Royal Gold Reports Fiscal Third Quarter 2009 Results

- Record revenues of $20.8 million, an 11% increase over comparable quarter





DENVER, May 7  /PRNewswire-FirstCall/ -- ROYAL GOLD, INC. (Nasdaq: RGLD; TSX: RGL), a leading precious metals royalty company, today announced record royalty revenue of $20.8 million for the third quarter of fiscal 2009 and net income of $4.1 million, or $0.12 per basic share.  This compares to royalty revenue of $18.7 million for the third quarter of fiscal 2008 and net income of $6.9 million, or $0.11 per basic share.(2)

For the nine-month period ended March 31, 2009, royalty revenue was $51.5 million and net income was $31.3 million, or $0.92 per basic share. Nine-month net income included the effects of a one-time, pre-tax gain of $31.5 million, or $0.60 per basic share after taxes, resulting from the Company's restructuring of its GSR2, GSR3 and NVR1 royalties at the Cortez Pipeline Mining Complex ("Cortez").  Excluding this one-time gain, the Company's net income for the nine-month period was $10.8 million, or $0.32 per basic share.  This compares to royalty revenue of $45.9 million and net income of $17.0 million, or $0.41 per basic share, for the nine-month period ended March 31, 2008.

Increased royalty revenue for the third fiscal quarter was largely driven by stronger production at Taparko and contributions from various properties acquired in the Barrick transaction, partially offset by lower gold and copper prices and decreased contributions from Cortez and Robinson.  Net income decreased for the three month period ended March 31, 2009, due to an increase in depreciation, depletion and amortization charges of $4.0 million which was primarily attributable to increased production from Taparko and new production from the Penasquito, Dolores and the Barrick royalties.

Free cash flow for the current quarter was $17.5 million, representing 84% of revenues.  This compares to free cash flow for the third quarter of fiscal 2008 of approximately $15.5 million, or 83% of revenues.  For the nine-month period ended March 31, 2009, free cash flow was $42.3 million, representing 82% of revenues compared to free cash flow for the nine-month period ended March 31, 2008, of $35.9 million, or 78% of revenues.

As of March 31, 2009, the Company had a working capital surplus of $61.7 million.  Current assets were $72.3 million (including $50.5 million in cash and equivalents), compared to current liabilities of $10.6 million, resulting in a current ratio of 7 to 1.

Tony Jensen, President and CEO, commented, "We are pleased with the strong quarterly performance driven by our broad and diversified royalty portfolio which is now comprised of 27 producing properties. We continue to execute on our strategic growth plan.  Our recent agreement with Teck on the Andacollo mine further enhances our world-class gold royalty portfolio.  This transaction maintains our focus on gold and we expect it to  be a core royalty for years to come."

  (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
      minority interest in operating income from consolidated subsidiary
      (see Schedule A).
  (2) Certain figures in this press release related to prior quarter
      information have been restated.  See our amended 10-K/A filed with the
      SEC on November 6, 2008.
  PROPERTY HIGHLIGHTS

  Taparko


Taparko sales for the quarter were approximately 23,000 ounces of gold for which the Company recognized $5.1 million in royalty revenue.  During the quarter, the mill availability was 68% as High River completed maintenance focused on improving mill performance and reducing drive train vibrations.

Pursuant to the Amended and Restated Funding Agreement dated February 22, 2006 (the "Funding Agreement") between Royal Gold, Inc. and Somita SA ("Somita"), a 90% owned subsidiary of High River and the operator of Taparko, Somita is in breach of certain obligations under the Funding Agreement.  As security for the Company's investment in Somita, two of High River's subsidiaries have pledged their equity interests in Somita and High River (West Africa) Ltd., the corporate parent of Somita.   In addition, Royal Gold obtained as collateral a pledge of shares of certain equity investments in public companies held by High River.  Royal Gold has not agreed to forbear pursuing any of its remedies under the Funding Agreement or other agreements with High River and its affiliates.

Cortez

At the Cortez property, the Company recognized $3.8 million in revenue on production of approximately 64,000 ounces, compared to revenue of $5.3 million on production of approximately 117,000 ounces for the comparable prior year quarter.  The production decrease was due mainly to lower grades being mined during the current period. Barrick expects production to improve in the coming quarters as higher grade material is mined.

