International Royalty reiterates recommendation that shareholders reject
Franco-Nevada's unsolicited offer

    
    NYSE-A: ROYTSX: IRC
    
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<p><location>DENVER</location>, CO, <chron>Jan. 11</chron> /CNW Telbec/ - International Royalty Corporation (NYSE-A:ROY, TSX: IRC) ("IRC") today reiterates that its board of directors has unanimously recommended that IRC shareholders REJECT the unsolicited offer from Franco-Nevada Corporation ("Franco-Nevada") through 7293275 <location>Canada</location> Inc., a wholly-owned subsidiary, to acquire any and all IRC common shares for C$6.75 per share (the "Franco-Nevada Offer"). The board of directors' unanimous recommendation, together with the reasons for its recommendation, is contained in a directors' circular (the "Directors Circular") which was filed by IRC on <chron>December 29, 2009</chron> with Canadian and <location>United States</location> securities regulators and which has been mailed to IRC shareholders and optionholders.</p>
<p>The Directors Circular also contains a discussion of the terms of the arrangement agreement entered into between IRC and <person>Royal Gold</person>, Inc. as previously announced on <chron>December 18, 2009</chron> and as described in detail in the material change report of IRC dated <chron>December 24, 2009</chron> and filed on the System for Electronic Document Analysis and Retrieval at <a href="http://www.sedar.com">www.sedar.com</a> under IRC's profile (the "<person>Royal Gold</person> Transaction"). As indicated in the Directors Circular, IRC believes that the <person>Royal Gold</person> Transaction is superior to the Franco-Nevada Offer and more attractive to IRC shareholders.</p>
<p>In the event that an IRC shareholder has not yet received his or her copy of the Directors Circular by mail, he or she will find a copy of the Directors Circular on the IRC website at <a href="http://www.internationalroyalty.com">www.internationalroyalty.com</a>. IRC shareholders are encouraged to read the Directors Circular in its entirety.</p>
<p>IRC shareholders will have likely received by now a take-over bid circular from Franco-Nevada requesting IRC shareholders to tender their IRC shares to the Franco-Nevada Offer. IRC shareholders are encouraged to be careful not to confuse Franco-Nevada's take-over bid circular with IRC's Directors Circular. For the reasons outlined in the Directors Circular, IRC recommends that its shareholders REJECT the Franco-Nevada Offer and NOT TENDER their shares. This can be accomplished by doing nothing. IRC shareholders do not need to respond to Franco-Nevada's solicitation materials. If any IRC shareholders have already tendered their IRC shares to the Franco-Nevada Offer, IRC recommends that shareholders withdraw them. For assistance with withdrawing their IRC shares from the Franco-Nevada Offer, shareholders are encouraged to contact their broker or IRC's information agent, Georgeson, at one of the numbers listed below.</p>
<p>A special meeting of securityholders of IRC is scheduled to be held on <chron>Tuesday, February 16, 2010</chron> at which IRC shareholders and optionholders will be asked to approve the <person>Royal Gold</person> Transaction. Subject to receipt of an interim order from the Ontario Superior Court of Justice (Commercial List), which is expected to be obtained shortly, IRC intends to mail a detailed management proxy circular regarding the <person>Royal Gold</person> Transaction to IRC shareholders and optionholders in mid-January 2010. This interim order is required by Canadian law and is a standard part of the acquisition process. The management proxy circular will contain further details concerning the <person>Royal Gold</person> Transaction and the process required for IRC shareholders to vote their shares.</p>
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<p>For Investor Questions, Including How to Withdraw Shares from the Franco-Nevada Offer</p>
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<p>IRC shareholders who have questions or who may have already tendered their common shares to the Franco-Nevada Offer and wish to withdraw them, may do so by contacting their broker or IRC's information agent, Georgeson, at one of the following numbers:</p>
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    North American Toll-Free Number: 1-866-725-6575
    Banks, Brokers and Collect Calls: 1-212-806-6859
    
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<p>International Royalty Corporation</p>
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<p>IRC is a global mineral royalty company. IRC holds 85 royalties including an effective 2.7% NSR on the Voisey's Bay mine, a sliding scale NSR on the Chilean portion of the Pascua-Lama project, a 1.5% NSR on the Las Cruces project and a 1.5% NSR on approximately 3.0 million acres of gold lands in Western <location>Australia</location>. IRC is senior listed on the <location>Toronto</location> Stock Exchange (TSX:IRC) as well as the NYSE Amex (NYSE-A:ROY).</p>
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    On behalf of the Board of Directors,

    INTERNATIONAL ROYALTY CORPORATION

    Douglas B. Silver
    Chairman and CEO
    

For further information: Jack Perkins, Director of Investor Relations, [phone]; Douglas B. Silver, Chairman and CEO, [phone]; [e-mail]; www.internationalroyalty.com; Renmark Financial Communications Inc.: Barbara Komorowski, [e-mail], [phone], Fax: [phone]; www.renmarkfinancial.com