International Royalty comments on Voisey's Bay concentrate shipments



    NYSE-A:ROY
    TSX:IRC

    DENVER, CO, Jan. 28 /CNW Telbec/ - International Royalty Corporation
(TSX: IRC, NYSE-A: ROY) ("IRC" or the "Company") has recently learned of an
article reporting that the Voisey's Bay mine had halted concentrate shipments.
Unless this delay is for a period greater than six months, IRC does not expect
these delayed shipments to have a significant impact on its revenues. IRC owns
an effective 2.7% NSR royalty on the Voisey's Bay mine, located in the
Province of Newfoundland and Labrador (the "Province").
    On January 27, 2009, The Telegram, a St. John's, Newfoundland newspaper,
reported that Voisey's Bay mine operator Vale Inco ("Vale" or the "Operator")
"agreed to stop shipping concentrates from Voisey's Bay for processing out of
the Province as of December 31, 2008. And a (Vale) company spokesman says
those shipments won't resume until a final agreement is reached with the
Province on the planned hydromet facility at Long Harbour."
    According to the Operator, the Voisey's Bay mine complies with a strict
winter shipping schedule of concentrates from the mine site to either a
storage facility in Quebec City, Quebec or to European smelters(1). Based on
Vale's agreements with the Provincial government and the First Nations, no
shipping is allowed between December 7 and January 21 and from April 7 to May
21. Between January 22 and April 6, only four nickel shipments are permitted,
and no copper shipments can leave port to the European smelters. The nickel
shipments during this two and a half month period represented approximately
25% of the annual nickel concentrate production in 2008. The seasonal nature
of the shipping schedule has resulted in IRC realizing reduced royalty
revenues from nickel shipments in the second quarter of each year and
increased royalty revenues from nickel and copper shipments in the latter half
of the year.
    This schedule has been adhered to since the mine began operations in late
2005. Consequently, Vale had already discontinued shipping concentrates prior
to The Telegram's article. Vale appears to be extending the no-shipping policy
until it has negotiated a final agreement with the Province on the proposed
hydromet plant. Should these negotiations be completed prior to May 21, at
most, only four shipments would be needed to get back on the routine schedule.
    Under the terms of the Voisey's Bay royalty agreements, IRC receives
payment from Vale approximately three months after the concentrates reach the
smelter in either Sudbury or Thompson. The concentrates are first shipped from
Voisey's Bay to Quebec City, where they are stored until they are transported
via rail to the smelters. The time from initial shipment to final delivery
point at the smelter can take from one to three months. As such, there is
typically a four to six month delay from the time of shipment until IRC
receives a royalty payment. As an example, the royalty payment received in the
third quarter of 2008 was for concentrates originally shipped from the
Voisey's Bay mine between February and May of 2008.
    The concentrates are stockpiled at Quebec City until needed at the
respective smelters. Inventories tend to build during the fall months and are
depleted during the winter. Accordingly, the Quebec City storage facilities
enable the Operator to smooth out the seasonal factors noted above.
    IRC receives royalty payments from Vale in mid-February, May, August and
November. The royalty payable in mid-February reflects concentrates that
arrived at the various smelters during the quarter ending September 30.
Similarly, the mid-May, August and November payments reflect the concentrates
arriving at smelters during the quarters ending December 31, March 31 and June
30, respectively. On this basis, any reductions in concentrate deliveries that
are not made up by stored concentrates in Quebec City should not impact IRC
until the mid-August 2009 payment. IRC will provide additional information on
these events as it becomes available.

    Reference: (1) http://vinl.valeinco.com/

    International Royalty Corporation

    International Royalty Corporation (IRC) is a global mineral-royalty
company. IRC holds more than 85 royalties including an effective 2.7% NSR on
the Voisey's Bay mine, a sliding-scale NSR on the Pascua-Lama gold project in
Chile, a 1.5% NSR on the Las Cruces copper project in Spain and a 1.5% NSR on
approximately 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 NYSE
Alternext U.S. (NYSE-A:ROY).

    On behalf of the Board of Directors,
    INTERNATIONAL ROYALTY CORPORATION

    Douglas B. Silver
    Chairman and CEO

    Forward Looking Statements

    This press release contains forward-looking statements within the meaning
of the United States Private Securities Litigation Reform Act of 1995,
including statements related to the halt of concentrate shipments at the
Voisey's Bay mine; the anticipated timing of negotiation of a final agreement
between Vale Inco and the Province of Newfoundland and Labrador related to the
planned hydromet facility in Long Harbor; the expectation that Vale Inco and
the Province will reach a final agreement; the timing of shipments and revenue
from such shipments once the agreed halt is terminated; the anticipated impact
on IRC revenue, cash flow and results of operations resulting from an extended
halt of concentrates at the Voisey's Bay mine; the shipping protocol from the
Voisey's Bay mine to storage facilities and smelters; the ability to ship
stockpiles of concentrates to smelters during and upon lifting the halt;
commentary on information provided by Vale Inco to IRC, in public disclosure
or to media; and other statements that are not statements of historical fact
and address future events, conditions and expectations, projections or
commentary on operations beyond the control of IRC and its management. Some
assumptions of IRC include, but are not limited to, the validity of statements
made by the project operators in the public domain and the projected royalties
on such projects. Forward-looking statements by their nature involve unknown
risks, uncertainties, assumptions and other factors well beyond the Company's
ability to control or predict, including but not limited to, the period in
which shipments are halted from the Voisey's Bay mine; the timing and ability
of Vale Inco and the Province of Newfoundland and Labrador to finalize an
agreement related to the planned hydromet facility in Long Harbor; the ability
to ship concentrates upon reaching such agreement, if any; the risk that
smelters may find alternative sources for concentrates; risks related to
declines in commodity prices that could affect royalties; risks related to
restrictions on shipments from the Voisey's Bay mine imposed by the Province;
actual impact on IRC's revenue, cash flow or results of operations related to
the Voisey's Bay royalty; impact on IRC's share price resulting from media
accounts of Voisey's Bay's operations and other risks more fully described in
IRC's public filings available at www.sedar.com and www.sec.gov. Actual
results and developments may differ materially from those contemplated by such
forward-looking statements. The forward-looking statements included in this
release represent IRC's views as of the date of this release. While IRC
anticipates that subsequent events and developments may cause IRC's views to
change, IRC specifically disclaims any obligation to update these
forward-looking statements unless required by law. Accordingly, readers should
not place undue reliance on any forward-looking statements.




For further information:

For further information: Jack Perkins, Director of Investor Relations,
(303) 991-9500; Douglas B. Silver, Chairman and CEO, (303) 799-9020,
info@internationalroyalty.com; www.internationalroyalty.com; Renmark Financial
Communications Inc.: Barbara Komorowski, bkomorowski@renmarkfinancial.com; Jen
Power, jpower@renmarkfinancial.com, Montreal: (514) 939-3989, Fax: (514)
939-3717; Toronto: (416) 644-2020, Fax: (416) 644-2021;
www.renmarkfinancial.com

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INTERNATIONAL ROYALTY CORPORATION

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