Royal Gold Reports Strong Financial Results for Third Quarter Fiscal 2011

Royal Gold, Inc. (NASDAQ:RGLD) (TSX:RGL) today announced net
income attributable to Royal Gold stockholders of $19.6 million, or
$0.36 per basic share, on royalty revenue of $55.5 million for the third
quarter of fiscal 2011. This compares to a net loss attributable to
Royal Gold stockholders for the third quarter of fiscal 2010 of $5.8
million, or a negative $0.13 per basic share, on royalty revenue of
$35.0 million. Excluding theafter tax effect of two
non-recurring items related to the Company′s acquisition of
International Royalty Corporation for the 2010 third fiscal quarter, net
income would have been $8.9 million or $0.20 per basic share.

For the nine-month period ended March 31, 2011, royalty revenue was
$157.2 million and net income attributable to Royal Gold stockholders
was $49.7 million, or $0.90 per basic share. This compares to royalty
revenue of $95.9 million and net income attributable to Royal Gold
stockholders of $11.0 million, or $0.26 per basic share, for the
nine-month period ended March 31, 2010. Excluding theafter tax
effect of two non-recurring items, net income would have been $27.1
million or $0.65 per basic share for the fiscal 2010 nine-month period.

Free cash flow¹ for the current quarter was $48.9 million,
representing 88% of revenues, compared with free cash flow of $13.7
million or 39% of revenues for the comparable prior year quarter.
Excluding theimpact of the non-recurring items, free cash flow
would have been $30.6 million or 87% of revenues for the 2010 third
fiscal quarter.

The 59% 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 a
reduced royalty rate at Taparko. The average price of gold for the third
fiscal quarter of 2011 was $1,386 per ounce compared with $1,109 per
ounce for the comparable period, representing a 25% increase.

As of March 31, 2011, the Company had a working capital surplus of
$151.1 million. Current assets were $185.0 million (including $125.8
million in cash and equivalents), compared to current liabilities of
$33.9 million, resulting in a current ratio of 5 to 1. Total debt
outstanding under the Company′s credit facilities was $245 million as of
March 31, 2011.

Tony Jensen, President and CEO, commented, 'We are starting to see the
revenue potential from three of our cornerstone royalties as Andacollo
and Peñasquito continued to ramp up capacity and Voisey′s Bay regained
production following its labor settlement. In addition, two of our
development properties, Holt and Wolverine, moved into production
increasing our producing portfolio to 35 revenue-generating properties.
In the coming quarters, we expect further production gains at
Peñasquito, Holt and Wolverine as they work towards full design
capacity, as well as the commencement of production from Canadian
Malartic scheduled for later this month.?

PROPERTY HIGHLIGHTS

Highlights at certain of the Company′s principal producing and
development properties during the quarter ended March 31, 2011 are
listed below:

Andacollo ? Teck announced it will undertake a new expansion
study to examine the feasibility of increasing annual production from
80,000 tonnes to approximately 100,000 to 120,000 tonnes of copper in
concentrate. The study is expected to be complete by the end of the
fourth quarter of calendar 2011.

Voisey′s Bay ? Production was strong for the quarter and appears
to be at a steady-state following the resolution of the strike in
February 2011.

Peñasquito ? The mine averaged 94,400 tonnes per day during March
and reached full processing capacity of 130,000 tonnes per day at the
end of the quarter. Goldcorp is continuing to focus on sustaining
throughput at the 130,000 tonnes per day level.

Cortez ? Barrick has returned its focus to production of Cortez
Hills ore which, as previously discussed, will limit production of
Pipeline ore subject to our royalty interests.

Robinson ? Quadra reported that production at Robinson continued
to be limited due to the lack of flexibility in the Ruth Pit. A
secondary access ramp is being constructed and mud is being removed from
the bottom of the pit which should improve flexibility. As a result of
these improvements, Quadra expects calendar 2011 throughput to increase
in the second half of 2011.

Mulatos ?Alamos reported lower than expected first
quarter production due to lower than budgeted crusher throughput. They
also announced that a mill will be constructed on site to supplement the
heap leach production and is expected to be operational in the fourth
quarter of calendar 2011.

