2017.

Florence Copper Technical Report Highlights:

• Pre-tax net present value of US$920 million at a 7.5% discount rate;

• Post-tax net present value of US$680 million** at a 7.5% discount rate;

• Pre-tax internal rate of return of 44% with a 2.3 year payback;

• Operating costs of US$1.10 per pound LME grade cathode copper;

• Total life of mine production in excess of 1.7 billion pounds of copper;

• Average annual production of 81 million pounds of copper for the life of mine;

• 21 year mine life;

• Total pre-production capital cost of US$200 million; and

• Long-term copper price of US$3.00 per pound.

** The Company expects that the reduced US corporate income tax rates, announced in December 2017, will have a significant positive impact on the project’s post-tax net present value.

In September 2017, the Company announced that it has now received all necessary state and federal permits to build and operate the Production Test Facility (“PTF”) and is moving forward with construction of the PTF at an estimated cost of US$25 million. PTF construction expenditures in the fourth quarter of 2017 were $5.3 million.

The PTF will include a well field comprised of thirteen commercial scale production wells, numerous monitoring, observation and point of compliance wells, and an integrated SX/EW plant. The PTF is expected to be operational in the latter half of 2018.

Aley Niobium Project

In 2014, the Company filed an NI43-101 technical report for the Aley Niobium Project. Further engineering and metallurgical testwork has been completed since then which is expected to result in improved project economics. Environmental monitoring on the project continues and a number of product marketing initiatives are underway.

8

TASEKO MINES LIMITED

Management’s Discussion and Analysis

MARKET REVIEW

Copper                                                                    Molybdenum                                                           Canadian/US Dollar Exchange

Prices (USD per pound for Commodities)

(Source Data: Bank of Canada, Platts Metals, and London Metals Exchange)

Global economic uncertainty has led to significant copper price volatility over short periods of time. The U.S. trade policies, Chinese economic demand, copper supply disruptions, and interest rate expectations have all contributed to the recent price volatility.

Copper prices have been on an upward trend over the last year, with prices increasing by approximately 30% during 2017. The average price of London Metals Exchange (“LME”) copper was US$3.09 per pound in the fourth quarter of 2017, which was 7% higher than the third quarter of 2017 and about 29% higher than the fourth quarter of 2016. Management believes that the market will continue to benefit from improving global copper demand and tight mine supply going forward.

The Company’s sales agreement specifies molybdenum pricing based on the published Platts Metals reports. The average published molybdenum price was US$8.80 per pound in the fourth quarter of 2017, which was 8% higher than the third quarter of 2017. Molybdenum prices have continued to strengthen in the first quarter of 2018, increasing to US$12.33 per pound as of February 20, 2018.

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 reported in US dollars. The Canadian dollar strengthened by approximately 7% during 2017.

FINANCIAL PERFORMANCE

Earnings

The Company’s net income was $34.3 million ($0.15 earnings per share) for the year ended December 31, 2017, compared to a net loss of $31.4 million ($0.14 loss per share) for 2016. The increase in net income was primarily due to higher copper prices, higher production and sales volumes, and lower production costs at the Gibraltar Mine.

Earnings from mining operations before depletion and amortization* was $177.7 million for the year ended December 31, 2017, compared to earnings of $54.7 million for 2016. The increase in earnings from mining operations before depletion and amortization was a result of higher copper and molybdenum revenues and lower production costs.

Included in net earnings (loss) are a number of items that management believes require adjustment in order to better measure the underlying performance of the business. The following items have been adjusted as management believes they are not indicative of a realized economic gain/loss or the underlying performance of the business in the period:

9

TASEKO MINES LIMITED

Management’s Discussion and Analysis

	Year ended December 31,
(Cdn$ in thousands)	2017			2016			Change
Net income (loss)		34,262			(31,396	)		65,658
Unrealized foreign exchange gain		(17,684	)		(7,785	)		(9,899	)
Write-down of mine equipment		3,551			—			3,551
Write-down of investment		3,850			—			3,850
Unrealized loss on copper put options		1,970			1,044			926
Loss on settlement of long-term debt		13,102			—			13,102
Loss on copper call option		6,305			3,360			2,945
Other non-recurring expenses		—			5,489			(5,489	)
Estimated tax effect of adjustments		(3,936	)		(2,572	)		(1,364	)
Adjusted net income (loss) *		41,420			(31,860	)		73,280

* Non-GAAP performance measure. See page 31 of this MD&A

For the year ended December 31, 2017, the Canadian dollar strengthened in comparison to the same period in 2016 resulting in an unrealized foreign exchange gain of $17.7 million. The unrealized foreign exchange gains were primarily driven by the translation of the Company’s US dollar denominated debt.

A write-down of mine equipment of $3.6 million was recorded in the third quarter of 2017 to adjust the carrying value of certain Gibraltar mine equipment to its estimated recoverable value. This mine equipment was replaced by equipment acquired under capital leases during the third quarter.

In the fourth quarter of 2017, the Company assessed the value of its investment in subscription receipts of a private mineral exploration and development company and recorded a write-down of the investment to its estimated fair value. A loss of $3.9 million was recorded in the statement of income during the fourth quarter of 2017.

The loss on settlement of long-term debt of $13.1 million in 2017 relates to the write-off of deferred financing costs and additional interest costs paid in lieu of notice upon the settlement of the senior notes and the senior secured credit facility in June 2017. Also the Company settled the copper call option obligation with a payment of $15.7 million to the senior secured credit facility lender. The loss on the copper call option for the year ended December 31, 2017 was $6.3 million.

The other non-recurring expenses in 2016 relates to special shareholder meeting costs and other non-recurring financing costs. For the year ended December 31, 2016, the Company incurred total costs of $4.9 million on legal and other advisory costs associated with a special shareholder meeting, a proxy contest and related litigation, and $0.6 million on other non-recurring financing costs.

10

TASEKO MINES LIMITED

Management’s Discussion and Analysis

Revenues

	Year ended December 31,
(Cdn$ in thousands)	2017			2016			Change
Copper contained in concentrate		387,356			283,401			103,955
Molybdenum concentrate		21,807			5,900			15,907
Silver		2,132			3,988			(1,856	)
Total gross revenue		411,295			293,289			118,006
Less: treatment and refining costs		(32,996	)		(29,424	)		(3,572	)
Revenue		378,299			263,865			114,434
(thousands of pounds, unless otherwise noted)
Sales of copper in concentrate*		103,871			94,734			9,137
Average realized copper price (US$ per pound)		2.88			2.26			0.62
Average LME copper price (US$ per pound)		2.80			2.21			0.59
Average exchange rate (US$/CAD)		1.30			1.32			(0.02	)

* This amount includes a net smelter payable deduction of approximately 3.5% to derive net payable pounds of copper sold.

Copper revenues for the year ended December 31, 2017 increased by $104.0 million, compared to the same period in 2016, primarily due to an increase in copper sales volumes and higher realized copper prices.

During the year ended December 31, 2017, copper revenues include $7.3 million of favorable adjustments to provisionally priced copper concentrate. The provisional pricing adjustments contribute US$0.05 per pound, respectively, to the average realized copper price for the year ended December 31, 2017.

Molybdenum revenues for the year ended December 31, 2017 increased by $15.9 million, compared to the same period in 2016, as the molybdenum circuit did not operate in the prior year until its restart in September 2016.

Cost of sales

	Year ended December 31,
(Cdn$ in thousands)	2017		2016			Change
Site operating costs		167,338		209,381			(42,043	)
Transportation costs		19,281		16,507			2,774
Changes in inventories of finished goods and ore stockpile		13,964		(16,738	)		30,702
Production costs		200,583		209,150			(8,567	)
Depletion and amortization		47,722		52,939			(5,217	)
Cost of sales		248,305		262,089			(13,784	)
Site operating costs per ton milled*	$	7.48	$	9.47		$	(1.99	)

* Non-GAAP performance measure. See page 31 of this MD&A

Site operating costs for the year ended December 31, 2017 decreased by 20%, from the same period in 2016. The reduction in site operating costs was primarily due to the increased allocation of costs to capitalized stripping as a result of waste stripping in a new section of the Granite pit, in accordance with the mine plan. For the year ended December 31, 2017, $69.0 million was allocated to capitalized stripping, compared to $9.2 million in 2016.

11

TASEKO MINES LIMITED

Management’s Discussion and Analysis

The change in inventories primarily relates to changes in ore stockpile tonnage. Approximately 8.5 million tons of ore were drawn from ore stockpiles during 2017.

Depletion and amortization for year ended December 31, 2017 decreased by 10% compared to the same period in 2016, primarily due to the decreased amortization of capitalized stripping costs in the period.

Other operating (income) expenses

	Year ended December 31,
(Cdn$ in thousands)	2017			2016			Change
General and administrative		12,775			11,299			1,476
Share-based compensation		6,983			3,619			3,364
Exploration and evaluation		1,730			2,087			(357	)
Realized loss on copper put options		1,807			1,956			(149	)
Unrealized loss on copper put options		1,970			1,044			926
Loss on copper call option		6,305			3,360			2,945
Other (income) expenses:
Write-down of mine equipment		3,551			—			3,551
Write-down of investment		3,850			—			3,850
Special shareholder meeting costs		—			4,894			(4,894	)
Other financing costs		—			616			(616	)
Other income, net		(1,060	)		(1,438	)		378
		37,911			27,437			10,474

General and administrative costs have increased for the year ended December 31, 2017 compared to the same period in 2016 due to a $0.5 million donation to a local hospital, additional legal costs related to the silver stream transaction and base shelf prospectus, and because a portion of executive compensation in 2016 was issued in the form of PSU’s and classified as share-based compensation expense.

Share-based compensation expense increased in 2017, primarily due to valuation adjustments for deferred share units in the current year resulting from an increase in the Company’s share price. More information is set out in Note 22 of the December 31, 2017 consolidated financial statements.

Exploration and evaluation costs for the year ended December, 2017, represent costs associated with the New Prosperity project.

During the year ended December 31, 2017, the Company incurred a realized loss of $1.8 million from copper put options, which relates to copper put options that settled out-of-the-money.

In June 2017, the Company settled the copper call option obligation with a payment of $15.7 million to the senior secured credit facility lender. The loss on the copper call option for the year ended December 31, 2017 was $6.3 million.

A write-down of mine equipment of $3.6 million was recorded in 2017 to adjust the carrying value of certain Gibraltar Mine equipment to its estimated recoverable value. This mine equipment was replaced by equipment acquired under capital leases during the third quarter of 2017.

12

TASEKO MINES LIMITED

Management’s Discussion and Analysis

In the fourth quarter of 2017, the Company assessed the value of its investment in subscription receipts of a private mineral exploration and development company and recorded a $3.9 million write-down to record the investment at its estimated fair value.

During the year ended December 31, 2016, the Company incurred total costs of $4.9 million on legal and other advisory costs associated with a special shareholder meeting, a proxy contest and related litigation, and $0.6 million on other non-recurring financing costs.

Finance expenses

	Year ended December 31,
(Cdn$ in thousands)	2017		2016		Change
Interest expense		30,965		27,649		3,316
Accretion of PER		2,363		2,358		5
Loss on settlement of long-term debt		13,102		—		13,102
		46,430		30,007		16,423

Interest expense for the year ended December 31, 2017 increased by $3.3 million, compared to the same period in 2016. The Company’s total interest costs are lower in the year ended December 31, 2017 due to reduced long-term debt as a result of the June 2017 refinancing. However, interest expense on the statement of income is higher in 2017 as the Company stopped capitalizing interest after the debt refinancing in June 2017.

As part of the June 2017 refinancing, the Company redeemed its US$200 million senior notes and repaid its senior secured credit facility. The settlement of long-term debt resulted in a loss of $13.1 million, which includes a write-off of $9.2 million of deferred financing costs relating to the settled debt and additional interest costs of $3.9 million which were paid in lieu of notice to the note holders and the senior secured lender.

Income tax

	Year ended December 31,
(Cdn$ in thousands)	2017			2016			Change
Current income tax expense		1,801			836			965
Deferred income tax (recovery)		27,377			(15,549	)		42,926
		29,178			(14,713	)		43,891
Effective tax rate		46.0	%		31.9	%		14.1	%
Canadian statutory rate		26.0	%		26.0	%		—
B.C. Mineral tax rate		9.6	%		9.6	%		—

The current tax expense recorded is the estimated B.C. Mineral taxes based on production at the Gibraltar Mine for the year.

The effective tax rate for the year 2017 was 46.0%, which is higher than the statutory rate of 35.6%. The difference is a result of permanent differences related to non-deductible share-based compensation and expenditures incurred that are not deductible for B.C. Mineral tax.

13

TASEKO MINES LIMITED

Management’s Discussion and Analysis

FINANCIAL CONDITION REVIEW

Balance sheet review

	As at December 31,
(Cdn$ in thousands)	2017		2016		Change
Cash and equivalents		80,231		89,030		(8,799	)
Other current assets		65,505		76,297		(10,792	)
Property, plant and equipment		797,265		730,208		67,057
Other assets		45,709		53,904		(8,195	)
Total assets		988,710		949,439		39,271
Current liabilities		50,139		38,641		11,498
Debt:
Senior secured notes		302,085		—		302,085
Senior notes		—		266,435		(266,435	)
Senior secured credit facility		—		91,483		(91,483	)
Capital leases and secured equipment loans		27,133		31,372		(4,239	)
Deferred revenue		39,640		—		39,640
Other liabilities		202,633		182,569		20,064
Total liabilities		621,630		610,500		11,130
Equity		367,080		338,939		28,141
Net debt (debt minus cash and equivalents)		248,987		300,260		(51,273	)
Total common shares outstanding (millions)		227.0		221.9		5.1

The Company’s asset base is comprised principally of non-current assets, including property, plant and equipment, reflecting the capital intensive nature of the mining business. Other current assets include accounts receivable, other financial assets and inventories (supplies and production inventories), along with prepaid expenses and deposits. Production inventories, accounts receivable and cash balances fluctuate in relation to shipping and cash settlement schedules.

Total long-term debt decreased by $60.1 million for the year ended December 31, 2017, due primarily to the refinancing transaction completed in the second quarter of 2017 and foreign exchange gains on the Company’s US dollar denominated debt. In June 2017, the Company used the proceeds of a US$250 million senior secured note offering along with a portion of its cash on hand, to repay the US$200 million senior notes (due March 2019) and the senior secured credit facility. The Company’s net debt has decreased by $51.3 million for the year ended December 31, 2017 primarily due to cash flow generated from mining operations during 2017, including cash proceeds from the sale of a silver stream to Osisko Gold Royalties Ltd. (“Osisko”).

Deferred revenue relates to the US$33 million advance payment received in March 2017 from Osisko for the sale of future silver production from the Gibraltar Mine.

Other liabilities increased by $20.1 million mainly due to the increase in deferred tax liabilities and the provision for environmental rehabilitation (“PER”). Other financial liabilities decreased due to the settlement of the copper call option obligation and the reclassification of the amount payable to BC Hydro to current liabilities.

14

TASEKO MINES LIMITED

Management’s Discussion and Analysis

The increase in the PER is driven by an increase in estimated costs and a reduction in the discount rates. At December 31, 2017, the Bank of Canada long-term benchmark bond rate used as a proxy for long-term discount rates was 2.26% compared to 2.31% at December 31, 2016. Given the long time frame over which environmental rehabilitation expenditures are expected to be incurred (over 100 years), the carrying value of the provision is very sensitive to changes in discount rates.

As at February 20, 2018, there were 227,069,734 common shares outstanding. In addition, there were 10,905,900 stock options and 3,000,000 warrants outstanding at February 20, 2018. More information on these instruments and the terms of their exercise is set out in Notes 18 and 22 of the December 31, 2017 consolidated financial statements.

Liquidity, cash flow and capital resources

During the year ended December 31, 2017 the Company generated $109 million of positive cash flow from operating and investing activities, which is a result of strong operating results at the Gibraltar Mine and includes $44 million of cash proceeds from the sale of a silver stream to Osisko. A portion of this cash flow was used to reduce long-term debt and other financial liabilities, as part of a refinancing completed on June 14, 2017. The Company used $72 million of cash on hand along with the net proceeds from an offering of US$250 million senior secured notes due 2022 to redeem its US$200 million senior notes due 2019, to repay its senior secured credit facility (due March 2019) and to settle the related copper call option.

Long-term debt and other financial liabilities have decreased by $76 million during the year ended December 31, 2017 and the Company has extended the maturity date of the long-term debt from 2019 to 2022.

At December 31, 2017, the Company had cash and equivalents of $80 million (December 31, 2016—$89 million) and continues to maintain a strategy of retaining a significant cash balance to reflect the volatile and capital intensive nature of the copper mining business.

Cash flow provided by operations during the year ended December 31, 2017 was $211.1 million compared to a $33.9 million for the same period in 2016. Cash used for investing activities during the year ended December 31, 2017 was $101.8 million compared to cash outflow of $19.1 million for the same period in 2016. Investing activities in 2017 included $69 million for capitalized stripping costs, $10.7 million incurred on other capital expenditures for Gibraltar, $16.9 million in development costs for the Florence and Aley projects, and $4 million for the purchase of copper put options.

Cash used for financing activities during the year ended December 31, 2017 includes $356.6 million for repayment of the senior notes and the senior secured credit facility, $15.7 million to settle the copper call option, $17.1 million of payments for capital leases and equipment loans, and $44 million of interest payments, partially offset by the $317.6 million net proceeds from issuance of senior secured notes and proceeds of $2.9 million from the exercise of stock options.

Liquidity outlook

The Company has a pipeline of development stage projects, including the Florence Copper Project and Aley Niobium Project, and additional funding will be required to advance these projects to production. To address these project funding requirements, the Company may seek to raise additional capital through debt or equity financings or asset sales (including royalties, sales of project interests, or joint ventures). The senior secured notes (issued in June 2017) allow for up to US$100 million of first lien secured debt to be issued, subject to the terms of the note indenture. The Company may also redeem or repurchase senior secured notes on the market. From time to time, the Company evaluates these alternatives, based on a number of factors including the prevailing market prices of the senior notes, metal prices, our liquidity requirements, covenant restrictions and other factors, in order to determine the optimal mix of capital resources to address capital requirements, minimize the Company’s cost of capital, and maximize shareholder value.

15

TASEKO MINES LIMITED

Management’s Discussion and Analysis

Future changes in copper and molybdenum market prices could also impact the timing and amount of cash available for future investment in development projects, debt obligations, and other uses of capital. To partially mitigate commodity price risks, copper put options are entered into for a portion of Gibraltar copper production (see section below “Hedging Strategy”).

Purchase and sale agreement with Osisko

On March 3, 2017, the Company entered into a silver stream purchase and sale agreement with Osisko, whereby the Company received an upfront cash deposit payment of US$33 million from the sale of silver equivalent for 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 amount equivalent to Taseko’s share of all future payable silver production from Gibraltar will be delivered to Osisko. In addition to the initial deposit, the Company receives cash payments of US$2.75 per ounce for all silver deliveries made under the agreement.

The Company recorded the initial deposit as deferred revenue and recognizes amounts in revenue as silver is delivered to Osisko. The amortization of deferred revenue is calculated on a per unit basis using the estimated total number of silver ounces expected to be delivered to Osisko over the life of the Gibraltar Mine.

The silver sale agreement has a minimum term of 50 years and automatically renews for successive 10-year periods as long as Gibraltar mining operations are active. If the initial deposit is not fully reduced through silver deliveries at current market prices at time of the deliveries, a cash payment for the remaining amount will be due to Osisko at the expiry date of the agreement. The Company’s obligations under the agreement are secured by a pledge of Taseko’s 75% interest in the Gibraltar Joint Venture.

In connection with the silver stream transaction, the Company issued share purchase warrants to Osisko to acquire 3 million common shares of the Company at any time until April 1, 2020 at an exercise price of $2.74 per share.

Senior secured notes

In June 2017, the Company completed an offering of US$250 million aggregate principal amount of senior secured notes (“the Notes”). The Notes mature on June 15, 2022 and bear interest at an annual rate of 8.75%, payable semi-annually on June 15 and December 15, commencing on December 15, 2017. The Notes were issued at 99% of par value and the Company incurred other transaction costs of $9.2 million resulting in net proceeds from the offering of $317.6 million (US$240.5 million). The net proceeds were used, along with cash on hand, to redeem the senior notes and to repay the senior secured credit facility and to settle the related copper call option.

The 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. The Notes are guaranteed by each of Taseko’s existing and future restricted subsidiaries, other than certain immaterial subsidiaries. The Company is able to incur limited amounts of additional secured and unsecured debt under certain conditions as defined in 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 Notes at any time on or after June 15, 2019, at redemption prices ranging from 104.375% to 100%, plus accrued and unpaid interest to the date of redemption. Prior to June 15, 2019, all or part of the notes may be redeemed at 100%, plus a make-whole premium, plus accrued and unpaid interest to the date of redemption. In addition, until June 15, 2019, the Company may redeem up to 35% of the aggregate principal amount of the Notes, in an amount not greater than the net proceeds of certain equity offerings, at a redemption price of 108.750%, plus accrued and unpaid interest to the date of redemption. On a change of control, the Notes are redeemable at the option of the holder at a price of 101%.

16

TASEKO MINES LIMITED

Management’s Discussion and Analysis

Senior notes

In April 2011, the Company completed a public offering of US$200 million in senior unsecured notes. On June 14, 2017, the senior unsecured notes were redeemed at 100% of par value plus accrued interest to the redemption date for a total cost of $269.2 million (US$203.8 million).

The unsecured notes were scheduled to mature on April 15, 2019 and were bearing interest at a fixed annual rate of 7.75%, payable semi-annually. The notes were unsecured obligations guaranteed by the Company’s subsidiaries and the subsidiary guarantees were, in turn, guaranteed by the Company. The notes were redeemable by the Company at par value after April 2017.

Senior secured credit facility

On January 29, 2016, the Company entered into a US$70 million senior secured credit facility (the “Facility”) with EXP T1 Ltd., an affiliate of Red Kite. Amounts drawn under the Facility accrued interest on a monthly basis at a rate of three-month LIBOR plus 7.5% per annum, subject to a minimum LIBOR of 1% per annum. The loan principal and all accrued interest was payable upon maturity of the Facility on March 29, 2019. The Facility was repayable at any time without penalty and did not impose any off-take obligations on the Company.

The Facility was secured by a first priority charge over substantially all assets of the Company, including the Company’s 75% joint venture interest in the Gibraltar Mine, shares in all material subsidiaries and the Florence Copper project assets. The availability of the Facility was subject to conditions and covenants, including maintenance of a minimum working capital balance (as defined in the Facility) of US$20 million.

On June 14, 2017, the Facility plus all accrued interest was fully repaid for $104.9 million (US$79.4 million).

Upon entering into the Facility in January 2016, the Company issued a call option to the lender for 7,500 tonnes of

copper with a strike price of US$2.04 per pound. The call option was to mature in March 2019 with an amount then payable to the lender based on the average copper price during the month of March 2019, subject to a maximum amount of US$15 million. On June 14, 2017 the Company settled the copper call option obligation with a payment to the lender of $15.7 million (US$11.9 million), based on the cancellation pay-out amount defined in the Facility agreement.

Upon entering into the Facility, the Company also issued share purchase warrants to acquire 4 million common shares of the Company at any time until May 9, 2019 at an exercise price of $0.51 per share. These warrants were exercised by the lender in February and March 2017 for proceeds of $2.0 million to the Company.

Hedging strategy

The Company’s hedging strategy is to secure a minimum price for a portion of copper production using put options that are either purchased outright or funded by the sale of call options that are significantly out of the money. 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 price and quantity exposure are reviewed at least quarterly to ensure that adequate revenue protection is in place. Hedge positions are typically extended adding incremental quarters at established put strike prices to provide the necessary price protection. The Company’s hedging strategy is designed to mitigate short-term declines in copper price.

17

TASEKO MINES LIMITED

Management’s Discussion and Analysis

Considerations on the cost of the hedging program include an assessment of Gibraltar’s estimated production costs, anticipated copper prices and the Company’s capital requirements during the relevant period. During the year ended December 31, 2017, the Company spent $4 million to purchase copper put options. The following table shows the commodity contracts that were outstanding as at the date of this MD&A.

	Notional amount		Strike price		Term to maturity		Original cost
At February 20, 2018
Copper put options		10 million lbs		US$2.70/lb		Q1 2018		$0.9 million
Copper put options		15 million lbs		US$2.80/lb		Q2 2018		$1.0 million

Commitments and contingencies

	Payments due
($ in thousands)	2018		2019		2020		2021		2022		Thereafter		Total
Debt 1:
Repayment of principal		11,270		7,729		3,866		2,526		315,367		—		340,758
Interest		28,472		27,984		27,687		27,570		4,982		—		116,695
PER 2		—		—		—		—		—		107,874		107,874
Operating leases		2,348		1,253		857		96				—		4,554
Capital expenditures 3		3,283		—		—		—		—		—		3,283
Other expenditures 4		7,567		1,110		594		312		234		—		9,817

¹  As at December 31, 2017, debt is comprised of senior secured notes, capital leases and secured equipment loans.

²  Provision for environmental rehabilitation amounts presented in the table represents the expected cost of environmental rehabilitation for Gibraltar Mine without considering the effect of discount or inflation rates.

³  Capital expenditure commitments include only those items where the Company has entered into binding commitments.

⁴  Other expenditure commitments include the purchase of goods and services and exploration activities.

