Royal Gold Announces Substantial Increases in Reserves At Penasquito Royalty Property



    DENVER, Colo., JUNE 28 /CNW/ -- ROYAL GOLD, INC. (Nasdaq:   RGLD; TSX:
RGL), the world's leading precious metals company, today announced that
ongoing exploration and development drilling by Goldcorp Inc. ("Goldcorp") at
the Penasquito project in Zacatecas, Mexico has allowed Goldcorp to update its
reserve estimate of 13 million contained ounces of gold and 864 million
contained ounces of silver. These new reserve estimates reflect a 31% and 50%
increase in gold and silver reserves, respectively, over the June 2006 reserve
update.  Goldcorp also announced that proven and probable lead and zinc
reserves both increased 60%.  Royal Gold holds a 2.0% net smelter return
("NSR") royalty on all metal production from the Penasquito project.  Tables
displaying updated royalty reserves (Table 1) and additional mineralization
(Table 2) are presented at the end of this release.
    Tony Jensen, Royal Gold's President and Chief Executive Officer,
commented, "As we anticipated when we acquired this royalty in January, this
project has exhibited great upside potential with the possibility of further
reserve growth over time.  We are very pleased with our investment in this
royalty property and the potential future revenue impact from these expanded
reserves.  The Penasquito royalty will be a cornerstone asset in our portfolio
over much of the next two decades."
    In addition to the updated reserve information, Goldcorp stated that
construction progress at Penasquito remains on schedule for initial heap
leaching of oxide ore during 2008 and start-up of the first milling and
flotation circuit by late 2009.  Goldcorp is also analyzing the potential for
an expansion in the mill throughput from 100,000 tonnes per day to 130,000
tonnes per day to accelerate the production profile.  Goldcorp also reported
that nine core rigs are active on the property with a drilling campaign in
progress to test the extent of a new high grade zone and define additional
mineralization which may be mineable by underground methods concurrent with
open pit operations.

    Royal Gold is a precious metals royalty company engaging in the
acquisition and management of precious metal royalty interests.  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 web
page is located at http://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 statements regarding proven and probable
reserves, production start-up, possibility of reserve growth, revenue impact
from expanded reserves, Penasquito as a cornerstone asset of Royal Gold over
the next two decades, potential expansion in mill throughput, the testing of a
new high grade zone and defining of additional mineralization which may be
mineable by underground methods concurrent with open pit operations. Factors
that could cause actual results to differ materially from forward looking
statement include, among others, precious metals prices, decisions and
activities of the operator of the property, 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, 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.  Most of these factors are beyond Royal
Gold's ability to predict or control. The Penasquito Project NSR royalty
acquisition is Royal Gold's largest royalty acquisition to date.  Like any
royalty acquisition on a non-producing or development project, it is subject
to certain risks, such as the ability of the operator to bring the project
into production and operate in accordance with the feasibility study and the
ability of Royal Gold to make accurate assumptions regarding valuation and
timing and amount of royalty payments.  In addition, the acquired royalty
interests and the project 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.  Royal Gold 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
     Goldcorp Estimates of Penasquito Proven and Probable Reserves (1,2)
                             as of June 25, 2007


                                                 PROVEN RESERVES
                                          Tons of     Avg.     Contained
                                          Ore         Grade    Ozs(5)
    METAL   ROYALTY(3)   ORE TYPE(4)     (millions)  (oz/ton) (millions)

    Gold(6)   2.0% NSR    Oxide            46.4       0.006      0.283
    Gold(6)   2.0% NSR    Sulfide         470.6       0.017      7.855
    Silver(7) 2.0% NSR    Oxide            46.4       0.609     28.244
    Silver(7) 2.0% NSR    Sulfide         470.6       0.992    466.993


                                                PROBABLE RESERVES
                                          Tons of     Avg.     Contained
                                          Ore         Grade    Ozs(5)
    METAL   ROYALTY(3)   ORE TYPE(4)     (millions)  (oz/ton) (millions)

    Gold(6)   2.0% NSR    Oxide            75.3       0.005      0.367
    Gold(6)   2.0% NSR    Sulfide         419.1       0.011      4.546
    Silver(7) 2.0% NSR    Oxide            75.3       0.479     36.061
    Silver(7) 2.0% NSR    Sulfide         419.1       0.794    332.561


