Growth and Income Through Royalties Q4 2008 TSX:IRC AMEX:ROY All dollar amounts in U.S. dollars unless otherwise noted. North Americaʼs Fastest Growing Diversified Mineral Royalty Company Forward-Looking Statements Some of the statements contained in this presentation are forward-looking statements, such as statements that describe IRC's goals and expectations and IRCʼs estimated revenues from its royalties, production levels and mine life. Since forward-looking statements are not statements of historical fact and address future events, conditions and expectations, they inherently involve unknown risks, uncertainties, assumptions and other factors well beyond IRCʼs ability to control or predict. Actual results and developments may differ materially from those contemplated by such forward-looking statements. Material factors that could cause actual revenues to differ materially from any such forward looking statements include metal price fluctuations; interpretation of royalty contract terms; operatorsʼ production changes; mine developers abilities to develop, build and operate the mines; the effects of weather, operating hazards, adverse geological conditions, global warming, work slowdowns or stoppages, availability of labour, materials and equipment, changes in governmental laws, regulations, economic conditions or political instability; currency exchange rates; uncertainties involved in interpreting drilling results and other tests; possible variations in ore grade and recovery rates; risks of delays, accidents, equipment breakdowns; the possibility of unanticipated costs or expenses related to mining, processing, mine closures; and IRC's ability to acquire additional royalty interests. Forward-looking statements are based on the beliefs, estimates and opinions of management at the date the statements are made. IRC does not undertake to update forward-looking statements if managementʼs beliefs, estimates or opinions or other circumstances should change. 2 Important Notices Resource Estimates - All “reserve” and “resource” estimates included in this presentation were prepared in accordance with the Canadian Institute of Mining and Metallurgy classification system or the Joint Ore Reserve Committee as outlined in National Instrument (NI) 43-101 of the Canadian Securities Administrators and the Canadian Institute of Mining and Metallurgy Classification System. These standards differ significantly from the requirements of the U.S. Securities and Exchange Commission (SEC). In particular, “resources” are not the equivalent of “reserves” and the SEC does not normally permit the use of the term “resources” or of resource estimates in documents filed with the SEC. Accordingly, information included in the presentation may not be comparable to information disclosed by United States mining companies. IRC does not operate or explore but relies on others. Because it is not the operator, it must rely on decisions made by others, decisions on which it has little or no influence. It must also assume that public disclosure by its operators is accurate and true. Information contained herein is based on information made available by these operators. This presentation has been reviewed by a qualified person employed by SRK Consulting (U.S.) Inc, for the purposes of NI 43-101. See Company disclosure documents filed on SEDAR (www.SEDAR.com), including the Annual Information Form dated March 28, 2008, and the Companyʼs Annual Report on Form 40-F filed with the SEC (available at www.sec.gov <http://www.sec.gov> ). Trailing 12 monthsʼ (TTM) EBITDA, TTM adjusted EBITDA, TTM free cash flow per share, TTM EBITDA per share, EBITDA margins and EBITDA are non-GAAP financial measures. Such non-GAAP financial measures do not have any standardized meaning prescribed by Canadian GAAP and therefore may not be comparable to similar measures presented by other issuers. Management uses these measures internally. 3 Passive Foreign Investment Company PFIC NOTICE OF U. S. TAX INFORMATION FOR U. S. PERSONS This statement is provided for shareholders who are United States persons for purposes of the U.S. Internal Revenue Code. It is not relevant to other shareholders. NOTICE PURSUANT TO IRS CIRCULAR 230: ANYTHING CONTAINED IN THIS NOTICE CONCERNING ANY U.S. FEDERAL TAX ISSUE IS NOT INTENDED OR WRITTEN TO BE USED, AND IT CANNOT BE USED BY A U.S. HOLDER, FOR THE PURPOSE OF AVOIDING FEDERAL TAX PENALTIES UNDER THE INTERNAL REVENUE CODE. THIS NOTICE WAS WRITTEN TO SUPPORT THE PROMOTION OR MARKETING OF IRC SHARES. EACH SHAREHOLDER SHOULD SEEK U.S. FEDERAL TAX ADVICE, BASED ON SUCH U.S. SHAREHOLDER'S PARTICULAR CIRCUMSTANCES, FROM AN INDEPENDENT TAX ADVISOR. International Royalty Corporation ("IRC") believes that it is currently a Passive Foreign Investment