CONSOLIDATED FINANCIAL STATEMENTS

THREE AND NINE MONTHS ENDED JUNE 30, 2007

(Expressed in thousands of Canadian Dollars)
(Unaudited)

These financial statements have not been reviewed by the Company's auditors

TASEKO MINES LIMITED
Consolidated Balance Sheets
(Expressed in thousands of Canadian Dollars)

		June 30			September 30
		2007			2006
		(unaudited)
ASSETS
Current assets
Cash and equivalents	$	44,306		$	89,408
Accounts receivable		16,203			9,342
Investments (note 4)		16,375			11,500
Restricted cash (note 7)		4,400			–
Inventory (note 5)		12,744			24,218
Prepaid expenses		2,641			1,221
Current portion of future income taxes		–			11,601
Current portion of promissory note		1,238			2,157
		97,907			149,447
Deferred financing costs		–			1,382
Mineral properties, plant and equipment (note 6)		136,843			43,445
Reclamation deposits		32,653			32,004
Promissory note		72,128			71,009
Future income taxes		–			174
	$	339,531		$	297,461
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities	$	20,646		$	21,961
Current portion of deferred revenue		175			19,759
Current portion of royalty obligation		1,238			2,157
Income taxes		13,166			3,985
		35,225			47,862
Income taxes		22,523			21,058
Royalty obligation		63,825			64,632
Deferred revenue		1,094			1,225
Convertible debt		42,173			42,775
Site closure and reclamation costs		19,864			18,975
Future income taxes		5,591			–
		190,295			196,527
Shareholders' equity
Common shares		204,052			197,592
Equity component of convertible debt		13,655			13,655
Tracking preferred shares		26,642			26,642
Contributed surplus		7,430			3,648
Accumulated other comprehensive income		2,750			–
Deficit		(105,293	)		(140,603	)
		149,236			100,934
	$	339,531		$	297,461

See accompanying notes to consolidated financial statements.

Approved by the Board of Directors

/s/ Russell E. Hallbauer	/s/ Jeffrey R. Mason
Russell E. Hallbauer	Jeffrey R. Mason
Director	Director

TASEKO MINES LIMITED
Consolidated Statements of Operations and Comprehensive Income
(Unaudited - Expressed in thousands of Canadian Dollars, except for per share and share amounts)

		Three months ended June 30						Nine months ended June 30
		2007			2006			2007			2006
Revenue	$	55,907		$	59,921		$	164,428		$	138,703
Cost of sales		(26,113	)		(40,839	)		(87,251	)		(102,379	)
Depreciation, depletion and amortization		(1,374	)		(812	)		(2,488	)		(2,514	)
Operating profit		28,420			18,270			74,689			33,810
Expenses (income)
Accretion of reclamation obligation		339			433			1,016			1,299
Exploration		2,188			2,958			6,647			3,698
Foreign exchange loss (gain)		1,454			323			(523	)		(157	)
General and administration		1,333			2,456			5,550			4,958
Gain on sale of marketable securities (note 4(b))		–			–			(1,508	)		–
Interest and other income		(2,438	)		(1,579	)		(8,191	)		(4,752	)
Interest expense		883			2,311			3,167			4,436
Interest accretion on convertible debt		1,321			–			2,776			–
Stock-based compensation		1,865			1,685			4,954			2,451
Change in fair value of financial instruments		2,331			–			1,308			–
		9,276			8,587			15,196			11,933
Earnings before income taxes		19,144			9,683			59,493			21,877
Income tax expense		(5,020	)		(2	)		(9,290	)		(4,412	)
Future income tax recovery (expense)		(1,718	)		(5,601	)		(14,586	)		(3,601	)
Earnings for the period	$	12,406		$	4,080		$	35,617		$	13,864
Other comprehensive income
Unrealized loss on reclamation deposits		(675	)		–			(761	)		–
Unrealized gain (loss) on marketable securities (note 4)		(1,560	)		–			3,511			–
Other comprehensive income	$	(2,235	)	$	–		$	2,750		$	–
Total comprehensive income	$	10,171		$	4,080		$	38,367		$	13,864
See accompanying notes to consolidated financial statements.
Earnings per share
Basic	$	0.10		$	0.04		$	0.28		$	0.13
Diluted		0.09			0.03			0.25			0.12
Weighted average number of common shares outstanding (thousands)
Basic		129,371			115,047			128,784			110,403
Diluted		145,846			126,852			144,572			119,582

