Royal Gold Announces Attributable Reserves

DENVER–(BUSINESS WIRE)–Royal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries,
“Royal Gold” or the “Company,” “we” or “our”) announces updated
estimates for ore reserves attributable1 to the Company’s
stream, royalty and similar interests as of December 31, 2018. Reserve
figures are provided by the operators of properties on which the Company
holds these interests or are obtained by Royal Gold through publicly
available information.

Gold reserves of 3.8 million attributable ounces were 8.9% lower than
the prior calendar year primarily due to mining depletion at Mount
Milligan, Carmen de Andacollo and Pueblo Viejo. Silver reserves of 50
million attributable ounces were 22.2% higher due to the acquisition of
the Khoemacau stream interest during the current fiscal year. On an
attributable gold equivalent basis2, gold makes up
approximately 66% of reserves while silver contributes approximately 10%.

A summary of attributable reserves for all metals is presented in the
table below.

Metal       Attributable Reserves    
      Units       Dec. 31, 2017       Dec. 31, 2018       Change
Gold       M oz       4.2       3.8       -8.9%
Silver       M oz       41       50       22.2%
Copper       M lb       460       440       -4.3%
Lead       M lb       72       73       1.2%
Zinc       M lb       182       181       -0.5%
Nickel       M lb       41       39       -5.1%
Cobalt       M lb       2.5       2.3       -8.0%
Molybdenum       M lb       4.3       4.3       0.0%

On a gold equivalent basis, attributable reserves3 to Royal
Gold were 5.8 million ounces compared to 6.4 million ounces at calendar
year-end 2017. The decrease was due to generally lower Metal Prices for
the non-gold metals included in the calculation of gold equivalent
ounces, as shown in the table below, and mining depletion experienced in
the year. The impact of lower prices on gold equivalent reserves was
nearly equal to the effect of mining depletion.

Metal       Metal Prices Used for GEO Calculation    
      $ / Unit       Dec. 31, 2017       Dec. 31, 2018       Change
Gold       $/oz       1,291       1,279       -0.9%
Silver       $/oz       16.87       15.47       -8.3%
Copper       $/lb       3.25       2.71       -16.6%
Lead       $/lb       1.13       0.91       -19.5%
Zinc       $/lb       1.50       1.14       -24.0%
Nickel       $/lb       5.56       4.81       -13.5%
Cobalt       $/lb       34.25       25.17       -26.5%
Molybdenum       $/lb       7.26       11.79       62.4%

Reserves and mineralized material4 subject to the Company’s
interests on each property where reserves have been reported by the
operators can be found on our website Metal
Stream/Royalty Portfolio
. For further information about our stream,
royalty and similar interests, please see our Annual Report on Form
10-K, and our other public reports.

Royal Gold is a precious metals stream and royalty company engaged in
the acquisition and management of precious metal streams, royalties, and
similar production-based interests. As of March 31, 2019, the Company
owns interests on 191 properties on five continents, including interests
on 43 producing mines and 17 development stage projects. Royal Gold is
publicly traded on the Nasdaq Global Select Market under the symbol
“RGLD.” The Company’s website is located at


1   Attributable means 1) in the case of our royalty interests, the
operators’ estimate of reserves subject to our royalty multiplied by
our royalty rate, and 2) in the case of our stream interests, the
operators’ estimate of reserves subject to our stream multiplied by
a) our stream rate and b) the result of i) the metal price at
calendar year end (“Metal Price”) less our payment per unit
delivered, divided by ii) the Metal Price.
2 Gold equivalent basis is calculated as total attributable gold
ounces plus non-gold metals converted to gold equivalent ounces at
the corresponding Metal Price.
3 Attributable reserves do not consider royalty interests from
non-metals such as coal or potash.
4 The U.S. Securities and Exchange Commission does not recognize this
term. Mineralized material is that part of a mineral system that has
potential economic significance but cannot be included in 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. Typically, mineralization is presented as tons and grade,
but to give the reader an overall impression of the magnitude of
these mineral deposits we present an aggregate number of gold
equivalent ounces. Investors are cautioned not to assume that any
part or all of these gold equivalent ounces will ever be converted
into reserves or be recoverable by the operators of our properties.

