Royal Gold, Inc. 2021 ESG Report 34 Jurisdictional Review Geopolitical risk is evaluated when assessing potential new business opportunities. In circumstances deemed appropriate, third-party experts are used to provide an independent view on the political environment in the country in which the opportunity is located. Understanding the jurisdictional context of a given project’s ongoing or planned operations is a key component of our due diligence review. ESG Risk Evaluation Our review and due diligence processes are all risk based, and we endeavor to understand the range of risks we would be taking on with each investment opportunity. Risks associated with environmental and social impacts are paramount in our reviews. Our focus is to avoid risks we classify as “Red Flags”, which are risks that we identify as being largely uncontrollable, unpredictable or unusual. If we identify Red Flag risks in a review, we will not proceed with a recommendation to invest without completing additional due diligence to reduce the risk classification, or implementing mitigating actions to reduce the risk classification. A summary of ESG Risk Rating Categorization following our due diligence is shown in the figure below. Risk Indicator Potential ESG Impacts Low Risk - Risks that could or may have a relatively insignificant impact on the character or nature of the project, its stakeholders and/or its economics. Generally, can be mitigated by normal management processes combined with minor cost adjustment or schedule allowances. Not anticipated to be significant Moderate Risk - Risks that are considered to be average or typical for a project of this nature. These risks are generally recognizable and, through good planning, managerial and technical practices, can be minimized so that the impact on the project, stakeholders or economics is manageable. Temporary disruption due to environmental or social issues High Risks (Red Flag) - Risks that are largely uncontrollable, unpredictable, unusual, or are considered not to be typical for an operation of a particular type. Good technical practices and quality planning are no guarantee of successful operation. These risks can have a major impact on the economics of the project including significant disruption of schedule, significant cost increases, and/or degradation of physical environment or loss of “Social License to Operate.” Situation could require Royal Gold to not proceed with investment