- Gold reserves increase 30% to 64.2 million ounces DENVER, May 20
/PRNewswire-FirstCall/ -- ROYAL GOLD, INC. (Nasdaq: RGLD; TSX:
RGL), a leading precious metals royalty company, today announced
updated estimates for ore reserves, additional mineralization, and
calendar 2009 production forecasts for its royalty portfolio.
Updated reserves, additional mineralization and production
estimates, as of December 31, 2008, are provided to the Company by
the operators of its royalty properties or have been obtained by
Royal Gold through publicly available information. At the end of
calendar 2008, total precious metals reserves subject to the
Company's royalty interests include 64.2 million ounces of gold and
1.2 billion ounces of silver. This reflects a net gain of 14.7
million ounces of gold and 167 million ounces of silver,
representing a 30 % increase in gold reserves and a 16% increase in
silver reserves over the prior calendar year-end. Tony Jensen,
President and Chief Executive Officer, commented, "We are pleased
to report significant increases in our precious metal reserves. Our
reserve growth is largely a result of the portfolio of royalties we
acquired in the Barrick transaction and the on-going successes of
our royalty operators in converting additional mineralized material
into reserves, particularly at the Penasquito, Cortez, Canadian
Malartic and Mulatos properties. This increase reinforces our
strategy to identify and acquire royalty properties with
significant upside potential that are managed by top-quality
operators." PRINCIPAL PRODUCING PROPERTIES Summarized below are our
principal producing and development properties. The Company
considers both historical and future expected revenues in
determining which royalties in our portfolio are principal to our
business. Cortez - Pipeline Mining Complex (USA, Nevada) The Cortez
Pipeline Mining Complex is a large surface gold mining operation
operated by Barrick. Royal Gold holds four gold royalty interests
at Cortez, consisting of two sliding-scale gross smelter return
("GSR") royalties ("GSR1" and "GSR2"), a fixed-rate GSR royalty
("GSR3") and a net value return royalty ("NVR1"). The GSR1 and GSR2
royalty rate is currently 5.0% and covers a majority of the
Pipeline, South Pipeline, Crossroads area and a portion of the Gap
deposit. The GSR3 royalty rate is fixed at 0.71% for the life of
the mine and covers the same area as GSR1 and GSR2 combined, except
for the Crossroads deposit. The 0.39% NVR1 royalty covers
production from the GAS Claims, an area of interest of
approximately 4,000 acres that includes the South Pipeline deposit,
but excludes the Pipeline and Crossroads deposits. The Company is
currently receiving royalty revenue from all four royalties.
Robinson Mine (USA, Nevada) Royal Gold holds a 3.0% net smelter
return ("NSR") royalty on the Robinson mine, a surface copper mine
with significant gold credits. The mine is operated by Quadra
Mining Ltd. ("Quadra"). Leeville Mining Complex (USA, Nevada) Royal
Gold holds a 1.8% NSR royalty covering a majority of the
underground Leeville Mining Complex. Leeville is operated by
Newmont Mining Corporation ("Newmont"). Goldstrike Mine - SJ Claims
(USA, Nevada) Royal Gold holds a 0.9% NSR royalty covering a
portion of the Betze-Post gold mine, known as the SJ Claims. The
Betze-Post mine, which is part of the larger surface Goldstrike
operation, is operated by Barrick Gold Corporation ("Barrick").
Penasquito Mine (Mexico, Zacatecas) Royal Gold holds a 2.0% NSR
royalty on all metals produced from the Penasquito project operated
by Goldcorp Inc. ("Goldcorp"). The Penasquito project, a surface
mine composed of two main deposits called Penasco and Chile
Colorado, hosts one of the world's largest gold, silver, and zinc
reserves, while also containing large lead reserves. Production
commenced in June 2008 from the oxide portion of the deposit.
Start-up of the first sulfide circuit is scheduled to begin in the
second half of calendar 2009 with production from the second
sulfide circuit commencing in the second half of calendar 2010.
Mulatos Mine (Mexico, Sonora) Royal Gold holds a 1.0% - 5.0% NSR
sliding-scale royalty, currently paying at 5.0%. Mulatos is a
surface gold mine operated by Alamos Gold Inc. ("Alamos"). The
royalty is capped at two million ounces of gold production. As of
March 31, 2009, approximately 370,000 cumulative ounces of gold
have been produced. Taparko Mine (West Africa, Burkina Faso) Royal
Gold holds two initial concurrent production payments, both
equivalent to GSR royalties, and two subsequent GSR royalties at
the Taparko-Bouroum project, a surface gold operation. The project
is operated by High River Gold Mines Ltd. ("High River"). The first
GSR-equivalent royalty ("TB-GSR1") is fixed at a rate of 15.0%. The
second GSR-equivalent royalty ("TB-GSR2") is a sliding-scale
royalty ranging from 0.0% to 10.0%, depending upon the price of
gold. The TB-GSR2 royalty pays out at a rate of 4.3% when the
average monthly gold price ranges between $385 and $430 per ounce.
Outside of this range, the royalty rate is calculated by dividing
the average monthly gold price by 100 for gold prices above $430
per ounce, or by dividing the average monthly gold price by 90 for
gold prices below $385 per ounce (e.g., a $900 per ounce gold price
results in a rate of 900/100 = 9.0%). Both TB-GSR1 and TB-GSR2
continue until either total production reaches 804,420 ounces of
gold, or Royal Gold receives payments totaling $35 million under
TB-GSR1, whichever occurs first. As of March 31, 2009, the Company
has recognized revenue totaling $8.8 million on production of
67,000 ounces of gold. The two subsequent royalties consist of a
2.0% GSR perpetual royalty ("TB-GSR3"), applicable to gold
production from defined portions of the Taparko-Bouroum project
area, and a 0.75% GSR milling royalty ("TB-MR1"). The TB-MR1
applies to ore that is mined outside of the defined area of the
Taparko-Bouroum project that is processed through the Taparko
facilities, up to a maximum of 1.1 million tons per year. Both the
TB-GSR3 and TB-MR1 royalties commence once TB-GSR1 and TB-GSR2,
described earlier, have ceased. Siguiri (West Africa, Guinea) Royal
Gold holds a 0.0% - 1.875% NSR sliding-scale royalty currently
paying 1.875%. Siguiri is a surface gold mine operated by AngloGold
Ashanti ("AngloGold"). The royalty is subject to a dollar cap of
approximately $12.0 million. As of March 31, 2009, approximately
$9.3 million remains under the cap. Dolores (Mexico, Chihuahua)
Royal Gold holds a 1.25% NSR on gold and a 2.0% NSR on both gold
and silver production from the Dolores project, a surface gold and
silver mine operated by Minefinders Corporation Ltd.
