Press Release Details

Royal Gold, Inc. (NASDAQ: RGLD) (TSX: RGL) today announced record royalty revenue of $136.6 million for fiscal 2010 (ended June 30), an 85% increase over revenues of $73.8 million in fiscal 2009. Net income available to Royal Gold common stockholders totaled $21.5 million, or $0.49 per basic share, compared with net income available to Royal Gold common stockholders of $38.3 million, or $1.09 per share, in fiscal 2009. Net income available to Royal Gold common stockholders for fiscal 2010 was impacted by pre-tax effects of severance and acquisition costs of approximately $19.4 million, related to the Company's acquisition of International Royalty Corporation ('IRC'). The after tax effect of these IRC related costs on basic earnings per share was $0.33. Excluding theafter tax effect of these items, net income available to Royal Gold common stockholders would have been $35.8 million, or $0.82 per basic share for fiscal 2010. Net income available to Royal Gold common stockholders for fiscal 2009 was impacted by two one-time gains related to the Barrick royalty portfolio acquisition and the Benso royalty buy-back by Golden Star. The effect of these gains was $0.62 per basic share, after taxes. Excluding these gains, fiscal 2009 net income available to Royal Gold common stockholders would have been $16.4 million, or $0.47 per share.

For the fourth quarter ended June 30, 2010, royalty revenue reached a record high of $40.7 million, an 83% increase over royalty revenue of $22.3 million for the same period in fiscal 2009. The Company reported fourth quarter net income available to Royal Gold common stockholders of $10.5 million, or $0.21 per basic share, as compared with net income available to Royal Gold common stockholders of $7.1 million, or $0.18 per basic share for the fourth quarter of fiscal 2009. Net income for the fourth quarter of fiscal 2009 was impacted by a $2.2 million gain due to the Benso royalty buy-back. Excluding this one-time gain, the Company's net income for the fourth quarter ended June 30, 2009 was $5.6 million or $0.14 per basic share.

Free cash flow¹ for fiscal 2010 was $100.1 million ($2.29 per basic share), representing 73% of revenue. This compares to free cash flow for fiscal 2009 of $61.7 million ($1.75 per basic share), or 84% of revenue. Free cash flow as a percentage of revenue for fiscal 2010 was negatively impacted due to $19.4 million of costs relating to the acquisition of IRC. Before IRC related costs, free cash flow for the year was 87% of revenue. Free cash flow for the fourth quarter was $35.1 million ($0.74 per basic share), or 86% of revenue, compared to free cash flow of $19.4 million ($0.49 per basic share), or 87% of revenue, for the prior period.

The 85% increase in revenue for fiscal 2010 was largely driven by production increases at Taparko, Cortez, Peñasquito, and Dolores, new revenue from the IRC royalty portfolio and initial production at Andacollo, and higher average gold prices. The average price of gold in fiscal 2010 was $1,089 per ounce compared with $874 per ounce in fiscal 2009, representing a 25% increase.

The percentage of revenue from precious metal royalties for fiscal 2010 was 84% compared with 87% for fiscal 2009. Gold royalty revenue for fiscal 2010 was 81% compared with 84% for fiscal 2009.

As of June 30, 2010, the Company had a working capital surplus of $335.5 million. Current assets were $371.3 million (including $324.8 million in cash and equivalents), compared to current liabilities of $35.8 million, resulting in a current ratio of 10 to 1. Total long-term debt outstanding under the Company's credit facilities was $248.5 million as of June 30, 2010.

Tony Jensen, President and CEO, commented, 'We are very pleased to report record revenue and free cash flow on both a gross and per share basis for fiscal 2010 as we mark our ninth straight year of growth. This past year was exceptional with regard to acquisitions as well. We increased the number of properties in our portfolio by 60% including the cornerstone assets of Andacollo, a greatly expanded interest at Pascua-Lama, and Voisey's Bay. Fiscal 2011 is also shaping up to be an exciting year for Royal Gold with our July announcement of the Mt. Milligan transaction and our expectation of full commercial production from the Peñasquito, Andacollo, Wolverine, Las Cruces and Dolores mines, as well as initial production from the Canadian Malartic mine.'

RECENT DEVELOPMENTS

Common Stock Offering

In June 2010, Royal Gold sold 5,980,000 shares of common stock, including 780,000 shares of common stock pursuant to the exercise of the underwriters' over-allotment option, at a price of $48.50 per share. Proceeds to the Company from the offering, net of commission and estimated expenses, were approximately $276.2 million. The proceeds from the offering will be used for general corporate purposes, including funding of the Mt. Milligan transaction.

