International Royalty acquires additional gold royalties

Thu Oct 9, 11:53 AM

AMEX:ROY

TSX:IRC

DENVER, CO, Oct. 9 /CNW Telbec/ - International Royalty Corporation (AMEX: ROY, TSX: IRC) (the "Company" or "IRC") is pleased to announce that it has expanded its precious metal royalty portfolio through the acquisition of three additional royalties on the Pinson gold project and trend in Nevada from two private individuals. The Pinson gold project is a joint venture between Barrick Gold Corporation ("Barrick") and Atna Resources Ltd. ("Atna"). IRC paid US$2.85 million in cash for a 16.842% share of the variable rate (0.5% to 5.0%) net smelter return ("NSR") Rayrock Royalty ("Rayrock") and a 40% share of the Cordilleran 3.0% and 5.0% NSR royalties ("Cordex"). With this purchase, IRC now owns 97.9% of the Rayrock Royalty and 100% of the Cordex Royalties, the two largest royalties covering the currently known Pinson resource.

    
    Pinson Resources Summary
    -------------------------------------------------------------------------
                                        Tonnes*   Grade (g/t)    Contained
                                                                        Au*
    -------------------------------------------------------------------------
    Measured Resources                 1,045,440         15.57       523,200
    Indicated Resources                1,227,875         13.68       540,600
    Measured and Indicated Resources   2,273,315         14.54     1,063,000
    Inferred Resources                 3,061,296         11.66
    -------------------------------------------------------------------------
    (Cut-off grade equals 6.9 grams/tonne Au)
    * Columns do not add up due to rounding
    Source: Pinson Technical Report Revised June 1, 2007

Under their joint venture agreement with Atna, Barrick can earn a 70% interest in the Pinson project by completing a feasibility study by April, 2009 at a cost of US$30 million. Barrick has agreed to submit a feasibility study to the joint venture at the end of the evaluation period in April.

Management believes that this latest acquisition complements the Atna precious metals royalty portfolio transaction announced last month. The transaction does not require additional funding.

More than half of the royalties in IRC's portfolio have a precious metals focus. During 2008 and 2009, management anticipates that IRC's royalty revenue base will expand through additional gold royalty revenues from the Gwalia Deeps project in Australia and the Belahouro gold project in Burkina Faso, as well as from revenues from the recently commissioned Avebury nickel mine in Tasmania and the producing Skyline coal mine in Utah.

International Royalty Corporation

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International Royalty Corporation (IRC) is a global mineral royalty company. IRC holds more than 85 royalties including an effective 2.7% NSR on the Voisey's Bay mine, a sliding-scale NSR on the Pascua gold project in Chile, a 1.5% NSR on the Las Cruces copper project in Spain and a 1.5% NSR on approximately 3.0 million acres of gold lands in Western Australia. IRC is senior listed on the Toronto Stock Exchange (TSX: IRC.TO) as well as the American Stock Exchange (AMEX: ROY ).

On behalf of the Board of Directors,

INTERNATIONAL ROYALTY CORPORATION

Douglas B. Silver

Chairman and CEO

Cautionary Statement Regarding Forward-Looking Statements

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Some of the statements contained in this release are forward-looking statements, such as statements that describe the acquisition of interests in the Rayrock Royalty and Cordex Royalty, estimated resources on the Pinson project, the timing and completion of the feasibility study by Barrick and expectations related to the Pinson project, management's assessment of the Atna royalty portfolio, and management's expectations of its royalty base expansion and revenue from the Avebury and Skyline royalties. Since forward-looking statements are not statements of historical fact and address future events, conditions and expectations, forward-looking statements by their nature involve unknown risks, uncertainties, assumptions and other factors well beyond IRC's ability to control or predict. Actual results and developments may differ materially from those contemplated by such forward-looking statements depending on, among other things, such key factors as the ability of the mine operators to finance and successfully place their projects into production, commodities prices and accuracy of assumptions. Such assumptions include, but are not limited to, the validity of statements made by the project operators in the public domain and the projected royalties on such projects. This press release uses the terms "measured resources", "indicated resources" and "inferred resources", which are calculated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining and Metallurgy Classification system. We advise investors that while those terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. The forward-looking statements included in this release represent IRC's views as of the date of this release. While IRC anticipates that subsequent events and developments may cause IRC's views to change, IRC specifically disclaims any obligation to update these forward-looking statements unless required by law. Readers should not place undue reliance on any forward-looking statements.

Contacts

Jack Perkins
Director of Investor Relations: (303) 991-9500

Douglas B. Silver
Chairman and CEO: (303) 799-9020
info@internationalroyalty.com

www.internationalroyalty.com

Renmark Financial Communications Inc.: Barbara Komorowski: bkomorowski@ renmarkfinancial.com

Jen Power: jpower@renmarkfinancial.com
(514) 939-3989
Fax: (514) 939-3717

www.renmarkfinancial.com