Royal Gold Announces the Completion of the Andacollo Gold Transaction

Royal Gold Announces the Completion of the Andacollo Gold Transaction

DENVER, CO – Royal Gold, Inc. reported the closing of the Andacollo gold transaction with a subsidiary of Teck Resources Limited known as Compa–a Minera Teck Carmen de Andacollo (CdA). Teck owns 90% of CdA and the remaining 10% is held by Empresa Nacional de Mineria, a Chilean state-owned entity. Total consideration for the transaction was approximately $218 million in cash and 1.2 million shares of Royal Gold common stock. As a result of the closing of the transaction, CdA now owns approximately 3.0% of Royal Gold’s issued and outstanding common stock.

Royal Gold will receive 75% of the gold produced from the sulfide portion of the Andacollo copper and gold deposit, located in Chile, until 910,000 payable ounces of gold have been sold, after which Royal Gold will receive 50% of all future payable gold production from the property. Gold will be produced as a by-product of copper production, with a gold recovery rate estimated by the operator to be approximately 61%. Ore has been introduced to the mill and shipment of copper concentrate is expected to commence in April of this year. Full commercial production is expected to be reached in the first half of 2010.