Strategic Partnership To Develop Florence Copper Project

VANCOUVER - Taseko Mines Limited has signed agreements with Mitsui & Co. (U.S.A.) Inc. ("Mitsui") to form a strategic partnership to develop the Company's Florence Copper project, located in Arizona. Mitsui has committed to an initial investment of US$50 million, with proceeds to be used for construction of the commercial production facility.  The initial investment will be in the form of a copper stream agreement (the "Copper Stream") on 2.67% of the copper produced at Florence Copper.

In addition, Mitsui has the option to invest an additional US$50 million (for a total investment of US$100 million) for a 10% equity interest in Florence Copper (the "Equity Option"). The Equity Option is exercisable by Mitsui within a three-year period following completion of construction of the commercial production facility.  If Mitsui elects to exercise its Equity Option the Copper Stream will terminate.

As part of the arrangement, Taseko and Mitsui have entered into an offtake contract for 81% of the copper cathode produced at Florence during the initial years of production. The parties intend to use this period to develop premium sales channels for 'green copper' in the United States, leveraging Mitsui's existing US cathode trading business and the unique environmental benefits of Florence Copper, which is expected to be the lowest carbon- and energy-intensity copper producer in North America.

Stuart McDonald, President & CEO of Taseko, stated, "This agreement with Mitsui establishes a strategic partnership with a leading international company. Mitsui's investment will complement Taseko's financing requirements and construction timeline and advance our goal of ensuring the copper produced at Florence is recognized for its unique low-carbon profile that will advantage US manufacturers and consumers.  In the future, Taseko and Mitsui will collectively evaluate additional investments toward establishing Florence Copper as a zero-carbon copper producer (Scope 1 and 2)."

Sayu Ueno, President & CEO of Mitsui & Co. (U.S.A.), commented, "We are excited to partner with Taseko and its unique, low-carbon and low-impact Florence Copper project. When in production, Florence Copper will significantly expand our US cathode trading business, while providing an environmentally sound, domestically produced product that can be marketed on the basis of its low-carbon advantages.  We believe Florence Copper will be a preferred source of 'made-in-the-US' copper for many end users in North America."