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## PROPERTY PORTFOLIO 

## PIPELINE MINING COMPLEX LANDER COUNTY, NEVADA 

The Pipeline Mining Complex is owned and operated by The Cortez Joint Venture (“Cortez”), a joint venture between Placer Cortez Inc., a sub- sidiary of Placer Dome Inc., (60%) and Kennecott Explorations (Australia) Ltd., a subsidiary of Rio Tinto (40%). Royal Gold currently holds four principal royalty interests on the property: two sliding-scale gross smelter returns royalties, (GSR1 and GSR2), a fixed-rate gross royalty (GSR3), and a net value royalty (NVR1). Cumulative royalty payments made to Royal Gold by Cortez during the year ended June 30, 2001, totaled approximately $5.8 million. 

## Pipeline Mining Complex Royalty Interests 

• GSR1: This royalty covers all gold produced from the “Reserve Claims,” a block of 52 claims encompassing the known reserves (the current mine footprint). GSR1 is a sliding-scale royalty tied to the price of gold (see table, pg. 7). Royalty payments received during fiscal year 2001 attributable to GSR1 totaled approximately $4.1 million. 

• GSR2: This royalty covers all gold produced from the claim block lying outside the current mine footprint (the remaining 296 lode claims known as the “GAS Claims”). GSR2 is also a sliding-scale royal- ty tied to the price of gold, but it pays out at a rate that is 80% higher than that of GSR1, at all gold prices.There were no royalty payments received in fiscal 2001 attributable to production from lands subject to GSR2. 

• GSR3: This royalty is a 0.71% fixed-rate royalty, for the life of the mine, encompassing all of the “GAS Claims” and “Reserve Claims.” Royalty payments received during fiscal year 2001 attributable to GSR3 totaled approximately $1.6 million. 

## ROYAL GOLD'S ROYALTY POSITION PIPELINE MINING COMPLEX 

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• NVR1: This 0.37% net value royalty applies to most of the GAS Claims, including the South Pipeline deposit and Crossroads area, but not including the Pipeline pit.This royalty was purchased in April 2001, for approximately $2.1 million.The NVR1 is calculat- ed by deducting processing-related and associated capital costs, but not mining costs. Royalty payments received during fiscal year 2001 attributable to the NVR1 totaled approximately $49,000. 

• A 10% GSR on all gold and silver produced from any of the GAS Claims from January 1, 1999, until the commencement of commercial production from the South Pipeline deposit. Royalty payments received 

