Issues:
* "TU": This should be "tú" with a lowercase "t" and an accent mark on the "u" for the informal "you".
* "habla": This is missing an accent mark. It should be "hablas".
* "espanol": This should be "español" with an "ñ".
* "muy bueno": While grammatically correct, it's a bit awkward. It's more natural to say "muy bien" (very well).
* "gracias mis amigo": This should be "gracias, mis amigos".
Corrected Version:
Tú hablas español muy bien, gracias, mis amigos.
Translation:
You speak Spanish very well, thank you, my friends.