34 Royal Gold, Inc. 2022 Environmental, Social and Governance Report About Royal Gold Governance ESG Stewardship Our People Our Operators and Communities Appendices Due diligence Our approach While we do not take an active role in the management of the mining projects in which we hold stream and royalty interests and generally have limited influence over the decisions of our Operators, it has always been central to our business model that successful mining projects create sustainable benefits for all stakeholders, including shareholders, project labor and local communities. In line with our ESG Policy, we therefore seek to promote responsible and sustainable mineral development across our portfolio. Royal Gold endorses the ICMM Mining Principles and the RGMPs, both of which promote ethical and sustainable resource development. These principles are integrated into Royal Gold’s business planning and operations, as appropriate, and we encourage our Operators, whom we consider to be members of our supply chain, to adhere to these or similar principles in their management and operations. For the 2022 calendar year, Operators responsible for generating more than 93% of our revenue endorsed either the WGC’s RGMPs, the ICMM Principles for Sustainable Development, and/or subscribed to one or more similar international charters respecting ESG issues. Please see the Appendices on page 103 , which identifies our Operators, their calendar year 2022 contribution to Royal Gold revenue, and the ESG charters to which each Operator subscribes. Our process The initial ESG due diligence process is a critical time to identify any potential ESG risks prior to entering into an agreement with an Operator. Royal Gold’s operations and senior management teams are responsible for completing due diligence reviews and assessing findings from those reviews. For each potential new interest our Operations Team undertakes, we undertake an internal “Phase 1” review – a high-level review focused on financial, technical, ESG and political risk considerations. If the results of the Phase 1 review are positive, the review moves to “Phase 2.” For this more detailed evaluation, a team of subject matter experts provides in-depth assessments across various topics. We recognize that each investment opportunity is unique, requiring project-specific due diligence reviews and teams. This includes engaging third-party experts that can provide technical knowledge with respect to the local operating environment, including specific knowledge of permitting within a given jurisdiction. Our phased approach to project reviews allows the use of our Phase 1 review findings to inform a tailored due diligence scope of work and determine the skills needed on the team that will assess Phase 2. A summary example of our typical Phase 2 due diligence team is provided in the figure below. PHA SE 1 TOPIC S MAY INCLUDE THE FOLLOWING: – Geology, including exploration potential – Resource estimation – Mining methodology – Mine geotechnical stability – Metallurgy and ore processing – Location and proximity to communities, protected areas, Indigenous Peoples, and climate hazards – Community relations and social setting – Governance policies and management frameworks – GHG emissions and climate change – Permitting, including a 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 and the potential competition for water – Infrastructure – Closure plans and reclamation PHA SE 2 DUE DILIGENCE TE AM: CORE TE AM: FOR GREENFIELD PROJEC TS: SPECIALT Y E XPERTS: – Project Coordinator (Royal Gold leader) – Geologist – Resource Geologist – Mining Engineer – Metallurgist – Tailings Facility Engineer – Environmental/Permitting/ Social Expert – Infrastructure Expert – Capital Cost Estimator/Project Controls Expert – Capital Cost Benchmarking Expert – Hydrologist/Hydrogeologist – Geotechnical Engineer – Metallurgical Expert – Biodiversity Expert – Community Relations Expert – Country/Political Risk Expert – Climate/GHG Expert