                                           PROVEN + PROBABLE RESERVES
                                          Tons of     Avg.     Contained
                                          Ore         Grade    Ozs(5)
    METAL   ROYALTY(3)   ORE TYPE(4)     (millions)  (oz/ton) (millions)

    Gold(6)   2.0% NSR    Oxide           121.7       0.005      0.650
    Gold(6)   2.0% NSR    Sulfide         889.7       0.014     12.401
    Silver(7) 2.0% NSR    Oxide           121.7       0.528     64.305
    Silver(7) 2.0% NSR    Sulfide         889.7       0.899    799.554


                                                  PROVEN RESERVES
                                          Tons of     Avg.    Contained
                                          Ore         Grade   Lbs(5)
    METAL    ROYALTY(3)   ORE TYPE(4)    (millions)   (%)    (millions)

    Lead(8)   2.0% NSR    Sulfide         470.6        0.36     3,439
    Zinc(9)   2.0% NSR    Sulfide         470.6        0.78     7,363


                                                 PROBABLE RESERVES
                                          Tons of     Avg.    Contained
                                          Ore         Grade   Lbs(5)
    METAL    ROYALTY(3)   ORE TYPE(4)    (millions)   (%)    (millions)

    Lead(8)   2.0% NSR    Sulfide         419.1        0.29     2,447
    Zinc(9)   2.0% NSR    Sulfide         419.1        0.65     5,445


                                            PROVEN + PROBABLE RESERVES
                                          Tons of     Avg.    Contained
                                          Ore         Grade   Lbs(5)
    METAL    ROYALTY(3)   ORE TYPE(4)    (millions)   (%)    (millions)

    Lead(8)   2.0% NSR    Sulfide         889.7        0.33     5,886
    Zinc(9)   2.0% NSR    Sulfide         889.7        0.72    12,809


                             FOOTNOTES TO TABLE 1
    

    (1) Goldcorp is a Canadian issuer.  Its definitions of "mineral reserve,"
"proven mineral reserve" and "probable mineral reserve" conform to the
Canadian Institute of Mining, Metallurgy and Petroleum definitions of these
terms as of the effective date of estimation as required by National
Instrument 43-101 of the Canadian Securities Administrators.  The raw data for
this table was taken from Goldcorp, Inc.'s June 25, 2007 press release for
which the resource and reserve estimates have been prepared under the
supervision of Robert Bryson, Vice President, Engineering for Goldcorp, Inc.,
a Qualified Person as defined under NI 43-101.
    The Canadian definitions of "reserve," "proven (measured) reserves," and
"probable (indicated) reserves" are different than those used by the SEC as
defined below.  Set forth below are the definitions of proven and probable
reserves used by the U.S. Securities and Exchange Commission.
    "Reserve" is that part of a mineral deposit which could be economically
and legally extracted or produced at the time of the reserve determination.
    "Proven (Measured) Reserves" are reserves for which (a) quantity is
computed from dimensions revealed in outcrops, trenches, workings or drill
holes, and the grade is computed from the results of detailed sampling, and
(b) the sites for inspection, sampling and measurement are spaced so closely
and the geologic character is so well defined that the size, shape, depth and
mineral content of the reserves are well established.
    "Probable (Indicated) Reserves" are reserves for which the quantity and
grade are computed from information similar to that used for proven (measured)
reserves, but the sites for inspection, sampling and measurement are farther
apart or are otherwise less adequately spaced.  The degree of assurance of
probable (indicated) reserves, although lower than that for proven (measured)
reserves, is high enough to assume geological continuity between points of
observation.
    (2) Goldcorp's estimates that were provided in "tonnes" and "grams per
tonne" have been converted to "tons" and "ounces per ton" for presentation in
Table 1.
    (3) 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.
    (4) Operator reported reserve estimates by deposit types.  An oxide
deposit is one in which the oxide minerals predominate.  A sulfide deposit is
one in which the sulfide minerals predominate.
    (5) "Contained ounces" or "contained pounds" do not take into account
losses in mining dilution or in processing the ore.  The amounts shown are
100% of the reserves subject to our royalty interests.
    
    (6) Gold reserves were calculated by the operator at $525 per ounce.
    (7) Silver reserves were calculated by the operator at $10.00 per ounce.
    (8) Lead reserves were calculated by the operator at $0.40 per pound.
    (9) Zinc reserves were calculated by the operator at $0.80 per pound.