("Minefinders"). Initial production and associated royalty revenue
from the 1.25% NSR royalty commenced in the fourth quarter of
calendar 2008. On May 1, 2009, the 2.0% NSR royalty on both gold
and silver became effective. KEY DEVELOPMENT STAGE PROPERTIES
Pascua-Lama (Chile, Region III) Royal Gold holds a 0.16% - 1.08%
sliding-scale NSR royalty on the Pascua-Lama project. Pascua-Lama
is owned by Barrick. The NSR royalty is applicable to all gold
production from an area of interest in Chile. Royal Gold also holds
a 0.216% fixed-rate copper royalty which applies to all of the
copper reserves in Chile within the area of interest, but does not
take effect until after January 1, 2017. On May 7, 2009, Barrick
announced that it is proceeding to construction with the
Pascua-Lama project, and that it has finalized the project's
economic parameters, received key construction permits, and
satisfactorily resolved key outstanding fiscal matters with the
governments of Chile and Argentina. Commissioning is expected in
late 2012 and production in early 2013. Canadian Malartic (Canada,
Quebec) Royal Gold holds a 2.0% - 3.0% sliding-scale NSR royalty on
the Canadian Malartic gold project owned by Osisko Mining
Corporation ("Osisko"). The NSR royalty is subject to a buy down
right of $1.0 - $1.5 million depending upon the price of gold, and
is exercisable at any time for one half of the royalty. Osisko is
currently developing the Canadian Malartic gold deposit as a
large-scale surface mining operation. OTHER DEVELOPMENTS Benso
(Ghana, Western Region) In October 2007, Royal Gold purchased a
1.5% NSR royalty on the Benso gold concession from FairWest Energy
Corporation for $1.875 million. Benso is located in Ghana and
operated by Golden Star Resources Ltd ("Golden Star"). The royalty
was subject to a buy back right by Golden Star for Cdn$4.0 million
(US$3.4 million). Golden Star exercised its right to repurchase the
royalty in May 2009. Since production at the property commenced in
August 2008, Royal Gold has received $1.0 million in royalty
revenue. RESERVE AND PRODUCTION INFORMATION The attached Tables
contain information regarding the reserves, additional
mineralization, and production for all of the Company's producing
and development properties. Tables 1 and 2 show all of our royalty
interests with associated reserves and additional mineralized
material and are organized by metal and geographic location. Our
royalty interests represent only a percentage interest in the
reserves and production described in the attached tables. Those
percentage interests are based on the terms of the royalty
interests applicable to the properties. For further information
about our royalty interests, please see our Annual Report on Form
10-K, as well as our other public reports. CORPORATE PROFILE Royal
Gold is a precious metals royalty company engaged in the
acquisition and management of precious metal royalty interests. The
Company owns royalties on 117 properties on five continents,
including royalties on 27 producing mines and 9 development stage
projects. 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 website is located at
http://www.royaltygold.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 the
on-going success of Royal Gold's royalty operators in converting
additional mineralized material into reserves; the Company's
strategy to identify and acquire royalty properties with
significant upside potential that are managed by top-quality
operators; production estimates for calendar 2009 provided by
third-party operators; reserves and additional mineralization
estimates provided by or derived from information provided by third
party operators; the sliding-scale features of our royalty
structure at certain of our properties; or commencement of
production or construction from the operators of certain
properties; and the expectation of the royalty payment caps at the
Troy and Taparko mines to be met. Like any royalty on a
non-producing or not yet in development project, our royalties on
development projects are subject to certain risks, such as the
ability of the operators to bring the projects into production and
operate in accordance with their feasibility studies and the
ability of Royal Gold to make accurate assumptions regarding
valuation and timing and amount of royalty payments. In addition,
many of our royalty interests 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 include, among others, changes in precious metals
prices, performance of and production at our royalty properties,
decisions and activities of the operators of our royalty
properties, mine completion, unanticipated grade, geological,
metallurgical, processing or other problems the operators of the
mining properties may encounter, changes in project parameters as
plans continue to be refined, economic and market conditions, and
future financial needs of our operators, 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. These factors are beyond the Company's ability to
predict or control. The Company 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
Royal Gold's Royalty Portfolio Proven and Probable Gold Reserves
(1),(2),(3) as of December 31, 2008 (4),(5) Mines are in production
unless noted as development ("DEV") PROVEN RESERVES Avg. Gold Tons
of Gold Contained Ore Grade Ozs(7) PROPERTY ROYALTY(6) OPERATOR
LOCATION (millions) (oz/ton) (millions) Bald 1.75 - Moun- 3.5% USA,
tain(8) NSR Barrick Nevada - - - Cortez (Pipe- 0.40 - line) 5.0%
USA, GSR1 GSR Barrick Nevada 3.80 0.095 0.360 Cortez (Pipe- 0.40 -
line) 5.0% USA, GSR2 GSR Barrick Nevada 8.29 0.038 0.312 Cortez
(Pipe- line) 0.71% USA, GSR3 GSR Barrick Nevada 5.48 0.076 0.414
Cortez (Pipe- line) 0.39% USA, NVR1 NVR Barrick Nevada 3.69 0.047
0.173 Gold 1.0 - Hill 2.0% Kinross/ USA, (DEV) NSR Barrick Nevada
0.28 0.013 0.004 Gold- 0.9% USA, strike(8) NSR Barrick Nevada - - -
Lee- 1.8% USA, ville(8) NSR Newmont Nevada - - - Mari- gold(10)
2.0% Goldcorp/ USA, (DEV) NSR Barrick Nevada 11.75 0.021 0.251
Robinson 3.0% USA, NSR Quadra Nevada 130.04 0.007 0.884 Twin 2.0%
USA, Creeks(8) GPR Newmont Nevada - - - PROBABLE RESERVES Avg. Gold
Tons of Gold Contained Ore Grade Ozs(7) PROPERTY ROYALTY(6)
OPERATOR LOCATION (millions) (oz/ton) (millions) Bald 1.75 - Moun-
3.5% USA, tain(8) NSR Barrick Nevada - - - Cortez (Pipe- 0.40 -
line) 5.0% USA, GSR1 GSR Barrick Nevada 24.14 0.051 1.227 Cortez
(Pipe- 0.40 - line) 5.0% USA, GSR2 GSR Barrick Nevada 74.65 0.032
2.362 Cortez (Pipe- line) 0.71% USA, GSR3 GSR Barrick Nevada 41.32
0.039 1.619 Cortez (Pipe- line) 0.39% USA, NVR1 NVR Barrick Nevada
38.46 0.037 1.419 Gold 1.0 - Hill 2.0% Kinross/ USA, (DEV) NSR
Barrick Nevada 31.08 0.015 0.459 Gold- 0.9% USA, strike(8) NSR
Barrick Nevada - - - Lee- 1.8% USA, ville(8) NSR Newmont Nevada - -
- Mari- gold(10) 2.0% Goldcorp/ USA, (DEV) NSR Barrick Nevada 23.89
0.018 0.433 Robinson 3.0% USA, NSR Quadra Nevada 4.10 0.005 0.021
Twin 2.0% USA, Creeks(8) GPR Newmont Nevada - - - PROVEN + PROBABLE
RESERVES Avg. Gold Tons of Gold Contained Ore Grade Ozs(7) PROPERTY
ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions) Bald
1.75 - Moun- 3.5% USA, tain(8) NSR Barrick Nevada 27.45 0.026 0.720
Cortez (Pipe- 0.40 - line) 5.0% USA, GSR1 GSR Barrick Nevada 27.94
0.057 1.587(9) Cortez (Pipe- 0.40 - line) 5.0% USA, GSR2 GSR
Barrick Nevada 82.95 0.032 2.674(9) Cortez (Pipe- line) 0.71% USA,
GSR3 GSR Barrick Nevada 46.79 0.043 2.033(9) Cortez (Pipe- line)
0.39% USA, NVR1 NVR Barrick Nevada 42.15 0.038 1.592(9) Gold 1.0 -
Hill 2.0% Kinross/ USA, (DEV) NSR Barrick Nevada 31.37 0.015 0.463
Gold- 0.9% USA, strike(8) NSR Barrick Nevada 47.82 0.121 5.768 Lee-
1.8% USA, ville(8) NSR Newmont Nevada 7.68 0.328 2.518 Mari-
gold(10) 2.0% Goldcorp/ USA, (DEV) NSR Barrick Nevada 35.63 0.019
0.683 Robinson 3.0% USA, NSR Quadra Nevada 134.14 0.007 0.905 Twin
2.0% USA, Creeks(8) GPR Newmont Nevada - - 0.080 TABLE 1 (cont.)
Royal Gold's Royalty Portfolio Proven and Probable Gold Reserves
(1),(2),(3) as of December 31, 2008 (4),(5) Mines are in production
unless noted as development ("DEV") PROVEN RESERVES Avg. Gold Tons
of Gold Contained Ore Grade Ozs(7) PROPERTY ROYALTY(6) OPERATOR
LOCATION (millions) (oz/ton) (millions) Wharf(11) 0.0 - 2.0% USA,
NSR Goldcorp S. Dakota 11.61 0.023 0.270 Canadian Malartic 2.0 -
(8),(12) 3.0% Osisko Canada, (DEV) NSR Mining Quebec - - - St.
