- Silver reserves increase 16% to 1.2 billion ounces

DENVER, May 20 /PRNewswire-FirstCall/ -- ROYAL GOLD, INC. (Nasdaq: RGLD; TSX: RGL), a leading precious metals royalty company, today announced updated estimates for ore reserves, additional mineralization, and calendar 2009 production forecasts for its royalty portfolio. Updated reserves, additional mineralization and production estimates, as of December 31, 2008, are provided to the Company by the operators of its royalty properties or have been obtained by Royal Gold through publicly available information.

At the end of calendar 2008, total precious metals reserves subject to the Company's royalty interests include 64.2 million ounces of gold and 1.2 billion ounces of silver. This reflects a net gain of 14.7 million ounces of gold and 167 million ounces of silver, representing a 30 % increase in gold reserves and a 16% increase in silver reserves over the prior calendar year-end.

Tony Jensen, President and Chief Executive Officer, commented, "We are pleased to report significant increases in our precious metal reserves. Our reserve growth is largely a result of the portfolio of royalties we acquired in the Barrick transaction and the on-going successes of our royalty operators in converting additional mineralized material into reserves, particularly at the Penasquito, Cortez, Canadian Malartic and Mulatos properties. This increase reinforces our strategy to identify and acquire royalty properties with significant upside potential that are managed by top- quality operators."

PRINCIPAL PRODUCING PROPERTIES

Summarized below are our principal producing and development properties. The Company considers both historical and future expected revenues in determining which royalties in our portfolio are principal to our business.

Cortez - Pipeline Mining Complex (USA, Nevada)

The Cortez Pipeline Mining Complex is a large surface gold mining operation operated by Barrick. Royal Gold holds four gold royalty interests at Cortez, consisting of two sliding-scale gross smelter return ("GSR") royalties ("GSR1" and "GSR2"), a fixed-rate GSR royalty ("GSR3") and a net value return royalty ("NVR1").

The GSR1 and GSR2 royalty rate is currently 5.0% and covers a majority of the Pipeline, South Pipeline, Crossroads area and a portion of the Gap deposit. The GSR3 royalty rate is fixed at 0.71% for the life of the mine and covers the same area as GSR1 and GSR2 combined, except for the Crossroads deposit. The 0.39% NVR1 royalty covers production from the GAS Claims, an area of interest of approximately 4,000 acres that includes the South Pipeline deposit, but excludes the Pipeline and Crossroads deposits. The Company is currently receiving royalty revenue from all four royalties.

Robinson Mine (USA, Nevada)

Royal Gold holds a 3.0% net smelter return ("NSR") royalty on the Robinson mine, a surface copper mine with significant gold credits. The mine is operated by Quadra Mining Ltd. ("Quadra").

Leeville Mining Complex (USA, Nevada)

Royal Gold holds a 1.8% NSR royalty covering a majority of the underground Leeville Mining Complex. Leeville is operated by Newmont Mining Corporation ("Newmont").

Goldstrike Mine - SJ Claims (USA, Nevada)

Royal Gold holds a 0.9% NSR royalty covering a portion of the Betze-Post gold mine, known as the SJ Claims. The Betze-Post mine, which is part of the larger surface Goldstrike operation, is operated by Barrick Gold Corporation ("Barrick").

Penasquito Mine (Mexico, Zacatecas)

Royal Gold holds a 2.0% NSR royalty on all metals produced from the Penasquito project operated by Goldcorp Inc. ("Goldcorp"). The Penasquito project, a surface mine composed of two main deposits called Penasco and Chile Colorado, hosts one of the world's largest gold, silver, and zinc reserves, while also containing large lead reserves. Production commenced in June 2008 from the oxide portion of the deposit. Start-up of the first sulfide circuit is scheduled to begin in the second half of calendar 2009 with production from the second sulfide circuit commencing in the second half of calendar 2010.

Mulatos Mine (Mexico, Sonora)

Royal Gold holds a 1.0% - 5.0% NSR sliding-scale royalty, currently paying at 5.0%. Mulatos is a surface gold mine operated by Alamos Gold Inc. ("Alamos"). The royalty is capped at two million ounces of gold production. As of March 31, 2009, approximately 370,000 cumulative ounces of gold have been produced.

Taparko Mine (West Africa, Burkina Faso)

Royal Gold holds two initial concurrent production payments, both equivalent to GSR royalties, and two subsequent GSR royalties at the Taparko-Bouroum project, a surface gold operation. The project is operated by High River Gold Mines Ltd. ("High River").

