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6-K

Taseko Mines Ltd (TGB)

6-K 2025-08-07 For: 2025-06-30
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Added on April 12, 2026

UNITED STATESSECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2025

Commission File Number: 001-31965

Taseko Mines Limited (Translation of registrant's name into English)

12th Floor - 1040 West Georgia St., Vancouver, BC, V6E 4H1 (Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

[           ] Form 20-F   [ x ] Form 40-F

SUBMITTED HEREWITH

Exhibits

Exhibit Description
99.1 Interim Financial Statements for the period ended June 30, 2025
99.2 Management's Discussion and Analysis for the period ended June 30, 2025

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Taseko Mines Limited
(Registrant)
Date: August 6, 2025 By: /s/ Bryce Hamming
Bryce Hamming
Title: Chief Financial Officer 
Taseko Mines Limited: Exhibit 99.1 - Filed by newsfilecorp.com

Condensed Consolidated Interim Financial Statements

For the three and six months ended June 30, 2025 and 2024

(Unaudited)

TASEKO MINES LIMITED<br>Condensed Consolidated Interim Balance Sheets<br>(Cdn$ in thousands)<br>(Unaudited)
June 30, December 31,
--- --- --- --- --- ---
Note 2025 2024
ASSETS
Current assets
Cash 121,988 172,732
Accounts receivable 8 6,291 5,643
Inventories 9 95,664 138,890
Prepaids 8,468 8,179
Other financial assets 10 2,915 27,795
235,326 353,239
Property, plant and equipment 11 1,954,246 1,770,102
Inventories 9 52,774 39,586
Other financial assets 10 959 959
Deferred tax assets 13,829 25,226
Goodwill 5,625 5,931
2,262,759 2,195,043
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities 128,809 129,927
Current portion of long-term debt 13 37,234 32,853
Current portion of deferred revenue 16 15,393 13,666
Current portion of Cariboo consideration payable 14 30,331 16,447
Interest payable 13 9,366 9,890
Current income tax payable 2,809 4,053
Current portion of Florence copper stream and Florence royalty obligation 5c, 15 6,777 -
230,719 206,836
Long-term debt 13 794,121 764,355
Cariboo consideration payable 14 105,866 129,421
Deferred revenue 16 81,366 77,327
Florence royalty obligation 15 85,158 84,383
Florence copper stream 5c 83,095 67,813
Provision for environmental rehabilitation 165,211 169,570
Deferred tax liabilities 141,610 183,964
Other financial liabilities 15,678 8,152
1,702,824 1,691,821
EQUITY
Share capital 17 562,446 529,413
Contributed surplus 60,153 57,786
Non-controlling interest 18 1 -
Accumulated other comprehensive income ("AOCI") 21,357 52,845
Deficit (84,022 ) (136,822 )
559,935 503,222
2,262,759 2,195,043
Commitments and contingencies 21

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

TASEKO MINES LIMITED<br>Condensed Consolidated Interim Statements of Comprehensive (Loss) Income<br>(Cdn$ in thousands, except share and per share amounts)<br>(Unaudited)
Three months ended June 30, Six months ended June 30,
--- --- --- --- --- --- --- --- --- ---
Note 2025 2024 2025 2024
Revenues 3 116,082 137,730 255,231 284,677
Cost of sales
Production costs 4 (95,382 ) (94,916 ) (195,740 ) (202,420 )
Depletion and amortization 4 (25,210 ) (13,721 ) (47,635 ) (28,745 )
Other operating income (costs) 4 4,008 (10,435 ) 4,008 (10,435 )
Insurance recovery 4 - 26,290 - 26,290
Earnings (loss) from mining operations (502 ) 44,948 15,864 69,367
General and administrative (4,116 ) (3,517 ) (7,440 ) (6,646 )
Share-based compensation expense 19c (4,740 ) (2,512 ) (9,744 ) (7,952 )
Project evaluation expense (322 ) (542 ) (1,491 ) (759 )
Changes in derivatives and other fair value instruments 5a (11,055 ) (11,688 ) (36,144 ) (16,909 )
Other income (107 ) (399 ) (51 ) (261 )
(Loss) income before financing costs and income taxes (20,842 ) 26,290 (39,006 ) 36,840
Finance income 124 911 1,454 1,997
Finance expense 6 (10,228 ) (12,880 ) (22,435 ) (25,692 )
Accretion expense 6 (13,715 ) (13,037 ) (20,385 ) (20,074 )
Foreign exchange gain (loss) 39,090 (5,913 ) 38,261 (17,930 )
Call premium on settlement of debt - (9,571 ) - (9,571 )
Gain on Cariboo acquisition 12 - - - 47,426
Gain on acquisition of control of Gibraltar 12 - - - 14,982
(Loss) income before income taxes (5,571 ) (14,200 ) (42,111 ) 27,978
Income tax recovery (expense) 7 27,439 3,247 35,419 (20,035 )
Net (loss) income 21,868 (10,953 ) (6,692 ) 7,943
Other comprehensive (loss) income:
Items that will remain permanently in other comprehensive (loss) income:
Gain (loss) on financial assets 435 (354 ) 686 (289 )
Items that may in the future be reclassified to profit (loss):
Foreign currency translation reserve (32,731 ) 3,984 (32,174 ) 14,030
Total other comprehensive (loss) income (32,296 ) 3,630 (31,488 ) 13,741
Total comprehensive (loss) income (10,428 ) (7,323 ) (38,180 ) 21,684
(Loss) earnings per share attributable to owners of the Company
Basic 20 0.07 (0.04 ) (0.02 ) 0.03
Diluted 20 0.07 (0.04 ) (0.02 ) 0.03
Weighted average shares outstanding (thousands)
Basic 20 315,992 291,832 313,224 291,148
Diluted 20 318,897 291,832 313,224 293,440

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

TASEKO MINES LIMITED<br>Condensed Consolidated Interim Statements of Cash Flows<br>(Cdn$ in thousands)<br>(Unaudited)
Three months ended June 30, Six months ended June 30,
--- --- --- --- --- --- --- --- --- ---
Note 2025 2024 2025 2024
Operating activities
Net (loss) income for the period 21,868 (10,953 ) (6,692 ) 7,943
Adjustments for:
Depletion and amortization 11 25,455 13,721 47,880 28,745
Income tax (recovery) expense 7 (27,439 ) (3,247 ) (35,419 ) 20,035
Finance expenses 6 10,228 12,880 22,435 25,692
Finance income (124 ) (911 ) (1,454 ) (1,997 )
Accretion expense 6 13,715 13,037 20,385 20,074
Call premium on settlement of debt - 9,571 - 9,571
Recognition of deferred revenue 16b (752 ) (1,249 ) (2,361 ) (2,839 )
Changes in derivatives and other fair value instruments 5a 11,055 11,688 36,144 16,909
Unrealized foreign exchange (gain) loss (40,335 ) 5,408 (38,261 ) 19,096
Gain on Cariboo acquisition 12 - - - (47,426 )
Unrealized loss on acquisition of control of Gibraltar 12 - 7,824 - 6,196
Share-based compensation expense 19c 4,820 2,585 8,989 8,252
Other operating activities (2,662 ) (105 ) (5,458 ) (147 )
Net change in working capital:
Insurance receivable - (26,314 ) - (26,314 )
Net change in working capital - other 22 10,125 776 35,658 10,495
Cash provided by operating activities 25,954 34,711 81,846 94,285
Investing activities
Gibraltar capitalized stripping costs 11 (30,765 ) (10,732 ) (68,847 ) (24,689 )
Gibraltar capital expenditures 11 (16,115 ) (4,974 ) (29,716 ) (12,857 )
Florence Copper development costs 11 (79,068 ) (56,051 ) (159,049 ) (86,813 )
Other project development costs 11 (1,506 ) (620 ) (2,100 ) (1,024 )
Acquisition of Cariboo, net of cash acquired 14 - (4,549 ) - (9,665 )
Release of restricted cash - - - 12,500
Net outflows related to copper price options 5b - (4,785 ) - (6,770 )
Interest income and other 124 910 1,454 1,832
Cash used for investing activities (127,330 ) (80,801 ) (258,258 ) (127,486 )
Financing activities
Interest paid (32,633 ) (7,457 ) (35,613 ) (31,066 )
Net proceeds from issuance of senior secured notes - 670,419 - 670,419
Repayment of senior secured notes and call premium - (556,491 ) - (556,491 )
Advances from (repayment of) revolving credit facility 13b 76,113 (26,494 ) 76,113 (26,494 )
Net proceeds from sale of non-controlling interest 18 71,778 - 71,778 -
Proceeds from Florence financings 5c, 13e 4,553 13,668 18,934 93,349
Repayment of Florence equipment financings 13e (1,641 ) (1,532 ) (3,239 ) (2,823 )
Repayment of Gibraltar equipment financings 13d (8,015 ) (7,518 ) (16,645 ) (13,561 )
Payment of Cariboo consideration payable 14 (6,645 ) - (16,645 ) -
Net proceeds from share issuances 17 - - 29,630 -
Proceeds from exercise of share options 1,273 2,416 1,962 2,178
Cash provided by financing activities 104,783 87,011 126,275 135,511
Effect of exchange rate changes on cash (2,197 ) 45 (607 ) (160 )
(Decrease) increase in cash 1,210 40,966 (50,744 ) 102,150
Cash, beginning of period 120,778 157,661 172,732 96,477
Cash, end of period 121,988 198,627 121,988 198,627
Supplementary cash flow information 22

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

TASEKO MINES LIMITED<br>Condensed Consolidated Interim Statements of Changes in Equity<br>(Cdn$ in thousands)<br>(Unaudited)
Number of Share Contributed Non-controlling
--- --- --- --- --- --- --- --- --- --- --- ---
shares ('000) capital surplus interest¹ AOCI Deficit Total
Balance as at January 1, 2024 290,000 486,136 54,833 - 16,557 (123,378 ) 434,148
Share-based compensation - - 5,845 - - - 5,845
Exercise of options 2,615 5,524 (1,969 ) - - - 3,555
Share issuance, net 12,061 37,753 - - - - 37,753
Settlement of performance share units - - (923 ) - - - (923 )
Total comprehensive income (loss) for the year - - - - 36,288 (13,444 ) 22,844
Balance as at December 31, 2024 304,676 529,413 57,786 - 52,845 (136,822 ) 503,222
Balance as at January 1, 2025 304,676 529,413 57,786 - 52,845 (136,822 ) 503,222
Share-based compensation - - 4,645 - - - 4,645
Exercise of options 1,234 3,042 (1,097 ) - - - 1,945
Share issuance, net 10,566 29,991 - - - - 29,991
Settlement of performance share units - - (1,181 ) - - - (1,181 )
Sale of non-controlling interest (Note 18) - - - 1 - 68,777 68,778
Tax effect on sale of non-controlling interest (Note 18) - - - - - (9,285 ) (9,285 )
Total comprehensive loss for the period - - - - (31,488 ) (6,692 ) (38,180 )
Balance as at June 30, 2025 316,476 562,446 60,153 1 21,357 (84,022 ) 559,935

¹ For three and six months ended June 30, 2025, net (loss) income and total comprehensive (loss) income were wholly attributable to owners of the Company

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

TASEKO MINES LIMITED<br>Notes to the Condensed Consolidated Interim Financial Statements<br>(Cdn$ in thousands)<br>(Unaudited)

1. REPORTING ENTITY

Taseko Mines Limited (the "Company" or "Taseko") is a corporation governed by the British Columbia Business Corporations Act. The unaudited condensed consolidated interim financial statements of the Company as at and for the three and six months ended June 30, 2025, comprise the Company and its controlled subsidiaries. The Company is principally engaged in the production and sale of metal concentrates, as well as related activities, including mine permitting and development, within the Province of British Columbia, Canada, and the State of Arizona, USA.

As a result of the Company's acquisition of Cariboo Copper Corporation ("Cariboo"), the financial results of the Company after March 25, 2024 reflect its 100% interest in Gibraltar mine ("Gibraltar") (Note 14). The financial results for the period up to and including March 25, 2024, reflect the Company's 87.5% interest in Gibraltar (Note 14).

2. MATERIAL ACCOUNTING POLICIES

2.1 Statement of compliance

These unaudited condensed consolidated interim financial statements have been prepared in compliance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IASB") ("IFRS Accounting Standards") as applicable to the preparation of interim financial statements under IAS 34, Interim Financial Reporting.

These unaudited condensed consolidated interim financial statements were authorized for issuance by the Company's Audit and Risk Committee on August 6, 2025.

2.2 Use of judgements and estimates

The preparation of these unaudited condensed consolidated interim financial statements in conformity with IFRS Accounting Standards requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

The significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those applied to the audited annual consolidated financial statements as at and for the year ended December 31, 2024, except as noted below.

Partial Disposal of the New Prosperity Project

On June 5, 2025, the Company entered into a transaction with the Tsilhqot'in Nation and the Province of British Columbia (the "Province"), which involved the disposition of 22.5% of the common shares in 1280860 B.C. Ltd. ("1280860"), the entity which owns the New Prosperity Project as further described in Note 18.

TASEKO MINES LIMITED<br>Notes to the Condensed Consolidated Interim Financial Statements<br>(Cdn$ in thousands)<br>(Unaudited)

The Company concluded it retains control of 1280860 under IFRS 10, Consolidated Financial Statements, as it retains the ability to direct the business activities that most significantly affect economic returns, including over strategy, budgeting, financing, performing technical and economic studies, and key personnel decisions as they relate to the advancement of the New Prosperity Project. The Tsilhqot'in Nation's consent rights are viewed as protective in nature, consistent with those held by a governing regulatory body.

2.3 New accounting standards issued but not yet effective

In 2024, the IASB issued IFRS 18, Presentation and Disclosure in Financial Statements. IFRS 18 introduces a new structure for the statement of profit or loss, requiring entities to present operating, investing, and financing categories, and enhances disclosures to improve comparability and transparency of financial performance. The standard is effective for annual reporting periods beginning on or after January 1, 2027, and is applied retrospectively. The Company is currently evaluating the impact of the amendments on its condensed interim consolidated financial statements.

The IASB also issued Amendments to the Classification and Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7. These amendments updated classification and measurement requirements in IFRS 9, Financial Instruments and related disclosure requirements in IFRS 7, Financial Instruments: Disclosures. The IASB clarified the recognition and derecognition date of certain financial assets and liabilities, and amended the requirements related to settling financial liabilities using an electronic payment system. It also clarified how to assess the contractual cash flow characteristics of financial assets in determining whether they meet the solely payments of principal and interest criterion, including financial assets that have environmental, social and corporate governance (ESG)-linked features and other similar contingent features. The IASB added disclosure requirements for financial instruments with contingent features that do not relate directly to basic lending risks and costs, and amended disclosures relating to equity instruments designated at fair value through other comprehensive income. The amendments are effective for periods beginning on or after January 1, 2026, and are applied retrospectively. The Company is currently evaluating the impact of the amendments on its condensed interim consolidated financial statements.

In addition, the IASB issued the Annual Improvements to IFRS Standards 2021-2023 Cycle, which includes amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10, and IAS 7, aimed at improving consistency and application. The amendments are effective for periods beginning on or after January 1, 2026, and are applied retrospectively. The Company is currently evaluating their impact on its condensed interim consolidated financial statements.

TASEKO MINES LIMITED<br>Notes to the Condensed Consolidated Interim Financial Statements<br>(Cdn$ in thousands)<br>(Unaudited)

3. REVENUES

Three months ended<br>June 30, Six months ended<br>June 30,
2025 2024 2025 2024
Revenue from contracts with customers:
Copper contained in concentrate 110,539 128,639 239,322 268,191
Molybdenum concentrate 4,546 5,672 14,313 11,196
Silver (Note 16b) 755 815 2,496 2,542
Gold 351 - 740 -
116,191 135,126 256,871 281,929
Copper price adjustments on settlement (377 ) 1,205 (915 ) 823
Molybdenum price adjustments on settlement 268 1,399 (725 ) 1,925
Revenues 116,082 137,730 255,231 284,677

4. COST OF SALES AND OTHER OPERATING (INCOME) COSTS

Three months ended<br>June 30, Six months ended<br>June 30,
2025 2024 2025 2024
Site operating costs 86,067 79,804 154,984 159,482
Transportation costs 5,720 6,408 11,704 16,561
Change in inventories:
Changes in finished goods (2,123 ) 10,462 587 30,854
Changes in sulphide ore stockpiles 17,975 1,161 46,238 1,178
Changes in oxide ore stockpiles (12,257 ) (2,919 ) (17,773 ) (5,655 )
Production costs 95,382 94,916 195,740 202,420
Depletion and amortization 25,210 13,721 47,635 28,745
Cost of sales 120,592 108,637 243,375 231,165
Other operating (income) costs:
Crusher relocation costs - 7,911 - 7,911
Site care and maintenance - 2,524 - 2,524
Research and development tax credits (4,008 ) - (4,008 ) -
Other operating (income) costs (4,008 ) 10,435 (4,008 ) 10,435
Insurance recovery - (26,290 ) - (26,290 )

Site operating costs include personnel costs, operating waste stripping costs, repair and maintenance costs, consumables, operating supplies and external services.

During the three and six months ended June 30, 2025, the Company recognized $5.6 million of non-refundable scientific research and experimental development tax credits related to various activities at the Gibraltar mine up to 2023, as there is reasonable assurance that the Company has met program conditions and that the credits will be used in future taxation periods.

