Royal Gold, Inc. 2021 ESG Report 36 Deal Creation and ESG If a positive investment decision is made, a stream or royalty agreement is then developed. When the opportunity arises, we actively integrate ESG considerations into our contracts to monitor the ESG performance of the mining operations in which we have interests. This is an area of ongoing development for Royal Gold, and we are actively seeking to improve our performance in the integration of ESG considerations into stream and royalty contracts. This will be further reported in subsequent ESG reports. When entering into a new agreement for a metal stream or royalty, we seek durable contract structures that typically include the following elements intended to both limit the ESG risks associated with our investment, and provide for adequate communication or investigation of ESG risks that might arise from time to time, notwithstanding our passive business model: • Operating Covenants: Requiring Operators to conduct project operations in compliance with host country laws and permits and, where possible, industry-recognized best practices for mine operations and management and mitigation of ESG risks. • Information Rights and Reporting Obligations: Provide for transparency and regular and exception-based reporting of material developments in project operations, labor matters, environmental issues and concerns of local communities and other stakeholders. • Inspection and Audit Rights: Allow for regular inspection of project operations and audit of operator books and records. • Delivery Standards: Where we take delivery of precious metals, requiring that those deliveries satisfy the London Bullion Market Association’s (LBMA) “Good Delivery” standards, including adherence to LBMA’s “Responsible Sourcing Programme”, designed to combat money laundering, terrorist financing and human rights abuses in the precious metals markets. • Transfer Restrictions: Create reasonable restraints on the transfer of project ownership to ensure that projects continue to be owned and operated by strong and reputable counterparties. • Remedies: Allow for monetary and other damages and rights, including contract termination and recovery of Royal Gold’s economic interest under certain circumstances. Carmen de Andacollo