Holt- 0.00013 Andrew Holloway x Gold Gold- Canada, (13)(DEV) Price
fields Ontario 0.11 0.187 0.021 New Island Resources/ Pine Cove
7.5% Anaconda Canada, (DEV) NPI Mining Newfoundland 0.00 0.000
0.000 Williams 0.72% Canada, NSR Barrick Ontario 7.78 0.073 0.567
Dolores 1.25% (14) NSR 2.0% Mine- Mexico, NSR(15) finders Chihuahua
62.42 0.023 1.454 El 2.0 - Chanate 4.0% Capital Mexico, (16) NSR
Gold Sonora 23.03 0.023 0.519 Mulatos 1.0 - (17) 5.0% Mexico, NSR
Alamos Sonora 13.01 0.050 0.649 Penasquito (18) 2.0% Mexico,
(Oxide) NSR Goldcorp Zacatecas 63.71 0.006 0.360 Penasquito (18)
(Sulfide) 2.0% Mexico, (DEV) NSR Goldcorp Zacatecas 618.62 0.018
11.390 PROBABLE RESERVES Avg. Gold Tons of Gold Contained Ore Grade
Ozs(7) PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton)
(millions) Wharf(11) 0.0 - 2.0% USA, NSR Goldcorp S. Dakota 1.39
0.022 0.030 Canadian Malartic 2.0 - (8),(12) 3.0% Osisko Canada,
(DEV) NSR Mining Quebec - - - St. Holt- 0.00013 Andrew Holloway x
Gold Gold- Canada, (13)(DEV) Price fields Ontario 2.84 0.164 0.466
New Island Resources/ Pine Cove 7.5% Anaconda Canada, (DEV) NPI
Mining Newfoundland 2.57 0.081 0.207 Williams 0.72% Canada, NSR
Barrick Ontario 1.80 0.103 0.185 Dolores 1.25% (14) NSR 2.0% Mine-
Mexico, NSR(15) finders Chihuahua 47.04 0.021 0.990 El 2.0 -
Chanate 4.0% Capital Mexico, (16) NSR Gold Sonora 24.52 0.020 0.395
Mulatos 1.0 - (17) 5.0% Mexico, NSR Alamos Sonora 39.52 0.035 1.397
Penasquito (18) 2.0% Mexico, (Oxide) NSR Goldcorp Zacatecas 137.40
0.003 0.430 Penasquito (18) (Sulfide) 2.0% Mexico, (DEV) NSR
Goldcorp Zacatecas 493.53 0.011 5.250 PROVEN + PROBABLE RESERVES
Avg. Gold Tons of Gold Contained Ore Grade Ozs(7) PROPERTY
ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions)
Wharf(11) 0.0 - 2.0% USA, NSR Goldcorp S. Dakota 13.00 0.023 0.300
Canadian Malartic 2.0 - (8),(12) 3.0% Osisko Canada, (DEV) NSR
Mining Quebec 150.56 0.031 4.727 St. Holt- 0.00013 Andrew Holloway
x Gold Gold- Canada, (13)(DEV) Price fields Ontario 2.95 0.165
0.487 New Island Resources/ Pine Cove 7.5% Anaconda Canada, (DEV)
NPI Mining Newfoundland 2.57 0.081 0.207 Williams 0.72% Canada, NSR
Barrick Ontario 9.57 0.079 0.752 Dolores 1.25% (14) NSR 2.0% Mine-
Mexico, NSR(15) finders Chihuahua 109.46 0.022 2.444 El 2.0 -
Chanate 4.0% Capital Mexico, (16) NSR Gold Sonora 47.55 0.022 0.913
Mulatos 1.0 - (17) 5.0% Mexico, NSR Alamos Sonora 52.53 0.039 2.046
Penasquito (18) 2.0% Mexico, (Oxide) NSR Goldcorp Zacatecas 201.11
0.004 0.800 Penasquito (18) (Sulfide) 2.0% Mexico, (DEV) NSR
Goldcorp Zacatecas 1,112.15 0.015 16.630 TABLE 1 (cont.) Royal
Gold's Royalty Portfolio Proven and Probable Gold Reserves
(1),(2),(3) as of December 31, 2008 (4),(5) Mines are in production
unless noted as development ("DEV") PROVEN RESERVES Avg. Gold Tons
of Gold Contained Ore Grade Ozs(7) PROPERTY ROYALTY(6) OPERATOR
LOCATION (millions) (oz/ton) (millions) Don Mario Bolivia, (8),(19)
3.0% Chiquitos (LMZ) NSR Orvana Province - - - El Limon 3.0%
Nicaragua, NSR B2Gold El Limon 0.08 0.157 0.012 El Toqui 1.0 - 3.0%
Break- Chile, (20) NSR water Region XI 0.73 0.105 0.077 Argentina,
Martha 2.0% Coeur Santa Cruz NSR d'Alene Province 0.02 0.07 0.001
Pascua- 0.16 - Lama(21) 1.08% Chile, (DEV) NSR Barrick Region III
36.10 0.053 1.917 Balcooma 1.5% Australia, (22) NSR Kagara
Queensland 0.35 0.020 0.007 Meeka- tharra A$10.00 (23) per (Paddy's
gold Australia, Flat) ounce Mercator Western (DEV) produced Gold
Australia 0.00 0.000 0.000 Siguiri 0.0 - Anglo- West (24) 1.875%
gold Africa, NSR Ashanti Guinea 61.87 0.016 1.010 PROBABLE RESERVES
Avg. Gold Tons of Gold Contained Ore Grade Ozs(7) PROPERTY
ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions) Don
Mario Bolivia, (8),(19) 3.0% Chiquitos (LMZ) NSR Orvana Province -
- - El Limon 3.0% Nicaragua, NSR B2Gold El Limon 1.20 0.135 0.162
El Toqui 1.0 - (20) 3.0% Break- Chile, NSR water Region XI 2.95
0.070 0.207 Argentina, Martha 2.0% Coeur Santa Cruz NSR d'Alene
Province 0.06 0.04 0.002 Pascua- 0.16 - Lama(21) 1.08% Chile, (DEV)
NSR Barrick Region III 288.60 0.044 12.698 Balcooma 1.5% Australia,
(22) NSR Kagara Queensland 2.44 0.008 0.019 Meeka- tharra A$10.00
(23) per (Paddy's gold Australia, Flat) ounce Mercator Western
(DEV) produced Gold Australia 2.19 0.140 0.308 Siguiri 0.0 - Anglo-
West (24) 1.875% gold Africa, NSR Ashanti Guinea 73.98 0.030 2.240
PROVEN + PROBABLE RESERVES Avg. Gold Tons of Gold Contained Ore
Grade Ozs(7) PROPERTY ROYALTY(6) OPERATOR LOCATION (millions)
(oz/ton) (millions) Don Mario Bolivia, (8),(19) 3.0% Chiquitos
(LMZ) NSR Orvana Province 0.21 0.290 0.060 El Limon 3.0% Nicaragua,
NSR B2Gold El Limon 1.28 0.136 0.174 El Toqui 1.0 - (20) 3.0%
Break- Chile, NSR water Region XI 3.68 0.077 0.284 Argentina,
Martha 2.0% Coeur Santa Cruz NSR d'Alene Province 0.08 0.04 0.003
Pascua- 0.16 - Lama(21) 1.08% Chile, (DEV) NSR Barrick Region III
324.70 0.045 14.615 Balcooma 1.5% Australia, (22) NSR Kagara
Queensland 2.79 0.009 0.026 Meeka- tharra A$10.00 (23) per (Paddy's
gold Australia, Flat) ounce Mercator Western (DEV) produced Gold
Australia 2.19 0.140 0.308 Siguiri 0.0 - Anglo- West (24) 1.875%
gold Africa, NSR Ashanti Guinea 135.85 0.024 3.250 TABLE 1 (cont.)