TASEKO MINES LIMITED<br>Notes to the Condensed Consolidated Interim Financial Statements<br>(Cdn$ in thousands)<br>(Unaudited)

Consistent with the treatment of the corresponding qualifying expenses, $4.0 million was recorded as other operating income and $1.6 million as a reduction to property, plant and equipment.

During the three months ended June 30, 2024, the Company recognized costs of $7,911 in the statement of comprehensive (loss) income related to the in-pit primary crusher relocation project.

In June 2024, operations at the Gibraltar mine were suspended for 18 days due to a strike by the unionized workforce which started on June 1, 2024. The resulting care and maintenance costs of $2,524 were expensed as incurred and do not form part of the cost of inventory and cost of sales. Operations at Gibraltar resumed on June 19, 2024, after the ratification of a new agreement by union members.

During the three months ended June 30, 2024, the Company also recognized an insurance recovery of $26,290 in the statement of comprehensive (loss) income, related to the business interruption portion of an insurance claim for a component replacement in Concentrator #2, as receipt became virtually certain following confirmation from insurers.

5. DERIVATIVES AND OTHER FAIR VALUE INSTRUMENTS

a) Derivatives and other Financial Instruments measured at fair value

The following is a summary of the fair value gains or losses incurred during the three and six months ended June 30, 2025 and 2024:

Three months ended<br>June 30, Six months ended<br>June 30,
2025 2024 2025 2024
Realized loss on settled copper options and collars 1,285 1,556 2,571 3,192
Unrealized loss on outstanding copper options and collars 1,084 8,874 22,662 9,737
Realized loss on fuel call options 281 99 548 165
Unrealized gain fuel call options (217 ) (64 ) (229 ) -
Net loss on copper price and fuel contracts (b) 2,433 10,465 25,552 13,094
Fair value adjustment on Cariboo contingent performance payments (Note 14) 5,136 - 1,826 -
Fair value adjustment on Florence copper stream derivative (c) 3,486 1,223 8,766 3,815
Changes in derivatives and other fair value instruments 11,055 11,688 36,144 16,909

b) Copper Collars and Fuel Contracts

No new derivative transactions were entered into by the Company during the six months ended June 30, 2025.

The following is a summary of the derivative transactions entered into by the Company during the six months ended June 30, 2024:

Date of<br>Purchase Contract Quantity Strike price Period Cost
Mar 2024 Copper collar 42 million lbs US$3.75/ US$5.00 per lb Jul 2024 - Dec 2024 1,985
Apr 2024 Copper collar 54 million lbs US$4.00 / US$5.00 per lb Jan 2025 - Jun 2025 2,563
Apr 2024 Copper collar 54 million lbs US$4.00 / $US5.40 per lb Jul 2025 - Dec 2025 2,222
Feb 2024 Fuel call options 12.5 million ltrs US$0.79 per ltr Feb 2024 - Jun 2024 165
TASEKO MINES LIMITED<br>Notes to the Condensed Consolidated Interim Financial Statements<br>(Cdn$ in thousands)<br>(Unaudited)
---

Details of the outstanding options contracts as at June 30, 2025 are summarized in the following table:

Quantity Strike price Cost Fair value
Copper collars 54 million lbs US4.00 per lb 2,222 1,334
US5.40 per lb

All values are in US Dollars.

c) Florence Copper Stream

On December 19, 2022, the Company signed agreements with Mitsui & Co. (U.S.A.) Inc. ("Mitsui") to form a strategic partnership to develop the Florence Copper project. Mitsui committed to an initial advance of US$50 million, with proceeds to be received in installments of US$10 million, to be used for the construction of the commercial production facility. The initial advance was in the form of a copper stream agreement (the "Copper Stream"), which obligates the Company to deliver 2.67% of the copper produced at Florence Copper, with Mitsui to make an ongoing payment equal to 25% of the monthly average market price of copper on the day immediately preceding delivery under the contract. The Company received the final US$10 million instalment of the US$50 million Copper Stream on January 27, 2025.

Mitsui has the option to invest an additional US$50 million for a 10% equity interest in Florence Copper (the "Equity Conversion Option"). The Equity Conversion Option is exercisable by Mitsui at any time up to three years following completion of construction of the commercial production facility. If Mitsui elects to exercise its Equity Conversion Option, the Copper Stream will terminate. If the Equity Conversion Option is not exercised, the Company will have the right to buy back 100% of the Copper Stream through a cash payment to Mitsui that would provide an internal rate of return of 10% on the stream deposits advanced (the "Buy Back Option"); otherwise, the Copper Stream will terminate once 40 million pounds of copper has been delivered under the agreement.

Taseko and Mitsui have also entered into an offtake contract for 81% of the copper cathode produced at Florence during the initial years of production. The contract will cease and be replaced with a marketing agency agreement if the Equity Conversion Option is exercised by Mitsui. Mitsui's offtake entitlement would also reduce to 30% if the Equity Conversion Option is not exercised, until such time as the Copper Stream deposit is reduced to nil.

The Mitsui agreement is a financial liability measured at fair value each reporting period which includes the Copper Stream, Equity Conversion Option and Buy Back Option. The Company has determined that the fair value of the Copper Stream and Buy Back Option to be $86,444 as at June 30, 2025, based on estimates of future production, future copper prices, and other relevant factors. The Equity Conversion Option has been estimated to have a nominal fair value at June 30, 2025, and since inception of the agreement.

Florence Copper Stream as at December 31, 2024 67,813
Advance from Florence Copper Stream (US$10 million) 14,381
Fair value adjustment 8,766
Foreign exchange translation (4,516 )
Florence Copper Stream as at June 30, 2025 86,444
Less current portion 3,349
Long-term portion of Florence Copper Stream as at June 30, 2025 83,095
TASEKO MINES LIMITED<br>Notes to the Condensed Consolidated Interim Financial Statements<br>(Cdn$ in thousands)<br>(Unaudited)
---

6. FINANCE AND ACCRETION EXPENSE

Three months ended<br>June 30, Six months ended<br>June 30
2025 2024 2025 2024
Interest expense 17,145 18,232 34,491 28,406
Amortization of deferred financing charges 620 619 1,237 1,359
Loss on settlement of long-term debt - - - 4,646
Less: interest expense capitalized (Note 11) (7,537 ) (5,971 ) (13,293 ) (8,719 )
Finance expense 10,228 12,880 22,435 25,692
Accretion on deferred revenue (Note 16b) 2,320 1,809 5,031 3,177
Accretion on Provision for Environmental Rehabilitation 710 697 1,434 1,395
Accretion on Cariboo consideration payable (Note 14) 4,484 8,399 5,148 9,954
Accretion on Florence royalty obligation (Note 15) 6,201 2,132 8,772 5,548
Accretion expense 13,715 13,037 20,385 20,074

For the three and six months ended June 30, 2025, interest expense includes $497 (2024 - $345) and $925 (2024 - $711) from lease liabilities.

7. INCOME TAX

**** Three months ended<br>June 30, Six months ended<br>June 30,
**** 2025 2024 2025 2024
Current income tax (recovery) expense (1,243 ) 633 (1,243 ) 1,438
Deferred income tax (recovery) expense (26,196 ) (3,880 ) (34,176 ) 18,597
Income tax (recovery) expense (27,439 ) (3,247 ) (35,419 ) 20,035

The $26.2 million deferred income tax recovery recognized for the three months ending June 30, 2025 includes $9.3 million related to the recognition of previously unrecognized net capital losses that were utilized for offsetting the capital gain recognized on the sale of a minority interest in the New Prosperity Project (Note 18).

TASEKO MINES LIMITED<br>Notes to the Condensed Consolidated Interim Financial Statements<br>(Cdn$ in thousands)<br>(Unaudited)

8. ACCOUNTS RECEIVABLE

June 30, December 31,
2025 2024
Trade and settlement receivables 4,116 5,397
Other receivables 2,175 246
Accounts receivable 6,291 5,643

9. INVENTORIES

June 30, December 31,
2025 2024
Current:
Copper concentrate 11,634 14,932
Molybdenum concentrate 621 642
Copper cathode 2,733 -
Sulphide ore stockpiles 17,799 76,696
Oxide ore on leach pads 7,274 -
Materials and supplies 55,603 46,620
**** 95,664 138,890
Long-term:
Oxide ore on leach pads 22,488 -
Oxide ore stockpiles 30,286 39,586
52,774 39,586

10. OTHER FINANCIAL ASSETS

June 30, December 31,
2025 2024
Current: **** ****
Marketable securities 1,581 895
Copper price options (Note 5b) 1,334 26,568
Fuel call options (Note 5b) - 332
**** 2,915 27,795
Long-term:
Investment in private companies 500 500
Reclamation deposits 459 459
**** 959 959

The Company holds strategic investments in publicly traded and privately owned mineral exploration and development companies, including marketable securities. Marketable securities and investments in privately owned companies are accounted for at fair value through other comprehensive income.

TASEKO MINES LIMITED<br>Notes to the Condensed Consolidated Interim Financial Statements<br>(Cdn$ in thousands)<br>(Unaudited)

11. PROPERTY, PLANT AND EQUIPMENT

Cost Propertyacquisitioncosts Mineralproperties Plant and equipment Constructionin progress Total
As at December 31, 2024 121,187 928,965 1,082,749 425,751 2,558,652
Additions - 107,092 30,496 127,906 265,494
Changes in rehabilitation cost asset - 60 - - 60
Disposals - - (26,044 ) - (26,044 )
Foreign exchange translation (3,099 ) (9,932 ) (80 ) (28,831 ) (41,942 )
As at June 30, 2025 118,088 1,026,185 1,087,121 524,826 2,756,220
Accumulated depreciation
As at December 31, 2024 - 364,466 424,084 - 788,550
Depletion and amortization - 8,391 29,519 - 37,910
Disposals - - (24,486 ) - (24,486 )
As at June 30, 2025 - 372,857 429,117 - 801,974
Net book value
As at December 31, 2024 121,187 564,499 658,665 425,751 1,770,102
As at June 30, 2025 118,088 653,328 658,004 524,826 1,954,246

The following schedule shows the continuity of property, plant and equipment net book value by asset group for the six months ended June 30, 2025:

Net book value GibraltarMine FlorenceCopper Yellowhead Aley Other Total
As at December 31, 2024 925,911 800,935 25,762 17,173 321 1,770,102
Net additions 109,405 152,186 1,859 486 - 263,936
Changes in rehabilitation cost asset 60 - - - - 60
Depletion and amortization (37,459 ) (207 ) (66 ) - (178 ) (37,910 )
Foreign exchange translation - (41,942 ) - - - (41,942 )
As at June 30, 2025 997,917 910,972 27,555 17,659 143 1,954,246

For the three and six months ended June 30, 2025, the Company capitalized development costs of $58,794 and $142,021 (2024 - $77,581 and $132,528), respectively, and capitalized borrowing costs of $7,537 and $13,293 (2024 - $5,971 and $8,719) (Note 6), respectively, for the Florence Copper project. The capitalization rate for borrowing costs applied by the Company is 8.25%, commensurate with the coupon rate on the 2030 Notes.

During the three and six months ended June 30, 2025, non-cash additions to Gibraltar capitalized stripping costs include $4,798 and $10,734 (2024 - $1,840 and $4,349), respectively, of depreciation on mining assets. Depreciation related to the right of use assets for the three and six months ended June 30, 2025 was $3,677 and $6,476 (2024 - $2,854 and $5,688), respectively.

TASEKO MINES LIMITED<br>Notes to the Condensed Consolidated Interim Financial Statements<br>(Cdn$ in thousands)<br>(Unaudited)

12. ACQUISITION OF CARIBOO COPPER CORPORATION

a) Acquisition of Cariboo from Dowa and Furukawa

On March 25, 2024 (the "Acquisition Date"), the Company completed the acquisition of 50% of Cariboo Copper Corporation ("Cariboo") from Dowa Metals & Mining Co. Ltd. ("Dowa") and Furukawa Co. Ltd. ("Furukawa"), resulting in an additional 12.5% effective interest in Gibraltar, bringing Taseko's total effective interest to 100%. Gibraltar is operated through a joint venture in which Gibraltar Mines Ltd, holds a 75% interest and Cariboo holds the remaining 25% interest.

The acquisition price payable to Dowa and Furukawa ranges from a minimum of $117 million to a maximum of $142 million, with payments spread over a 10-year period (the "Purchase Consideration") from the Acquisition Date. The amount and timing of these payments depend on LME copper prices and Gibraltar's cashflow. The fair value of the Purchase Consideration on the Acquisition Date was determined to be $71,116 (Note 14).

The purchase consideration was allocated to the assets acquired and liabilities assumed, including the additional 12.5% effective interest in the Gibraltar joint venture, based on their estimated fair values at the Acquisition Date. The fair value of the net assets acquired was recorded at $118,542. To account for the difference between the fair value of net assets acquired of $118,542 and the total fair value of consideration payable of $71,116, the Company recognized a bargain purchase gain on the statement of comprehensive (loss) income of $47,426 during the six months ended June 30, 2024.

b) Deemed Disposition at Fair Value of 87.5% Gibraltar Interest on Acquisition of Control

Prior to March 25, 2024, the Company had joint control over the joint arrangement and proportionately consolidated its 87.5% effective interest in the Gibraltar joint venture's assets, liabilities, income and expenses. On March 25, 2024, the Company acquired the remaining 12.5% interest in the Gibraltar joint venture that it did not already own through its purchase of a 50% interest in Cariboo. As a result, the Company obtained control of the Gibraltar joint venture. This acquisition of control, required the Company to reassess its previously held 87.5% interest in Gibraltar and remeasure this interest at fair value as of the March 25, 2024 acquisition date, with any gains or losses recognized immediately in the statement of comprehensive (loss) income. Additionally, the Company was required to measure all identifiable assets acquired and liabilities assumed at their fair values on this deemed acquisition date.

The fair value of copper concentrate inventory as at the deemed acquisition date was determined to be $37,717 compared to the book value of $22,735, which resulted in a gain of $14,982 recognized in the statement of comprehensive (loss) income for the six months ended June 30, 2024.

TASEKO MINES LIMITED<br>Notes to the Condensed Consolidated Interim Financial Statements<br>(Cdn$ in thousands)<br>(Unaudited)

13. DEBT

Seniorsecurednotes (a) Revolvingcreditfacility (b) Gibraltarequipmentloans (d) Florenceequipmentloans (e) Leaseliabilities(f) Total
As at December 31, 2024 715,646 - 48,998 29,158 13,296 807,098
Additions and advances - 76,113 - 4,553 14,067 94,733
Principal payments - - (8,950 ) (3,239 ) (8,049 ) (20,238 )
Amortization of deferred financing charges 784 - 65 - - 849
Unrealized foreign exchange movements (37,390 ) (1,077 ) (1,517 ) - (246 ) (40,230 )
Foreign currency translation - - - (1,444 ) (47 ) (1,491 )
Total debt at June 30, 2025 679,040 75,036 38,596 29,028 19,021 840,721
Less current portion and interest payable: (9,366 ) - (18,624 ) (7,321 ) (11,289 ) (46,600 )
Long-term debt at June 30, 2025 669,674 75,036 19,972 21,707 7,732 794,121
Total debt at December 31, 2024 715,646 - 48,998 29,158 13,296 807,098
Less current portion and interest payable: (9,890 ) - (18,579 ) (6,636 ) (7,638 ) (42,743 )
Long-term debt at December 31, 2024 705,756 - 30,419 22,522 5,658 764,355

a) Senior Secured Notes

On April 23, 2024, the Company completed an offering of US$500 million aggregate principal amount of senior secured notes (the "2030 Notes"). The 2030 Notes mature on May 1, 2030, and bear interest at an annual rate of 8.25%, payable semi-annually on May 1 and November 1.

The 2030 Notes are secured by liens on the shares of Taseko's wholly owned subsidiary, Gibraltar Mines Ltd., and the subsidiary's rights under the joint venture agreement related to Gibraltar, as well as the shares of Curis Holdings (Canada) Ltd. ("Curis"), Florence Holdings Inc. ("Florence Holdings"), and Cariboo. The 2030 Notes are guaranteed by each of Taseko's existing and future restricted subsidiaries.  The liens on the collateral securing the notes and the guarantees will be first liens, but ranked below the liens of the revolving credit facility. The Company is subject to certain restrictions on asset sales, issuance of preferred stock, dividends, and other restricted payments. There are no covenants regarding the Company's financial performance.

The 2030 Notes contain customary prepayment options, some of which represent embedded derivatives required to be recognized at fair value, with changes in the fair value recognized in the Company's statement of comprehensive (loss) income. The Company has estimated the prepayment options to have a nominal fair value.

TASEKO MINES LIMITED<br>Notes to the Condensed Consolidated Interim Financial Statements<br>(Cdn$ in thousands)<br>(Unaudited)

b) Revolving Credit Facility

The Company has a secured US$110 million revolving credit facility (the "Facility"). The Facility is secured by first liens against Taseko's rights under the Gibraltar joint venture, as well as the shares of Gibraltar Mines Ltd., Curis, Florence Holdings, and Cariboo. The maturity date of the Facility is November 2, 2027. Amounts outstanding under the Facility bear interest at SOFR plus a margin of 4%, and undrawn amounts are subject to a standby fee of 1%. As at June 30, 2025, US$55 million was advanced under the Facility (2024 - nil).