The Company has guaranteed 100% of certain capital lease and equipment loans entered into by the Gibraltar joint venture in which it holds a 75% interest. As a result, the Company has guaranteed the joint venture partner’s 25% share of this debt which amounted to $9.0 million as at December 31, 2017.

18

TASEKO MINES LIMITED

Management’s Discussion and Analysis

SELECTED ANNUAL INFORMATION

	For years ended December 31,
(Cdn$ in thousands, except per share amounts)	2017		2016			2015
Revenues		378,299		263,865			289,298
Net income (loss)		34,262		(31,396	)		(62,352	)
Per share – basic		0.15		(0.14	)		(0.28	)
Per share – diluted		0.15		(0.14	)		(0.28	)
	As at December 31,
	2017		2016			2015
Total assets		988,710		949,439			974,209
Total long-term financial liabilities		323,662		395,046			305,845

19

TASEKO MINES LIMITED

Management’s Discussion and Analysis

FOURTH QUARTER RESULTS

Consolidated Statements of Comprehensive Income (Loss)	Three months ended December 31,
(Cdn$ in thousands, except per share amounts)	2017			2016
Revenues		95,408			94,628
Cost of sales
Production costs		(62,712	)		(48,011	)
Depletion and amortization		(14,561	)		(9,224	)
Earnings from mining operations		18,135			37,393
General and administrative		(2,834	)		(2,101	)
Share-based compensation		(1,310	)		(1,377	)
Exploration and evaluation		(321	)		(359	)
Loss on derivatives		(1,616	)		(4,333	)
Other income (expenses)		(3,541	)		404
		8,513			29,627
Finance expenses		(8,692	)		(8,028	)
Finance income (loss)		(269	)		297
Foreign exchange loss		(2,045	)		(7,922	)
Income (loss) before income taxes		(2,493	)		13,974
Income tax expense		(5,107	)		(8,861	)
Net income (loss) for the period		(7,600	)		5,113
Other comprehensive income (loss):
Unrealized loss on available-for-sale financial assets		(3,517	)		(395	)
Foreign currency translation reserve		547			2,526
Total other comprehensive income (loss) for the period		(2,970	)		2,131
Total comprehensive income (loss) for the period		(10,570	)		7,244
Earnings (loss) per share
Basic		(0.03	)		0.02
Diluted		(0.03	)		0.02
Weighted-average shares outstanding (thousands)
Basic		226,827			221,846
Diluted		226,827			227,032

20

TASEKO MINES LIMITED

Management’s Discussion and Analysis

Consolidated Statements of Cash Flows	Three months ended December 31,
(Cdn$ in thousands)	2017			2016
Operating activities
Net income (loss) for the period		(7,600	)		5,113
Adjustments for:
Depletion and amortization		14,561			9,225
Income tax expense		5,107			8,861
Share-based compensation expense		1,321			1,382
Loss on derivatives		1,616			4,333
Finance expenses, net		8,961			7,731
Unrealized foreign exchange loss		1,541			8,802
Amortization of deferred revenue		(296	)		—
Deferred electricity payments (repayments)		(3,463	)		2,433
Other operating activities		2,943			(361	)
Net change in non-cash working capital		7,208			2,144
Cash provided by operating activities		31,899			49,663
Investing activities
Purchase of property, plant and equipment		(28,340	)		(8,416	)
Purchase of copper put options		(992	)		(1,025	)
Proceeds from the sale/settlement of copper put options		—			425
Other investing activities		249			(330	)
Cash used for investing activities		(29,083	)		(9,346	)
Financing activities
Repayment of capital leases and equipment loans		(4,379	)		(4,510	)
Interest paid		(14,563	)		(10,804	)
Common shares issued on exercise of stock options		411			12
Cash used for financing activities		(18,531	)		(15,302	)
Effect of exchange rate changes on cash and equivalents		277			(102	)
Increase (decrease) in cash and equivalents		(15,438	)		24,913
Cash and equivalents, beginning of period		95,669			64,117
Cash and equivalents, end of period		80,231			89,030

21

TASEKO MINES LIMITED

Management’s Discussion and Analysis

Earnings

The Company’s net loss was $7.6 million ($0.03 loss per share) for the three months ended December 31, 2017, compared to a net income of $5.1 million ($0.02 earnings per share) for the same period in 2016. The decrease in net income was primarily due to lower earnings from mining operations and a write-down of an investment.

Earnings from mining operations before depletion and amortization* was $32.7 million for the three months ended December 31, 2017, compared to earnings of $46.6 million for the same period in 2016. The decrease in earnings from mining operations before depletion and amortization was a result of the lower operating margins in the fourth quarter of 2017. The lower operating margin in the fourth quarter of 2017 was a result of lower copper sales volumes and higher unit operating costs, however this was partially offset by higher realized copper prices.

Included in net income (loss) are a number of items that management believes require adjustment in order to better measure the underlying performance of the business. The following items have been adjusted as management believes they are not indicative of a realized economic gain/loss or the underlying performance of the business in the period:

	Three months ended December 31,
(Cdn$ in thousands)	2017			2016			Change
Net income (loss)		(7,600	)		5,113			(12,713	)
Unrealized foreign exchange loss		1,541			8,802			(7,261	)
Unrealized loss on copper put options		898			477			421
Loss on copper call option		—			2,886			(2,886	)
Write-down of investment		3,850			—			3,850
Estimated tax effect of adjustments		(233	)		(874	)		641
Adjusted net income (loss)*		(1,544	)		16,404			(17,948	)

* Non-GAAP performance measure. See page 31 on this MD&A

In the three months ended December 31, 2017, the Canadian dollar weakened resulting in unrealized foreign exchange loss of $1.5 million. The unrealized foreign exchange loss was primarily driven by the translation of the Company’s US dollar denominated debt.

In the fourth quarter of 2017, the Company assessed the value of its investment in subscription receipts of a private mineral exploration and development company and recorded a $3.9 million write-down to record the investment at its estimated fair value.

22

TASEKO MINES LIMITED

Management’s Discussion and Analysis

Revenues

	Three months ended December 31,
(Cdn$ in thousands)	2017			2016			Change
Copper in concentrate		97,094			99,375			(2,281	)
Molybdenum concentrate		5,041			5,189			(148	)
Silver contained in copper concentrate		470			1,018			(548	)
Total gross revenue		102,605			105,582			(2,977	)
Less: treatment and refining costs		(7,197	)		(10,954	)		3,757
Revenue		95,408			94,628			780
(thousands of pounds, unless otherwise noted)
Copper in concentrate*		23,134			29,225			(6,091	)
Average realized copper price (US$ per pound)		3.30			2.54			0.76
Average LME copper price (US$ per pound)		3.09			2.39			0.70
Average exchange rate (US$ per pound)		1.27			1.33			(0.06	)

* This amount includes a net smelter payable deduction of approximately 3.5% to derive net pounds of copper sold.    

Copper revenues for the three months ended December 31, 2017 decreased by $2.3 million, compared to the same period in 2016, primarily due to a decrease in copper sales volumes, partially offset by higher realized copper prices.

During the three months ended December 31, 2017, revenues include $6.7 million of favorable adjustments to provisionally priced copper concentrate. The provisional pricing adjustments contribute US$0.23 per pound, respectively, to the average realized copper price for the three months ended December 31, 2017.

Molybdenum revenues for the three months ended December 31, 2017 was $5.0 million and comparable to the same period in 2016. The molybdenum circuit restarted in September 2016.

Cost of sales

	Three months ended December 31,
(Cdn$ in thousands)	2017		2016			Change
Site operating costs		45,240		50,235			(4,995	)
Transportation costs		4,074		5,358			(1,284	)
Changes in inventories of finished goods		5,392		3,679			1,713
Changes in inventories of ore stockpiles		8,006		(11,261	)		19,267
Production costs		62,712		48,011			14,701
Depletion and amortization		14,561		9,224			5,337
Cost of sales		77,273		57,235			20,038
Site operating costs per ton milled*	$	7.68	$	9.13		$	(1.45	)

* Non-GAAP performance measure. See page 31 on this MD&A

23

TASEKO MINES LIMITED

Management’s Discussion and Analysis

Site operating costs for the three months ended December 31, 2017 decreased by 10%, from the same period in 2016. The reduction in site operating costs was primarily due to the increased allocation of costs to capitalized stripping as a result of waste stripping in a new section of the Granite pit, in accordance with the mine plan. For the three months ended December 31, 2017, $17.5 million was allocated to capitalized stripping, compared to $6.3 million for the same period in 2016.

Cost of sales was also impacted by changes in ore stockpile inventories. In the three months ended December 31, 2017, the ore stockpiles were drawn down by 4.1 million tons resulting in a reduction in inventories (increase in cost of sales) of $8.0 million. In the fourth quarter of 2016, the ore stockpile inventory increased by $11.3 million (reduction in cost of sales) due to an increase in the stockpiled tonnage and the reversal of a write-down of $4.3 million.

Depletion and amortization for three months ended December 31, 2017 increased by $5.3 million over the same period in 2016, and the difference is primarily due to changes in ore stockpile inventory. In the fourth quarter of 2017 the reduction in stockpile inventory resulted in additional depletion and amortization expense of $2.6 million.

Other operating (income) expenses

	Three months ended December 31,
(Cdn$ in thousands)	2017			2016			Change
General and administrative		2,834			2,101			733
Share-based compensation		1,310			1,377			(67	)
Exploration and evaluation		321			359			(38	)
Realized loss on copper put options		718			970			(252	)
Unrealized loss on derivative instruments		898			3,363			(2,465	)
Other income (expense):
Write-down of investment		3,850			—			3,850
Other income, net		(309	)		(404	)		95
		9,622			7,766			1,856

General and administrative costs have increased for the three months ended December 31, 2017 compared to the same period in 2016 due to an increase in costs related to legal, travel, and salaries.

Share-based compensation expense for the three months ended December 31, 2017 was comparable to the same period in 2016. More information is set out in Note 22 of the December 31, 2017 consolidated financial statements.

Exploration and evaluation costs for the three months ended December, 2017, represent costs associated with the New Prosperity project.

During the fourth quarter of 2017, the Company incurred a realized loss of $0.7 million from copper put options, which relates to copper put options that settled out-of-the-money.

In the fourth quarter of 2017, the Company assessed the value of its investment in subscription receipts of a private mineral exploration and development company and recorded a $3.9 million write-down to record the investment at its estimated fair value.

24

TASEKO MINES LIMITED

Management’s Discussion and Analysis

Finance expenses

	Three months ended December 31,
(Cdn$ in thousands)	2017		2016		Change
Interest expense		8,033		7,483		550
Accretion of PER		659		545		114
		8,692		8,028		664

Interest expense for the three months ended December 31, 2017 increased by $0.6 million, compared to the same periods in 2016. The Company’s total interest costs are lower in the three months ended December 31, 2017 due to reduced long-term debt as a result of the June 2017 refinancing. However, interest expense is higher in the fourth quarter of 2017 because no interest was capitalized this quarter, whereas $1.3 million of interest was capitalized in the fourth quarter of 2016.

Income tax

	Three months ended December 31,
(Cdn$ in thousands)	2017			2016			Change
Current income tax expense		405			836			(431	)
Deferred income tax expense		4,702			8,025			(3,323	)
		5,107			8,861			(3,754	)
Effective tax rate		204.9	%		63.4	%		141.5	%
Canadian statutory rate		26	%		26	%		—
B.C. Mineral tax rate		9.6	%		9.6	%		—

The income tax expense for the fourth quarter of 2017 decreased from the same quarter in 2016 due to lower earnings, amongst other factors. The current tax expense was due to the BC mineral taxes payable estimate. For deferred income tax, the expense was driven by a reversal of temporary differences as tax pools were applied against taxable income in the quarter, including deductions taken for tax purposes on property, plant and equipment in excess of those taken for accounting purposes.

Liquidity, cash flow and capital resources

Cash flow provided by operations during the three months ended December 31, 2017 was $31.9 million compared to $49.7 million for the same period in 2016. Cash used for investing activities during the three months ended December 31, 2017 was $29.1 million compared to cash outflow of $9.3 million for the same period in 2016. Investing activities in the fourth quarter of 2017 included $17.5 million for capitalized stripping costs, $3.5 million incurred on other capital expenditures for Gibraltar, $5.3 million on construction of the PTF at Florence, $1.8 million on other project costs for the Florence and Aley projects, and $1.0 million for the purchase of copper put options.

Cash used for financing activities during the three months ended December 31, 2017 includes an interest payment on the senior notes of $14.6 million and $4.4 million of payments for capital leases and equipment loans, offset by proceeds of $0.4 million from the exercise of stock options.

25

TASEKO MINES LIMITED

Management’s Discussion and Analysis

SUMMARY OF QUARTERLY RESULTS

(Cdn$ in thousands,	2017									2016
except per share amounts)	Q4			Q3		Q2		Q1		Q4		Q3			Q2			Q1
Revenues		95,408			78,508		99,994		104,389		94,628		55,964			55,090			58,183
Net earnings (loss)		(7,600	)		20,136		5,247		16,479		5,113		(15,610	)		(19,384	)		(1,515	)
Basic EPS		(0.03	)		0.09		0.02		0.07		0.02		(0.07	)		(0.09	)		(0.01	)
Adjusted net earnings (loss) *		(1,544	)		13,405		14,305		15,254		16,404		(10,423	)		(19,758	)		(18,083	)
Adjusted basic EPS *		(0.01	)		0.06		0.06		0.07		0.07		(0.05	)		(0.09	)		(0.08	)
EBITDA *		22,350			48,457		43,805		49,145		32,312		4,064			(7,858	)		11,002
Adjusted EBITDA *		28,639			42,356		42,820		47,934		44,477		9,285			(7,642	)		(4,492	)
(US$ per pound, except where indicated)
Realized copper price *		3.30			3.00		2.61		2.72		2.54		2.15			2.13			2.12
Total operating costs *		2.11			1.18		1.31		1.33		1.48		1.89			2.07			2.11
Copper sales (million pounds)		24.0			22.6		30.5		30.6		30.3		22.4			22.8			22.9

* Non-GAAP performance measure. See page 31 of this MD&A

Financial results for the last eight quarters include the impact of volatile copper prices and foreign exchange rates that impact realized sale prices, and variability in the quarterly sales volumes due to 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 2017 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 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 and recovery of deferred tax assets.

Other significant areas of estimation include reserve and resource estimation; valuations of mineral properties and investments; ore stock piles and finished inventory quantities; plant and equipment lives; tax provisions; provisions for environmental rehabilitation; valuation of financial instruments and derivatives; deferred 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.

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.

26

TASEKO MINES LIMITED

Management’s Discussion and Analysis

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.

CHANGE IN ACCOUNTING POLICIES

The Company has not applied the following revised or new IFRS that have been issued but were not yet effective at December 31, 2017:

• In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments to replace IAS 39, Financial Instruments: Recognition and Measurement. IFRS 9 includes requirements for recognition and measurement of financial instruments, a forward-looking “expected credit loss” impairment model and significant changes to general hedge accounting. IFRS 9 is effective for annual periods beginning on or after January 1, 2018, with early adoption permitted. The Company has completed its preliminary assessment and believes that the adoption of IFRS 9 will result in changes to the classification of certain financial assets but will not change the classification of any financial liabilities. The Company plans to adopt IFRS 9 in its financial statements for the annual period beginning January 1, 2018 and continues to evaluate its measurement and disclosure requirements related to the new standard.

• In May 2014, the IASB issued IFRS 15 Revenue from Contracts with Customers. The standard is effective for annual periods beginning on or after January 1, 2018 with early adoption permitted. The standard contains a single five-step model that applies to contracts with customers and two approaches to recognizing revenue: at a point in time, when control of the goods or services is transferred to the customer; or over time, in a manner that best reflects the entity’s performance. New estimates and judgmental thresholds have been introduced, which may affect the amount and/or timing of revenue recognized. The Company is currently evaluating the potential impact of applying IFRS 15, primarily analyzing its concentrate sales agreements with customers and its silver stream purchase and sale agreement. The Company plans to adopt IFRS 15 in its financial statements for the annual period beginning on January 1, 2018 and continues to evaluate its measurement and disclosure requirements related to the new standard.

• In January 2016, the IASB issued IFRS 16 Leases. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, i.e. the customer (‘lessee’) and the supplier (‘lessor’). IFRS 16 is effective for annual periods beginning on or after January 1, 2019. A company can choose to apply IFRS 16 before that date but only if it also applies IFRS 15 Revenue from Contracts with Customers. Upon adoption of IFRS 16, the Company anticipates it will record a material balance of lease assets and associated lease liabilities related to leases on the Consolidated Balance Sheet at January 1, 2019. The Company plans to apply IFRS 16 at the date it becomes effective and has not yet quantified the impact of this standard on its consolidated financial statements.

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:

27

TASEKO MINES LIMITED

Management’s Discussion and Analysis

(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 2017 financial year that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting and disclosure.

The Company’s management, under the supervision of the Chief Executive Officer and the Chief Financial Officer, assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2017. In making this assessment, it used the criteria set forth in the Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this assessment, management has concluded that, as of December 31, 2017, the Company’s internal control over financial reporting is effective based on those criteria.

FINANCIAL INSTRUMENTS

The Company uses a mixture of cash, long-term debt and shareholders’ equity to maintain an efficient capital allocation and ensure adequate liquidity exists to meet the ongoing cash requirements of the business. In the normal course of business, the Company is inherently exposed to financial risks, including market risk, commodity price risk, interest rate risk, currency risk, liquidity risk and credit risk. The Company manages these risks in accordance with its risk management policies. To mitigate some of these inherent business risks, the Company uses commodity derivative instruments that do not qualify for hedge accounting treatment. These non-hedge derivatives are summarized in Note 7 to the consolidated financial statements. The financial risks and the Company’s exposure to these risks, is provided in various tables in Note 25 of the consolidated financial statements. For a discussion on the methods used to value financial instruments, as well as significant assumptions, refer also to Notes 2 and 25 of the consolidated financial statements.    

28

TASEKO MINES LIMITED

Management’s Discussion and Analysis

Summary of Financial Instruments	Carrying Amount		Associated Risks
Financial assets
Loans and receivables
Cash and equivalents		80,231		Interest rate Credit
Accounts receivable		21,618		Credit Market
Available-for-sale
Marketable securities		2,444		Market
Investment in subscription receipts		2,400		Market
Reclamation deposits		30,637		Market
Fair value through profit and loss (FVTPL)
Copper put option contracts		330		Credit Market
Financial liabilities
Accounts payable and accrued liabilities		47,382		Currency Interest rate
Senior secured notes		302,085		Currency
Capital leases		23,761		Interest rate
Secured equipment loans		3,372		Currency Interest rate

RELATED PARTY TRANSACTIONS

Key management personnel

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

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 from9-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 24-months’ to 32-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 22 of the consolidated financial statements).

29

TASEKO MINES LIMITED

Management’s Discussion and Analysis

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

	Year ended December 31,
(Cdn$ in thousands)	2017		2016
Salaries and benefits		5,015		5,050
Post-employment benefits		1,491		1,309
Share-based compensation		6,849		3,602
		13,355		9,961

Other related parties

Three directors of the Company are also principals of Hunter Dickinson Services Inc. (“HDSI”), a private company. HDSI invoices the Company for their executive services (director fees) and for other services provided by HDSI. For the year ended December 31, 2017, the Company incurred total costs of $1,399 (2016: $1,440) in transactions with HDSI. Of these, $593 (2016: $643) related to administrative, legal, exploration and tax services, $526 related to reimbursements of office rent costs (2016: $517), and $280 (2016: $280) related to director fees for two Taseko directors who are also principals of HDSI.

Under the terms of the joint venture operating agreement, the Gibraltar Joint Venture pays the Company a management fee for services rendered by the Company as operator of the Gibraltar Mine. In addition, the Company pays certain expenses on behalf of the Gibraltar Joint Venture and invoices the Joint Venture for these expenses.

30

TASEKO MINES LIMITED

Management’s Discussion and Analysis

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. Site operating costs is calculated by removing net changes in inventory and depletion and amortization and transportation costs from cost of sales. Site operating costs, net of by-product credits is calculated by removing 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.

	Three months ended December 31,						Year ended December 31,
(Cdn$ in thousands, unless otherwise indicated) – 75% basis	2017			2016			2017			2016
Cost of sales		77,273			57,235			248,305			262,089
Less:
Depletion and amortization		(14,561	)		(9,224	)		(47,722	)		(52,939	)
Net change in inventories of finished goods		(5,392	)		(3,679	)		302			272
Net change in inventories of ore stockpiles		(8,006	)		11,261			(14,266	)		16,466
Transportation costs		(4,074	)		(5,358	)		(19,281	)		(16,507	)
Site operating costs		45,240			50,235			167,338			209,381
Less by-product credits:
Molybdenum, net of treatment costs		(4,016	)		(3,689	)		(16,883	)		(4,400	)
Silver, excluding amortization of deferred revenue		(173	)		(1,018	)		(810	)		(3,988	)
Site operating costs, net of by-product credits		41,051			45,528			149,645			200,993
Total copper produced (thousand pounds)		19,094			30,512			105,874			99,938
Total costs per pound produced		2.15			1.49			1.41			2.01
Average exchange rate for the period (CAD/USD)		1.27			1.33			1.30			1.32
Site operating costs, net of by-product credits (US$ per pound)		1.69			1.12			1.09			1.52
Site operating costs, net of by-product credits		41,051			45,528			149,645			200,993
Add off-property costs:
Treatment and refining costs of copper concentrate		6,172			9,454			28,072			27,924
Transportation costs		4,074			5,358			19,281			16,507
Total operating costs		51,297			60,340			196,998			245,424
Total operating costs (C1) (US$ per pound)		2.11			1.48			1.43			1.85

31

TASEKO MINES LIMITED

Management’s Discussion and Analysis

Adjusted net income (loss)

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

• Unrealized foreign currency gains/losses;

• Write-down of mine equipment;

• Write-down of investment;

• Unrealized gain/loss on copper put options;

• Loss on settlement of long-term debt;

• Gain/loss on copper call option; and

• Non-recurring transactions, including related tax adjustments.

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.

	Three months ended December 31,						Year ended December 31,
($ in thousands, except per share amounts)	2017			2016			2017			2016
Net income (loss)		(7,600	)		5,113			34,262			(31,396	)
Unrealized foreign exchange (gain) loss		1,541			8,802			(17,684	)		(7,785	)
Write-down of mine equipment		—			—			3,551			—
Write-down of investment		3,850			—			3,850			—
Unrealized loss on copper put options		898			477			1,970			1,044
Loss on settlement of long-term debt		—			—			13,102			—
Loss on copper call option		—			2,886			6,305			3,360
Other non-recurring expenses*		—			—			—			5,489
Estimated tax effect of adjustments		(233	)		(874	)		(3,936	)		(2,572	)
Adjusted net income (loss)		(1,544	)		16,404			41,420			(31,860	)
Adjusted EPS		(0.01	)		0.07			0.18			(0.14	)

* Other non-recurring expenses includes legal and other advisory costs associated with the special shareholder meeting, the proxy contest and related litigation, and other non-recurring financing costs.

EBITDA and adjusted EBITDA

EBITDA represents net earnings before interest, income taxes, and depreciation. EBITDA is presented because it is an important supplemental measure of our performance and is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the industry, many of which present EBITDA when reporting their results. Issuers of “high yield” securities also present EBITDA because investors, analysts and rating agencies consider it useful in measuring the ability of those issuers to meet debt service obligations. The Company believes EBITDA is an appropriate supplemental measure of debt service capacity, because cash expenditures on interest are, by definition, available to pay interest, and tax expense is inversely correlated to interest expense because tax expense goes down as deductible interest expense goes up; depreciation is a non-cash charge.

32

TASEKO MINES LIMITED

Management’s Discussion and Analysis

Adjusted EBITDA is presented as a further supplemental measure of the Company’s performance and ability to service debt. Adjusted EBITDA is prepared by adjusting EBITDA to eliminate the impact of a number of items that are not considered indicative of ongoing operating performance.

Adjusted EBITDA is calculated by adding to EBITDA certain items of expense and deducting from EBITDA certain items of income that are not likely to recur or are not indicative of the Company’s future operating performance consisting of:

• Unrealized foreign exchange gains/losses;

• Write-down of mine equipment;

• Write-down of investment;

• Unrealized gain/loss on copper put options;

• Gain/loss on copper call option; and

• Non-recurring transactions.

While some of the adjustments are recurring, other non-recurring expenses do not reflect the underlying performance of the Company’s core mining business and are not necessarily indicative of future results. Furthermore, unrealized gains/losses on derivative instruments, and unrealized foreign currency translation gains/losses are not necessarily reflective of the underlying operating results for the reporting periods presented.

	Three months ended December 31,						Year ended December 31,
($ in thousands)	2017			2016			2017			2016
Net income (loss)		(7,600	)		5,113			34,262			(31,396	)
Add:
Depletion and amortization		14,561			9,225			47,722			53,024
Share-based compensation expense		1,321			1,382			7,100			3,682
Finance expense		8,692			8,028			46,430			30,007
Finance (income) loss		269			(297	)		(935	)		(1,084	)
Income tax (recovery) expense		5,107			8,861			29,178			(14,713	)
EBITDA		22,350			32,312			163,757			39,520
Adjustments:
Unrealized foreign exchange (gain) loss		1,541			8,802			(17,684	)		(7,785	)
Write-down of mine equipment		—			—			3,551			—
Write-down of investment		3,850			—			3,850			—
Unrealized loss on copper put option		898			477			1,970			1,044
Loss on copper call option		—			2,886			6,305			3,360
Other non-recurring expenses*		—			—			—			5,489
Adjusted EBITDA		28,639			44,477			161,749			41,628

* Other non-recurring expenses includes legal and other advisory costs associated with the special shareholder meeting, the proxy contest and related litigation, and other non-recurring financing costs.

