TASEKO ISSUES ADDITIONAL CAPACITY INCREASE AT GIBRALTAR COPPER MINE

Taseko Mines Limited (TSX: TKO; NYSE Amex: TGB) ("Taseko" or the "Company") is pleased to report that its Board of Directors has approved plans to proceed with a further capacity increase at the Gibraltar Mine.

The Gibraltar Development Plan 3 (GDP3) will include the construction of a 30,000 ton per day concentrator to complement the existing 55,000 ton per day facility currently operating. The additional capacity will increase Gibraltar's annual copper production by approximately 60 million pounds to 180 million pounds, at life of mine average grade.

An integral part of this project is a new molybdenum recovery facility, increasing molybdenum metal production by over one million pounds per year.

Capital costs for GDP3 are expected to be $235 million for the concentrator and molybdenum plant and approximately $90 million for mining equipment (all figures reflect 100% project number, Taseko owns 75%).

Based on an assumption of continuing strong metal prices, GDP3 is anticipated to have an internal rate of return of approximately 30% with a three year payback.

Russell Hallbauer, President and CEO of Taseko, commented; "GDP3 is a good example of management's continued focus on unlocking value of our long-life assets. This project's capital cost intensity of $7,800 per ton of daily mill capacity and $10,800 per ton including mine equipment is one of the lowest of any project being developed globally, and is reflected in the rate of return and quick payback.

A key component of this undertaking is our ability to execute quickly and take advantage of the robust copper price environment. Over the past four months our management team has been working on advanced engineering. Construction will commence in early spring and commissioning of the new concentrator is anticipated in Q4 2012.

One of our key strategies has always been to maintain long life reserves, therefore, we have planned a ten-hole drill program to complement the increased throughput of the new concentrator. The drill program, scheduled to begin in the next few weeks, will facilitate the conversion of a significant portion of Gibraltar's 500 million tons of resources to reserves. Currently Gibraltar's reserves are 445 million tons."

Mr. Hallbauer added, "Management is very excited about GDP3 in terms of the value it creates for our shareholders and for the economic impact it will have on the Cariboo Region of British Columbia and Williams Lake."

Go-ahead for the project also requires co-operation of Taseko's 25% Gibraltar Joint Venture partner Cariboo Copper Corp. and the parties are now in discussions to this end.