Royal Gold, Inc. 2021 ESG Report 9 In addition to income and withholding taxes, certain royalty payments we receive are subject to production taxes (or mining proceeds taxes), and we pay other government royalties, mineral rights taxes, VAT taxes and HST/GST taxes. These non-income taxes are included within the costs and expenses section in our consolidated statements of operations and comprehensive income. Portfolio Manager vs. Mine Owner and Operator Royal Gold does not actively own, develop or participate in mining at the properties on which we hold stream and royalty interests. Rather our stream and royalty interests are passive interests in mine production. Our management team has significant industry and company-specific experience, which provides us with the necessary skills to competently evaluate new opportunities and to manage the existing portfolio of stream and royalty interests. The scalable nature of our business model allows us to effectively manage our business with only a fraction of the employees of an operating mining company. The properties on which we hold interests span various stages in the life of mining projects, from the initial stages of exploration and evaluation through development and, ultimately, production. The Operators make all development and operating decisions, and, in general, we have limited influence regarding the development or operation of the mineral properties subject to our stream and royalty interests through the contractual arrangements we put in place when an investment is initiated and, over the course of our relationship, through active engagement with our Operators. About This Report This inaugural ESG Report is intended to provide our stakeholders with detailed information regarding Royal Gold’s internal processes as they relate to ESG considerations, as well as specific information on the ESG performance of our Principal Properties and the revenue generating portion of our portfolio. It is expected that future ESG reports will continue to evolve in both content and key areas of focus. We welcome feedback to this report. To prepare this report we retained the services of a well- regarded, independent, third-party ESG consulting firm to identify the most important ESG topics of interest to shareholders and other stakeholders. As part of this process, interviews were conducted with members of our Board and management team, as well as several of our largest institutional shareholders, which allowed us to identify specific topics to address in this inaugural report. Out of this process five ESG topics were identified as the most important to our business: Governance, Talent, Product Design/Lifecycle of a Deal, Business Integrity and Transition to a Lower Carbon Economy. Through consultation with our third-party ESG consultant, Royal Gold has developed a deep understanding of each of these topics. We have internally discussed these topics and identified a need to separate issues that are key to Royal Gold and those that are most important to our Operators. For example, Royal Gold generates carbon emissions from its corporate offices, whereas our Operators generate carbon emissions from the business activities which they manage. As another example, health and safety considerations are different in our corporate activities as compared to those at an active mine or development project owned by an Operator. Both areas can be a source of risk to Royal Gold. To assist in this understanding, we have developed the figure below which identifies the five important ESG risks identified by our third-party ESG consultant, then expands and reorganizes them to reflect the direct and indirect influence we may have on those risks. We have also expanded our itemization of topics to include more granularity. In in the figure below we show our perception of the relative importance of each ESG topic. Each of these topics also represents an ESG risk to both our stakeholders and Royal Gold.