Operator: Khoemacau Copper Mining (Pty.) Limited (“KCM”)

Location: Botswana

100% Payable Silver

Term of Stream: Life of Mine

Khoemacau is a copper-silver project located in a sparsely populated region of northwestern Botswana in the Kalahari Desert. It is located in the Kalahari copper belt, although the main mineralized zone demonstrates a high-grade copper tenor that is atypical of what has been discovered in the belt thus far.

Khoemacau is made up of over 4,040 square kilometers of mineral concessions, which include concessions acquired from Hana Mining Ltd. (Hana) in 2013 as well as concessions and a plant and associated infrastructure (the “Boseto Mill”) acquired out of the receivership of Discovery Metals Inc. in 2015. While the Zone 5 deposit was discovered by Hana in 2012, it was not thoroughly explored and evaluated until 2013. Since the consolidation of the properties, KCM has focused on exploration and development of the Zone 5 orebody and integration of Zone 5 with the Boseto Mill. Cupric Canyon Captial LP (Cupric) reports that the mineralization has proven to be very consistent over the known linear strike of nearly four kilometers and 60 degree dip, and averages 9 to 10 meters in width.

KCM’s current mine plan envisions mining and processing of 74.4 million tonnes grading 2.0% copper and 21.4 g/t silver over the 21-year mine life, averaging payable production of approximately 62,000 tonnes of copper and 1.9 million ounces of silver per year. Excluding the impact of the silver stream, KCM forecasts life of mine by-product C1 plus sustaining capital costs of approximately US$1.71 per pound of copper on a by-product basis at a silver price of US$16.00 per ounce, placing the operation at approximately the 50th percentile on the global copper cost curve. At a silver price of US$16.00 per ounce and a copper price of US$2.90 per pound, silver represents approximately 7% of the mine’s expected revenues.

Royal Gold received its first silver stream deliveries for the September 2021 quarter.