Royal Gold Announces Reserve Increases and Production Forecasts Associated with its Royalty Interests

Royal Gold, Inc.(NASDAQ: RGLD)(TSX: RGL) today announced
updated estimates for ore reserves and mineralized material²
as of December 31, 2010, and calendar 2011 production for its royalty
portfolio. These are the most recent figures provided to the Company by
the operators of its royalty properties or have been obtained by Royal
Gold through publicly available information.

At the end of calendar 2010, precious metals reserves subject to the
Company's royalty interests were approximately 83.9 million ounces of
gold and 1.4 billion ounces of silver. Net of depletion, this reflects a
gain of 5.4 million ounces of gold and 53 million ounces of silver,
representing a 7.0% increase in gold reserves and a 4.0% increase in
silver reserves, over the prior calendar year-end.

Tony Jensen, President and Chief Executive Officer, commented, 'This
reserve growth is due to a combination of the success our royalty
operators had in converting resources into reserves and our ability to
add new properties to our royalty portfolio during the year, driven
largely by the Mt. Milligan acquisition. The reserve additions from this
property are significant to Royal Gold as we are entitled to 25% of the
gold reserves at Mt. Milligan.?

RESERVE AND PRODUCTION INFORMATION

The attached table contains production information related to our
producing royalty interests. The complete Royalty
Portfolio, which includes reserves, mineralized material²,
and production subject to the Company's royalty interests on producing
and development properties can be found on our website under the
royalties section.

For further information about our royalty interests, please see our
Annual Report on Form 10-K, as well as our other public reports.

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 35 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.

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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 regarding the
effectiveness of Royal Gold's royalty operators in converting resources
into reserves and our ability to add new properties to our royalty
portfolio; production estimates for calendar 2011 provided by
third-party operators; reserves and additional mineralization estimates
provided by or derived from information provided by third party
operators; the sliding-scale features of our royalty structure at
certain of our properties; and the commencement of production or
construction from the operators of certain properties. Like any royalty
on a non-producing or not yet in development project, our royalties on
development projects are subject to certain risks, such as the ability
of the operators to bring the projects into production and operate in
accordance with their feasibility studies and the ability of Royal Gold
to make accurate assumptions regarding valuation and timing and amount
of royalty payments. In addition, many of our royalty interests 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. Factors that could cause actual
results to differ materially include, among others, changes in precious
metals prices, performance of and production at our royalty properties,
decisions and activities of the operators of our royalty properties,
mine completion, unanticipated grade, geological, metallurgical,
processing or other problems the operators of the mining properties may
encounter, changes in project parameters as plans continue to be
refined, economic and market conditions, and future financial needs of
our operators, as well as other factors described by the Securities and
Exchange Commission. 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.

FOOTNOTES TO TABLE 1

¹ The estimates and production reports are prepared by the
operators of the mining properties. Royal Gold does not participate in
the preparation or verification of the operators′ estimates or
production reports and has not independently assessed or verified the
accuracy of such information. Please refer to our cautionary statement
regarding forward-looking statements and to the risk factors identified
in our Annual Report on Form 10-K and our other filings with the
Securities and Exchange Commission for information regarding factors
that could affect actual results.

² The sliding-scale moves up 0.25% for each $25 per ounce of
gold price increase, starting at a per ounce price of $375, inflated by
the Producer Price Index commencing in 1986.

³ NSR sliding-scale schedule (price of gold per ounce ?
royalty rate): Below $210 ? 0.40%; $210 to $229.99 ? 0.50%; $230 to
$249.99 ? 0.75%; $250 to $269.99 ? 1.30%; $270 to $309.99 ? 2.25%; $310
to $329.99 ? 2.60%; $330 to $349.00 ? 3.00%; $350 to $369.99 ? 3.40%;
$370.00 to 389.00 ? 3.75%; $390 to $409.99 ? 4.0%; $410 to $429.99 ?
4.25%; $430 to $449.99 ? 4.50%; $450 to $469.99 ? 4.75%; $470 and higher
? 5.00%.

⁴ Production estimates reflect payable metal and are subject
to third party treatment charges.

⁵ Recovered metal is contained in concentrate and is subject
to third party recovery losses.

⁶ NSR sliding-scale schedule (price of gold per ounce ?
royalty rate): $0.00 to under $350 ? 0.0%; $350 to under $400 ? 0.5%;
$400 to under $500 ? 1.0%; $500 or higher ? 2.0%.

⁷ Production guidance reflects the entire project. Operator
has not provided a breakdown of production by royalty interest.

⁸ NSR sliding-scale schedule (price of gold per ounce ?
royalty rate): $0.00 to $350 ? 1.0%; above $350 ? 1.5%.