The Facility has customary covenants for a revolving credit facility. Financial covenants include a requirement for the Company to maintain a senior debt to EBITDA ratio, an interest coverage ratio, a minimum tangible net worth, and a minimum liquidity amount, as defined under the Facility. The Company was in compliance with these covenants as at June 30, 2025.

c) Letter of Credit Facilities

The Gibraltar joint venture has in place a $7 million credit facility for the purpose of providing letters of credit ("LC") to key suppliers of Gibraltar to assist with ongoing trade finance and working capital needs. Any LCs issued under the facility are guaranteed by Export Development Canada ("EDC") under its Account Performance Security Guarantee program. The facility is renewable annually, is unsecured, and contains no financial covenants. As at June 30, 2025, $3.75 million is outstanding under this LC facility (2024 - $3.75 million).

The Company also has a US$4 million credit facility for the sole purpose of issuing LCs to certain key contractors in conjunction with the development of Florence Copper. Any LCs issued under this facility will also be guaranteed by EDC. The facility is renewable annually, is unsecured, and contains no financial covenants. As at June 30, 2025, no LCs were issued and outstanding under this LC facility (2024 - nil).

d) Gibraltar Equipment Loans

The equipment loans as at June 30, 2025, are secured by most of the existing mobile mining equipment at the Gibraltar mine. These loans commenced between December 2022 and December 2024, have monthly repayment terms of 48 months, and carry interest rates ranging from 6.3% to 9.4%.

e) Florence Equipment Facility

In 2023, the Company secured a US$25 million Florence project loan from Bank of America, secured against specific equipment, with advances of US$15 million and US$10 million received in October 2023 and December 2023, respectively. On May 7, 2025, the Company extended borrowings under the facility with Bank of America for proceeds of US$3.25 million.

The facility contains no financial covenants and has monthly repayments over a term of 60 months. The equipment facility bears interest rates ranging from 7.2% to 9.3%.

f) Lease Liabilities

Lease liabilities have monthly repayment terms ranging from 12 to 72 months.

TASEKO MINES LIMITED<br>Notes to the Condensed Consolidated Interim Financial Statements<br>(Cdn$ in thousands)<br>(Unaudited)

14. CARIBOO CONSIDERATION PAYABLE TO PRIOR OWNERS OF CARIBOO

In 2023 and 2024, the Company acquired Cariboo, which increased its effective ownership in Gibraltar from 75% to 100%. On March 15, 2023, the Company acquired Sojitz Corporation's ("Sojitz") 50% interest in Cariboo, resulting in a 12.5% increase in its effective interest in Gibraltar from 75% to 87.5%. On March 25, 2024, the Company acquired the remaining 50% of Cariboo from Dowa and Furukawa (Note 12). The liabilities arising from these transactions are collectively referred to as the "Cariboo consideration payable".

Sojitz Transaction

The acquisition price consisted of a minimum amount of $60 million payable over a five-year period ("Sojitz minimum payments") and potential contingent performance payments depending on Gibraltar copper revenues and copper prices over the next five years ("Sojitz Contingent Consideration"). There is no interest payable on the minimum amounts. An initial $10 million was paid to Sojitz upon closing and the remaining minimum amount is payable in $10 million annual instalments over five years thereafter.

The contingent performance payments are payable annually for five years only if the average LME copper price exceeds US$3.50 per pound in a year. The payments are calculated by multiplying Gibraltar copper revenues by a price factor, which is based on a sliding scale ranging from 0.38% at US$3.50 per pound copper to a maximum of 2.13% at US$5.00 per pound copper or above. Total contingent payments cannot exceed $57 million over the five-year period, limiting the acquisition cost to a maximum of $117 million.

The third annual instalment payment of $10 million was paid in February 2025 and the contingent payment of $6,645 for the 2024 calendar year was paid on April 1, 2025. The Sojitz minimum payments are a financial liability measured at amortized cost.  The Sojitz Contingent Consideration is a financial liability measured at fair value through profit and loss.

Dowa and Furukawa Transaction

Amounts owing by Cariboo to Dowa and Furukawa are by way of non-interest bearing secured and unsecured promissory notes of $45.5 million and $71.5 million, respectively, totaling $117 million (collectively, the "Cariboo Notes" or "Dowa and Furukawa minimum payments") which are guaranteed by Taseko. The secured Cariboo Notes are collateralized by Cariboo's 25% Gibraltar joint venture interest.  An initial payment of $5 million was made to Dowa and Furukawa against the Cariboo Notes on closing with the remaining principal payable in annual instalments over a 10-year period commencing in April 2026, with the secured Cariboo Notes repayable first.  At average LME copper prices below US$4.00 per pound, the annual repayments of the Cariboo Notes will be $5 million. This repayment amount will increase proportionally, reaching a maximum of $15.25 million when average LME copper prices are US$5.00 per pound or higher.

If average LME copper prices exceed US$5.00 per pound or higher consistently over the repayment period, up to $25 million in contingent consideration is payable by Taseko to Dowa and Furukawa (the "Dowa and Furukawa Contingent Performance Payments"). The Dowa and Furukawa Contingent Performance Payments is a financial liability measured at fair value through profit and loss. The Company estimates this liability to have nil value as at June 30, 2025 and December 31, 2024.

Annual principal payments cannot exceed 6.25% of Gibraltar's annual cashflow between 2025 and 2028, and 10% between 2029 and 2033. Any remaining balance of the Cariboo Notes will be paid as a final balloon payment in April 2034.  The fair value of the Cariboo Notes on the Acquisition Date was determined to be $71,116. The Dowa and Furukawa minimum payments are a financial liability measured at amortized cost, with estimated annual instalments considering the repayment mechanism described above.

TASEKO MINES LIMITED<br>Notes to the Condensed Consolidated Interim Financial Statements<br>(Cdn$ in thousands)<br>(Unaudited)

As at June 30, 2025, the carrying value of the Cariboo consideration payable is as follows:

Sojitz Dowa andFurukawa Total
Balance as at December 31, 2024 72,209 73,659 145,868
Payments (16,645 ) - (16,645 )
Fair value adjustment on contingent performance payments (Note 5a) 1,826 - 1,826
Accretion on minimum consideration payable (Note 6) 991 4,157 5,148
Balance as at June 30, 2025 58,381 77,816 136,197

As at June 30, 2025, the current and long-term portions of the Cariboo consideration payable is as follows:

Sojitz Dowa andFurukawa Total
Minimum consideration payable 26,837 77,816 104,653
Contingent performance payments payable 31,544 - 31,544
Total Cariboo consideration payable 58,381 77,816 136,197
Less current portion:
Minimum consideration payable 9,569 9,493 19,062
Contingent performance payments payable 11,269 - 11,269
Long-term portion of Cariboo consideration payable 37,543 68,323 105,866

15. FLORENCE ROYALTY OBLIGATION

On February 2, 2024, Florence Holdings, an indirect wholly-owned subsidiary of Taseko, received US$50 million from Taurus Mining Royalty Fund L.P. ("Taurus"), pursuant to agreements entered into with Taurus for the sale of a perpetual gross revenue royalty interest in certain real property, mining and other rights held by Florence ("Florence Royalty Obligation"). The effective royalty rate is 2.05% of the gross revenue from the sale of all copper from Florence Copper for the life of mine. Proceeds from the royalty transaction were contributed to Florence Copper to fund the construction and development of the commercial production facility.

For accounting purposes, the purchase agreement is a financial liability at amortized cost. For the six months ended June 30, 2025, the Company recorded accretion on the royalty obligation of $8,772 (2024 - $5,548) in the statement of comprehensive (loss) income. The current portion of the royalty obligation is an estimate based on anticipated gross revenue the next twelve months.

Balance as at December 31, 2024 84,383
Accretion (Note 6) 8,772
Foreign exchange translation (4,569 )
Balance as at June 30, 2025 88,586
Less current portion 3,428
Long-term portion of Florence Royalty Obligation as at June 30, 2025 85,158
TASEKO MINES LIMITED<br>Notes to the Condensed Consolidated Interim Financial Statements<br>(Cdn$ in thousands)<br>(Unaudited)
---

16. DEFERRED REVENUE

June 30, December 31,
2025 2024
Current:
Customer advance payments (a) 7,407 4,311
Osisko silver stream agreement (b) 7,986 9,355
Current portion of deferred revenue 15,393 13,666
Long-term portion of Osisko silver stream agreement (b) 81,366 77,327
Total deferred revenue 96,759 90,993

a) Customer Advance Payments

As at June 30, 2025, the Company had received advance payments from a customer on 1.3 million pounds of copper concentrate inventory (December 31, 2024 - 0.9 million pounds).

b) Osisko Silver Stream Agreement

In 2017 and as subsequently amended, the Company has entered into silver stream purchase and sale agreements with Osisko Gold Royalties Ltd. ("Osisko"), whereby the Company received upfront cash deposits payments totaling US$49.3 million for the sale of an equivalent amount of its 87.5% share of Gibraltar payable silver production until 6.3 million ounces of silver have been delivered to Osisko. After that threshold has been met, 35% of an equivalent amount of Taseko's share of all future payable silver production from Gibraltar will be delivered to Osisko.

On December 20, 2024, the Company amended the silver stream with Osisko and received US$12.7 million for the sale of an equivalent amount of the remaining 12.5% share of Gibraltar payable silver production until 6.8 million ounces of silver have been delivered to Osisko in aggregate. After that threshold has been met, 35% of an equivalent amount of Taseko's share of all future payable silver production from Gibraltar will be delivered to Osisko.

The current portion of deferred revenue is an estimate based on deliveries anticipated over the next twelve months.

Balance as at December 31, 2024 86,682
Accretion on deferred revenue (Note 6) 5,031
Recognition of deferred revenue (Note 3) (2,361 )
Balance as at June 30, 2025 89,352
TASEKO MINES LIMITED<br>Notes to the Condensed Consolidated Interim Financial Statements<br>(Cdn$ in thousands)<br>(Unaudited)
---

17. EQUITY

At-the-market Equity Offering Program

On May 3, 2023, the Company announced that it entered into an equity distribution agreement providing for an at-the-market equity offering program ("ATM") for potential share issuances at an aggregate offering price of up to US$50 million. The fully subscribed ATM was completed during the three months ended March 31, 2025.

As at June 30, 2025, the Company had issued a total of 22,627,320 shares under the ATM program in exchange for total gross proceeds of US$49,976, equivalent to $69,881 - which included a total of 10,566,354 shares for gross proceeds of US$21,519, equivalent to $30,994 during the three months ended March 31, 2025.

18. PARTIAL DISPOSAL OF NEW PROSPERITY PROJECT

On June 5, 2025, the Company entered into an agreement (the "Teẑtan Biny Agreement") with the Tsilhqot'in Nation and the Province, pursuant to which it transferred its New Prosperity mineral tenures and related assets to a wholly owned subsidiary, 1280860, and immediately thereafter transferred 22.5% of the common shares of 1280860 to the TN Interest Trust (the "Trust"), an irrevocable trust established for the benefit of the Tsilhqot'in Nation. In exchange, the Company received $75 million in cash, funded by a contribution from the Province to the Trust. Concurrent with the execution of the Teẑtan Biny Agreement, the Company also agreed to contribute $6 million to the Tsilhqot'in Nation to support community and land use planning initiatives, comprised of a $3 million payment at closing and three annual instalments of $1 million.

Under the Teẑtan Biny Agreement, the Company has agreed to not act as a proponent for development of the New Prosperity Project. If the Tsilhqot'in Nation consents to any ground-disturbing activity, the Trust will distribute the 22.5% equity interest directly to the Tsilhqot'in Nation.

Following the transaction, the Company retained a 77.5% shareholder interest in 1280860 and concluded that it continues to control the entity owning New Prosperity, as it continues to direct the activities that most significantly affect the entity's economic returns. As control was considered to be retained, the partial disposal was accounted for as an equity transaction under IFRS 10, Consolidated Financial Statements, with no gain or loss recognized in the statement of comprehensive (loss) income. The difference between the net consideration for the 22.5% shareholding interest of 1280860, less attributable transaction costs, and the carrying amount of that interest was recognized directly in equity. The non-controlling interest recognized as a result of the transaction was nominal, based on its proportionate share of 1280860's net assets.

The New Prosperity Transaction resulted in a net realized gain of $68.8 million recognized directly in equity. There was no net (loss) income or comprehensive (loss) income that was attributable to the non-controlling interest following the closing of the transaction.

TASEKO MINES LIMITED<br>Notes to the Condensed Consolidated Interim Financial Statements<br>(Cdn$ in thousands)<br>(Unaudited)

19. SHARE-BASED COMPENSATION

a) Share Options

Options(thousands) Average price
Outstanding as at January 1, 2025 9,033 2.01
Granted 2,813 3.06
Exercised (1,234 ) 1.09
Forfeited (115 ) 1.94
Outstanding as at June 30, 2025 10,497 2.33
Exercisable as at June 30, 2025 7,718 2.21

During the six months ended June 30, 2025, the Company granted 2,813,300 (2024 - 2,956,000) share options to directors, executives and employees, exercisable at an average exercise price of $3.06 per common share (2024 - $1.86 per common share), vesting over two years and exercisable within five years of grant date. The total fair value of options granted was $4,867 (2024 - $3,104) based on a weighted average grant-date fair value of $1.73 (2024 - $1.05) per option.

The fair value of options was measured at the grant date using the Black-Scholes formula. Expected volatility is estimated by considering historic average share price volatility. The inputs used in the Black-Scholes formula are as follows:

Expected term (years) 5.0
Forfeiture rate 0%
Volatility 64%
Dividend yield 0%
Risk-free interest rate 3.2%
Weighted-average fair value per option $ 1.73

b) Deferred, Performance and Restricted Share Units

PSUs(thousands) DSUs(thousands) RSUs(thousands)
Outstanding as at January 1, 2024 1,955 2,301 370
Granted 880 304 500
Cancelled - - (80 )
Settled (530 ) - -
Outstanding as at January 1, 2025 2,305 2,605 790
Granted 742 265 489
Cancelled - - (150 )
Settled (595 ) - -
Outstanding as at June 30, 2025 2,452 2,870 1,129
TASEKO MINES LIMITED<br>Notes to the Condensed Consolidated Interim Financial Statements<br>(Cdn$ in thousands)<br>(Unaudited)
---

During the six months ended June 30, 2025, 264,900 DSUs were issued to directors (2024 - 303,750), 741,600 PSUs to senior executives (2024 - 880,000) and 489,000 RSUs to non-executives (2024 - 500,000).

The fair value of DSUs, PSUs and RSUs granted was $5,593 (2024 - $3,067), with a weighted average fair value at the grant date of $3.06 per unit for the DSUs (2024 - $1.78 per unit), $4.43 per unit for the PSUs (2024 - $2.87 per unit), and $3.06 per unit for the RSUs (2024 - $1.78). Deferred share units and restricted share units are cash settled share-based compensation. Performance share units are accounted for as equity settled share-based compensation.

c) Share-based Compensation Summary

Share-based compensation expense is comprised as follows:

Three months ended<br>June 30, Six months ended <br>June 30,
2025 2024 2025 2024
Share options expense 703 565 3,078 2,103
Performance share units expense 778 679 1,556 1,357
Restricted share units expense 231 143 481 294
Change in fair value of deferred share units 3,099 1,198 5,046 4,498
Less: share options expensed in production costs (71 ) (73 ) (417 ) (300 )
Share-based compensation expense 4,740 2,512 9,744 7,952

20. (LOSS) EARNINGS PER SHARE

(Loss) earnings per share, calculated on a basic and diluted basis, is as follows:

Three months ended<br>June 30, Six months ended<br>June 30,
**** 2025 2024 2025 2024
Net (loss) income attributable to owners of the Company - basic and diluted 21,868 (10,953 ) (6,692 ) 7,943
(in thousands of common shares)
Weighted-average number of common shares 315,992 291,832 313,224 291,148
Effect of dilutive securities:
Stock options 2,905 - - 2,292
Weighted-average number of diluted common shares 318,897 291,832 313,224 293,440
(Loss) Earnings per common share:
Basic (loss) earnings per share 0.07 (0.04 ) (0.02 ) 0.03
Diluted (loss) earnings per share 0.07 (0.04 ) (0.02 ) 0.03
TASEKO MINES LIMITED<br>Notes to the Condensed Consolidated Interim Financial Statements<br>(Cdn$ in thousands)<br>(Unaudited)
---

21. COMMITMENTS AND CONTINGENCIES

a) Commitments

The Company is a party to certain contracts relating to service and supply agreements. Future minimum payments under these agreements as at June 30, 2025, are presented in the following table:

Remainder of 2025 8,141
2026 11,491
2027 1,671
2028 -
2029 and thereafter -
Total commitments 21,303

As at June 30, 2025, the Company had commitments to incur capital expenditures of $10,750 (December 31, 2024 - $47,863) for Florence Copper and $8,425 (December 31, 2024 - $6,600) for Gibraltar.

As at June 30, 2025, the Company has provided surety bonds to the regulatory authorities for Gibraltar's reclamation obligations totaling $124.2 million (December 31, 2024 - $108.5 million). For Florence Copper, the Company has provided surety bonds totaling US$36.1 million (December 31, 2024 - US$36.1 million) to the federal and state regulators as reclamation security. Security for reclamation obligations is returned once the site is reclaimed to a satisfactory level and there are no ongoing monitoring and maintenance requirements.

On July 9, 2025, the Company increased the surety bond related to Gibraltar's reclamation obligations by $1 million, in accordance with the requirements of its M-40 Mining Permit with the Province of British Columbia.

b) Contingencies

There are no known contingencies that would impact the financial position or performance of the Company as at June 30, 2025.