33

TASEKO MINES LIMITED

Management’s Discussion and Analysis

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.

	Three months ended December 31,				Year ended December 31,
(Cdn$ in thousands)	2017		2016		2017		2016
Earnings from mining operations		18,135		37,393		129,994		1,776
Add:
Depletion and amortization		14,561		9,224		47,722		52,939
Earnings from mining operations before depletion and amortization		32,696		46,617		177,716		54,715

Site operating costs per ton milled

	Three months ended December 31,				Year ended December 31,
(Cdn$ in thousands, except per ton milled amounts)	2017		2016		2017		2016
Site operating costs (included in cost of sales)		45,240		50,235		167,338		209,381
Tons milled (thousands) (75% basis)		5,887		5,504		22,367		22,115
Site operating costs per ton milled	$	7.68	$	9.13	$	7.48	$	9.47

34

EX-99.8

Exhibit 99.8

KPMG LLP Chartered Professional Accountants PO Box 10426 777 Dunsmuir Street Vancouver BC V7Y 1K3 Canada Telephone Fax Internet (604) 691-3000 (604) 691-3031 www.kpmg.ca

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors

Taseko Mines Limited

We consent to the use of our reports, each dated February 20, 2018, with respect to the consolidated financial statements and the effectiveness of internal control over financial reporting included in this annual report on Form 40-F.

We also consent to the incorporation by reference of such reports in the Registration Statement (No. 333-221902) on Form F-10 of Taseko Mines Limited filed with the United States Securities and Exchange Commission.

//s// KPMG LLP

Chartered Professional Accountants

March 26, 2018

Vancouver, Canada

KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

KPMG Canada provides services to KPMG LLP.

EX-99.9

Exhibit 99.9

March 26, 2018

VIA EDGAR

To: United States Securities and Exchange Commission

Re: Taseko Mines Limited (the “Company”)

Annual Report on Form 40-F

Consent of Expert

This consent is provided in connection with the Company’s annual report on Form 40-F report for the year ended December 31, 2017 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2017 (the “AIF”).

I hereby consent to the use of my name in connection with reference to my involvement in the preparation of the following technical reports (the “Technical Reports”):

• Technical Report on the 344 million tonne increase in mineral reserves at the Prosperity Gold – Copper Project, British Columbia, Canada dated December 17, 2009

• Technical Report on Mineral Reserves at the Aley Project, British Columbia, Canada dated October 30, 2014, amended and restated December 4, 2017

• Technical Report on the Mineral Reserve Update at the Gibraltar Mine, British Columbia, Canada dated June 15, 2015

and to references to the Technical Reports, or portions thereof, in the Annual Report and the AIF and to the inclusion and incorporation by reference of the information derived from the Technical Reports in the Annual Report and the AIF.

Yours truly,

/s/ S. Jones

Scott Jones, P.Eng., Vice President, Engineering

1

EX-99.10

Exhibit 99.10

Ronald G. Simpson, P.Geo.

GeoSim Services Inc.

807 Geddes Road

Roberts Creek, B.C. Canada, V0N 2W6

Telephone: 604 733-7970

Email: rsimpson@geosimservices.com

March 26, 2018

VIA EDGAR

To: United States Securities and Exchange Commission

Re: Taseko Mines Limited (the “Company”)

Annual Report on Form 40-F

Consent of Expert

This consent is provided in connection with the Company’s annual report on Form 40-F report for the year ended December 31, 2017 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2017 (the “AIF”).

I hereby consent to the use of my name in connection with reference to my involvement in the preparation of the following technical report (the “Technical Report”):

• Technical Report on Mineral Reserves at the Aley Project, British Columbia, Canada dated October 30, 2014, amended and restated December 4, 2017

and to references to the Technical Report, or portions thereof, in the Annual Report and the AIF and to the inclusion and incorporation by reference of the information derived from the Technical Reports in the Annual Report and the AIF.

Yours truly,

/s/ R. G. Simpson

Ronald G. Simpson, P.Geo.

EX-99.11

Exhibit 99.11

March 26, 2018

VIA EDGAR

To: United States Securities and Exchange Commission

Re: Taseko Mines Limited (the “Company”)

Annual Report on Form 40-F

Consent of Expert

This consent is provided in connection with the Company’s annual report on Form 40-F report for the year ended December 31, 2017 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2017 (the “AIF”).

I hereby consent to the use of my name in connection with reference to my involvement in the preparation of the following technical report (the “Technical Report”):

• Technical Report on Mineral Reserves at the Aley Project, British Columbia, Canada dated October 30, 2014, amended and restated December 4, 2017

and to references to the Technical Report, or portions thereof, in the Annual Report and the AIF and to the inclusion and incorporation by reference of the information derived from the Technical Report in the Annual Report and the AIF.

Yours truly,

/s/ K. Merriam

Keith Merriam, P.Eng., Manager, Process Engineering

1

EX-99.12

Exhibit 99.12

March 26, 2018

VIA EDGAR

To: United States Securities and Exchange Commission

Re: Taseko Mines Limited (the “Company”)

Annual Report on Form 40-F

Consent of Expert

This consent is provided in connection with the Company’s annual report on Form 40-F report for the year ended December 31, 2017 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2017 (the “AIF”).

I hereby consent to the use of my name in connection with reference to my involvement in the preparation of the following technical report (the “Technical Report”):

• Technical Report on Mineral Reserves at the Aley Project, British Columbia, Canada dated October 30, 2014, amended and restated December 4, 2017

and to references to the Technical Report, or portions thereof, in the Annual Report and the AIF and to the inclusion and incorporation by reference of the information derived from the Technical Report in the Annual Report and the AIF.

Yours truly,

/s/ R. Rotzinger

Robert Rotzinger, P.Eng., Vice President, Capital Projects

1

EX-99.13

Exhibit 99.13

Greg Yelland, P.Eng.

Yelland Engineering Services

6803 Hycroft Rd., West Vancouver, B.C. Canada, V7W 2K7

Telephone: 604-926-1677

Email: gjyelland@gmail.com

March 26, 2018

VIA EDGAR

To: United States Securities and Exchange Commission

Re: Taseko Mines Limited (the “Company”)

Annual Report on Form 40-F

Consent of Expert

This consent is provided in connection with the Company’s annual report on Form 40-F report for the year ended December 31, 2017 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2017 (the “AIF”).

I hereby consent to the use of my name in connection with reference to my involvement in the preparation of the following technical report (the “Technical Report”):

• Technical Report on Mineral Reserves at the Aley Project, British Columbia, Canada dated October 30, 2014, amended and restated December 4, 2017

and to references to the Technical Report, or portions thereof, in the Annual Report and the AIF and to the inclusion and incorporation by reference of the information derived from the Technical Report in the Annual Report and the AIF.

Yours truly,

/s/ G. Yelland

Greg Yelland, P.Eng.

1

EX-99.14

Exhibit 99.14

March 26, 2018

VIA EDGAR

To: United States Securities and Exchange Commission

Re: Taseko Mines Limited (the “Company”)

Annual Report on Form 40-F

Consent of Expert

This consent is provided in connection with the Company’s annual report on Form 40-F report for the year ended December 31, 2017 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2017 (the “AIF”).

I hereby consent to the use of my name in connection with reference to my involvement in the preparation of the following technical reports (the “Technical Reports”):

• Florence Copper Project, NI 43-101 Technical Report, Florence, Pinal County, Arizona, USA dated February 28, 2017, amended and restated December 4, 2017

and to references to the Technical Report, or portions thereof, in the Annual Report and the AIF and to the inclusion and incorporation by reference of the information derived from the Technical Report in the Annual Report and the AIF.

Yours truly,

/s/ Dan Johnson

Dan Johnson, P.E.

1

EX-99.15

Exhibit 99.15

SUPPLEMENTAL INDENTURE

SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of March 26, 2018, among Taseko Holdings Ltd, a taxable Canadian corporation (the “Guaranteeing Subsidiary”) incorporated under the laws of British Columbia, Canada, as a subsidiary of Taseko Mines Limited (or its permitted successor), a company incorporated under the laws of British Columbia, Canada (the “Company”), the Company, the other Guarantors (as defined in the Indenture referred to herein), The Bank of New York Mellon, a New York banking corporation, as U.S. trustee (the “U.S. Trustee”) and BNY Trust Company of Canada, a trust company organized under the laws of Canada, as Canadian co-trustee (the “Canadian Co-Trustee” and together with the U.S. Trustee, the “Trustees”).

W I T N E S S E T H

WHEREAS, the Company has heretofore executed and delivered to the Trustees an indenture (the “Indenture”), dated as of June 14, 2017 providing for the issuance of 8.750% Senior Secured Notes due 2022 (the “Notes”);

WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiary shall execute and deliver to the Trustees a supplemental indenture pursuant to which the Guaranteeing Subsidiary shall unconditionally guarantee all of the Company’s Obligations under the Notes and the Indenture on the terms and conditions set forth herein (the “Guarantee”); and

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustees are authorized to execute and deliver this Supplemental Indenture.

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable

consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiary and the Trustees mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:

1. CAPITALIZED TERMS. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

2. AGREEMENT TO GUARANTEE. The Guaranteeing Subsidiary hereby agrees to provide an unconditional Guarantee on the terms and subject to the conditions set forth in the Guarantee and in the Indenture including but not limited to Article 11 thereof, and subject to the limitations therein.

3. NO RECOURSE AGAINST OTHERS. No director, officer, employee, incorporator or

stockholder of the Company or any Guarantor, as such, will have any liability for any obligations of the Company or the Guarantors under the Notes, the Indenture or the Guarantees or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of

Notes by accepting a Note waives and releases all such liability. The waiver and release are part

of the consideration for issuance of the Notes. The waiver may not be effective to waive liabilities under the federal securities laws.

4. NEW YORK LAW TO GOVERN. THE LAWS OF THE STATE OF NEW YORK

SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE.

5. COUNTERPARTS. The parties may sign any number of copies of this Supplemental

Indenture. Each signed copy shall be an original, but all of them together represent the same agreement.

6. EFFECT OF HEADINGS. The Section headings herein are for convenience only and shall not affect the construction hereof.

7. THE TRUSTEES. The Trustees shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiary and the Company

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, all as of the date first above written.

Dated: March 26, 2018

TASEKO HOLDINGS LTD.
By:	/s/ Stuart McDonald
Name:	Stuart McDonald
Title:	Chief Financial Officer

[Signature Page to Supplemental Indenture]

TASEKO MINES LIMITED
By:	/s/ Stuart McDonald
Name:	Stuart McDonald
Title:	Chief Financial Officer

[Signature Page to Supplemental Indenture]

CURIS RESOURCES LTD.
By:	/s/ Stuart McDonald
Name:	Stuart McDonald
Title:	Chief Financial Officer

[Signature Page to Supplemental Indenture]

CURIS HOLDINGS (CANADA) LTD.
By:	/s/ Stuart McDonald
Name:	Stuart McDonald
Title:	Chief Financial Officer

[Signature Page to Supplemental Indenture]

ALEY CORPORATION
By:	/s/ Trevor Thomas
Name:	Trevor Thomas
Title:	Director

[Signature Page to Supplemental Indenture]

GIBRALTAR MINES LTD.
By:	/s/ Stuart McDonald
Name:	Stuart McDonald
Title:	Chief Financial Officer

[Signature Page to Supplemental Indenture]

FLORENCE COPPER INC.
By:	/s/ Stuart McDonald
Name:	Stuart McDonald
Title:	Chief Financial Officer

[Signature Page to Supplemental Indenture]

THE BANK OF NEW YORK MELLON, as U.S. Trustee
By:	/s/ Bret S. Derman
	Name: Bret S. Derman
	Title: Vice President

[Signature Page to Supplemental Indenture]

BNY TRUST COMPANY OF CANADA, as Canadian Co-Trustee and Collateral Agent
By:	/s/ Bret S. Derman
	Name: Bret S. Derman
	Title: Authorized Signing Officer

[Signature Page to Supplemental Indenture]

XML

Document and Entity Information	12 Months Ended
	Dec. 31, 2017 shares
Document - Document and Entity Information [Abstract]
Document Type	40-F
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Trading Symbol	TGB
Entity Registrant Name	TASEKO MINES LTD
Entity Central Index Key	0000878518
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding	226,999,734

XML

Consolidated Statements of Comprehensive Income (Loss) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Operating expenses from mining business [abstract]
Revenues	$ 378,299	$ 263,865
Cost of sales
Production costs	(200,583)	(209,150)
Depletion and amortization	(47,722)	(52,939)
Earnings from mining operations	129,994	1,776
General and administrative	(12,775)	(11,299)
Share-based compensation	(6,983)	(3,619)
Exploration and evaluation	(1,730)	(2,087)
Loss on derivatives	(10,082)	(6,360)
Other income (expenses)	(6,341)	(4,072)
Income (loss) before financing costs and income taxes	92,083	(25,661)
Finance expenses	(46,430)	(30,007)
Finance income	935	1,084
Foreign exchange gains	16,852	8,475
Income (loss) before income taxes	63,440	(46,109)
Income tax (expense) recovery	(29,178)	14,713
Net earnings (loss)	34,262	(31,396)
Other comprehensive income (loss):
Unrealized loss on available-for-sale financial assets, before tax	(4,248)	(32)
Tax recovery		516
Foreign currency translation reserve	(7,720)	(3,709)
Total other comprehensive loss	(11,968)	(3,225)
Total comprehensive income (loss)	$ 22,294	$ (34,621)
Earnings (loss) per share
Basic	$ 0.15	$ (0.14)
Diluted	$ 0.15	$ (0.14)
Weighted average shares outstanding (thousands)
Basic	225,682	221,828
Diluted	232,039	221,828

XML

Consolidated Statements of Cash Flows - CAD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Operating activities
Net income (loss) for the year	$ 34,262,000	$ (31,396,000)
Adjustments for:
Depletion and amortization	47,722,000	53,024,000
Income tax expense (recovery)	29,178,000	(14,713,000)
Share-based compensation expense	7,100,000	3,682,000
Loss on derivatives	10,082,000	6,360,000
Finance expenses, net	45,495,000	28,923,000
Unrealized foreign exchange gains	(17,684,000)	(7,785,000)
Write-down of mine equipment	3,551,000
Deferred revenue deposit	44,151,000
Amortization of deferred revenue	(1,322,000)
Deferred electricity payments (repayments)	(6,174,000)	10,938,000
Other operating activities	1,097,000	(469,000)
Net change in non-cashworking capital	13,621,000	(14,711,000)
Cash provided by operating activities	211,079,000	33,853,000
Investing activities
Purchase of property, plant and equipment	(97,223,000)	(18,843,000)
Purchase of copper put options	(3,952,000)	(3,777,000)
Proceeds from copper put options		3,371,000
Investment in other financial assets	(1,395,000)
Other investing activities	758,000	158,000
Cash used for investing activities	(101,812,000)	(19,091,000)
Financing activities
Net proceeds from issuance of senior secured notes	317,596,000
Repayment of senior notes	(264,180,000)
Repayment of senior secured credit facility	(92,463,000)
Settlement of copper call option	(15,745,000)
Interest paid	(43,995,000)	(22,668,000)
Repayment of capital leases and equipment loans	(17,074,000)	(16,586,000)
Proceeds on exercise of options and warrants	2,928,000	22,000
Proceeds from senior secured credit facility		93,605,000
Financing costs for senior secured credit facility		(4,346,000)
Repayment of Curis secured loan		(43,767,000)
Cash provided by (used for) financing activities	(112,933,000)	6,260,000
Effect of exchange rate changes on cash and equivalents	(5,133,000)	(513,000)
Increase (decrease) in cash and equivalents	(8,799,000)	20,509,000
Cash and equivalents, beginning of year	89,030,000	68,521,000
Cash and equivalents, end of year	$ 80,231,000	$ 89,030,000

XML

Consolidated Balance Sheets - CAD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current assets
Cash and equivalents	$ 80,231	$ 89,030
Accounts receivable	21,618	12,905
Other financial assets	2,774	1,574
Inventories	39,639	60,550
Prepaids	1,474	1,268
Current assets	145,736	165,327
Property, plant and equipment	797,265	730,208
Other financial assets	40,537	48,368
Goodwill	5,172	5,536
Total assets	988,710	949,439
Current liabilities
Accounts payable and other liabilities	47,382	33,416
Current income tax payable	302	889
Current portion of long-term debt	11,270	16,157
Current portion of deferred revenue	1,312
Interest payable on senior notes	1,143	4,336
Current liabilities	61,409	54,798
Long-term debt	317,948	373,133
Provision for environmental rehabilitation ("PER")	107,874	98,454
Deferred and other tax liabilities	89,045	62,202
Deferred revenue	39,640
Other financial liabilities	5,714	21,913
Total liabilities	621,630	610,500
EQUITY
Share capital	422,091	417,975
Contributed surplus	47,478	45,747
Accumulated other comprehensive income ("AOCI")	389	12,357
Deficit	(102,878)	(137,140)
Total equity	367,080	338,939
Total equity and liabilities	$ 988,710	$ 949,439

XML

Consolidated Statements of Changes in Equity - CAD ($) $ in Thousands	Total	Share capital [member]	Share premium [member]	AOCI [member]	Deficit [member]
Beginning balance at Dec. 31, 2015	$ 370,340	$ 417,944	$ 42,558	$ 15,582	$ (105,744)
Issuance of warrants	830		830
Share-based compensation	2,368		2,368
Exercise of options	22	31	(9)
Total comprehensive income (loss) for the year	(34,621)			(3,225)	(31,396)
Ending balance at Dec. 31, 2016	338,939	417,975	45,747	12,357	(137,140)
Issuance of warrants	1,876		1,876
Share-based compensation	2,919		2,919
Exercise of options and warrants	2,928	4,116	(1,188)
Settlement of performance share units	(1,876)		(1,876)
Total comprehensive income (loss) for the year	22,294			(11,968)	34,262
Ending balance at Dec. 31, 2017	$ 367,080	$ 422,091	$ 47,478	$ 389	$ (102,878)

XML

Reporting Entity

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Reporting Entity

1. REPORTING ENTITY

Taseko Mines Limited (the “Company” or “Taseko”) is a corporation governed by the British Columbia Business Corporations Act. The consolidated financial statements of the Company as at and for the year ended December 31, 2017 comprise the Company, its subsidiaries and its 75% interest in the Gibraltar joint venture since its formation on March 31, 2010. The Company is principally engaged in the production and sale of metals, as well as related activities including exploration and mine development, within the province of British Columbia, Canada and the State of Arizona, USA. Seasonality does not have a significant impact on the Company’s operations.

XML

Basis of Preparation

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Basis of Preparation

2. BASIS OF PREPARATION

2.1 Statement of compliance

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

These consolidated financial statements were authorized for issue by the Board of Directors on February 20, 2018.

2.2 Basis of measurement, judgment and estimation

These consolidated financial statements have been prepared on a historical cost basis except for fair-value-through-profit-or-loss, available-for-sale and derivative financial instruments, which are measured at fair value.

These consolidated financial statements are presented in Canadian dollars, which is the Company’s functional currency. Foreign currency monetary assets and liabilities are translated into Canadian dollars at the closing exchange rate as at the balance sheet date. Foreign currency non-monetary assets and liabilities, revenues and expenses are translated into Canadian dollars at the prevailing rate of exchange on the dates of the transactions. Any gains and losses are included in profit and loss. The Company’s US subsidiary measures the items in its financial statements using the US dollar as its functional currency. The assets and liabilities of the US subsidiary are translated into Canadian dollars using the period end exchange rate. The income and expenses are translated into Canadian dollars at the weighted average exchange rates to the period end reporting date. Any gains and losses on translation are included in accumulated other comprehensive income (“AOCI”). All financial information presented in Canadian dollars has been rounded to the nearest thousand, unless otherwise noted.

The preparation of these consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies 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 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; finished and in-process inventory quantities; plant and equipment lives; tax provisions; provisions for environmental rehabilitation; valuation of financial instruments and derivatives; deferred 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.

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.

2.3 Basis of consolidation

The consolidated financial statements comprise the financial statements of the Company and controlled entities as at December 31, 2017. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of comprehensive income (loss) from the date the Company gains control until the date the Company ceases to control the subsidiary. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Company’s accounting policies. All intercompany assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Company are eliminated in full on consolidation.

The Company applies the acquisition method in accounting for business combinations. The consideration transferred by the Company to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities incurred and the equity interests issued by the Company, which includes the fair value of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred.

The Company recognizes identifiable assets acquired and liabilities assumed in a business combination regardless of whether they have been previously recognized in the acquiree’s financial statements prior to the acquisition. Assets acquired and liabilities assumed are generally measured at their acquisition-date fair values.

Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated as the excess of the sum of a) fair value of consideration transferred, b) the recognized amount of any non-controlling interest in the acquiree and c) acquisition-date fair value of any existing equity interest in the acquiree, over the acquisition-date fair values of identifiable net assets. If the fair values of identifiable net assets exceed the sum calculated above, the excess amount would be recognized in profit or loss immediately.

2.4 Significant Accounting Policies

(a) Revenue recognition

Revenue is recognized when the significant risks and rewards of ownership have been transferred and the amount of revenue is reasonably determinable. These conditions are generally satisfied when title passes to the customer. Cash received in advance of meeting these conditions is recorded as deferred revenue.

Under the terms of the Company’s concentrate and cathode sales contracts, the final sales amount is based on final assay results and quoted market prices which may be in a period subsequent to the date of sale. Revenues for these sales, net of treatment and refining charges are recorded at the time of shipment, which is also when the risks and rewards of ownership transfer to the customer, based on an estimate of metal contained using initial assay results and forward market prices on the expected date that final sales prices will be fixed. The period between provisional pricing and final settlement can be up to four months. This provisional pricing mechanism represents an embedded derivative. The embedded derivative is recorded at fair value each reporting period by reference to forward market prices until the date of final pricing, with the changes in fair value recorded as an adjustment to revenue.

(b) Cash and equivalents

Cash and equivalents consist of cash and highly-liquid investments having terms of three months or less from the date of acquisition and that are readily convertible to known amounts of cash. Cash and equivalents exclude cash subject to restrictions.

(c) Financial instruments

Financial assets and liabilities are recognized on the balance sheet when the Company becomes party to the contractual provisions of the instrument. The classification of financial instruments dictates how these assets and liabilities are measured subsequently in the Company’s consolidated financial statements.

Financial instruments at fair value through profit or loss (FVTPL)

Financial instruments are classified as FVTPL when they are held for trading. A financial instrument is held for trading if it was acquired for the purpose of selling in the near term. Derivative financial instruments that are not designated and effective as hedging instruments are classified as FVTPL. Financial instruments classified as FVTPL are stated at fair value with any changes in fair value recognized in earnings for the period. Financial assets in this category include derivative financial instruments that the Company acquires to manage exposure to commodity price fluctuations. These instruments are non-hedge derivative instruments.

Loans and receivables

Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Subsequent to initial recognition, these financial assets are recorded at amortized cost using the effective interest method, except for short-term receivables when the recognition of interest would be immaterial. Accounts receivable are assessed for evidence of impairment at each reporting date, with any impairment recognized in earnings for the period. Financial assets in this category include cash and equivalents and accounts receivable.

Available-for-sale financial assets

Marketable securities, subscription receipts and reclamation deposits are designated as available-for-sale and recorded at fair value. Unrealized gains and losses are recognized in other comprehensive income until the securities are disposed of or when there is evidence of impairment in value. Impairment is evident when there has been a significant or sustained decline in the fair value of the marketable securities. If an impairment in value has been determined, it is recognized in earnings for the period.

Financial liabilities

Financial liabilities are initially recorded at fair value, net of transaction costs, and are subsequently measured at amortized cost using the effective interest method. The Company has accounted for accounts payable and accrued liabilities and long-term debt under this method.

Fair value measurement

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).

(d) Exploration and evaluation

Exploration and evaluation expenditures relate to the initial search for a mineral deposit and the subsequent evaluation to determine the economic potential of the mineral deposit. The exploration and evaluation stage commences when the Company obtains the legal right or license to begin exploration. Exploration and evaluation expenditures are recognized in earnings in the period in which they are incurred.

Capitalization of development costs as mineral property, plant and equipment commences once the technical feasibility and commercial viability of the extraction of mineral reserve and resources associated with the Company’s evaluation properties are established and management has made a decision to proceed with development.

(e) Inventories

Inventories are valued at the lower of cost and net realizable value. Cost is determined on a weighted average basis and includes direct labour and materials; non-capitalized stripping costs; depreciation and amortization; freight; and overhead costs. Net realizable value is determined with reference to relevant market prices, less applicable variable selling costs and estimated remaining costs of completion to bring the inventories into saleable form.

Ore stockpiles represent stockpiled ore and metals in the processing circuits that have not yet completed the production process, and are not yet in a saleable form. Finished goods inventories represent metals in saleable form that have not yet been sold. Materials and supplies inventories represent consumables used in the production process, as well as spare parts and other maintenance supplies that are not classified as capital items.