The first GSR-equivalent royalty ("TB-GSR1") is fixed at a rate of 15.0%. The second GSR-equivalent royalty ("TB-GSR2") is a sliding- scale royalty ranging from 0.0% to 10.0%, depending upon the price of gold. The TB-GSR2 royalty pays out at a rate of 4.3% when the average monthly gold price ranges between $385 and $430 per ounce. Outside of this range, the royalty rate is calculated by dividing the average monthly gold price by 100 for gold prices above $430 per ounce, or by dividing the average monthly gold price by 90 for gold prices below $385 per ounce (e.g., a $900 per ounce gold price results in a rate of 900/100 = 9.0%). Both TB-GSR1 and TB-GSR2 continue until either total production reaches 804,420 ounces of gold, or Royal Gold receives payments totaling $35 million under TB- GSR1, whichever occurs first. As of March 31, 2009, the Company has recognized revenue totaling $8.8 million on production of 67,000 ounces of gold.

The two subsequent royalties consist of a 2.0% GSR perpetual royalty ("TB-GSR3"), applicable to gold production from defined portions of the Taparko-Bouroum project area, and a 0.75% GSR milling royalty ("TB-MR1"). The TB-MR1 applies to ore that is mined outside of the defined area of the Taparko-Bouroum project that is processed through the Taparko facilities, up to a maximum of 1.1 million tons per year. Both the TB-GSR3 and TB-MR1 royalties commence once TB-GSR1 and TB-GSR2, described earlier, have ceased.

Siguiri (West Africa, Guinea)

Royal Gold holds a 0.0% - 1.875% NSR sliding-scale royalty currently paying 1.875%. Siguiri is a surface gold mine operated by AngloGold Ashanti ("AngloGold"). The royalty is subject to a dollar cap of approximately $12.0 million. As of March 31, 2009, approximately $9.3 million remains under the cap.

Dolores (Mexico, Chihuahua)

Royal Gold holds a 1.25% NSR on gold and a 2.0% NSR on both gold and silver production from the Dolores project, a surface gold and silver mine operated by Minefinders Corporation Ltd. ("Minefinders"). Initial production and associated royalty revenue from the 1.25% NSR royalty commenced in the fourth quarter of calendar 2008. On May 1, 2009, the 2.0% NSR royalty on both gold and silver became effective.

KEY DEVELOPMENT STAGE PROPERTIES

Pascua-Lama (Chile, Region III)

Royal Gold holds a 0.16% - 1.08% sliding-scale NSR royalty on the Pascua-Lama project. Pascua-Lama is owned by Barrick. The NSR royalty is applicable to all gold production from an area of interest in Chile. Royal Gold also holds a 0.216% fixed-rate copper royalty which applies to all of the copper reserves in Chile within the area of interest, but does not take effect until after January 1, 2017.

On May 7, 2009, Barrick announced that it is proceeding to construction with the Pascua-Lama project, and that it has finalized the project's economic parameters, received key construction permits, and satisfactorily resolved key outstanding fiscal matters with the governments of Chile and Argentina. Commissioning is expected in late 2012 and production in early 2013.

Canadian Malartic (Canada, Quebec)

Royal Gold holds a 2.0% - 3.0% sliding-scale NSR royalty on the Canadian Malartic gold project owned by Osisko Mining Corporation ("Osisko"). The NSR royalty is subject to a buy down right of $1.0 - $1.5 million depending upon the price of gold, and is exercisable at any time for one half of the royalty. Osisko is currently developing the Canadian Malartic gold deposit as a large-scale surface mining operation.

OTHER DEVELOPMENTS

Benso (Ghana, Western Region)

In October 2007, Royal Gold purchased a 1.5% NSR royalty on the Benso gold concession from FairWest Energy Corporation for $1.875 million. Benso is located in Ghana and operated by Golden Star Resources Ltd ("Golden Star"). The royalty was subject to a buy back right by Golden Star for Cdn$4.0 million (US$3.4 million). Golden Star exercised its right to repurchase the royalty in May 2009. Since production at the property commenced in August 2008, Royal Gold has received $1.0 million in royalty revenue.

RESERVE AND PRODUCTION INFORMATION

The attached Tables contain information regarding the reserves, additional mineralization, and production for all of the Company's producing and development properties. Tables 1 and 2 show all of our royalty interests with associated reserves and additional mineralized material and are organized by metal and geographic location. Our royalty interests represent only a percentage interest in the reserves and production described in the attached tables. Those percentage interests are based on the terms of the royalty interests applicable to the properties. For further information about our royalty interests, please see our Annual Report on Form 10-K, as well as our other public reports.