Royal Gold's Royalty Portfolio Proven and Probable Gold Reserves
(1),(2),(3) as of December 31, 2008 (4),(5) Mines are in production
unless noted as development ("DEV") PROVEN RESERVES Avg. Gold Tons
of Gold Contained Ore Grade Ozs(7) PROPERTY ROYALTY(6) OPERATOR
LOCATION (millions) (oz/ton) (millions) Taparko (25) 15.0% GSR West
TB-GSR1 and 0.0 - Africa, and 10.0% High Burkina TB-GSR2 GSR River
Faso - - - West Taparko Africa, (25) 2.0% High Burkina TB-GSR3 GSR
River Faso - - - PROBABLE RESERVES Avg. Gold Tons of Gold Contained
Ore Grade Ozs(7) PROPERTY ROYALTY(6) OPERATOR LOCATION (millions)
(oz/ton) (millions) Taparko (25) 15.0% GSR West TB-GSR1 and 0.0 -
Africa, and 10.0% High Burkina TB-GSR2 GSR River Faso - - - West
Taparko Africa, (25) 2.0% High Burkina TB-GSR3 GSR River Faso - - -
PROVEN + PROBABLE RESERVES Avg. Gold Tons of Gold Contained Ore
Grade Ozs(7) PROPERTY ROYALTY(6) OPERATOR LOCATION (millions)
(oz/ton) (millions) Taparko (25) 15.0% GSR West TB-GSR1 and 0.0 -
Africa, and 10.0% High Burkina TB-GSR2 GSR River Faso 3.09 0.085
0.262(26),(27) West Taparko Africa, (25) 2.0% High Burkina TB-GSR3
GSR River Faso 6.42 0.085 0.544 TABLE 1 (cont.) Royal Gold's
Royalty Portfolio Proven and Probable Silver Reserves (1),(2),(3)
as of December 31, 2008 (5),(28) Mines are in production unless
noted as development ("DEV") PROVEN RESERVES Avg. Silver Tons of
Silver Contained Ore Grade Ozs(7) PROPERTY ROYALTY(6) OPERATOR
LOCATION (millions) (oz/ton) (millions) Troy(25) 7.0% GSR(29) 6.1%
GSR(29) 2.0% USA, GSR(29) Revett Montana - - - Dolores 2.0% Mine-
Mexico, (14) NSR(15) finders Chihuahua 62.42 1.18 73.415 Penasquito
(18) 2.0% Mexico, (Oxide) NSR Goldcorp Zacatecas 63.71 0.54 34.300
Penasquito (18) (Sulfide) 2.0% Mexico, (DEV) NSR Goldcorp Zacatecas
618.62 0.99 611.500 El Toqui 1.0 - (20) 3.0% Break- Chile, NSR
water Region XI 0.73 0.15 0.106 Argentina, Martha 2.0% Coeur Santa
Cruz NSR d'Alene Province 0.02 55.86 0.992 Balcooma 1.5% Australia,
(22) NSR Kagara Queensland 0.35 1.87 0.654 PROBABLE RESERVES Avg.
Silver Tons of Silver Contained Ore Grade Ozs(7) PROPERTY
ROYALTY(6) OPERATOR LOCATION (millions) (oz/ton) (millions)
Troy(25) 7.0% GSR(29) 6.1% GSR(29) 2.0% USA, GSR(29) Revett Montana
- - - Dolores 2.0% Mine- Mexico, (14) NSR(15) finders Chihuahua
47.04 1.13 53.230 Penasquito (18) 2.0% Mexico, (Oxide) NSR Goldcorp
Zacatecas 137.40 0.28 37.800 Penasquito (18) (Sulfide) 2.0% Mexico,
(DEV) NSR Goldcorp Zacatecas 493.53 0.73 362.100 El Toqui 1.0 -
(20) 3.0% Break- Chile, NSR water Region XI 2.95 0.38 1.121
Argentina, Martha 2.0% Coeur Santa Cruz NSR d'Alene Province 0.06
31.22 1.817 Balcooma 1.5% Australia, (22) NSR Kagara Queensland
2.44 0.41 1.003 PROVEN + PROBABLE RESERVES Avg. Silver Tons of
Silver Contained Ore Grade Ozs(7) PROPERTY ROYALTY(6) OPERATOR
LOCATION (millions) (oz/ton) (millions) Troy(25) 7.0% GSR(29) 0.48
1.19 0.569(30) 6.1% GSR(29) 1.72 1.19 2.046 2.0% USA, GSR(29)
Revett Montana 0.98 1.19 1.164 Dolores 2.0% Mine- Mexico, (14)
NSR(15) finders Chihuahua 109.46 1.16 126.645 Penasquito (18) 2.0%
Mexico, (Oxide) NSR Goldcorp Zacatecas 201.11 0.36 72.100
Penasquito (18) (Sulfide) 2.0% Mexico, (DEV) NSR Goldcorp Zacatecas
1,112.15 0.88 973.600 El Toqui 1.0 - (20) 3.0% Break- Chile, NSR
water Region XI 3.68 0.33 1.227 Argentina, Martha 2.0% Coeur Santa
Cruz NSR d'Alene Province 0.08 36.96 2.809 Balcooma 1.5% Australia,
(22) NSR Kagara Queensland 2.79 0.59 1.657 TABLE 1 (cont.) Royal
Gold's Royalty Portfolio Proven and Probable Base Metal Reserves
(1),(2),(3) as of December 31, 2008 (5) Mines are in production
unless noted as development ("DEV") COPPER (31) PROVEN RESERVES
Avg. Copper Tons of Copper Contained Ore Grade Lbs(7) PROPERTY
ROYALTY(6) OPERATOR LOCATION (millions) (% Cu) (millions) Robinson
3.0% USA, NSR Quadra Nevada 130.04 0.55 1,420 Troy(25) 7.0% GSR(29)
6.1% GSR(29) 2.0% USA, GSR(29) Revett Montana - - - El Toqui 1.0 -
Break- Chile, (20) 3.0% water Region XI 0.00 0.00 0 NSR Balcooma
1.5% Australia, (22) NSR Kagara Queensland 0.35 1.30 9 PROBABLE
RESERVES Avg. Copper Tons of Copper Contained Ore Grade Lbs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (% Cu) (millions)
Robinson 3.0% USA, NSR Quadra Nevada 4.10 0.42 35 Troy(25) 7.0%
GSR(29) 6.1% GSR(29) 2.0% USA, GSR(29) Revett Montana - - - El
Toqui 1.0 - (20) 3.0% Break- Chile, NSR water Region XI 2.95 0.10 6
Balcooma 1.5% Australia, (22) NSR Kagara Queensland 2.44 3.05 149
PROVEN + PROBABLE RESERVES Avg. Copper Tons of Copper Contained Ore
Grade Lbs(7) PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (%
Cu) (millions) Robinson 3.0% USA, NSR Quadra Nevada 134.14 0.54
1,455 Troy(25) 7.0% GSR(29) 0.44 0.57 5(30) 6.1% GSR(29) 1.50 0.57
17 2.0% USA, GSR(29) Revett Montana 2.38 0.57 27 El Toqui 1.0 -
(20) 3.0% Break- Chile, 2.95 0.10 6 NSR water Region XI Balcooma
1.5% Australia, (22) NSR Kagara Queensland 2.79 2.83 158 TABLE 1
(cont.) Royal Gold's Royalty Portfolio Proven and Probable Base
Metal Reserves (1),(2),(3) as of December 31, 2008 (5) Mines are in
production unless noted as development ("DEV") ZINC (32) PROVEN
RESERVES Avg. Zinc Tons of Zinc Contained Ore Grade Lbs(7) PROPERTY
ROYALTY(6) OPERATOR LOCATION (millions) (% Zn) (millions)
Penasquito (18) (Sulfide) 2.0% Mexico, (DEV) NSR Goldcorp Zacatecas
618.62 0.77 9,587 El Toqui 1.0 - (20) 3.0% Break- Chile, NSR water
Region XI 0.73 7.30 106 Balcooma 1.5% Australia, (22) NSR Kagara
Queensland 0.35 7.20 50 PROBABLE RESERVES Avg. Zinc Tons of Zinc
Contained Ore Grade Lbs(7) PROPERTY ROYALTY(6) OPERATOR LOCATION
(millions) (% Zn) (millions) Penasquito (18) (Sulfide) 2.0% Mexico,
(DEV) NSR Goldcorp Zacatecas 493.53 0.59 5,776 El Toqui 1.0 - (20)
3.0% Break- Chile, NSR water Region XI 2.95 7.10 419 Balcooma 1.5%
Australia, (22) NSR Kagara Queensland 2.44 0.43 21 PROVEN +
PROBABLE RESERVES Avg. Zinc Tons of Zinc Contained Ore Grade Lbs(7)
PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (% Zn) (millions)
Penasquito (18) (Sulfide) 2.0% Mexico, (DEV) NSR Goldcorp Zacatecas
1,112.15 0.69 15,364 El Toqui 1.0 - (20) 3.0% Break- Chile, NSR
water Region XI 3.68 7.14 525 Balcooma 1.5% Australia, (22) NSR
Kagara Queensland 2.79 1.28 71 LEAD (33) PROVEN RESERVES Avg. Lead
Tons of Lead Contained Ore Grade Lbs(7) PROPERTY ROYALTY(6)
OPERATOR LOCATION (millions) (% Pb) (millions) Penasquito (18)
(Sulfide) 2.0% Mexico, (DEV) NSR Goldcorp Zacatecas 618.62 0.36
4,437 El Toqui 1.0 - (20) 3.0% Break- Chile, NSR water Region XI