The quantity of recoverable metal in stockpiled ore and in the processing circuits is an estimate which is based on the tons of ore added and removed, expected grade and recovery. The quantity of recoverable metal in concentrate is an estimate using initial assay results.

(f) Property, plant and equipment

Land, buildings, plant and equipment

Land, buildings, plant and equipment are recorded at cost, including all expenditures incurred to prepare an asset for its intended use.

Repairs and maintenance costs are charged to expense as incurred, except when these repairs significantly extend the life of an asset or result in an operating improvement. In these instances, the portion of these repairs relating to the betterment is capitalized as part of plant and equipment.

Depreciation is based on the cost of the asset less residual value. Where an item of plant and equipment is comprised of major components with different useful lives, the components are accounted for as separate items and depreciated separately. Depreciation commences when an asset is available for use. Estimates of remaining useful lives and residual values are reviewed annually. Changes in estimates are accounted for prospectively.

The depreciation rates of the major asset categories are as follows:

Land	Not depreciated
Buildings	Straight-line basis over 10-25 years
Plant and equipment	Units-of-production basis
Mining equipment	Straight-line basis over 5-20 years
Light vehicles and other mobile equipment	Straight-line basis over 2-5 years
Furniture, computer and office equipment	Straight-line basis over 2-3 years

Mineral properties

Mineral properties consist of the cost of acquiring and developing mineral properties. Once in production, mineral properties are amortized on a units-of-production basis over the component of the ore body to which the capitalized costs relate.

Property acquisition costs arise either as an individual asset purchase or as part of a business combination, and may represent a combination of either proven and probable reserves, resources, or future exploration potential. When management has not made a determination that technical feasibility and commercial viability of extracting a mineral resource are demonstrable, the entire amount is considered property acquisition costs and not amortized. When such property moves into development, the property acquisition cost asset is transferred to mineral properties within property, plant and equipment.

Mineral property development costs include: stripping costs incurred in order to provide initial access to the ore body; stripping costs incurred during production that generate a future economic benefit by increasing the productive capacity, extending the productive life of the mine or allowing access to a mineable reserve; capitalized project development costs; and capitalized interest.

Construction in progress

Construction in progress includes the purchase price and any costs directly attributable to bringing the asset to the location and condition necessary for its intended use. Construction in progress includes advances on long-lead items. Construction in progress is not depreciated. Once the asset is complete and available for use, the costs of construction are transferred to the appropriate category of property, plant and equipment, and depreciation commences.

Capitalized interest

Interest is capitalized for qualifying assets. Qualifying assets are assets that require a substantial period of time to prepare for their intended use. Capitalization ceases when the asset is substantially complete or if construction is interrupted for an extended period. Where the funds used to finance a project form part of general borrowings, the amount capitalized is calculated using a weighted average of rates applicable to relevant general borrowings of the Company during the period.

Leased assets

Leased assets in which the Company receives substantially all the risks and rewards of ownership of the asset are capitalized as finance leases at the lower of the fair value of the asset or the estimated present value of the minimum lease payments. The corresponding lease obligation is recorded within debt on the balance sheet. Assets under operating leases are not capitalized and rental payments are expensed on a straight-line basis.

Impairment

The carrying amounts of the Company’s non-financial assets are reviewed for impairment whenever circumstances suggest that the carrying value may not be recoverable. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. These assessments require the use of estimates and assumptions such as long-term commodity prices, discount rates, future capital requirements, exploration potential and operating performance.

The recoverable amount of an asset or cash generating unit (CGU) is the higher of fair value less costs to sell and value in use. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s-length transaction between knowledgeable and willing parties. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows that are largely independent of the cash flows of other assets or CGU’s. If the recoverable amount of an asset or its related CGU is estimated to be less than its carrying amount, the carrying amount of the asset or CGU is reduced to its recoverable amount and the impairment loss is recognized in earnings for the period.

Where an impairment loss subsequently reverses, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount, but not to an amount that exceeds the carrying amount that would have been determined had no impairment loss been recognized for the asset or CGU in prior years. A reversal of an impairment loss is recognized immediately in earnings.

(g) Income taxes

Income tax on the earnings for the periods presented comprises current and deferred tax. Income tax is recognized in earnings except to the extent that it relates to items recognized directly in equity or in other comprehensive income. Income tax is calculated using tax rates enacted or substantively enacted at the reporting date applicable to the period of expected realization or settlement.

Current tax expense is the expected tax payable on the taxable income for the year, adjusted for amendments to tax payable with regards to previous years.

Deferred tax is determined using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: the initial recognition of assets or liabilities acquired (not in a business combination) that affect neither accounting nor taxable profit on acquisition; and differences relating to investments in subsidiaries, associates, and joint ventures to the extent that they are not probable to reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent it is no longer probable that the related tax benefit will be realized.

(h) Share-based compensation

The fair-value method is used for the Company’s share-based payment transactions. Under this method, the cost of share options and equity-settled performance share units is recorded based on their estimated fair value at the grant date, including an estimate of the forfeiture rate. The fair value of the share options and performance share units is expensed on a graded amortization basis over the vesting period of the awards, with a corresponding increase in equity.

Share-based compensation expense relating to cash-settled awards, including deferred share units, is recognized based on the quoted market value of the Company’s common shares on the date of grant. The related liability is re-measured to fair value each reporting period to reflect changes in the market value of the Company’s common shares, with changes in fair value recorded in net profit (loss).

(i) Provisions

Environmental rehabilitation

The Company records the present value of estimated costs of legal and constructive obligations required to retire an asset in the period in which the obligation occurs. Environmental rehabilitation activities include facility decommissioning and dismantling; removal and treatment of waste materials; site and land rehabilitation, including compliance with and monitoring of environmental regulations; and related costs required to perform this work and/or operate equipment designed to reduce or eliminate environmental effects. The provision for environmental rehabilitation (“PER”) is adjusted each period for new disturbances, and changes in regulatory requirements, the estimated amount of future cash flows required to discharge the liability, the timing of such cash flows and the pre-tax discount rate specific to the liability. The unwinding of the discount is recognized in earnings as a finance cost.

When a PER is initially recognized, the corresponding cost is capitalized by increasing the carrying amount of the related asset, and is amortized to earnings on a unit-of-production basis. Costs are only capitalized to the extent that the amount meets the definition of an asset and represents future economic benefits to the operation.

Significant estimates and assumptions are made in determining the provision for environmental rehabilitation as there are numerous factors that will affect the ultimate liability payable. These factors include estimation of the extent and cost of rehabilitation activities; timing of future cash flows that are impacted by changes in discount rates; inflation rate; and regulatory requirements.

Other provisions

Other provisions are recognized when the Company has a present obligation (legal or constructive) that has arisen as a result of a past event and it is probable that a future outflow of resources will be required to settle the obligation, provided that a reliable estimate can be made of the amount of the obligation. Where the effect is material, the provision is discounted using a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the obligation. The accretion expense is included in finance expense.

(j) Finance income and expenses

Finance income comprises interest income on funds invested, gains on the disposal of marketable securities, and changes in the fair value of derivatives included in cash and equivalents and marketable securities. Interest income is recognized as it accrues in earnings, using the effective interest method. Finance expenses comprise interest expense on borrowings, unwinding of the discount on provisions, losses on the disposal of marketable securities, changes in the fair value of derivatives included in cash and equivalents and marketable securities, and impairment losses recognized on financial assets. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognized in earnings using the effective interest method.

(k) Earnings (loss) per share

The Company presents basic and diluted earnings (loss) per share data for its common shares, calculated by dividing the earnings (loss) attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined by adjusting the earnings attributable to common shareholders and the weighted average number of common shares outstanding for the effects of all dilutive potential common shares, which comprise warrants and share options granted. There is no dilution impact when the Company incurs a loss.

(l) Interests in joint arrangements

IFRS defines a joint arrangement as one over which two or more parties have joint control, which is the contractually agreed sharing of control over an arrangement. This exists only when the decisions about the relevant activities (being those that significantly affect the returns of the arrangement) require the unanimous consent of the parties sharing control.

A joint operation is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities, relating to the arrangement. In relation to its interests in joint operations, the Company recognizes its:

• Assets, including its share of any assets held jointly;

• Liabilities, including its share of any liabilities incurred jointly;

• Revenue from the sale of its share of the output arising from the joint operation; and

• Expenses, including its share of any expenses incurred jointly.

2.6 New accounting standards

The Company has not applied the following revised or new IFRS that have been issued but were not yet effective at December 31, 2017:

• In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments to replace IAS 39, Financial Instruments: Recognition and Measurement. IFRS 9 includes requirements for recognition and measurement of financial instruments, a forward-looking “expected credit loss” impairment model and significant changes to general hedge accounting. IFRS 9 is effective for annual periods beginning on or after January 1, 2018, with early adoption permitted. The Company has completed its preliminary assessment and believes that the adoption of IFRS 9 will result in changes to the classification of certain financial assets but will not change the classification of any financial liabilities. The Company plans to adopt IFRS 9 in its financial statements for the annual period beginning January 1, 2018 and continues to evaluate its measurement and disclosure requirements related to the new standard.

• In May 2014, the IASB issued IFRS 15 Revenue from Contracts with Customers. The standard is effective for annual periods beginning on or after January 1, 2018 with early adoption permitted. The standard contains a single five-step model that applies to contracts with customers and two approaches to recognizing revenue: at a point in time, when control of the goods or services is transferred to the customer; or over time, in a manner that best reflects the entity’s performance. New estimates and judgmental thresholds have been introduced, which may affect the amount and/or timing of revenue recognized. The Company is currently evaluating the potential impact of applying IFRS 15, primarily analyzing its concentrate sales agreements with customers and its silver stream purchase and sale agreement. The Company plans to adopt IFRS 15 in its financial statements for the annual period beginning on January 1, 2018 and continues to evaluate its measurement and disclosure requirements related to the new standard.

• In January 2016, the IASB issued IFRS 16 Leases. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, i.e. the customer (‘lessee’) and the supplier (‘lessor’). IFRS 16 is effective for annual periods beginning on or after January 1, 2019. A company can choose to apply IFRS 16 before that date but only if it also applies IFRS 15 Revenue from Contracts with Customers. Upon adoption of IFRS 16, the Company anticipates it will record a material balance of lease assets and associated lease liabilities related to leases on the Consolidated Balance Sheet at January 1, 2019. The Company plans to apply IFRS 16 at the date it becomes effective and has not yet quantified the impact of this standard on its consolidated financial statements.

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Interest in Gibraltar Joint Venture

12 Months Ended

Dec. 31, 2017

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Interest in Gibraltar Joint Venture

3. INTEREST IN GIBRALTAR JOINT VENTURE

On March 31, 2010, the Company entered into an agreement with Cariboo Copper Corp. (Cariboo) whereby the Company contributed certain assets and liabilities of the Gibraltar mine, operating in British Columbia, into an unincorporated joint venture to acquire a 75% interest in the joint venture. Cariboo contributed $186,800 to purchase the remaining 25% interest.

The assets and liabilities contributed by the Company to the joint venture were mineral property interests, plant and equipment, inventories, prepaid expenses, reclamation deposits, capital lease obligations, and site closure and reclamation obligations. Certain key strategic, operating, investing and financing policies of the joint venture require unanimous approval such that neither venturer is in a position to exercise unilateral control over the joint venture. The Company continues to be the operator of the Gibraltar Mine.

The Company has joint control over the joint arrangement and as such consolidates its 75% portion of all the joint venture’s assets, liabilities, income and expenses.

The following is a summary of the Gibraltar joint venture financial information on a 100% basis.

	As at December 31,
	2017			2016
Cash and equivalents		52,383			79,638
Other current assets		83,323			98,233
Current assets		135,706			177,871
Non-current assets		1,167,787			1,106,866
Accounts payable and accrued liabilities		53,312			38,747
Other current financial liabilities		15,865			23,743
Current liabilities		69,177			62,490
Long-term debt		21,151			20,287
Provision for environmental rehabilitation		142,164			129,487
Other financial liability		—			14,584
Non-current liabilities		163,315			164,358
	Years ended December 31,
	2017			2016
Revenues		507,212			351,820
Production costs		(267,548	)		(278,440	)
Depletion and amortization		(75,428	)		(81,715	)
Other operating expense		(4,632	)		(3,725	)
Write-down of mine equipment		(4,735	)		—
Interest expense		(5,927	)		(6,459	)
Interest income		343			1,158
Foreign exchange gain (loss)		(907	)		22
Net earnings (loss)		148,378			(17,339	)
Other comprehensive income (loss)		90			(693	)
Comprehensive income (loss) for joint arrangement		148,468			(18,032	)

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Revenue

12 Months Ended

Dec. 31, 2017

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Revenue

4. REVENUE

	Years ended December 31,
	2017			2016
Copper contained in concentrate		387,356			283,401
Molybdenum concentrate		21,807			5,900
Silver		2,132			3,988
Total gross revenue		411,295			293,289
Less: Treatment and refining costs		(32,996	)		(29,424	)
Revenue		378,299			263,865

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Cost of Sales

12 Months Ended

Dec. 31, 2017

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Cost of Sales

5. COST OF SALES

	Years ended December 31,
	2017		2016
Site operating costs		167,338		209,381
Transportation costs		19,281		16,507
Changes in inventories of finished goods and ore stockpiles		13,964		(16,738	)
Production costs		200,583		209,150
Depletion and amortization		47,722		52,939
Cost of sales		248,305		262,089

Cost of sales consists of site operating costs (which include personnel costs, mine site supervisory costs, non-capitalized stripping costs, repair and maintenance costs, consumables, operating supplies and external services), transportation costs, and depletion and amortization.

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Compensation Expense

12 Months Ended

Dec. 31, 2017

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Compensation Expense

6. COMPENSATION EXPENSE

	Years ended December 31,
	2017		2016
Wages, salaries and benefits		61,998		57,987
Post-employment benefits		1,491		1,309
Share-based compensation		7,100		3,682
		70,589		62,978

Compensation expense is presented as a component of cost of sales, general and administrative expense, and exploration and evaluation expense.

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Derivative Instruments

12 Months Ended

Dec. 31, 2017

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Derivative Instruments

7. DERIVATIVE INSTRUMENTS

During the year ended December 31, 2017, the Company purchased copper put option contracts for 75 million pounds of copper with maturity dates ranging from the second quarter of 2017 to the second quarter of 2018, at strike prices ranging between US$2.40 and US$2.80 per pound, at a total cost of $3,952. Details of the options outstanding at December 31, 2017 and 2016 are summarized in the following table:

	Notional amount		Strike price		Maturity Date		Fair value asset
At December 31, 2017
Commodity contracts
Copper put option contracts		15 million lbs		US$2.70/lb		Q1 2018		13
Copper put option contracts		15 million lbs		US$2.80/lb		Q2 2018		317
At December 31, 2016
Commodity contracts
Copper put option contracts		20 million lbs		US$2.10/lb and US$2.20/lb		Q1 2017		155

The following table outlines the losses associated with derivative instruments:

	Years ended December 31,
	2017		2016
Realized loss on copper put options		1,807		1,956
Unrealized loss on copper put options		1,970		1,044
Change in fair value of copper call option (Note 17e)		6,305		3,360
		10,082		6,360

In June 2017, the Company settled the copper call option obligation with a payment of $15,745 to the senior secured credit facility lender (see Note 17e).

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Other Expenses (Income)

12 Months Ended

Dec. 31, 2017

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Other Expenses (Income)

8. OTHER EXPENSES (INCOME)

	Years ended December 31,
	2017			2016
Write-down of mine equipment		3,551			—
Write-down of investment (Note 12)		3,850			—
Management fee income		(1,168	)		(1,043	)
Special shareholder meeting costs		—			4,894
Other financing costs		—			616
Other operating expense (income), net		108			(395	)
		6,341			4,072

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Finance Expenses

12 Months Ended

Dec. 31, 2017

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Finance Expenses

9. FINANCE EXPENSES

	Years ended December 31,
	2017		2016
Interest expense		30,965		27,649
Accretion on PER (Note 20)		2,363		2,358
Loss on settlement of long-term debt		13,102		—
		46,430		30,007

As part of a refinancing completed in June 2017, the Company redeemed its US$200 million senior notes and repaid its US$70 million senior secured credit facility (see Note 17). The settlement of long-term debt resulted in a loss of $13,102, which includes a write-off of $9,203 of deferred financing costs relating to the settled debt and additional interest costs of $3,899 which were paid in lieu of notice to the noteholders and senior secured lender.

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Income Tax

12 Months Ended

Dec. 31, 2017

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Income Tax

10. INCOME TAX

(a) Income tax expense (recovery)

	Years ended December 31,
	2017		2016
Current income tax:
Current period expense		1,801		836
Deferred income tax:
Origination and reversal of temporary differences		24,735		(15,307	)
Deferred tax adjustments related to prior periods		2,642		(242	)
		27,377		(15,549	)
Income tax expense (recovery)		29,178		(14,713	)

(b) Effective tax rate reconciliation

	Years ended December 31,
	2017			2016
Income tax at Canadian statutory rate of 35.62% (2016: 35.62%)		22,597			(16,424	)
Permanent differences		4,914			1,979
Tax rate differences		1,192			1,118
Foreign tax rate differential		22			(103	)
Unrecognized tax benefits		(2,206	)		(1,072	)
Deferred tax adjustments related to prior periods		2,642			(242	)
Other		17			31
Income tax expense (recovery)		29,178			(14,713	)

(c) Deferred tax assets and liabilities

Deferred tax assets and liabilities are attributable to the following:

	As at December 31,
	2017			2016
Property, plant and equipment		(175,502	)		(151,230	)
Other financial assets		2,884			316
Provisions		19,378			17,926
Tax loss carry forwards		64,195			71,051
Deferred tax liability		(89,045	)		(61,937	)

Tax loss carry forwards relate to non-capital losses in Canada of pre-tax $187,318 (2016: $194,929) which expire between 2027 and 2037 and net operating losses in the United States of pre-tax $65,555 (2016: $56,273), which expire between 2027 and 2037.

(d) Unrecognized deferred tax assets and liabilities

	As at December 31,
	2017		2016
Deductible temporary differences:
Debt		70,529		76,031
Other investments		34,873		34,840
Other financial assets		19,705		11,620
Deferred tax asset:
Debt		7,385		9,880
Other investments		4,708		4,529
Other financial assets		3,073		1,900

Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the Company can utilize the benefits. There are no unrecognized tax liabilities.

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Accounts Receivable

12 Months Ended

Dec. 31, 2017

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Accounts Receivable

11. ACCOUNTS RECEIVABLE

	As at December 31,
	2017		2016
Trade receivables		19,341		9,463
Other receivables due from joint venture partner		210		162
Goods and services tax receivable		1,094		988
Other receivables		973		2,292
		21,618		12,905

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Other Financial Assets

12 Months Ended

Dec. 31, 2017

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Other Financial Assets

12. OTHER FINANCIAL ASSETS

	As at December 31,
	2017		2016
Current:
Marketable securities		2,444		1,419
Copper put option contracts (Note 7)		330		155
		2,774		1,574
Long-term:
Investment in subscription receipts		2,400		10,333
Reclamation deposits (Note 20)		30,637		30,535
Restricted cash (Note 20)		7,500		7,500
		40,537		48,368

The Company holds strategic investments in publicly traded and privately owned companies, which are classified as available for sale investments. As at December 31, 2017 these investments included marketable securities as well as subscription receipts. The subscription receipts relate to an investment in a privately held company with two directors in common, and are to be convertible into units comprised of shares, or shares and warrants (Note 26c).

The fair value of the marketable securities is based upon public market information and the Company reviews the value of its investments for evidence of impairment based on both quantitative and qualitative criteria. For the years ended December 31, 2017 and 2016, unrealized gains and losses from the mark-to-market of marketable securities and reclamation deposits have been recorded in other comprehensive income (loss).

In the fourth quarter of 2017, the Company assessed the value of its investment in subscription receipts of a private mineral exploration and development company and recorded a write-down of the investment to its estimated fair value. A write-down of $3,850 was recorded in the statement of income, and an unrealized loss of $4,083 was recorded in other comprehensive income.

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Inventories

12 Months Ended

Dec. 31, 2017

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Inventories

13. INVENTORIES

	As at December 31,
	2017		2016
Ore stockpiles		9,332		28,186
Copper contained in concentrate		5,933		5,741
Molybdenum concentrate		217		106
Materials and supplies		24,157		26,517
		39,639		60,550

During the year ended December 31, 2017, the Company recorded a net reversal of previous impairments of $4,639 (2016: net impairment of $17,202), to adjust the carrying value of ore stockpiles to net realizable value. These adjustments were included in cost of sales as a change in inventory of ore stockpile.

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Property, Plant & Equipment

12 Months Ended

Dec. 31, 2017

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Property, Plant & Equipment

14. PROPERTY, PLANT & EQUIPMENT

	Property Acquisition costs			Mineral properties			Plant and equipment			Construction in Progress			Total
Cost
At January 1, 2016		101,226			244,289			655,440			747			1,001,702
Additions		—			17,404			—			2,394			19,798
Rehabilitation cost asset		—			(27,870	)		—			—			(27,870	)
Capitalized interest 1		—			5,219			—			—			5,219
Disposals		—			—			(838	)		—			(838	)
Foreign exchange translation		(2,822	)		(214	)		(150	)		—			(3,186	)
Transfers between categories		—			—			1,683			(1,683	)		—
At December 31, 2016		98,404			238,828			656,135			1,458			994,825
Additions		—			84,641			10,696			21,030			116,367
Rehabilitation cost asset		—			8,350			—			—			8,350
Capitalized interest 1		—			2,602			—			—			2,602
Disposals		—			—			(6,924	)		—			(6,924	)
Foreign exchange translation		(6,026	)		(783	)		(315	)		—			(7,124	)
Transfers between categories		—			—			19,760			(19,760	)		—
At December 31, 2017		92,378			333,638			679,352			2,728			1,108,096
Accumulated depreciation
At January 1, 2016		—			67,581			139,363			—			206,944
Depreciation2		—			29,076			28,743			—			57,819
Disposals		—			—			(146	)		—			(146	)
At December 31, 2016		—			96,657			167,960			—			264,617
Depreciation2		—			20,033			29,472						49,505
Impairment		—			—			3,551			—			3,551
Disposals		—			—			(6,842	)		—			(6,842	)
At December 31, 2017		—			116,690			194,141			—			310,831
Net book value
At December 31, 2016		98,404			142,171			488,175			1,458			730,208
At December 31, 2017		92,378			216,948			485,211			2,728			797,265

¹  Interest related to the Florence Copper Project was capitalized until June 2017 at an annual rate of 11% (2016: 11%).

²  Depreciation included in cost of sales for 2017 and 2016 of $47,722 and $52,939 respectively.

(a) Capital expenditures

During 2017, the Company capitalized stripping costs of $75,408 (2016: $10,065) and incurred other capital expenditures for Gibraltar of $10,728 (2016: $3,932). In addition, the Company capitalized development costs of $15,245 (2016: $4,961) for the Florence Copper and $1,713 (2016: $840) for the Aley Niobium projects. Non-cash additions to property, plant and equipment include $13,059 for the acquisition of mining equipment under capital leases and $6,371 of depreciation on mining assets related to capitalized stripping.

The rehabilitation cost asset increased by $8,350 for the year ended December 31, 2017, as a result of changes in estimates during the period including an increase in estimated costs and changes in the discount rate.

(b) Leased assets

The Company leases mining equipment under a number of capital lease agreements. Most of these leases provide the Company with the option to purchase the equipment at a beneficial price. Certain rents are based on an annual average usage for the applicable equipment and, if at the end of the term (unless the equipment has been purchased by the Company), the actual annual average usage of such equipment has been greater than the specified usage, the Company must pay an additional amount for each excess hour of actual usage. The leased assets secure the lease obligations (Note 17). At December 31, 2017, the net carrying amount of leased assets was $51,918 (2016: $53,476).

(c) Property acquisition costs

Property acquisition costs are comprised of the Aley Niobium property $5,436, Florence Copper Project $86,940, New Prosperity gold-copper property $1 and Harmony gold property $1. The carrying amounts for the New Prosperity and Harmony properties are the original property acquisition costs less historical impairments.

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Goodwill

12 Months Ended

Dec. 31, 2017

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Goodwill

15. GOODWILL

Goodwill was recorded on the Company’s acquisition of Curis Resources Ltd. (“Curis”) in 2014. Curis is a mineral exploration and development company whose principal asset is the Florence Copper Project, an in-situ copper recovery and solvent extraction/electrowinning project located in central Arizona, USA. As at December 31, 2017, the carrying value of the goodwill decreased to $5,172 as a result of foreign currency translation.

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Accounts Payable and Accrued Liabilities

12 Months Ended

Dec. 31, 2017

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Accounts Payable and Accrued Liabilities

16. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

	As at December 31,
	2017		2016
Trade payables		23,879		28,180
Accrued liabilities		18,692		4,012
Amounts payable to BC Hydro		4,764		—
Advance payments		—		1,163
Payables to related parties (Note 26c)		47		61
		47,382		33,416

The amounts payable to BC Hydro represent the remaining balance owing under BC Hydro’s five-year power rate deferral program for BC mines. During the year ended December 31, 2017, the Company made net repayments of $6,174 to BC Hydro and based on recent copper prices the remaining balance is expected to be repaid in 2018. Under the program, effective March 1, 2016, the Gibraltar Mine was able to defer up to 75% of electricity costs. The amount of the deferral was based on a formula that incorporates the average copper price in Canadian dollars during the preceding month. The deferred amount, plus interest at the prime rate plus 5%, is repayable on a monthly schedule of up to 75% of the monthly electricity billing, when the average copper price during the preceding month exceeds a threshold amount of $3.40 per pound. Any remaining deferred balance would be repayable at the end of the five year term.

