October 27, 2016

This release should be read with the Company's Financial Statements and Management Discussion & Analysis ("MD&A"), available at www.tasekomines.com and filed on www.sedar.com. Except where otherwise noted, all currency amounts are stated in Canadian dollars. Taseko's 75% owned Gibraltar Mine is located north of the City of Williams Lake in south-central British Columbia. Production volumes stated in this release are on a 100% basis unless otherwise indicated.

VANCOUVER, Oct. 27, 2016 /PRNewswire/ - Taseko Mines Limited (TSX: TKO; NYSE MKT: TGB) ("Taseko" or the "Company") reports the results for the three months ended September 30, 2016.

Third Quarter 2016 Highlights

• Adjusted EBITDA* increased by $16.9 million to $9.3 million in the third quarter and earnings from mining operations before depletion and amortization* increased by $14.7 million to $11.6 million, as compared to the second quarter of 2016;

• Taseko had a net loss of $15.6 million or $0.07 per share, as compared to a net loss of $19.4 million or $0.09 per share in the second quarter of 2016;

• Site operating costs, net of by-product credits* were US$1.58 per pound produced and total operating costs (C1)* were US$1.89 per pound produced, both a significant improvement over the previous quarter's costs of US$1.74 and US$2.07, respectively;

• Site operating cost per ton milled* was CAD$9.47, an improvement over the second quarter of 2016 result of CAD$9.67;

• Copper production at Gibraltar was 33.1 million pounds (100% basis), which is an 8% increase over the second quarter of 2016;

• In September, Gibraltar's molybdenum circuit was restarted and the facility produced 185,000 pounds of molybdenum for the month; and

• During the quarter, the Company has acquired copper put options for a total of 20 million pounds with maturities between October 2016 and January 2017 at a strike price of US$2.10 per pound.

Russell Hallbauer, President and CEO of Taseko commented, "Copper production in the quarter increased by 8% over the previous quarter as a result of improved throughput, recoveries and copper grade. Gibraltar operated well in the quarter and, due to high productivities with the mining fleet, we began accessing higher grade ore earlier than originally anticipated. As per our previous guidance, we are now into a long stretch of above average copper grades which will benefit Gibraltar's cost structure and operating margins. With the higher head grades, which we started accessing in September and are expected to last well into 2017, copper production and cash flows are anticipated to improve significantly over the next year. Recoveries for the quarter also increased, a result of higher grade ore as well as a continued focus on the grinding and flotation circuits. We expect further recovery improvements over the coming quarters."

Mr. Hallbauer continued, "Also contributing to Gibraltar's operating margin is the restart of the molybdenum facility, which was idled in mid-2015 due to low molybdenum pricing. Prior to the restart, a number of modifications were made to the molybdenum plant as well as to operating procedures, which are paying dividends already. Even though the facility was just re-commissioned eight weeks ago, it is operating extremely well. In October, molybdenum recoveries have averaged above 50% and the facility has produced 190,000 pounds month-to-date. Additionally, often overlooked is Gibraltar's silver production, which at roughly 250,000 ounces annually is an important component of our overall metal stream. Silver production, along with our improving molybdenum production, provides a significant by-product credit."

"We also have a number of exploration and development initiatives underway. At Gibraltar, we just commenced a 6-hole drill program to better define the copper-gold-silver zone discovery that we recently announced. We do not believe drilling to-date has uncovered the high-grade core of the deposit, so we are excited to complete the next round of drilling. Also, we recently filed a Notice of Work (NOW) at New Prosperity. The main activities to be performed under the NOW are geotechnical drilling, test pitting and mechanical trenching designed to gather information and data which will be used for advancing mine permitting under the British Columbia Mines Act. This work is expected to commence in 2017. Finally, during the third quarter we received the Aquifer Protection Permit for the Phase 1 test facility at our Florence Copper Project. One remaining permit, the Underground Injection Control Permit from EPA, is required to move forward with the test facility. In addition to permitting work at Florence, the technical team has also been making significant progress optimizing the extraction process as well as metallurgical testing. We believe the new data will not only validate the data in the prefeasibility study completed in April 2013, but also improve the economics of the project. I look forward to announcing these results in the coming months," added Mr. Hallbauer.

HIGHLIGHTS