Mar 25, 2015

This release should be read with the Company's Financial Statements and Management Discussion & Analysis ("MD&A"), available at www.tasekomines.com and filed on www.sedar.com. Except where otherwise noted, all currency amounts are stated in Canadian dollars. Taseko's 75% owned Gibraltar Mine is located north of the City of Williams Lake in south-central British Columbia. Production volumes stated in this release are on a 100% basis unless otherwise indicated.

March 25, 2015, Vancouver, BC - Taseko Mines Limited (TSX: TKO; NYSE MKT: TGB) ("Taseko" or the "Company") reports the results for the year ended December 31, 2014.

Fourth Quarter & 2014 Highlights

• Annual 2014 earnings from mining operations (before depletion and amortization)* were $52.3 million and cash flows from operations were $50.6 million. In the fourth quarter, loss from mining operations (before depletion and amortization)* was $0.9 million and cash flows from operations was an outflow of $8.6 million.
  
• Revenues for 2014 were $371.1 million from the sale of 107.6 million pounds of copper and 1.9 million pounds of molybdenum (Taseko's 75% share).
  
• Total production at Gibraltar (100%) for 2014 was 136.5 million pounds of copper and 2.3 million pounds of molybdenum. Copper production increased by 12% over 2013 despite the processed copper grade being 10% lower in 2014. Molybdenum production increased by 61% year-over-year.
  
• In the fourth quarter, Gibraltar produced 28.1 million pounds of copper and 445 thousand pounds of molybdenum.
  
• Total sales for the fourth quarter were 26.5 million pounds of copper (100% basis) and 481 thousand pounds of molybdenum.
  
• Expenditures on the New Prosperity and Aley development projects in 2014 totalled $6.3 million.
  
• Aley's project description was submitted in September to the British Columbia Environmental Assessment Office (BCEAO) as well as to the Canadian Environmental Assessment Agency. The environmental assessment review with the BCEAO has commenced.
  
• In November, Taseko completed the acquisition of Curis Resources Ltd., and is now the 100% owner of the Florence Copper Project.
  
• The company completed an impairment review as of December 31, 2014 and the carrying value of the Gibraltar Mine was written down to an after-tax NPV of $1.11 billion (100% basis). The write-down was recorded in the Gibraltar Joint Venture financial statements, but had no impact on Taseko's consolidated financial statements.
  
• In January 2015, the Company sold all outstanding copper put options for cash proceeds of $17.4 million. As a result of this sale, the Company currently does not have any put options in place. The hedging strategy, designed to mitigate short term declines in copper price, has not changed and the Company will seek opportunities to acquire additional copper put options in the future.
  
• In the fourth quarter, the weakening Canadian dollar offset most of the decline in copper price, an important factor for a Canadian-based producer.

Russell Hallbauer, President and CEO of Taseko, commented, "The Company generated $51 million of cash flow from operations in 2014, despite scheduled major component replacement on shovels resulting in higher mining costs and lower grades as a result of the pit wall stability issue in the third quarter. In the fourth quarter, expenditures were decreased from the previous quarter and cost per ton milled was reduced by 16% to C$10.13, however, financial performance was impacted by a drop in copper production as a result of lower grades."

Mr. Hallbauer continued, "Metal production and metal prices are key to our business and to be impacted by both at the same time is challenging. During the financial crisis of 2008/09 we successfully modified our operation to deal with copper below US$1.50 per pound. We are taking similar steps to deal with lower copper grades and copper price as we mine our way back to average life of mine head grades, a process we began six months ago. We have reduced our workforce and adjusted the mine plan and believe by the end of the second quarter, as the copper grade improves, we will have operating costs approaching US$2.00 per pound. With 75% of our costs denominated in Canadian dollars, the weakness of the Canadian dollar has helped the Company deal with the adversity we faced in the second half of 2014 and into 2015. The one-time costs of nearly $40 million over this period are now behind us and with the mine stabilized, we are well positioned for the second half of 2015 and beyond."

"Copper grade, until very recently, remained at a level similar to the fourth quarter 2014, averaging 0.22% in January and February. As of this week, we began accessing higher grade ore and expect an average grade of 0.24% in March. First quarter copper production is anticipated to be approximately 28-29 million pounds. For the balance of 2015, copper grades are forecasted to fluctuate in a range of 0.25%-0.28%. Based on forecasted grades, we expect to produce 130-140 million pounds of copper in 2015 (100% basis). Beyond this year, our engineering team is working on a long range mine plan which is focussed on optimizing cut-off grade with strip ratio. Early indications show that a reduced cut-off grade results in a significantly lower strip ratio, as well as a large increase to ore tons and recoverable pounds of copper. We expect this study to be completed by the summer," added Mr. Hallbauer.

