Note: For up-to-date Florence Copper site photos and construction updates, please visit Taseko’s website at tasekomines.com . *Non-GAAP performance measure. See end of news release. **Based on the Florence Copper Project NI 43 -101 technical report dated

Note: For up-to-date Florence Copper site photos and construction updates, please visit Taseko’s website at tasekomines.com .

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

**Based on the Florence Copper Project NI 43 -101 technical report dated February 28, 2017 (amended and restated December 4, 2017)

filed on SEDAR.

TASEKO REPORTS FIRST QUARTER 2018 FINANCIAL RESULTS

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.

May 2, 2018, Vancouver, BC – Taseko Mines Limited (TSX: TKO; NYSE American: TGB) (“Taseko” or the

"Company") reports the results for the three months ended March 31, 2018.

Russell Hallbauer, President and CEO of Taseko , commented, “As disclosed in our year-end report, production

in early 2018 continued to be impacted by waste stripping shortfalls from 2017 , where we effectively lost two

months of waste stripping. With our stripping schedule compromised, our new pushbac k was delayed and only

lower grade ore was available to process.”

The lower grades and result ant reduced copper and molybdenum production had a significant impact on our

financial performance in the first quarter. But even with the low grades, we still managed to generate $12 million

of Cash flow from operations and $1 4 million of earnings from minin g operations before depreciation and

amortization* in the quarter. Our adjusted net loss* of $11 million (or $0.05 per share) was negatively impacted

by increased use of stockpiled ore as well as provisional pricing adjustments,” stated Mr. Hallbauer.

Mr. Hallbauer continued, “Gibraltar head grades can fluctuate quite dramatically quarter-over-quarter as a result of

the mining sequence , consistent with any other large mining operation. However, over longer periods of time

average mined grades will revert t o the life of mine average grade. Gibraltar has 21 years of mine life remaining,

so this quarter’s metal production shortfall is a short -term issue. The Canadian dollar price of copper remains

roughly $4.00 per pound, the strongest it has been since 2011, and with copper grades increasing we see both metal

production and financial performance returning to more representative levels.”

“I am very pleased to report that our Florence Copper Project continues to advance on-time and on budget. We will

begin testing the injection and recovery well systems in the coming weeks and the SX/EW plant construction is

well underway and expected to be operational in the next six months. Importantly, the recent changes to US tax

legislation have had a significant impact on the project’s after tax net present value, raising it from US$680

million** to approximately US$760 million, based on current estimates. Florence Copper, with its very low capital

and operating costs, is one of the best near-term copper projects on the horizon and will have a material impact on

our Company,” added Mr. Hallbauer.

“In addition to Florence Copper, we have an exciting near-term catalyst with our Aley Niobium Project. After three

years of additional engineering work, we are in the final stage s of completing an updated technical report. This

report will demonstrate both lower capital costs and improved mine economics at a lower long-term niobium price.

We look forward to publicly releasing that report in the near future. Both of these projects point to a bright future

for the Company,” concluded Mr. Hallbauer.

First Quarter Highlights

 Earnings from mining operations before depletion and amortization* was $13.5 million;

 The increased use of stockpiled ore resulted in a non-cash inventory expense and additional depletion and

amortization which reduced earnings from mining operations by $5.2 million in the first quarter of 2018;

 Cash flow from operations was $11.6 million, a decrease from the same period in 2017 due to lower copper

production and sales volumes;

 In September 2017, the Company announced that it was moving forward with the construction of the

Production Test Facility (“PTF”) for the Florence Copper Project. The SX/EW plant and the associated

wellfield, comprised of 24 production, monitoring, observation and point of compliance wells, will be built

for approximately US$25 million. Wellfield drilling was completed in early April and construction of the

process plant progressed smoothly through the first quarter, with steel for the plant being erected at the end

of the quarter. The project is on -time and on budget with expenditures in the first quarter being

approximately $14.3 million or US$10.8 million. The facility is expected to be operational by the end of

the third quarter of 2018, with first copper cathode being produced in December;

 Copper and molybdenum production in the first quarter was 22.9 million pounds and 0.4 million pounds,

respectively, a decrease from previous quarters as a result of the anticipated lower grade mine feed

combined with the increased use of lower grade ore stockpiles, a consequence of the summer wildfires;

