GOLD DEVELOPMENT: Taseko signs Prosperity off-take with Franco-Nevada

BRITISH COLUMBIA - Vancouver's Taseko Mines has entered into a gold stream transaction with Franco-Nevada of Toronto whereby Franco-Nevada will purchase gold equal to 22% of the life-of-mine gold output of the Prosperity gold and copper mine 125 km southwest of Williams Lake.

Taseko will receive staged cash deposits in aggregating US$350 million to be paid during mine construction as well as 2.0 million Franco-Nevada warrants. Each warrant will be exercisable to purchase one Franco-Nevada common share at a price of $75 until June 16, 2017. For each ounce of gold delivered to Franco-Nevada, Taseko will receive a further cash payment of US$400 or the prevailing market price, if lower.

The investment by Franco-Nevada is subject to full financing of the project and receipt of all material permits to construct and operate the Prosperity project and will be staged such that the timing of Franco-Nevada's payments will be concurrent with Taseko's funding of the equity portion of the capital requirements of Prosperity.

Details of the Prosperity project are available at www.TasekoMines.com.