TASEKO MINES LIMITED<br>Notes to the Condensed Consolidated Interim Financial Statements<br>(Cdn$ in thousands)<br>(Unaudited)

22. SUPPLEMENTARY CASH FLOW INFORMATION

**** Three months ended<br>June 30, Six months ended<br>June 30,
**** 2025 2024 2025 2024
Change in non-cash working capital items **** **** **** ****
Accounts receivable 754 6,901 (646 ) 8,693
Inventories (3,347 ) (3,985 ) 20,068 4,690
Prepaids (3,405 ) (3,766 ) (1,022 ) (1,499 )
Accounts payable and accrued liabilities^1^ 15,638 105 14,163 (1,841 )
Customer advance payments 485 1,521 3,095 452
10,125 776 35,658 10,495
Non-cash investing and financing activities ****
Cariboo acquisition, net assets (Note 12) - - - 61,232
Right-of-use assets 8,215 2,263 14,067 2,850

^1^ Excludes accounts payable and accrued liability changes on capital expenditures.

23. FAIR VALUE MEASUREMENTS

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value, based on the reliability of the inputs used to estimate the fair values.

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The fair value of the senior secured notes, a Level 1 measurement, is determined based upon publicly available information. The fair values of the senior secured notes are $714,463 (December 31, 2024 - $735,038) and the face value is $682,150 (December 31, 2024 - $719,250) as at June 30, 2025. The Company has certain financial assets and liabilities that are measured at fair value on a recurring basis and uses the fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value, with Level 1 inputs having the highest priority.

TASEKO MINES LIMITED<br>Notes to the Condensed Consolidated Interim Financial Statements<br>(Cdn$ in thousands)<br>(Unaudited)
Level 1 Level 2 Level 3 Total
--- --- --- --- --- --- ---
June 30, 2025
Financial assets and liabilities designated as FVPL
Derivative asset copper put and call options - 1,334 - 1,334
Derivative asset fuel call options - - - -
Cariboo contingent performance payable - - (31,544 ) (31,544 )
Florence Copper Stream and buy back option - - (86,444 ) (86,444 )
Settlement receivables - 2,008 - 2,008
- 3,342 (117,988 ) (114,646 )
Financial assets designated as FVOCI
Marketable securities 1,581 - - 1,581
Investment in private companies - - 500 500
**** 1,581 - 500 2,081
December 31, 2024
Financial assets and liabilities designated as FVPL
Derivative asset copper put and call options - 26,568 - 26,568
Derivative asset fuel call options - 332 - 332
Cariboo contingent performance payable - - (36,363 ) (36,363 )
Florence Copper Stream and buy back option - - (67,813 ) (67,813 )
Settlement receivables - 1,460 - 1,460
- 28,360 (104,176 ) (75,816 )
Financial assets designated as FVOCI
Marketable securities 895 - - 895
Investment in private companies - - 500 500
895 - 500 1,395

There have been no transfers between fair value levels during the reporting period. The carrying value of cash, accounts receivables, accounts payable and accrued liabilities approximate their fair value as at June 30, 2025 due to their short-term nature.

The Company's metal concentrate sales contracts are subject to provisional pricing with the selling price adjusted at the end of the quotational period. At each reporting date, the Company's settlement receivable on these contracts are marked-to-market based on a quoted forward price for which there exists an active commodity market.

The Cariboo contingent performance payables (Note 14) and the Florence Copper Stream and buy back option (Note 5c), are each Level 3 instruments, as the inputs to their valuation are not based on observable market data.

TASEKO MINES LIMITED<br>Notes to the Condensed Consolidated Interim Financial Statements<br>(Cdn$ in thousands)<br>(Unaudited)

24. SEGMENTED INFORMATION

Based on the primary locations where the Company generates revenue, or plans to generate revenue, the Company has three reportable segments reported to the Chief Executive Officer, the Chief Operating Decision Maker ("CODM") - Gibraltar, Florence Copper and Yellowhead. Corporate activities are not considered a reportable segment and are included as a reconciliation to total consolidated results. These corporate activities include corporate growth activities and groups that provide administrative, technical, financial and other support to the reportable segments. For producing segments, the Company evaluates performance based on earning (loss) from mining operations. Substantially all of the Company's earnings from mining operations, with associated revenue, production costs and depreciation, is attributable to the Gibraltar segment. Earnings (loss) from mining operations under the Florence segment, is solely related to depreciation on assets not currently engaged in the development of the commercial production facility. Other operating expenses includes general and administrative, share-based compensation expense, project evaluation expense, changes in derivatives and other fair value instruments, and other income (expense). Net finance and other expense includes finance income and expenses, accretion expense, foreign exchange gains and losses, gain on Cariboo acquisition, and gain on acquisition of control of Gibraltar. Total assets do not include intra-group receivables between segments.

Three months ended June 30, 2025
Gibraltar Florence<br>Copper Yellowhead Corporate Total
Loss from mining operations (397 ) (105 ) - - (502 )
Other operating expenses (2,733 ) (1,742 ) - (15,865 ) (20,340 )
Loss before financing costs and income taxes (3,130 ) (1,847 ) - (15,865 ) (20,842 )
Net finance and other income (expenses) (10,231 ) (7,300 ) - 32,802 15,271
(Loss) income before taxes (13,361 ) (9,147 ) - 16,937 (5,571 )
Six months ended June 30, 2025
--- --- --- --- --- --- --- --- --- ---
Gibraltar Florence<br>Copper Yellowhead Corporate Total
Earnings (loss) from mining operations 16,071 (207 ) - - 15,864
Other operating expenses (25,999 ) (7,852 ) - (21,019 ) (54,870 )
Loss before financing costs and income taxes (9,928 ) (8,059 ) - (21,019 ) (39,006 )
Net finance and other income (expenses) (13,142 ) (8,524 ) 18,561 (3,105 )
Loss before taxes (23,070 ) (16,583 ) - (2,458 ) (42,111 )
TASEKO MINES LIMITED<br>Notes to the Condensed Consolidated Interim Financial Statements<br>(Cdn$ in thousands)<br>(Unaudited)
---
Three months ended June 30, 2024
--- --- --- --- --- --- --- --- --- ---
Gibraltar Florence<br>Copper Yellowhead Corporate Total
Earnings from mining operations 44,948 - - - 44,948
Other operating expenses (10,702 ) (1,224 ) - (6,732 ) (18,658 )
Income (loss) before financing costs and income taxes 34,246 (1,224 ) - (6,732 ) 26,290
Net finance and other income (expenses) 3,562 2,284 - (46,336 ) (40,490 )
Income (loss) before taxes 37,808 1,060 - (53,068 ) (14,200 )
Six months ended June 30, 2024
--- --- --- --- --- --- --- --- --- ---
Gibraltar Florence<br>Copper Yellowhead Corporate Total
Earnings from mining operations 69,367 - - - 69,367
Other operating expenses (13,435 ) (3,817 ) - (15,275 ) (32,527 )
Income (loss) before financing costs and income taxes 55,932 (3,817 ) - (15,275 ) 36,840
Net finance and other expenses (4,702 ) (4,029 ) - (131 ) (8,862 )
Income (loss) before taxes 51,230 (7,846 ) - (15,406 ) 27,978
As at June 30, 2025
--- --- --- --- --- ---
Gibraltar Florence<br>Copper Yellowhead Corporate Total
Total Assets 1,189,226 856,021 28,144 189,368 2,262,759
Total Liabilities 639,178 246,431 683 816,532 1,702,824
Property, plant and equipment 997,917 910,972 27,555 17,802 1,954,246
As at December 31, 2024
--- --- --- --- --- ---
Gibraltar Florence<br>Copper Yellowhead Corporate Total
Total Assets 1,182,605 828,422 26,024 157,992 2,195,043
Total Liabilities 561,165 250,211 335 880,110 1,691,821
Property, plant and equipment 925,911 800,935 25,762 17,494 1,770,102 
Taseko Mines Limited: Exhibit 99.2 - Filed by newsfilecorp.com
TASEKO MINES LIMITED<br>Management's Discussion and Analysis

This management's discussion and analysis ("MD&A") is intended to help the reader understand Taseko Mines Limited ("Taseko", "we", "our" or the "Company"), our operations, financial performance, and current and future business environment.  This MD&A is intended to supplement and complement the consolidated financial statements and notes thereto, prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IASB") ("IFRS Accounting Standards") as applicable to the preparation of interim financial statements under IAS 34, Interim Financial Reporting, for the three and six months ended June 30, 2025 (the "Financial Statements").  You are encouraged to review the Financial Statements in conjunction with your review of this MD&A and the Company's other public filings, which are available on the Canadian Securities Administrators' website at www.sedarplus.ca ("SEDAR+") and on the Electronic Data Gathering, Analysis and Retrieval ("EDGAR") system on the United States Securities and Exchange Commission's ("SEC") website at www.sec.gov.

This MD&A is prepared as of August 6, 2025.  All dollar figures stated herein are expressed in thousands of Canadian dollars ("$", "Cdn$"), unless otherwise indicated.  Included throughout this MD&A are references to non-GAAP performance measures, which are denoted with an asterisk.  An explanation of these non-GAAP measures and their calculations are provided on page 29.

Cautionary Statement on Forward-Looking Information

This discussion includes certain statements that may be deemed "forward-looking statements".  All statements in this discussion, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploration activities, and events or developments that the Company expects are forward-looking statements.  Although we believe the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements.  Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.  Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements.  All of the forward-looking statements made in this MD&A are qualified by these cautionary statements.  We disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by applicable law.  Further information concerning risks and uncertainties associated with these forward-looking statements and our business may be found in the Company's other public filings with the SEC and Canadian provincial securities regulatory authorities.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

Table of Contents

Overview 3
Highlights 3
Review of Operations 5
Operations Analysis 6
Gibraltar Outlook 7
Florence Copper 8
Long-term Growth Strategy 9
Annual General Meeting 10
Annual Sustainability Report 11
Market Review 12
Financial Performance 13
Financial Condition Review 21
Summary of Quarterly Results 26
Critical Accounting Policies and Estimates 26
Internal and Disclosure Controls Over Financial Reporting 27
Key Management Personnel 28
Non-GAAP Performance Measures 29
Technical Information 35
TASEKO MINES LIMITED<br>Management's Discussion and Analysis
---

Overview

Taseko is a copper-focused mining company that seeks to create long-term shareholder value by acquiring, developing and operating large tonnage mineral deposits in stable jurisdictions that are capable of supporting a mine for decades.  The Company's principal assets are the wholly owned Gibraltar mine ("Gibraltar"), which is located in central British Columbia ("BC") and is one of the largest copper mines in North America, and the Florence Copper project ("Florence" or "Florence Copper"), which is located in Arizona and is currently under construction.  Taseko also owns the Yellowhead copper, New Prosperity copper-gold, and Aley niobium projects in British Columbia.

Highlights

Operating data Three months endedJune 30, Six months endedJune 30,
(Gibraltar – 100% basis) 2025 2024 Change 2025 2024 Change
Tons mined (millions) 30.4 18.4 12.0 53.6 41.2 12.4
Tons milled (millions) 7.7 5.7 2.0 15.6 13.4 2.2
Production (million pounds Cu) 19.8 20.2 (0.4 ) 39.8 49.9 (10.1 )
Sales (million pounds Cu) 19.0 22.6 (3.6 ) 40.8 54.3 (13.5 )
Financial Data<br>(Cdn$ in thousands, except for per share amounts) Three months endedJune 30, Six months endedJune 30,
--- --- --- --- --- --- --- --- --- --- --- ---
2025 2024 Change 2025 2024^1^ Change
Revenues 116,082 137,730 (21,648 ) 255,231 284,677 (29,446 )
Cash flows from operations 25,954 34,711 (8,757 ) 81,846 94,285 (12,439 )
Net income (loss) 21,868 (10,953 ) 32,821 (6,692 ) 7,943 (14,635 )
Per share – basic (“EPS”) 0.07 (0.04 ) 0.11 (0.02 ) 0.03 (0.05 )
Earnings from mining operations before depletion, amortization and non-recurring items* 20,700 76,928 (56,228 ) 59,491 129,725 (70,234 )
Adjusted EBITDA* 17,432 70,777 (53,345 ) 51,682 120,700 (69,018 )
Adjusted net (loss) income* (13,025 ) 30,503 (43,528 ) (19,968 ) 38,231 (58,199 )
Per share – basic (“Adjusted EPS”)* (0.04 ) 0.10 (0.14 ) (0.06 ) 0.13 (0.19 )

1 On March 25, 2024, the Company completed its acquisition of the remaining 50% interest in Cariboo Copper Corp. (“Cariboo”) from Dowa Metals & Mining Co., Ltd. (“Dowa”) and Furukawa Co., Ltd. (“Furukawa”) and increased its effective interest in Gibraltar from 87.5% to 100%.  As a result, the financial results reported in this MD&A reflect the Company’s 87.5% effective interest from March 15, 2023 to March 25, 2024 and 100% effective interest thereafter.  For more information on the Company’s acquisition of Cariboo, refer to the Financial Statements—Note 12a.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

Second Quarter Review

• Earnings from mining operations before depletion, amortization and non-recurring items* was $20.7 million, Adjusted EBITDA* was $17.4 million and cash flows from operations was $26.0 million;

• Net income was $21.9 million ($0.07 per share) and Adjusted net loss* was $13.0 million ($0.04 loss per share) after removal of unrealized foreign exchange gains on the Company's US dollar-denominated debt;

• Gibraltar produced 19.8 million pounds of copper at a total operating (C1) cost* of US$3.14 per pound of copper produced.  Copper head grade was 0.20% and recovery was 63% for the quarter reflecting the continued processing of lower grade stockpiled material which also had higher oxidation;

• Gibraltar sold 19.0 million pounds of copper at an average realized copper price of US$4.32 per pound and at an average Canadian dollar exchange rate of 1.38, contributing to revenues of $116.1 million for Taseko;

• At June 30, 2025, construction of the Florence Copper commercial production facility was over 90% complete and remains on schedule for first copper production before the end of the year.  All 90 injection and recovery wells planned for the construction phase have now been drilled and completed.  Construction of the solvent extraction and electrowinning areas continue to advance, with the installation of major components well underway;

• In June 2025, Taseko, Tŝilhqot'in Nation and the Province of BC reached an agreement concerning the New Prosperity project.  Taseko received a payment of $75 million from the Province of BC on closing of the transaction in the second quarter;

• In July 2025, the Company filed an updated technical report on the Yellowhead project highlighting an after-tax net present value of $2.0 billion for the project (8% after-tax discount rate), after-tax internal rate of return of 21%, and payback period of 3.3 years.  The Company also announced that it had submitted an Initial Project Description for the Yellowhead project and formally commenced the Environmental Assessment process with regulators;

• The Company has copper collar contracts in place to secure a minimum copper price of US$4.00 per pound for 54 million pounds of copper for the remainder of 2025; and,

• At June 30, 2025, the Company had a cash balance of $122.0 million and available liquidity of $197.0 million including the undrawn portion of its corporate revolving credit facility.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

Review of Operations

Gibraltar

Operating data (100% basis) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024
Tons mined (millions) 30.4 23.2 24.0 23.2 18.4
Tons milled (millions) 7.7 7.9 8.3 7.6 5.7
Strip ratio 2.3 4.6 1.9 1.2 1.6
Site operating cost per ton milled* 11.23 $ 8.73 $ 12.18 $ 14.23 $ 13.93
Copper concentrate
Head grade (%) 0.20 0.19 0.22 0.23 0.23
Copper recovery (%) 63.2 67.5 78.2 78.9 77.7
Production (million pounds Cu) 19.4 20.0 28.6 27.1 20.2
Sales (million pounds Cu) 19.0 21.8 27.4 26.3 22.6
Inventory (million pounds Cu) 2.7 2.3 4.1 2.9 2.3
Copper cathode
Production (thousand pounds Cu) 395 - - - -
Sales (thousand pounds Cu) - - - - -
Molybdenum concentrate
Production (thousand pounds Mo) 180 336 578 421 185
Sales (thousand pounds Mo) 178 364 607 348 221
Per unit data (US per Cu pound produced)1
Site operating cost* 3.15 $ 2.41 $ 2.52 $ 2.91 $ 2.88
By-product credit* (0.19 ) (0.33 ) (0.42 ) (0.25 ) (0.26 )
Site operating cost, net of by-product credit* 2.96 2.08 2.10 2.66 2.62
Off-property cost* 0.18 0.18 0.32 0.26 0.37
Total operating (C1) cost* 3.14 $ 2.26 $ 2.42 $ 2.92 $ 2.99

All values are in US Dollars.

1 Copper pounds produced includes both copper in concentrate and copper cathode.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

Operations Analysis

Second Quarter Review

Mining operations continued to advance through the upper sections of the Connector pit, opening up the deeper, higher quality ore zones for the next phase of mining.  A total of 30.4 million tons were mined in the second quarter, a 30% increase over the prior quarter due to increased productivity of the mining fleet.  Approximately 65% of the ore mined in the quarter was oxide ore, which was added to the heap leach pads and contributed to a lower strip ratio.

Lower-grade stockpiled ore continued to be the primary source of mill feed in the quarter, resulting in copper production levels similar to the first quarter.  Gibraltar produced 19.4 million pounds of copper in concentrate in the second quarter.  Copper head grade was 0.20% and recovery was 63%, impacted by oxidation and supergene material in the stockpiled ore which mainly originated from the upper benches of the Connector pit.  Mill throughput was 7.7 million tons in the quarter and remained consistently at nameplate capacity throughout the quarter.