 Net loss was $ 18.5 million (or $0.0 8 per share) and Adjusted net loss* was $ 11.0 million (or $0.0 5 per

share);

 Site operating costs, net of by-product credits* were US$2.02 per pound produced and Total operating costs

(C1)* were US$2.33 per pound produced. Spending in the quarter remained at a similar level as previous

quarter but unit costs were impacted by the lower grades and production;

 Total sales (100% basis) for the quarter were 22.8 million pounds of copper and 0.4 million pounds of

molybdenum; and

 The Company’s cash balance at March 31, 2018 was $64 million, reduced from $80 million at the end of

2017 due in part to cash used for construction of the Florence Copper PTF.

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

HIGHLIGHTS

Financial Data Three months ended March 31,

(Cdn$ in thousands, except for per share amounts) 2018 2017 Change

Revenues 64,179 104,389 (40,210)

Earnings from mining operations before depletion and amortization* 13,544 53,427 (39,883)

Earnings (loss) from mining operations (1,236) 43,850 (45,086)

Net income (loss) (18,481) 16,479 (34,960)

Per share - basic (“EPS”) (0.08) 0.07 (0.15)

Adjusted net income (loss)*

(10,999) 15,254 (26,253)

Per share - basic (“adjusted EPS”)* (0.05) 0.07 (0.12)

EBITDA* 370 49,145 (48,775)

Adjusted EBITDA* 7,537 47,934 (40,397)

Cash flows provided by operations 11,556 79,765 (68,209)

Operating Data (Gibraltar - 100% basis) Three months ended March 31,

2018 2017 Change

Tons mined (millions) 26.7 21.8 4.9

Tons milled (millions) 7.5 7.3 0.2

Production (million pounds Cu) 22.9 41.3 (18.4)

Sales (million pounds Cu) 22.8 40.8 (18.0)

OPERATIONS ANALYSIS

First quarter results

First quarter copper production at Gibraltar was 22.9 million pounds, lower than recent quarters as a result of

reduced head grades and recoveries. Copper head grade at Gibraltar was 0.201% in the first quarter and the

Company expects the head grade for the remainder of 2018 to be in line with the average life of mine reserve grade

of 0.26%. Although the lower head grade in the first quarter was expe cted in the mine plan, head grade was also

affected by reduced waste stripping in the third quarter of 2017 due to the summer wildfires in the Cariboo region

and as a result more mill feed came from the stockpile than planned in the first quarter. The low head grades and

some oxidation from stockpile ore also impacted copper recoveries which averaged 76% for the period.

A total of 26.7 million tons were mined during the quarter at a strip ratio of 4.1 to 1. Waste stripping costs of $14.7

million (75% basis) were capitalized in the quarter related to the new pushback in the Granite pit. Approximately

2.5 million tons of ore were drawn from the ore stockpile in the first quarter.

Site operating cost per ton milled* was $8.68 in the first quarter of 2018, which is higher than the fourth quarter of

2017 primarily due to the decreased capitalization of stripping costs and a decrease in the tons milled during the

first quarter.

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

Site operating costs, net of by-product credits per pound produced* increased to US$2.02 in the first quarter of 2018

from US$1.69 in the fourth quarter of 2017. Total site spending in the first quarter remained at a similar level to the

previous quarter, but unit operating co sts increased due to the lower copper production and lower capitalized

stripping costs in the period. A total of 0.4 million pounds of molybdenum were sold resulting in by-product credits

per pound produced* of US$0.23 in the first quarter. The increase in molybdenum by-product credit was a result of

higher molybdenum prices.

Off-property costs per pound produced* were US$0.31 for the first quarter of 2018 compared to US$0.34 for the

2017 year. The lower Off-property costs per pound produced* was primarily a result of lower treatment and refining

costs charged on the Company’s copper concentrate sales.

Total operating costs (C1) per pound* increased to US$2.33, a 10% increase from the fourth quarter of 2017.

