Royal Gold Increases Gold Stream Interest in the Mt. Milligan Project

Royal Gold, Inc. (NASDAQ: RGLD) today announced it has agreed to acquire, through its wholly-owned subsidiary RGLD Gold AG, an additional 15% of the payable gold produced from the Mt. Milligan copper-gold project, located in British Columbia, from a subsidiary of Thompson Creek Metals Company, Inc. (NYSE: TC) . Consideration for the new transaction is $270 million and cash payments equal to the lesser of $435 or the prevailing market price for each payable ounce of gold delivered to Royal Gold. This restructured Delivery Payment replaces and simplifies the payment structure in the original Mt. Milligan transaction announced in July 2010.

Combined with the Original Transaction, Royal Gold will be entitled to 40% of the payable gold produced from Mt. Milligan for total consideration of $581.5 million and the Delivery Payment. To date, Royal Gold has paid approximately $252.6 million to Thompson Creek and will pay $112 million following closing of the new transaction and the remaining $216.9 million in scheduled quarterly payments commencing on March 1, 2012. Royal Gold will use cash on hand to pay the $112 million and has borrowed $100 million under its credit facility.