Royal Gold to Acquire Battle Mountain Gold Exploration

    DENVER, March 5 /CNW/ -- ROYAL GOLD, INC. (Nasdaq:   RGLD; Toronto: RGL)
and Battle Mountain Gold Exploration Corp. (OTC Bulletin Board:   BMGX) ("Battle
Mountain") today announced that Battle Mountain has accepted Royal Gold's
proposal to acquire 100% of the fully diluted shares of Battle Mountain for
approximately 1.57 million shares of Royal Gold common stock in a merger
transaction.  This represents a value of $0.60 per fully diluted share of
Battle Mountain, or a 29% premium to the 20-day weighted average trading price
of Battle Mountain as of Friday, February 23, 2007.  The proposal is subject
to satisfactory completion of due diligence, definitive documentation, and
receipt of a fairness opinion satisfactory to Royal Gold's Board of Directors,
among other conditions.
    To ensure continuity of Battle Mountain's business, Royal Gold and Battle
Mountain also entered into a binding term sheet, as of February 28, 2007, to
provide up to $20 million in bridge financing to satisfy debt obligations and
finalize royalty acquisitions.  The bridge loan is convertible into Battle
Mountain common stock at the election of Royal Gold, at $0.60 per share.
    Battle Mountain is a precious metals royalty company with a portfolio
consisting of 12 properties located mainly in the Americas.  Their principal
assets include a 1.25% net smelter return ("NSR") royalty on gold production
from the Dolores project in Mexico, under development by Minefinders
Corporation Ltd.  Battle Mountain also has an option to acquire an additional
2.0% NSR royalty on gold and silver production from the Dolores project.
Including the option, Battle Mountain's properties contain approximately 4.8
million ounces of gold reserves and 136 million ounces of silver reserves(1).
    Tony Jensen, Royal Gold's President and CEO, stated, "This transaction
will further diversify our portfolio of producing royalties and strengthens
our pipeline of development-stage assets, with the Dolores project expected to
commence production later this year.  We are pleased with both the near-term
and long-term financial impacts this transaction will have on Royal Gold and
will continue to remain vigilant in our search for further accretive
    Mark Kucher, Battle Mountain Chairman and CEO, commented, "We are pleased
to combine our assets with the premier precious metal royalty company in the
business.  Royal Gold has the experience, talent and resources to continue to
provide an excellent return for our shareholders."
    In anticipation of this transaction, Royal Gold has obtained a binding
support agreement and option to purchase approximately 18% of the outstanding
common stock of Battle Mountain from Mark Kucher, which provides that he will
vote for and support the transaction.  Royal Gold and Battle Mountain also
entered into a binding agreement providing for a 45-day exclusive period to
conclude definitive documentation for the merger and providing for break-up
fees payable to Royal Gold in the event Battle Mountain enters into a
competing agreement with another party within twelve months.  There is also a
mutual break-up fee payable in the event that either party breaches the

    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

    (1)  For an overview of Battle Mountain's royalty portfolio refer to
    Appendix A.

    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 gold and silver
reserve totals, diversification of our producing royalty portfolio,
strengthening of our development-stage royalty assets, commencement of
production at the Dolores project, completion of due diligence, definitive
documentation and other closing conditions including receipt of a satisfactory
fairness opinion.  Like any royalty acquisition on a non-producing or not yet
in development project, Battle Mountain's developmental royalties 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 acquired royalty
interests and development projects 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, negotiation of definitive documentation,
satisfactory completion of due diligence and other closing conditions,
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. 
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.

                                  Appendix A
             Battle Mountain Gold Exploration's Royalty Portfolio

    Properties with Proven
    and Probable Ore Reserves (1),(2)
    Property            Location      Ownership         NSR        Status
                                                       Rate %
    Williams Mine       Ontario       Teck Cominco      0.72       Operating
                                      Barrick Gold
    Don Mario Mine      Bolivia       Orvana Minerals    3.0       Operating
    El Limon Mine &
    La India Resource   Nicaragua     Glencairn Gold     3.0       Operating
                                      Mineras S.A.
    Joe Mann Mine       Quebec        Campbell          1.00(4)    Operating
    Dolores Project     Mexico        Minefinders       1.25(4)    Operations
                                                                   to begin
    Dolores Project     Mexico        Minefinders       2.05(5)    Operations
                                                                   to begin

    Property            Metal       Tons/       Average Grade      Contained
                                   Tonnes         (opt/gpt)        Ounces(3)
                                 (millions)                       (millions)
                                                 Au       Ag      Au       Ag
    Williams Mine       Gold      19.5/17.7    0.076/     --     1.49      --
    Don Mario Mine      Gold      7.2/6.5      0.087/    1.14/   0.62     8.2
                        and                     2.97     39.2
    El Limon Mine &
    La India Resource   Gold       1.4/1.3     0.156/     --     0.22      --
    Joe Mann Mine       Gold      0.08/0.07    0.214/     --     0.02      --
    Dolores Project     Gold     110.5/100.2   0.022/     --     2.45      --
    Dolores Project     Gold     110.5/100.2   0.022/    1.16/   2.45   127.8
                        and                     0.76     39.7
                                                Total Reserves    4.8   136.0

                            Appendix A (continued)
             Battle Mountain Gold Exploration's Royalty Portfolio

    Development and Exploration
    Property          Location        Ownership         NSR        Status
                                                       Rate %
    Sega Resource     Burkina Faso    Orezone          3.06(6)     Resource
                                      Resources                    Development

    Relief Canyon     Nevada          Firstgold         4.0        Exploration
    Project           Nevada          Pediment Gold    1.25        Exploration
    Hot Pot Project   Nevada          Pediment Gold    1.25        Exploration
    Properties        Colombia        Mineros           5.0        Exploration
                                      Nacionales S.A.
    Night Hawk Lake
    Property          Ontario         Selkirk Metals    2.5        Exploration
                                      (40%), East West
                                      Resource (40%),
                                      Canadian Golden
                                      Dragon (20%)
    Lluvia de
    Oro Mine          Mexico          Columbia Metals,  2.0        Care and
                                      Tara Gold                    Maintenance

    Property            Metal       Tons/       Average Grade
                                   Tonnes         (opt/gpt)
                                 (millions)          Au
    Sega Resource       Gold         --              --
    Relief Canyon       Gold         --              --
    Project             Gold         --              --
    Hot Pot Project     Gold         --              --
    Properties          Gold         --              --
    Night Hawk Lake
    Property            Base         --              --
    Lluvia de
    Oro Mine            Gold         --              --

    (1)  Set forth below are the definitions of proven and probable reserves
         used by the U.S. Securities and Exchange Commission.  Some of these
         royalty operators are Canadian issuers.  Their 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.

         "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)  This information is derived from publicly-available information from
         the operators of the properties and Battle Mountain Gold
         Exploration's National Instrument 43-101 reports.

    (3)  "Contained ounces" are 100% of the reserves subject to the royalty
         interests and do not take into account losses in processing the ore.

    (4)  Royalty applies to gold production only.

    (5)  Battle Mountain holds an option to acquire a 2% NSR royalty which
         applies to both gold and silver.

    (6)  Orezone has the right to buy back up to 2.0% of the royalty for
         $2 million.


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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