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DISPUTES RESOLVED AND SOUTH PIPELINE EXPLORATION PROJECT ESTABLISHED

DISPUTES RESOLVED AND SOUTH PIPELINE EXPLORATION PROJECT ESTABLISHED
 VANCOUVER, British Columbia and DENVER, Sept. 21 /PRNewswire/ -- Placer Dome Inc. (NYSE: PDG) and Royal Gold Inc. (NASDAQ: RGLD), jointly announce today that litigation in federal court in Denver between their wholly owned subsidiaries, Placer Dome U.S. Inc. ("PDUS") and Royal Crescent Valley Inc. has been resolved. Under the agreement, the case is to be transferred to Nevada, where all but part of one claim by Royal Crescent Valley and one counterclaim by PDUS are to be withdrawn on their merits and dismissed with prejudice. The remaining claim and counterclaim are be thereafter compromised and also dismissed.
 The agreement also calls for the creation of the "South Pipeline Project," located in Crescent Valley, Lander County, Nev., approximately one-half mile south of the pipeline discovery announced earlier this year by PDUS and its co-venturer in the Cortez Gold Mines joint venture ("Cortez"). PDUS is the operator and 60 percent owner of Cortez.
 The South Pipeline has shown promising results in exploration drilling conducted by PDUS during the past year. Results warrant intensified exploration efforts, and PDUS has identified several additional exploration targets.
 Under the South Pipeline agreement, PDUS will remain the manager and operator on behalf of Cortez, with a minimum work requirement of $1.4 million (U.S.) between the last quarter of this year and the end of 1994. Royal Gold will receive a 20 percent net profits royalty or, at its election beginning with production and annually thereafter, a net smelter return royalty according to a schedule tied to indexed gold prices. The net smelter return royalty ranges from 2.5 percent for an indexed price of $350 per ounce to 5.5 percent for an indexed price in excess of $500 per ounce. Royal Gold will receive advance royalty payments of $150,000 (U.S.) per year.
 Also as part of the agreement, Royal Gold granted to Cortez the right to purchase and Cortez has purchased 1,000 units of Royal Gold at $800 per unit. The 1,000 units entitle Cortez to (1) 500,000 shares of Royal Gold common stock, (2) the right to purchase, before March 31, 1996, 300,000 additional shares of Royal Gold common stock at $2 per share, and (3) the right to purchase, before March 31, 1996, an additional 300,000 shares of Royal Gold common stock at $3 per share, if either Cortez or Royal elects to put the South Pipeline Project into production.
 If Cortez does not elect to put the project into production by early 1996, then Royal may elect to put the property into production by granting a production royalty to Cortez identical to the one described above. Royal would then be entitled to use, under a normal tolling arrangement and as available, the Cortez milling facilities in the vicinity, including any to be built for the Pipeline discovery.
 Cole McFarland, president of PDUS, stated that PDUS is "pleased to continue the South Pipeline Project with Royal Gold as an ally. The agreement provides PDUS and Cortez with several different ways to benefit from any discovery in the South Pipeline area, and also to benefit from the future potential of Royal Gold."
 Stanley Dempsey, chairman of Royal Gold, stated that the agreement "eliminates unwanted and expensive litigation, provides Royal Gold with additional working capital, and assures us a significant role in the South Pipeline Project."
 The South Pipeline is still the subject of litigation between PDUS, Cortez, and ECM Inc., a Montana corporation, which is the lessor of the mining claims included in the South Pipeline Project. PDUS and Cortez sued ECM in federal district court in Reno, Nev. in July. ECM is now attempting to shift the parties' disputes to federal court in Denver. The agreement announced today has no effect on the litigation with ECM.
 PDUS intends to continue to vigorously prosecute and defend its interests and those of Cortez against all third parties claiming any rights or damages relating to exploration activities in Crescent Valley, including the pipeline discovery and the South Pipeline Project.
 -0- 9/21/92
 /CONTACT: Karen Gross of Royal Gold Investor Relations, 303-573-1660; or Earl Dunlop (investors), 604-661-3779; or Hugh Leggatt (media), 604-661-1554, both of Placer Dome/
 (RGLD PDG) CO: Royal Gold Inc.; Placer Dome Inc.; Placer Dome U.S. Inc.;
 Royal Crescent Valley Inc.; Cortez Gold Mines ST: British Columbia, Colorado IN: MNG SU: JVN


EH-AL -- DV004 -- 1607 09/21/92 11:13 EDT
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Date:Sep 21, 1992
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