Press Release Details

• Record royalty revenue of $56.3 million, a 62% increase year-over-year
• Record free cash flow¹ of $48.9 million represented 87% of total revenue, a 71% increase year-over-year
• Net income rose 90% year-over-year to $18.3 million, or $0.33 per basic share

Royal Gold, Inc. (NASDAQ:RGLD) (TSX:RGL) today announced net income attributable to Royal Gold stockholders of $18.3 million, or $0.33 per basic share, on record royalty revenue of $56.3 million for the second quarter of fiscal 2011. This compares to net income attributable to Royal Gold stockholders for the second quarter of fiscal 2010 of $9.6 million, or $0.24 per basic share, on royalty revenue of $34.7 million.

For the six-month period ended December 31, 2010, royalty revenue was $101.7 million and net income attributable to Royal Gold stockholders was $30.1 million, or $0.55 per basic share. This compares to royalty revenue of $60.9 million and net income attributable to Royal Gold stockholders of $16.7 million, or $0.41 per basic share, for the six-month period ended December 31, 2009.

Free cash flow¹ for the quarter was a record $48.9 million, representing 87% of revenues, which was an increase of 71% compared to free cash flow of $28.6 million or 82% of revenues for the comparable prior year quarter.

The 62% increase in quarterly revenue was largely driven by new production from Andacollo and Voisey's Bay, production increases at Peñasquito, and higher average gold and other metal prices. The increase in revenue was partially offset by lower production at Cortez and Leeville, when compared to the second quarter of fiscal 2010, and a reduced royalty rate at Taparko. The average price of gold for the second fiscal quarter was $1,367 per ounce compared with $1,100 per ounce for the comparable period, representing a 24% increase.

As of December 31, 2010, the Company had a working capital surplus of $90.4 million. Current assets were $128.4 million (including $71.4 million in cash and equivalents), compared to current liabilities of $38.0 million, resulting in a current ratio of 3 to 1. Total debt outstanding under the Company's credit facilities was $225.5 million, as of December 31, 2010.

Tony Jensen, President and CEO, commented, "Our record second quarter results reflect the resiliency of our diversified portfolio in helping us achieve another strong quarter of cumulative production gains. We more than made up for the reduced royalty rate at Taparko with new year-over-year revenue additions from Andacollo and the IRC portfolio, and increased production at Peñasquito. We look forward to the commencement of revenue at Wolverine and Holt during the fiscal third quarter and the start of production at Canadian Malartic during the fiscal fourth quarter of 2011."

PROPERTY HIGHLIGHTS

Highlights at certain of the Company's principal producing and development properties during the quarter ended December 31, 2010 are listed below:

Andacollo -Production ramp-up continued resulting in a 25% increase in quarter-over-quarter production. Andacollo is expected to achieve its first full three-month period of near full production for the quarter ending March 2011.

Voisey's Bay - Vale recently announced the ratification of a new five-year collective agreement with their employees, marking the end of the worker strike which began on August 1, 2009. Royalty revenue increased substantially from the prior quarter as production and concentrate shipments increased with the help of replacement workers.

Peñasquito - Goldcorp announced a production forecast of 350,000 ounces of gold for calendar 2011 almost doubling prior year guidance, and reiterated that Peñasquito will reach full processing capacity of 130,000 tonnes per day by March 31, 2011.

Siguiri -As previouslyguided,the Company reached the $12.0 million cap and we recognized our final royalty payment during the quarter.

Robinson - As planned, transition from the Veteran Pit to the Ruth Pit was completed during the quarter. Production at Robinson was lower during the period due to severe weather and grade variability. Quadra reported that they expect calendar 2011 copper production to range between 105 and 120 million pounds, and gold production to range between 45,000 and 50,000 ounces.

Mulatos - Alamos reported strong fourth calendar quarter production due to the stacking of ore directly on the liner. Construction of a high grade mill is planned to begin in the second quarter of calendar 2011 with expected completion in the fourth quarter. Alamos announced estimated gold production between 160,000 to 175,000 ounces for calendar 2011.

Dolores -Minefinders reportedsuccessful commissioning of the Phase 2 leach pad. Production volumes have steady increased during the fourth quarter and Minefinders anticipates improved gold and silver production in calendar 2011.

Las Cruces - Ramp-up towards full production continued during the quarter. Inmet plans to continue with plant modifications and announced that it expects to increase copper production to 110 million pounds in calendar 2011.

Wolverine - Major site construction, which included the industrial complex and tailings facility, was completed. The mill processing facility was commissioned and Yukon Zinc expects to increase production to design capacity during calendar 2011.

Holt -St Andrew Goldfields continued development and pre-production activities during the quarter, and expects full production from Holt early in calendar 2011. Oral arguments related to the dispute over the payor of the royalty are scheduled to be heard on March 28, 2011.

Canadian Malartic - Osisko reports that production is scheduled to begin in the second quarter of 2011.

RECENT DEVELOPMENTS

Mt. Milligan

During the quarter ended December 31, 2010, Royal Gold announced the completion of the Mt. Milligan gold stream transaction in which Royal Gold acquired the right to 25% of the payable gold produced from the Mt. Milligan copper-gold project in British Columbia. Total consideration for the transaction was $226.5 million paid in conjunction with the closing of Thompson Creek Metal's acquisition of Terrane Metals and an additional $85.0 million to be paid during the construction period of the Mt. Milligan project subject to certain conditions. 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. A winter work program has been implemented and project development is on schedule.

Pascua-Lama

Also during the quarter, Royal Gold announced that it closed the transactions for additional gold royalty interests on the Pascua-Lama project, owned and operated by Barrick Gold. Royal Gold's total interest is now a 5.23% net smelter return sliding-scale royalty, at gold prices at or above $800 per ounce. The transactions also included 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%. Barrick reports that development work is proceeding well, with detailed engineering and procurement over 90% complete.

Second quarter fiscal 2011 production and revenue for the Company's principal royalty interests are shown in Table 1. 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 royalties and similar interests. The Company's current portfolio consists of 187 properties on six continents, including interests 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 second quarter 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 #36528572. 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 resiliency of our diversified portfolio, the commencement of revenue from Wolverine and Holt, the start of production at Canadian Malartic, design, production or processing capacity at Andacollo, Peñasquito, Robinson, Mulatos, Dolores and Wolverine, production levels at Voisey's Bay, Robinson, Dolores and Las Cruces, and mine development at Pascua-Lama. 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, 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.

See footnotes below.

SCHEDULE A

Non-GAAP Financial Measures

The Company computes and discloses free cash flow and free cash flow as a percentage of revenues. Free cash flow is a non-GAAP financial measure. Free cash flow is defined by the Company 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. Management believes that free cash flow and free cash flow as a percentage of revenues are useful measures of performance of our royalty portfolio. Free cash flow identifies the cash generated in a given period that will be available to fund the Company's future operations, growth opportunities, shareholder dividends, and to service the Company's debt obligations. Free cash flow, as defined, is most directly comparable to operating income in the Statements of Operations. Below is the reconciliation to operating income: