Royal Gold Acquires Gold Royalty on Ruby Hill Mine in Nevada

Royal Gold, Inc. (NASDAQ:RGLD; TSX:RGL) today announced
the acquisition of a 3.0% net smelter return royalty on the Ruby Hill
gold mine, from International Minerals Corporation (TSX and SIX: IMZ)
for $38 million. The Ruby Hill mine is located in Nevada and operated by
Barrick Gold Corporation.

Tony Jensen, Royal Gold′s President and Chief Executive Officer,
commented, 'We are pleased to enhance our portfolio with the addition of
another gold royalty located in an attractive region of Nevada and
managed by an experienced world-class operator. We expect to receive
revenue from this royalty on current quarter production.?

Ruby Hill is a surface gold mine located in eastern Nevada on the Battle
Mountain/Eureka Trend. Barrick reported that, as of December 31, 2011,
proven and probable reserves include 16.8 million tons of ore, at an
average grade of 0.058 ounces per ton, containing approximately 978,000
ounces of gold. In addition to reserves, Barrick estimates additional
mineralization¹ of 107.6 million tons, at a grade of 0.021
ounces per ton. Calendar year 2011 production was 127,000 ounces of gold.

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 192 properties on
six continents, including interests on 38 producing mines and 25
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 the forward-looking statements and
estimates contained herein. Such forward-looking statements include
statements about the commencement of revenue and the operator′s
estimates of reserves, mineralization, and production. Factors that
could cause actual results to differ materially from such
forward-looking statements include, among others, precious metal prices,
accuracy of reserves and mineralization estimates; performance of and
production at the Ruby Hill gold mine; decisions and activities of the
operator; unanticipated grade, geological, metallurgical, processing or
other problems that may be encountered at the Ruby Hill gold mine;
changes in the project parameters; economic and market conditions; the
ability of the operator to continue production at the Ruby Hill gold
mine 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.

¹ Barrick is a Canadian issuer and reports resources under
National Instrument 43-101, Standards of Disclosure for Mineral
Projects, of the Canadian Securities Administrators. The mineralization
is reported as measured and indicated resources, by Barrick, and is in
addition to mineral reserves.

Royal Gold, Inc.

Karen Gross, 303-575-6504

Vice
President and Corporate Secretary