0.73 0.20 3 Balcooma 1.5% Australia, (22) NSR Kagara Queensland
0.35 2.60 18 PROBABLE RESERVES Avg. Lead Tons of Lead Contained Ore
Grade Lbs(7) PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (%
Pb) (millions) Penasquito (18) (Sulfide) 2.0% Mexico, (DEV) NSR
Goldcorp Zacatecas 493.53 0.27 2,633 El Toqui 1.0 - (20) 3.0%
Break- Chile, NSR water Region XI 2.95 0.50 30 Balcooma 1.5%
Australia, (22) NSR Kagara Queensland 2.44 0.19 9 PROVEN + PROBABLE
RESERVES Avg. Lead Tons of Lead Contained Ore Grade Lbs(7) PROPERTY
ROYALTY(6) OPERATOR LOCATION (millions) (% Pb) (millions)
Penasquito (18) (Sulfide) 2.0% Mexico, (DEV) NSR Goldcorp Zacatecas
1,112.15 0.32 7,070 El Toqui 1.0 - (20) 3.0% Break- Chile, NSR
water Region XI 3.68 0.44 33 Balcooma 1.5% Australia, (22) NSR
Kagara Queensland 2.79 0.49 27 TABLE 1 (cont.) Royal Gold's Royalty
Portfolio Proven and Probable Base Metal and Other Reserves
(1),(2),(3) as of December 31, 2008 (5) Mines are in production
unless noted as development ("DEV") NICKEL (34) PROVEN RESERVES
Avg. Nickel Tons of Nickel Contained Ore Grade Lbs(7) PROPERTY
ROYALTY(6) OPERATOR LOCATION (millions) (% Ni) (millions) Mt. Goode
Australia, (8) 1.5% Western (Cosmos) NSR Xstrata Australia - - -
PROBABLE RESERVES Avg. Nickel Tons of Nickel Contained Ore Grade
Lbs(7) PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) (% Ni)
(millions) Mt. Goode Australia, (8) 1.5% Western (Cosmos) NSR
Xstrata Australia - - - PROVEN + PROBABLE RESERVES Avg. Nickel Tons
of Nickel Contained Ore Grade Lbs(7) PROPERTY ROYALTY(6) OPERATOR
LOCATION (millions) (% Ni) (millions) Mt. Goode Australia, (8) 1.5%
Western (Cosmos) NSR Xstrata Australia 1.21 4.12 101 POTASH (35)
PROVEN RESERVES Finished Product Tons of Avg. Contained Ore K20
Tons(7) PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) Grade
(millions) Allan(36), $0.36 - Potash (37) $1.44 per Corp- ton and
oration $0.25/ton of Canada, Saskat- Saskat- chewan chewan - - -
PROBABLE RESERVES Finished Product Tons of Avg. Contained Ore K20
Tons(7) PROPERTY ROYALTY(6) OPERATOR LOCATION (millions) Grade
(millions) Allan(36), $0.36 - Potash (37) $1.44 per Corp- ton and
oration $0.25/ton of Canada, Saskat- Saskat- chewan chewan - - -
PROVEN + PROBABLE RESERVES Finished Product Tons of Avg. Contained
Ore K20 Tons(7) PROPERTY ROYALTY(6) OPERATOR LOCATION (millions)
Grade (millions) Allan(36), $0.36 - Potash (37) $1.44 per Corp- ton
and oration $0.25/ton of Canada, Saskat- Saskat- chewan chewan
361.55 25.90 n/a (1) 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) Royal Gold has disclosed a
number of reserve estimates that are provided by royalty operators
that are foreign issuers and are not based on the U.S. Securities
and Exchange Commission's definitions for proven and probable
reserves. For Canadian issuers, 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. For Australian issuers, definitions of
"mineral reserve," "proven mineral reserve," and "probable mineral
reserve" conform with the Australasian Code for Reporting of
Mineral Resources and Ore Reserves prepared by the Joint Ore
Reserves Committee of the Australasian Institute of Mining and
Metallurgy, Australian Institute of Geoscientists and Minerals
Council of Australia, as amended ("JORC Code"). (3) The reserves
reported are either estimates received by the various operators or
are based on royalty documentation material provided to Royal Gold
or which is derived from recent publicly-available information from
the operators of the various properties or various recent National
Instrument 43-101 or JORC Code reports filed by operators.
Accordingly, Royal Gold is not able to reconcile the reserve
estimates prepared in reliance on National Instrument 43-101 or
JORC Code with definitions of the U.S. Securities and Exchange
Commission. (4) Gold reserves were calculated by the operators at
the following per ounce prices: $800 - Robinson and Taparko; $775 -
Canadian Malartic and Holt-Holloway; $750 - El Chanate, Don Mario,
Martha and Williams; $725 - Bald Mountain, Cortez (Pipeline Mining
Complex), Gold Hill; Goldstrike, Leeville, Marigold, Pasca-Lama,
Penasquito, Twin Creeks and Wharf; $720 - Siguiri; $700 - Mulatos;
$600 - Dolores and El Toqui; $550 - El Limon, and $425 - Pine Cove.
No gold price is reported for Balcooma and Meekatharra. (5)
Reserves have been reported by the operators as of December 31,
2008, with the exception of the following properties: Dolores -
March 25, 2008; Balcooma - June 30, 2008; Don Mario - September 30,
2008; Mt. Goode - October 31, 2008; and Pine Cove - March 18, 2005.
(6) See royalty definitions on page 27. (7) "Contained ounces" or
"contained pounds" do not take into account recovery losses in
processing the ore. (8) The operators at Allan, Bald Mountain,
Canadian Malartic, Don Mario, Goldstrike, Leeville, Mt. Goode and
Twin Creeks did not provide a breakdown of proven and probable
reserves. (9) NVR1 and GSR3 reserves are subsets of the reserves
covered by GSR1 and GSR2 reserves. (10) The 2.0% NSR royalty
interest covers the majority of six sections of land, containing a
number of open pits, but does not cover the current mining in the
Basalt/Antler area. (11) NSR sliding-scale schedule (price of gold
per ounce - royalty rate): $0.00 to under $350 - 0.0%; $350 to
under $400 - 0.5%; $400 to under $500 - 1.0%; $500 or higher -
2.0%. (12) Royalty is subject to a buy down right of $1.0 - $1.5
million depending on the price of gold, exercisable at any time,
for one- half of the royalty. NSR sliding-scale schedule (price of
gold per ounce - royalty rate): $0.00 - $350 - 2.0%; above $350 -
3.0%. (13) Royalty applies on production above 400,000 ounces. In
November 2008, the operator made application to a court in Ontario,
Canada for a declaration that it is not obligated to pay the entire
royalty defined under the royalty agreement and to dispute the
royalty rate. The operator claims that its predecessor in interest
is responsible for payment of some or all of the royalty. (14)
Dolores reserve numbers have not been updated since material was
used for late 2008 commissioning activities. (15) The 2.0% royalty
became effective on May 1, 2009. (16) The NSR sliding-scale royalty
is capped once payments of approximately $17 million have been
received. As of March 31, 2009, payments of $1.8 million for the
sliding-scale NSR royalty have been recognized. (17) The Company's
royalty is subject to a 2.0 million ounce cap on gold production.
