Royal Gold Reports Record Results for First Quarter Fiscal Year 2012

Royal Gold, Inc. (NASDAQ:RGLD; TSX: RGL) today announced record
net income attributable to Royal Gold stockholders of $22.5 million, or
$0.41per basic share, on record royalty revenue of $64.5 million
for the first quarter of fiscal 2012. This compares to net income
attributable to Royal Gold stockholders of $11.8 million, or $0.22 per
basic share, on royalty revenue of $45.3 million for the first quarter
of fiscal 2011.

Net income available to Royal Gold stockholders was impacted by the
restructuring of a non-principal royalty, that resulted in a non-cash
charge of $1.3 million, or $0.02 per basic share on an after tax basis.
Excluding this charge, net income available to Royal Gold stockholders
would have been $0.43 per basic share for the quarter.

Adjusted EBITDA¹ for the first quarter of fiscal 2012 was a
record $57.6 million representing 89% of revenue, an increase of 41%
compared to Adjusted EBITDA of $40.8 million or 90% of revenue for the
prior year period. Cash flow from operations for the quarter was $46.2
million or $0.84 per share compared with $34.2 million or $0.62 per
share for the first quarter of fiscal 2011.

The 42% increase in revenue for the quarter was largely driven by higher
average gold and other metal prices, significantly increased production
at our cornerstone properties, including Andacollo, Voisey′s Bay and
Peñasquito, and new revenue from Holt and Canadian Malartic. The average
price of gold for the first fiscal quarter was $1,702 per ounce compared
with $1,227 per ounce for the comparable period, representing a 39%
increase.

As of September 30, 2011, the Company had a working capital surplus of
$148.5 million. Current assets were $184.5 million (including $123.4
million in cash and equivalents), compared to current liabilities of
$36.0 million, resulting in a current ratio of 5 to 1. In addition to
available working capital, the Company had $155 million available under
its revolving line of credit. Total debt outstanding under the Company′s
credit facilities was $192.2 million as of September 30, 2011.

Tony Jensen, President and CEO, commented, 'Our record financial results
are now reflecting the many investments we have made over the past
several years, as well as strong metals prices. We anticipate further
production increases over the next few quarters from Andacollo,
Peñasquito, Holt, Las Cruces and Canadian Malartic as they all work to
achieve full design capacity. And, construction at two key development
properties, Pascua-Lama and Mt. Milligan, remains on schedule. We expect
these properties to play a significant role in driving future growth.?

PROPERTY HIGHLIGHTS

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

Andacollo ? Teck reported that activities to increase plant
throughput to meet or exceed design capacity of 55,000 tonnes per day
are underway and progressing on schedule. The installation of a small
crusher to feed coarse ore to the pebble crusher and the increased power
to the SAG mill motor were both completed during the quarter. Teck also
plans to install a 20,000 tonne per day pre-crusher plant during the
first quarter of 2012. In addition, Teck continues to conduct a
feasibility study which is expected to be completed by the end of
calendar 2011 to evaluate the possibility of increasing annual copper
production to 100,000 to 120,000 tonnes.

Peñasquito ? Goldcorp reported record average throughput of
102,000 tonnes per day in September offsetting lower production in July
and August resulting from sulfide plant modifications and tests.
Goldcorp also announced that progress continued on the supplemental ore
feed system to the high pressure grinding roll circuit and the
enhancement of the tailings dam facility to allow for additional
retention capacity. Both of these projects are expected to be completed
by the end of 2011. Goldcorp expects to reach its 130,000 tonne per day
design throughput by the end of the first quarter of calendar 2012.

Robinson ? Quadra reported that localized slope stability issues
impacted calendar third quarter output but production improved as mining
moved into the lower benches of the Ruth pit and higher grade ores were
accessed. However, due to a re-sequencing of the mine plan and delays in
accessing a portion of the higher grade material that was originally
expected to be mined in the fourth calendar quarter, Quadra reduced
their 2011 calendar-year copper guidance from between 105 to 120 million
pounds to a range between 95 and 100 million pounds.

Mulatos ? Alamos reported that its primary cyanide supplier
resumed normal shipments in August and that an additional shipment of
cyanide from an alternate supplier will increase cyanide concentration
levels in the leach pad so that gold deferred from prior months can be
extracted.

Dolores ?Minefinders reported that production for the
quarter was also affected by the cyanide shortage, timing of ore
placement on the pad, and a crushed collection pipe on the west side of
the phase 2 leach pad. Minefinders expects production to improve in the
calendar fourth quarter with cyanide supplies and concentrations
returning to normal levels. Repair work on the collapsed pipe is
expected to be completed during the fourth calendar quarter.

Canadian Malartic ? Osisko reported that quarterly mill
production was 67% of designed capacity. They continue to advance the
installation of two cone crushers to achieve an overall mill throughput
of 55,000 to 60,000 tonnes per day. The first cone crusher is expected
to be operational in the first quarter of calendar 2012, and the second
cone crusher is expected to arrive on site in the early part of the
second quarter of calendar 2012.

Holt ? St Andrew Goldfields reported that production continued to
increase during the quarter as scheduled and that development activities
at the mine have improved. Ramp advancement, footwall access, stope
development and long-hole mining in Zone 4 will be the primary focus for
the remainder of calendar 2011. St Andrew Goldfields expects to reach
its steady state production rate of 1,000 tonnes per day by the end of
the first quarter of calendar 2012.

Las Cruces ? Inmet reported that cathode copper production
reached 11,400 tonnes during the quarter, with record monthly production
of 4,500 tonnes in August. Reactor performance continues to improve and
Inmet expects to reach full design production capacity of 72,000 tonnes
of copper cathode per year by the end of calendar year 2011.

Mt. Milligan ? Construction continued at the Mt. Milligan project
during the quarter and the operator reports the overall project remains
on schedule for completion in the fourth quarter of calendar 2013.

Pascua-Lama ? Barrick reported that development at Pascua-Lama
advanced during the quarter with first production on track to commence
in mid-2013. Approximately 50% of the projected capital costs of $4.7 to
$5.0 billion have been committed, as of September 30, 2011. In Chile,
approximately 80% of the earthworks are complete. Barrick also
reiterated that they expect annual gold production to be 800,000 to
850,000 ounces in the first full five years of operation.

First quarter fiscal 2012 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 royalty and similar
production-based interests. The Company owns royalties on 187 properties
on six continents, including royalties on 37 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.

Note: Management′s conference call reviewing the first 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 #37274994. 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 further
production increases at Andacollo, Peñasquito, Holt, Las Cruces and
Canadian Malartic; properties reaching full-design capacity;
construction on schedule at Pascua-Lama and Mt. Milligan; 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, copper and
nickel 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.

Royal Gold, Inc.

Karen Gross, 303-575-6504

Vice
President and Corporate Secretary