39 Royal Gold, Inc. 2022 Environmental, Social and Governance Report About Royal Gold Governance ESG Stewardship Our People Our Operators and Communities Appendices ESG risk evaluation To gain a comprehensive understanding of the potential risks of each investment opportunity, our due diligence processes take a risk- based approach. Identifying risks associated with environmental and social impacts can be paramount in our reviews, particularly those we classify as “red flags.” Red flags are risks we consider to be largely uncontrollable, unpredictable or unusual, or where an Operator has a different perspective on addressable issues. If red flags are identified in a review, a recommendation to invest will not proceed until additional due diligence is undertaken to reduce the risk classification, or until actions to reduce the risk classification are implemented. We have withdrawn from investment processes in the past solely for environmental, social or governance reasons. Identifying risks associated with environmental and social impacts can be paramount in our reviews, particularly those we classify as “red flags.” A summary of our 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