Robinson

For the quarter, the Company recognized $1.8 million in revenue for the Robinson mine, compared to $4.4 million for the comparable prior year quarter. This decrease in royalty revenue was due to lower copper prices, a decrease in gold and copper sales, and negative final pricing adjustments of approximately $210,000 during the current period.  The average spot price of copper for the quarter was $1.56 per pound as compared to $3.52 per pound in the third quarter of fiscal 2008.

Fiscal third quarter production and revenue for the Company's principal active royalty interests are shown in Table 1.  For more detailed information about each of our royalty properties, please refer to the Company's most recent Annual Report on Form 10-K/A, filed with the SEC on November 5, 2008, and our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, or our website located at http://www.royalgold.com/.

  OTHER DEVELOPMENTS

  Andacollo Transaction


On April 6, 2009, the Company announced that it signed a definitive agreement with a subsidiary of Teck Resources Limited ("Teck") to acquire an interest in the gold production at the Andacollo mine in Chile.  The purchase price, after adjustments pursuant to the definitive agreement, is $218 million in cash and 1,204,136 shares of Royal Gold's Common Stock. Royal Gold will receive 75% of the gold produced from the sulfide portion of the Andacollo deposit until 910,000 payable ounces of gold have been sold, after which Royal Gold will receive 50% of all future payable gold production.   Teck expects initial production from the sulfide deposit to begin in late calendar 2009 and reach commercial production in the first half of calendar 2010.

Teck estimates the sulfide reserves to contain proven and probable mineral reserves of approximately 393.5 million tonnes grading 0.13 grams of gold per tonne. This equates to 1.6 million contained ounces of gold in the sulfide reserves, which will be mined over 20 years of production. Over the first 10 years of the mine life, Teck expects production will average 53,000 ounces of gold and 76,000 tonnes of copper in concentrate annually.  Royal Gold's interest does not apply to the production of copper.

The transaction is subject to completion of concentrate marketing for a specified percentage of production from the Andacollo mine, the condition that material governmental approvals are not withdrawn or challenged, satisfactory completion of certain limited outstanding due diligence and other customary closing conditions.  Closing is scheduled prior to the end of October 2009.

Equity Offering

In April 2009, Royal Gold sold 6,500,000 shares of common stock at a price of $38.00 per share.  Proceeds to the Company from the offering, net of commission and estimated expenses, were approximately $235 million.  The proceeds from the offering will be used primarily to pay the cash component of the Andacollo transaction.  The underwriters' over-allotment option for 975,000 additional shares of common stock is not expected to be exercised and will expire on May 7, 2009.

Battle Mountain Transaction

On October 24, 2007, Royal Gold completed the acquisition of Battle Mountain Gold Exploration Corp. ("Battle Mountain") pursuant to an Amended and Restated Agreement and Plan of Merger ("Merger Agreement").  Pursuant to the Merger Agreement, consideration of 37,418 shares of Royal Gold common stock and approximately $100,000 in cash was held back from the Battle Mountain stockholders subject to the settlement of certain Battle Mountain litigation.  All of the parties have agreed, in principal, to settle the litigation.  Upon settlement, each former Battle Mountain shareholder who made a cash election will receive a payment of approximately $0.010897 per share of Battle Mountain common stock, and each former Battle Mountain shareholder who made, or was deemed to have made, a share election will receive approximately 0.000327154 shares of Royal Gold Common Stock for each share of Battle Mountain common stock.

About Royal Gold

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 8 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 http://www.royalgold.com/.

ROYALTY DEFINITIONS

The Company's producing and development royalty portfolio contains several different types of royalties which are defined as follows:

Royalty - the right to receive a percentage or other denomination of mineral production from a resource extraction operation.

Gross Smelter Return ("GSR") Royalty - a defined percentage of the gross revenue from a resource extraction operation, less, if applicable, certain contract-defined costs paid by or charged to the operator.

Net Smelter Return ("NSR") Royalty - a defined percentage of the gross revenue from a resource extraction operation, less a proportionate share of incidental transportation, insurance, refining and smelting costs.

Net Value Royalty ("NVR") - a defined percentage of the gross revenue from a resource extraction operation, less certain contract-defined transportation costs, milling costs and taxes.

Gross Proceeds Royalty ("GPR") - a royalty in which payments are made on contained ounces rather than recovered ounces.