Acquisition of Additional Royalty Interests on the Pascua-Lama Gold Project

In July 2010, Royal Gold announced that it has acquired the rights to an additional 1.0% net smelter return sliding-scale gold royalty on the Pascua-Lama project, owned by Barrick Gold. The additional interest was purchased in separate transactions from three private individuals for a total acquisition price of $68 million. Of this amount, $40 million has been paid to immediately acquire 0.60% of the additional royalty interest, and a deferred payment of $28 million will be made on or before October 29, 2010 to acquire the remaining 0.40% royalty interest. Once the acquisition is complete, Royal Gold's total royalty interest will increase to 5.23% NSR at gold prices at or above $800 per ounce. The transactions also include a 0.20% fixed-rate copper royalty which takes effect after January 1, 2017, increasing Royal Gold's total copper royalty interest to 1.05%.

Agreement Signed to Acquire 25% Gold Stream on the Mt. Milligan Project

In July 2010, the Company announced it has agreed to acquire 25% of the payable gold produced from the Mt. Milligan copper-gold project in British Columbia from Thompson Creek concurrent with the closing of Thompson Creek's proposed acquisition of Terrane. Royal Gold will provide $226.5 million at closing of Thompson Creek's acquisition of Terrane and thereafter $85.0 million over the construction period of the Mt. Milligan project. In addition, Royal Gold will pay Thompson Creek a cash payment equal to the lesser of $400 or the prevailing market price for each payable ounce of gold until 550,000 ounces have been delivered to Royal Gold and the lesser of $450 or the prevailing market price for each additional ounce thereafter. This transaction is subject to the completion of Thompson Creek's acquisition of Terrane, which requires the approval Terrane's stockholders. Terrane has scheduled a shareholders' meeting in September to approve the transaction.

PROPERTY HIGHLIGHTS

Highlights at the Company's principal producing and development properties are listed below:

Andacollo ? In July 2010, Teck reported that ramp up to full production continues with the expectation that design capacity will be reached in the fourth quarter of calendar 2010. Three shipments of concentrates were made during the quarter ended June 30, 2010, with the first occurring in early May.

Peñasquito ? In June 2010, Goldcorp announced that the second sulfide processing line achieved mechanical completion ahead of schedule and is ramping up toward its 50,000 tonne-per-day design capacity. The operator expects commercial production to be reached in the third calendar quarter of 2010, construction of the high pressure grinding roll circuit to be completed in the fourth calendar quarter, and full production ramp up to the planned 130,000 tonne per day capacity to be reached in early calendar 2011.

Taparko ? At the current gold price, the Company expects that the $35 million cap on the 15% (TB-GSR1) royalty could be met during our first fiscal quarter of 2011. As of June 30, 2010, Royal Gold has recognized approximately $30.6 million in royalty revenue associated with the TB-GSR1 royalty and a total of $50.0 million in aggregate from the Taparko royalties. When the cap is reached, both the TB-GSR1 royalty and the sliding-scale (TB-GSR2) royalty (currently paying at a rate of 10%) will cease and a 2.0% (TB-GSR3) perpetual royalty, applicable to gold production from defined portions of the Taparko-Bouroum project area, will take effect.

Siguiri ? The Company expects that the $12.0 million cap on our royalty could be reached in the first half of fiscal 2011. Approximately $1.8 million remains unrecognized as of June 30, 2010.

Voisey's Bay ? Currently, the strike at Voisey's Bay has not been resolved. Vale is presently operating at about 40% of capacity and is working on ramping up to full production.

Dolores ? During the quarter, production at Dolores was below their guidance due to lower gold grades. The operator expects production to increase through the second half of calendar 2010 due to increasing grades, completion of tertiary screen repairs, and loading of ore onto the phase 2 leach pad beginning in late August.

Las Cruces ? Inmet's Las Cruces copper operation continues to experience difficulties as they start-up. They have reported that a number of equipment failures and operational issues delayed the ramp up of the plant and limited the ability to operate continuously. Beginning in July, Inmet has been focused on increasing available plant capacity and reducing the causes of equipment failures. Inmet expects to produce 20,000 to 30,000 tonnes of copper cathode in calendar 2010.