CORPORATE PROFILE

Royal Gold is a precious metals royalty company engaged in the acquisition and management of precious metal royalty interests. The Company owns royalties on 117 properties on five continents, including royalties on 27 producing mines and 9 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.royaltygold.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 statements regarding the on-going success of Royal Gold's royalty operators in converting additional mineralized material into reserves; the Company's strategy to identify and acquire royalty properties with significant upside potential that are managed by top- quality operators; production estimates for calendar 2009 provided by third-party operators; reserves and additional mineralization estimates provided by or derived from information provided by third party operators; the sliding-scale features of our royalty structure at certain of our properties; or commencement of production or construction from the operators of certain properties; and the expectation of the royalty payment caps at the Troy and Taparko mines to be met. Like any royalty on a non-producing or not yet in development project, our royalties on development projects are subject to certain risks, such as the ability of the operators to bring the projects into production and operate in accordance with their feasibility studies and the ability of Royal Gold to make accurate assumptions regarding valuation and timing and amount of royalty payments. In addition, many of our royalty interests 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. Factors that could cause actual results to differ materially include, among others, changes in precious metals prices, performance of and production at our royalty properties, decisions and activities of the operators of our royalty properties, mine completion, unanticipated grade, geological, metallurgical, processing or other problems the operators of the mining properties may encounter, changes in project parameters as plans continue to be refined, economic and market conditions, and future financial needs of our operators, as well as other factors described elsewhere in this press release and in our Annual Report on Form 10-K, and other filings with the Securities and Exchange Commission. 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.

TABLE 1

Royal Gold's Royalty Portfolio

Proven and Probable Gold Reserves (1),(2),(3)

as of December 31, 2008 (4),(5)

Mines are in production unless noted as development ("DEV")

PROVEN RESERVES

Avg. Gold

Tons of Gold Contained

Ore Grade Ozs(7)

PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions)

Bald 1.75 -

Moun- 3.5% USA,

tain(8) NSR Barrick Nevada - - -

Cortez

(Pipe- 0.40 -

line) 5.0% USA,

GSR1 GSR Barrick Nevada 3.80 0.095 0.360

Cortez

(Pipe- 0.40 -

line) 5.0% USA,

GSR2 GSR Barrick Nevada 8.29 0.038 0.312

Cortez

(Pipe-

line) 0.71% USA,

GSR3 GSR Barrick Nevada 5.48 0.076 0.414

Cortez

(Pipe-

line) 0.39% USA,

NVR1 NVR Barrick Nevada 3.69 0.047 0.173

Gold 1.0 -

Hill 2.0% Kinross/ USA,

(DEV) NSR Barrick Nevada 0.28 0.013 0.004

Gold- 0.9% USA,

strike(8) NSR Barrick Nevada - - -

Lee- 1.8% USA,

ville(8) NSR Newmont Nevada - - -

Mari-

gold(10) 2.0% Goldcorp/ USA,

(DEV) NSR Barrick Nevada 11.75 0.021 0.251

Robinson 3.0% USA,

NSR Quadra Nevada 130.04 0.007 0.884

Twin 2.0% USA,

Creeks(8) GPR Newmont Nevada - - -

PROBABLE RESERVES

Avg. Gold

Tons of Gold Contained

Ore Grade Ozs(7)

PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions)

Bald 1.75 -

Moun- 3.5% USA,

tain(8) NSR Barrick Nevada - - -

Cortez

(Pipe- 0.40 -

line) 5.0% USA,

GSR1 GSR Barrick Nevada 24.14 0.051 1.227

Cortez

(Pipe- 0.40 -

line) 5.0% USA,

GSR2 GSR Barrick Nevada 74.65 0.032 2.362

Cortez

(Pipe-

line) 0.71% USA,

GSR3 GSR Barrick Nevada 41.32 0.039 1.619

Cortez

(Pipe-

line) 0.39% USA,

NVR1 NVR Barrick Nevada 38.46 0.037 1.419

Gold 1.0 -

Hill 2.0% Kinross/ USA,

(DEV) NSR Barrick Nevada 31.08 0.015 0.459

Gold- 0.9% USA,

strike(8) NSR Barrick Nevada - - -

Lee- 1.8% USA,

ville(8) NSR Newmont Nevada - - -

Mari-

gold(10) 2.0% Goldcorp/ USA,

(DEV) NSR Barrick Nevada 23.89 0.018 0.433

Robinson 3.0% USA,

NSR Quadra Nevada 4.10 0.005 0.021

Twin 2.0% USA,

Creeks(8) GPR Newmont Nevada - - -

PROVEN + PROBABLE RESERVES

Avg. Gold

Tons of Gold Contained

Ore Grade Ozs(7)

PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions)

