Royal Gold Increases Gold Stream Interest in the Mt. Milligan Project

Royal Gold, Inc. (NASDAQ:RGLD) (TSX:RGL) today announced it has
agreed to acquire, through its wholly-owned subsidiary RGLD Gold AG, an
additional 15% of the payable gold produced from the Mt. Milligan
copper-gold project, located in British Columbia, from a subsidiary of
Thompson Creek Metals Company, Inc. ('Thompson Creek?) (NYSE:TC)
(TSX:TCM). Consideration for the new transaction is $270 million and
cash payments equal to the lesser of $435 or the prevailing market price
for each payable ounce of gold delivered to Royal Gold (the 'Delivery
Payment?). This restructured Delivery Payment replaces and simplifies
the payment structure in the original Mt. Milligan transaction announced
in July 2010 ('Original Transaction?).

Combined with the Original Transaction, Royal Gold will be entitled to
40% of the payable gold produced from Mt. Milligan for total
consideration of $581.5 million and the Delivery Payment. To date, Royal
Gold has paid approximately $252.6 million to Thompson Creek and will
pay $112 million following closing of the new transaction and the
remaining $216.9 million in scheduled quarterly payments commencing on
March 1, 2012. Royal Gold will use cash on hand to pay the $112 million
and has borrowed $100 million under its credit facility.

Tony Jensen, President and Chief Executive Officer, commented, 'We are
pleased to increase our investment in this high-quality near-term
project, located in the attractive host country of Canada, and to
further our excellent working relationship with Thompson Creek. With an
estimated mine life of 22 years, this opportunity is expected to provide
Royal Gold with a substantial source of long-term gold revenue.?

The Mt. Milligan project is in the middle stages of construction, and
Thompson Creek estimates that production will commence in late calendar
2013. Thompson Creek has reported EPCM progress at 76% for project
engineering, 64% for procurement, 26% for construction, and overall
progress at 43%. Thompson Creek, per a National Instrument 43-101
technical report regarding the Mt. Milligan project filed on SEDAR on
October 13, 2011, has reported that proven and probable reserves total
482 million tonnes (0.20% copper; 0.39 g/t gold), containing 2.1 billion
pounds of copper and 6.0 million ounces of gold. Production is estimated
in the technical report to be approximately 262,000 ounces of gold
annually during the first six years of operation and 194,000 ounces of
gold annually over the life of the mine.

Thompson Creek is a growing, diversified North American mining company.
In addition to owning 100% of the Mt. Milligan copper-gold project, it
owns the Thompson Creek molybdenum mine and mill in Idaho, a
metallurgical roasting facility in Pennsylvania, and a 75% share of the
Endako mine, mill and roasting facility in northern British Columbia.

Royal Gold is a precious metals royalty company engaged in the
acquisition and management of precious metal royalty interests. The
Company owns royalties on 187 properties on six continents, including
royalties on 37 producing mines and 22 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 the operator′s estimated
date for initial production, the estimated gold and copper reserves for
the project, the reserve life of the project, the estimated average
annual production over the first six years and the life of the mine, and
that this transaction is expected to provide Royal Gold with a
substantial source of long-term gold revenue. Factors that could cause
actual results to differ materially from projections include, among
others, precious metals prices, the risks inherent in construction,
development and ramp up of operations of a new mine at Mt. Milligan by
an operator who has not previously operated gold mines, decisions and
activities of the operator of the various properties, 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, operations in land
subject to First Nations jurisdiction in Canada, 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

Karen Gross, 303-575-6504

Vice President and
Corporate Secretary