International Royalty Corporation Reports Second Quarter Earnings



    AMEX:  ROY
    TSX:IRC

    DENVER, CO, Aug. 14 /CNW Telbec/ - International Royalty Corporation
(AMEX:   ROY, TSX: IRC) (the "Company") today reported its second quarter 2007
financial results. All figures are in United States dollars unless otherwise
noted.

    
    Financial Highligts

    - Royalty revenues for the quarter increased over 650% to $13.2 million
      based upon strong production gains on the Company's Voisey's Bay
      royalty.
    - Earnings from operations increased by $6.7 million compared to 2006 to
      $6.2 million during the quarter.
    - Earnings before income taxes were $3.6 million compared to a loss of
      $1.2 million in 2006.
    - Cash flow from operations was $6.6 million during the quarter, up from
      a use of $0.1 million in 2006.

    Summary of Financial Information:

    ($ thousands,                      Three Months Ended   Six Months Ended
     except per share data)                  June 30,           June 30,
                                       ------------------  ------------------
                                          2007      2006      2007      2006
                                       --------  --------  --------  --------
    Statement of Operations
      Royalty revenues                 $13,207   $ 2,049   $23,385   $ 2,462
      Earnings (loss) from operations    6,151      (512)    9,843    (2,035)
      Earnings (loss) before
       income taxes                      3,585    (1,194)    6,860    (3,177)
      Net earnings                       2,380     8,654     4,545     7,217
      Basic earnings per share:
        Earnings (loss) before
         income taxes                  $  0.05   $ (0.02)  $  0.11   $ (0.06)
        Net earnings                   $  0.04   $  0.15   $  0.07     $0.13
      Diluted earnings per share:
        Earnings (loss) before
         income taxes                  $  0.05   $ (0.02)  $  0.10   $ (0.06)
        Net earnings                   $  0.03   $  0.15   $  0.07     $0.12

    Statement of Cash Flows
      Cash provided from (used in)
       operating activities            $ 6,642   $  (105)  $11,608   $(1,674)


    Payable production and revenues on the Company's royalties and average
metal prices received were as follows:

    Production and revenue
     (unaudited)                             Payable Metal Production(1)
                                       --------------------------------------
                                          Quarter Ended     Six Months Ended
                                             June 30,           June 30,
                                       ------------------  ------------------
    Mine         Commodity   Royalty      2007      2006      2007      2006
                                       ------------------  ------------------

    Williams          Gold 0.25% NSR        53        75       117       121


    Southern
     Cross            Gold  1.5% NSR        37         7        75         7

    Voisey's Bay
                    Nickel  2.7% NSR    29,698    10,153    56,703    11,875
                    Copper  2.7% NSR     5,059     3,607    17,677     6,777
                    Cobalt  2.7% NSR     1,222       446     2,316       524
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                                 Revenue (thousands)
                                       --------------------------------------
                                          Quarter Ended     Six Months Ended
                                             June 30,            June 30,
                                       ------------------  ------------------
    Mine                                  2007      2006      2007      2006
                                       ------------------  ------------------

    Williams                           $    89   $   117   $   191   $   184

    Southern Cross                         365        66       735        66

    Voisey's Bay                        12,727     1,842    22,432     2,185

    (1) Gold is in thousands of ounces; nickel, copper and cobalt are in
        thousands of contained pounds in concentrate.


    Average metal prices
     realized (in US$) (unaudited)
                                          Quarter Ended     Six Months Ended
                                             June 30,            June 30,
                                       ------------------  ------------------
                                          2007      2006      2007      2006
                                       ------------------  ------------------
    Gold, per ounce                    $   660   $   612   $   654   $   603
    Nickel, per pound(1)                 21.10      8.34     18.96      8.12
    Copper, per pound(1)                  3.31      2.47      2.68      2.35
    Cobalt, per pound(1)                 27.54     14.11     26.99     13.86

    (1) Before transportation, smelting and refining costs.
    

    Strong increases in royalty revenues, earnings before income taxes and
cash flow from operating activities during the second quarter were driven by a
significant increase in revenues from the Voisey's Bay royalty, from
$1,842,000 in the quarter ended March 31, 2006 to $12,727,000 in the second
quarter of 2007. Payable production from Voisey's Bay increased from      
10.2 million pounds of nickel in concentrate in 2006 to 29.7 million pounds in
the quarter ended June 30, 2007. Average metal prices received also increased
significantly during the quarter, with average nickel prices on payable
production up to $21.10 per pound in the quarter from $8.34 per pound in the
same period in 2006.
    Looking forward to the second half of 2007, the Company expects above
average payable production during this period. Due to the seasonal nature of
the shipments from the mine (there are no nickel concentrate shipments between
December 7 and January 21 of each year and again between April 7 and May 21),
the Company expects higher than average shipments in the second half of each
year. Also, there are no copper concentrate shipments at all during the period
between December 7 and May 21, resulting in much higher shipments during the
summer and fall months. The result, assuming constant metal prices, will be to
reduce expected royalty revenues in the second quarter of each year and to
increase expected royalty revenues in the latter half of the year.
    Mercator Gold Plc has announced it expects to begin gold production at
its Meekatharra operations in Western Australia in August 2007 at an initial
rate of 120,000 ounces per year. The Company owns a 1.5% net smelter returns
royalty on the Meekatharra operation. Several of the Company's other royalties
are expected to begin production in 2008, including the Inata Project
(Belahouro) in Burkina Faso, West Africa and the Gwalia Deeps underground
project in Western Australia operated by St Barbara Limited.
    Initial production of frac sand began on the Legacy Sand Project in the
spring of 2007. However, the operation has experienced technical difficulties
in achieving design capacity. IRC is awaiting further information from the
operator. In the meantime all frac product which is being produced from the
facility has been readily purchased by energy producers and service companies.
    Complete financial results are available on SEDAR and on the Company's
website at www.internationalroyalty.com.

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

    International Royalty Corporation (IRC) is a global mineral royalty
company. IRC holds over 60 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).

    On behalf of the Board of Directors,
    INTERNATIONAL ROYALTY CORPORATION

    Douglas B. Silver
    Chairman and CEO


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

    Some of the statements contained in this release are forward-looking
statements, such as statements that describe IRC's expectations as to the
production start dates for the Legacy Sand, and Meekathara projects on which
IRC has royalties. In certain cases, forward-looking statements can be
identified by the use of words such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", or "does not anticipate", or "believes" or
variations of such words and phrases, or state that certain actions, events or
results "may", "could", "would", "might" or "will" be taken, occur or be
achieved. Since forward-looking statements are not statements of historical
fact and address future events, conditions and expectations, forward-looking
statements by their nature inherently involve unknown risks, uncertainties,
assumptions and other factors well beyond the Company's ability to control or
predict. Actual results and developments may differ materially from those
contemplated by such forward-looking statements depending on, among others,
such key factors as the ability of the mine operators to finance and
successfully place their projects into production. IRC's forward-looking
statements in this release regarding the anticipated timing of the start of
production on several of the projects on which it has royalties is based on
certain assumptions. Such assumptions include, but are not limited to, the
validity of statements made by the project operators in the public domain, and
their ability to finance, construct and successfully operate these properties.
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. 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. Although IRC has
attempted to identify important factors that could cause actual actions,
events or results to differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. Accordingly, readers should
not place undue reliance on any 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; Neil
Murray-Lyon, nmurraylyon@renmarkfinancial.com; (514) 939-3989, Fax: (514)
939-3717, www.renmarkfinancial.com

Organization Profile

INTERNATIONAL ROYALTY CORPORATION

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