In February 2019, Taseko acquired Yellowhead Mining Inc. for $13 million, payable in Taseko common shares.

In January 2020, the Company filed a new technical report with a mineral reserve update, which announced improved project economics, as compared to the 2014 Feasibility Study, and a new 817 million tonne reserve estimate.

The project development plan presented in the 2020 Technical Report includes a 90,000 tonne per day concentrator, with average annual copper production of 200 million pounds for the first five years after start up, plus significant gold and silver by-products. Total pre-production capital costs are estimated to be C$1.3 billion and average operating costs of US$1.67 per pound of copper.

With a pre-tax net present value of approximately C$1.3 billion (using US$3.10 per pound copper, a foreign exchange rate of US$0.80:C$1.00, and an 8% discount rate), the Yellowhead Project represents a significant element of Taseko’s long-term growth strategy.

Next Steps

Taseko is focused on advancing the Yellowhead Project into the Environmental Assessment (EA) process beginning with the submission of an Initial Project Description. This work includes: ongoing engagement with local Indigenous communities; additional engineering studies; and, baseline data collection and modeling in anticipation of future EA and project permitting requirements.

Some differences from the original 2014 Feasibilty Study to the new Technical Report include:

• a 100 million tonne increase to reserves
• an increase in the copper cut-off grade to 0.17%
• throughput increase to 90,000 tonnes per day
• relocated primary crusher to a 90 meter lower elevation
• and an improved water management plan which reduces stored water by 90%

Yellowhead Project Highlights:

• Pre-tax net present value of C$1.3 billion at an 8% discount rate
• Pre-tax internal rate of return of 18% with a 4.2 year payback
• 817 million tonne Proven and Probable Mineral Reserve grading 0.29% copper equivalent
• Cost per tonne milled of C$9.97 (mining, milling & site G&A)
• 25-year mine life
• Total life of mine production in excess of 4.4 billion pounds of copper, 440,000 ounces of gold and 19 million ounces of silver
• Total pre-production capital cost of C$1.3 billion
• Long-term copper price of US$3.10 per pound and foreign exchange rate of US$0.80:C$1.00

The Technical Report, completed in 2020 by Taseko can be found below:

1.The Technical Report dated January 16, 2020 is available under Taseko’s profile on SEDAR (www.sedar.com).

Note: The content of webpage was reviewed by Richard Weymark P.Eng., Chief Engineer, and a Qualified Person under National Instrument 43-101.