TASEKO MINES LIMITED
Consolidated Statements of Shareholders' Equity and Deficit
(Expressed in thousands of Canadian Dollars, except for share amounts)

	Nine months ended				Year ended
	June 30, 2007				September 30, 2006
	(unaudited)
Common shares	Number of shares				Number of shares
Balance at end of the period	128,388,175	$	197,592		103,457,316	$	160,830
Share purchase options at $0.55 per share	–		–		1,500,000		825
Share purchase options at $1.15 per share	321,333		370		451,833		520
Share purchase options at $1.29 per share	75,000		97		60,000		77
Share purchase options at $1.36 per share	–		–		1,970,000		2,679
Share purchase options at $1.40 per share	–		–		3,405,500		4,768
Share purchase options at $1.50 per share	–		–		10,000		15
Share purchase options at $2.07 per share	233,300		483		33,333		69
Share purchase options at $2.18 per share	190,500		415		7,500		16
Share purchase options at $2.63 per share	20,000		53		–		–
Share purchase options at $2.68 per share	7,500		20		–		–
Share purchase options at $3.03 per share	490,098		1,485		–		–
Share purchase options at $3.07 per share	15,000		46		–		–
Share purchase options at $3.48 per share	240,000		835		–		–
Share purchase options at $3.67 per share	404,632		1,485		–		–
Fair value of stock options allocated to shares issued on exercise	–		1,171		–		4,869
Share purchase warrants at $0.40 per share	–		–		375,000		150
Share purchase warrants at $0.75 per share	–		–		3,913,332		2,935
Share purchase warrants at $1.40 per share	–		–		8,000,000		11,200
Share purchase warrants at $1.66 per share	–		–		5,204,361		8,639
Balance at end of the period	130,385,538	$	204,052		128,388,175	$	197,592
Equity component of convertible debt
Balance at beginning of the period			13,655				9,823
Convertible bonds - August 2006			–				3,832
Balance at end of the period		$	13,655			$	13,655
Tracking preferred shares
Balance at beginning and end of the period		$	26,642			$	26,642
Contibuted surplus
Balance at beginning of the period			3,648				5,335
Stock-based compensation			4,954				3,182
Fair value of stock options allocated to shares issued on exercise			(1,172	)			(4,869	)
Balance at end of the period		$	7,430			$	3,648
Accumulated other comprehensive income
Unrealized gain (loss) on reclamation deposits			(761	)			–
Unrealized gains on available-for-sale marketable securities (note 4)			3,511				–
Balance at end of the period		$	2,750			$	–
Deficit
Balance at beginning of the period, as originally reported			(140,603	)			(173,519	)
Adjustment to opening deficit - change in accounting policy (note 3)			(307	)			–
Net earnings for the period			35,617				32,916
Balance at end of the period		$	(105,293	)		$	(140,603	)
TOTAL SHAREHOLDERS' EQUITY		$	149,236			$	100,934

See accompanying notes to consolidated financial statements.

TASEKO MINES LIMITED
Consolidated Statements of Cash Flows
(Unaudited - Expressed in thousands of Canadian Dollars)