Bald 1.75 -

Moun- 3.5% USA,

tain(8) NSR Barrick Nevada 27.45 0.026 0.720

Cortez

(Pipe- 0.40 -

line) 5.0% USA,

GSR1 GSR Barrick Nevada 27.94 0.057 1.587(9)

Cortez

(Pipe- 0.40 -

line) 5.0% USA,

GSR2 GSR Barrick Nevada 82.95 0.032 2.674(9)

Cortez

(Pipe-

line) 0.71% USA,

GSR3 GSR Barrick Nevada 46.79 0.043 2.033(9)

Cortez

(Pipe-

line) 0.39% USA,

NVR1 NVR Barrick Nevada 42.15 0.038 1.592(9)

Gold 1.0 -

Hill 2.0% Kinross/ USA,

(DEV) NSR Barrick Nevada 31.37 0.015 0.463

Gold- 0.9% USA,

strike(8) NSR Barrick Nevada 47.82 0.121 5.768

Lee- 1.8% USA,

ville(8) NSR Newmont Nevada 7.68 0.328 2.518

Mari-

gold(10) 2.0% Goldcorp/ USA,

(DEV) NSR Barrick Nevada 35.63 0.019 0.683

Robinson 3.0% USA,

NSR Quadra Nevada 134.14 0.007 0.905

Twin 2.0% USA,

Creeks(8) GPR Newmont Nevada - - 0.080

TABLE 1 (cont.)

Royal Gold's Royalty Portfolio

Proven and Probable Gold Reserves (1),(2),(3)

as of December 31, 2008 (4),(5)

Mines are in production unless noted as development ("DEV")

PROVEN RESERVES

Avg. Gold

Tons of Gold Contained

Ore Grade Ozs(7)

PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions)

Wharf(11) 0.0 -

2.0% USA,

NSR Goldcorp S. Dakota 11.61 0.023 0.270

Canadian

Malartic 2.0 -

(8),(12) 3.0% Osisko Canada,

(DEV) NSR Mining Quebec - - -

St.

Holt- 0.00013 Andrew

Holloway x Gold Gold- Canada,

(13)(DEV) Price fields Ontario 0.11 0.187 0.021

New Island

Resources/

Pine Cove 7.5% Anaconda Canada,

(DEV) NPI Mining Newfoundland 0.00 0.000 0.000

Williams 0.72% Canada,

NSR Barrick Ontario 7.78 0.073 0.567

Dolores 1.25%

(14) NSR

2.0% Mine- Mexico,

NSR(15) finders Chihuahua 62.42 0.023 1.454

El 2.0 -

Chanate 4.0% Capital Mexico,

(16) NSR Gold Sonora 23.03 0.023 0.519

Mulatos 1.0 -

(17) 5.0% Mexico,

NSR Alamos Sonora 13.01 0.050 0.649

Penasquito

(18) 2.0% Mexico,

(Oxide) NSR Goldcorp Zacatecas 63.71 0.006 0.360

Penasquito

(18)

(Sulfide) 2.0% Mexico,

(DEV) NSR Goldcorp Zacatecas 618.62 0.018 11.390

PROBABLE RESERVES

Avg. Gold

Tons of Gold Contained

Ore Grade Ozs(7)

PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions)

Wharf(11) 0.0 -

2.0% USA,

NSR Goldcorp S. Dakota 1.39 0.022 0.030

Canadian

Malartic 2.0 -

(8),(12) 3.0% Osisko Canada,

(DEV) NSR Mining Quebec - - -

St.

Holt- 0.00013 Andrew

Holloway x Gold Gold- Canada,

(13)(DEV) Price fields Ontario 2.84 0.164 0.466

New Island

Resources/

Pine Cove 7.5% Anaconda Canada,

(DEV) NPI Mining Newfoundland 2.57 0.081 0.207

Williams 0.72% Canada,

NSR Barrick Ontario 1.80 0.103 0.185

Dolores 1.25%

(14) NSR

2.0% Mine- Mexico,

NSR(15) finders Chihuahua 47.04 0.021 0.990

El 2.0 -

Chanate 4.0% Capital Mexico,

(16) NSR Gold Sonora 24.52 0.020 0.395

Mulatos 1.0 -

(17) 5.0% Mexico,

NSR Alamos Sonora 39.52 0.035 1.397

Penasquito

(18) 2.0% Mexico,

(Oxide) NSR Goldcorp Zacatecas 137.40 0.003 0.430

Penasquito

(18)

(Sulfide) 2.0% Mexico,

(DEV) NSR Goldcorp Zacatecas 493.53 0.011 5.250

PROVEN + PROBABLE RESERVES

Avg.