Taseko, Tsilhqot'in Nation & Province of BC Reach Historic Agreement Concerning the New Prosperity Project

Published: 2025-06-06 09:34:04 ET TKO.TO

Published on 06/06/2025 at 09:34

Taseko Mines Limited (TSX: TKO; NYSE American: TGB; LSE: TKO) ('Taseko' or the 'Company'), the Tsilhqot'in Nation and the Province of British Columbia ('BC') today announced the signing of an agreement (the 'Agreement') to resolve a complex, long-standing conflict concerning Taseko's New Prosperity mineral tenures, located approximately 125 kilometers southwest of Williams Lake, British Columbia in the Tez^tan Biny (Fish Lake) area of Ts^ilhqot'in territory. New Prosperity is one of the largest copper-gold deposits in Canada, with a measured and indicated mineral resource containing 5.3 billion pounds of copper and 13.3 million ounces of gold1.

Negotiated over a period of years, the Agreement ends litigation among the three parties, while providing certainty with respect to how the significant copper-gold resource at New Prosperity may be developed in the future. In resolving a high-profile conflict between the rights of resource developers and First Nations, the Agreement meaningfully advances the goals of reconciliation in British Columbia.

Stuart McDonald, President & CEO commented, 'This Agreement resolves a damaging and value-destructive dispute, and acknowledges Taseko's commercial interests in the New Prosperity property and the cultural significance of the area to the Tsilhqot'in Nation. Taseko will retain a majority interest (77.5%) in the mineral tenures, while any future development at New Prosperity will benefit the Tsilhqot'in people, and will only occur with their free, prior and informed consent.

'We thank all the parties for their contributions at the negotiating table and their commitment to the multi-year dialogue that has led to this historic agreement.'

Key elements of the Agreement include: Taseko will receive a payment of $75 million from the Province of BC on closing.

Taseko will contribute a 22.5% equity interest in the New Prosperity mineral tenures to a trust for the future benefit of the Tsilhqot'in Nation. The trust will transfer the property interest to the Tsilhqot'in Nation when and if 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 Tsilhqot'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 Tsilhqot'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 Tsilhqot'in Nation.

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

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

Refer to 'New Prosperity Mineral Tenures and Mineral Resources' and cautionary note in the news release.

Jagrup Brar, Minister of Mining and Critical Minerals for BC, commented: 'Resolution of this legal and public conflict has been a priority for this government. These negotiations, which began under the previous mandate, laid important groundwork. The agreement demonstrates B.C.'s commitment to reconciliation and ensuring that the interests of First Nations and mining companies can advance together. I want to recognize all parties to this agreement for their willingness to collaborate to find common ground, build mutual respect, and create a foundation for shared prosperity. We will continue working in partnership to maintain a stable investment climate and future economic benefits for British Columbians.'

Christine Boyle, Minister of Indigenous Relations & Reconciliation commented: 'It has taken vision and courage from strong leaders to get us to this significant moment. Together with the Tsilhqot'in Nation and Taseko Mines Limited, and through this settlement agreement, B.C. is aligning with commitments we've made under previous agreements-such as the Gwets'en Nilt'i Pathway Agreement-to support the Tsilhqot'in path of self-determination. Through collaborative processes and by working in partnership with First Nations and industry, we will continue to advance reconciliation for the benefit of all.'

Nits'il?in Roger William, Nits'il?in of Xeni Gwet'in, commented: 'This Agreement protects our rights of consent in the Te?tan Area. That's huge. For over three decades, we've had conflict in the Te?tan Area. For my oldest son, for many Tsilhqot'in, that conflict has always been there, for their entire lives. Now we are turning the page. Tsilhqot'in consent is protected: there is no longer the threat of exploration or mining without our consent. I hold my hands up to everyone that worked hard over the past five years to achieve this historic agreement that reflects true reconciliation, including the Province and Taseko Mines Limited. This is a time to celebrate for our people and honour all those who made this resolution possible.'