"In September, the project description for our Aley Niobium Project was submitted to the BC Environmental Assessment Office (BCEAO) and to the Canadian Environmental Assessment Agency. The Federal Minister of Environment granted substitution of the environmental assessment to British Columbia, giving oversight and responsibility of the environmental assessment process to the BCEAO. Most work related to Aley in 2015 will be directly related to the environmental assessment process."

Mr. Hallbauer concluded, "The acquisition of Curis Resources Ltd., and its wholly owned Florence Copper Project, was completed in November 2014. Florence Copper, an in-situ copper deposit located in Arizona, provides the company with an advanced stage, near-term growth opportunity. The project is in the permitting phase for a pilot test facility, with only two outstanding permits remaining. In December 2014, a draft Underground Injection Control Permit was issued by the Environmental Protection Agency and is now in a public comment period. We expect both final permits to be issued in the middle of the year."

HIGHLIGHTS

Financial Data	Three months ended December 31,			Year ended December 31,
(Cdn$ in thousands, except for per share amounts)	2014	2013	Change	2014	2013	Change
Revenues	65,179	94,916	(29,737)	371,196	290,056	81,140
Earnings (loss) from mining operations before depletion and amortization*	(916)	24,969	(25,885)	52,265	77,000	(24,735)
Earnings (loss) from mining operations	(11,164)	15,285	(26,449)	5,102	42,933	(37,831)
Net earnings (loss)	(26,427)	(9,756)	(16,671)	(53,884)	(34,839)	(19,045)
Per share - basic ("EPS")	(0.13)	(0.05)	(0.08)	(0.27)	(0.18)	(0.09)
Adjusted net earnings (loss)*	(20,983)	834	(21,817)	(37,086)	(14,027)	(23,059)
Per share - basic ("adjusted EPS") *	(0.10)	(0.00)	(0.10)	(0.19)	(0.07)	(0.12)
EBITDA *	(13,397)	11,515	(24,912)	11,649	24,193	(12,544)
Adjusted EBITDA *	(8,355)	17,362	(25,717)	27,841	43,670	(15,829)
Cash flows provided by (used for) operations	(8,648)	32,791	(41,439)	50,570	67,587	(17,017)
Operating Data (Gibraltar - 100% basis)	Three months ended December 31,			Year ended December 31,
	2014	2013	Change	2014	2013	Change
Tons mined (millions)	25.1	21.5	3.6	113.8	89.4	24.4
Tons milled (millions)	7.6	7.6	0.0	30.2	24.5	5.7
Production (million pounds Cu)	28.1	33.5	(5.4)	136.5	121.4	15.1
Sales (million pounds Cu)	26.5	37.0	(10.5)	143.4	113.8	29.5

*Non-GAAP performance measure. See end of news release.

Annual Highlights

• Earnings from mining operations before depletion and amortization were $52.3 million;
  
• Copper production at Gibraltar was 136.5 million pounds (100% basis), a 12% increase over the 2013 financial year, primarily due to concentrator #2 operating for the full year offset by a reduction in overall head grades;
  
• Net operating costs of production were US$2.08 per pound produced, up from US$1.89 per pound in the prior year driven by lower copper head grades in the second half of the year, periodic shovel maintenance costs, and contract waste stripping expenditures;
  
• Gibraltar mine completed a $16.2 million major maintenance program on its shovels, and these programs typically occur every seven years;
  
• The Company generated cash flows from operations of $50.6 million, a 25% decrease from the 2013 financial year;
  
• The Company ended the 2014 financial year with a cash balance of $53 million;
  
• On September 15, 2014 the Company announced proven and probable reserves of 84 million tonnes grading 0.50% Nb2O5 for its 100%-owned Aley Niobium Project; and
  
• On November 20, 2014 the Company completed the acquisition of Curis Resources Ltd and its 100% owned Florence copper project, an in-situ copper recovery and SX/EW project located in central Arizona, USA.