REVIEW OF OPERATIONS

Gibraltar Mine (75% Owned)

Operating data (100% basis) Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017

Tons mined (millions) 26.7 26.9 23.3 21.1 21.8

Tons milled (millions) 7.5 7.9 7.2 7.5 7.3

Strip ratio 4.1 4.9 4.1 2.8 2.4

Site operating cost per ton milled (CAD$)* $8.68 $7.68 $5.93 $7.67 $8.59

Copper concentrate

Grade (%) 0.201 0.209 0.284 0.309 0.328

Recovery (%) 75.7 77.5 86.1 85.2 85.9

Production (million pounds Cu) 22.9 25.5 35.1 39.4 41.3

Sales (million pounds Cu) 22.8 32.0 30.2 40.7 40.8

Inventory (million pounds Cu) 2.9 2.7 9.3 4.6 5.9

Molybdenum concentrate

Production (thousand pounds Mo) 443 537 445 789 866

Sales (thousand pounds Mo) 433 589 403 794 859

Per unit data (US$ per pound produced)*

Site operating costs* $2.25 $1.86 $0.97 $1.08 $1.15

By-product credits* (0.23) (0.17) (0.09) (0.11) (0.15)

Site operating costs, net of by-product

credits* $2.02 $1.69 $0.88 $0.97 $1.00

Off-property costs 0.31 0.42 0.30 0.34 0.33

Total operating costs (C1)* $2.33 $2.11 $1.18 $1.31 $1.33

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

GIBRALTAR OUTLOOK

Looking beyond the first quarter, with the transition into the new ore zone completed, copper grade will increase

and we expect the average copper grade for the remainder of 2018 to be in line with Gibraltar’s average life of mine

reserve grade of 0.26%.

Copper markets have shown continued strength with prices at US$3.07 per pound as of May 1, 2018. Molybdenum

prices have also stayed strong at US$12.40 per pound as of May 1, 2018.

The Company is pursuing an insurance claim related to the Cariboo region wildfires in July 2017. The amount of

the insurance claim has not been finalized and is currently estimated to be in the range of $4 to $10 million on a

75% basis.

REVIEW OF PROJECTS

Taseko’s strategy has been to grow the Company by leveraging cash flow from the Gibraltar Mine to assemble and

develop a pipeline of projects. We continue to believe this will generate the best, long-term returns for shareholders.

Our development projects are located in British Columbia and Arizona and represent a diverse range of metals,

including gold, copper, molybdenum and niobium. Our project focus is currently on the development of the Florence

Copper Project.

Florence Copper Project

In September 2017, the Company announced that it was moving forward with the construction of the Production

Test Facility (“PTF”) for the Florence Copper Project. The SX/EW Plant and the associated wellfield, comprised

of 24 production, monitoring, observa tion and point of compliance wells, will be built for approximately US$25

million. Wellfield drilling was completed in early April and construction of the process plant progressed smoothly

through the first quarter, with steel for the plant being erected at the end of the quarter.

The project is on time and on budget with expenditures in the first quarter being approximately $14.3 million or

US$10.8 million. The entire facility, plant and wells are expected to be fully operational by the end of the third

quarter of 2018.

Aley Niobium Project

In 2014, the Company filed an NI43 -101 technical report for the Aley Niobium Project. Further engineering and

metallurgical test work has been completed since then which is expected to result in improved project econo mics.

Environmental monitoring on the project continues and a number of product marketing initiatives are underway.

The Company will host a telephone conference call and live webcast on Thursday, May 3, 2018 at 11:00 a.m. Eastern Time

(8:00 a.m. Pacific) to discuss these results. After opening remarks by management, there will be a question and answer session

open to analysts and investors. The conference call may be accessed by dialing (877) 303-9079 in Canada and the United States,

or (970) 315 -0461 internationally. The conference call will be archived for later playback until May 10, 2018 and can be

accessed by dialing (855) 859-2056 in Canada and the United States, or (404) 537-3406 internationally and using the passcode

2584329.

For further information on Taseko, please see the Company's website at www.tasekomines.com or contact:

Brian Bergot, Vice President, 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

This document includes certain non-GAAP performance measures that do not have a standardized meaning prescribed by IFRS.

These measures may differ from those used by, and may not be comparable to such measures as reported by, other issuers. The

Company believes that these measures are commonly used by certain investors, in conjunction with conventional IFRS

measures, to enha nce their understanding of the Company’s performance. These measures have been derived from the

Company’s financial statements and applied on a consistent basis. The following tables below provide a reconciliation of these

non-GAAP measures to the most directly comparable IFRS measure.