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Debt

12 Months Ended

Dec. 31, 2017

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Debt

17. DEBT

	As at December 31,
	2017		2016
Current:
Capital leases (b)		9,651		8,059
Secured equipment loans (c)		1,619		8,098
		11,270		16,157
Long-term:
Senior secured notes (a)		302,085		—
Capital leases (b)		14,110		11,917
Secured equipment loans (c)		1,753		3,298
Senior notes (d)		—		266,435
Senior secured credit facility (e)		—		91,483
		317,948		373,133

(a) Senior secured notes

In June 2017, the Company completed an offering of US$250,000 aggregate principal amount of senior secured notes (“the Notes”). The Notes mature on June 15, 2022 and bear interest at an annual rate of 8.750%, payable semi-annually on June 15 and December 15, commencing December 15, 2017. The Notes were issued at 99% of par value and the Company incurred other transaction costs of $9,326 resulting in net proceeds from the offering of $317,596 (US$240,468). The net proceeds were used, along with cash on hand, to redeem the senior notes (Note 17d) and to repay the senior secured credit facility and to settle the related copper call option (Note 17e).

The 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. The Notes are guaranteed by each of Taseko’s existing and future restricted subsidiaries, other than certain immaterial subsidiaries. The Company is able to incur limited amounts of additional secured and unsecured debt under certain conditions as defined in 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 Notes at any time on or after June 15, 2019, at redemption prices ranging from 104.375% to 100%, plus accrued and unpaid interest to the date of redemption. Prior to June 15, 2019, all or part of the notes may be redeemed at 100%, plus a make-whole premium, plus accrued and unpaid interest to the date of redemption. In addition, until June 15, 2019, the Company may redeem up to 35% of the aggregate principal amount of the notes, in an amount not greater than the net proceeds of certain equity offerings, at a redemption price of 108.750%, plus accrued and unpaid interest to the date of redemption. On a change of control, the Notes are redeemable at the option of the holder at a price of 101%.

(b) Capital leases

Capital leases are repayable in monthly installments and are secured by equipment with a carrying value $51,918 (2016: $53,476). The capital lease obligations bear fixed interest rates ranging from 3.5% to 5.8% and have maturity dates ranging from 2018 to 2022.

(c) Secured equipment loans

Equipment loans are secured by equipment with a carrying value of $20,912 (2016: $50,752). The loans are repayable in monthly installments and bear fixed interest rates at 5.6% and have maturity dates ranging from 2018 to 2020.

(d) Senior notes

In April 2011, the Company completed a public offering of US$200,000 in senior unsecured notes. On June 14, 2017, the senior unsecured notes were redeemed at 100% of par value plus accrued interest to the redemption date for a total cost of $269,185 (US$203.8 million).

The unsecured notes were scheduled to mature on April 15, 2019 and were bearing interest at a fixed annual rate of 7.75%, payable semi-annually. The notes were unsecured obligations guaranteed by the Company’s subsidiaries and the subsidiary guarantees were, in turn, guaranteed by the Company. The notes were redeemable by the Company at par value after April 2017.

(e) Senior secured credit facility

On January 29, 2016, the Company entered into a US$70 million senior secured credit facility (the “Facility”) with EXP T1 Ltd., an affiliate of Red Kite. Amounts drawn under the Facility accrued interest on a monthly basis at a rate of three-month LIBOR plus 7.5% per annum, subject to a minimum LIBOR of 1% per annum. The loan principal and all accrued interest was payable upon maturity of the Facility on March 29, 2019. The Facility was repayable at any time without penalty and did not impose any off-take obligations on the Company.

The Facility was secured by a first priority charge over substantially all assets of the Company, including the Company’s 75% joint venture interest in the Gibraltar Mine, shares in all material subsidiaries and the Florence Copper project assets. The availability of the Facility was subject to conditions and covenants, including maintenance of a minimum working capital balance (as defined in the Facility) of US$20 million.

The first tranche of the Facility was drawn on January 29, 2016 and the proceeds of $46,444 (US$33.2 million) were used to repay an existing secured loan and to pay the arrangement fee and other transaction costs. The remainder of the Facility in the amount of $47,161 (US$36.8 million) was drawn during the second quarter of 2016. On June 14, 2017, the Facility plus all accrued interest was fully repaid for $104,901 (US$79.4 million).

Upon entering into the Facility in January 2016, the Company issued a call option to the lender for 7,500 tonnes of copper with a strike price of US$2.04/lb. The call option was to mature in March 2019 with an amount then payable to the lender based on the average copper price during the month of March 2019, subject to a maximum amount of US$15 million. On June 14, 2017 the Company settled the copper call option obligation with a payment to the lender of $15,745 (US$11.9 million), based on the cancellation pay-out amount defined in the Facility agreement.

In connection with the Facility, the Company also issued share purchase warrants to acquire 4 million common shares of the Company at any time until May 9, 2019 at an exercise price of $0.51 per share. These warrants were exercised by the lender in February and March 2017 (Note 21a,b).

The Company had incurred total deferred debt financing costs of $11,257, which included the initial fair value of the copper call option, warrants and other transaction costs. These costs were initially deferred and were being amortized over the life of the loan using the effective interest rate method. The remaining deferred costs were expensed on repayment in June 2017 (Note 9).

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Deferred Revenue

12 Months Ended

Dec. 31, 2017

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Deferred Revenue

18. DEFERRED REVENUE

On March 3, 2017, the Company entered into a silver stream purchase and sale agreement with Osisko Gold Royalties Ltd. (“Osisko”), whereby the Company received an upfront cash deposit payment of US$33 million for the sale of silver equivalent to 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 amount equivalent to Taseko’s share of all future payable silver production from Gibraltar will be delivered to Osisko. In addition to the initial deposit, the Company receives cash payments of US$2.75 per ounce for all silver deliveries made under the agreement.

The Company recorded the initial deposit as deferred revenue and recognizes amounts in revenue as silver is delivered to Osisko. The amortization of deferred revenue is calculated on a per unit basis using the estimated total number of silver ounces expected to be delivered to Osisko over the life of the Gibraltar Mine. The current portion of deferred revenue is an estimate based on deliveries anticipated over the next twelve months.

The silver sale agreement has a minimum term of 50 years and automatically renews for successive 10-year periods as long as Gibraltar mining operations are active. If the initial deposit is not fully reduced through silver deliveries at current market prices at time of the deliveries, a cash payment for the remaining amount will be due to Osisko at the expiry date of the agreement. The Company’s obligations under the agreement are secured by a pledge of Taseko’s 75% interest in the Gibraltar Joint Venture.

In connection with the silver stream transaction, the Company issued share purchase warrants to Osisko to acquire 3 million common shares of the Company at any time until April 1, 2020 at an exercise price of $2.74 per share. The fair value of the warrants was estimated to be $1,876 at the date of grant and was measured based on the Black-Scholes valuation model. The fair value was determined using the expected life of 3 years, expected volatility of the Company’s common share price of 61%, an expected dividend yield of 0%, and a risk-free interest rate of 0.9% (Note 21b).

The following table summarizes changes in deferred revenue:

Upfront cash deposit	44,151
Issuance of warrants	(1,876	)
Amortization of deferred revenue	(1,323	)
Balance at December 31, 2017	40,952

Deferred revenue is reflected in the consolidated balance sheets as follows:

	December 31, 2017
Current		1,312
Non-current		39,640
		40,952

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Other Financial Liabilities

12 Months Ended

Dec. 31, 2017

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Other Financial Liabilities

19. OTHER FINANCIAL LIABILITIES

	As at December 31,
	2017		2016
Long-term:
Deferred share units (Note 22b)		5,714		1,535
Derivative liability - copper call option (Note 17e)		—		9,440
Amounts payable to BC Hydro (Note 16)		—		10,938
		5,714		21,913

In June 2017 the Company settled the copper call option obligation with a payment of $15,745 to the senior secured credit facility lender.

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Provision For Environmental Rehabilitation

12 Months Ended

Dec. 31, 2017

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Provision For Environmental Rehabilitation

20. PROVISION FOR ENVIRONMENTAL REHABILITATION

	2017			2016
Beginning balance at January 1		98,454			124,445
Change in estimates		8,350			(27,870	)
Accretion		2,363			2,358
Settlements		(1,205	)		(438	)
Foreign exchange differences		(88	)		(41	)
Ending balance at December 31		107,874			98,454

The provision for environmental rehabilitation (“PER”) represents the present value of estimated costs of legal and constructive obligations required to retire an asset, including decommissioning and other site restoration activities. The majority of these expenditures occur after the end of the life of the related operation. For the Gibraltar Mine, it is anticipated that these costs will be incurred over a period of 100 years beyond the end of the mine life. As at December 31, 2017, the PER was calculated using a pre-tax discount rate of 2.26% (2016 – 2.31%), which is based on the long-term Canadian government bond rate and an inflation rate of 2.0% (2016 – 2.0%) in its cash flow estimates. The increase in the PER during 2017 is primarily due to an increase in estimated costs and a reduction in the discount rates.

During 2017, the Company submitted an updated decommissioning cost report for the Gibraltar Mine to the BC Ministry of Energy, Mines and Petroleum Resources as a requirement to maintain its permits in good standing. The underlying cost assumptions supporting the 2017 decommissioning report reflect management’s best estimate for closure costs and were incorporated into the PER. Estimates are reviewed regularly and there have been adjustments to the amount and timing of cash flows as a result of updated information. Assumptions are based on the current economic environment, but actual rehabilitation costs will ultimately depend upon future market prices for the necessary decommissioning work required, which will reflect market conditions at the relevant time. Furthermore, the timing of rehabilitation will depend on when the mine ceases production which, in turn, will depend on future metal prices, operating conditions and many other factors which are inherently uncertain.

The Company has provided deposits and other financial security for its reclamation obligations which is held in trust by the regulatory authorities. Reclamation deposits (Note 12) are returned once the site is reclaimed to a satisfactory level and there are no ongoing monitoring or maintenance requirements. The restricted cash of $7,500 (Note 12) represents the Company’s share of cash security for a letter of credit issued by the Gibraltar Joint Venture as security for reclamation obligations at the Gibraltar Mine. For the Florence Copper project, the Company has issued security for reclamation bonds totaling $6,515, which is supported by surety bonds of an insurance company. The Company has provided cash collateral of $2,002 to the surety provider and these amounts are classified as reclamation deposits (Note 12).

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Equity

12 Months Ended

Dec. 31, 2017

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Equity

21. EQUITY

(a) Share capital

	Common shares (thousands)
Common shares outstanding at January 1, 2016		221,809
Exercise of share options		58
Common shares outstanding at December 31, 2016		221,867
Exercise of warrants (Note 17e)		4,000
Exercise of share options		1,133
Common shares outstanding at December 31, 2017		227,000

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

(b) Share Purchase Warrants

	Warrants (thousands)			Exercise price
Outstanding at January 1, 2017		4,000			0.51
Issued (Note 18)		3,000			2.74
Exercised		(4,000	)		0.51
Outstanding at December 31, 2017		3,000			2.74

(c) Contributed surplus

Contributed surplus represents employee entitlements to equity settled share-based awards that have been charged to the statement of comprehensive income and loss in the periods during which the entitlements were accrued and have not yet been exercised.

(d) Accumulated other comprehensive income (“AOCI”)

AOCI is comprised of the cumulative net change in the fair value of available-for-sale financial assets, net of taxes, until the investments are sold or impaired and cumulative translation adjustments arising from the translation of foreign subsidiaries.

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Share-Based Compensation

12 Months Ended

Dec. 31, 2017

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Share-Based Compensation

22. SHARE-BASED COMPENSATION

(a) Share Options

The Company has an equity settled share option plan approved by the shareholders that allows it to grant options to directors, officers, employees and other service providers. Under the plan, a maximum of 9.5% of the Company’s outstanding common shares may be granted. The maximum allowable number of outstanding options to independent directors as a group at any time is 1% of the Company’s outstanding common shares. The exercise price of an option is set at the time of grant using the five-day volume weighted average price of the common shares. Options are exercisable for a maximum of five years from the effective date of grant under the plan. Vesting conditions of options are at the discretion of the Board of Directors at the time the options are granted.

	Options (thousands)			Average price
Outstanding at January 1, 2016		11,557			2.55
Granted		2,601			0.38
Exercised		(58	)		0.38
Forfeited		(313	)		1.40
Expired		(1,846	)		5.04
Outstanding at January 1, 2017		11,941			1.74
Granted		1,911			1.25
Exercised		(1,133	)		0.78
Forfeited		(39	)		0.96
Expired		(3,399	)		2.71
Outstanding at December 31, 2017		9,281			1.40
Exercisable at December 31, 2017		7,322			1.52

During the year ended December 31, 2017, the Company granted 1,910,500 (2016 – 2,601,000) share options to directors, executives and employees. The total fair value of options granted was $1,165 (2016 – $442) based on a weighted average grant-date fair value of $0.61 (2016 – $0.17) per option. During the year ended December 31, 2017, 1,132,600 options were exercised. The weighted-average share price at the date of exercise was $0.78 per share.

Range of exercise price	Options (thousands)		Average life (years)
$0.38 to $0.68		1,939		2.5
$0.69 to $1.02		1,958		2.0
$1.03 to $1.64		1,849		3.3
$1.65 to $2.40		3,535		1.0
		9,281		1.8

The fair value at grant date of the share option plan was measured based on the Black-Scholes formula. Expected volatility is estimated by considering historic average share price volatility. The inputs used in the measurement of the fair values at grant date of the share-based payment plans are the following:

	2017			2016
Expected term (years)		4.45			4.49
Forfeiture rate		0	%		0	%
Volatility		60.6	%		52.5	%
Dividend yield		0	%		0	%
Risk-free interest rate		1.04	%		0.57	%
Weighted-average fair value per option	$	0.61		$	0.17

(b) Deferred Share Units and Performance Share Units

The Company has adopted a Deferred Share Unit (“DSU”) Plan (the “DSU Plan”) that provides for an annual grant of DSUs to each non-employee director of the Company, or an equivalent cash payment in lieu thereof, which participants have agreed would in the first instance be used to assist in complying with the Company’s share ownership guidelines. DSUs vest immediately upon grant and are paid out in cash when a participant ceases to be a director of the Company.

The Company has established a Performance Share Unit (“PSU”) Plan (the “PSU Plan”) whereby PSUs are issued to executives as long-term incentive compensation. PSUs issued under the Plan entitle the holder to a cash or equity payment (as determined by the Board of Directors), at the end of a three-year performance period equal to the number of PSU’s granted, adjusted for a performance factor and multiplied by the quoted market value of a Taseko common share on the completion of the performance period. The performance factor can range from 0% to 250% and is determined by comparing the Company’s total shareholder return to those achieved by a peer group of companies.

The continuity of DSUs and PSUs issued and outstanding is as follows:

	DSUs (thousands)			PSUs (thousands)
Outstanding at January 1, 2016		915			462
Granted		714			1,349
Settled		(306	)		(59	)
Forfeited		—			(45	)
Outstanding at January 1, 2017		1,323			1,707
Granted		620			400
Settled		—			(888	)
Outstanding at December 31, 2017		1,943			1,219

During the year ended December 31, 2017, 887,792 of the PSUs issued to executives during 2016, in lieu of annual incentive plan payments for 2015, were settled on a cash basis. The PSUs were settled at prices ranging between $1.75 and $2.25 per unit. The settlement amounts were based on the 5-day volume weighted average share price prior to the vesting date.

During the year ended December 31, 2017, 620,000 DSUs were issued to directors (2016 - 714,000) and 400,000 PSUs to senior executives (2016 - 1,349,292). The fair value of DSUs and PSUs granted was $791 (2016 - $1,080), with a weighted average fair value at the grant date of $1.28 per unit for the DSUs (2016 - $0.38) per unit) and $2.33 per unit for the PSUs (2016 – $0.66 per unit).

For the year ended December 31, 2017, the Company recognized total share-based compensation expense of $7,100 (2016: $3,682).

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

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Commitments and Contingencies

23. COMMITMENTS AND CONTINGENCIES

(a) Commitments

The Company is a party to certain contracts relating to capital expenditures, operating leases and service and supply agreements. Future minimum payments under these agreements as at December 31, 2017 are presented in the following table:

2018	13,198
2019	2,363
2020	1,451
2021	408
2022	234
2023 and thereafter	—
Total commitments	17,654

The Gibraltar joint venture (Note 3) is committed to incur capital expenditures of $933 (2016: $251), of which the Company’s share is $700 (2016: $189).

(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 a 75% interest. As a result, the Company has guaranteed the joint venture partner’s 25% share of this debt which amounted to $9,044 as at December 31, 2017.

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Supplementary Cash Flow Information

12 Months Ended

Dec. 31, 2017

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Supplementary Cash Flow Information

24. SUPPLEMENTARY CASH FLOW INFORMATION

	For the year ended December 31,
	2017			2016
Change in non-cash working capital items
Accounts receivable		(9,199	)		(1,783	)
Inventories		16,324			(16,023	)
Prepaids		(203	)		349
Accounts payable and accrued liabilities		8,995			4,010
Interest payable		(21	)		(543	)
Income tax paid		(2,275	)		(750	)
Income tax received		—			29
		13,621			(14,711	)
Non-cash investing and financing activities
Share purchase warrants issued (Note 18)		1,876			—
Assets acquired under capital lease		13,059			—
Derivative liabilities (Note 17e)		—			7,334
Share purchase warrants exercised (Note 17e)		(830	)		830

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Financial Risk Management

12 Months Ended

Dec. 31, 2017

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Financial Risk Management

25. FINANCIAL RISK MANAGEMENT

(a) Overview

In the normal course of business, the Company is inherently exposed to market, liquidity and credit risk through its use of financial instruments. The timeframe and manner in which the Company manages these risks varies based upon management’s assessment of the risk and available alternatives for mitigating risk. The Board approves and monitors risk management processes, including treasury policies, counterparty limits, controlling and reporting structures.

(b) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: commodity price risk; interest rate risk; and currency risk. Financial instruments affected by market risk include: cash and equivalents; accounts receivable; marketable securities; subscription receipts; reclamation deposits; accounts payable and accrued liabilities; debt and derivatives.

The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. The Company buys and sells copper put options in order to reduce commodity price risk. The derivative instruments employed by the Company are considered to be economic hedges but are not designated as hedges for accounting purposes.

Commodity price risk

The Company is exposed to the risk of fluctuations in prevailing market commodity prices on the metals it produces. To manage the Company’s operating margins effectively in volatile metals markets, the Company enters into copper option contracts. 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 option contracts are typically extended adding incremental quarters at established put strike prices to provide the necessary price protection.

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 pre-tax earnings and equity for changes in commodity prices on the fair value of derivatives and the provisionally invoiced sales volumes.

	As at December 31,
	2017		2016
Copper increase/decrease by US$0.33/lb (2016: US$0.25/lb)1, 2		6,645		4,778

¹  The analysis is based on the assumption that the year-end copper price increases 10 percent with all other variables held constant. The relationship between the year-end copper price and the strike price of copper options has significant influence over the fair value of the derivatives. As such, a 10% decrease in the year-end copper price will not result in an equal but opposite impact on earnings after tax and equity. The closing exchange rate for the year ended December 31, 2017 of CAD/USD 1.25 (2016: 1.34) was used in the analysis.

²  At December 31, 2017, 16 million (2016: 14 million) pounds of copper in concentrate were exposed to copper price movements.

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.

Interest rate risk

The Company is exposed to interest rate risk on its outstanding debt and investments, including cash and cash equivalents, from the possibility that changes in market interest rates will affect future cash flows or the fair value of fixed-rate interest-bearing financial instruments.

The table below summarizes the impact on earnings after tax and equity for a change of 100 basis points in interest rates at the reporting date. This analysis assumes that all other variables, in particular foreign currency rates, remain constant. This assumes that the change in interest rates is effective from the beginning of the financial year and balances are constant over the year. However, interest rates and balances of the Company may not remain constant in the coming financial year and therefore such sensitivity analysis should be used with care.

	Years ended December 31,
	2017			2016
Fair value sensitivity for fixed-rate instruments
Senior secured notes		(1,340	)		—
Capital leases		(176	)		(200	)
Secured equipment loans		(96	)		(160	)
Senior notes		—			(1,960	)
Senior secured credit facility		—			(246	)
		(1,612	)		(2,566	)
Cash flow sensitivity for variable-rate instruments
Cash and equivalents		645			171
Reclamation deposits		209			192
		854			363

Currency risk

The Canadian dollar is the functional currency of the Company and, as a result, currency exposure arises from transactions and balances in currencies other than the Canadian dollar, primarily the US dollar. The Company’s potential currency exposures comprise translational exposure in respect of non-functional currency monetary items, and transactional exposure in respect of non-functional currency revenues and expenditures.

The following table demonstrates the sensitivity to a 10% strengthening in the CAD against the USD. With all other variables held constant, the Company’s shareholders equity and earnings after tax would both increase/(decrease) due to changes in the carrying value of monetary assets and liabilities. A weakening in the CAD against the USD would have had the equal but opposite effect to the amounts shown below.

	Year ended December 31,
	2017			2016
Cash and equivalents		(4,966	)		(5,429	)
Accounts receivable		(1,435	)		(699	)
Copper put option contracts		(24	)		(12	)
Accounts payable and accrued liabilities		344			283
Senior secured notes		23,293			—
Senior notes		—			20,193
Senior secured credit facility		—			7,435
Equipment loans		27			547

The Company’s financial asset and liability profile may not remain constant and, therefore, these sensitivities should be used with care.

(c) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages liquidity risk by holding sufficient cash and equivalents and scheduling long-term obligations based on estimated cash inflows. There were no defaults on loans payable during the year.

(d) Credit risk

Credit risk is the risk of potential loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Company is exposed to credit risk from its receivables, marketable securities and investments, and derivatives. In general, the Company manages its credit exposure by transacting only with reputable counterparties. The Company monitors the financial condition of its customers and counterparties to contracts. The Company deals with a limited number of counterparties for its metal sales. The Company had two significant customers in 2017 that represented 81% of gross copper concentrate revenues (2016: two customers accounted for 95% of gross copper concentrate revenues). The trade receivable balance at December 31, 2017 and 2016, is comprised of three customers. There are no impairments recognized on the trade receivables.

(e) Fair values of financial instruments

The fair values of the senior secured notes is $322,306 and the carrying value is $302,085 at December 31, 2017. The fair value of all other financial assets and liabilities approximates their carrying value.

The Company uses the fair value hierarchy described in Note 2.4(c) for determining the fair value of instruments that are measured at fair value.

	Level 1		Level 2		Level 3		Total
December 31, 2017
Financial assets designated at FVTPL
Copper put option contracts		—		331		—		331
Available-for-sale financial assets
Marketable Securities		2,444		—		—		2,444
Investment in subscription receipts (Note 12)		—		—		2,400		2,400
Reclamation deposits		30,638		—		—		30,638
		33,082		331		2,400		35,813
December 31, 2016
Financial assets designated at FVTPL
Copper put option contracts		—		155		—		155
Available-for-sale financial assets
Marketable Securities		1,419		—		—		1,419
Investment in subscription receipts (Note 12)		—		—		10,333		10,333
Reclamation deposits		30,535		—		—		30,535
		31,954		155		10,333		42,442

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 December 31, 2017.

The fair value of the senior secured notes, a Level 1 instrument, is determined based upon publicly available information. The fair value of the capital leases and secured equipment loans, Level 2 instruments, are determined through discounting future cash flows at an interest rate of 4.1% based on the relevant loans effective interest rate.

The fair values of the Level 2 instruments are based on broker quotes. Similar contracts are traded in an active market and the broker quotes reflect the actual transactions in similar instruments.

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 accounts receivable on these contracts are marked-to-market based on a quoted forward price for which there exists an active commodity market.

The subscription receipts, a Level 3 instrument, are valued based on a management estimate. As the subscription receipts are an investment in a private exploration and development company, there are no observable market data inputs. At December 31, 2017 the estimated fair value of the investment has been based on the market capitalization of comparable public companies.

(f) Capital management

The Company’s primary objective when managing capital is to ensure that the Company is able to continue its operations and that it has sufficient ability to satisfy its capital obligations and ongoing operational expenses, as well as to have sufficient liquidity available to fund suitable business opportunities as they arise.

The Company considers the components of shareholders’ equity, as well as its cash and equivalents, credit facilities and debt as capital. The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may issue or buy back equity, issue, buy back or repay debt, sell assets, or return capital to shareholders.

	December 31, 2017			December 31, 2016
Cash		(80,231	)		(89,030	)
Current portion of long-term debt		11,270			16,157
Long-term debt		317,948			373,133
Net debt		248,987			300,260
Shareholders’ equity		367,080			338,939

In order to facilitate the management of its capital requirements, the Company prepares annual operating budgets that are approved by the Board of Directors. Management also actively monitors its financial covenants to ensure compliance. The Company’s investment policy is to invest its cash in highly liquid interest-bearing investments that are readily convertible to known amounts of cash. There were no changes to the Company’s approach to capital management during the year ended December 31, 2017.