Fourth Quarter Highlights

• Loss from mining operations before depletion and amortization were $0.9 million;
  
• Copper production at Gibraltar was 28.1 million pounds (100% basis) and was impacted by a significant reduction in head grade, which also impacted recoveries, as a result of the pit wall stability issues and the resultant change in mine sequence implemented in the third quarter of 2014;
  
• Site operating cost per ton milled decreased from $11.67 in the first half of 2014 to $10.13 in the fourth quarter of 2014 as a result of productivity increases and reduced expenditures; and
  
• Net operating costs of production increased to US$2.32 per pound produced from US$1.70 per pound produced in the fourth quarter of 2013, primarily driven by lower copper head grades and shovel maintenance costs.

REVIEW OF OPERATIONS

Gibraltar mine (75% Owned)

Operating results in the following table are presented on a 100% basis.

Operating Data (100% basis)	YE 2014	YE 2013	Q4 2014	Q3 2014	Q2 2014	Q1 2014	Q4 2013
Tons mined (millions)	113.8	89.4	25.1	32.5	30.2	25.9	21.5
Tons milled (millions)	30.2	24.5	7.6	7.8	7.7	7.0	7.6
Strip ratio	3.0	3.2	3.1	3.0	3.1	2.8	3.9
Site operating cost per ton milled (CAD)	$11.38	$10.35	$10.13	$12.10	$11.42	$11.91	$8.69
Copper concentrate
Grade (%)	0.265	0.293	0.222	0.267	0.285	0.290	0.270
Recovery (%)	83.6	84.4	81.3	83.3	85.3	84.6	81.7
Production (million pounds Cu)	134.4	121.4	27.7	34.5	37.6	34.5	33.5
Sales (million pounds Cu)	141.3	113.8	26.0	37.1	38.1	40.0	37.0
Inventory (million pounds Cu)	3.2	10.1	3.2	1.4	3.9	4.4	10.1
Copper cathode
Production (million pounds)	2.1	-	0.4	0.9	0.9	-	-
Sales (million pounds)	2.1	-	0.5	1.0	0.6	-	-
Molybdenum concentrate
Grade (%)	0.010	0.011	0.008	0.011	0.011	0.009	0.010
Recovery (%)	40.0	27.1	38.8	38.0	41.4	42.5	34.8
Production (thousand pounds Mo)	2,332	1,452	445	654	667	566	480
Sales (thousand pounds Mo)	2,509	1,263	481	708	731	589	499
Per unit data (US$ per pound) *
Operating costs of production*	$2.32	$2.03	$2.43	$2.60	$2.11	$2.19	$1.88
By-product credits *	(0.24)	(0.14)	(0.11)	(0.25)	(0.35)	(0.21)	(0.18)
Net operating costs of production *	$2.08	$1.89	$2.32	$2.35	$1.76	$1.98	$1.70
Off-property costs	0.42	0.38	0.45	0.40	0.36	0.50	0.44
Total operating costs *	$2.50	$2.27	$2.77	$2.75	$2.12	$2.48	$2.14

*Non-GAAP performance measure. See end of news release.

OPERATIONS ANALYSIS

Full-year results

2014 represented the first full year of operations for concentrator #2 at Gibraltar, which completed commissioning in March 2013. During 2014 Gibraltar milled 30.2 million tons of ore, a 23% increase over the tons milled in 2013. In 2014, Gibraltar mined 113.8 million tons of material which was lower than planned due to shovel availability issues, although still a 27% increase over tons mined in 2013. In the third quarter of 2014, mining operations were impacted by pit wall stability in the Granite Pit which resulted in the need to alter the short-term mine sequence, and defer the planned mining of higher grade ore in the second half of 2014. Average head grade in the first half of 2014 was 0.29% compared to 0.24% in the second half of the year. Lower head grades also negatively impacted copper recoveries in the second half of 2014.

Copper in concentrate production in 2014 was 134.4 million pounds, an increase of 11% over 2013 copper production of 121.4 million pounds. Molybdenum production during 2014 was 2.3 million pounds, an increase of 61% over 2013. The increase in molybdenum production is due to the new molybdenum plant operating for all of 2014.

Copper cathode production in 2014 was 2.1 million pounds; Gibraltar's SX/EW plant was idle in 2013.