In the second quarter, Gibraltar completed the refurbishment and successfully restarted its solvent extraction and electrowinning ("SX/EW") plant which had been idle since 2015 and produced 395 thousand pounds of copper cathode.

Capitalized stripping costs totaling $30.8 million remained higher in the second quarter attributable to a higher than normal strip ratio for sulphide ore tons in the Connector pit.  Total site costs* including capitalized stripping was $116.8 million in the quarter, higher than the prior quarter primarily due to higher mining rates.  Total site costs were also higher than the prior year quarter due to mill downtime in 2024 related to a labour strike and crusher relocation project.

Molybdenum production was 180 thousand pounds in the second quarter, comparable to 185 thousand pounds in the comparative prior year quarter.  At an average molybdenum price of US$20.71 per pound for the quarter, molybdenum contributed a by-product credit of US$0.19 per pound of copper produced.

Off-property costs of US$0.18 per pound of copper produced were consistent with the prior quarter and reflect Gibraltar's 2025 offtake agreements with average treatment and refining charges ("TCRC") of $nil for the year.

Total operating (C1) costs* were US$3.14 per pound of copper produced in the second quarter compared to US$2.99 per pound of copper produced in the comparative prior year quarter.  The increase in total operating (C1) costs was attributable to low site operating costs in the prior year from mill downtime, as well as lower copper production, more oxide ore added to the leach pads and lower molybdenum by-product credits in the current quarter, partially offset by higher capitalized stripping costs and lower off-property costs as outlined in the bridge graph below:

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

Gibraltar Outlook

Mining activity will continue to advance in the Connector pit, which will be the primary source of mill feed for the remainder of 2025 and the years ahead.  Significant increases in head grades and recoveries, and higher mill throughput from processing the softer Connector pit ore, are expected in the second half of 2025 and continuing into 2026.  Copper production for the year is expected to be 110 to 120 million pounds, including cathode production.

Molybdenum production is also forecast to increase in the second half of 2025 as molybdenum grades are expected to be notably higher in Connector pit ore.

The Company has offtake agreements covering Gibraltar concentrate production in 2025 and 2026, which contain significantly lower and in certain cases negative (premium) TCRC rates reflecting the tight copper smelting market.  Offtake agreements are in place for substantially all of Gibraltar's copper concentrate production in 2025 and 2026, and, based on the contract terms, the Company expects average TCRCs to be to around $nil in 2025 and 2026.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

The Company has a prudent hedging program in place to protect a minimum copper price and Gibraltar cash flow during the Florence Copper construction period.  Currently, the Company has copper collar contracts in place that secure a minimum copper price of US$4.00 per pound for 54 million pounds of copper production for the remainder of 2025 (refer to "Financial Condition Review-Hedging Strategy" for details).

Florence Copper

The Company has all the key permits in place for the commercial production facility at Florence and construction continues to advance on schedule.  Over 900,000 project hours have been worked with no reportable injuries or environmental incidents.  The Company has a fixed-price contract with the general contractor for construction of the SX/EW plant and associated surface infrastructure and activities are beginning to wind down from peak spend in the first quarter.

All injection and recovery wells planned to be drilled during the construction phase were completed as of June 30, 2025.  Remaining construction activities are advancing on plan and project areas will soon start transitioning to commissioning.

Operational readiness remains a key focus for site management.  Site activities are focused on hiring additional personnel and developing detailed operating plans for the ramp up of production, which is expected to begin before the end of this year.

Florence Copper capital spend<br>(US$ in thousands) Three months ended<br>June 30, 2025 Six months ended<br>June 30, 2025
Commercial facility construction costs 32,956 84,320
Site and PTF operations 8,276 14,345
Total Florence Copper capital spend 41,232 98,665

Florence Copper commercial facility construction costs were US$33.0 million in the second quarter and US$239.3 million has been incurred on the Florence Copper commercial facility construction as of June 30, 2025.

The Company has a technical report titled "NI 43-101 Technical Report Florence Copper Project, Pinal County, Arizona" dated March 30, 2023 (the "Florence 2023 Technical Report") on SEDAR+.  The Florence 2023 Technical Report was prepared in accordance with National Instrument 43-101 ("NI 43-101") and incorporated the results of test work from the production test facility ("PTF") as well as updated capital and operating costs (Q3 2022 basis) for the commercial production facility.

Project highlights based on the Florence 2023 Technical Report are detailed below:

• Net present value of US$930 million (at US$3.75 copper price, 8% after-tax discount rate);

• After-tax internal rate of return of 47%;

• Payback period of 2.6 years;

• Operating costs (C1) of US$1.11 per pound of copper produced;

• Annual production capacity of 85 million pounds of LME grade A copper cathode;

• Mine life of 22 years;

• Total life of mine production of 1.5 billion pounds of copper; and

• Initial capital cost of US$232 million (Q3 2022 basis).

Based on the Florence 2023 Technical Report, the estimated construction costs for the Florence Copper commercial production facility were US$232 million and management continues to expect that total construction costs will be within 10% to 15% of this estimate.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

Long-term Growth Strategy

Taseko's strategy has been to grow the company by acquiring and developing a pipeline of projects focused on copper in North America.  We continue to believe this will generate long-term returns for shareholders.  Our other development projects are located in BC, Canada.

Yellowhead Copper Project

The Yellowhead copper project ("Yellowhead") is expected to produce 4.4 billion pounds of copper over a 25-year mine life at an average C1 cost, net of by-product credit, of US$1.90 per pound of copper produced.  During the first 5 years of operation, Yellowhead is expected to produce an average of 206 million pounds of copper per year at an average C1 cost, net of by-product credit, of US$1.62 per pound of copper produced.  Yellowhead also contains valuable precious metal by-products with 282,000 ounces of gold production and 19.4 million ounces of silver production over the life of mine.

The economic analysis in the Yellowhead 2025 Technical Report (defined below) was prepared using a long-term copper price of US$4.25 per pound, a long-term gold price of US$2,400 per ounce, and a long-term silver price of US$28.00 per ounce.  This report titled "Technical Report Update on the Yellowhead Copper Project, British Columbia, Canada" (the "Yellowhead 2025 Technical Report") was published on July 10, 2025 under the supervision of Richard Weymark, P. Eng., MBA, Vice President, Engineering for Taseko and a Qualified Person as defined by NI 43-101.

Project highlights based on the Yellowhead 2025 Technical Report are detailed below:

• Average annual copper production of 178 million pounds over a 25 year mine life at total cash costs (C1) of US$1.90 per pound of copper produced;

• Over the first 5 years of the mine life, copper grade is expected to average 0.32% producing an average of 206 million pounds of copper at total cash costs (C1) of US$1.62 per pound of copper produced;

• Concentrator designed to process 90,000 tonnes per day of ore with an expected copper recovery of 90%, and produce a clean copper concentrate with payable gold and silver by-products;

• Conventional open pit mining with a low strip ratio of 1.4;

• After-tax net present value of $2.0 billion (8% after-tax discount rate) and after-tax internal rate of return of 21%;

• Initial capital costs of $2.0 billion with a payback period of 3.3 years; and

• Expected to be eligible for the Canadian federal Clean Technology Manufacturing Investment Tax Credit, with 30% (approximately $540 million) of eligible initial capital costs reimbursed in year 1 of operation.

In the second quarter, the project's Initial Project Description was filed and accepted by the British Columbia Environmental Assessment Office and Impact Assessment Agency of Canada, formally commencing the Environmental Assessment process.  The Company has been engaging with project stakeholders to ensure that the development of Yellowhead is in line with environmental and social expectations.  The Company opened a community Yellowhead project office in 2024 to support ongoing engagement with local communities including First Nations.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

New Prosperity Copper-Gold project

In June 2025, Taseko, the Tŝilhqot'in Nation and the Province of BC reached a historic agreement concerning the New Prosperity project (the "Teẑtan Biny Agreement").  The Teẑtan Biny Agreement ends litigation among the parties while providing certainty with respect to how the significant copper-gold resource at New Prosperity may be developed in the future, and meaningfully advances the goals of reconciliation in BC.

Key elements of the Teẑtan Biny Agreement include:

• Taseko received a payment of $75 million from the Province of BC upon closing of the agreement;

• Taseko contributed a 22.5% equity interest in the New Prosperity mineral tenures to a trust for the future benefit of the Tŝilhqot'in Nation.  The trust will transfer the property interest to the Tŝilhqot'in Nation if and when it consents to a proposal to pursue mineral development in the project area;

• Taseko retains a majority interest (77.5%) in the New Prosperity mineral tenures and can divest some or all of its interest at any time, including to other mining companies that could advance a project with the consent of the Tŝilhqot'in Nation.  However, Taseko has committed not to be the proponent (operator) of mineral exploration and development activities at New Prosperity, nor the owner of a future mine development;

• Taseko has entered into a consent agreement with the Tŝilhqot'in Nation, whereby no mineral exploration or development activity can proceed in the New Prosperity project area without the free, prior and informed consent of the Tŝilhqot'in Nation;

• The Province of BC and the Tŝilhqot'in Nation have agreed to negotiate the process by which the consent of the Tŝilhqot'in Nation will be sought for any proposed mining project to proceed through an environmental assessment process; and

• The Tŝilhqot'in Nation and the Province of BC have agreed to undertake a land-use planning process for the area of the mineral tenures and a broader area of land within Tŝilhqot'in territory.  The Province of BC will provide funding to the Tŝilhqot'in Nation to facilitate the land-use planning process and for a Cultural Revitalization Fund.

Aley Niobium project

The converter pilot test is ongoing to provide additional process data to support the design of commercial process facilities, and final product samples to support product marketing initiatives.  The Company is also conducting a scoping study to investigate the potential for Aley niobium oxide production to supply the growing market for niobium-based batteries.

Annual General Meeting

The Company's Annual General Meeting was held on June 12, 2025 and shareholders voted in favor of all items of business before the meeting, including the continuation of the Company's amended and restated shareholders rights plan for a 3-year period and the advisory resolution on executive compensation (Say-on-Pay), and the election of all director nominees.  Detailed voting results for the 2025 Annual General Meeting are available on SEDAR+ at www.sedarplus.ca.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

Annual Sustainability Report

In June 2025, the Company published its annual Sustainability Report titled C^2^ (Copper x Community) (the "Report").  The Report highlights Taseko's operational and sustainability achievements, with an emphasis on the connection between copper production and the people, communities, and social environments that support and benefit from our operations and projects.

With 20 years of successful operations under Taseko's stewardship, 2024 marked a milestone year for the Company's flagship operation, the Gibraltar mine.  As Canada's second-largest copper mine, Gibraltar continues to reflect Taseko's commitment to operational excellence, health and safety, and delivering '360° of Value' for all stakeholders.

Florence Copper will soon become one of the lowest carbon and energy-intensive copper producers in the world, offering domestically produced, traceable and high-purity copper metal to support North American manufacturing and economic security.

While profitable operations and return on investment are critical drivers for Taseko's success, the Company also delivers value to its employees and operating communities, business partners, Indigenous Nations and governments.  The Report is an opportunity to showcase the important benefits that the Company generates through its operations, investments and people.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

The full report can be viewed and downloaded at www.tasekomines.com/sustainability/overview.

Market Review

Copper Molybdenum Canadian Dollar / US Dollar Exchange

1 Commodity prices in US dollars per pound.

2 Sources: London Metal Exchange for copper prices, Platts Metals for molybdenum prices, Bank of Canada for Canadian dollar/US dollar exchange rates.

Copper prices on the London Metal Exchange ("LME") are currently around US$4.35 per pound compared to US$4.55 per pound at June 30, 2025 and the second quarter average LME copper price of US$4.32 per pound.  Copper prices have experienced significant volatility influenced by uncertainty in US trade policies.  Copper prices climbed in the second quarter driven by tightening global supply, and a push to redirect shipments to the US ahead of possible import tariffs leading to a drawdown of inventories on other exchanges.

Potential US import tariffs would not have a material impact on sales at Gibraltar as the mine produces copper and molybdenum concentrates that are sold to international metal traders and delivered to Asian markets.  Offtake agreements are in place for substantially all of Gibraltar's copper concentrate production in 2025 and 2026, and no changes to these sales channels are expected during this period.  Future production at Florence is expected to remain in the US for domestic consumption.

Longer-term demand for copper is expected to remain strong driven by electrification, renewable energy transition, artificial intelligence and overall industrial activity while tight supply conditions are expected to continue due to few available sources of new primary copper supply.  These factors continue to provide unprecedented catalysts and support a higher copper price in the longer term as new mine supply lags behind growth in copper demand.

Smelter treatment and refining charges remain historically low, including spot rates at negative (premium) rates, driven by an increase in global copper smelting capacity and disruptions in the supply of copper concentrates.  Tight copper concentrate supply could continue putting persistent pressure on spot TCRC rates.

Approximately 6% of the Company's revenue is made up of molybdenum sales and Connector pit ore is expected to provide higher molybdenum grades in the coming years.  Molybdenum prices are currently around US$23.75 per pound compared to US$21.85 per pound at June 30, 2025 and the second quarter average molybdenum price of US$20.71 per pound.  The Company's sales agreements specify molybdenum pricing based on published Platts Metals reports.

The Company's sales contracts are priced in US dollars while a majority of Gibraltar's costs are Canadian dollar denominated, and, therefore, fluctuations in the Canadian dollar/US dollar exchange rate can have a significant effect on the Company's financial results.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

Financial Performance

Earnings

Three months ended<br>June 30, Six months ended<br>June 30,
(Cdn$ in thousands) 2025 2024 Change 2025 2024 Change
Net income (loss) 21,868 (10,953 ) 32,821 (6,692 ) 7,943 (14,635 )
Unrealized foreign exchange (gain) loss (40,335 ) 5,408 (45,743 ) (38,261 ) 19,096 (57,357 )
Unrealized loss on derivatives 9,489 10,033 (544 ) 33,025 13,552 19,473
Other operating costs - 10,435 (10,435 ) - 10,435 (10,435 )
Call premium on settlement of debt - 9,571 (9,571 ) - 9,571 (9,571 )
Loss on settlement of debt, net of capitalized interest - 2,904 (2,904 ) - 2,904 (2,904 )
Gain on acquisition of Cariboo - - - - (47,426 ) 47,426
Gain on acquisition of control of Gibraltar^1^ - - - - (14,982 ) 14,982
Realized gain on sale of inventory^2^ - 4,633 (4,633 ) - 17,987 (17,987 )
Realized gain on processing of ore stockpiles^3^ - 3,191 (3,191 ) - 3,191 (3,191 )
Accretion on Florence royalty obligation 6,201 2,132 4,069 8,772 5,548 3,224
Accretion on Cariboo consideration payable 4,484 8,399 (3,915 ) 5,148 9,954 (4,806 )
Non-recurring other expenses - 394 (394 ) - 532 (532 )
Tax effect of sale of non-controlling interest in New Prosperity (9,285 ) - (9,285 ) (9,285 ) - (9,285 )
Estimated tax effect of adjustments (5,447 ) (15,644 ) 10,197 (12,675 ) (74 ) (12,601 )
Adjusted net (loss) income (13,025 ) 30,503 (43,528 ) (19,968 ) 38,231 (58,199 )

1 The $15.0 million gain on acquisition of control of Gibraltar recorded for the six months ended June 30, 2024 relates to the write-up to fair value for Taseko's 87.5% interest in Gibraltar's finished copper concentrate inventory held at the date of acquisition of control of Gibraltar (March 25, 2024) as a result of the Company's acquisition of Cariboo.  These gains have been eliminated from Adjusted net (loss) income and added back in the period the inventory was sold.

2 Cost of sales for the three and six months ended June 30, 2024 included $4.6 million and $18.0 million, respectively, in write-ups to fair value for Gibraltar's finished copper concentrate inventory held at the date of acquisition of Cariboo (March 25, 2024) that was subsequently sold and realized.  The realized portion of the gain recorded for GAAP purposes has been included in Adjusted net (loss) income in the period the inventory was sold.

3 Cost of sales for the three and six months ended June 30, 2024 included $3.2 million in write-ups to fair value for Gibraltar's ore stockpile inventories held at the date of acquisition of Cariboo (March 25, 2024) that was subsequently processed.  The realized portion of the gain recorded for GAAP purposes has been included in Adjusted net (loss) income in the period the inventory was processed.

Adjusted net loss was $13.0 million ($0.04 loss per share) for the second quarter compared to Adjusted net income of $30.5 million ($0.10 earnings per share) for the comparative prior year quarter.  The decrease in Adjusted earnings of $43.5 million was primarily due to a $26.3 million insurance recovery recorded in the prior year as well as lower production and sales volumes and weaker average copper prices in the current quarter compared to the prior year quarter.  Total site costs also increased due to higher mining rates as Gibraltar utilized three additional haul trucks, partially offset by lower input commodity prices primarily for diesel and higher waste stripping due to mining of waste tons above the average strip ratio as Gibraltar continued pushback activities in the Connector pit.  Mill feed was sourced from lower grade stockpiled ore, adversely affecting metallurgical recoveries and production, and contributed to increased unit production costs and lower operating margins.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

Net income was $21.9 million ($0.07 per share) for the second quarter which included an unrealized foreign exchange gains on the Company's US dollar-denominated debt in the amount of $40.3 million as well as the recognition of a deferred tax asset on net capital losses previously unrecognized that were used to offset the gain on proceeds received for New Prosperity recognized directly in equity.  Net income was partially reduced from the impact of unrealized losses on derivatives primarily due to the increasing copper price trend in the current quarter, accretion on the Florence royalty obligation to Taurus, and accretion and fair value adjustments on Cariboo consideration payable.  Net loss was $11.0 million ($0.04 loss per share) for the comparative prior year quarter after factoring in losses from the refinance of the Company's outstanding debt.