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Related Parties

12 Months Ended

Dec. 31, 2017

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Related Parties

26. RELATED PARTIES

(a) Subsidiaries

	Ownership interest as at
	December 31, 2017			December 31, 2016
Gibraltar Mines Ltd.		100	%		100	%
Curis Resources Ltd.		100	%		100	%
Curis Holdings (Canada) Ltd.		100	%		100	%
Florence Copper Inc.		100	%		100	%
Aley Corporation		100	%		100	%
672520 BC Ltd.		100	%		100	%

(b) Key management personnel compensation

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

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 profit or loss 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 from9-month to 12-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 24-month to 32-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 (Note 22).

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

	Year ended December 31,
	2017		2016
Salaries and benefits		5,015		5,050
Post-employment benefits		1,491		1,309
Share-based compensation		6,849		3,602
		13,355		9,961

(c) Related party transactions

	Transaction value for the year end December 31,				Due (to) from related parties as at December 31,
	2017		2016		2017			2016
Hunter Dickinson Services Inc.:
General and administrative expenses		1,301		1,400
Exploration and evaluation expenses		98		40
		1,399		1,440		(47	)		(61	)
Gibraltar Joint Venture:
Management fee income		1,168		1,043
Reimbursable compensation expenses and third party costs		34		105
		1,202		1,148		210			162

Three directors of the Company are also principals of Hunter Dickinson Services Inc. (“HDSI”), a private company. HDSI invoices the Company for their executive services (director fees) and for other services provided by HDSI. For the year ended December 31, 2017, the Company incurred total costs of $1,399 (2016: $1,440) in transactions with HDSI. Of these, $593 (2016: $643) related to administrative, legal, exploration and tax services, $526 related to reimbursements of office rent costs (2016: $517), and $280 (2016: $280) related to director fees for two Taseko directors who are also principals of HDSI.

Under the terms of the joint venture operating agreement, the Gibraltar Joint Venture pays the Company a management fee for services rendered by the Company as operator of the Gibraltar Mine. In addition, the Company pays certain expenses on behalf of the Gibraltar Joint Venture and invoices the Joint Venture for these expenses.

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Basis of Preparation (Policies)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Revenue recognition

(a) Revenue recognition

Revenue is recognized when the significant risks and rewards of ownership have been transferred and the amount of revenue is reasonably determinable. These conditions are generally satisfied when title passes to the customer. Cash received in advance of meeting these conditions is recorded as deferred revenue.

Under the terms of the Company’s concentrate and cathode sales contracts, the final sales amount is based on final assay results and quoted market prices which may be in a period subsequent to the date of sale. Revenues for these sales, net of treatment and refining charges are recorded at the time of shipment, which is also when the risks and rewards of ownership transfer to the customer, based on an estimate of metal contained using initial assay results and forward market prices on the expected date that final sales prices will be fixed. The period between provisional pricing and final settlement can be up to four months. This provisional pricing mechanism represents an embedded derivative. The embedded derivative is recorded at fair value each reporting period by reference to forward market prices until the date of final pricing, with the changes in fair value recorded as an adjustment to revenue.

Cash and equivalents

(b) Cash and equivalents

Cash and equivalents consist of cash and highly-liquid investments having terms of three months or less from the date of acquisition and that are readily convertible to known amounts of cash. Cash and equivalents exclude cash subject to restrictions.

Financial instruments

(c) Financial instruments

Financial assets and liabilities are recognized on the balance sheet when the Company becomes party to the contractual provisions of the instrument. The classification of financial instruments dictates how these assets and liabilities are measured subsequently in the Company’s consolidated financial statements.

Financial instruments at fair value through profit or loss (FVTPL)

Financial instruments are classified as FVTPL when they are held for trading. A financial instrument is held for trading if it was acquired for the purpose of selling in the near term. Derivative financial instruments that are not designated and effective as hedging instruments are classified as FVTPL. Financial instruments classified as FVTPL are stated at fair value with any changes in fair value recognized in earnings for the period. Financial assets in this category include derivative financial instruments that the Company acquires to manage exposure to commodity price fluctuations. These instruments are non-hedge derivative instruments.

Loans and receivables

Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Subsequent to initial recognition, these financial assets are recorded at amortized cost using the effective interest method, except for short-term receivables when the recognition of interest would be immaterial. Accounts receivable are assessed for evidence of impairment at each reporting date, with any impairment recognized in earnings for the period. Financial assets in this category include cash and equivalents and accounts receivable.

Available-for-sale financial assets

Marketable securities, subscription receipts and reclamation deposits are designated as available-for-sale and recorded at fair value. Unrealized gains and losses are recognized in other comprehensive income until the securities are disposed of or when there is evidence of impairment in value. Impairment is evident when there has been a significant or sustained decline in the fair value of the marketable securities. If an impairment in value has been determined, it is recognized in earnings for the period.

Financial liabilities

Financial liabilities are initially recorded at fair value, net of transaction costs, and are subsequently measured at amortized cost using the effective interest method. The Company has accounted for accounts payable and accrued liabilities and long-term debt under this method.

Fair value measurement

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).

Exploration and evaluation

(d) Exploration and evaluation

Exploration and evaluation expenditures relate to the initial search for a mineral deposit and the subsequent evaluation to determine the economic potential of the mineral deposit. The exploration and evaluation stage commences when the Company obtains the legal right or license to begin exploration. Exploration and evaluation expenditures are recognized in earnings in the period in which they are incurred.

Capitalization of development costs as mineral property, plant and equipment commences once the technical feasibility and commercial viability of the extraction of mineral reserve and resources associated with the Company’s evaluation properties are established and management has made a decision to proceed with development.

Inventories

(e) Inventories

Inventories are valued at the lower of cost and net realizable value. Cost is determined on a weighted average basis and includes direct labour and materials; non-capitalized stripping costs; depreciation and amortization; freight; and overhead costs. Net realizable value is determined with reference to relevant market prices, less applicable variable selling costs and estimated remaining costs of completion to bring the inventories into saleable form.

Ore stockpiles represent stockpiled ore and metals in the processing circuits that have not yet completed the production process, and are not yet in a saleable form. Finished goods inventories represent metals in saleable form that have not yet been sold. Materials and supplies inventories represent consumables used in the production process, as well as spare parts and other maintenance supplies that are not classified as capital items.

The quantity of recoverable metal in stockpiled ore and in the processing circuits is an estimate which is based on the tons of ore added and removed, expected grade and recovery. The quantity of recoverable metal in concentrate is an estimate using initial assay results.

Property, plant and equipment

(f) Property, plant and equipment

Land, buildings, plant and equipment

Land, buildings, plant and equipment are recorded at cost, including all expenditures incurred to prepare an asset for its intended use.

Repairs and maintenance costs are charged to expense as incurred, except when these repairs significantly extend the life of an asset or result in an operating improvement. In these instances, the portion of these repairs relating to the betterment is capitalized as part of plant and equipment.

Depreciation is based on the cost of the asset less residual value. Where an item of plant and equipment is comprised of major components with different useful lives, the components are accounted for as separate items and depreciated separately. Depreciation commences when an asset is available for use. Estimates of remaining useful lives and residual values are reviewed annually. Changes in estimates are accounted for prospectively.

The depreciation rates of the major asset categories are as follows:

Land	Not depreciated
Buildings	Straight-line basis over 10-25 years
Plant and equipment	Units-of-production basis
Mining equipment	Straight-line basis over 5-20 years
Light vehicles and other mobile equipment	Straight-line basis over 2-5 years
Furniture, computer and office equipment	Straight-line basis over 2-3 years

Mineral properties

Mineral properties consist of the cost of acquiring and developing mineral properties. Once in production, mineral properties are amortized on a units-of-production basis over the component of the ore body to which the capitalized costs relate.

Property acquisition costs arise either as an individual asset purchase or as part of a business combination, and may represent a combination of either proven and probable reserves, resources, or future exploration potential. When management has not made a determination that technical feasibility and commercial viability of extracting a mineral resource are demonstrable, the entire amount is considered property acquisition costs and not amortized. When such property moves into development, the property acquisition cost asset is transferred to mineral properties within property, plant and equipment.

Mineral property development costs include: stripping costs incurred in order to provide initial access to the ore body; stripping costs incurred during production that generate a future economic benefit by increasing the productive capacity, extending the productive life of the mine or allowing access to a mineable reserve; capitalized project development costs; and capitalized interest.

Construction in progress

Construction in progress includes the purchase price and any costs directly attributable to bringing the asset to the location and condition necessary for its intended use. Construction in progress includes advances on long-lead items. Construction in progress is not depreciated. Once the asset is complete and available for use, the costs of construction are transferred to the appropriate category of property, plant and equipment, and depreciation commences.

Capitalized interest

Interest is capitalized for qualifying assets. Qualifying assets are assets that require a substantial period of time to prepare for their intended use. Capitalization ceases when the asset is substantially complete or if construction is interrupted for an extended period. Where the funds used to finance a project form part of general borrowings, the amount capitalized is calculated using a weighted average of rates applicable to relevant general borrowings of the Company during the period.

Leased assets

Leased assets in which the Company receives substantially all the risks and rewards of ownership of the asset are capitalized as finance leases at the lower of the fair value of the asset or the estimated present value of the minimum lease payments. The corresponding lease obligation is recorded within debt on the balance sheet. Assets under operating leases are not capitalized and rental payments are expensed on a straight-line basis.

Impairment

The carrying amounts of the Company’s non-financial assets are reviewed for impairment whenever circumstances suggest that the carrying value may not be recoverable. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. These assessments require the use of estimates and assumptions such as long-term commodity prices, discount rates, future capital requirements, exploration potential and operating performance.

The recoverable amount of an asset or cash generating unit (CGU) is the higher of fair value less costs to sell and value in use. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s-length transaction between knowledgeable and willing parties. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows that are largely independent of the cash flows of other assets or CGU’s. If the recoverable amount of an asset or its related CGU is estimated to be less than its carrying amount, the carrying amount of the asset or CGU is reduced to its recoverable amount and the impairment loss is recognized in earnings for the period.

Where an impairment loss subsequently reverses, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount, but not to an amount that exceeds the carrying amount that would have been determined had no impairment loss been recognized for the asset or CGU in prior years. A reversal of an impairment loss is recognized immediately in earnings.

Income taxes

(g) Income taxes

Income tax on the earnings for the periods presented comprises current and deferred tax. Income tax is recognized in earnings except to the extent that it relates to items recognized directly in equity or in other comprehensive income. Income tax is calculated using tax rates enacted or substantively enacted at the reporting date applicable to the period of expected realization or settlement.

Current tax expense is the expected tax payable on the taxable income for the year, adjusted for amendments to tax payable with regards to previous years.

Deferred tax is determined using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: the initial recognition of assets or liabilities acquired (not in a business combination) that affect neither accounting nor taxable profit on acquisition; and differences relating to investments in subsidiaries, associates, and joint ventures to the extent that they are not probable to reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent it is no longer probable that the related tax benefit will be realized.

Share-based compensation

(h) Share-based compensation

The fair-value method is used for the Company’s share-based payment transactions. Under this method, the cost of share options and equity-settled performance share units is recorded based on their estimated fair value at the grant date, including an estimate of the forfeiture rate. The fair value of the share options and performance share units is expensed on a graded amortization basis over the vesting period of the awards, with a corresponding increase in equity.

Share-based compensation expense relating to cash-settled awards, including deferred share units, is recognized based on the quoted market value of the Company’s common shares on the date of grant. The related liability is re-measured to fair value each reporting period to reflect changes in the market value of the Company’s common shares, with changes in fair value recorded in net profit (loss).

Provisions

(i) Provisions

Environmental rehabilitation

The Company records the present value of estimated costs of legal and constructive obligations required to retire an asset in the period in which the obligation occurs. Environmental rehabilitation activities include facility decommissioning and dismantling; removal and treatment of waste materials; site and land rehabilitation, including compliance with and monitoring of environmental regulations; and related costs required to perform this work and/or operate equipment designed to reduce or eliminate environmental effects. The provision for environmental rehabilitation (“PER”) is adjusted each period for new disturbances, and changes in regulatory requirements, the estimated amount of future cash flows required to discharge the liability, the timing of such cash flows and the pre-tax discount rate specific to the liability. The unwinding of the discount is recognized in earnings as a finance cost.

When a PER is initially recognized, the corresponding cost is capitalized by increasing the carrying amount of the related asset, and is amortized to earnings on a unit-of-production basis. Costs are only capitalized to the extent that the amount meets the definition of an asset and represents future economic benefits to the operation.

Significant estimates and assumptions are made in determining the provision for environmental rehabilitation as there are numerous factors that will affect the ultimate liability payable. These factors include estimation of the extent and cost of rehabilitation activities; timing of future cash flows that are impacted by changes in discount rates; inflation rate; and regulatory requirements.

Other provisions

Other provisions are recognized when the Company has a present obligation (legal or constructive) that has arisen as a result of a past event and it is probable that a future outflow of resources will be required to settle the obligation, provided that a reliable estimate can be made of the amount of the obligation. Where the effect is material, the provision is discounted using a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the obligation. The accretion expense is included in finance expense.

Finance income and expenses

(j) Finance income and expenses

Finance income comprises interest income on funds invested, gains on the disposal of marketable securities, and changes in the fair value of derivatives included in cash and equivalents and marketable securities. Interest income is recognized as it accrues in earnings, using the effective interest method. Finance expenses comprise interest expense on borrowings, unwinding of the discount on provisions, losses on the disposal of marketable securities, changes in the fair value of derivatives included in cash and equivalents and marketable securities, and impairment losses recognized on financial assets. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognized in earnings using the effective interest method.

Earnings (loss) per share

(k) Earnings (loss) per share

The Company presents basic and diluted earnings (loss) per share data for its common shares, calculated by dividing the earnings (loss) attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined by adjusting the earnings attributable to common shareholders and the weighted average number of common shares outstanding for the effects of all dilutive potential common shares, which comprise warrants and share options granted. There is no dilution impact when the Company incurs a loss.

Interests in joint arrangements

(l) Interests in joint arrangements

IFRS defines a joint arrangement as one over which two or more parties have joint control, which is the contractually agreed sharing of control over an arrangement. This exists only when the decisions about the relevant activities (being those that significantly affect the returns of the arrangement) require the unanimous consent of the parties sharing control.

A joint operation is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities, relating to the arrangement. In relation to its interests in joint operations, the Company recognizes its:

• Assets, including its share of any assets held jointly;

• Liabilities, including its share of any liabilities incurred jointly;

• Revenue from the sale of its share of the output arising from the joint operation; and

• Expenses, including its share of any expenses incurred jointly.

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Basis of Preparation (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Schedule of Depreciation Rates of Major Asset Categories

The depreciation rates of the major asset categories are as follows:

Land	Not depreciated
Buildings	Straight-line basis over 10-25 years
Plant and equipment	Units-of-production basis
Mining equipment	Straight-line basis over 5-20 years
Light vehicles and other mobile equipment	Straight-line basis over 2-5 years
Furniture, computer and office equipment	Straight-line basis over 2-3 years

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Interest in Gibraltar Joint Venture (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Joint Venture Financial Information

The following is a summary of the Gibraltar joint venture financial information on a 100% basis.

	As at December 31,
	2017			2016
Cash and equivalents		52,383			79,638
Other current assets		83,323			98,233
Current assets		135,706			177,871
Non-current assets		1,167,787			1,106,866
Accounts payable and accrued liabilities		53,312			38,747
Other current financial liabilities		15,865			23,743
Current liabilities		69,177			62,490
Long-term debt		21,151			20,287
Provision for environmental rehabilitation		142,164			129,487
Other financial liability		—			14,584
Non-current liabilities		163,315			164,358
	Years ended December 31,
	2017			2016
Revenues		507,212			351,820
Production costs		(267,548	)		(278,440	)
Depletion and amortization		(75,428	)		(81,715	)
Other operating expense		(4,632	)		(3,725	)
Write-down of mine equipment		(4,735	)		—
Interest expense		(5,927	)		(6,459	)
Interest income		343			1,158
Foreign exchange gain (loss)		(907	)		22
Net earnings (loss)		148,378			(17,339	)
Other comprehensive income (loss)		90			(693	)
Comprehensive income (loss) for joint arrangement		148,468			(18,032	)

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Revenue (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Revenue

	Years ended December 31,
	2017			2016
Copper contained in concentrate		387,356			283,401
Molybdenum concentrate		21,807			5,900
Silver		2,132			3,988
Total gross revenue		411,295			293,289
Less: Treatment and refining costs		(32,996	)		(29,424	)
Revenue		378,299			263,865

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Cost of Sales (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Cost of Sales

	Years ended December 31,
	2017		2016
Site operating costs		167,338		209,381
Transportation costs		19,281		16,507
Changes in inventories of finished goods and ore stockpiles		13,964		(16,738	)
Production costs		200,583		209,150
Depletion and amortization		47,722		52,939
Cost of sales		248,305		262,089

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Compensation Expense (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Compensation Expense

	Years ended December 31,
	2017		2016
Wages, salaries and benefits		61,998		57,987
Post-employment benefits		1,491		1,309
Share-based compensation		7,100		3,682
		70,589		62,978

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Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Derivative Instruments Options Outstanding

	Notional amount		Strike price		Maturity Date		Fair value asset
At December 31, 2017
Commodity contracts
Copper put option contracts		15 million lbs		US$2.70/lb		Q1 2018		13
Copper put option contracts		15 million lbs		US$2.80/lb		Q2 2018		317
At December 31, 2016
Commodity contracts
Copper put option contracts		20 million lbs		US$2.10/lb and US$2.20/lb		Q1 2017		155

Summary of Losses Associated with Derivative Instruments

The following table outlines the losses associated with derivative instruments:

	Years ended December 31,
	2017		2016
Realized loss on copper put options		1,807		1,956
Unrealized loss on copper put options		1,970		1,044
Change in fair value of copper call option (Note 17e)		6,305		3,360
		10,082		6,360

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Other Expenses (Income) (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Other Expenses (Income)

	Years ended December 31,
	2017			2016
Write-down of mine equipment		3,551			—
Write-down of investment (Note 12)		3,850			—
Management fee income		(1,168	)		(1,043	)
Special shareholder meeting costs		—			4,894
Other financing costs		—			616
Other operating expense (income), net		108			(395	)
		6,341			4,072

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Finance Expenses (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Finance Expenses

	Years ended December 31,
	2017		2016
Interest expense		30,965		27,649
Accretion on PER (Note 20)		2,363		2,358
Loss on settlement of long-term debt		13,102		—
		46,430		30,007

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Income Tax (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Income Tax Expense (Recovery)

(a) Income tax expense (recovery)

	Years ended December 31,
	2017		2016
Current income tax:
Current period expense		1,801		836
Deferred income tax:
Origination and reversal of temporary differences		24,735		(15,307	)
Deferred tax adjustments related to prior periods		2,642		(242	)
		27,377		(15,549	)
Income tax expense (recovery)		29,178		(14,713	)

Summary of Effective Tax Rate Reconciliation

(b) Effective tax rate reconciliation

	Years ended December 31,
	2017			2016
Income tax at Canadian statutory rate of 35.62% (2016: 35.62%)		22,597			(16,424	)
Permanent differences		4,914			1,979
Tax rate differences		1,192			1,118
Foreign tax rate differential		22			(103	)
Unrecognized tax benefits		(2,206	)		(1,072	)
Deferred tax adjustments related to prior periods		2,642			(242	)
Other		17			31
Income tax expense (recovery)		29,178			(14,713	)

Summary of Deferred Tax Assets and Liabilities

(c) Deferred tax assets and liabilities

Deferred tax assets and liabilities are attributable to the following:

	As at December 31,
	2017			2016
Property, plant and equipment		(175,502	)		(151,230	)
Other financial assets		2,884			316
Provisions		19,378			17,926
Tax loss carry forwards		64,195			71,051
Deferred tax liability		(89,045	)		(61,937	)

Summary of Unrecognized Deferred Tax Assets and Liabilities

(d) Unrecognized deferred tax assets and liabilities

	As at December 31,
	2017		2016
Deductible temporary differences:
Debt		70,529		76,031
Other investments		34,873		34,840
Other financial assets		19,705		11,620
Deferred tax asset:
Debt		7,385		9,880
Other investments		4,708		4,529
Other financial assets		3,073		1,900

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Accounts Receivable (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Accounts Receivable

	As at December 31,
	2017		2016
Trade receivables		19,341		9,463
Other receivables due from joint venture partner		210		162
Goods and services tax receivable		1,094		988
Other receivables		973		2,292
		21,618		12,905

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Other Financial Assets (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Other Financial Assets

	As at December 31,
	2017		2016
Current:
Marketable securities		2,444		1,419
Copper put option contracts (Note 7)		330		155
		2,774		1,574
Long-term:
Investment in subscription receipts		2,400		10,333
Reclamation deposits (Note 20)		30,637		30,535
Restricted cash (Note 20)		7,500		7,500
		40,537		48,368

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Inventories (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Schedule of Inventories

	As at December 31,
	2017		2016
Ore stockpiles		9,332		28,186
Copper contained in concentrate		5,933		5,741
Molybdenum concentrate		217		106
Materials and supplies		24,157		26,517
		39,639		60,550

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Property, Plant & Equipment (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Property, Plant & Equipment

	Property Acquisition costs			Mineral properties			Plant and equipment			Construction in Progress			Total
Cost
At January 1, 2016		101,226			244,289			655,440			747			1,001,702
Additions		—			17,404			—			2,394			19,798
Rehabilitation cost asset		—			(27,870	)		—			—			(27,870	)
Capitalized interest 1		—			5,219			—			—			5,219
Disposals		—			—			(838	)		—			(838	)
Foreign exchange translation		(2,822	)		(214	)		(150	)		—			(3,186	)
Transfers between categories		—			—			1,683			(1,683	)		—
At December 31, 2016		98,404			238,828			656,135			1,458			994,825
Additions		—			84,641			10,696			21,030			116,367
Rehabilitation cost asset		—			8,350			—			—			8,350
Capitalized interest 1		—			2,602			—			—			2,602
Disposals		—			—			(6,924	)		—			(6,924	)
Foreign exchange translation		(6,026	)		(783	)		(315	)		—			(7,124	)
Transfers between categories		—			—			19,760			(19,760	)		—
At December 31, 2017		92,378			333,638			679,352			2,728			1,108,096
Accumulated depreciation
At January 1, 2016		—			67,581			139,363			—			206,944
Depreciation2		—			29,076			28,743			—			57,819
Disposals		—			—			(146	)		—			(146	)
At December 31, 2016		—			96,657			167,960			—			264,617
Depreciation2		—			20,033			29,472						49,505
Impairment		—			—			3,551			—			3,551
Disposals		—			—			(6,842	)		—			(6,842	)
At December 31, 2017		—			116,690			194,141			—			310,831
Net book value
At December 31, 2016		98,404			142,171			488,175			1,458			730,208
At December 31, 2017		92,378			216,948			485,211			2,728			797,265

¹  Interest related to the Florence Copper Project was capitalized until June 2017 at an annual rate of 11% (2016: 11%).

²  Depreciation included in cost of sales for 2017 and 2016 of $47,722 and $52,939 respectively.

