Subject to conditions precedent, including the execution of requisite security documentation, advances under the Streaming Agreement will be available in three principal Tranches:

An Initial Tranche of US$7.5 million within 90 days from the date of signing
A Second Tranche of US$7.5 million on the 1st anniversary of the signing date
A Third Tranche of US$160 million towards the capital cost of the Project.
The receipt of the Initial Tranche is also subject to the Company raising not less than C$5 million in equity, for which it has already received a conditional proposal, the terms of which are currently being reviewed, and receipt of the Second and Third Tranches is subject to specific conditions precedent related to ongoing development of the Project.

The first two Tranches of the Streaming Agreement are to be used to further the development of the Project in respect of Project permitting and the completion of a definitive feasibility study ("DFS") and front end engineering and design ("FEED") planned for 2016. The Third Tranche is to be used, pro-rata with other sources of finance, to fund all capital expenditures at the Project.

Under the Streaming Agreement, the Euromax group will deliver physical gold in an amount equal to 25% of payable gold produced from the Project until 525,000 ounces have been delivered to Royal Gold, and 12.5% thereafter for life of mine. Royal Gold will purchase the gold delivered at a cash purchase price of 25% of the London PM gold fixing price as quoted by the London Bullion Market Association on the date of delivery for each ounce delivered and shall apply the balance as a reduction against the US$175 million advance payment. No interest shall be payable on the advance payments.

A summary of the terms of the Streaming Agreement is attached, as Appendix 1, and the Streaming Agreement itself together with a Material Change Report will be filed on SEDAR. Raymond James acted as financial advisor to Euromax in respect of the Streaming Agreement.

Commenting on this announcement, Varshan Gokool, CFO said:

"The commitment of US$175 million announced today goes far further than just addressing our Phase 1 financing needs and allows us to progress on track with the DFS and FEED program for delivery in 2016. Consistent with our financing strategy we have been able to leverage the asset value of Ilovitza thereby minimising dilution to shareholders. Importantly, the stream represents only 14% of our gold equivalent production and will satisfy 31% of our expected construction capital expenditure and further improve the Project IRR.

This stream financing also keeps intact and builds the foundations for the Phase 2 financing for which we intend to use project finance debt to maximise the gearing of the Project. The Streaming Agreement incorporates intercreditor principles and debt headroom for such project financing right from the start, to ensure the efficient execution of the Phase 2 financing."

Commenting on this announcement, Steve Sharpe, President & CEO said:

"We are absolutely delighted to be able to welcome Royal Gold as long-term partners at Ilovitza. We believe their commitment, which follows extensive technical, environmental and legal due diligence, is a strong endorsement of the Ilovitza Project."

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