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## 12. CONTINGENCIES 

## Casmalia: 

The Company received notice, on March 24, 2000, that the U.S. Environmental Protection Agency (“EPA”) has identified Royal Resources, Inc. (Royal Gold’s corporate predecessor) as one of 22,000 potentially responsible parties (“PRPs”), along with many oil companies, for clean-up of a fully-permitted hazardous waste landfill at Casmalia, Santa Barbara County, California, under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (“Superfund”).The Company’s alleged PRP status stems from oil and gas exploration activities undertaken by Royal Resources in California during 1983-84. 

At the end of June 2001, the Company agreed in principle, subject to the drafting of an acceptable consent decree, to accept financial responsibility for approximately two million pounds of customary oil and gas well drilling mud, and to settle with the EPA for approximately $110,000.The Company has also spent $20,000 on legal fees in the fiscal year.These amounts, along with legal fees of $20,000, are accrued in the June 30, 2001 financials. 

## 13. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) 

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