Note: Management's conference call reviewing the third quarter fiscal 2009 results will be held today at 10:00 a.m. Mountain Time (noon Eastern Time) and will available by calling [phone] (North America) or [phone] (international), access #84855470.  The call will be simultaneously broadcast on the Company's web site at http://www.royalgold.com/ under the "Presentations" section.  A replay of this web cast 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 regarding Royal Gold's broad and diversified royalty portfolio, the expectation of Royal Gold's strategic growth plan, the Andacollo transaction's focus on gold and that the Andacollo royalty will be a core royalty for years to come, Barrick's expectation of improved production and higher grade material at Cortez, operators' expectations on the commencement or ramp up of production, operator's reserve or production estimates, operator's expectations of mine life and the expectation of when the Andacollo transaction will close.  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, changes in project parameters as plans continue to be refined, economic and market conditions, liquidity and production problems at Taparko and other royalty properties, the Company's exercise of its rights under the Taparko Funding Agreement, buy down rights at Malartic, litigation, the closing of the Andacollo transaction, the ability of the operator to bring the Andacollo project into production as expected, and other subsequent events, as well as other factors described in the Company's Annual Report on Form 10-K 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 minority interest in operating income of consolidated subsidiary.  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.

                                      TABLE 1

                            Third Quarter Fiscal 2009
            Royalty Production and Revenue for Principal Royalty Interests

                                                         QUARTER ENDED
                                                         MARCH 31, 2009
                                                          (Unaudited)

                                                     Royalty     Reported
                                                     Revenue    Production
  PROPERTY        ROYALTY       OPERATOR     METAL ($Millions)     (1)

  Taparko         TB-GSR1(2)     High River   Gold      5.1     22,963 oz.
                  TB-GSR2(2)

  Cortez          GSR1 and       Barrick      Gold      3.8     63,956 oz.
                  GSR2(3)
                  GSR3(3)
                  NVR1(3)

  Mulatos         1.0 - 5.0%     Alamos       Gold      1.9     41,871 oz.
                  NSR(5)

  Robinson(6)     3.0% NSR       Quadra       Gold      1.8     30,257 oz.
                                             Copper               34.5M lbs.

  Leeville        1.8% NSR       Newmont      Gold      1.7    106,767 oz.

  Siguiri         0.00 - 1.875%  AngloGold    Gold      1.3     79,836 oz.
                  NSR(7)          Ashanti

  Goldstrike      0.9% NSR       Barrick      Gold      1.1    136,733 oz.

  Penasquito      2.0% NSR       Goldcorp     Gold      0.4     12,027 oz.
   (oxide)                                   Silver               0.6M oz.

  Dolores         1.25% NSR(9)   Minefinders  Gold      0.2     14,169 oz.
                  2.0% NSR                   Silver                  -

  Other
   Royalty
   Properties(10) -              -          Various     3.5          -

  Total
   Royalty
   Revenue                                             20.8


                                                         QUARTER ENDED
                                                         MARCH 31, 2008

                                                     Royalty     Reported
                                                     Revenue    Production
  PROPERTY        ROYALTY       OPERATOR     METAL ($Millions)     (1)

  Taparko         TB-GSR1(2)     High River   Gold      3.1     14,224 oz.
                  TB-GSR2(2)

  Cortez          GSR1 and       Barrick      Gold      5.3(4) 116,749 oz.
                  GSR2(3)
                  GSR3(3)
                  NVR1(3)

  Mulatos         1.0 - 5.0%     Alamos       Gold      0.4     32,081 oz.
                  NSR(5)

  Robinson(6)     3.0% NSR       Quadra       Gold      4.4     32,313 oz.
                                             Copper               38.9M lbs.

  Leeville        1.8% NSR       Newmont      Gold      1.9    113,685 oz.

  Siguiri         0.00 - 1.875%  AngloGold    Gold        -(8)       -(8)
                  NSR(7)          Ashanti

  Goldstrike      0.9% NSR       Barrick      Gold      1.2    145,369 oz.

  Penasquito      2.0% NSR       Goldcorp     Gold        -(8)       -(8)
   (oxide)                                   Silver

  Dolores         1.25% NSR(9)   Minefinders  Gold        -(8)       -(8)
                  2.0% NSR       Silver

  Other
   Royalty
   Properties(10) -              -          Various     2.4          -

  Total
   Royalty                                             18.7
   Revenue                                        (As Restated)



  Footnotes follow on page 7.