Company ("PFIC") as defined in Section 1297 of the Internal Revenue Code. Certain U. S. income tax consequences flow from this designation and these tax consequences may be mitigated by electing to treat IRC as a Qualified Electing Fund ("QEF"). The PFIC Annual Information Statement for IRC provided herewith is given to allow shareholders who make the QEF election with respect to IRC stock, should they so desire. Shareholders are urged to consult their tax advisors for more information regarding QEF elections. For more information, please visit http://library.corporate-ir.net/library/18/188/188772/items/284231/ PFICWebsiteNotice2007.pdf 4 Company Overview TSX: IRC, AMEX: ROY ~85 diversified mineral royalties Trailing 12 month Net Revenue: $36.8 million1 Trailing 12 month EBITDA: $26.3 million Annual Dividend: US$0.04 per share Liquidity: Cash = $16 million2 and LOC = $40 million North Americaʼs fastest growing Diversified Mineral Royalty Company 1. Net of $8.6 million Labrador mineral royalty tax 2. As of 6/30/08; note that IRC acquired a royalty portfolio from Atna Resources Ltd. for $20 5 million as of September 4, 2008 Third Quarter Highlights Atna Royalty Portfolio acquisition Skyline Coal royalty acquisition First concentrate shipped from Avebury Mill commissioned at Gwalia Deeps Multiple new diamond discoveries Increased Reserves and Resources at Schaft Creek Measured and Indicated Resources: 1.393 billion tonnes with 0.25% Cu, 0.18g/t Au, 0.019% Mo, 1.55g/t Ag at a copper equivalent of 0.20% cutoff Reserves: 812.2 million tonnes of 0.301% Cu, 0.212g/t Au, 0.020% Mo, and 1.76g/t Ag1 North Americaʼs fastest growing Diversified Mineral Royalty Company 1. Copper Fox Metals Inc. News Release, 9/15/07 6 IRC Investment Highlights 1. Proven low-risk mineral royalty structure 2. Industry leading revenue growth 3. Strong, fully-funded growth pipeline 4. High quality, long-lived, diversified royalty assets 5. Experienced and highly aligned management team delivering profitable growth Attractive Risk Adjusted Returns Throughout the Commodity Cycle 7 IRC Selected Investment Results Estimated Initial IRC Total Payments Current or Full-Year Forward Return Royalty Remaining Mine Investment Thru 12/31/07 Royalty Payment on Investment1 Life (Yrs) (US$MM) (US$MM) (US$MM)2 Voisey’s Bay 27 $149.4 $53.4 $22.4 23% Western Australia 8 $10.2 $2.6 $6.1 80% Belahouro 7 $0.8 $0 $2.7 151% Pascua-Lama 20 $56.5 $0 $16.9 18% Pinson 10 $4.1 $0 $4.2 63% Horizon Coal 30 $1.5 $0 $0.94 30% BC Coal 21 $1.0 $0 $0.4 56% Williams 4 $2.2 $1.7 $0.32 52% Fedorova 18 $0.03 $0 $6.15 96% Outstanding Investment Returns See appendix for references and assumptions. 8 Ideal Mineral Investment Structure Royalty stream driven by operatorʼs revenue; not dependent on their profits Minimal exposure to CAPEX and OPEX price escalation Direct exposure to commodity prices, discovery and expansion upside Balanced asset portfolio of producing, development and exploration projects Strong leverage to other peopleʼs money “The best business is a royalty on the growth of others – requiring little capital itself” Warren Buffett 9 Why A Royalty Company? Maximum Exposure to Upside 10 ~85 High Quality Mineral Royalties Australia North America / Latin America Europe / Africa ~13 Royalties ~65 Royalties ~7 Royalties 93% in Secure Investment-Grade Countries 11 IRC Revenue Growth !"#$%&'()*+,,)-$.$%/$)01"2)-$3$%#)435/676&"%7)8) !1"9$3#7)6%):$.$(";2$%#)<=>?*@)AAB) !$#(!%%!! !"#$!%%!! !(#)!%%!! !&#$!%%!! !$'#"!%%!! *+,-!,./!01234! *+5534! 6+-/! 789:3-! ;8-<34! Increasing Revenue Diversification See appendix for references and assumptions. 12 High-Margin, Scalable Business Model +,-./0$%123&)*$ '#" $41.2 '!" &#" &!" Text %#" %!" !"#$%&''&()*$ $16.5 $32.6 $15.4 $#" $!" $10.6 $12.0 #" !" %!!(" %!!)" $*+",-./"%!!0" 123456" 78+"98:8;<8*" Revenue Growth Magnifies Profit Margins 13 Comparative Revenue Growth IRC 422% Silver Wheaton 101% Royal Gold 31% Franco-Nevada 18% 0% 100% 200% 300% 400% 500% Compound Annual Growth Rate 2004-07 Strong Annual Growth Rate 14 Long Life Projects Project Commodity Mine Life 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Voisey’s Bay Ni, Cu, Co 27 Legacy Industrial Sand 20 Las Cruces Cu 15 BC Coal Coal 21 Avebury Ni 8-10 Gwalia Deeps Au 9 Bell Creek Ni 15 Horizon Coal 30 Wolverine Ag, Au 9 Pascua Au 23 Fedorova Pt, Pd 18 High Lake Zn, Pb, Ag, Au, Cu 12 Pinson Au 10 Commissioning date not yet announced Westmoreland U 11 Commissioning date not yet announced Berg Cu, Mo, Ag 17 Commissioning date not yet announced Schaft Creek Cu, Mo, Au, Ag 30+ Commissioning date not yet announced Solid Foundation Underpins Long-Term Growth See appendix for references. 15 Diversifying Revenue Sources !""#$ !""#$ !"#"$ %&'!($))$ %&'("$))$ %&'()$**$ !"#$%&' ()**%+'