Wolverine? Yukon Zinc is completing the construction of its facilities at the Wolverine Mine. In June, wet commissioning was completed and batches of low grade ore were put through the processing plant for testing of unit operations. The plant is scheduled to begin the ramp up process as ore is introduced into the mill on a continuous basis in September.

Canadian Malartic ? Constructionof the mine and mill facilities continue to advance. As of early June, the mining fleet was being deployed and the installation of the SAG and ball mills was scheduled to begin. Osisko estimates the project will be fully operational in the second quarter of calendar 2011.

Pascua-Lama ? Barrick has reported that detailed engineering and procurement is nearing completion and the project is on track to enter production in the first quarter of calendar 2013. Barrick stated that major, long lead items have been ordered and the Barriales Camp in Chile is essentially complete. Roadwork is progressing well and about three million tons have been moved as a part of initial earthworks.

Full-year and fourth quarter fiscal 2010 production and revenue for the Company's principal royalty interests are shown in Tables 1 and 2. For more detailed information about each of our principal royalty properties, please refer to the Company's most recent Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC and available on the SEC's website located at www.sec.gov, or our website located at www.royalgold.com.

CORPORATE PROFILE

Royal Gold is a precious metals royalty company engaged in the acquisition and management of precious metal royalty and similar production based interests. The Company owns royalties on 189 properties on six continents, including royalties on 33 producing mines and 24 development stage projects. Royal Gold is publicly traded on the NASDAQ Global Select Market under the symbol 'RGLD,' and on the Toronto Stock Exchange under the symbol 'RGL.' The Company's website is located at www.royalgold.com.

Note: Management's conference call reviewing the fourth quarter and year-end results will be held todayat 10:00 a.m. Mountain Time (noon Eastern Time) and will be available by calling (800) 603-2779 (North America) or (973) 200-3960(international), access #50475268. The call will be simultaneously broadcast on the Company's website at www.royalgold.com under the 'Presentations' section. A replay of this webcast will be available on the Company's website approximately two hours after the call ends.

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Cautionary 'Safe Harbor' Statement Under the Private Securities Litigation Reform Act of 1995: With the exception of historical matters, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projections or estimates contained herein. Such forward-looking statements include statements about the Company's performance in fiscal 2011, including the acquisition of a gold stream interest at Mt. Milligan; the operators' expectation of commercial production in fiscal 2011 at the Peñasquito, Andacollo, Wolverine, Las Cruces and Dolores mines; the commencement of production in fiscal 2011 at the Canadian Malartic mine; the commencement of production in fiscal 2013 at the Pascua-Lama project; that the Company will make a deferred payment of $28 million on or before October 29, 2010 to acquire the remaining 0.40% royalty interest at Pascua-Lama; the operators' estimates of the various stages of construction, ramp up and achievement of production levels at Andacollo, Peñasquito, Las Cruces, Wolverine, Canadian Malartic and Pascua-Lama; that the $35 million cap on the

TB-GSR1 royalty at Taparko could be met during the first quarter of fiscal 2011; that the $12 million royalty cap at Siguiri could be reached in the first half of fiscal 2011; and the operators' estimates regarding production at the Company's other royalty properties. Factors that could cause actual results to differ materially from the projections include, among others, precious metals prices, performance of and production at the Company's royalty properties, decisions and activities of the operators of the Company's royalty properties, unanticipated grade, geological, metallurgical, processing or other problems the operators of the mining properties may encounter, delays in the operators securing or their inability to secure necessary governmental permits, changes in operator's project parameters as plans continue to be refined, economic and market conditions, possible liquidity and production problems at the Company's royalty properties, the Company's exercise of its rights under the Taparko Funding Agreement, buy-down rights at Canadian Malartic, litigation, the ability of the various operators to bring projects into production as expected, and other subsequent events, as well as other factors described in the Company's Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and other filings with the Securities and Exchange Commission. Most of these factors are beyond the Company's ability to predict or control. The Company disclaims any obligation to update any forward-looking statement made herein. Readers are cautioned not to put undue reliance on forward-looking statements.

*Free Cash Flow: The Company discloses information on free cash flow and free cash flow as a percentage of revenues in its reporting. Free cash flow is a non-GAAP financial measure. The Company defines free cash flow as operating income plus depreciation, depletion and amortization, non-cash charges, and any impairment of mining assets less non-controlling interests in operating income of consolidated subsidiaries. While we believe free cash flow is a useful measure of the Company's performance, we also want to advise that this is not a measure recognized by generally accepted accounting principles. See Schedule A, attached to this press release for a GAAP reconciliation.

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