		Three months ended June 30						Nine months ended June 30
		2007			2006			2007			2006
Operating activities
Net earnings for the period	$	12,406		$	4,080		$	35,617		$	13,864
Items not involving cash
Accretion of reclamation obligation		339			433			1,016			1,299
Depreciation, depletion and amortization		1,374			812			2,488			2,514
Interest accretion on convertible debt		1,321			295			2,776			886
Stock-based compensation		1,865			1,685			4,954			2,451
Future income taxes		4,499			5,601			17,366			3,601
Unrealized foreign exchange gain		(2,926	)		–			(1,995	)		–
Gain on sale of marketable securities		–			–			(2,083	)		–
Change in fair value of financial instruments		2,002			–			1,308			–
Changes in non-cash operating working capital
Accounts receivable		(4,217	)		(3,901	)		(6,861	)		(9,573	)
Inventories		1,704			9,052			11,474			12,821
Prepaids		(1,499	)		(265	)		(1,420	)		804
Accrued interest income on promissory note		(1,074	)		(1,062	)		(3,000	)		(3,221	)
Accounts payable and accrued liabilities		(6,536	)		4,074			(1,315	)		383
Deferred revenue		(44	)		(8,716	)		(19,715	)		(14,704	)
Accrued interest expense on royalty obligation		354			361			1,074			1,100
Income taxes		5,139			2			10,645			4,412
Site closure and reclamation expenditures		(75	)		(52	)		(127	)		(52	)
Cash provided by operating activities		14,632			12,399			52,202			16,585
Investing activities
Purchase of property, plant and equipment		(37,121	)		(2,260	)		(95,886	)		(3,071	)
Accrued interest income on reclamation deposits		(344	)		(164	)		(1,410	)		(595	)
Restricted cash		–			(2,475	)		(4,400	)		(2,475	)
Investments		(480	)		–			(18,470	)		–
Proceeds from redemption and disposal of investments		–			–			17,574			–
Cash used for investing activities		(37,945	)		(4,899	)		(102,592	)		(6,141	)
Financing activities
Principal repayments under capital lease obligation		–			(14,108	)		–			(15,077	)
Common shares issued for cash, net of issue costs		4,897			12,848			5,288			20,771
Cash provided by (used for) financing activities		4,897			(1,260	)		5,288			5,694
Increase (decrease) in cash and equivalents		(18,416	)		6,240			(45,102	)		16,138
Cash and equivalents, beginning of period		62,722			31,627			89,408			21,729
Cash and equivalents, end of period	$	44,306		$	37,867		$	44,306		$	37,867

See accompanying notes to consolidated financial statements.

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

For the nine months ended June 30, 2007

(Unaudited – Expressed in thousands of Canadian Dollars, unless stated otherwise)

1.	BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION
	These interim consolidated financial statements are prepared in accordance with Canadian generally accepted accounting principles. They do not include all the disclosures as required for annual financial statements under generally accepted accounting principles. These interim consolidated financial statements should be read in conjunction with the Company's annual consolidated financial statements.
	Operating results for the nine month period ended June 30, 2007 are not necessarily indicative of the results that may be expected for the full fiscal year ending September 30, 2007.
2.	SIGNIFICANT ACCOUNTING POLICIES
	These interim consolidated financial statements follow the same accounting policies and methods of application as the Company's most recent annual financial statements, except as described below and for the changes described in note 3.
	(a)	Revenue Recognition
	Under the Company’s concentrate sales contracts, final copper and molybdenum prices are set based on a specified future quotational period and the market metal price in that period. Typically, the quotational period for copper is four months after the date of arrival at the port of discharge and for molybdenum is one month after the month of shipment. Revenues are recorded under these contracts at the time title passes to the buyer and are based on the forward price for the expected settlement period. The contracts, in general, provide for a provisional payment based upon provisional assays and quoted metal prices. Final settlement is based on the average applicable price for a specified future period, and generally occurs from one to five months after shipment. The Company’s sales contracts do not contain embedded derivatives as the Company enters into such arrangements only to meet its expected purchase, sale or usage requirements.
	(b)	Comparative figures
	Certain of the prior periods' comparative figures have been restated to conform with the presentation adopted for the current period.

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

For the nine months ended June 30, 2007

(Unaudited – Expressed in thousands of Canadian Dollars, unless stated otherwise)

3.	CHANGES IN ACCOUNTING POLICIES
	Effective October 1, 2006, the Company adopted the following new accounting standards issued by the Canadian Institute of Chartered Accountants (“CICA”) relating to financial instruments. These new standards have been adopted on a prospective basis with no restatement to prior period financial statements.
	(a)	Financial Instruments – Recognition and Measurement (Section 3855)
		This standard sets out criteria for the recognition and measurement of financial instruments for fiscal years beginning on or after October 1, 2006. This standard requires all financial instruments within its scope, including derivatives, to be included on a Company’s balance sheet and measured either at fair value or, in certain circumstances when fair value may not be considered most relevant, at cost or amortized cost. Changes in fair value are to be recognized in the statements of operations and comprehensive income.
		All financial assets and liabilities are recognized when the entity becomes a party to the contract creating the item. As such, any of the Company’s outstanding financial assets and liabilities at the effective date of adoption are recognized and measured in accordance with the new requirements as if these requirements had always been in effect. Any changes to the fair values of assets and liabilities prior to October 1, 2006 are recognized by adjusting opening deficit or opening accumulated other comprehensive income.
		All financial instruments are classified into one of the following five categories: held for trading, held-to-maturity, loans and receivables, available-for-sale financial assets, or other financial liabilities. Initial and subsequent measurement and recognition of changes in the value of financial instruments depends on their initial classification:
		•	Held-to-maturity investments, loans and receivables, and other financial liabilities are initially measured at fair value and subsequently measured at amortized cost. Amortization of premiums or discounts and losses due to impairment are included in current period net earnings.
		•	Available-for-sale financial assets are measured at fair value. Revaluation gains and losses are included in other comprehensive income until the asset is removed from the balance sheet.
		•	Held for trading financial instruments are measured at fair value. All gains and losses are included in net earnings in the period in which they arise.
		•	All derivative financial instruments are classified as held for trading financial instruments and are measured at fair value, even when they are part of a hedging relationship. All gains and losses are included in net earnings in the period in which they arise.