                                 FOOTNOTES

  (1)  Reported production relates to the amount of metal sales that are
       subject to our royalty interests for the periods ended March 31, 2009
       and March 31, 2008, as reported to us by the operators of the mines.

  (2)  Royalty percentages:  TB-GSR1 - 15.0%; TB-GSR2 - 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%).  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 royalty
       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 have ceased.  Both TB-GSR1 and TB-GSR2 continue until either
       production reaches 804,420 ounces of gold, or payments totaling
       $35 million under TB-GSR1 are received, whichever comes first.  As of
       March 31, 2009, Royal Gold has recognized approximately $8.8 million
       in royalty revenue under TB-GSR1 which is attributable to cumulative
       production of 67,000 ounces of gold.

  (3)  Royalty percentages:  GSR1 and GSR2 - 0.40 - 5.0% (sliding-scale);
       GSR3 - 0.71%; NVR1 - 0.39%.  As of October 1, 2008, the GSR2 royalty
       percentage was restructured to match the current GSR1 rate.

  (4)  Royalty revenue has been restated for fiscal 2008.

  (5)  The Company's sliding-scale royalty is subject to a 2.0 million ounce
       cap on gold production.  There have been approximately 370,000 ounces
       of cumulative production, as of March 31, 2009.

  (6)  Revenues consist of provisional payments for concentrates produced
       during the current period and final settlements for prior production
       periods.

  (7)  The Company's royalty is capped once payments of approximately
       $12.0 million have been received.  As of March 31, 2009,
       approximately $9.3 million remains unrecognized under the cap.  NSR
       sliding-scale schedule (price of gold per ounce - royalty rate as of
       3/31/09): $0 to $478.10 - 0.00%; $478.11 to $546.41 - 0.625%; $546.42
       to $580.57 - 0.875%; $580.58 to $614.72 - 1.125%; $614.73 to
       $648.87 - 1.50%; $648.88 and above - 1.875%.  The sliding-scale
       schedule is adjusted based on the average of the United States,
       Australian and Canadian Consumer Price Indices on a quarterly basis.
       The most current rate available is reflected herein.

  (8)  Royalty revenue commenced in June 2008 for Penasquito; October 2008
       for Siguiri; and December 2008 for Dolores.

  (9)  Revenue only pertains to the 1.25% NSR royalty.  The 2.0% NSR royalty
       becomes effective once the mine reaches 75% of commercial production,
       which the operator expects to be reached during the second quarter of
       calendar 2009.

  (10) Royalties included in the "Other" category that were acquired in the
       Barrick transaction in October 2008 contributed aggregate royalty
       revenue of $967,000 in the three month period ended March 31, 2009,
       not including royalty revenue from Siguiri and Mulatos, which are
       shown in the table.  The remaining royalties in the "Other" category
       contributed aggregate royalty revenue of $2.6 million in the three
       month period ended March 31, 2009, compared to $2.4 million in the
       three month period ended March 31, 2008.  Of this royalty revenue,
       Benso contributed $627,000, El Chanate contributed $529,000 and Troy
       contributed $504,000 for the current period, compared to $0, $152,000
       and $747,000 for the prior period, respectively.



                               ROYAL GOLD, INC.
                          Consolidated Balance Sheets
                        (In thousands except share data)

                                                     March 31,   June 30,
                                                       2009       2008
                                                             (As Restated)
  Current assets
     Cash and equivalents                             $50,538   $192,035
     Royalty receivables                               18,248     16,317
     Income taxes receivable                            2,038      2,186
     Deferred tax assets                                   91        131
     Prepaid expenses and other                         1,429        308

  Total current assets                                 72,344    210,977

  Royalty interests in mineral properties, net        466,282    300,670
  Restricted cash - compensating balance               19,250     15,750
  Inventory - restricted                               11,052     11,170
  Other assets                                          5,786      7,283
  Total assets                                       $574,714   $545,850

  Current liabilities
     Accounts payable                                  $5,702     $4,753
     Dividends payable                                  2,738      2,384
     Other                                              2,135      1,797

  Total current liabilities                            10,575      8,934

  Net deferred tax liabilities                         23,468     26,034
  Term loan facility                                   19,250     15,750
  Other long-term liabilities                             688        504
  Total liabilities                                    53,981     51,222

