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ROYAL GOLD ANNOUNCES GOLD RESOURCE ESTIMATE INCREASES TO 3.32 MILLION OUNCES

 DENVER, Aug. 5 /PRNewswire/ --
 -- Operator to continue aggressive program of in-fill and expansion
 drilling.
 -- Drill results will be used for reserve estimates and engineering
 studies.
 Royal Gold Inc. (NASDAQ: RGLD) today announced the results of continued exploration drilling at the South Pipeline Project by Placer Dome U.S. Inc. ("PDUS"), and disclosed plans for the continuation of in-fill and exploration drilling.
 The South Pipeline Project involves an approximately 4,000 acre mining claim position in the Cortez district, located in the Crescent Valley, Lander County, Nev. It is approximately one-half mile south of the Pipeline discovery announced earlier by PDUS. Royal Gold holds a 20 percent net profits interest in the South Pipeline Project.
 Stanley Dempsey, chairman of Royal Gold, stated that, "based upon Royal Gold estimates, ongoing exploration by PDUS at the South Pipeline Project has determined a drill indicated resource of 31.4 million tons of material, with an average grade of 0.106 ounces of gold per ton, assuming a cut-off grade of 0.05 ounces per ton. On the basis of Royal Gold's latest resource estimate, total ounces of gold contained in the South Pipeline deposit are approximately 3.32 million, up more than 1.0 million ounces from the most recent resource estimate that PDUS announced on May 4, 1993."
 Dempsey also said, "PDUS plans to continue an aggressive program of in-fill and expansion drilling at South Pipeline. The number of drill rigs working on South Pipeline ground may vary from time-to-time, but plans call for as many as eight drill rigs."
 Dempsey further explained that, "the in-fill drilling will continue to test both shallow and deep mineralized zones in the South Pipeline deposit, and will provide information required for reserve estimates and for the design of mining and treatment systems. The expansion drilling will seek extensions of existing deposits and additional deposits on South Pipeline ground."
 Dempsey noted that, "the ongoing drilling program and extensive engineering studies must be completed before the economics of mining material from the South Pipeline deposit can be determined."
 Royal Gold is a Denver-based, publicly held corporation. The company is engaged in the gold and other precious metals business, primarily through joint ownership arrangements, and is also engaged in the acquisition, exploration, development, and sale of gold properties.
 In addition to a 20 percent net profits royalty interest in the South Pipeline Project, Royal Gold has a gold project in Nevada that is being explored by Newmont, other exploration projects in Nevada, one project in Arizona and one in California.
 -0- 8/5/93
 /CONTACT: Stanley Dempsey of Royal Gold, 303-573-1660/
 (RGLD)


CO: Royal Gold Inc. ST: Colorado, Nevada IN: MNG SU:

MC -- DV003 -- 9812 08/05/93 10:57 EDT
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Publication:PR Newswire
Date:Aug 5, 1993
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