Total operating costs and site operating costs, net of by-product credits

Total costs of sales include all costs absorbed into inventory, as well as transportation costs and insurance recoverable. Si te

operating costs is calculated by removing net changes in inventory, depletion and amortization, insurance recoverable, and

transportation costs from cost of sales. Site operating costs, net of by -product credits is calculated by removing by -product

credits from the site oper ating costs. Site operating costs, net of by -product credits per pound are calculated by dividing the

aggregate of the applicable costs by copper pounds produced. Total operating costs per pound is the sum of site operating costs,

net of by-product credits and off-property costs divided by the copper pounds produced. By-product credits are calculated based

on actual sales of molybdenum (net of treatment costs) and silver during the period divided by the total pounds of copper

produced during the period. These measures are calculated on a consistent basis for the periods presented.

Three months ended March 31,

(Cdn$ in thousands, unless otherwise indicated) – 75% basis 2018 2017

Cost of sales 65,415 60,539

Less:

Depletion and amortization (14,780) (9,577)

Insurance recoverable 4,000 -

Net change in inventories of finished goods 967 233

Net change in inventories of ore stockpiles (3,896) 1,172

Transportation costs (2,829) (5,217)

Site operating costs 48,877 47,150

Less by-product credits:

Molybdenum, net of treatment costs (5,009) (5,807)

Silver, excluding amortization of deferred revenue (92) (449)

Site operating costs, net of by-product credits 43,776 40,894

Total copper produced (thousand pounds) 17,145 30,943

Total costs per pound produced 2.55 1.32

Average exchange rate for the period (CAD/USD) 1.26 1.32

Site operating costs, net of by-product credits (US$ per pound) 2.02 1.00

Site operating costs, net of by-product credits 43,776 40,894

Add off-property costs:

Treatment and refining costs of copper concentrate 3,954 8,456

Transportation costs 2,829 5,217

Total operating costs 50,559 54,567

Total operating costs (C1) (US$ per pound) 2.33 1.33

NON-GAAP PERFORMANCE MEASURES - CONTINUED

Adjusted net income (loss)

Adjusted net income (loss) remove the effect of the following transactions from net income as reported under IFRS:

 Unrealized foreign currency gains/losses;

 Unrealized gain/loss on copper put options; and

 Gain/loss on copper call option.

Management believes these transactions do not reflect the underlying operating performance of our core mining business and

are not necessarily indicative of future operating results. Furthermore, unrealized gains/losses on derivative instruments,

changes in the fair value of financial instruments, and unrealized foreign currency gains/losses are not necessarily reflective of

the underlying operating results for the reporting periods presented.

Three months ended March 31,

($ in thousands, except per share amounts) 2018 2017

Net income (loss) (18,481) 16,479

Unrealized foreign exchange (gain) loss 8,332 (2,677)

Unrealized (gain) loss on copper put options (1,165) 52

Loss on copper call option - 1,414

Estimated tax effect of adjustments 315 (14)

Adjusted net income (loss) (10,999) 15,254

Adjusted EPS (0.05) 0.07

EBITDA and Adjusted EBITDA

EBITDA represents net income before interest, income taxes, and depreciation. EBITDA is presented because it is an important

supplemental measure of our performance and is frequently used by securities analysts, investors and other interested parties

in the evaluation of companies in the industry, many of which present EBITDA when reporting their results. Issuers of “high

yield” securities also present EBITDA because investors, analysts and rating agencies consider it useful in measuring the ability

of those issuers to meet debt service obligations. The Company believes EBITDA is an appropriate supplemental measure of

debt service capacity, because c ash expenditures on interest are, by definition, available to pay interest, and tax expense is

inversely correlated to interest expense because tax expense goes down as deductible interest expense goes up; depreciation i s

a non-cash charge.

Adjusted EBITDA is presented as a further supplemental measure of the Company’s performance and ability to service debt.

Adjusted EBITDA is prepared by adjusting EBITDA to eliminate the impact of a number of items that are not considered

indicative of ongoing operating performance.

Adjusted EBITDA is calculated by adding to EBITDA certain items of expense and deducting from EBITDA certain items of

income that are not likely to recur or are not indicative of the Company’s future operating performance consisting of:

 Unrealized foreign exchange gains/losses;

 Unrealized gain/loss on copper put options; and

 Gain/loss on copper call option.