Adjusted net loss was $20.0 million ($0.06 loss per share) for the six months ended June 30, 2025 compared to Adjusted net income of $38.2 million ($0.13 earnings per share) for the comparative prior year period.  The decrease in Adjusted earnings of $58.2 million was primarily due to lower copper production and sales volume, partially offset by stronger average copper prices in the first half of 2025.  Unit cost of sales were also higher due to processing of lower grade stockpiled ore and lower recoveries which carry higher costs per recoverable pound of copper.

Net loss was $6.7 million ($0.02 loss per share) for the six months ended June 30, 2025 after adding back unrealized foreign exchange gains due to a weakening of the US dollar against the Canadian dollar and its effect on US dollar-denominated borrowings and deferred tax recovery recognized on the Company's sale of a non-controlling interest in New Prosperity, offset by unrealized losses on derivatives, accretion on Florence royalty obligation, and accretion and fair value adjustments on Cariboo consideration payable.  Net income was $7.9 million ($0.03 earnings per share) for the comparative prior year period after factoring in gains related to the acquisition of Cariboo from Dowa and Furukawa.

No adjustments were made to Adjusted net (loss) income for price adjustments on settlements during the period.

Revenues

Three months ended<br>June 30, Six months ended<br>June 30,
(Cdn$ in thousands) 2025 2024 Change 2025 2024^1^ Change
Copper contained in concentrate 109,325 133,207 (23,882 ) 237,060 277,131 (40,071 )
Molybdenum concentrate 4,814 7,576 (2,762 ) 13,588 14,179 (591 )
Silver 755 1,393 (638 ) 2,496 3,120 (624 )
Gold 351 - 351 740 - 740
Total gross revenue 115,245 142,176 (26,931 ) 253,884 294,430 (40,546 )
Treatment and refining premiums (costs) 837 (4,446 ) 5,283 1,347 (9,753 ) 11,100
Revenue 116,082 137,730 (21,648 ) 255,231 284,677 (29,446 )
Sales of copper in concentrate^2^ (thousand pounds) 18,322 21,708 (3,386 ) 39,229 52,090 (12,861 )
Average realized copper price (US$ per pound) 4.32 4.49 (0.17 ) 4.28 4.15 0.13
Average LME copper price (US$ per pound) 4.32 4.42 (0.10 ) 4.28 4.12 0.16
Average exchange rate (Cdn$/US$) 1.38 1.37 0.01 1.41 1.36 0.05

1 Results for the six months ended June 30, 2024 reflect the Company's 87.5% effective interest in Gibraltar for the period from January 1 to March 24, 2024 and 100% effective interest thereafter.

2 Sales of copper in concentrate includes a net smelter payable deduction of approximately 3.5% to derive net payable pounds of copper sold.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

Copper revenues were $109.3 million for the second quarter compared to $133.2 million for the comparative prior year quarter.  The overall decrease in copper revenues of $23.9 million was attributable to a negative sales volume variance of $20.8 million due to lower sales by 3.4 million pounds in the current quarter and a negative price variance of $4.2 million due to lower average realized copper prices of US$0.17 per pound in the current quarter, partially offset by a favorable foreign exchange variance of $1.1 million.

Copper revenues were $237.1 million for the six months ended June 30, 2025 compared to $277.1 million for the comparative prior year period.  The overall decrease in copper revenues of $40.1 million was attributable to a negative volume variance of $56.9 million due to lower sales of 12.9 million pounds in the first half of 2025, partially offset by a positive price variance of $7.7 million due to higher average realized copper prices of US$0.13 per pound in the current period and a positive foreign exchange variance of $9.1 million due to the relative strength of the US dollar against the Canadian dollar in the current period.

Molybdenum revenues were $4.8 million and $13.6 million for the three and six months ended June 30, 2025, respectively, compared to $7.6 million and $14.2 million for the comparative prior year periods.  The decrease in molybdenum revenues of $2.8 million and $0.6 million, respectively, was primarily driven by decreased sales volume due to lower recovery and grade from the processing of stockpiled materials.

Gold revenues were $0.4 million and $0.7 million for the three and six months ended June 30, 2025, respectively, as the Company benefited from payable gold for the first time as one of its concentrate offtake agreements paid for gold contained in the Gibraltar concentrate.

The Company recorded treatment and refining premiums of $0.8 million and $1.3 million for the three and six months ended June 30, 2025, respectively, compared to treatment and refining costs of $4.4 million and $9.8 million for the comparative prior year periods, reflecting the favorable TCRC rates realized under the Company's 2025 offtake agreements.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

Cost of sales

Three months endedJune 30, Six months endedJune 30,
(Cdn$ in thousands) 2025 2024 Change 2025 20241 Change
Site operating costs 86,067 79,804 6,263 154,984 159,482 (4,498 )
Transportation costs 5,720 6,408 (688 ) 11,704 16,561 (4,857 )
Changes in inventories:
Changes in inventories of finished goods (2,123 10,462 (12,585 ) 587 30,854 (30,267 )
Changes in inventories of sulphide ore stockpiles 17,975 1,161 16,814 46,238 1,178 45,060
Changes in inventories of oxide ore stockpiles (12,257 (2,919 (9,338 ) (17,773 (5,655 (12,118 )
Production costs 95,382 94,916 466 195,740 202,420 (6,680 )
Depletion and amortization 25,210 13,721 11,489 47,635 28,745 18,890
Cost of sales 120,592 108,637 11,955 243,375 231,165 12,210
Site operating costs per ton milled* 11.23 13.93 $  (2.70 ) 9.96 12.67 $   (2.71 )
Other operating (income) costs:
Research and development incentives (4,008 - (4,008 ) (4,008 - (4,008 )
Crusher relocation costs - 7,911 (7,911 ) - 7,911 (7,911 )
Site care and maintenance costs - 2,524 (2,524 ) - 2,524 (2,524 )
Other operating (income) costs (4,008 10,435 (14,443 ) (4,008 10,435 (14,443 )
Insurance recovery - (26,290 26,290 - (26,290 26,290

All values are in US Dollars.

1 Results for the six months ended June 30, 2024 reflect the Company's 87.5% effective interest in Gibraltar for the period from January 1 to March 24, 2024 and 100% effective interest thereafter.

Site operating costs were $86.1 million for the second quarter compared to $79.8 million for the comparative prior year quarter.  The increase in site operating costs of $6.3 million was primarily attributable to the impact of the June 2024 unionized labour strike at Gibraltar which reduced site operating costs in the comparative prior year quarter as well as the impact of the crusher relocation project and concurrent mill maintenance project had on reducing milling costs in the comparative prior year quarter.  The current quarter also had higher mining rates with a greater portion capitalized as excess stripping for the current pushback in the Connector pit compared to the prior year quarter.

Site operating costs were $155.0 million for the six months ended June 30, 2025 compared to $159.5 million for the comparative prior year period.  The decrease in site operating costs of $4.5 million was primarily attributable to higher capitalized stripping costs for the current period.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

Transportation costs were $5.7 million and $11.7 million for the three and six months ended June 30, 2025, respectively, compared to $6.4 million and $16.6 million for the comparative prior year periods and reflect the lower sales volume in the current periods.

Cost of sales was also impacted by changes in stockpile inventories.  Stockpiled ore material was used to supplement mined ore for both the three and six months ended June 30, 2025 depleting 4.3 million tons and 9.9 million tons of sulphide ore stockpiles and contributing to an increase in production costs of $18.0 million and $46.2 million, respectively.  In addition, oxide ore stockpiles increased by 5.7 million tons and 7.9 million tons contributing to a decrease in production costs of $12.3 million and $17.8 million for the three and six months ended June 30, 2025, respectively, as Gibraltar continues to mine through the top oxide ore layer in the Connector pit and adding this material to the heap leach pads.

Cost of sales was also impacted by changes in copper finished goods inventories and the unit cost thereof.  The unit cost of copper inventories increased during the period due to lower metallurgical recoveries from the processing of lower grade stockpiled ore which resulted in fewer copper pounds produced per ton of ore milled.  Copper finished goods inventories increased by 0.4 million pounds for the second quarter and contributed to a decrease in production costs of $2.1 million.  Copper finished goods inventories decreased by 1.4 million pounds for the six months ended June 30, 2025, offset by increased inventory unit cost, and contributed to an increase in production costs of $0.6 million.

In the comparative prior year quarter, cost of sales included inventory write-ups to fair value of $13.4 million for concentrate inventory held at the date of acquisition of control of Gibraltar (March 25, 2024) arising from the Company's acquisition of Cariboo that was subsequently sold in the first quarter of 2024.

Depletion and amortization increased by $11.5 million and $18.9 million for the three and six months ended June 30, 2025, respectively, compared to the comparative prior year periods due to the release of depreciation included in stockpile inventory costs that were processed and released during the period.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

Other expenses (income)

Three months ended<br>June 30, Six months ended<br>June 30,
(Cdn$ in thousands) 2025 2024 Change 2025 2024^1^ Change
General and administrative 4,116 3,517 599 7,440 6,646 794
Share-based compensation expense 4,740 2,512 2,228 9,744 7,952 1,792
Realized loss on derivative instruments 1,566 1,655 (89 ) 3,119 3,357 (238 )
Unrealized loss on derivative instruments 867 10,033 (9,166 ) 22,433 13,552 8,881
Fair value adjustment on Florence copper stream derivative 3,486 1,223 2,263 8,766 3,815 4,951
Fair value adjustment on Cariboo contingent performance payment 5,136 - 5,136 1,826 - 1,826
Project evaluation expense 322 542 (220 ) 1,491 759 732
Gain on Cariboo acquisition - - - - (47,426 ) 47,426
Gain on acquisition of control of Gibraltar^1^ - - - - (14,982 ) 14,982
Other income, net 107 399 (292 ) 51 261 (210 )
Other expenses (income) 20,340 19,881 459 54,870 (26,066 ) 80,936

1 The $15.0 million gain on acquisition of control of Gibraltar recorded for the six months ended June 30, 2024 relates to the write-up to fair value for Taseko's 87.5% interest in Gibraltar's finished copper concentrate inventory held at the date of acquisition of control of Gibraltar (March 25, 2024) as a result of the Company's acquisition of Cariboo.

General and administrative expenses were $4.1 million for the second quarter compared to $3.5 million for the comparative prior year quarter, and $7.4 million for the six months ended June 30, 2025 compared to $6.6 million for the comparative prior year period.  The increase in general and administrative expenses was attributable to increasing administrative spend at Florence as the site prepares for operational ramp up of the Florence Copper project later this year.

Share-based compensation expenses is comprised of the amortization of share options and performance share units, and fair value adjustments on deferred share units and restricted share units.  Share-based compensation expenses increased by $2.2 million and $1.8 million for the three and six months ended June 30, 2025, respectively, primarily due to the increase in the Company's share price and its impact on the valuation of deferred share units and restricted share units.  For more information, refer to the Financial Statements-Note 19.

Realized loss on derivative instruments was $1.6 million and $3.1 million for the three and six months ended June 30, 2025, respectively, comparable with $1.7 million and $3.4 million for the comparative prior year periods and consists of the amortization of premiums paid for copper collars and fuel calls held by the Company as part of the Company's hedging strategy.  Unrealized loss on derivative instruments was $0.9 million for the second quarter compared to $10.0 million for the comparative prior year quarter, and $22.4 million for the six months ended June 30, 2025 compared to $13.6 million for the comparative prior year period.  Changes in unrealized loss on derivative instruments primarily relates to the change in fair value on the Company's outstanding copper collars and reflects volatility in copper price trends.

Fair value adjustment on Florence copper stream derivative was $3.5 million for the second quarter and $8.8 million for the six months ended June 30, 2025.  Fair value adjustment on Cariboo contingent performance payment was $5.1 million for the second quarter and $1.8 million for the six months ended June 30, 2025.  These fair value adjustments reflect upward changes in forecast copper prices and changes in discount rates applied over the term of the respective instruments.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

Project evaluation expense represents costs associated with the New Prosperity project and other technical expenditures undertaken by Taseko's engineering and technical teams on various project initiatives.

On March 25, 2024, the Company completed its acquisition of the remaining 50% of Cariboo from Dowa and Furukawa and increased its effective interest in Gibraltar from 87.5% to 100%.  The Company recognized a gain on acquisition of Cariboo of $47.4 million on the acquisition representing the difference between the estimated fair value of net assets acquired and the estimated fair value of total consideration payable.  The acquisition also gave the Company full control over Gibraltar and required a deemed disposition and reacquisition of its previously held 87.5% interest in Gibraltar according to IFRS Accounting Standards.  The Company recognized a gain on acquisition of control of Gibraltar of $15.0 million representing the write-up of finished copper concentrate inventory held at the date of acquisition to fair value.  Further details on the Cariboo acquisition can be found in the Financial Statements-Note 12a.

Finance and accretion expenses

Three months ended<br>June 30, Six months ended<br>June 30,
(Cdn$ in thousands) 2025 2024 Change 2025 2024 Change
Interest expense 17,145 13,586 3,559 34,491 28,406 6,085
Amortization of deferred financing charges 620 619 1 1,237 1,359 (122 )
Loss on settlement of long-term debt - 4,646 (4,646 ) - 4,646 (4,646 )
Finance income (124 ) (911 ) 787 (1,454 ) (1,997 ) 543
Less: Interest expense capitalized (7,537 ) (5,971 ) (1,566 ) (13,293 ) (8,719 ) (4,574 )
Finance expenses, net 10,104 11,969 1,865 20,981 23,695 (2,714 )
Accretion on deferred revenue 2,320 1,809 511 5,031 3,177 1,854
Accretion on provision for environmental rehabilitation 710 697 13 1,434 1,395 39
Accretion on Cariboo consideration payable 4,484 8,399 (3,915 ) 5,148 9,954 (4,806 )
Accretion on Florence royalty obligation 6,201 2,132 4,069 8,772 5,548 3,224
Accretion expenses 13,715 13,037 678 20,385 20,074 311

Net finance expenses were $10.1 million for the second quarter compared to $12.0 million for the comparative prior year quarter, and $21.0 million for the six months ended June 30, 2025 compared to $23.7 million for the comparative prior year period.  The increase in net finance expenses was primarily driven by the impact of higher principal outstanding and coupon rate on the 8.25% senior secured notes due May 2030 that were issued in April 2024 captured in the current periods, and interest charges on outstanding advances against the Company's corporate revolving credit facility.  Capitalized interest attributable to the funding of Florence Copper development costs increased by $1.6 million and $4.6 million for the three and six months ended June 30, 2025, respectively, proportionate with increased spend on the Florence Copper commercial production facility.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

Accretion on Cariboo consideration payable was $4.5 million for the second quarter and $5.1 million for the six months ended June 30, 2025, and represents the inherent financing component of the fixed payment portion of the Sojitz earn-out agreement.

Accretion on Florence royalty obligation was $6.2 million for the second quarter and $8.8 million for the six months ended June 30, 2025, and reflects changes in forecast copper prices applied over the term of the Florence royalty obligation.

Income tax

Three months ended<br>June 30, Six months ended<br>June 30,
(Cdn$ in thousands) 2025 2024 Change 2025 2024 Change
Current income tax (recovery) expense (1,243 ) 633 (1,876 ) (1,243 ) 1,438 (2,681 )
Deferred income tax (recovery) expense (26,196 ) (3,880 ) (22,316 ) (34,176 ) 18,597 (52,773 )
Income tax (recovery) expense (27,439 ) (3,247 ) (24,192 ) (35,419 ) 20,035 (55,454 )
Effective tax rate 492.5% 22.9% 469.6% 84.1% 71.6% 12.5%
Canadian statutory rate 27.0% 27.0% - 27.0% 27.0% -
BC mineral tax rate 9.5% 9.5% - 9.5% 9.5% -

A reconciliation of the effective tax rate is presented below:

Three months ended<br>June 30, Six months ended<br>June 30,
(Cdn$ in thousands) 2025 2024 Change 2025 2024 Change
Income tax (recovery) expense at Canadian statutory rate of 36.5% (2,033 ) (5,180 ) 3,147 (15,366 ) 10,210 (25,576 )
Permanent differences (6,847 ) 2,277 (9,124 ) (1,619 ) 8,847 (10,466 )
Foreign tax rate differential 48 238 (190 ) 200 270 (70 )
Unrecognized tax benefits (14,439 ) 1,282 (15,721 ) (14,590 ) 2,572 (17,162 )
Deferred tax adjustments related to prior periods (4,168 ) (1,864 ) (2,304 ) (4,044 ) (1,864 ) (2,180 )
Income tax (recovery) expense (27,439 ) (3,247 ) (24,192 ) (35,419 ) 20,035 (55,454 )

The effective tax rate for the three and six months ended June 30, 2025 was higher than the combined BC mineral tax rate and federal statutory income tax rate of 36.5% primarily due to unrealized foreign exchange gains on the Company's senior secured notes which are not recognized for deferred tax purposes.

The deferred income tax recovery of $26.2 million recognized in the current quarter also included $9.3 million related to the recognition of previously unrecognized net capital losses that were utilized to offset capital gains recognized on the sale of a minority interest in the New Prosperity project.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

Current income tax recovery for the three and six months ended June 30, 2025 represents an adjustment for the prior year's BC mineral tax payable.