There have been approximately 370,000 ounces of cumulative
production, as of March 31, 2009. NSR sliding-scale schedule (price
of gold per ounce - royalty rate): $0.00 to $299.99 - 1.0%; $300 to
$324.99 - 1.50%; $325 to $349.99 - 2.0%; $350 to $374.99 - 3.0%;
$375 to $399.99 - 4.0%; $400 or higher - 5.0%. (18) Operator
reported reserve estimates by material types. The sulfide material
will be processed by milling. The oxide material will be processed
using heap leaching. (19) The Don Mario reserves are contained in
the lower mineralized zone ("LMZ"). The upper mineralized zone
("UMZ") is currently the subject of a feasibility study which is
not yet public. (20) NSR sliding-scale schedule (price of zinc per
ounce - royalty rate): $0.50 to below $0.55 - 1.0%; $0.55 to below
$0.60 - 2.0%; $0.60 or higher - 3.0%. Gold is produced as a
by-product of zinc. The royalty is currently held in trust by
Barrick for Royal Gold pending receipt of necessary consents and
assignments. (21) Royalty applies to all gold production from an
area of interest in Chile. Only that portion of the reserves
pertaining to our royalty interest in Chile is reflected here. (22)
A portion of the reported reserves may not be subject to Royal
Gold's royalty interests. (23) Royalty applies on production above
50,000 ounces. (24) The royalty is capped on a dollar basis and
approximately $9.3 million remains unrecognized as of March 31,
2009. NSR sliding- scale schedule (price of gold per ounce -
royalty rate as of 3/31/09): $0.00 to $478.10 - 0.0%; $478.10 to
$546.41 - 0.625%; $546.42 to $580.57 - 0.875%; $580.58 to $614.72 -
1.125%; $614.73 to $648.87 - 1.50%; above $648.87 - 1.875%. The
sliding-scale schedule is based on the average of the United
States, Australian and Canadian Consumer Price Indices on a
quarterly basis. The most current rate available is reflected
herein. (25) Due to the royalty structure at the Taparko and Troy
mines, reserves cannot be broken down into proven and probable.
(26) TB-GSR1 and TB-GSR2 royalties are subject to the same reserve.
(27) The reserves at Taparko have been adjusted by Royal Gold based
on actual 2008 depletion and on the operator's reserve gold price
assumption of $800 per ounce, to reflect the $35 million cap on the
TB-GSR1 royalty. Upon meeting this cap, both the TB-GSR1 and TB-
GSR2 royalties cease and the TB-GSR3 royalty becomes effective. The
TB-GSR3 reserves represent the remaining reserves after subtracting
the reserves associated with TB-GSR1 and TB-GSR2. (28) Silver
reserves were calculated by the operators at the following prices
per ounce: $13.25 - Martha; $12.00 - Penasquito and Troy; $11.00 -
El Toqui; and $10.00 - Dolores. No silver price is available for
Balcooma. (29) The 7.0% GSR extends until either cumulative
production reaches approximately 9.9 million ounces of silver and
84.6 million pounds of copper, or Royal Gold receives $10.5 million
in cumulative payments, whichever occurs first. As of March 31,
2009, Royal Gold has recognized approximately $10.0 million in
royalty revenue which is attributable to cumulative production of
approximately 4.1 million ounces of silver and 35.8 million pounds
of copper. The 6.1% royalty begins on production in excess of 11.0
million ounces of silver and 94.1 million pounds of copper. This
royalty steps down to a perpetual 2.0% GSR royalty after cumulative
production has exceeded 12.7 million ounces of silver and 108.2
million pounds of copper. (30) The reserves subject to the 7.0% GSR
royalty have been calculated by Royal Gold based on the expectation
of meeting the monetary cap of $10.5 million in cumulative
payments. Royal Gold used the operator's December 31, 2008 silver
and copper reserve prices of $12.00 per ounce and $2.25 per pound,
respectively, to calculate this adjustment. (31) Copper reserves
were calculated by the operators at $2.00 per pound for Robinson;
$2.25 per pound for Troy; $2.50 - El Toqui. No copper price is
available for Balcooma. (32) Zinc reserves were calculated by the
operators at the following price per pound: $1.00 - El Toqui; and
$0.80 - Penasquito. No zinc price is available for Balcooma. (33)
Lead reserves were calculated by the operators at the following
price per pound: $0.50 - Penasquito and $0.70 - El Toqui. No lead
price is available for Balcooma. (34) Nickel reserve price was not
available. (35) Potash reserve price was not available. (36) The
reserve calculation parameters used by the operator to determine
reserves can be found in their 2008 Form 10-K. (37) The royalty
applies to 40% of production. The royalty rate is $1.44 per ton for
the first 600,000 tons on which the royalty is paid, reducing to
$0.72 per ton on 600,000-800,000 tons and to $0.36 per ton above
800,000 tons. The sliding-scale is applicable when the price of
potash drops below $23 per ton. Given the North American market
price for potash, the complete sliding-scale schedule is not
presented here. In addition, there is a $0.25 per ton royalty
payable on annual production up to 600,000 tons. NOTES: Lluvia de
Oro - This property was acquired in the Battle Mountain
transaction. The various parties claiming interest in the mining
concessions subject to this royalty have disputed any royalty
obligation. Koolanooka - The Koolanooka reserves are based on an
above ground stockpile of iron ore fines and not at any specific
price. The operators at Reedy's Burnakura and Relief Canyon do not
report reserve information, only additional mineralized material.
