International Royalty Corporation

International Royalty Corporation

March 23, 2005 13:09 ET

International Royalty Corporation Responds to Western Canadian Coal Corp.


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: INTERNATIONAL ROYALTY CORPORATION

TSX SYMBOL: IRC

MARCH 23, 2005 - 13:09 ET

International Royalty Corporation Responds to Western
Canadian Coal Corp.

DENVER, COLORADO--(CCNMatthews - March 23, 2005) - International Royalty
Corporation (TSX:IRC) (the "Company") today responded to an announcement
made March 21, 2005 by Western Canadian Coal Corp. ("Western") relating
to a royalty-sharing agreement entered into by Western on March 31, 2000
with certain individuals, including David Fawcett, with respect to the
Mt. Speiker, Perry Creek, Hermann and West Brazion coal properties. (the
"Royalty Sharing Agreement").

The Company recently closed a $150 million initial public offering in
connection with its acquisition of an effective 2.7% Net Smelter Return
royalty on the Voisey's Bay nickel deposit in Labrador. As a part of
that offering, the Company negotiated and entered into definitive
agreements to purchase a number of other royalty portfolios, including a
definitive agreement, dated February 22, 2005, with David Fawcett to
purchase 20.3% of a 1.0% FOB royalty granted by Western pursuant to the
Royalty Sharing Agreement for a total consideration of $312,500 cash and
218,023 common shares of the Company valued at the IPO price. As of
February 22, 2005, David Fawcett also executed assignment agreements
with the Company with respect to the royalty interests being acquired by
the Company. The definitive agreement and related escrow agreement
called for the entire amount of cash and share consideration to be held
in escrow pending the receipt by Fawcett of Western's execution of the
assignment agreements.

Douglas B. Silver, Chairman and CEO of the Company, said "the Company
has reviewed the Petition and supporting Affidavits filed by Western in
the Supreme Court of British Columbia and believes that the position
taken by Western is without merit. Although these coal royalties form
only a small portion of our current portfolio, the Company will take
steps to be joined in the proceeding and will vigorously pursue all
legal avenues available to protect its interests."

About International Royalty Corporation

The Company was formed for the purpose of acquiring and creating natural
resource royalties with a specific emphasis on mineral royalties. The
Company holds interests in dozens of royalties, including an effective
2.7% Net Smelter Return interest in the Voisey's Bay
nickel-copper-cobalt project located in Labrador, Canada. The Company's
portfolio includes royalties on properties ranging from the exploration
through production stages across the globe.

The Company currently has 56,830,469 common shares outstanding
(61,621,037 common shares are outstanding on a fully diluted basis).

Some of the statements contained in this release are forward-looking
statements, such as estimates and statements that describe the Company's
future plans, intentions, objectives or goals, including words to the
effect that the Company or management expects a stated condition or
result to occur. Since forward-looking statements are not statements of
historical fact and address future events, conditions and expectations,
forward-looking statements by their nature involve inherent risks and
uncertainties. Actual results in each case could differ materially from
those currently anticipated in such statements. The Company does not
expect to update forward-looking statements continually as conditions
change and you are referred to the full discussion of the Company's
business contained in the Company's reports filed with the securities
regulatory authorities.

On behalf of the Board of

INTERNATIONAL ROYALTY CORPORATION

Douglas B. Silver, Chairman, CEO and Director

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    International Royalty Corporation
    Douglas B. Silver
    Chairman and CEO
    (303) 799-9020
    (303) 799-9017 (FAX)
    info@internationalroyalty.com