Financial Condition Review

Balance sheet review

(Cdn$ in thousands) June 30,<br>2025 December 31,<br>2024 Change
Cash and equivalents 121,988 172,732 (50,744 )
Other current assets 113,338 180,507 (67,169 )
Property, plant and equipment 1,954,246 1,770,102 184,144
Other assets 73,187 71,702 1,485
Total assets 2,262,759 2,195,043 67,716
Current liabilities^1^ 186,708 173,983 12,725
Debt:
Credit facility 73,794 - 73,794
Senior secured notes 670,990 706,741 (35,751 )
Equipment-related financings 86,571 90,467 (3,896 )
Cariboo consideration payable 105,866 129,421 (23,555 )
Florence royalty obligation 88,586 84,383 4,203
Florence copper stream 86,444 67,813 18,631
Deferred revenue 81,366 77,327 4,039
Other liabilities 322,499 361,686 (39,187 )
Total liabilities 1,702,824 1,691,821 11,003
Equity 559,935 503,222 56,713
Net debt* (debt minus cash and equivalents) 709,367 624,476 84,891
Total common shares outstanding (millions) 316.5 304.7 11.8

1 Excludes current portion of long-term debt.

The Company's asset base is principally comprised of property, plant and equipment reflecting the capital-intensive nature of its large scale, open pit mining operation at Gibraltar and the commercial SX/EW facility at Florence.  Other current assets primarily include accounts receivable, inventories (concentrate inventories, ore stockpiles, and supplies), prepaid expenses, and marketable securities.  Concentrate inventories, accounts receivable and cash balances can fluctuate due to the timing of sales and cash settlements.

Property, plant and equipment increased $184.1 million for the six months ended June 30, 2025, which includes Florence Copper construction costs of $152.2 million (capital project costs of $138.0 million and site costs of $14.2 million) and Gibraltar capital expenditures of $109.4 million (capitalized stripping costs of $79.1 million and other capital expenditures of $30.3 million).

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

Net debt increased $84.9 million for the six months ended June 30, 2025 primarily due to increased borrowings against the Company's revolving credit facility and decreases in cash and equivalents as the Company continues its funding of the construction of the Florence Copper commercial facility, offset by the effect of a weaker US dollar and the foreign exchange impact on US dollar-denominated borrowings and repayments of the Company's equipment financings during the quarter.

Cariboo consideration payable relates to earn-out payments on the acquisition of Cariboo.  Cariboo consideration payable decreased by $23.6 million primarily due to payments made to Sojitz of $16.6 million in the period.

Florence royalty obligation increased by $4.2 million due to fair value changes as a result of increased copper prices applied over the term of the obligation.  The liability recorded for the Florence copper stream increased by $18.6 million primarily due to the receipt of the final US$10.0 million instalment on the Mitsui copper stream.

Deferred revenue relates to the advance payments received from OR Royalties Inc. (formerly Osisko Gold Royalties Inc.) for the sale of future silver production from Gibraltar and customer advance payments on copper concentrate.

Other liabilities decreased by $39.2 million primarily due to changes in deferred tax liabilities.

At August 6, 2025, there were 316,764,113 common shares and 10,208,435 stock options outstanding.  More information on these instruments and the terms of their exercise can be found in the Financial Statements-Notes 17 and 19.

Liquidity, cash flow and capital resources

At June 30, 2025, the Company had cash and equivalents of $122.0 million (December 31, 2024 - $172.7 million) and available liquidity of $197.0 million (December 31, 2024 - $331.0 million).

Cash flows provided by operations was $26.0 million for the second quarter compared to $34.7 million for the comparative prior year quarter, and $81.8 million for the six months ended June 30, 2025 compared to $94.3 million for the comparative prior year period.  The decrease in cash flows provided by operations was primarily due to decreased sales volumes partially offset by a stronger copper price.  Operating cash flows also benefited from the release of stockpile inventories in the quarter, the costs for which were incurred in prior periods.

Cash flows used for investing activities were $127.3 million for the second quarter compared to $80.8 million for the comparative prior year quarter.  Investing activities include $46.9 million in capital expenditures at Gibraltar (capitalized stripping of $30.8 million and other capital expenditures of $16.1 million) and $79.1 million in capital expenditures at Florence Copper including $6.5 million in capitalized site costs.

Cash flows used for investing activities were $258.3 million for the six months ended June 30, 2025 compared to $127.5 million for the comparative prior year period.  Investing activities include $98.6 million in capital expenditures at Gibraltar (capitalized stripping of $68.9 million and other capital expenditures of $29.7 million) and $159.0 million in capital expenditures at Florence Copper including $14.2 million in capitalized site costs.

Cash flows provided by financing activities were $104.8 million for the second quarter compared to $87.0 million for the comparative prior year quarter.  Financing activities include $71.8 million in net proceeds the Company received from the Province of BC upon closing of the Teẑtan Biny Agreement and $76.1 million (US$55.0 million) advanced against the Company's revolving credit facility, offset by $32.6 million in interest payments including the May 2025 interest payment against the Company's 8.25% senior secured debt, $5.1 million in net repayments against the Company's equipment debt, and $6.6 million in payment to Sojitz related to the acquisition of Cariboo.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

Cash flows provided by financing activities were $126.3 million for the six months ended June 30, 2025 compared to $135.5 million for the comparative prior year period.  Financing activities include $71.8 million in net proceeds the Company received from the Province of BC upon closing of the Teẑtan Biny Agreement, $76.1 million (US$55.0 million) advanced against the Company's revolving credit facility, $29.6 million (US$21.1 million) in net proceeds from shares issued under the Company's ATM equity offering and $14.4 million (US$10.0 million) from the final instalment of the US$50 million Mitsui copper stream, offset by $35.6 million in interest payments, $15.3 million in net repayments against the Company's equipment debt, and $16.6 million in payments to Sojitz related to the acquisition of Cariboo.

Liquidity outlook

At June 30, 2025, the Company had approximately $197.0 million (December 31, 2024 - $331.0 million) of available liquidity including $122.0 million in cash and equivalents and US$55 million undrawn capacity on its corporate revolving credit facility.  A total of US$55.0 million has been advanced under the Company's revolving credit facility and is currently outstanding.  In June 2025, Taseko, the Tŝilhqot'in Nation and Province of BC entered into the Teẑtan Biny Agreement and the Company received a $75 million payment from the Province of BC upon closing of the agreement out of which it paid $3 million and committed another $1 million a year for the next three years to the Tŝilhqot'in Nation to support community and land use planning initiatives.

The Company expects copper production levels to return to more typical levels in the quarters ahead as the current pushback in the Connector pit advances and access to the Connector ore body is established.  Mining has begun to expose the higher grade ore zones of the Connector pit, and copper production is expected to increase in the second half of 2025 over the first half driven by significant increases in head grades and metallurgical recoveries.  Molybdenum production is also expected to increase due to higher expected molybdenum grades in Connector pit ore and with more steady operation of the molybdenum plant.

Gibraltar has completed refurbishment of its SX/EW plant and has been producing copper cathode to supplement copper production from its concentrator mills.  Gibraltar has no other significant capital projects planned for the remainder of 2025.

Construction of the Florence Copper commercial production facility is over 90% complete with first cathode production expected before the end of 2025.  Florence Copper will supply domestically produced copper cathode to the US market.  The Company intends to finance the remaining capital costs over the next 12 months from available liquidity, cash flows from Gibraltar and its corporate revolving credit facility.

If needed, the Company could raise further additional capital through equity financings or asset sales, including royalties, sales of project interests, or joint ventures, or additional credit facilities, including additional notes offerings or increasing borrowings from commercial banks or credit funds.  The Company evaluates these financing alternatives based on a number of factors, including the prevailing metal prices and projected operating cash flows from Gibraltar, relative valuation, liquidity requirements, covenant restrictions and other factors, in order to optimize the Company's cost of capital and maximize shareholder value.

Future changes in copper and molybdenum market prices could also impact the timing and amount of cash available for future investment in the Company's capital commitments and development projects, debt obligations and other uses of capital.  To mitigate commodity price risks in the short term, copper price options are entered into for a substantial portion of Gibraltar's copper production and the Company has a long track history of doing so.  The Company currently has copper price protection in place for 54 million pounds of production for the remainder of the year.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

Hedging strategy

The Company generally fixes all or substantially all of the copper prices of its copper concentrate shipments at the time of shipment.  Where the customer's offtake contract does not provide a price fixing option, the Company may look to undertake a quotational period hedge directly with a financial institution as the counterparty in order to fix the price of the shipment.

To protect against sudden and unexpected copper price volatility in the market, the Company's hedging strategy aims to secure a minimum price for a significant portion of future copper production using copper put options that are either purchased outright or substantially funded by the sale of copper call options that are out of the money.  The amount and duration of the copper hedge positions is based on an assessment of business-specific risk elements combined with the copper pricing outlook.  Copper price and quantity exposure are reviewed regularly to ensure that adequate revenue protection is in place.

Hedge positions are typically extended by adding incremental quarters at established floor prices (the strike price of the copper put option) to provide the necessary price protection.  Considerations for the cost of the hedging program include an assessment of Gibraltar's estimated production costs, copper price trends and the Company's fixed capital requirements during the relevant period.  During periods of volatility or step changes in the copper price, the Company may revisit outstanding hedging contracts and determine whether copper put (floor) or call (ceiling) levels should be adjusted in line with the market while maintaining copper price protection.

From time to time, the Company will look at potential hedging opportunities that mitigate the risk of rising input costs, including foreign exchange and fuel prices, where such a strategy is cost effective.  To protect against a potential operating margin squeeze that could arise from oil and diesel price shocks, the Company purchases fuel call options to provide a price ceiling for diesel that is used by the mining fleet.

A summary of the Company's outstanding hedge positions is as follows:

**** Notional amount Strike price Term to maturity Original cost
At June 30, 2025 **** ****
Copper collars 54 million lbs Floor - US$4.00 per lb<br>Ceiling - US$5.40 per lb H2 2025 $2.2 million
TASEKO MINES LIMITED<br>Management's Discussion and Analysis
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Commitments and contingencies

Payments due
(Cdn$ in thousands) Remainderof 2025 2026 2027 2028 2029 Thereafter Total
Debt
2030 Notes - - - - - 682,150 682,150
Interest 28,139 56,277 56,277 56,277 56,277 28,139 281,386
Credit facility^1^ - - 75,037 - - - 75,037
Equipment loans
Principal 12,718 27,143 14,401 11,841 1,004 440 67,547
Interest 2,644 3,581 1,700 587 71 8 8,591
Lease liabilities
Principal 508 562 366 384 242 49 2,111
Interest 55 72 48 28 9 1 213
Cariboo acquisition payments
Sojitz^2^ - 10,000 10,000 10,000 - - 30,000
Dowa and Furukawa^3^ - 10,000 10,000 10,000 10,000 72,000 112,000
PER^4^ - - - - - 165,211 165,211
Capital expenditures 19,130 - - - - - 19,130
Other expenditures:
Transportation-related services^5^ 8,141 11,491 1,671 - - - 21,303

1 The Company has in place a secured US$110 million corporate revolving credit facility with a maturity date of November 2027.  Advances under the facility bear interest at the Secured Overnight Financing Rate ("SOFR") plus an applicable margin.  At June 30, 2025, the Company has US$55.0 million advanced and outstanding against its corporate revolving credit facility.

2 On March 15, 2023, the Company completed the acquisition of 50% of Cariboo from Sojitz.  The acquisition price payable to Sojitz is a minimum of $60 million payable over a 5-year period and potential contingent payments depending on Gibraltar copper revenue and copper prices.  $30 million of the $60 million minimum amount has been paid to Sojitz as of June 30, 2025.  The remaining minimum amounts will be paid in $10 million annual instalments over the next 3 years.  There is no interest payable on the minimum amounts.  The Company also estimates $35.3 million payable over the next 3 years related to the contingent consideration, which has not been included in the table above.

3 On March 25, 2024, the Company completed the acquisition of the remaining 50% of Cariboo from Dowa and Furukawa.  The acquisition price payable to Dowa and Furukawa is a minimum of $117 million and a maximum of $142 million payable over a 10-year period.  The quantum and timing of these payments depends on copper prices and Gibraltar cash flow.  An initial payment of $5 million was paid to Dowa and Furukawa on closing, with remaining consideration payable in annual instalments starting in April 2026.

4 Provisional for environmental rehabilitation amounts presented represent the present value of estimated costs of legal and constructive obligations required to retire an asset, including decommissioning and other site restoration activities, primarily for Gibraltar and Florence Copper.  At June 30, 2025, the Company has provided surety bonds for $124.2 million for Gibraltar's reclamation security and US$36.1 million for Florence Copper's reclamation security.

5 Transportation-related services include ocean freight and port handling services, which are both cancelable upon certain operating circumstances.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

Concurrent with the execution of the Teẑtan Biny Agreement, the Company also agreed to contribute $6 million to the Tŝilhqot'in Nation to support community and land use planning initiatives, comprised of a $3 million payment at closing and three annual instalments of $1 million.

At June 30, 2025, the Company has made capital expenditure commitments relating to the Florence Copper commercial facility construction project totaling $10.8 million (December 31, 2024 - $47.9 million).

In December 2024, Gibraltar received an amendment to its M-40 permit in which the required closure bonding from the Province of BC was increased from $108.5 million to $139.9 million.  Gibraltar was required to post this additional bonding over a 15-month period.  In March 2025, Gibraltar posted surety bonds of $15.7 million to the Province of BC, and in July 2025 Gibraltar posted additional surety bonding of $1.0 million to the Province of BC.  The Company intends to post additional surety bonds to meet the remaining bonding requirements from insurance underwriters.

Summary of Quarterly Results

(Cdn$ in thousands,<br>except per share amounts) 2025 2024 2023
Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3
Revenues 116,082 139,149 167,799 155,617 137,730 146,947 153,694 143,835
Net income (loss) 21,868 (25,814 ) (21,207 ) (180 ) (10,953 ) 18,896 38,076 871
Basic EPS 0.07 (0.08 ) (0.07 ) - (0.04 ) 0.07 0.13 -
Adjusted net (loss) income* (13,025 ) (7,117 ) 10,468 8,228 30,503 7,728 24,061 19,659
Adjusted basic EPS (0.04 ) (0.02 ) 0.03 0.03 0.10 0.03 0.08 0.07
Adjusted EBITDA 17,432 34,250 55,602 47,689 70,777 49,923 69,107 62,695
Copper sales<br>(million pounds) 19.0 21.8 27.4 26.3 22.6 27.7 31.4 28.1
Realized copper price<br>(US$ per pound) 4.32 4.24 4.13 4.23 4.49 3.89 3.75 3.83
Total operating costs*<br>(US$ per pound) 3.14 2.26 2.42 2.92 2.99 2.46 1.91 2.20

Financial results for the last eight quarters reflect: volatile copper and molybdenum prices and foreign exchange rates that impacted realized sales prices; and, the variability in the quarterly sales volumes due to copper grades and timing of shipments which impacts revenue recognition.

Critical Accounting Policies and Estimates

The Company's material accounting policies are presented in Note 2.4 of the 2024 annual consolidated financial statements.  The preparation of the financial statements in conformity with IFRS Accounting Standards requires management to make judgments, estimates and assumptions that affect the application of accounting policies, including the accounting for the Cariboo acquisition, and the reported amounts of assets, liabilities, income and expenses.  Actual results may differ from these estimates.  Estimates and underlying assumptions are reviewed on an ongoing basis.  Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

In the process of applying the Company's accounting policies, significant areas where judgment is required include the determination of a joint arrangement, the determination of the timing of transfer of control of inventory for revenue recognition, provisions for environmental rehabilitation, reserve and resource estimation, functional currency, the determination of the accounting treatment for the advance payment under the silver purchase and sale agreement reported as deferred revenue, and recovery of other deferred tax assets.

Significant areas of estimation include reserve and resource estimation, fair value of assets and liabilities acquired in a business combination, asset valuations and the measurement of impairment charges or reversals, valuation of inventories, plant and equipment lives, tax provisions, provisions for environmental rehabilitation, valuation of financial instruments and derivatives, capitalized stripping costs and share-based compensation.  Key estimates and assumptions made by management with respect to these areas have been disclosed in the notes to the Financial Statements.

The accuracy of reserve and resource estimates is a function of the quantity and quality of available data and the assumptions made and judgment used in the engineering and geological interpretation, and may be subject to revisions based on various factors.  Changes in reserve and resource estimates may impact the carrying value of property, plant and equipment, the calculation of deprecation expense, the capitalization of stripping costs incurred during production, and the timing of cash flows related to the provision for environmental rehabilitation.

Changes in forecast prices of commodities, exchange rates, production costs and recovery rates may change the economic status of reserve and resources.  Forecast prices of commodities, exchange rates, production costs and recovery rates, and discount rates assumptions, either individually or collectively, may impact the carrying value of derivative financial instruments, inventories, property, plant and equipment, and intangibles, as well as the measurement of impairment charges or reversals.  These factors also impacted the fair values of assets and liabilities recorded on the acquisition of Cariboo disclosed in the Financial Statements-Notes 12 and 14.

There were no changes in accounting policies during the three and six months ended June 30, 2025.

Internal and Disclosure Controls Over Financial Reporting

The Company's management is responsible for establishing and maintaining adequate internal controls over financial reporting ("ICFR") and disclosure controls and procedures ("DC&P").

