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 June 30, 2009
Taseko Reduces Long-Term Debt & Extends Copper Hedge
  June 30, 2009, Vancouver, BC -- Taseko Mines Limited (TSX: TKO; NYSE Amex: TGB) ("Taseko" or the "Company") is pleased to announce that it has purchased US$17.5 million of its convertible bond from two holders.

The five-year bonds which were issued in August 2006 have a conversion price of US$3.35 per share and carry a coupon of 7.125%. While the bonds do not mature until 2011, the bondholders hold a one time right to redeem the bond at 100.60% in August 2009. Taseko has taken this initiative in anticipation the bondholders would exercise this option.

Peter Mitchell, CFO of Taseko stated, "Based on our current cash position and forecasted cash flow, we feel the prepayment of these bonds, at a discount, was a prudent step for Taseko to take. In addition to reducing this liability, the transaction also decreases the dilutive effects of the bonds by 5.2 million shares. We will continue to evaluate options in anticipation of the put of the remaining US$12.5 million of convertible bonds and are confident that a plan will be finalized in advance of the August put option date."

Mr. Hallbauer, President & CEO of Taseko, continued, "Our forecasted cash flow is secured by the hedge facility that was established in May of this year. Under the hedge Taseko will receive a minimum price of US$1.88 per pound on 50% of copper production through December 2009, or 30 million pounds, Given the recent copper pricing strength, we have extended the term of the hedge through March 2010 with a new minimum price of US$2.00, at the same 50% level."

For further information contact:
Brian Bergot, Investor Relations
Direct: 778-373-4545 | 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.

Forward Looking Statements

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, 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 the Company believes 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 capital market conditions, commodities market prices, exploitation and exploration successes, lack of continuity of mineralization, completion of the mill upgrade on time estimated and at scheduled cost, 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 that actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's annual Form 40-F filing with the United States Securities and Exchange Commission or the Company's home jurisdiction filings at www.sedar.com.

 
 

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