  Commitments and contingencies
  Minority interest in subsidiary                      11,416     11,411
  Stockholders' equity
     Common stock, $0.01 par value, authorized
       100,000,000 shares; and issued 33,958,082 and
       33,926,495 shares, respectively                    340        339
  Additional paid-in capital                          466,100    463,335
  Accumulated other comprehensive (loss) income           (32)        65
  Accumulated earnings                                 42,909     19,478

  Total stockholders' equity                          509,317    483,217

  Total liabilities and stockholders' equity         $574,714   $545,850



                                ROYAL GOLD, INC.
         Consolidated Statements of Operations and Comprehensive Income
                (Unaudited, in thousands except share data)

                                            For The Three Months Ended
                                          March 31,          March 31,
                                            2009               2008
                                                           (As Restated)

  Royalty revenues                         $20,797            $18,731

  Costs and expenses
     Costs of operations (exclusive of
      depreciation, depletion and
      amortization shown separately
      below)                                 1,154              1,006
     General and administrative              1,812              1,981
     Exploration and business
      development                              732                817
     Depreciation, depletion and
      amortization                           9,960              5,925
  Total costs and expenses                  13,658              9,729

  Operating income                           7,139              9,002

  Interest and other income                  1,075              1,715
  Interest and other expense                  (266)              (330)
  Income before income taxes                 7,948             10,387

  Income tax expense                        (2,534)            (3,358)
  Minority interest in income of
   consolidated subsidiary                  (1,272)              (140)
  Net income                                $4,142             $6,889

  Adjustments to comprehensive
   income
     Unrealized change in market value
      of available for sale securities,
      net of tax                               (24)              (109)
  Comprehensive income                      $4,118             $6,780

  Net income                                $4,142             $6,889
  Preferred dividends                            -             (3,584)
  Net income available to common
   stockholders                             $4,142             $3,305

  Basic earnings per share                   $0.12              $0.11

  Basic weighted average shares
   outstanding                          34,008,758         30,932,084

  Diluted earnings per share                 $0.12              $0.11

  Diluted weighted average shares
   outstanding                          34,447,169         31,213,663



                                  ROYAL GOLD, INC.
         Consolidated Statements of Operations and Comprehensive Income
                   (Unaudited, in thousands except share data)

                                                   For The Nine Months Ended
                                                    March 31,      March 31,
                                                      2009          2008
                                                               (As Restated)

  Royalty revenues                                   $51,499      $45,944

  Costs and expenses
     Costs of operations (exclusive of
      depreciation, depletion and amortization
      shown separately below)                          2,615        2,748
     General and administrative                        5,604        5,509
     Exploration and business development              2,369        3,298
     Depreciation, depletion, and amortization        22,921       11,933
  Total costs and expenses                            33,509       23,488

  Operating income                                    17,990       22,456

  Gain on royalty restructuring                       31,500            -
  Interest and other income                            2,198        5,667
  Interest and other expense                            (929)      (1,492)
  Income before income taxes                          50,759       26,631

  Income tax expense                                 (17,660)      (8,362)
  Minority interest in income of consolidated
   subsidiary                                         (1,810)        (682)
  Loss from equity investment                              -         (550)
  Net income                                         $31,289      $17,037

  Adjustments to comprehensive income
     Unrealized loss in market value of available
      for sale securities, net of tax                    (97)        (282)
  Comprehensive income                               $31,192      $16,755

  Net income                                         $31,289      $17,037
  Preferred dividends                                      -       (4,788)
  Net income available to common stockholders        $31,289      $12,249

  Basic earnings per share                             $0.92        $0.41

  Basic weighted average shares outstanding       33,965,171   29,808,962

  Diluted earnings per share                           $0.91        $0.41

  Diluted weighted average shares outstanding     34,402,551   30,134,888



                                   ROYAL GOLD, INC.
                        Consolidated Statements of Cash Flows
                              (Unaudited, in thousands)

                                            For The Nine Months Ended
                                           March 31,        March 31,
                                             2009             2008
                                                          (As Restated)
  Cash flows from operating
   activities

