Royal Gold Reports Record Results for Fourth Quarter and Fiscal Year 2011

Royal Gold, Inc. (NASDAQ:RGLD) (TSX:RGL) today announced record
net income attributable to Royal Gold stockholders of $71.4 million, or
$1.29 per basic share, on record royalty revenue of $216.5 million for
fiscal 2011 (ended June 30). This compares to net income attributable to
Royal Gold stockholders for fiscal 2010 of $21.5 million, or $0.49 per
basic share, on royalty revenue of $136.6 million. Net income available
to Royal Gold stockholders for fiscal 2010 was impacted by pre-tax
effects of severance and acquisition costs of approximately $19.4
million, related to the Company′s acquisition of International Royalty
Corporation ('IRC?). Excluding the after tax effect of these items, net
income available to Royal Gold stockholders would have been $35.8
million, or $0.82 per basic share for fiscal 2010.

For the fourth quarter ended June 30, 2011, net income attributable to
Royal Gold stockholders was $21.7 million, or $0.39 per basic share, on
record royalty revenue of $59.3 million. This compares to net income
attributable to Royal Gold stockholders of $10.5 million, or $0.21 per
basic share, on royalty revenue of $40.7 million for the quarter ended
June 30, 2010.

Free cash flow¹ for fiscal 2011 was $190.2 million ($3.45 per
basic share), representing 88% of revenue. This compares to free cash
flow for fiscal 2010 of $100.1 million ($2.29 per basic share), or 73%
of revenue. Free cash flow as a percentage of revenue for fiscal 2010
was negatively impacted due to $19.4 million of costs relating to the
acquisition of IRC. Before IRC related costs, free cash flow for fiscal
2010 was 87% of revenue.

Free cash flow for the fourth quarter of fiscal 2011 was $51.6 million
($0.94 per basic share), or 87% of revenue, compared to free cash flow
of $35.1 million ($0.78 per basic share), or 86% of revenue, for the
prior year period.

The 59% increase in revenue for fiscal 2011 was largely driven by
production increases at Andacollo, Peñasquito, and Voisey′s Bay, and
higher average gold and other metal prices. The average price of gold in
fiscal 2011 was $1,369 per ounce compared with $1,089 per ounce in
fiscal 2010, representing a 26% increase.

As of June 30, 2011, the Company had a working capital surplus of $140.4
million. Current assets were $169.3 million (including $114.2 million in
cash and equivalents), compared to current liabilities of $28.9 million,
resulting in a current ratio of 6 to 1. Total debt outstanding under the
Company′s credit facilities was $ 226.1 million as of June 30, 2011.

Tony Jensen, President and CEO, commented, 'Fiscal 2011 was an
outstanding year for Royal Gold as we marked our tenth straight year of
revenue and free cash flow growth. Our cornerstone properties provided
substantial revenue as the Peñasquito and Andacollo properties reached
commercial production and the Voisey′s Bay labor dispute was resolved.
We completed three significant transactions during the fiscal year. The
first two consisted of increasing our royalty interest on the
Pascua-Lama project, and acquiring a gold stream from the Mt. Milligan
project. We expect that both of these additions will have a significant
impact on our long-term revenue profile. The third transaction consisted
of acquiring an option on the KSM project, which, if exercised, would
add an additional long-life royalty to our portfolio. Also, during the
second half of the year, we saw initial contributions from the Canadian
Malartic, Holt and Wolverine mines, positioning us well for both near
and long-term revenue growth.?

RECENT DEVELOPMENTS

Signing of Option Agreement to Acquire Royalty on the
Kerr-Sulphurets-Mitchell ('KSM?) Project

In June, 2011, Royal Gold acquired an option to purchase a 1.25% net
smelter return ('NSR?) royalty on all of the gold and silver production
from the KSM project in northwest British Columbia. As part of the
transaction, the Company purchased 1,019,000 shares of Seabridge common
stock for C$30million (US$30.7million), which represents
a 15.0% premium to the volume weighted average trading price of
Seabridge common shares on the TSX for the five trading-day period
ending two days prior to the public announcement on June 14, 2011. Royal
Gold may acquire the NSR royalty by holding the shares for a minimum of
nine months and paying C$100 million.

Under the agreement, 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.

Final Court Ruling on Holt Royalty Obligation

In May 2011, the Ontario Appeals Court upheld the trial court′s July
2009 decision clarifying the royalty obligations on production from the
Holt mining project in Ontario, Canada. The Court held that Royal Gold
is entitled to payment from Newmont Canada of the full amount of the
sliding-scale royalty.

PROPERTY HIGHLIGHTS

Highlights at certain of the Company′s principal producing and
development properties during the quarter ended June 30, 2011 are listed
below:

Andacollo ? Teck reported that concentrator throughput was
approximately 39,000 tonnes per day compared with designed capacity of
55,000 tonnes per day. Planned improvements to increase throughput to
design capacity over the next three quarters include installation of a
small crusher to feed coarse ore to the pebble crusher, increases in the
SAG motor capacity and installation of a 20,000 tonne per day crusher
plant. In addition, Teck is conducting an 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 ? Vale provided a Long Harbour Project update in
June. The Long Harbour Project is a hydrometallurgical facility under
construction in Newfoundland and Labrador to treat Voisey′s Bay ore.
They estimate that the plant will be completed in early calendar 2013.