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Accounts Payable and Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Accounts Payable and Accrued Liabilities

	As at December 31,
	2017		2016
Trade payables		23,879		28,180
Accrued liabilities		18,692		4,012
Amounts payable to BC Hydro		4,764		—
Advance payments		—		1,163
Payables to related parties (Note 26c)		47		61
		47,382		33,416

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Debt (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Debt

	As at December 31,
	2017		2016
Current:
Capital leases (b)		9,651		8,059
Secured equipment loans (c)		1,619		8,098
		11,270		16,157
Long-term:
Senior secured notes (a)		302,085		—
Capital leases (b)		14,110		11,917
Secured equipment loans (c)		1,753		3,298
Senior notes (d)		—		266,435
Senior secured credit facility (e)		—		91,483
		317,948		373,133

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Deferred Revenue (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Change in Deferred Revenue

The following table summarizes changes in deferred revenue:

Upfront cash deposit	44,151
Issuance of warrants	(1,876	)
Amortization of deferred revenue	(1,323	)
Balance at December 31, 2017	40,952

Summary of Deferred Revenue

Deferred revenue is reflected in the consolidated balance sheets as follows:

	December 31, 2017
Current		1,312
Non-current		39,640
		40,952

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Other Financial Liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Other Financial Liabilities

	As at December 31,
	2017		2016
Long-term:
Deferred share units (Note 22b)		5,714		1,535
Derivative liability - copper call option (Note 17e)		—		9,440
Amounts payable to BC Hydro (Note 16)		—		10,938
		5,714		21,913

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Provision For Environmental Rehabilitation (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Provision for Environmental Rehabilitation

	2017			2016
Beginning balance at January 1		98,454			124,445
Change in estimates		8,350			(27,870	)
Accretion		2,363			2,358
Settlements		(1,205	)		(438	)
Foreign exchange differences		(88	)		(41	)
Ending balance at December 31		107,874			98,454

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Equity (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Equity

(a) Share capital

	Common shares (thousands)
Common shares outstanding at January 1, 2016		221,809
Exercise of share options		58
Common shares outstanding at December 31, 2016		221,867
Exercise of warrants (Note 17e)		4,000
Exercise of share options		1,133
Common shares outstanding at December 31, 2017		227,000

Summary of Share Purchase Warrants

(b) Share Purchase Warrants

	Warrants (thousands)			Exercise price
Outstanding at January 1, 2017		4,000			0.51
Issued (Note 18)		3,000			2.74
Exercised		(4,000	)		0.51
Outstanding at December 31, 2017		3,000			2.74

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Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Options and Average Price

	Options (thousands)			Average price
Outstanding at January 1, 2016		11,557			2.55
Granted		2,601			0.38
Exercised		(58	)		0.38
Forfeited		(313	)		1.40
Expired		(1,846	)		5.04
Outstanding at January 1, 2017		11,941			1.74
Granted		1,911			1.25
Exercised		(1,133	)		0.78
Forfeited		(39	)		0.96
Expired		(3,399	)		2.71
Outstanding at December 31, 2017		9,281			1.40
Exercisable at December 31, 2017		7,322			1.52

Summary of Options and Average Life

Range of exercise price	Options (thousands)		Average life (years)
$0.38 to $0.68		1,939		2.5
$0.69 to $1.02		1,958		2.0
$1.03 to $1.64		1,849		3.3
$1.65 to $2.40		3,535		1.0
		9,281		1.8

Summary of Inputs Used in Measurement of Fair Value at Grant Date

The inputs used in the measurement of the fair values at grant date of the share-based payment plans are the following:

	2017			2016
Expected term (years)		4.45			4.49
Forfeiture rate		0	%		0	%
Volatility		60.6	%		52.5	%
Dividend yield		0	%		0	%
Risk-free interest rate		1.04	%		0.57	%
Weighted-average fair value per option	$	0.61		$	0.17

Summary of DSUs and PSUs issued and outstanding

The continuity of DSUs and PSUs issued and outstanding is as follows:

	DSUs (thousands)			PSUs (thousands)
Outstanding at January 1, 2016		915			462
Granted		714			1,349
Settled		(306	)		(59	)
Forfeited		—			(45	)
Outstanding at January 1, 2017		1,323			1,707
Granted		620			400
Settled		—			(888	)
Outstanding at December 31, 2017		1,943			1,219

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Future Minimum Payments of Commitments

Future minimum payments under these agreements as at December 31, 2017 are presented in the following table:

2018	13,198
2019	2,363
2020	1,451
2021	408
2022	234
2023 and thereafter	—
Total commitments	17,654

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Supplementary Cash Flow Information (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Supplemental Cash Flow Information

	For the year ended December 31,
	2017			2016
Change in non-cash working capital items
Accounts receivable		(9,199	)		(1,783	)
Inventories		16,324			(16,023	)
Prepaids		(203	)		349
Accounts payable and accrued liabilities		8,995			4,010
Interest payable		(21	)		(543	)
Income tax paid		(2,275	)		(750	)
Income tax received		—			29
		13,621			(14,711	)
Non-cash investing and financing activities
Share purchase warrants issued (Note 18)		1,876			—
Assets acquired under capital lease		13,059			—
Derivative liabilities (Note 17e)		—			7,334
Share purchase warrants exercised (Note 17e)		(830	)		830

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Financial Risk Management (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Exposure to Commodity Price Risk

The table below summarizes the impact on pre-tax earnings and equity for changes in commodity prices on the fair value of derivatives and the provisionally invoiced sales volumes.

	As at December 31,
	2017		2016
Copper increase/decrease by US$0.33/lb (2016: US$0.25/lb)1, 2		6,645		4,778

¹  The analysis is based on the assumption that the year-end copper price increases 10 percent with all other variables held constant. The relationship between the year-end copper price and the strike price of copper options has significant influence over the fair value of the derivatives. As such, a 10% decrease in the year-end copper price will not result in an equal but opposite impact on earnings after tax and equity. The closing exchange rate for the year ended December 31, 2017 of CAD/USD 1.25 (2016: 1.34) was used in the analysis.

²  At December 31, 2017, 16 million (2016: 14 million) pounds of copper in concentrate were exposed to copper price movements.

Summary of Impact on Earnings After Tax and Equity

The table below summarizes the impact on earnings after tax and equity for a change of 100 basis points in interest rates at the reporting date. This analysis assumes that all other variables, in particular foreign currency rates, remain constant. This assumes that the change in interest rates is effective from the beginning of the financial year and balances are constant over the year. However, interest rates and balances of the Company may not remain constant in the coming financial year and therefore such sensitivity analysis should be used with care.

	Years ended December 31,
	2017			2016
Fair value sensitivity for fixed-rate instruments
Senior secured notes		(1,340	)		—
Capital leases		(176	)		(200	)
Secured equipment loans		(96	)		(160	)
Senior notes		—			(1,960	)
Senior secured credit facility		—			(246	)
		(1,612	)		(2,566	)
Cash flow sensitivity for variable-rate instruments
Cash and equivalents		645			171
Reclamation deposits		209			192
		854			363

Schedule of Changes in Assets and Liabilities on Basis of Strengthening CAD Against USD

The following table demonstrates the sensitivity to a 10% strengthening in the CAD against the USD. With all other variables held constant, the Company’s shareholders equity and earnings after tax would both increase/(decrease) due to changes in the carrying value of monetary assets and liabilities. A weakening in the CAD against the USD would have had the equal but opposite effect to the amounts shown below.

	Year ended December 31,
	2017			2016
Cash and equivalents		(4,966	)		(5,429	)
Accounts receivable		(1,435	)		(699	)
Copper put option contracts		(24	)		(12	)
Accounts payable and accrued liabilities		344			283
Senior secured notes		23,293			—
Senior notes		—			20,193
Senior secured credit facility		—			7,435
Equipment loans		27			547

Summary of Fair Value Measurement of Assets

The Company uses the fair value hierarchy described in Note 2.4(c) for determining the fair value of instruments that are measured at fair value.

	Level 1		Level 2		Level 3		Total
December 31, 2017
Financial assets designated at FVTPL
Copper put option contracts		—		331		—		331
Available-for-sale financial assets
Marketable Securities		2,444		—		—		2,444
Investment in subscription receipts (Note 12)		—		—		2,400		2,400
Reclamation deposits		30,638		—		—		30,638
		33,082		331		2,400		35,813
December 31, 2016
Financial assets designated at FVTPL
Copper put option contracts		—		155		—		155
Available-for-sale financial assets
Marketable Securities		1,419		—		—		1,419
Investment in subscription receipts (Note 12)		—		—		10,333		10,333
Reclamation deposits		30,535		—		—		30,535
		31,954		155		10,333		42,442

Summary of Capital Management

In order to maintain or adjust the capital structure, the Company may issue or buy back equity, issue, buy back or repay debt, sell assets, or return capital to shareholders.

	December 31, 2017			December 31, 2016
Cash		(80,231	)		(89,030	)
Current portion of long-term debt		11,270			16,157
Long-term debt		317,948			373,133
Net debt		248,987			300,260
Shareholders’ equity		367,080			338,939

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Related Parties (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Ownership Interest of Subsidiaries

(a) Subsidiaries

	Ownership interest as at
	December 31, 2017			December 31, 2016
Gibraltar Mines Ltd.		100	%		100	%
Curis Resources Ltd.		100	%		100	%
Curis Holdings (Canada) Ltd.		100	%		100	%
Florence Copper Inc.		100	%		100	%
Aley Corporation		100	%		100	%
672520 BC Ltd.		100	%		100	%

Summary of Compensation for Key Management Personnel

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

	Year ended December 31,
	2017		2016
Salaries and benefits		5,015		5,050
Post-employment benefits		1,491		1,309
Share-based compensation		6,849		3,602
		13,355		9,961

Summary of Related Party Transactions

(c) Related party transactions

	Transaction value for the year end December 31,				Due (to) from related parties as at December 31,
	2017		2016		2017			2016
Hunter Dickinson Services Inc.:
General and administrative expenses		1,301		1,400
Exploration and evaluation expenses		98		40
		1,399		1,440		(47	)		(61	)
Gibraltar Joint Venture:
Management fee income		1,168		1,043
Reimbursable compensation expenses and third party costs		34		105
		1,202		1,148		210			162

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Reporting Entity - Additional Information (Detail)		12 Months Ended
	Mar. 31, 2010	Dec. 31, 2017
Gibraltar [member]
Disclosure of reporting entity [line items]
Ownership interest in joint venture	75.00%	75.00%

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Basis of Preparation - Schedule of Depreciation Rates of Major Asset Categories (Detail)	12 Months Ended
	Dec. 31, 2017
Land [member]
Disclosure of detailed information about property, plant and equipment [line items]
Depreciation rates of major asset categories	Not depreciated
Buildings [member]
Disclosure of detailed information about property, plant and equipment [line items]
Depreciation rates of major asset categories	Straight-line basis over 10-25 years
Plant and equipment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Depreciation rates of major asset categories	Units-of-production basis
Mineral properties [member]
Disclosure of detailed information about property, plant and equipment [line items]
Depreciation rates of major asset categories	Straight-line basis over 5-20 years
Light vehicles and other mobile equipment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Depreciation rates of major asset categories	Straight-line basis over 2-5 years
Furniture computer and office equipment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Depreciation rates of major asset categories	Straight-line basis over 2-3 years

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Interest in Gibraltar Joint Venture - Additional Information (Detail) - CAD ($)		12 Months Ended
	Mar. 31, 2010	Dec. 31, 2017
Cariboo Copper Corp [member]
Disclosure of interest in joint venture [line items]
Amount contributed for purchase of remaining proportion of ownership interest in joint venture	$ 186,800
Remaining portion of ownership interest in joint venture	25.00%	25.00%
Gibraltar [member]
Disclosure of interest in joint venture [line items]
Ownership interest in joint venture	75.00%	75.00%

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Interest in Gibraltar Joint Venture - Summary of Joint Venture Financial Information (Detail) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of joint ventures [line items]
Cash and equivalents	$ 80,231	$ 89,030	$ 68,521
Current assets	145,736	165,327
Current liabilities	61,409	54,798
Long-term debt	317,948	373,133
Provision for environmental rehabilitation	107,874	98,454
Other financial liability	5,714	21,913
Revenues	378,299	263,865
Production costs	(200,583)	(209,150)
Depletion and amortization	(47,722)	(52,939)
Other operating expense	108	(395)
Interest expense	(30,965)	(27,649)
Foreign exchange gain (loss)	16,852	8,475
Net earnings (loss)	34,262	(31,396)
Other comprehensive income (loss)	(11,968)	(3,225)
Comprehensive income (loss) for joint arrangement	22,294	(34,621)
Gibraltar [member]
Disclosure of joint ventures [line items]
Cash and equivalents	52,383	79,638
Other current assets	83,323	98,233
Current assets	135,706	177,871
Non-current assets	1,167,787	1,106,866
Accounts payable and accrued liabilities	53,312	38,747
Other current financial liabilities	15,865	23,743
Current liabilities	69,177	62,490
Long-term debt	21,151	20,287
Provision for environmental rehabilitation	142,164	129,487
Other financial liability		14,584
Non-current liabilities	163,315	164,358
Revenues	507,212	351,820
Production costs	(267,548)	(278,440)
Depletion and amortization	(75,428)	(81,715)
Other operating expense	(4,632)	(3,725)
Write-down of mine equipment	(4,735)
Interest expense	(5,927)	(6,459)
Interest income	343	1,158
Foreign exchange gain (loss)	(907)	22
Net earnings (loss)	148,378	(17,339)
Other comprehensive income (loss)	90	(693)
Comprehensive income (loss) for joint arrangement	$ 148,468	$ (18,032)

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Revenue - Summary of Revenue (Detail) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Revenues [Abstract]
Revenue from sale of copper	$ 387,356	$ 283,401
Revenue from sale of Molybdenum concentrate	21,807	5,900
Revenue from sale of Silver	2,132	3,988
Revenue from sale of goods	411,295	293,289
Less: Treatment and refining costs	(32,996)	(29,424)
Revenue	$ 378,299	$ 263,865

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Cost of Sales - Summary of Cost of Sales (Detail) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of cost of sales [Abstract]
Site operating costs	$ 167,338	$ 209,381
Transportation costs	19,281	16,507
Changes in inventories of finished goods and ore stockpiles	13,964	(16,738)
Production costs	200,583	209,150
Depletion and amortization	47,722	52,939
Cost of sales	$ 248,305	$ 262,089

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Compensation Expense - Summary of Compensation Expense (Detail) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of compensation expense [abstract]
Wages, salaries and benefits	$ 61,998	$ 57,987
Post-employment benefits	1,491	1,309
Share-based compensation	7,100	3,682
Compensation expense	$ 70,589	$ 62,978

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Derivative Instruments - Additional Information (Detail) lb in Millions		12 Months Ended
	Jun. 14, 2017 CAD ($)	Dec. 31, 2017 CAD ($) $ / lb lb	Dec. 31, 2016 CAD ($)
Disclosure of detailed information about financial instruments [line items]
Purchase of copper put options		$ 3,952,000	$ 3,777,000
Settlement of copper call option	$ 15,745	$ 15,745,000
Option contract [member]
Disclosure of detailed information about financial instruments [line items]
Number of pounds of copper for which put options were purchased | lb		75
Purchase of copper put options		$ 3,952,000
Bottom of range [member] | Option contract [member]
Disclosure of detailed information about financial instruments [line items]
Maturity date		From the second quarter of 2017
Strike price | $ / lb		2.40
Top of range [member] | Option contract [member]
Disclosure of detailed information about financial instruments [line items]
Maturity date		To the second quarter of 2018
Strike price | $ / lb		2.80

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Derivative Instruments - Summary of Derivative Instruments Options Outstanding (Detail) - Commodity contracts [member] $ in Thousands, lb in Millions	12 Months Ended
	Dec. 31, 2017 CAD ($) $ / lb lb	Dec. 31, 2016 CAD ($) lb
Copper put option contracts matured in Q1 2018 [member]
Disclosure of detailed information about financial instruments [line items]
Fair value asset | $	$ 13
Notional amount | lb	15
Strike price | $ / lb	2.70
Maturity date	Q1 2018
Copper put option contracts matured in Q2 2018 [member]
Disclosure of detailed information about financial instruments [line items]
Fair value asset | $	$ 317
Notional amount | lb	15
Strike price | $ / lb	2.80
Maturity date	Q2 2018
Copper put option contracts matured in Q1 2017 [member]
Disclosure of detailed information about financial instruments [line items]
Fair value asset | $		$ 155
Notional amount | lb		20
Maturity date		Q1 2017
Strike price		US$2.10/lb and US$2.20/lb

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Derivative Instruments - Summary of Losses Associated with Derivative Instruments (Detail) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about financial instruments [line items]
Losses associated with derivatives	$ (10,082)	$ (6,360)
Copper put option contracts [member]
Disclosure of detailed information about financial instruments [line items]
Realized loss on copper put options	1,807	1,956
Unrealized loss on copper put options	1,970	1,044
Change in fair value of copper call option liability	6,305	3,360
Losses associated with derivatives	$ 10,082	$ 6,360

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Other Expenses (Income) - Summary of Other Expenses (Income) (Detail) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Other Expense Income [Abstract]
Write-down of mine equipment	$ 3,551
Write-down of investment	3,850
Management fee income	(1,168)	$ (1,043)
Special shareholder meeting costs		4,894
Other financing costs		616
Other operating expense (income), net	108	(395)
Other (income) expenses	$ 6,341	$ 4,072

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Finance Expenses - Summary of Finance Expenses (Detail) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Finance Expense [abstract]
Interest expense	$ 30,965	$ 27,649
Accretion on PER	2,363	2,358
Loss on settlement of long-term debt	13,102
Finance expenses	$ 46,430	$ 30,007

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Finance Expenses - Additional Information (Detail) $ in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2017 CAD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CAD ($)
Disclosure of finance expense [line items]
Long-term debt	$ 317,948			$ 373,133
Loss on settlement of long-term debt	13,102
Write-off deferred financing costs	9,203
Additional interest costs	$ 3,899
Senior Notes 1 [member]
Disclosure of finance expense [line items]
Notes redeemed		$ 200
Long-term debt				266,435
Senior secured credit facility [member]
Disclosure of finance expense [line items]
Long-term debt			$ 70	$ 91,483

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Income Tax - Summary of Income Tax Expense (Recovery) (Detail) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Major components of tax expense (income) [abstract]
Current period expense	$ 1,801	$ 836
Origination and reversal of temporary differences	24,735	(15,307)
Deferred tax adjustments related to prior periods	2,642	(242)
Deferred income tax	27,377	(15,549)
Income tax expense (recovery)	$ 29,178	$ (14,713)

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Income Tax - Summary of Effective Tax Rate Reconciliation (Detail) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of average effective tax rate and applicable tax rate [abstract]
Income tax at Canadian statutory rate of 35.62% (2016: 35.62%)	$ 22,597	$ (16,424)
Permanent differences	4,914	1,979
Tax rate differences	1,192	1,118
Foreign tax rate differential	22	(103)
Unrecognized tax benefits	(2,206)	(1,072)
Deferred tax adjustments related to prior periods	2,642	(242)
Other	17	31
Income tax expense (recovery)	$ 29,178	$ (14,713)

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Income Tax - Summary of Effective Tax Rate Reconciliation (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of average effective tax rate and applicable tax rate [abstract]
Canadian statutory rate	35.62%	35.62%

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Income Tax - Summary of Deferred Tax Assets and Liabilities (Detail) - CAD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets and liabilities [abstract]
Property, plant and equipment	$ (175,502)	$ (151,230)
Other financial assets	2,884	316
Provisions	19,378	17,926
Tax loss carry forwards	64,195	71,051
Deferred tax liability	$ (89,045)	$ (61,937)

XML

Income Tax - Additional Information (Detail) - CAD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Unrecognized tax liabilities	$ 0
Canada [member] | Unused tax losses [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Pre-tax loss carryforward	$ 187,318,000	$ 194,929,000
Canada [member] | Unused tax losses [member] | Bottom of range [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Tax loss carry forwards expiration year	2027
Canada [member] | Unused tax losses [member] | Top of range [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Tax loss carry forwards expiration year	2037
United states [member] | Unused tax losses [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Pre-tax loss carryforward	$ 65,555,000	$ 56,273,000
United states [member] | Unused tax losses [member] | Bottom of range [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Tax loss carry forwards expiration year	2027
United states [member] | Unused tax losses [member] | Top of range [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Tax loss carry forwards expiration year	2037

XML

Income Tax - Summary of Unrecognized Deferred Tax Assets and Liabilities (Detail) - CAD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Debt [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deductible temporary differences	$ 70,529	$ 76,031
Deferred tax asset	7,385	9,880
Other investments [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deductible temporary differences	34,873	34,840
Deferred tax asset	4,708	4,529
Other financial assets [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deductible temporary differences	19,705	11,620
Deferred tax asset	$ 3,073	$ 1,900

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Accounts Receivable - Summary of Accounts Receivable (Detail) - CAD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Trade and other current receivables [abstract]
Trade receivables	$ 19,341	$ 9,463
Other receivables due from joint venture partner	210	162
Goods and services tax receivable	1,094	988
Other receivables	973	2,292
Accounts recevables	$ 21,618	$ 12,905

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Other Financial Assets - Summary of Other Financial Assets (Detail) - CAD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Disclosure of financial assets [line items]
Other current financial assets	$ 2,774	$ 1,574
Other non current financial assets	40,537	48,368
Marketable securities [member]
Disclosure of financial assets [line items]
Other current financial assets	2,444	1,419
Copper put option contracts [member]
Disclosure of financial assets [line items]
Other current financial assets	330	155
Investment in subscription receipts [member]
Disclosure of financial assets [line items]
Other non current financial assets	2,400	10,333
Reclamation deposits [member]
Disclosure of financial assets [line items]
Other non current financial assets	30,637	30,535
Restricted cash [Member]
Disclosure of financial assets [line items]
Other non current financial assets	$ 7,500	$ 7,500

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Other Financial Assets - Additional Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2017 CAD ($)
Disclosure of financial assets [line items]
Write-down of investment	$ 3,850
Investments In Subscription Receipts [member]
Disclosure of financial assets [line items]
Write-down of investment	3,850
Unrealized loss of investment	$ 4,083

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Inventories - Schedule of Inventories (Detail) - CAD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Classes of current inventories [abstract]
Ore stockpiles	$ 9,332	$ 28,186
Copper contained in concentrate	5,933	5,741
Molybdenum concentrate	217	106
Materials and supplies	24,157	26,517
Inventories	$ 39,639	$ 60,550

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Inventories - Additional Information (Detail) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Classes of current inventories [abstract]
Reversal of impairment of inventories	$ 4,639
Impairment of inventories		$ 17,202

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Property, Plant & Equipment - Summary of Property Plant & Equipment (Detail) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	$ 730,208
Ending balance	797,265	$ 730,208
Cost [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	994,825	1,001,702
Additions	116,367	19,798
Rehabilitation cost asset	8,350	(27,870)
Capitalized interest	2,602	5,219
Disposals	(6,924)	(838)
Foreign exchange translation	(7,124)	(3,186)
Ending balance	1,108,096	994,825
Accumulated depreciation [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	264,617	206,944
Disposals	(6,842)	(146)
Ending balance	310,831	264,617
Depreciation	49,505	57,819
Impairment	3,551
Property acquisition costs [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	98,404
Ending balance	92,378	98,404
Property acquisition costs [member] | Cost [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	98,404	101,226
Foreign exchange translation	(6,026)	(2,822)
Ending balance	92,378	98,404
Mineral properties [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	142,171
Ending balance	216,948	142,171
Mineral properties [member] | Cost [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	238,828	244,289
Additions	84,641	17,404
Rehabilitation cost asset	8,350	(27,870)
Capitalized interest	2,602	5,219
Foreign exchange translation	(783)	(214)
Ending balance	333,638	238,828
Mineral properties [member] | Accumulated depreciation [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	96,657	67,581
Ending balance	116,690	96,657
Depreciation	20,033	29,076
Plant and equipment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	488,175
Ending balance	485,211	488,175
Plant and equipment [member] | Cost [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	656,135	655,440
Additions	10,696
Disposals	(6,924)	(838)
Foreign exchange translation	(315)	(150)
Transfers between categories	19,760	1,683
Ending balance	679,352	656,135
Plant and equipment [member] | Accumulated depreciation [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	167,960	139,363
Disposals	(6,842)	(146)
Ending balance	194,141	167,960
Depreciation	29,472	28,743
Impairment	3,551
Construction in progress [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	1,458
Ending balance	2,728	1,458
Construction in progress [member] | Cost [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	1,458	747
Additions	21,030	2,394
Transfers between categories	(19,760)	(1,683)
Ending balance	$ 2,728	$ 1,458

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Property, Plant & Equipment - Summary of Property Plant & Equipment (Parenthetical) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Depreciation and Amortization, Including Cost of Sales [member]
Disclosure of detailed information about property, plant and equipment [line items]
Depreciation	$ 47,722	$ 52,939
Florence copper project [member]
Disclosure of detailed information about property, plant and equipment [line items]
Capitalized interest rate	11.00%	11.00%

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Property, Plant & Equipment - Additional Information (Detail) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about property, plant and equipment [line items]
Assets acquired under capital lease	$ 13,059
Net carrying amount of leased assets	51,918	$ 53,476
Mineral properties [member]
Disclosure of detailed information about property, plant and equipment [line items]
Depreciation on non-cash additions of mining assets	6,371
Gibraltor [member]
Disclosure of detailed information about property, plant and equipment [line items]
Capitalized stripping costs	75,408	10,065
Other capital expenditures	10,728	3,932
Increase in Carrying Value of Property [member]
Disclosure of detailed information about property, plant and equipment [line items]
Increase in rehabilitation cost asset	8,350
Aley niobium project [member]
Disclosure of detailed information about property, plant and equipment [line items]
Capitalized development costs	1,713	840
Property acquisition costs	5,436
Florence copper project [member]
Disclosure of detailed information about property, plant and equipment [line items]
Capitalized development costs	15,245	$ 4,961
Property acquisition costs	86,940
New prosperity gold-copper property [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property acquisition costs	1
Harmony gold property [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property acquisition costs	$ 1

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Goodwill - Additional Information (Detail) - CAD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Disclosure of reconciliation of changes in goodwill [abstract]
Goodwill	$ 5,172	$ 5,536

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Accounts Payable and Accrued Liabilities - Summary of Accounts Payable and Accrued Liabilities (Detail) - CAD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Accounts Payable And Accrued Liabilities [Line Items]
Trade payables	$ 23,879	$ 28,180
Accrued liabilities	18,692	4,012
Advance payments		1,163
Payables to related parties (Note 26c)	47	61
Accounts payable and accrued liabilities	47,382	$ 33,416
BC Hydro [member]
Disclosure Of Accounts Payable And Accrued Liabilities [Line Items]
Trade payables	$ 4,764

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Accounts Payable and Accrued Liabilities - Additional Information (Detail) - BC Hydro [member] $ in Thousands	12 Months Ended
	Dec. 31, 2017 CAD ($) $ / lb
Disclosure Of Accounts Payable And Accrued Liabilities [Line Items]
Repayment of electricity costs | $	$ 6,174
Contract period	5 years
Percentage of maximum deferred electricity costs	75.00%
Average copper price exceeds threshold amount per pound | $ / lb	3.40
Deferral program effective date	Mar. 01, 2016
Prime rate plus [member]
Disclosure Of Accounts Payable And Accrued Liabilities [Line Items]
Interest rate prime rate	5.00%