  Net income                                $31,289          $17,037
  Adjustments to reconcile net income
   to net cash provided by operating
   activities:
     Depreciation, depletion and
      amortization                           22,921           11,933
     Deferred tax benefit                    (2,072)          (1,154)
     Non-cash employee stock
      compensation expense                    2,225            2,145
     Gain on royalty restructuring          (31,500)               -
     Loss on available for sale
      securities                                  -               49
     Note receivable - Battle Mountain
      Gold Exploration                            -             (713)
     Tax benefit of stock-based
      compensation exercises                   (289)            (515)
  Changes in assets and liabilities:
     Royalty receivables                     (1,931)            (695)
     Prepaid expenses and other assets         (857)          (2,199)
     Accounts payable                         1,457            2,921
     Income taxes receivable                    190               67
     Other                                      (28)            (171)

  Net cash provided by operating
   activities                               $21,405          $28,705

  Cash flows from investing
   activities

     Acquisition of royalty interests in
      mineral properties                   (186,110)         (15,939)
     Proceeds from royalty restructuring     31,500                -
     Restricted cash - compensating
      balance                                (3,500)               -
     Proceeds on sale of inventory -
      restricted                              1,016                -
     Deferred acquisition costs                (967)             (63)
     Battle Mountain acquisition, net of
      cash acquired of $1,398,181                 -           (2,933)
     Other                                      (97)             (12)

  Net cash used in investing
   activities                             $(158,158)        $(18,947)

  Cash flows from financing
   activities:
     Tax benefit of stock-based
      compensation exercises                   $289             $515
     Debt issuance costs                       (785)             (26)
     Term loan facility                       3,500                -
     Common dividends paid                   (7,504)          (5,869)
     Distribution to minority interest
      holder                                 (1,016)               -
     Preferred stock dividends paid               -           (2,802)
     Gold loan payoff - Battle Mountain           -           (6,852)
     Net proceeds from issuance of
      common stock                              772              675
     Net proceeds from issuance of
      preferred stock                             -          111,098

  Net cash (used in) provided by
   financing activities                     $(4,744)         $91,223

  Net (decrease) increase in cash and
   equivalents                             (141,497)         100,981

  Cash and equivalents at beginning
   of period                                192,035           82,842

  Cash and equivalents at end of
   period                                   $50,538         $183,823

  Supplemental cash flow information:
    Non-cash financing activities:
      Conversion of preferred stock to
       common stock                              $-         $116,946
      Battle Mountain acquisition (with
       common stock)                             $-          $35,832



                                      SCHEDULE A

  Non-GAAP Financial Measures
  The Company computes and discloses free cash flow and free cash flow as a
  percentage of revenues. Free cash flow is a non-GAAP financial measure.
  Free cash flow is defined by the Company as operating income plus
  depreciation, depletion and amortization, non-cash charges, and any
  impairment of mining assets, less minority interest in operating income of
  consolidated subsidiary.  Management believes that free cash flow and free
  cash flow as a percentage of revenues are useful measures of performance
  of our royalty portfolio.  Free cash flow identifies the cash generated in
  a given period that will be available to fund the Company's future
  operations, growth opportunities, and shareholder dividends.  Free cash
  flow, as defined, is most directly comparable to operating income in the
  Statements of Operations. Below is the reconciliation to operating income:


                                             For the Three Months Ended
                                                     March 31,
                                                    (unaudited)
                                             2009               2008
                                                            (As restated)

  Operating income                          $7,139             $9,002
  Depreciation, depletion and amortization   9,960              5,925
  Non-Cash employee stock compensation         674                727
  Minority interest in operating income of
   consolidated subsidiary(1)                 (256)              (140)
  Free cash flow                           $17,517            $15,514


                                             For the Nine Months Ended
                                                     March 31,
                                                    (unaudited)
                                            2009               2008
                                                           (As restated)

  Operating income                         $17,990            $22,456
  Depreciation, depletion and amortization  22,921             11,933
  Non-Cash employee stock compensation       2,225              2,145
  Minority interest in operating income of
   consolidated subsidiary(1)                 (794)              (682)
  Free cash flow                           $42,342            $35,852

  (1)  Only the portion of minority interest included in operating income of
       Royal Gold was subtracted in the reconciliation of free cash flow to
       operating income.


DATASOURCE: Royal Gold, Inc.



CONTACT:  Karen Gross, Vice President and Corporate Secretary of Royal

Gold, Inc., [phone]



Web Site:  http://www.royalgold.com/ 

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