                                   TABLE 2
       Goldcorp Estimates of Penasquito Additional Mineralization (1,2)
                             as of June 25, 2007

    GOLD(3)
                              ADDITIONAL                    AVERAGE GOLD
                              MINERALIZED   TONS OF ORE         GRADE
    ORE TYPE(4)  ROYALTY(5)   MATERIAL       (millions)   (ounces per ton)
    Oxide        2.0% NSR     Measured(6)       55.1            0.005
                              Indicated(6)     113.5            0.004
                              Inferred(6)       45.2            0.004

    Sulfide      2.0% NSR     Measured(6)      579.8            0.015
                              Indicated(6)   1,010.8            0.008
                              Inferred(6)    1,299.6            0.007


    SILVER(7)
                              ADDITIONAL                      AVERAGE SILVER
                              MINERALIZED      TONS OF ORE        GRADE
    ORE TYPE(4)  ROYALTY(5)   MATERIAL         (millions)     (ounces per ton)
    Oxide        2.0% NSR     Measured(6)        55.1           0.544
                              Indicated(6)      113.5           0.387
                              Inferred(6)        45.2           0.379

    Sulfide      2.0% NSR     Measured(6)       579.8           0.928
                              Indicated(6)    1,010.8           0.658
                              Inferred(6)     1,299.6           0.378


    ZINC(8)
                              ADDITIONAL
                              MINERALIZED      TONS OF ORE    AVERAGE ZINC
    ORE TYPE(4)  ROYALTY(5)   MATERIAL         (millions)     GRADE(% Zn)
    Sulfide      2.0% NSR     Measured(6)       579.8           0.75
                              Indicated(6)    1,010.8           0.59
                              Inferred(6)     1,299.6           0.50


    LEAD(9)
                              ADDITIONAL
                              MINERALIZED      TONS OF ORE    AVERAGE LEAD
    ORE TYPE(4)  ROYALTY(5)   MATERIAL         (millions)     GRADE(% Pb)
    Sulfide      2.0% NSR     Measured(6)       579.8            0.34
                              Indicated(6)    1,010.8            0.24
                              Inferred(6)     1,299.6            0.07



                             FOOTNOTES TO TABLE 2
    

    (1) Mineralized material is that part of a mineral system that has
potential economic significance but cannot be included in the proven and
probable ore reserve estimates until further drilling and metallurgical work
is completed, and until other economic and technical feasibility factors based
upon such work have been resolved.  The U.S. Securities and Exchange
Commission does not recognize this term.  Investors are cautioned not to
assume that any part or all of the mineral deposits in these categories will
ever be converted into reserves.
    (2) Goldcorp's estimates that were provided in "tonnes" and "grams per
tonne" have been converted to "tons" and "ounces per ton" for presentation in
Table 2.
    (3) Gold additional mineralization was calculated by the operator at $650
per ounce.
    (4) Operator has reported estimates by deposit types.  An oxide deposit
is one in which the oxide minerals predominate.  A sulfide deposit is one in
which the sulfide minerals predominate.
    (5) 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.
    (6) Goldcorp Inc. is a Canadian issuer.  Its definitions of "mineral
resource," "measured mineral resource," "indicated mineral resource" and
"inferred mineral resource" conform to the Canadian Institute of Mining,
Metallurgy and Petroleum definitions of those terms as of the effective date
of estimation, as required by National Instrument 43-101 of the Canadian
Securities Administrators.  Mineral resources which are not mineral reserves
do not have economic viability.  Canadian issuers use the terms "mineral
resources" and its subcategories "measured," "indicated" and "inferred"
mineral resources.  While such terms are recognized and required by Canadian
regulations, the U.S. Securities and Exchange Commission does not recognize
them.  Investors are cautioned not to assume that any part or all of the
mineral deposits in these categories will ever be converted into reserves.
    The raw data for this table was taken from Goldcorp, Inc.'s June 25, 2007
press release for which the resource and reserve estimates have been prepared
under the supervision of Robert Bryson, Vice President, Engineering for
Goldcorp, Inc., a Qualified Person as defined under NI 43-101.
    (7) Silver additional mineralization was calculated by the operator at
$13.00 per ounce.
    (8) Zinc additional mineralization was calculated by the operator at
$1.00 per pound.
    (9) Lead additional mineralization was calculated by the operator at
$0.50 per pound.





For further information:

For further information: Karen Gross, Vice President and Corporate 
Secretary of ROYAL GOLD, INC., +1-(303)-573-1660 Web Site:
http://www.royalgold.com

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