The Company's internal control system over financial reporting is designed to provide reasonable assurance to management and the Board of Directors regarding the preparation and fair presentation of published financial statements.  Internal controls over financial reporting includes those policies and procedures that:

(1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of assets of the Company;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with IFRS Accounting Standards, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and,

(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the financial statements.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

The Company's internal control system over disclosure controls and procedures is designed to provide reasonable assurance that material information relating to the Company is made known to management and disclosed to others and information required to be disclosed by the Company in its annual filings, interim filings or other reports filed or submitted by us under securities legislation is recorded, processed, summarized and reported within the time periods specified in the securities legislation.

All internal control systems, no matter how well designed, have inherent limitations.  Therefore, even those systems determined effective can provide only reasonable assurance with respect to financial reporting and disclosure.

There have been no changes in our internal control over financial reporting and disclosure controls and procedures during the three and six months ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting and disclosure.

Key Management Personnel

Key management personnel ("KMP") include the members of the Board of Directors and executive officers of the Company.

The Company contributes to a post-employment defined contribution pension plan on behalf of certain KMP.  This retirement compensation arrangement (the "RCA Trust") was established to provide benefits to certain executive officers on or after retirement in recognition of their long service.  Upon retirement, the participant is entitled to the distribution of the accumulated value of the contributions under the RCA Trust.  Obligations for contributions to the defined contribution pension plan are recognized as compensation expense in the periods during which services are rendered by the executive officers.

Certain executive officers are entitled to termination and change in control benefits.  In the event of termination without cause, other than a change in control, these executive officers are entitled to an amount ranging from 12-months' to 18-months' salary.  In the event of a change in control, if a termination without cause or a resignation occurs within 12 months following the change in control, these executive officers are entitled to receive, among other things, an amount ranging from 12-months' to 24-months' salary and accrued bonus, and all stock options held by these individuals will fully vest.

Executive officers and directors also participate in the Company's share option program (refer to the Financial Statements-Note 19).

Compensation for KMP (including all members of the Board of Directors and executive officers) is as follows:

**** Three months ended<br>June 30, Six months ended<br>June 30,
(Cdn$ in thousands) 2025 2024 2025 2024
Salaries and benefits 1,122 713 4,235 3,308
Post-employment benefits 220 220 440 440
Share-based compensation 4,274 2,185 8,274 7,046
Total KMP compensation 5,616 3,118 12,949 10,794
TASEKO MINES LIMITED<br>Management's Discussion and Analysis
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Non-GAAP Performance Measures

This MD&A includes certain non-GAAP performance measures that do not have a standardized meaning prescribed by IFRS Accounting Standards.  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 Accounting Standards measures, to enhance 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 Accounting Standards measures.

Total operating cost and site operating cost, net of by-product credit

Total operating cost includes all costs absorbed into inventory, as well as transportation costs and insurance recoverable.  Site operating cost is calculated by removing net changes in inventory, depletion and amortization, insurance recoverable, and transportation costs from cost of sales.  Site operating cost, net of by-product credit is calculated by subtracting by-product credits from site operating cost.  Site operating cost, net of by-product credit per pound is calculated by dividing the aggregate of the applicable costs by pounds of copper produced.  Total operating cost per pound is the sum of site operating costs, net of by-product credits and off-property costs divided by pounds of copper produced.  By-product credit is calculated based on actual sales of molybdenum (net of treating 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.

(Cdn$ in thousands, unless otherwise indicated) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024
Cost of sales 120,592 122,783 134,940 124,883 108,637
Less:
Depletion and amortization (25,210 (22,425 (24,641 (20,466 (13,721
Net change in inventories of finished goods 2,123 (2,710 4,064 2,938 (10,462
Net change in inventories of ore stockpiles (5,718 (22,747 (3,698 9,089 1,758
Transportation costs (5,720 (5,984 (10,170 (8,682 (6,408
Site operating cost 86,067 68,917 100,495 107,712 79,804
Less by-product credits:
Molybdenum, net of treatment costs (4,814 (8,774 (16,507 (8,962 (7,071
Silver, excluding amortization of deferred revenue (58 (131 (139 (241 (144
Gold, net of refining costs (350 (389 - - -
Site operating cost, net of by-product credit 80,845 59,623 83,849 98,509 72,589
Total pounds of copper produced (thousand pounds) 19,813 19,959 28,595 27,101 20,225
Total costs per pound produced 4.08 2.99 2.94 3.63 3.59
Average exchange rate for the period (Cdn$ / US$) 1.38 1.44 1.40 1.36 1.37
Site operating cost, net of by-product credits (US$ per pound) 2.96 2.08 2.10 2.66 2.62
Site operating cost, net of by-product credit 80,845 59,623 83,849 98,509 72,589
Add off-property costs:
Treatment and refining costs (837 (510 2,435 816 3,941
Transportation costs 5,720 5,984 10,170 8,682 6,408
Total operating cost 85,728 65,097 96,454 108,007 82,938
Total operating cost (C1) (US$ per pound) 3.14 2.26 2.42 2.92 2.99

All values are in US Dollars.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

Total site costs

Total site costs include site operating costs charged to cost of sales and mining costs capitalized to property, plant and equipment in the period.  This measure is intended to capture total site operating costs incurred during the period calculated on a consistent basis for the periods presented.

(Cdn$ in thousands) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024
Site operating costs 86,067 68,917 100,495 107,712 79,804
Capitalized stripping costs 30,765 38,082 1,981 3,631 10,732
Total site costs - 100% basis 116,832 106,999 102,476 111,343 90,536

Adjusted net income (loss) and Adjusted EPS

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

• Unrealized foreign currency gains and losses;

• Unrealized derivative gains and losses;

• Other operating costs;

• Call premium on settlement of debt;

• Loss on settlement of debt, net of capitalized interest;

• Bargain purchase gains on Cariboo acquisition;

• Gain on acquisition of control of Gibraltar;

• Realized gain on sale of finished goods inventory;

• Inventory write-ups to fair value that was sold or processed;

• Accretion on Florence royalty obligations;

• Accretion on Cariboo consideration payable;

• Tax effect of sale of non-recurring interest; and

• Non-recurring other expenses for Cariboo adjustment.

Management believes these transactions do not reflect the underlying operating performance of the Company's core mining business and are not necessarily indicative of future operating results.  Furthermore, unrealized gains and losses on derivative instruments, changes in the fair value of financial instruments, and unrealized foreign currency gains and losses are not necessarily reflective of the underlying operating results for the periods presented.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

Adjusted earnings per share ("Adjusted EPS") is Adjusted net income attributable to common shareholders of the Company divided by the weighted average number of common shares outstanding for the period.

(Cdn$ in thousands) Q2 2025 Q1 2025 Q4 2024 Q3 2024
Net income (loss) 21,868 (28,560 ) (21,207 (180
Unrealized foreign exchange (gain) loss (40,335 ) 2,074 40,462 (7,259
Unrealized derivative loss (gain) and fair value adjustments 9,489 23,536 (25,514 1,821
Other operating costs^1^ - - 4,132 4,098
Inventory write-ups to fair value that was sold or processed^2^ - - 1,905 3,266
Accretion on Florence royalty obligation 6,201 2,571 3,682 3,703
Accretion on Cariboo consideration payable 4,484 664 4,543 9,423
Tax effect of sale of non-controlling interest in New Prosperity (9,285 ) - - -
Estimated tax effect of adjustments (5,447 ) (7,228 ) 2,465 (6,644
Adjusted net (loss) income (13,025 ) (6,943 ) 10,468 8,228
Adjusted EPS $   (0.04 ) $   (0.02 ) 0.03 0.03

All values are in US Dollars.

1 Other operating costs relate to the in-pit crusher relocation project and care and maintenance costs due to the June 2024 labour strike.

2 Inventory write-ups to net realizable value that was sold or processed relates to stockpile inventories that were written-up to fair value as part of the acquisition of control of Gibraltar.  These write-ups have been included in Adjusted net (loss) income in the period when the inventories were sold or processed.

(Cdn$ in thousands) Q2 2024 Q1 2024 Q4 2023 Q3 2023
Net (loss) income (10,953 18,896 38,076 871
Unrealized foreign exchange loss (gain) 5,408 13,688 (14,541 14,582
Unrealized derivative loss and fair value adjustment 10,033 3,519 1,636 4,518
Other operating costs^1^ 10,435 - - -
Call premium on settlement of debt 9,571 - - -
Loss on settlement of debt, net of capitalized interest 2,904 - - -
Gain on Cariboo acquisition - (47,426 - -
Gain on acquisition of control of Gibraltar^2^ - (14,982 - -
Realized gain on sale of inventory^3^ 3,768 13,354 - -
Inventory write-ups to fair value that was sold or processed^4^ 4,056 - - -
Accretion on Florence royalty obligation 2,132 3,416 - -
Accretion on Cariboo consideration payable 8,399 1,555 - -
Non-recurring other expenses for Cariboo adjustment 394 138 (916 1,244
Estimated tax effect of adjustments (15,644 15,570 (194 (1,556
Adjusted net income 30,503 7,728 24,061 19,659
Adjusted EPS 0.10 0.03 0.08 0.07

All values are in US Dollars.

1 Other operating costs relate to the in-pit crusher relocation project and care and maintenance costs due to the June 2024 labour strike.

2 Gain on acquisition of control of Gibraltar relates to the write-up of copper concentrate inventory to fair value for Taseko's 87.5% interest in Gibraltar at March 25, 2024.

3 Realized gain on sale of inventory relates to copper concentrate inventory held at March 25, 2024 that was written-up to fair value as part of the acquisition of control of Gibraltar, and subsequently sold.  The realized portion of these gains have been added back to Adjusted net income in the period the inventory was sold.

4 Inventory write-ups to fair value that was sold or processed relates to stockpile inventories that were written-up to fair value as part of the acquisition of control of Gibraltar.  These write-ups have been included in Adjusted net income in the period the inventories were sold or processed.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis

Adjusted EBITDA

Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is presented as a supplemental measure of the Company's performance and ability to service debt.  Adjusted EBITDA is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the industry, many of which present adjusted EBITDA when reporting their results.  Issuers of "high yield" securities also present adjusted EBITDA because investors, analysts and rating agencies considering it useful in measuring the ability of those issuers to meet debt service obligations.

Adjusted EBITDA represents net income before interest, income taxes, depreciation and amortization, and also eliminates the impact of a number of transactions that are not considered indicative of ongoing operating performance.  Certain items of expense are added back and certain items of income are deducted from net income that are not likely to recur or are not indicative of the Company's underlying operating results for the reporting periods presented or for future operating performance and consist of:

• Unrealized foreign exchange gains and losses;

• Unrealized derivative gains and losses;

• Amortization of share-based compensation expense;

• Other operating costs;

• Call premium on settlement of debt;

• Loss on settlement of debt;

• Bargain purchase gains on Cariboo acquisition;

• Gain on acquisition of control of Gibraltar;

• Realized gains on sale of finished goods inventory;

• Inventory write-ups to net realizable value that was sold or processed; and

• Non-recurring other expenses for Cariboo acquisition.

(Cdn$ in thousands) Q2 2025 Q1 2025 Q4 2024 Q3 2024
Net income (loss) 21,868 (25,814 ) (21,207 ) (180 )
Depletion and amortization 25,210 22,458 24,641 20,466
Finance and accretion expenses 23,943 15,567 21,473 25,685
Finance income (124 ) (1,330 ) (1,674 ) (1,504 )
Income tax (recovery) expense (27,439 ) (6,900 ) 11,707 (200 )
Unrealized foreign exchange (gain) loss (40,335 ) 2,074 40,462 (7,259 )
Unrealized derivative loss (gain) and fair value adjustments 9,489 22,846 (25,514 ) 1,821
Share-based compensation expense (recovery) 4,820 5,349 (323 ) 1,496
Other operating costs - - 4,132 4,098
Inventory write-ups to fair value that was sold or processed^1^ - - 1,905 3,266
Adjusted EBITDA 17,432 34,250 55,602 47,689

1 Inventory write-ups to fair value that was sold or processed relates to stockpile inventories that were written-up to fair value as part of the acquisition of control of Gibraltar.  These write-ups have been included in Adjusted EBITDA in the period when the inventories were processed.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis
(Cdn$ in thousands) Q2 2024 Q1 2024 Q4 2023 Q3 2023
--- --- --- --- --- --- --- --- ---
Net (loss) income (10,953 ) 18,896 38,076 871
Depletion and amortization 13,721 15,024 13,326 15,993
Finance and accretion expense 21,271 19,849 12,804 14,285
Finance income (911 ) (1,086 ) (972 ) (322 )
Income tax (recovery) expense (3,247 ) 23,282 17,205 12,041
Unrealized foreign exchange loss (gain) 5,408 13,688 (14,541 ) 14,582
Unrealized derivative loss 10,033 3,519 1,636 4,518
Share-based compensation expense 2,585 5,667 1,573 727
Other operating costs 10,435 - - -
Call premium on settlement of debt 9,571 - - -
Loss on settlement of debt 4,646 - - -
Gain on Cariboo acquisition - (47,426 ) - -
Gain on acquisition of control of Gibraltar^1^ - (14,982 ) - -
Realized gain on sale of inventory^2^ 3,768 13,354 - -
Inventory write-ups to fair value that was sold or processed^3^ 4,056 - - -
Non-recurring other expenses for Cariboo acquisition 394 138 - -
Adjusted EBITDA 70,777 49,923 69,107 62,695

1 Gain on acquisition of control of Gibraltar relates to the write-up of copper concentrate inventories to fair value for Taseko's 87.5% interest in Gibraltar at March 25, 2024.

2 Realized gain on sale of inventory relates to copper concentrate inventories held at March 25, 2024 that was written-up to fair value as part of the acquisition of control of Gibraltar, and subsequently sold.  The realized portion of these gains have been added back to Adjusted EBITDA in the period the inventory was sold.

3 Inventory write-ups to fair value that was sold or processed relates to stockpile inventories that were written-up to fair value as part of the acquisition of control of Gibraltar.  These write-ups have been included in Adjusted EBITDA in the period when the inventories were processed.

Earnings from mining operations before depletion, amortization and non-recurring items

Earnings from mining operations before depletion, amortization and non-recurring items is earnings from mining operations with depletion and amortization, and any items that are not considered indicative of ongoing operating performance added back.  The Company discloses this measure, which has been derived from the Company's financial statements and applied on a consistent basis, to assist in understanding the results of the Company's operations and financial position, and it is meant to provide further information about the financial results to investors.

TASEKO MINES LIMITED<br>Management's Discussion and Analysis
**** Three months ended<br>June 30, Six months ended<br>June 30,
--- --- --- --- --- --- ---
(Cdn$ in thousands) 2025 2024 2025 2024
(Loss) earnings from mining operations (502 ) 44,948 15,864 69,367
Add:
Depletion and amortization 25,210 13,721 47,635 28,745
Realized gain on sale of inventory^1^ - 4,633 - 17,987
Realized gain on processing of ore stockpiles^2^ - 3,191 - 3,191
Other operating (income) costs (4,008 ) 10,435 (4,008 ) 10,435
Earnings from mining operations before depletion, amortization and non-recurring items 20,700 76,928 59,491 129,725

1 Realized gain on sale of inventory relates to copper concentrate inventories held at March 25, 2024 that was written-up to fair value as part of the acquisition of control of Gibraltar, and subsequently sold.  The realized portion of these gains have been added back to earnings from mining operations in the period the inventory was sold.

2 Realized gain on processing of ore stockpiles relates to stockpile inventories held at March 25, 2024 that was written-up to fair value as part of the acquisition of control of Gibraltar, and subsequently processed.  These write-ups have been added back to earnings from mining operations in the period the inventories were processed.

Site operating costs per ton milled

The Company discloses this measure, which has been derived from the Company's financial statements and applied on a consistent basis, to provide assistance in understanding the Company's site operations on a tons milled basis.

(Cdn$ in thousands) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024
Site operating costs (included in cost of sales) 86,067 68,917 100,495 107,712 79,804
Tons milled (thousands) 7,663 7,898 8,250 7,572 5,728
Site operating costs per ton milled $  11.23 $   8.73 $ 12.18 $ 14.23 $ 13.93
TASEKO MINES LIMITED<br>Management's Discussion and Analysis
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Technical Information

The technical information contained in this MD&A related to Florence Copper is based on the report titled "NI 43-101 Technical Report - Florence Copper Project, Pinal County, Arizona" issued on March 30, 2023 with an effective date of March 15, 2023, which is available on SEDAR+.  The Florence 2023 Technical Report was prepared under the supervision of Richard Tremblay, P. Eng., MBA, Richard Weymark, P. Eng., MBA, and Robert Rotzinger, P. Eng.  Mr. Tremblay is employed by the Company as Chief Operating Officer, Mr. Weymark is employed by the Company as Vice President, Engineering, and Mr. Rotzinger is employed by the Company as Vice President, Capital Projects.  All three are Qualified Persons as defined by NI 43-101.

The technical information contained in this MD&A related to Yellowhead is based on the report titled "Technical Report Update on the Yellowhead Copper Project, British Columbia, Canada" issued on July 10, 2025 with an effective date of June 15, 2025, which is available on SEDAR+.  The Yellowhead 2025 Technical Report was prepared under the supervision of Richard Weymark, P. Eng., MBA.  Mr. Weymark is employed by the Company as Vice President, Engineering and is a Qualified Person as defined by NI 43-101.

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