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

For the nine months ended June 30, 2007

(Unaudited – Expressed in thousands of Canadian Dollars, unless stated otherwise)

In accordance with this new standard, the Company has classified its financial instruments as follows:

• Marketable securities are classified as available-for-sale securities. Such securities are measured at fair market value in the consolidated financial statements with unrealized gains or losses recorded in comprehensive income (loss). At the time securities are sold or otherwise disposed of, gains or losses are included in net earnings (loss).

• The Company’s investment in a convertible promissory note of Continental Minerals Corporation (“Continental”) contained an embedded derivative which required separation from the host contract and measured at fair value. This change in accounting policy resulted in a mark-to-market adjustment of $307 to deficit and a similar increase to the carrying value of the Company’s investment in Continental at October 1, 2006. In February 2007, the Company redeemed the convertible promissory note for cash (note 4).

• Reclamation deposits invested in government backed securities are classified as available-for-sale securities and are carried at fair market value, with the unrealized gain or loss recorded in shareholders’ equity as a component of other comprehensive income. These amounts will be reclassified from accumulated other comprehensive income to net earnings (loss) when the investment is sold. Previously, reclamation deposits were carried at cost, less provision for other than a temporary decline in value.

• Promissory note relating to the Red Mile Resources No. 2 Limited Partnership Agreement (“Red Mile”) is classified as available for sale.

• Convertible bonds and debenture are classified as held-to-maturity and are measured at amortized costs. Deferred financing costs relating to the issuance of convertible bonds are no longer presented as a separate asset on the balance sheet and are now included in the carrying value of the convertible bonds.

(b)        Hedging (Section 3865)

This new standard specifies the circumstances under which hedge accounting is permissible and how hedge accounting may be performed. The Company currently does not have any hedges.

(c)        Comprehensive Income (Section 1530)

Comprehensive income is the change in shareholders’ equity during a period from transactions and other events from non-owner sources. This standard requires certain gains and losses that would otherwise be recorded as part of net earnings to be presented in other “comprehensive income” until it is considered appropriate to recognize into net earnings. This standard requires the presentation of comprehensive income, and its components in a separate financial statement that is displayed with the same prominence as the other financial statements.

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

For the nine months ended June 30, 2007

(Unaudited – Expressed in thousands of Canadian Dollars, unless stated otherwise)

	Accordingly, the Company now reports a consolidated statement of comprehensive income (loss) and includes the account “accumulated other comprehensive income” in the shareholders’ equity section of the consolidated balance sheet.
4.	INVESTMENTS

		As at June 30, 2007
				Unrealized
		Cost		Gain/(Loss)			Fair Value
Continental Minerals Corporation – Common shares	$	9,880	$	2,566		$	12,446
Continental Minerals Corporation – Warrants		3,118		(1,615	)		1,503
Investment in public companies		1,480		946			2,426
	$	14,478	$	1,951		$	16,375

