Producing Royalties

Royalty Definitions

Goldstrike — SJ Claims
Eureka County, Nevada

Operator: Barrick Gold

Royalty: 0.9% NSR

Reserves (12/31/06): 8.0M oz. Au
(at a gold price of $475 per oz.)

See Royalty Portfolio Table for full breakdown of reserves.

Estimated royalty production CY2007: 799,000 oz. Au

Royal Gold owns a 0.9% net smelter return royalty covering a portion of the Betze-Post mine, known as the SJ Claims. The Betze-Post mine, which is a part of the larger Goldstrike operation, is an open pit gold mine operated by Barrick Goldstrike Mines, a subsidiary of Barrick Gold Corporation. The SJ Claims and the Betze-Post open pit lie approximately 24 miles northwest of Carlin, Nevada.

Goldstrike Mine (SJ Claims) — Eureka County, Nevada

Leeville Mining Complex
Eureka County, Nevada

Operator: Newmont Mining

Royalty: 1.8% NSR

Reserves (12/31/06): 2.3M oz. Au
(at a gold price of $500 per oz.)

See Royalty Portfolio Table for full breakdown of reserves and additional mineralized material.

Estimated royalty production CY2007: 337,000 oz. Au

Royal Gold owns a 1.8% net smelter return royalty, which covers the majority of the Leeville Mining Complex, consisting of the Leeville North and Leeville South underground gold mines. Leeville is owned by Newmont Mining Corporation. Royal Gold derives royalty revenue from both the Leeville South and the Leeville North mines.

Leeville Mining Complex — Eureka County, Nevada

Pipeline Mining Complex
Lander County, Nevada

Operator: Barrick Gold

Royalties:

• GSR1: 0.40 — 5.0% (sliding-scale)
• GSR2: 0.72 — 9.0% (sliding-scale)
• GSR3: 0.71%
• NVR1: 0.39%

Reserves (12/31/06):
(at a gold price of $475 per oz.)

• GSR1: 2.1M oz. Au
• GSR2: 0.23M oz. Au
• GSR3: 2.3M oz. Au
• NVR1: 1.5M oz. Au

See Royalty Portfolio Table for full breakdown of reserves and additional mineralized material.

Estimated royalty production CY2007: 491,000 oz. Au

Royal Gold owns four royalties on the Pipeline Mining Complex including two sliding-scale gross smelter return royalties (GSR1 and GSR2), a 0.71% fixed gross smelter return royalty (GSR3), and a 0.39% net value royalty (NVR1). The Pipeline Mining Complex is a large open pit, mill and heap leach operation located 60 miles southwest of Elko, Nevada.

The Pipeline Mining Complex includes both the Pipeline and the South Pipeline deposits and is operated by the Cortez Joint Venture, a joint venture between Barrick Gold Corporation (60%) and Kennecott Explorations (Australia) Ltd. (40%), a subsidiary of Rio Tinto.

Pipeline Mining Complex — Lander County, Nevada

Bald Mountain
White Pine County, Nevada

Operator: Barrick Gold

Royalty: 1.75 — 3.5% NSR (sliding-scale)

Reserves (12/31/06): 2.0M oz. Au
(at a gold price of $475 per oz.)

See Royalty Portfolio Table for full breakdown of reserves and additional mineralized material.

Estimated royalty production CY2007: 91,000 oz. Au

Royal Gold holds a 1.75% to 3.5% net smelter return sliding-scale royalty on a portion of the Bald Mountain mine, an open pit, heap leach gold mine. The Bald Mountain mine is operated by Barrick Gold U.S., a subsidiary of Barrick Gold Corporation, and is located in northeastern Nevada, midway between Elko and Ely.

Bald Mountain Mine — White Pine County, Nevada

Mulatos Mine
Sonora, Mexico

Operator: Alamos Gold

Royalty: 0.30 — 1.5% NSR (sliding-scale)

Reserves (12/31/06): 2.1M oz. Au
(at a gold price of $500 per oz)

See Royalty Portfolio Table for full breakdown of reserves and additional mineralized material.

Estimated royalty production CY2007*: In August 2007, the operator revised its forcase downward from its CY2007 production estimate of 150,000 ounces, but did not specify a revised production figure. (*royalty capped at 2.0M oz. production.)

Royal Gold holds a sliding-scale net smelter return royalty at the Mulatos Mine, an open pit, heap leach gold mine operated by Minas de Oro Nacional, S.A. de C.V., a subsidiary of Alamos Gold, Inc. The sliding-scale ranges from 0.30%, at an average quarterly gold price of $299.99 or below, up to 1.5% when the price of gold averages $400 per ounce or higher. The royalty is capped at two million ounces of production. The Mulatos Mine is located in the Sierra Madre Occidental mountain range in the east central portion of the State of Sonora, Mexico.

Mulatos Mine — Sonora, Mexico

Robinson Mine
White Pine County, Nevada

Operator: Quadra Mining

Royalty: 3.0% NSR

Reserves (12/31/06)*: 1.0M oz. Au; 1.9B lbs. Cu
(at a gold price of $500 per oz. and a copper price of $1.15 per lb.)

See Royalty Portfolio Table for full breakdown of reserves.

Estimated royalty production CY2007: 90,000 oz. Au; 136.3M lbs. Cu

Royal Gold holds a 3.0% net smelter return royalty on the Robinson mine, an open pit copper mine with significant gold credits. The mine is operated by Robinson Nevada Mine Company, a subsidiary of Quadra Mining Ltd., and is located in eastern Nevada approximately 7 miles west of the town of Ely.

Robinson Mine — White Pine County, Nevada

Troy Mine
Lincoln County, Montana

Operator: Revett Minerals

Royalties:

• 7.0% GSR — initial
  
• 6.1% GSR — interim
  
• 2.0% GSR — perpetual

Reserves (12/31/06):
(at a silver price of $11 per oz. and a copper price of $2.00 per lb.)

• 7.0% GSR — 10.3M oz. Ag
• 6.1% GSR — 2.0M oz. Ag
• 2.0% GSR — 1.3M oz. Ag
• 7.0% GSR — 84.9M lbs. Cu
• 6.1% GSR — 17.0M lbs. Cu
• 2.0% GSR — 29.3M lbs. Cu

See Royalty Portfolio Table for full breakdown of reserves and additional mineralized material.

Estimated royalty production CY2007: 2.0M oz. Ag; 16.0M lbs. Cu

Royal Gold holds a 7.0% gross smelter return (“GSR”) royalty that covers the Troy underground mine operated by Revett Silver Company, a subsidiary of Revett Minerals Inc. This 7.0% GSR royalty 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.

Royal Gold also holds a perpetual GSR royalty that begins at 6.1% on any production in excess of 11.0 million ounces of silver and 94.1 million pounds of copper. This 6.1% GSR 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. The Troy mine is located in Lincoln County, Montana approximately 15 miles south of the town of Troy.

Troy Mine — Lincoln County, Montana

Martha Mine
Santa Cruz Province, Argentina

Operator: Coeur d’Alene

Royalty: 2.0% NSR

Reserves (06/30/07): 7.6M oz. Ag
(at a silver price of $10.00 per oz.)

See Royalty Portfolio Table for full breakdown of reserves.

Estimated royalty production CY2007: 2.7M oz. Ag

Royal Gold holds a 2.0% net smelter return royalty on the Martha mine, owned by Coeur Argentina S.R.L., a subsidiary of Coeur d’Alene Mines Corporation. The Martha mine is a high grade underground silver mine located in Argentina.

Martha Mine — Santa Cruz Province, Argentina

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