Taseko Reduces Long-Term Debt & Extends Copper Hedge

June 30, 2009

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 contained in this news release.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

This document contains “forward-looking statements” that were based on Taseko’s expectations, estimates and projections as of the dates as of which those statements were made. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “outlook”, “anticipate”, “project”, “target”, “believe”, “estimate”, “expect”, “intend”, “should” and similar expressions.

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. These included but are not limited to:

  • uncertainties and costs related to the Company’s exploration and development activities, such as those associated with continuity of mineralization or determining whether mineral resources or reserves exist on a property;
  • uncertainties related to the accuracy of our estimates of mineral reserves, mineral resources, 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;
  • uncertainties related to our ability to complete the mill upgrade on time estimated and at the scheduled cost;
  • uncertainties related to the ability to obtain necessary licenses permits for development projects and project delays due to third party opposition;
  • uncertainties related to unexpected or ongoing 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;
  • changes in general economic conditions, the financial markets and in the demand and market price for copper, gold and other minerals and commodities, 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;
  • the effects of forward selling instruments to protect against fluctuations in copper prices and exchange rate movements and the risks of counterparty defaults, and mark to market risk;
  • the risk of inadequate insurance or inability to obtain insurance to cover mining risks;
  • the risk of loss of key employees; 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;
  • environmental issues and liabilities associated with mining including processing and stock piling ore; and
  • labour strikes, work stoppages, or other interruptions to, or difficulties in, the employment of labour in markets in which we operate mines, or environmental hazards, industrial accidents or other events or occurrences, including third party interference that interrupt the production of minerals in our mines.

For further information on Taseko, investors should review the Company’s annual Form 40-F filing with the United States Securities and Exchange Commission www.sec.gov and home jurisdiction filings that are available at www.sedar.com.

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