Dolores ?Minefinders reported record quarterly
production, in line with their 2011 annual production forecast of 65,000
to 70,000 ounces of gold and 3.3 million to 3.5 million ounces of silver.

Wolverine ? The processing plant is expected to hit commercial
production levels of 60 to 70% of design capacity by late in the third
calendar quarter and reach full design capacity levels of 1,700 tonnes
per day by the end of calendar 2011.

Holt ?St Andrew Goldfields announced that the Holt mine
achieved commercial production during the quarter. They expect to
continue ramping up production from the current level of approximately
500 tonnes per day to 1,000 tonnes per day by the end of calendar 2011.
Oral arguments were held on March 28, 2011, related to the dispute over
the payor of the royalty and parties are awaiting the court ruling.

Canadian Malartic ? On April 13, 2011, Osisko announced that the
first gold bar was poured at its Canadian Malartic mine and that they
remain on track for commercial production by the end of May 2011. Also
during the quarter, Osisko exercised its buy-out option to purchase 50%
of Royal Gold′s net smelter return ('NSR?) royalty for $1.5 million.
Royal Gold now holds a 1.0% to 1.5% sliding-scale NSR royalty.

Mt. Milligan ?The winter work program continued at Mt.
Milligan. Thompson Creek expects production to commence in the second
half of calendar 2013.

Pascua-Lama ? Barrick reported that, as of the end of April,
approximately 45% of the pre-production budget of $3.3 to $3.6 billion
has been committed. Earthworks are more than 65% complete and
preparations are underway to begin pre-stripping in the fourth quarter.
Barrick estimates production will commence in the first half of 2013.

RECENT DEVELOPMENTS

Updated Annual Reserves for Precious Metals

At the end of calendar 2010, total precious metals reserves as reported
by the operators of the properties subject to the Company′s royalty
interests include 83.9 million ounces of goldand 1.4 billion
ounces of silver. This reflects a gain of 7.0% or 5.4 million ounces of
gold and 4.0% or 53 million ounces of silver, net of depletion, over the
prior calendar year-end.

Third 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 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.

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 #37268428. 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.

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
revenue potential from three of our cornerstone royalties, continued
ramp up at Andacollo and Peñasquito, the commencement of revenue from
Wolverine and Holt, production gains at Andacollo, Peñasquito, Holt and
Wolverine as they work towards full design capacity, commencement of
production from Canadian Malartic, mine development at Mt. Milligan and
Pascua-Lama, expected production at Mt. Milligan, and proven and
probable precious metals reserves subject to the Company′s royalty
interests. 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,
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.

¹ The Company defines free cash flow, a non-GAAP financial
measure, as operating income plus depreciation depletion and
amortization, non-cash charges and impairment of mining assets, if any,
less non-controlling interests in operating income from consolidated
subsidiary (see Schedule A).

² Reserves subject to Royal Gold′s royalty interests.

See footnotes.

FOOTNOTES

¹ Reported production relates to the amount of metal sales
that are subject to our royalty interests for the three months ended
March 31, 2011 and March 31, 2010, as reported to us by the operators of
the mines.

² 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.

³ Revenues consist of provisional payments for concentrates
produced during the current period and final settlements for prior
production periods.

⁴ These royalty interests were acquired in February 2010 as
part of the IRC transaction.

⁵ Royalty percentages: GSR1 and GSR2 ? 0.40 to 5.0%
(sliding-scale); GSR3 ? 0.71%; NVR1 ? 0.39%.

⁶ 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%.

⁷ 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 upheld 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 it 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.

⁸ Production includes approximately 1,400 ounces attributable
to the quarter ended December 31, 2010.

⁹ 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%.

¹⁰ Due to the amount of the initial royalty payment, revenue
was attributed to silver production only.

¹¹ 'Other? includes all of the Company′s non-principal
producing royalties for the three months ended March 31, 2011 and 2010.
Individually, no royalty included within 'Other? contributed greater
than 5% of our total royalty revenue for any of the periods.

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:

Royal Gold, Inc.

Karen Gross

Vice President and Corporate
Secretary

303-575-6504