⁹ In November 2008, the operator made application to a court
in Ontario, Canada for a declaration that it is not obligated to pay the
entire royalty defined under the royalty agreement and to dispute the
royalty rate. The operator claims that its predecessor in interest is
responsible for payment of some or all of the royalty. On July 23, 2009,
the Court held that Royal Gold is entitled to payment from the
predecessor of the full amount of the NSR sliding-scale royalty and that
the operator′s obligation is to reimburse the predecessor for payment of
the royalty up to a flat rate of 0.013% NSR. On August 21, 2009, the
predecessor appealed the portion of the judgment holding them
responsible for paying the royalty. On December 9, 2009, Royal Gold was
made a party to the appeal. Oral arguments were heard on March 28, 2011,
and parties are awaiting the outcome.

¹⁰ Gold royalty rate is based on the price of silver per
ounce. NSR sliding-scale schedule (price of silver per ounce ? royalty
rate): Below $5.00 ? 0.0%; $5.00 to $7.50 ? 3.778%; >$7.50 ? 9.445%.

¹¹ The NSR sliding-scale royalty is capped once payments of
approximately $17 million have been received. As of March 31, 2011,
payments of approximately $7.1 million have been recognized. NSR
sliding-scale schedule (price of gold per ounce ? royalty rate): <$300 -
2.0%; $300-$350 - 3.0%; >$350 - 4.0%.

¹² The Company′s royalty is subject to a 2.0 million ounce
cap on gold production. There have been approximately 694,000 ounces of
cumulative production, as of March 31, 2011. NSR sliding-scale schedule
(price of gold per ounce ? royalty rate): $0.00 to $299.99 ? 1.0%; $300
to $324.99 ? 1.50%; $325 to $349.99 ? 2.0%; $350 to $374.99 ? 3.0%; $375
to $399.99 ? 4.0%; $400 or higher ? 5.0%.

¹³ Recovered metal is contained in concentrate and is subject
to third party treatment charges and recovery losses.

¹⁴ The royalty rate is 75% until 910,000 payable ounces of
gold have been produced ? 50% thereafter. There have been approximately
35,400 of cumulative payable ounces produced as of March 31, 2011. Gold
is produced as a by-product of copper.

¹⁵ NSR sliding-scale schedule (price of zinc per ounce ?
royalty rate): Below $0.50 ? 0.0%; $0.50 to below $0.55 ? 1.0%; $0.55 ?
1.0%; greater than $0.55 to below $0.60 ? 2.0%; $0.60 or higher ? 3.0%.

¹⁶ Production guidance for fiscal year 2011 ending June 30,
2011. Total production includes King of the Hills. Approximately 91,000
ounces have been produced as of March 31, 2011.

¹⁷ Production guidance for fiscal year 2012 ending June 30,
2012. Total production includes King of the Hills.

¹⁸ Production guidance for fiscal year 2011 ending June 30,
2011. Approximately 91,000 ounces have been produced as of March 31,
2011.

¹⁹ Production guidance for fiscal year 2012 ending June 30,
2012.

NOTE:

The Table does not include production information for Allan, Balcooma,
Johnson Camp, Martha, Skyline and three oil and gas royalties.

ROYALTY DEFINITIONS

The Company′s royalty portfolio contains several different types of
royalties which are defined as follows:

Royalty - the right to receive a percentage
or other denomination of mineral production from a resource extraction
operation.

Gross Smelter Return ('GSR?) Royalty-
a defined percentage of the gross revenue from a resource extraction
operation, less, if applicable, certain contract-defined costs paid by
or charged to the operator.

Net Smelter Return ('NSR?) Royalty-
a defined percentage of the gross revenue from a resource extraction
operation, less a proportionate share of incidental transportation,
insurance, refining and smelting costs.

Net Value Royalty ('NVR?) - a
defined percentage of the gross revenue from a resource extraction
operation, less certain contract-defined transportation costs, milling
costs and taxes.

Net Profits Interest Royalty ('NPI?) - a
defined percentage of the gross revenue from a resource extraction
operation, after recovery of certain contract-defined pre-production
costs, and after deduction of certain contract-defined mining, milling,
processing, transportation, administrative, marketing and other costs.

Gross Proceeds Royalty ('GPR?) - a royalty
in which payments are made on contained ounces rather than recovered
ounces.

¹ Reserves subject to Royal Gold′s royalty interests.

² The U.S. Securities and Exchange commission does not
recognize this term. Mineralized material is not part of proven and
probable reserves and there is a chance that it may never be converted
into reserves.

Royal Gold, Inc.

Karen Gross, Vice President and Corporate Secretary

303-575-6504