(a)	The Company held a convertible promissory note (“Note”) of Continental Minerals Corporation (“Continental”), a public company which is a related party by virtue of certain common directors. The Note contained a right to participate in Continental’s equity financings at a 5% discount to the price paid by other parties in the financing. In February 2007, the Company redeemed the Note and exercised its pre-emptive right to participate in Continental’s equity financing. The Company received the principal amount of the Note ($11.5 million) plus a 5% premium, for total proceeds of $12.1 million. The proceeds were used to subscribe for 7,318,182 equity units (“Units”) of Continental at a price of Cdn$1.65 per Unit. Each Unit consisted of one common share of Continental and one Continental common share purchase warrant, exercisable at a price of Cdn$1.80 per share for a one year period from the completion of the financing. The proceeds paid for the Units were allocated to the common shares and warrants received of Continental based on the pro-rated fair value of the common shares ($9.0 million) and warrants ($3.1 million) at the time of the financing.
	At June 30, 2007, the estimated fair value of the Continental warrants was estimated at $1.5 million (using expected volatilities averaging 53%, risk free interest rate of 4.15%, dividends of nil and remaining life of approximately 0.6 years). Consequently, a mark- to-market adjustment of $1,615 was charged to operations.
	As at June 30, 2007, the Company held 9,817,726 common shares and 7,318,182 share purchase warrants of Continental.
(b)	In February 2007, the Company sold 3,234,900 common shares of bcMetals Corporation (“bcMetals”), a public corporation listed on the TSX Venture Exchange for $5.5 million and a realized gain of $1.5 million.

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

For the nine months ended June 30, 2007

(Unaudited – Expressed in thousands of Canadian Dollars, unless stated otherwise)

5. INVENTORY

		June 30		September 30
		2007		2006
Copper concentrate	$	594	$	16,213
Ore in-process		2,368		2,114
Copper plating		1,492		–
Materials and supplies		8,290		5,891
	$	12,744	$	24,218

6. MINERAL PROPERTIES, PLANT AND EQUIPMENT

Plant and equipment - Gibraltar Mine
		June 30, 2007							September 30, 2006
				Accumulated		Net book					Accumulated		Net book
		Cost		Amortization		value			Cost		amortization		Value
Buildings and equipment	$	6,060	$	1,789	$	4,271		$	6,060	$	1,443	$	4,617
Mine equipment		53,847		8,606		45,241			35,680		7,494		28,186
Plant and equipment		56,027		1,421		54,606			14,637		1,223		13,414
Vehicles		1,465		685		780			992		498		494
Computer equipment		3,034		2,040		994			1,766		915		851
Land		152		–		152			152		–		152
Deferred pre-stripping costs		21,569		–		21,569			285		–		285
Total Gibraltar mine	$	142,154	$	14,541	$	127,613		$	59,572	$	11,573	$	47,999
Mineral property interests					$	15,986						$	2,628
Net asset retirement obligation adjustment					$	(6,756	)					$	(7,182	)
Mineral properties, plant and equipment					$	136,843						$	43,445

	In June 2007, Taseko completed the acquisition of all the issued and outstanding shares in the capital of a private company with a project in northeastern British Columbia, Canada (“the Transaction”), for a total cash consideration to the acquired company’s shareholders of $1,500,000 as well as a share settlement to the value of $2,970,000 (consisting of 894,730 common shares).
	In the above Transaction, Taseko purchased the residual net smelter royalties from Teck Cominco Metals Limited (“Teck”) for a total cash consideration to Teck of $300,000 and a units settlement to the value of $835,200 (consisting of 240,000 common shares and 120,000 warrants). Each warrant is exercisable into one common share at $3.48 until June 4, 2009.
7.	RESTRICTED CASH
	In February 2007, Taseko issued a standby letter of credit, collateralized by cash in the amount of $4.4 million, to British Columbia Hydro and Power Authority (“B.C. Hydro”) to provide security for costs relating to the electrical system reinforcements required for the Gibraltar Expansion Project in accordance with “Credit Support Agreement” between Gibraltar and B.C. Hydro. Under the agreement, the Company is required to submit a Revenue Guarantee in the amount of $4.4 million in order for B.C. Hydro to initiate procurement of major equipment as part of

TASEKO MINES LIMITED

Notes to Consolidated Financial Statements

For the nine months ended June 30, 2007

(Unaudited – Expressed in thousands of Canadian Dollars, unless stated otherwise)

	systems reinforcements. The letter of credit will be released over time, as Gibraltar consumes power.
8.	RELATED PARTY TRANSACTIONS AND BALANCES

Services rendered to the Company and its		Three months ended				Nine months ended
subsidiaries and reimbursement of third party		June 30				June 30
expenses
		2007		2006		2007		2006
Hunter Dickinson Inc.	$	1,156	$	867	$	3,683	$	2,046

Balances receivable (payable)		As at		As at
		June 30, 2007		September 30, 2006
Hunter Dickinson Inc. (1)	$	40	$	26

(1) Included in accounts payable and accrued liabilities.