TABLE 2 Royal Gold's Royalty Portfolio Gold Additional Mineralized
Material (1),(2),(3) as of December 31, 2008 ADDITIONAL MINERALIZED
PROPERTY ROYALTY (4) OPERATOR MATERIAL Bald Mountain 1.75 - 3.5%
NSR Barrick Measured and Indicated Cortez (Pipeline) GSR1 0.40 -
5.0% GSR Barrick Measured Indicated Inferred Cortez (Pipeline) GSR2
0.40 - 5.0% GSR Barrick Measured Indicated Inferred Cortez
(Pipeline) GSR3 0.71% GSR Barrick Measured Indicated Inferred
Cortez (Pipeline) NVR1 0.39% NVR Barrick Measured Indicated
Inferred Goldstrike - SJ Claims 0.9% NSR Barrick Measured Indicated
Inferred Leeville (6) 1.8% NSR Newmont Non Reserve Material
Marigold (7) 2.0% NSR Goldcorp / Measured Barrick Indicated
Inferred Relief Canyon 4.0% NSR Firstgold Measured Indicated
Inferred Robinson (8) 3.0% NSR Quadra Measured (includes reserves)
Indicated Inferred Wharf 0.0 - 2.0% NSR Goldcorp Measured Indicated
Inferred Holt-Holloway 0.00013 x Gold St. Andrew Measured Price
Goldfields Indicated Inferred Williams 0.72% NSR Barrick Measured
Indicated Inferred Dolores (9) 3.25% NSR Minefinders Measured and
Indicated Inferred AVERAGE GOLD TONS OF GRADE MATERIAL (ounces
PROPERTY (millions) per ton) Bald Mountain 23.02 0.023 - - Cortez
(Pipeline) GSR1 4.08 0.020 (5) 48.06 0.016 (5) 5.77 0.016 (5)
Cortez (Pipeline) GSR2 0.81 0.017 (5) 6.96 0.015 (5) 1.14 0.017 (5)
Cortez (Pipeline) GSR3 4.85 0.019 (5) 54.35 0.016 (5) 6.03 0.016
(5) Cortez (Pipeline) NVR1 2.46 0.018 (5) 25.52 0.015 (5) 2.68
0.013 (5) Goldstrike - SJ Claims 1.07 0.064 2.67 0.053 0.31 0.106
Leeville (6) 0.81 0.392 Marigold (7) 8.47 0.016 33.55 0.015 48.53
0.013 Relief Canyon 0.00 0.000 0.00 0.000 30.48 0.022 Robinson (8)
572.95 0.005 (includes reserves) 146.71 0.003 88.88 0.002 Wharf
2.27 0.022 1.95 0.021 0.51 0.020 Holt-Holloway 1.46 0.194 2.11
0.200 1.18 0.226 Williams 1.11 0.054 0.57 0.114 - - Dolores (9)
7.70 0.090 - - TABLE 2 (cont.) Royal Gold's Royalty Portfolio Gold
Additional Mineralized Material (1),(2) as of December 31, 2008
ADDITIONAL PROPERTY ROYALTY (3) OPERATOR MINERALIZED MATERIAL El
Chanate 2.0 - 4.0% NSR Capital Gold Measured Indicated Inferred
Mulatos 1.0 - 5.0% NSR Alamos Measured Indicated Inferred
Penasquito (10) 2.0% NSR Goldcorp Measured (Oxide) Indicated
Inferred Penasquito (10) 2.0% NSR Goldcorp Measured (Sulfide)
Indicated Inferred Don Mario (11) 3.0% NSR Orvana Minerals Measured
(UMZ) Indicated Inferred El Limon 3.0% NSR B2Gold Measured
Indicated Inferred El Toqui 1.0 - 3.0% NSR Breakwater Measured and
Indicated Inferred Martha 2.0% NSR Coeur d'Alene Measured Indicated
Inferred Pascua-Lama 0.16 - 1.08% Barrick Measured NSR Indicated
Inferred Balcooma (12) 1.5% NSR Kagara Measured Indicated Inferred
Meekatharra A$10.00 per Mercator Gold Measured and gold Indicated
(Paddy's Flat) ounce produced Inferred Reedy's Burnakura 1.5 - 2.5%
NSR ATW Gold Measured Indicated Inferred AVERAGE GOLD TONS OF GRADE
MATERIAL (ounces PROPERTY (millions) per ton) El Chanate 5.63 0.020
17.85 0.018 5.98 0.024 Mulatos 11.76 0.030 46.27 0.028 35.91 0.029
Penasquito (10) 6.35 0.002 (Oxide) 33.51 0.002 43.67 0.003
Penasquito (10) 122.60 0.007 (Sulfide) 555.26 0.007 777.80 0.007
Don Mario (11) 1.86 0.039 (UMZ) 4.98 0.040 0.35 0.037 El Limon 0.26
0.211 0.36 0.132 2.69 0.156 El Toqui 1.74 0.060 - - Martha 0.00
0.030 0.04 0.020 0.03 0.050 Pascua-Lama 8.16 0.037 62.39 0.035 7.28
0.027 Balcooma (12) 0.00 0.000 1.20 0.011 0.63 0.018 Meekatharra
17.51 0.039 (Paddy's Flat) 8.74 0.040 Reedy's Burnakura 0.08 0.288
0.21 0.204 0.16 0.158 TABLE 2 (cont.) Royal Gold's Royalty
Portfolio Gold Additional Mineralized Material (1),(2) as of
December 31, 2008 AVERAGE GOLD ADDITIONAL TONS OF GRADE MINERALIZED
MATERIAL (ounces PROPERTY ROYALTY (3) OPERATOR MATERIAL (millions)
per ton) Siguiri 0.0 - 1.875% NSR AngloGold Measured and Ashanti
Indicated 39.14 0.023 Inferred 70.64 0.026 Taparko 2.0% GSR High
River Measured 0.00 0.000 TB-GSR3 Indicated 0.00 0.000 Inferred
1.27 0.073 TABLE 2 (cont.) Royal Gold's Royalty Portfolio Silver
Additional Mineralized Material (1),(2) as of December 31, 2008
ADDITIONAL MINERALIZED PROPERTY ROYALTY (3) OPERATOR MATERIAL Troy
2.0% GSR Revett Measured Indicated Inferred Dolores (9) 2.0% NSR
Minefinders Measured and Indicated Inferred Penasquito (10) 2.0%
NSR Goldcorp Measured (Oxide) Indicated Inferred Penasquito (10)
2.0% NSR Goldcorp Measured (Sulfide) Indicated Inferred Don Mario
(11) 3.0% NSR Orvana Minerals Measured (UMZ) Indicated Inferred El
Toqui 1.0 - 3.0% NSR Breakwater Measured and Indicated Inferred
Martha 2.0% NSR Coeur d'Alene Measured Indicated Inferred Balcooma
(12) 1.5% NSR Kagara Measured Indicated Inferred AVERAGE SILVER
TONS OF GRADE MATERIAL (ounces PROPERTY (millions) per ton) Troy
38.26 1.43 10.93 0.91 0.00 0.00 Dolores (9) 7.70 2.87 - -
Penasquito (10) 6.35 0.13 (Oxide) 33.51 0.15 43.67 0.23 Penasquito
(10) 122.60 0.54 (Sulfide) 555.26 0.54 777.80 0.49 Don Mario (11)
1.86 1.25 (UMZ) 4.98 1.30 0.35 1.19 El Toqui 1.74 0.35 - - Martha
0.00 32.03 0.04 29.44 0.03 46.96 Balcooma (12) 0.00 0.00 1.20 0.92
0.63 1.71 TABLE 2 (cont.) Royal Gold's Royalty Portfolio Base
Metals Additional Mineralized Material (1),(2) as of December 31,
2008 COPPER ADDITIONAL MINERALIZED PROPERTY ROYALTY OPERATOR
MATERIAL Robinson (8) 3.0% NSR Quadra Measured Indicated Inferred
Troy 2.0% GSR Revett Measured Indicated Inferred Don Mario (11)
3.0% NSR Orvana Minerals Measured (UMZ) Indicated Inferred El Toqui
1.0 - 3.0% NSR Breakwater Measured and Indicated Inferred Balcooma
(12) 1.5% NSR Kagara Measured Indicated Inferred COPPER TONS OF
AVERAGE MATERIAL GRADE PROPERTY (millions) (% Cu) Robinson (8)
572.95 0.43 146.71 0.30 88.88 0.28 Troy 38.26 0.71 10.93 0.41 - -
Don Mario (11) 1.86 1.26 (UMZ) 4.98 1.49 0.35 1.63 El Toqui 1.74
0.10 - - Balcooma (12) 0.00 0.00 1.20 1.53 0.63 0.90 ZINC
ADDITIONAL MINERALIZED PROPERTY ROYALTY OPERATOR MATERIAL
Penasquito (10) 2.0% NSR Goldcorp Measured (Sulfide) Indicated
(DEV) Inferred El Toqui 1.0 - 3.0% NSR Breakwater Measured and
Indicated Inferred Balcooma (12) 1.5% NSR Kagara Measured Indicated
Inferred ZINC TONS OF AVERAGE MATERIAL GRADE PROPERTY (millions) (%
Zn) Penasquito (10) 122.60 0.55 (Sulfide) 555.26 0.55 (DEV) 777.80
0.56 El Toqui 1.74 8.10 - - Balcooma (12) 0.00 0.00 1.20 4.96 0.63
6.42 TABLE 2 (cont.) Royal Gold's Royalty Portfolio Base Metals and
Other Additional Mineralized Material (1) as of December 31, 2008
LEAD ADDITIONAL MINERALIZED PROPERTY ROYALTY OPERATOR MATERIAL
Penasquito (10) 2.0% NSR Goldcorp Measured (Sulfide) Indicated
Inferred El Toqui 1.0 - 3.0% NSR Breakwater Measured and Indicated
Inferred Balcooma (12) 1.5% NSR Kagara Measured Indicated Inferred
LEAD TONS OF AVERAGE MATERIAL GRADE PROPERTY (millions) (% Pb)
Penasquito (10) 122.60 0.19 (Sulfide) 555.26 0.19 777.80 0.18 El
Toqui 1.74 0.44 - - Balcooma (12) 0.00 0.00 1.20 2.41 0.63 2.32
POTASH ADDITIONAL TONS OF AVERAGE MINERALIZED MATERIAL GRADE
PROPERTY ROYALTY OPERATOR MATERIAL (millions)(% K20) Allan $0.36 -
$1.44/ ton Potash Measured 1,270.95 25.90 and $0.25/ton Corporation
of Indicated 0.00 0.00 Saskatchewan Inferred 4,293.46 25.90
FOOTNOTES TO TABLE 2 INFORMATION PROVIDED IN TABLE 2 SHOULD ALSO BE
READ IN CONJUNCTION WITH FOOTNOTE INFORMATION PROVIDED IN TABLE 1
AS RELATED TO THE VARIOUS PROPERTIES (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) Some of the royalty operators are Canadian and
Australian issuers. Canadian and Australian issuers use the terms
"mineral resources" and its subcategories "measured," "indicated"
and "inferred" mineral resources. For Canadian issuers, the
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. For Australian issuers, the
definitions of "mineral resource," "measured mineral resource,"
"indicated mineral resource" and "inferred mineral resource"
conform with the JORC Code. While such terms are recognized and
required by Canadian and Australian regulations, the U.S.