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 estimates of reserves
and mineralized material provided by operators of our stream and royalty
properties or obtained by Royal Gold through publicly available
information, calculations of reserves and mineralized material
attributable to the Company’s stream, royalty and similar interests, and
calculations of attributable reserves on a gold equivalent basis.
Reserve estimates and calculations of reserves and mineralized material
attributable to Royal Gold’s royalty, stream and other interests are
subject to certain assumptions and do not reflect actual ounces that
will be produced. The estimation of mineralized material involves
greater uncertainty as to their existence and the legal and economic
feasibility of extraction than the estimation of reserves. Conversion of
mineralized material to mineral reserves generally requires further
economic study, such as a preliminary feasibility study. Investors are
cautioned not to assume that all or any part of a mineral resource
exists, or is economically or legally mineable, or will ever be
converted into mineral reserves. Factors that could cause actual results
to differ materially include, among others, the price environment for
gold and other metals on which our stream and royalty interests are
determined; performance of and production at our stream and royalty
properties, and variation of actual production from the production
estimates and forecasts made by the operators of those properties;
inability of operators to finance project development and construction
and bring projects into production as expected or in accordance with
feasibility studies, especially development stage mining properties,
mine and mill expansion projects and other development and construction
projects; completion of feasibility studies; changes in operators’
estimates of reserves and mineralized material; revisions or
inaccuracies in technical reports, reserves, mineralized material,
costs, mine life and mine life parameters and economic and production
estimates; changes in project parameters as plans of the operators are
refined; the results of current or planned exploration activities; the
risks inherent in the construction and operation of mining properties;
operators’ delays in securing or inability to secure necessary
governmental permits; unexpected operating costs, decisions and
activities of the operators of the Company’s stream and royalty
properties; changes in operators’ mining and processing techniques or
stream or royalty calculation methodologies; resolution of regulatory
and legal proceedings; unanticipated grade, geological, seismic,
metallurgical, environmental, processing or other problems at the
properties; operators’ inability to access sufficient raw materials,
water or power; errors or disputes in calculating or making stream
deliveries and royalty payments under stream or royalty agreements;
contests to the Company’s stream and royalty interests and title and
other defects to the Company’s stream and royalty properties; economic
and market conditions; the liquidity and future financial needs of the
Company; decisions and activities of the Company’s management affecting
margins, incurrence of debt, issuance of additional common stock, use of
capital and changes in strategy; the impact of future acquisitions and
stream and royalty financing transactions; risks associated with
conducting business in foreign countries, including application of
foreign laws to contract and other disputes, environmental laws,
enforcement and uncertain political and economic developments; and
changes in laws governing the Company and its stream and royalty
properties or the operators of such properties; and other subsequent
events; as well as other factors described in more detail in the
Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q,
and other filings with the Securities and Exchange Commission. Most of
these factors are beyond the Company’s ability to predict or control.
Statements made herein are as of the date hereof or as of the date
indicated and should not be relied upon as of any subsequent date. The
Company’s past performance is not necessarily indicative of its future
performance. The Company disclaims any obligation to update any
forward-looking statements. Readers are cautioned not to put undue
reliance on forward-looking statements.

Third-party information: Certain information in this presentation
has been provided to the Company by the operators of properties subject
to our stream and royalty interests, or is publicly available
information filed by these operators with applicable securities
regulatory bodies, including the Securities and Exchange Commission. The
Company has not verified, and is not in a position to verify, and
expressly disclaims any responsibility for the accuracy, completeness or
fairness of such third-party information and refers readers to the
public reports filed by the operators for information regarding those


Alistair Baker
Director, Business Development
(720) 554-6995

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