Royal Gold Enters into an Option Agreement to Acquire a Royalty on the Kerr-Sulphurets-Mitchell Project

Royal Gold, Inc. (NASDAQ:RGLD)  (TSX:RGL), today announced
that it has entered into agreements with Seabridge Gold, Inc.
('Seabridge?) to acquire an option to purchase a 1.25% net smelter
return ('NSR?) royalty on all of the gold and silver production from the
Kerr-Sulphurets-Mitchell ('KSM?) project in northwest British Columbia.
Royal Gold has also agreed to purchase 1,019,000 shares of Seabridge
common stock for C$30 million (US$30.6 million using a Canadian Dollar
exchange rate of 0.9791 as of June 15, 2011). The royalty option is
contingent upon Royal Gold holding the shares for a minimum of nine
months, and paying C$100 million if the option is exercised.

Pursuant to the agreements, Royal Gold may increase the royalty to a
2.0% NSR by purchasing, within 18 months of the first share purchase, an
additional C$18.0 million in Seabridge common shares, at a 15% premium
to the then market price, holding the additional Seabridge shares for a
minimum of nine months, and paying an additional consideration of C$60
million if the option is exercised.

The C$30 million share purchase is priced at a 15.0% premium over the
weighted average trading price of Seabridge common shares on the TSX for
the five day trading period ending 2 days prior to today′s announcement.
The first share purchase is expected to occur following TSX approval.

Royal Gold does not expect to exercise the royalty option until the
project achieves certain permitting and financing requirements and a
decision to construct has occurred. The royalty options will remain
exercisable for 60 days following Royal Gold′s satisfaction that the
project has received all material approvals and permits, has sufficient
committed funding for construction, and certain other conditions have
been met. The exercise price for the royalty option is payable in three
equal installments over an 18-month period from the date of exercise.
Proceeds of the option exercise will be dedicated to develop and
construct the mining operations.

Tony Jensen, Royal Gold President and CEO, stated, 'This transaction
offers Royal Gold an excellent entry point into one of the largest
undeveloped gold deposits in the world. Once built, the economies of
scale are expected to provide for low production costs and a robust
production schedule, over a projected 50+ year mine life. These
features, and the advantages of being located in British Columbia,
Canada, fit well into our development portfolio as we layer in our next
generation of growth.?

The KSM deposit has proven and probable reserves of 2.2 billion tonnes
at an average grade of 0.55 grams per tonne of gold (38.5 million
ounces), 0.21% copper (10 billion pounds), and 3.04 grams per tonne
silver (214 million ounces). Based on Seabridge′s Preliminary
Feasibility Study, precious metal production could average 546,000
ounces of gold and 2.7 million ounces of silver, over the 52-year mine
life, at the planned 120,000 tonne per day operating rate. Seabridge is
currently conducting exploration with the goal of enhancing economics by
converting resources near and within designed pits into reserves. They
are also optimizing the project development options as they move it
towards final feasibility.

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 187 properties on six
continents, including interests on 36 producing mines and 23 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 when TSX approval is
expected to take place for the share purchase, when, and whether, Royal
Gold expects to exercise its royalty options on the KSM project, how
proceeds from the option exercise will be utilized, whether the KSM
project will have economies of scale that provide for low production
costs and a robust production schedule, whether Royal Gold′s development
portfolio will offer growth, the estimated mine life, reserve estimates,
production estimates, conversion of resources into reserves, and when
feasibility will be completed on the KSM project. Factors that could
cause actual results to differ materially from projections include,
among others, precious metals prices, the risks inherent in
construction, results of further exploration efforts, results of
feasibility studies, development and ramp-up of operations of a new mine
at the KSM project by an operator who has not previously operated gold
mines, decisions and activities of the operator, 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 royalty
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

Vice President and Corporate
Secretary

(303) 575-6504