Separation Of Wassa And Prestea/Bogoso Stream Agreement, And New Stream Agreement

DENVER, CO — Royal Gold, Inc. has completed the separation of the Wassa and Prestea/Bogoso stream agreement into separate stream agreements with Golden Star Resources Limited for the Wassa mine (Wassa Stream Agreement), and with Future Global Resources Limited (FGR) for the Prestea/Bogoso mines (Prestea/Bogoso Stream Agreement).  Royal Gold entered into a stream agreement with Golden Star on May 6, 2015, as amended (the “Original Stream Agreement”), which provides for the right to purchase 10.5% of the gold produced from Golden Star’s Wassa and Prestea/Bogoso mines until an aggregate delivery of 240,000 ounces, after which the stream percentage would decrease to 5.5%. The cash purchase price for gold was 20% of the spot price per ounce delivered until the aggregate delivery of 240,000 ounces, and 30% of the spot price per ounce delivered thereafter.

On July 27, 2020, Golden Star announced that it signed a binding agreement for the sale of the Prestea/Bogoso mines to FGR, which required the separation of the Original Stream Agreement into separate stream agreements for each of Wassa and Prestea/Bogoso.

From May 6, 2015 through June 30, 2020, approximately 110,500 ounces of payable gold were delivered to Royal Gold from the Wassa and Prestea/Bogoso mines according to the terms of the Original Stream Agreement. Of this total, 69,700 ounces were delivered from Wassa and 40,800 ounces were delivered from  ?In summary, the Wassa Stream Agreement gold stream rates and cash purchase prices remain consistent with the Original Stream Agreement, and the gold delivery threshold of 240,000 ounces will apply to the Wassa mine.

Based on the deliveries received from Golden Star under the Original Stream Agreement, as of June 30, 2020, approximately 129,500 ounces remain to be delivered before the 240,000 ounce delivery threshold is reached.

The material terms of the Wassa Stream Agreement, including security and the rights and obligations of both Royal Gold and Golden Star, remain consistent with those in the Original Stream Agreement as they relate to the Wassa mine.?In summary, the Prestea/Bogoso Stream Agreement provides Royal Gold the right to purchase 5.5% of the gold produced from the Prestea/Bogoso mines in return for a cash purchase price of 30% of the spot price per ounce delivered, consistent with the tail stream interest in the Original Stream Agreement.

The material terms to the Prestea/Bogoso Stream Agreement, including security and the rights and obligations of both Royal Gold and FGR, are substantially consistent with those in the Original Stream Agreement as they relate to the Prestea/Bogoso mines.