International Royalty announces purchase of metallrugical coal royalties



    AMEX:  ROY
    TSX:IRC

    DENVER, CO, Jan. 8 /CNW Telbec/ - International Royalty Corporation
(AMEX:   ROY; TSX: IRC) (the "Company" or "IRC") announced today that it has
acquired a royalty on the Horizon metallurgical coal project located in
northeastern British Columbia. The interest was purchased from private
entities for US$1.5 million and represents a 0.5% gross royalty on coal sales
revenue FOB railcar from the future Horizon Mine. Horizon is a
feasibility-stage metallurgical coal development project in the Tumbler Ridge
area and is owned by the Peace River Coal Limited Partnership ("PRC" or "Peace
River"). Peace River was formed in late 2006 by Anglo Coal Canada Inc.,
Hillsborough Resources Limited, and NEMI Northern Energy & Mining Inc., with
end of 2007 ownership shares of 66%, 14% and 20%, respectively. PRC is
operated by Anglo Coal Canada Inc., a division of Anglo American PLC, a major
producer of metallurgical and thermal coal world-wide, as well as other
mineral commodities. This project represents Anglo's first coal mine in
Canada. Surface mineable coal resources on the approximate 13,600 acres of
coal tenure comprising the Horizon project area are reported to be 190 million
tonnes. Potential exists for further expansion onto adjacent tracts and as
part of the transaction, IRC acquired an option to purchase a similar royalty
on these adjacent tenure units as well. IRC believes that production from the
Horizon project could begin as early as 2010, with ramp-up to 1.5 million
tonnes per year within the following 2 to 3 years. At full production IRC
could receive annual royalty revenue of approximately $900,000, assuming
current metallurgical coal prices.

    International Royalty Corporation
    ---------------------------------

    International Royalty Corporation (IRC) is a global mineral royalty
company. IRC holds over 75 royalties including an effective 2.7% NSR on the
Voisey's Bay mine, a sliding-scale NSR on the Pascua gold project, and a 1.5%
NSR on more than 3.0 million acres of gold lands in Western Australia . IRC is
senior listed on the Toronto Stock Exchange (TSX:IRC) as well as the American
Stock Exchange (AMEX:   ROY ).

    This press release has been reviewed by Nick Michael, a qualified person
for the purposes of National Instrument 43-101.

    On behalf of the Board of Directors,
    INTERNATIONAL ROYALTY CORPORATION

    Douglas B. Silver
    Chairman and CEO


    Cautionary Statement Regarding Forward-Looking Statements
    ---------------------------------------------------------

    This press release contains "forward-looking information" which may
include, but is not limited to, statements with respect to the Company's
purchase of the royalty on the Horizon metallurgical coal project, future
plans related to the project, future coal sales and projected revenues,
estimated resources and tonnage, estimated timing on production and annual
royalty revenue, assumptions based on current metallurgical coal prices and
other statements based on estimates and non-historical information. Certain
information contained in this release is based on information provided to IRC
by Peace River. Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of IRC and/or its subsidiaries to be materially
different from any future results, performance or achievements expressed or
implied by the forward-looking statements. Material factors that could cause
actual revenues to differ materially from those contained in such
forwarding-looking statements include fluctuations in commodity prices; timing
of production; accuracy of the operators' projections and production
capacities; the effects of weather, operating hazards, adverse geological
conditions and availability of labor, materials and equipment; changes in
governmental laws, regulations, economic conditions or shifts in political
attitudes or stability. These forward-looking statements should not be relied
upon as representing IRC's views as of any date subsequent to the date of this
release. There can be no assurance that forward-looking statements will prove
to be accurate, as actual results and future events could differ materially
from those anticipated in such statements. You should not place undue reliance
on forward looking statements.




For further information:

For further information: Jack Perkins, Investor Relations: (303)
991-9500; Douglas B. Silver, Chairman and CEO: (303) 799-9020,
info@internationalroyalty.com, www.internationalroyalty.com; Renmark Financial
Communications Inc.: Tina Cameron: tcameron@renmarkfinancial.com; Melanie
Lecavalier: mlecavalier@renmarkfinancial.com, (514) 939-3989, Fax : (514)
939-3717, www.renmarkfinancial.com

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INTERNATIONAL ROYALTY CORPORATION

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