Securities and Exchange Commission does not recognize them. In each
case, the mineralized material reported hereunder are estimates
previously disclosed by the relevant operator, without reference to
the underlying data used to calculate the estimates. Accordingly,
Royal Gold is not able to reconcile the estimates prepared in
reliance on National Instrument 43-101 or JORC Code with terms
recognized by the U.S. Securities and Exchange Commission.
Investors are cautioned not to assume that any part or all of the
mineral deposits in these categories will ever be converted into
reserves. (3) The additional mineralized material reported are
either estimates received by the various operators or are based on
royalty documentation material provided to Royal Gold or which is
derived from recent publicly-available information from the
operators of the various properties or various recent National
Instrument 43-101 or JORC Code reports filed by operators.
Accordingly, Royal Gold is not able to reconcile the resource
estimates prepared in reliance on National Instrument 43-101 or
JORC Code with definitions of the U.S. Securities and Exchange
Commission. (4) See royalty definitions on page 28. (5) NVR1 and
GSR3 additional mineralized material are subsets of the additional
mineralized material covered by GSR1 and GSR2 reserves. (6) The
operator reported additional mineralization as non-reserve material
and did not provide a breakdown. (7) The 2.0% NSR royalty interest
covers the majority of six sections of land, containing a number of
open pits, but does not cover the current mining in the
Basalt/Antler area. (8) Additional mineralized material estimates
include reserves at the request of the operator. (9) Dolores
additional mineralized material numbers have not been updated since
material was used for late 2008 commissioning activities. (10)
Operator has reported estimates by material types. The sulfide
material will be processed by milling. The oxide material will be
processed by heap leaching. (11) The Don Mario additional
mineralized material is contained in the upper mineralized zone
("UMZ"). The UMZ is currently the subject of a feasibility study
which is not yet public. (12) A portion of the reported additional
mineralized material may not be subject to Royal Gold's royalty
interests. NOTE: Additional mineralized material was not reported
by the operators for the following properties: Canadian Malartic,
Gold Hill, Mt. Goode, Pine Cove and Twin Creeks. TABLE 3 Royal
Gold's Royalty Portfolio Calendar Year 2009 Production Estimates
(1) ROYALTY OPERATOR METAL PRODUCTION (2) UNITED STATES Bald
Mountain Barrick Gold 2,000 oz Cortez-Pipeline GSR1 Barrick Gold
345,296 oz Cortez-Pipeline GSR2 Barrick Gold 614 oz Cortez-Pipeline
GSR3 Barrick Gold 345,910 oz Cortez-Pipeline NVR1 Barrick Gold
72,863 oz Goldstrike (SJ Claims) Barrick Gold 440,879 oz Leeville
Mining Complex Newmont Gold 426,212 oz Relief Canyon (3) Firstgold
Gold Not available Robinson (4) Quadra Gold 100,000 oz Robinson (4)
Quadra Copper 140 million lbs Troy (5) Revett Silver 1.7 million oz
Troy (5) Revett Copper 14.2 million lbs Twin Creeks Newmont Gold
51,861 oz Wharf Goldcorp Gold 57,500 oz CANADA Allan (3) Potash
Corporation Potash Not available of Saskatchewan Williams Barrick
Gold 166,019 oz MEXICO Dolores Minefinders Gold 100,000 oz Dolores
Minefinders Silver 2,000,000 oz El Chanate Capital Gold Gold 55,000
oz Mulatos Alamos Gold 145,000 oz TABLE 3 (cont.) Royal Gold's
Royalty Portfolio Calendar Year 2009 Production Estimates (1)
ROYALTY OPERATOR METAL PRODUCTION (2) MEXICO (cont.) Penasquito
Goldcorp Gold 70,000 oz Penasquito Goldcorp Silver 2.3 million oz
CENTRAL AND SOUTH AMERICA El Limon B2Gold Gold 43,000 oz Don Mario
(3) Orvana Minerals Gold Not available El Toqui Breakwater Gold
36,000 oz El Toqui Breakwater Silver 7,000 oz El Toqui Breakwater
Zinc 15 million lbs Martha (4) Coeur d'Alene Gold 10,000 oz Martha
(4) Coeur d'Alene Silver 3 million oz AUSTRALIA Balcooma (3,4)
Kagara Copper Not available Balcooma (3,4) Kagara Zinc Not
available Reedy's Burnakura ATW Gold Gold 35,000 oz Mt. Goode
(Cosmos) (6) Xstrata Nickel 35.3 million lbs WEST AFRICA Siguiri
AngloGold Ashanti Gold 300,000 oz Taparko TB-GSR1 and High River
Gold 63,000 oz (7) TB-GSR2 (3) ROYALTY DEFINITIONS INFORMATION
PROVIDED IN TABLE 3 SHOULD ALSO BE READ IN CONJUNCTION WITH
FOOTNOTE INFORMATION PROVIDED IN TABLE 1 AS RELATED TO THE VARIOUS
PROPERTIES (1) The estimates and production reports are prepared by
the operators of the mining properties. Royal Gold does not
participate in the preparation or verification of the operator's
estimates or production reports and has not independently assessed
or verified the accuracy of such information. Please refer to our
cautionary statement regarding forward-looking statements and to
the risk factors identified in our Annual Report on Form 10-K and
our other filings with the Securities and Exchange Commission for
information regarding factors that could affect actual results. (2)
Production estimates were provided by the various operators and are
in ounces for gold and silver; pounds for copper, zinc, and nickel;
and tons for potash. (3) The operators are in the process of
updating or have not provided calendar 2009 production guidance.
(4) Recovered metal is contained in concentrate and is subject to
third party treatment charges and recovery losses. (5) Recovered
metal is contained in concentrate and is subject to third party
recovery losses. (6) Not all of the production may be attributable
to Royal Gold's royalty interest. (7) The operator provided a
calendar 2009 production range between 63,000 to 76,000 ounces.
ROYALTY DEFINITIONS The Company's royalty portfolio contains
several different types of royalties which are defined as follows:
Royalty - the right to receive a percentage or other denomination
of mineral production from a resource extraction operation. Gross
Smelter Return ("GSR") Royalty - a defined percentage of the gross
revenue from a resource extraction operation, less, if applicable,
certain contract-defined costs paid by or charged to the operator.
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. Net Value Royalty ("NVR") - a defined
percentage of the gross revenue from a resource extraction
operation, less certain contract-defined transportation costs,
milling costs and taxes. Net Profits Interest Royalty ("NPI") - a
defined percentage of the gross revenue from a resource extraction
operation, after recovery of certain contract-defined
pre-production costs, and after deduction of certain
contract-defined mining, milling, processing, transportation,
administrative, marketing and other costs. Gross Proceeds Royalty
("GPR") - a royalty in which payments are made on contained ounces
rather than recovered ounces. DATASOURCE: Royal Gold, Inc. CONTACT:
Karen Gross, Vice President and Corporate Secretary of Royal Gold,
Inc., +1-303-575-6504 Web Site: http://www.royalgold.com/
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