Taseko Provides Update on GDP3 Project

VANCOUVER, July 17, 2012 /CNW/ - Taseko (TSX: TKO) (NYSE Amex: TGB) (the "Company") is pleased to provide an update on its GDP3 project that will increase Gibraltar concentrator capacity to 85,000 tons per day. Commissioning will begin in December of this year and ramp up to design capacity is expected to take six months.

On a 100% basis, total budget for the construction of the 30,000 ton per day concentrator is $235 million. Total funds spent or committed on that portion is approximately $190 million. Total budget for the project of $325 million includes $90 million for new mining equipment. New mining equipment has been ordered and these costs are fixed.

The SAG mill and ball mill components are on site and erection of the grinding mills is underway.  Flotation cells will be shipped to Gibraltar in July. Over the next few weeks, contractors on site will increase to 270 as construction shifts from civil and structural activities to major mechanical and electrical installations.

Additional mine equipment has already started arriving with the first two of ten additional haul trucks now operating and the remaining eight trucks arriving over the next 12 months. Components of a new Bucyrus 495R mining shovel are arriving at site and the shovel will be operational in November.

Russell Hallbauer, President & CEO commented, "Our GDP3 project team continues to effectively manage schedule and costs, and today, we are 80% through the project schedule and remain on time and on budget for a December startup. Key elements to the success of this project include an experienced owner's team combined with a high quality engineering, procurement and construction management group. The outcome has been cost control and budget adherence."

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 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.com and home jurisdiction filings that are available at www.sedar.com.

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

Brian Bergot, Director, Investor Relations - 778-373-4533 or toll free 1-877-441-4533