Royal Gold Announces the Completion of the Pascua-Lama Gold Royalty Transactions

Royal Gold, Inc. (NASDAQ:RGLD) (TSX: RGL) today announced that it
has completed the deferred portion of previously announced transactions
to acquire the rights to an additional aggregate 1.0% net smelter return
('NSR?) sliding-scale gold royalty on the Pascua-Lama project. The
deferred portion consisted of the purchase of 0.40% NSR for a purchase
price of $28 million. As a result of the transactions with three private
individuals, Royal Gold′s composite royalty interest is now a 5.23% NSR,
at gold prices above $800 per ounce. The transactions also included a
0.20% NSR fixed-rate copper royalty that will take effect after January
1, 2017, increasing Royal Gold′s copper royalty interest to 1.05%.

The Pascua-Lama project, owned and operated by Barrick Gold Corporation
('Barrick?), is in the early stages of construction, with initial
commissioning scheduled for late 2012 and first production expected in
the first quarter of calendar 2013. Reserves estimated by Barrick at the
end of calendar 2008 related to Royal Gold′s royalty interest totaled
324.7 million tons, at a grade of 0.045 ounces per ton, for 14.6 million
contained ounces, at a gold price of $750 per ounce. Barrick expects the
reserves to support a mine life of at least 25 years and estimates that
Pascua-Lama will produce an average of 600,000 to 700,000 ounces of gold
annually over the life of the mine. The Pascua-Lama project is located
on the border of Chile and Argentina; Royal Gold′s royalties apply to
production on the Chilean side of the project only.

Royal Gold is a precious metals royalty company engaged in the
acquisition and management of precious metal royalties and similar
interests. The Company′s portfolio consists of 188 properties on six
continents, including interests on 34 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.

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 the operator′s estimated
dates for commissioning and initial production, the estimated gold
reserves for the project, the estimated average annual production over
the life of the mine, and the reserve life of the project. Factors that
could cause actual results to differ materially from projections
include, among others, precious metals prices, decisions and activities
of the operator of the various properties, unanticipated grade,
geological, metallurgical, processing or other problems the operator may
encounter, changes in project parameters as plans continue to be
refined, economic and market conditions, as well as other factors
described elsewhere in this press release and in our Annual Report on
Form 10-K, Quarterly Report on Form 10-Q, and other filings with the
Securities and Exchange Commission. In addition, acquired royalties and
similar interests on certain projects are subject to risks associated
with conducting business in a foreign country, including application of
foreign laws to contract and other disputes, foreign environmental laws
and enforcement and uncertain political and economic environments. 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.

Royal Gold, Inc.

Karen Gross, 303-575-6504

Vice
President and Corporate Secretary