In 2014, net operating cash costs per pound of copper produced was US$2.08, an 11% increase over the US$1.89 averaged during 2013. The increase in net operating cash costs in 2014 was primarily driven by lower head grade, decreased shovel availability due to maintenance and operating contract mining equipment in the second half of the year as a result of the pit wall stability issue in the Granite Pit requiring a short term alternative mine sequence. In order to execute the alternate mine sequence a contractor, with equipment already on site, was deployed to the lower section of Granite Pit in the third quarter along with the Company's own equipment. Gibraltar also completed a $16.2 million shovel fleet maintenance program in 2014 which amounted to US$0.13 per pound to unit costs.

Off-property costs, including transportation, treatment and refining charges, for 2014 were US$0.42 per pound produced, compared to US$0.38 per pound produced in 2013. Off property costs are driven by sales volumes, and therefore off-property costs per pound produced fluctuates based on differences between production and sales volumes.

The total operating costs, including off-property costs, for 2014 were US$2.50 per pound produced, compared to US$2.27 per pound in 2013.

Fourth quarter results

The Gibraltar concentrators operated at design capacity in the fourth quarter of 2014. Total mill throughput for the fourth quarter was 7.6 million tons, consistent with the same quarter in 2013. Total copper production for the quarter was 27.7 million pounds, a 17% decrease from the fourth quarter of 2013.

Fourth quarter copper production was impacted by a 17% decrease in copper head grade due to the alternate mine sequence that was implemented in the third quarter of 2014. Lower head grade ore negatively impacts copper recoveries.

A total of 25.1 million tons were mined in the fourth quarter, a 16% increase over the fourth quarter of 2013.

Molybdenum production for the fourth quarter of 2014 was 445,000 pounds, a 7% decrease over the fourth quarter of 2013. Molybdenum recoveries were 39% for the fourth quarter as a result of lower molybdenum head grade.

In the fourth quarter of 2014, net operating costs per pound of copper produced were US$2.32, a 37% increase over the US$1.70 per pound in the previous year's quarter. This increase in unit costs was primarily driven by lower head grade. Fourth quarter operating costs were also impacted by a planned $4.7 million shovel overhaul expenditure which contributed US$0.19 per pound to net operating costs per pound. By-product credits were lower than the previous year's quarter due to the decline in both the molybdenum price and production levels.

Off-property costs, including transportation, treatment and refining charges, for the fourth quarter of 2014 were US$0.45 per pound produced, compared to US$0.44 per pound produced in the fourth quarter of 2013. Off-property costs are driven by sales volumes, and therefore off property costs per pound produced fluctuates based on differences between production and sales volumes.

GIBRALTAR OUTLOOK

Management expects Gibraltar's total operating costs per pound to be lower in the future, for the following reasons:

• The mine is benefiting from recent reductions in the price of diesel which is a significant input cost. Diesel prices have fallen approximately 29% over the last year which represents an annualized cost savings of $10 million;
  
• During 2014, Gibraltar completed a major shovel maintenance program costing $16.2 million. These programs are typically completed every seven years;
  
• There are a number of cost control initiatives underway including a 12% workforce reduction which occurred in January 2015, mine plan modifications and initiatives with vendors to reduce costs of supplies and consumables;
  
• Copper grades in the first quarter of 2015 remained below the Granite Pit average grade, at a level similar to the fourth quarter 2014. Recently, the copper grade has increased to approximately 0.25% and for the balance of 2015 we expect the grade to fluctuate in a range between 0.25%-0.28%. Increases in copper grades will reduce total operating costs per pound; and
  
• The weakening Canadian dollar is having a positive impact on the mine's margins. The Canadian dollar has fallen approximately 20% since the beginning of 2014 and with approximately 80% of Gibraltar's operating costs denominated in Canadian dollars, the weakening dollar has a significant impact on total operating costs per pound which are reported in $USD.

The cumulative effect of these factors will have a significant impact on Gibraltar's operating costs going forward. Adjusting for non-recurring shovel maintenance costs and applying current diesel prices and foreign exchange rates, total operating costs would have been approximately US$2.00 per pound in the first half of 2014. The Company expects to achieve this unit cost in the future in conjunction with increased head grade and recovery levels.

REVIEW OF PROJECTS

Florence Copper project

The Company acquired a 100% interest in the Florence Copper project though the acquisition of Curis Resources Ltd. which was completed on November 20, 2014 (see section below "Acquisition of Curis Resources Ltd.") The Florence Copper Project is an in-situ copper recovery and solvent extraction/electrowinning project located near the town of Florence in central Arizona, USA. The project is currently in the final stages of permitting for the Phase 1 Production Test Facility ("PTF"). The PTF includes a 24-well in-situ recovery well field and solvent extraction/electrowinning plant that will produce copper cathode. The PTF is designed to demonstrate the science and safety of the in-situ process. Concurrently, the Company is advancing engineering, test work, environmental studies and permitting for commercial operations.

The Temporary Aquifer Protection Permit ("APP") for the PTF issued in July 2013 by the Arizona Department of Environmental Quality ("ADEQ") was subject to an appeal. As a result of the appeal an amendment will be submitted in March 2015 and issuance of the amended APP is now anticipated during the second quarter of 2015. In December the Company announced the receipt of a draft Underground Injection Control (UIC) permit from the U.S. Environmental Protection Agency (EPA). The UIC permit regulates the construction and operation of Florence Copper's injection wells at the site and is the final regulatory milestone required by the Company to construct and operate the PTF. The public hearing for the draft permit was held on January 22, 2015 and the comment period was extended to April, 2015. The Company expects the UIC permit to be issued by mid-2015.

Aley project

In October 2014 the Company filed a 43-101 compliant technical report for the Aley project showing proven and probable reserves of 84 million tonnes grading 0.50% Nb2O5 for its 100%-owned Aley Niobium Project.

Mineral Reserves*
0.30% Nb2O5 Cut-off

Category	Tonnes (millions)	Grade % Nb2O5
Proven	44.3	0.52
Probable	39.5	0.48
Total	83.8	0.50

Highlights of the project, as outlined in the NI43-101 Technical Report, include:

• Pre-tax net present value of approximately $860 million ($480 million post-tax) at an 8% discount rate
  
• Pre-tax internal rate of return of 17% (14% post-tax) with a 5.5 year payback
  
• Anticipated operating margin of US$21/kg of niobium (Nb)
  
• Average annual production of 9 million kilograms Nb in the form of Ferroniobium.
  
• 24 year mine life at a milling rate of 10,000 tonnes per day
  
• Life of mine strip ratio of 0.5:1
  
• Total pre-production capital cost of $870 million, including; $520 million for mine, concentrator and site infrastructure; $180 million for the converter, $100 million for offsite infrastructure including the transmission line, and $70 million for pre-stripping

On September 19, 2014 the BC Environmental Assessment Office (EAO) issued a Section 10 Order under the BC Environmental Assessment Act, initiating the BC environmental assessment process for the Aley Niobium Project.

On October 9, the Canadian Environmental Assessment Agency confirmed acceptance of the Project Description for the Aley Niobium Project.

On November 24, 2014 CEAA determined that a federal environmental assessment was required, issued a Notice of Commencement, and approved BC's request for Substitution under the Canadian Environmental Assessment Act (CEAA) 2012. The EAO will conduct the assessment and Aboriginal consultation on behalf of the Federal government. At the end of the environmental assessment review, EAO will issue a report to both the Provincial and Federal Ministers for a decision.

The EAO issued to Taseko a Section 11 Order under the Environmental Assessment Act on December 31, 2014. This Order describes the Scope of the Project subject to the environmental assessment, identifies the Aboriginal Groups requiring consultation, and directs Taseko to draft Application Information Requirements (AIR) for the environmental assessment application. Taseko is currently preparing the draft AIR.


New Prosperity project

On February 26, 2014 the Government of Canada announced its decision to not issue the authorizations necessary for the New Prosperity project to proceed. In the wake of this decision, Taseko initiated legal proceedings in the form of two separate judicial reviews which challenge the decision and the process by which the decision was reached. In August 2014, the Company applied to the Federal Court to convert both judicial reviews into a civil action for damages. The motion was heard on October 22, 2014. No decision has been rendered.

Taseko will host a conference call on Thursday, March 26, 2015 at 11:00 a.m. Eastern Time (8:00 a.m. Pacific) to discuss these results. The conference call may be accessed by dialing (877) 303-9079 in Canada and the United States, or (970) 315-0461 internationally. Alternatively, a live and archived webcast will also be available at tasekomines.com. The conference call will be archived for later playback until April 2, 2014 and can be accessed by dialing (855) 859-2056 in Canada and the United States, or (404) 537-3406 internationally and using the passcode 80839398.

For further information contact: Brian Bergot, Investor Relations - 778-373-4554, toll free 1-800-667-2114

Russell Hallbauer
President and CEO

No regulatory authority has approved or disapproved of the information in this news release.
NON-GAAP PERFORMANCE MEASURES



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