Peñasquito ? Goldcorp reported that higher grades and recoveries
of gold, silver, lead and zinc were offset by lower processing rates due
to lower than forecast pebble feed to the high pressure grinding roll
circuit, and slower than expected progress on the raising of the
tailings dam embankment. Goldcorp expects these issues to be resolved by
the end of the calendar year. They also reported that oxide gold
production will be delayed in the second half of the year due to
restricted cyanide deliveries resulting from supplier shortages. Gold
production for calendar 2011 is now estimated to be 250,000 ounces
compared to the operator′s earlier guidance of 350,000 ounces.

Robinson ? Quadra reported that the removal of mud from the
bottom of the Ruth Pit has been completed and the secondary access ramp
remains on track for completion in August. They reiterated that
production is expected to increase in the second half of calendar 2011
due to access to higher grade material at the bottom of the pit and
additional haulage capacity. Quadra also announced that they have
reduced their 2011 annual guidance for gold production to 25,000 to
30,000 ounces from 45,000 to 50,000 ounces due to lower grades and
recoveries in the first half of the year.

Mulatos ?In May 2011, Alamos lowered their production
guidance to between 145,000 and 160,000 ounces of gold from 160,000 and
175,000 ounces of gold due to lower than budgeted crusher throughput.
Although second quarter production was impacted by extreme drought
conditions and cyanide supplier issues, Alamos stated that they expect
to recover the deferred production throughout the remainder of calendar
2011. They reported that crusher throughput improved, resulting in a
quarterly average of about 15,000 tonnes per day and they expect to meet
this throughput rate for the remainder of calendar 2011. Alamos also
reported that construction is underway on a high-grade mill that could
boost output by another 60,000 ounces per year. Production from this new
gravity mill is expected to commence in 2012.

Dolores ?Minefinders reported record quarterly production
of approximately 21,000 ounces of gold and 1.1 million ounces of silver,
increases of 6% and 23%, respectively, over the previous quarter. They
continued to sustain improved leach results on the Stage 2 pad and are
realizing the benefits of higher average grades and mining practice
improvements resulting in decreased dilution.

Canadian Malartic ? Osisko announced that they reached commercial
production on May 19 and said that production ramp up is progressing on
a steady basis with an average throughput of approximately 38,913
tonnes, as of mid June. They also announced that their operating focus
for the next six months will be to achieve full design capacity of
55,000 tonnes per day and optimize mine performance.

Holt ? St Andrew Goldfields reported that development of the Holt
Mine progressed slower than anticipated which was coupled with lower
than expected ore grades. For the remainder of calendar 2011, ramp,
footwall access, stope development and long-hole mining will be their
primary focus. St. Andrew Goldfields reduced its production guidance at
Holt to between 24,000 to 28,000 ounces from 45,000 to 50,000 ounces.
They expect between 13,000 to 17,000 ounces of production during the
second half of calendar 2011.

Mt. Milligan ? Thompson Creek announced that the development of
the mine and the construction of the processing plant are proceeding in
accordance with the planned schedule. Project engineering, design and
procurement are more than half complete, construction of the camp is
complete, and the key dam structure for water retention is in place.
Spending through June 30, 2011 is 16% ($207.7 million) of the estimated
C$1.3 billion project total, and Thompson Creek stated that the project
is on schedule for completion in the fourth quarter of calendar 2013.

Pascua-Lama ? Barrick reported that projected capital costs for
Pascua-Lama have increased from $3.3 - $3.6 billion to $4.7 - $5.0
billion. They also reported that expected annual gold production has
increased from 775,000 ounces to 800,000 - 850,000 ounces in the first
full five years of operation.

Full-year and fourth quarter fiscal 2011 production and revenue for the
Company′s principal royalty interests are shown in Tables 1 and 2. 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 royalty and similar
production based interests. The Company owns royalties on 184 properties
on six continents, including royalties on 36 producing mines and 21
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 fourth quarter
and year-end 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
#37272734. 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
impact of the acquisitions at Pascua-Lama and Mt. Milligan; exercise of
the option at the KSM project; near and long-term revenue growth; and
the operators′ expectation of construction, ramp up, production and
other developments at various mines. 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, 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
subsidiaries (see Schedule A).

FOOTNOTES

¹ Reported production relates to the amount of metal sales
that are subject to our royalty interests for the periods ended June 30,
2011 and June 30, 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
46,000 cumulative payable ounces produced as of June 30, 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 732,000 ounces of
cumulative production, as of June 30, 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 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%.

⁸ 'Other? includes all of the Company′s non-principal
producing royalties for the periods ended June 30, 2011 and 2010.
Individually, no royalty included within 'Other? contributed greater
than 5% of our total royalty revenue for any of the periods.