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Debt - Summary of Debt (Detail) $ in Thousands, $ in Millions	Dec. 31, 2017 CAD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CAD ($)
Current:
Current portion of long-term debt	$ 11,270		$ 16,157
Long-term:
Long-term debt	317,948		373,133
Capital leases [member]
Current:
Current portion of long-term debt	9,651		8,059
Long-term:
Long-term debt	14,110		11,917
Secured equipment loans [member]
Current:
Current portion of long-term debt	1,619		8,098
Long-term:
Long-term debt	1,753		3,298
Senior Secured Notes [member]
Long-term:
Long-term debt	$ 302,085
Senior Notes 1 [member]
Long-term:
Long-term debt			266,435
Senior secured credit facility [member]
Long-term:
Long-term debt		$ 70	$ 91,483

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Debt - Additional Information (Detail) shares in Millions					1 Months Ended			12 Months Ended
	Jun. 14, 2017 CAD ($)	Jun. 14, 2017 USD ($)	Jan. 29, 2016 CAD ($) t shares	Jan. 29, 2016 USD ($) t shares	Jun. 30, 2017 CAD ($)	Jun. 30, 2017 USD ($)	Apr. 30, 2011 USD ($)	Dec. 31, 2017 CAD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CAD ($)	Jan. 29, 2016 USD ($)
Disclosure of detailed information about borrowings [line items]
Net proceeds from issuance of senior secured notes								$ 317,596,000
Long-term debt								317,948,000		$ 373,133,000
Settlement of copper call option	$ 15,745							$ 15,745,000
Exercise price of warrants per share								0.51
Capital leases [member]
Disclosure of detailed information about borrowings [line items]
Maturity date								2018 to 2022.
Frequency of payments								Monthly
Carrying value								$ 51,918,000		53,476,000
Long-term debt								$ 14,110,000		11,917,000
Capital leases [member] | Bottom of range [member]
Disclosure of detailed information about borrowings [line items]
Interest rate								3.50%	3.50%
Capital leases [member] | Top of range [member]
Disclosure of detailed information about borrowings [line items]
Interest rate								5.80%	5.80%
Senior Secured Notes [member]
Disclosure of detailed information about borrowings [line items]
Notes issued						$ 250,000
Maturity date					June 15, 2022	June 15, 2022
Interest rate						8.75%
Frequency of payments					Semi-annually	Semi-annually
Percentage of par value of debt					99.00%	99.00%
Other transaction costs incurred					$ 9,326,000
Net proceeds from issuance of senior secured notes					317,596,000	$ 240,468,000
Redeemable percentage								101.00%
Long-term debt								$ 302,085,000
Senior Secured Notes [member] | Until June Fifteen Two Thousand Nineteen [member]
Disclosure of detailed information about borrowings [line items]
Redemption price percentage								108.75%
Redeemable percentage								35.00%
Senior Secured Notes [member] | Bottom of range [member]
Disclosure of detailed information about borrowings [line items]
Redemption price percentage								100.00%
Senior Secured Notes [member] | Bottom of range [member] | On or after June fifteen two thousand nineteen [member]
Disclosure of detailed information about borrowings [line items]
Redeemable percentage								100.00%
Senior Secured Notes [member] | Top of range [member]
Disclosure of detailed information about borrowings [line items]
Redemption price percentage								104.375%
Secured equipment loans [member]
Disclosure of detailed information about borrowings [line items]
Maturity date								2018 to 2020
Interest rate								5.60%	5.60%
Frequency of payments								Monthly
Carrying value								$ 20,912,000		50,752,000
Long-term debt								$ 1,753,000		3,298,000
Senior secured credit facility [member]
Disclosure of detailed information about borrowings [line items]
Long-term debt									$ 70,000,000	91,483,000
Interest in joint venture								75.00%
Proceeds from borrowings			$ 46,444,000	$ 33,200,000
Remaining borrowing capacity			$ 47,161,000								$ 36,800,000
Repayment of borrowings	104,901,000	$ 79,400,000
Settlement of copper call option					$ 15,745,000
Issued share purchase warrants to acquire common shares | shares			4	4
Exercise price of warrants per share			0.51	0.51
Total deferred debt financing costs										11,257,000
Senior secured credit facility [member] | EXP T1 Ltd [member]
Disclosure of detailed information about borrowings [line items]
Maturity date			March 29, 2019	March 29, 2019
Long-term debt											$ 70,000,000
Senior secured credit facility [member] | EXP T1 Ltd [member] | Three Month LIBOR Plus [member]
Disclosure of detailed information about borrowings [line items]
Interest rate			7.50%								7.50%
Senior secured credit facility [member] | EXP T1 Ltd [member] | LIBOR [member]
Disclosure of detailed information about borrowings [line items]
Interest rate			1.00%								1.00%
Senior secured credit facility [member] | Purchased call options [member]
Disclosure of detailed information about borrowings [line items]
Issued volume of copper | t			7,500	7,500
Strike price of issued copper			2.04	2.04
Average maximum amount payable for copper											$ 15,000,000
Settlement of copper call option	$ 15,745,000	$ 11,900,000
Senior secured credit facility [member] | Bottom of range [member]
Disclosure of detailed information about borrowings [line items]
Minimum working capital balance											$ 20,000,000
Senior Notes 1 [member]
Disclosure of detailed information about borrowings [line items]
Notes issued							$ 200,000
Interest rate							7.75%
Frequency of payments							Semi-annually
Percentage of par value of debt	100.00%	100.00%
Other transaction costs incurred	$ 269,185,000	$ 203,800
Long-term debt										$ 266,435,000

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Deferred Revenue - Additional Information (Detail) $ / shares in Units, $ in Thousands, shares in Millions, $ in Millions				12 Months Ended
	Mar. 03, 2017 USD ($) oz shares	Mar. 03, 2017 CAD ($) oz $ / shares	Mar. 31, 2010	Dec. 31, 2017
Gibraltar [member]
Disclosure of deferred income [line Items]
Ownership interest in joint venture			75.00%	75.00%
Osisko Gold Royalties Ltd [member]
Disclosure of deferred income [line Items]
Upfront cash deposit received | $	$ 33
Quantity of silver deliverable | oz		5,900,000
Percentage of production to be delivered after threshold	35.00%
Cash received per ounce of silver deliveries | oz	2.75
Successive renewal term of sale agreement	10 years
Share purchase warrants issued | shares	3
Warrants exercise price | $ / shares		$ 2.74
Estimated fair value of warrants | $		$ 1,876
Fair value assumption, expected life	3 years
Fair value assumption, expected volatility	61.00%
Fair value assumption, expected dividend yield	0.00%
Fair value assumption, risk-free interest rate	0.90%
Osisko Gold Royalties Ltd [member] | Bottom of range [member]
Disclosure of deferred income [line Items]
Sale agreement term	50 years
Osisko Gold Royalties Ltd [member] | Gibraltar [member]
Disclosure of deferred income [line Items]
Ownership interest in joint venture	75.00%

XML

Deferred Revenue - Summary of Change in Deferred Revenue (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2017 CAD ($)
Accruals and deferred income [abstract]
Upfront cash deposit	$ 44,151
Issuance of warrants	(1,876)
Amortization of deferred revenue	(1,323)
Ending balance	$ 40,952

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Deferred Revenue - Summary of Deferred Revenue (Detail) $ in Thousands	Dec. 31, 2017 CAD ($)
Accruals and deferred income [abstract]
Current	$ 1,312
Non-current	39,640
Ending balance	$ 40,952

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Other Financial Liabilities - Summary of Other Financial Liabilities (Detail) - CAD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Other Financial Liabilities [Abstract]
Deferred share units	$ 5,714	$ 1,535
Derivative liability - copper call option		9,440
Amounts payable to BC Hydro		10,938
Other financial liabilities	$ 5,714	$ 21,913

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Other Financial Liabilities - Additional Information (Detail) - CAD ($)		1 Months Ended	12 Months Ended
	Jun. 14, 2017	Jun. 30, 2017	Dec. 31, 2017
Disclosure Of Other Financial Liabilities [Line Items]
Settlement of copper call option	$ 15,745		$ 15,745,000
Senior secured credit facility [member]
Disclosure Of Other Financial Liabilities [Line Items]
Settlement of copper call option		$ 15,745,000

XML

Provision For Environmental Rehabilitation - Summary of Provision for Environmental Rehabilitation (Detail) - Provision for decommissioning, restoration and rehabilitation costs [member] - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of other provisions [line items]
Beginning balance	$ 98,454	$ 124,445
Change in estimates	8,350	(27,870)
Accretion	2,363	2,358
Settlements	(1,205)	(438)
Foreign exchange differences	(88)	(41)
Ending balance	$ 107,874	$ 98,454

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Provision for Environmental Rehabilitation - Additional Information (Detail) - Gibraltar [member] - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Standby letters of credit1 [member]
Disclosure of other provisions [line items]
Reclamation bonds issued	$ 6,515
Cash collateral	2,002
Restricted cash	$ 7,500
Provision for decommissioning, restoration and rehabilitation costs [member]
Disclosure of other provisions [line items]
Pre-tax discount rate	2.26%	2.31%
Inflation rate	2.00%	2.00%
Provision for decommissioning, restoration and rehabilitation costs [member] | Top of range [member]
Disclosure of other provisions [line items]
Costs incurred period	100 years

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Equity - Summary of Equity (Detail) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Equity [abstract]
Common shares outstanding beginning balance	221,867	221,809
Exercise of warrants	4,000
Exercise of share options	1,133	58
Common shares outstanding ending balance	227,000	221,867

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Equity - Summary of Equity (Parenthetical) (Detail)	Dec. 31, 2017 $ / shares
Equity [abstract]
Common share par value	$ 0

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Equity - Summary of Share Purchase Warrants (Detail) shares in Thousands	12 Months Ended
	Dec. 31, 2017 $ / shares shares
Disclosure of share purchase warrants [Abstract]
Outstanding at January 1, 2017	4,000
Issued (Note 18)	3,000
Exercised	(4,000)
Outstanding at December 31, 2017	3,000
Outstanding at January 1, 2017 | $ / shares	$ 0.51
Issued (Note 18) | $ / shares	$ 2.74
Exercised	0.51
Outstanding at December 31, 2017 | $ / shares	$ 2.74

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Share-based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CAD ($) shares $ / shares	Dec. 31, 2016 CAD ($) shares $ / shares
Disclosure of terms and conditions of share-based payment arrangement [line items]
Share options granted	1,911,000	2,601,000
Options exercised	1,133,000	58,000
Performance share units settlement days	5 days
Expense from share-based payment transactions | $	$ 7,100	$ 3,682
Performance share units (PSUs) [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Settled	887,792	59,000
Number of share options granted in share-based payment arrangement | shares	400,000	1,349,292
Weighted average fair value at measurement date share options granted | $	$ 791	$ 1,080
Deferred Share Units [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Settled | shares		306,000
Number of share options granted in share-based payment arrangement | shares	620,000	714,000
Weighted average fair value at measurement date share options granted | $	$ 791	$ 1,080
Weighted average fair value at measurement date share awards granted per share	$ 1.28	$ 0.38
Directors, executives and employees [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Share options granted | shares	1,910,500	2,601,000
Total fair value of options granted | $	$ 1,165	$ 442
Weighted average grant-date fair value	$ 0.61	$ 0.17
Options exercised	1,132,600
Weighted-average share price	$ 0.78
Top of range [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Maximum allowable under the plan	9.50%
Options exercisable period	Five years
Top of range [member] | Performance share units (PSUs) [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Percentage of performance factor	250.00%
Performance share units settlement price per share	$ 2.25
Weighted average fair value at measurement date share awards granted per share	$ 2.33	$ 0.66
Top of range [member] | Independent directors [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Maximum allowable under the plan for independent directors	1.00%
Bottom of range [member] | Performance share units (PSUs) [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Percentage of performance factor	0.00%
Performance share units settlement price per share	$ 1.75

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Share-based Compensation - Summary of Options and Average Price (Detail) pure in Thousands	12 Months Ended
	Dec. 31, 2017 CAD ($)	Dec. 31, 2016 CAD ($)
Disclosure of terms and conditions of share-based payment arrangement [abstract]
Options, Outstanding beginning balance	11,941	11,557
Options, Granted	1,911	2,601
Options, Exercised	(1,133)	(58)
Options, Forfeited	(39)	(313)
Options, Expired	(3,399)	(1,846)
Options, Outstanding ending balance	9,281	11,941
Average price, Outstanding beginning balance	$ 1.74	$ 2.55
Options, Exercisable	7,322
Average price, Granted	$ 1.25	0.38
Average price, Exercised	0.78	0.38
Average price, Forfeited	0.96	1.40
Average price, Expired	2.71	5.04
Average price, Outstanding ending balance	1.40	$ 1.74
Average price, Exercisable	$ 1.52

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Share-based Compensation - Summary of Options and Average Life (Detail) shares in Thousands	Dec. 31, 2017 CAD ($) shares	Dec. 31, 2016	Dec. 31, 2015
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Exercise price, option	9,281,000	11,941,000	11,557,000
Exercise price, Average life (years)	1.8
$0.38 to $0.68 [Member]
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Exercise price, option | shares	1,939
Exercise price, Average life (years)	2.5
$0.69 to $1.02 [Member]
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Exercise price, option | shares	1,958
Exercise price, Average life (years)	2.0
$1.03 to $1.64 [Member]
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Exercise price, option | shares	1,849
Exercise price, Average life (years)	3.3
$1.65 to $2.40 [Member]
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Exercise price, option | shares	3,535
Exercise price, Average life (years)	1.0
Bottom of range [member] | $0.38 to $0.68 [Member]
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Exercise price	$ 0.38
Bottom of range [member] | $0.69 to $1.02 [Member]
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Exercise price	0.69
Bottom of range [member] | $1.03 to $1.64 [Member]
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Exercise price	1.03
Bottom of range [member] | $1.65 to $2.40 [Member]
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Exercise price	1.65
Top of range [member] | $0.38 to $0.68 [Member]
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Exercise price	0.68
Top of range [member] | $0.69 to $1.02 [Member]
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Exercise price	1.02
Top of range [member] | $1.03 to $1.64 [Member]
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Exercise price	1.64
Top of range [member] | $1.65 to $2.40 [Member]
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Exercise price	$ 2.40

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Share-based Compensation - Summary of Inputs Used in Measurement of Fair Value at Grant Date (Detail)	12 Months Ended
	Dec. 31, 2017 CAD ($) yr	Dec. 31, 2016 CAD ($) yr
Disclosure of terms and conditions of share-based payment arrangement [abstract]
Expected term (years) | yr	4.45	4.49
Forfeiture rate	0.00%	0.00%
Volatility	60.60%	52.50%
Dividend yield	0.00%	0.00%
Risk-free interest rate	1.04%	0.57%
Weighted-average fair value per option | $	$ 0.61	$ 0.17

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Share-based Compensation - Summary of DSUs and PSUs Issued and Outstanding (Detail)	12 Months Ended
	Dec. 31, 2017 shares	Dec. 31, 2016 shares
Deferred Share Units [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Outstanding at beginning balance	1,323,000	915,000
Granted	620,000	714,000
Settled		(306,000)
Outstanding at ending balance	1,943,000	1,323,000
Performance share units (PSUs) [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Outstanding at beginning balance	1,707,000	462,000
Granted	400,000	1,349,292
Settled	(887,792)	(59,000)
Forfeited		(45,000)
Outstanding at ending balance	1,219,000	1,707,000

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Commitments and Contingencies - Summary of Future Minimum Payments of Commitments (Detail) $ in Thousands	Dec. 31, 2017 CAD ($)
Disclosure of commitments [Line Items]
Commitments	$ 17,654
2018 [Member]
Disclosure of commitments [Line Items]
Commitments	13,198
2019 [Member]
Disclosure of commitments [Line Items]
Commitments	2,363
2020 [member]
Disclosure of commitments [Line Items]
Commitments	1,451
2021 [member]
Disclosure of commitments [Line Items]
Commitments	408
2022 [member]
Disclosure of commitments [Line Items]
Commitments	$ 234

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Commitments and Contingencies - Additional Information (Detail) - CAD ($) $ in Thousands		12 Months Ended
	Mar. 31, 2010	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Commitments And Contingent Liabilities [Line Items]
Capital expenditure		$ 700	$ 189
Cariboo Copper Corp [member]
Disclosure Of Commitments And Contingent Liabilities [Line Items]
Remaining portion of ownership interest in joint venture	25.00%	25.00%
Gibraltar [member]
Disclosure Of Commitments And Contingent Liabilities [Line Items]
Capital expenditure		$ 933	$ 251
Capital lease and equipment loans		100.00%
Ownership interest in joint venture	75.00%	75.00%
JV partner's portion of capital lease and equipment loans		$ 9,044

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Supplementary Cash Flow Information - Schedule of Supplementary Cash Flow Information (Detail) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of supplementary cash flow information [abstract]
Accounts receivable	$ (9,199)	$ (1,783)
Inventories	16,324	(16,023)
Prepaids	(203)	349
Accounts payable and accrued liabilities	8,995	4,010
Interest payable	(21)	(543)
Income tax paid	(2,275)	(750)
Income tax received		29
Total	13,621	(14,711)
Share purchase warrants issued (Note 18)	1,876
Assets acquired under capital lease	13,059
Derivative liabilities (Note 17e)		7,334
Share purchase warrants exercised (Note 17e)	$ (830)	$ 830

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Financial Risk Management - Exposure to Commodity Price Risk (Detail) - CAD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Commodity price risk [member]
Disclosure of commodity price risk for financial instruments [line items]
Copper increase/decrease	$ 6,645	$ 4,778

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Financial Risk Management - Exposure to Commodity Price Risk (Parenthetical) (Detail) lb in Millions	12 Months Ended
	Dec. 31, 2017 lb	Dec. 31, 2016 lb
Disclosure of commodity price risk for financial instruments [line items]
Assumed percentage of copper price increases or decrease	10.00%
Copper in concentrate exposed to price movements	16	14
U.S. dollars [member]
Disclosure of commodity price risk for financial instruments [line items]
US dollar increase in commodity price per lb of copper	0.33	0.25
Closing exchange rate	1.25	1.34

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Financial Risk Management - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2017 CAD ($) Loans	Dec. 31, 2016
Disclosure Of Financial Risk Management [Line Items]
Percentage CAD strengthening against USD	10.00%
Number of default on loans payable | Loans	0
Impairment loss, trade receivables	$ 0
Fair value of senior secured notes	322,306
Carrying value	302,085
Transfers out of Level 1 into Level 2 of fair value hierarchy	0
Transfers out of Level 2 into Level 1 of fair value hierarchy	0
Transfers out of Level 3 into Level 2 of fair value hierarchy	0
Transfers out of Level 2 into Level 3 of fair value hierarchy	$ 0
Discount rate used for determining the fair value of the capital leases and equipment loans (liabilities)	4.10%
Customer One [Member]
Disclosure Of Financial Risk Management [Line Items]
Revenue from significant customers	81.00%	95.00%
Customer Two [Member]
Disclosure Of Financial Risk Management [Line Items]
Revenue from significant customers	81.00%	95.00%
Commodity Derivatives [member]
Disclosure Of Financial Risk Management [Line Items]
Interest rate basis points	100 basis points

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Financial Risk Management - Summary of Impact on Earnings After Tax and Equity (Detail) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Schedule of Interest Rate Sensitivity Analysis [Line Items]
Fair value sensitivity for fixed-rate instruments	$ (1,612)	$ (2,566)
Cash flow sensitivity for variable-rate instruments	854	363
Senior Secured Notes [member]
Schedule of Interest Rate Sensitivity Analysis [Line Items]
Fair value sensitivity for fixed-rate instruments	(1,340)
Cash and cash equivalent [member]
Schedule of Interest Rate Sensitivity Analysis [Line Items]
Cash flow sensitivity for variable-rate instruments	645	171
Reclamation deposits [member]
Schedule of Interest Rate Sensitivity Analysis [Line Items]
Cash flow sensitivity for variable-rate instruments	209	192
Capital leases [member]
Schedule of Interest Rate Sensitivity Analysis [Line Items]
Fair value sensitivity for fixed-rate instruments	(176)	(200)
Secured equipment loans [member]
Schedule of Interest Rate Sensitivity Analysis [Line Items]
Fair value sensitivity for fixed-rate instruments	$ (96)	(160)
Senior Notes 1 [member]
Schedule of Interest Rate Sensitivity Analysis [Line Items]
Fair value sensitivity for fixed-rate instruments		(1,960)
Senior secured credit facility [member]
Schedule of Interest Rate Sensitivity Analysis [Line Items]
Fair value sensitivity for fixed-rate instruments		$ (246)

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Financial Risk Management - Schedule of Changes in Assets and Liabilities on Basis of Strengthening CAD Against USD (Detail) - CAD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Cash and cash equivalent [member]
Disclosure Foreign Currency Sensitivity Analysis [Line Items]
Change in financial assets and liabilities due to exchange rate	$ (4,966)	$ (5,429)
Accounts receivable [Member]
Disclosure Foreign Currency Sensitivity Analysis [Line Items]
Change in financial assets and liabilities due to exchange rate	(1,435)	(699)
Copper put option contracts [member]
Disclosure Foreign Currency Sensitivity Analysis [Line Items]
Change in financial assets and liabilities due to exchange rate	(24)	(12)
Senior Secured Notes [member]
Disclosure Foreign Currency Sensitivity Analysis [Line Items]
Change in financial assets and liabilities due to exchange rate	23,293
Accounts payable and accrued liabilities [Member]
Disclosure Foreign Currency Sensitivity Analysis [Line Items]
Change in financial assets and liabilities due to exchange rate	344	283
Senior Notes 1 [member]
Disclosure Foreign Currency Sensitivity Analysis [Line Items]
Change in financial assets and liabilities due to exchange rate		20,193
Senior secured credit facility [member]
Disclosure Foreign Currency Sensitivity Analysis [Line Items]
Change in financial assets and liabilities due to exchange rate		7,435
Secured equipment loans [member]
Disclosure Foreign Currency Sensitivity Analysis [Line Items]
Change in financial assets and liabilities due to exchange rate	$ 27	$ 547

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Financial Risk Management - Summary of Derivative Instruments Options Outstanding (Detail) - CAD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Financial assets designated at FVTPL
Copper put option contracts	$ 331	$ 155
Available-for-sale financial assets
Marketable Securities	2,444	1,419
Investment in subscription receipts	2,400	10,333
Reclamation deposits	30,638	30,535
Financial assets designated at FVTPL	35,813	42,442
Level 1 [member]
Available-for-sale financial assets
Marketable Securities	2,444	1,419
Reclamation deposits	30,638	30,535
Financial assets designated at FVTPL	33,082	31,954
Level 2 [member]
Financial assets designated at FVTPL
Copper put option contracts	331	155
Available-for-sale financial assets
Financial assets designated at FVTPL	331	155
Level 3 [member]
Available-for-sale financial assets
Investment in subscription receipts	2,400	10,333
Financial assets designated at FVTPL	$ 2,400	$ 10,333

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Financial Risk Management - Summary of Capital Management (Detail) - CAD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Capital structure [abstract]
Cash	$ (80,231)	$ (89,030)	$ (68,521)
Current portion of long-term debt	11,270	16,157
Long-term debt	317,948	373,133
Net debt	248,987	300,260
Shareholders' equity	$ 367,080	$ 338,939	$ 370,340

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Related Parties - Summary of Ownership Interest of Subsidiaries (Detail)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Gibraltar Mines Ltd [member]
Disclosure of subsidiaries [line items]
Ownership interest of subsidiaries	100.00%	100.00%
Curis Resources Ltd [Member]
Disclosure of subsidiaries [line items]
Ownership interest of subsidiaries	100.00%	100.00%
Curis Holdings (Canada) Ltd [Member]
Disclosure of subsidiaries [line items]
Ownership interest of subsidiaries	100.00%	100.00%
Florence Copper Inc [member]
Disclosure of subsidiaries [line items]
Ownership interest of subsidiaries	100.00%	100.00%
Aley Corporation [member]
Disclosure of subsidiaries [line items]
Ownership interest of subsidiaries	100.00%	100.00%
672520 BC Ltd. [member]
Disclosure of subsidiaries [line items]
Ownership interest of subsidiaries	100.00%	100.00%

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Related Parties - Summary of Compensation for Key Management Personnel (Detail) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Related party transactions [abstract]
Salaries and benefits	$ 5,015	$ 5,050
Post-employment benefits	1,491	1,309
Share-based compensation	6,849	3,602
Key management personnel compensation	$ 13,355	$ 9,961

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Related Parties - Summary of Related Party Transactions (Detail) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of transactions between related parties [line items]
Transaction value	$ 1,399	$ 1,440
Due (to) from related parties		10,938
Hunter Dickinson Services Inc [member]
Disclosure of transactions between related parties [line items]
General and administrative expenses	1,301	1,400
Exploration and evaluation expenses	98	40
Transaction value	1,399	1,440
Due (to) from related parties	(47)	(61)
Gibraltar Joint Venture [member]
Disclosure of transactions between related parties [line items]
Management fee income	1,168	1,043
Reimbursable compensation expenses and third party costs	34	105
Transaction value	1,202	1,148
Due (to) from related parties	$ 210	$ 162

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Related Parties - Additional Information (Detail) - CAD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of transactions between related parties [line items]
Related party transactions	$ 1,399	$ 1,440
Related parties [member]
Disclosure of transactions between related parties [line items]
Administrative, legal, exploration and tax services	593	643
Reimbursements of office rent costs	526	517
Director fees	$ 280	$ 280