Royal Gold, Inc. 2021 ESG Report 28 Investment Strategy Royal Gold provides shareholders with exposure to precious metal-based revenue through the acquisition of streams and royalties. Our investment approach fully incorporates ESG factors in the determination of investment eligibility. As Royal Gold requires externally raised capital to finance these investments, our capital providers and investors act as a second screen of the ESG performance of our Operators and our investment strategy. If we are unable to demonstrate a thorough approach to ESG vetting in all aspects of our business our sources of capital may be limited, which may impact our ability to finance future acquisitions and provide growth to our shareholders. Our Approach to Due Diligence Our business model is designed to provide shareholders with long-term exposure to resource upside and metal price optionality for the life of a mining project. We understand that sustained economic performance cannot be obtained without sound ESG practices. As such, the sustainability of our investments is fundamental to our long-term success. Streams and royalties are passive interests in mining projects. While we do not take an active role in the management of these projects, and generally have limited influence over the decisions of our Operators, it has always been a core tenet of our business model that successful mining projects create sustainable benefits for all stakeholders, including shareholders, project labor and local communities. Therefore, in line with our ESG Policy, we seek to promote responsible and sustainable mineral development across our portfolio. Royal Gold endorses the International Council on Mining and Metals’ (ICMM) Mining Principles and participated in implementation of the World Gold Council’s Responsible Gold Mining Principles (RGMPs), both of which promote ethical and sustainable resource development. We integrate these principles into Royal Gold’s own business planning and operations, as appropriate, and encourage our Operators, whom we consider to be members of our supply chain, to adhere to these or similar principles in their own management and operations. For calendar year 2021, Operators responsible for generating more than 93% of our revenue endorsed either the World Gold Council’s Responsible Gold Mining Principles, International Council on Mining and Metals Principles for Sustainable Development, and/or subscribed to one or more similar international charters respecting ESG issues. An Appendix is provided to this report identifying our Operators, their fiscal year 2021 contribution of Royal Gold revenue, and the ESG charters to which each Operator subscribes. Our Due Diligence Process Royal Gold is a stream and royalty company and does not manage or operate mining projects or exercise direct control over mining operations. As such, the initial ESG due diligence process is the critical time for identifying any potential ESG risks prior to entering into any agreement with the Operator. Royal Gold’s Investment Committee is responsible for completing due diligence reviews and assessing findings from those reviews. For each potential new investment our Investment Committee first undertakes what is internally referred to as a “Phase 1” review, which is a high-level review focused on financial, technical, ESG, and political risk considerations. If the results of the Phase 1 review are positive then a follow-on “Phase 2” review is undertaken. For this more detailed evaluation a team of subject matter experts is assembled, from both within our organization and from external third parties, to provide in-depth assessments on a variety of considerations for a potential investment. Typical thematic areas include, but are not limited to: • Geology, including exploration potential; • Resource estimation; • Mining methodology; • Mine geotechnical stability; • Metallurgy and ore processing; • Environmental, social and governance; • GHG emissions and climate change; • Permitting, including local view of ongoing or future permitting requirements; • Political risk; • Project execution and capital cost; • Tailings storage and waste rock management; • Water supply and water management; • Infrastructure; and • Closure plans