Royal Gold Completes Acquisition of Battle Mountain

    DENVER, Oct. 25 /CNW/ -- ROYAL GOLD, INC. (Nasdaq:   RGLD; TSX: RGL), the
world's leading precious metals royalty company, today announced the
completion of a merger agreement with Battle Mountain Gold Exploration Corp.
("Battle Mountain"), under which Royal Gold acquired 100% of the fully diluted
shares of Battle Mountain.  Royal Gold paid approximately $3.4 million in cash
and issued 1.14 million shares of its common stock to the Battle Mountain
shareholders in order to acquire the shares of Battle Mountain that the
Company did not already own.  Subject to the settlement of certain Battle
Mountain litigation, the former shareholders of Battle Mountain may receive
additional shares of Royal Gold common stock or cash, in the same form as
previously elected.
    Battle Mountain is a precious metals royalty company with a portfolio
consisting of royalties on 13 properties located mainly in the Americas.  Its
principal assets include a 1.25% and a 2.0% net smelter return ("NSR") royalty
on gold production and a 2.0% NSR royalty on silver production from the
Dolores project in Mexico, which is under development by Minefinders
Corporation Ltd.  Battle Mountain's royalty properties contain approximately
4.8 million ounces of gold reserves and 136 million ounces of silver reserves.
    Royal Gold is the leading precious metals royalty company engaged in the
acquisition and management of precious metals 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
    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 include 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 reserve estimates for
Battle Mountain's royalty properties.  The principal assets of Battle Mountain
include royalty interests on a project not yet in production.  Like any
royalty acquisition involving royalties on a non-producing project, the
royalty interests acquired in the merger transaction are 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 various royalty
interests that have been acquired in the merger transaction 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.  Factors that could cause actual results to differ materially
from forward-looking statements include, among others, actual results of the
consummation of the merger transaction, 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 in Royal Gold's Annual
Report on Form 10-K, and other of the Company's filings with the Securities
and Exchange Commission. Most of these factors are beyond Royal Gold's ability
to predict or control.  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.

For further information:

For further information: Karen Gross, Vice President and Corporate 
Secretary of Royal Gold, Inc., +1-303-573-1660 Web Site:

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