Nits'il?in Lennon Solomon, Nits'il?in of Yunesit'in, commented: 'This is a historic moment for our people and for reconciliation in British Columbia and Canada. It shows what is possible when we come together in the right spirit to resolve even the deepest conflict. I am honoured to be part of a resolution that finally respects Tsilhqot'in rights and jurisdiction in the Te?tan Area, after a generation of conflict. I am grateful that we can move forward as Tsilhqot'in in a positive way and put our energy and attention into our own priorities as a Nation.'

The Agreement is subject to customary conditions and closing of the transaction is expected to occur in June 2025.

Contact:

Brian Bergot

Vice President

Tel: 778-373-4554

In 2008, Taseko proposed a copper-gold mine known as the Prosperity Project ('Prosperity') and initiated federal and provincial Environmental Assessment ('EA') processes.

The Tsilhqot'in Nation opposed Prosperity, along with proposed mineral exploration and development activities in the area.

In 2010, the Province of BC granted Taseko an EA Certificate for development of the Prosperity mine. Subsequently, in 2010, the Government of Canada denied Prosperity its federal EA Certificate and invited Taseko to submit a revised application to address specific issues related to its decision.

In 2011, Taseko revised the project design and renamed the project New Prosperity. That same year, Taseko re-initiated federal and provincial EA processes with the updated project design.

The Tsilhqot'in Nation remained opposed to the New Prosperity project.

In February 2014, the Government of Canada again denied New Prosperity federal authorization to proceed and again invited Taseko to submit a revised proposal.

In June 2014, the Supreme Court of Canada declared Aboriginal title for the first time in Canadian history over an area of Tsilhqot'in territory that includes lands near the New Prosperity property.

In 2017, the Province of BC authorized Taseko to undertake a site investigation program at New Prosperity. Shortly afterward, the Tsilhqot'in Nation initiated a lawsuit and in 2019, the B.C. Court of Appeal granted an injunction to halt Taseko's site investigation program to allow a full hearing of the case.

With the Provincial EA Certificate valid and significant investment by Taseko, legal actions resulted involving the Tsilhqot'in Nation, Taseko, the Province of BC and Government of Canada. The legal proceedings have focused on environmental assessment decisions by the federal and provincial governments, provincially authorized permits for site work programs, Taseko's proposed work programs, Taseko's mineral tenures, and Tsilhqot'in proven and asserted Aboriginal rights and title.

In 2019, the Tsilhqot'in Nation and Taseko agreed to pause all court proceedings and regulatory processes in order to enter into a confidential dialogue, facilitated by the Province of BC.

The resulting Agreement between Taseko, Tsilhqot'in Nation, and BC has established a consent-based model for any mine development in the Project area; the parties can now explore long-term solutions outside of litigation.

New Prosperity Mineral Tenures and Mineral Resources

The New Prosperity mineral tenures consist of a mineral lease and 85 mineral claims owned by Taseko Mines Limited and located southwest of Williams Lake, BC, within the traditional territory of the Tsilhqot'in Nation.

The New Prosperity mineral resource estimate is described in a technical report entitled 'Technical Report on the 344 Million Tonne Increase in the Mineral Reserves at the Prosperity Gold-Copper Project, British Columbia, Canada' with an effective date of November 2, 2009 (the 'Prosperity Technical Report'). New Prosperity is not considered a property material to Taseko as defined by NI 43-101 and no additional work to identify further resources or reserves has been conducted at New Prosperity since the completion of the estimate. The below table sets out the mineral resources previously estimated at New Prosperity:

Caution Regarding Forward-Looking Information

This document contains 'forward-looking statements' that were based on Taseko's expectations, estimates and projections as of the dates as of which those statements were made. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as 'outlook', 'anticipate', 'project', 'target', 'believe', 'estimate', 'expect', 'intend', 'should' and similar expressions.

Contact:

Tel: (778) 373-4533

Fax: (778) 373-4534

Email: [email protected]