Cortez Production Ore Reserves and Mineralization South Pipeline Development during fiscal 2001 attributable to this royalty totaled approximately $57,000.With the recent initiation of commercial production from South Pipeline, Royal Gold no longer expects to receive any more pay- ments from this royalty. During fiscal year 2001, Cortez produced 1.1 million ounces of gold from the Pipeline Mining Complex, and production is expected to exceed 1.0 million ounces in fiscal 2002. In July 2000, Cortez announced an agreement with AngloGold-Meridian’s Jerritt Canyon Joint Venture whereby Jerritt Canyon agreed to purchase and process up to 500,000 tons (450,000 tonnes) of stockpiled, refractory ore grading greater than 0.3 ounces per ton (“opt”) (10 grams per tonne (“gpt”)), with the option to purchase an additional 500,000 tons (450,000 tonnes). In August 2001, Cortez announced that a Letter of Intent agreement had been reached, this time with Barrick Gold, for future processing of refractory ores at Barrick’s Goldstrike facility. • A 7% GSR on all silver produced from any of the Reserve or Gas Claims. In June 2000, Cortez advised that it had received all required permits for the development of the South Pipeline deposit. A Notice of Appeal and Petition for Stay Pending Appeal were filed in late July 2000 contesting the South Pipeline permits. In January, the Petition for Stay was denied. Since receipt of the permits, Cortez has aggressively devel- oped the South Pipeline deposit by removing over- burden alluvium and initiating the mining of gold ore. Placer Dome reported proven and probable reserves for the Pipeline Mining Complex, as of December 31, 2000, at a gold price of $300 per ounce, of 151,338,000 tons (137,291,563 tonnes), at an average grade of 0.047 opt (1.61 gpt), containing approximately 7.1 million ounces of gold. Placer Dome also reported that in addition to the proven and probable reserves, the property contains approximately 60.6 million tons (54.9 million tonnes) of additional mineralized material, at an average grade of 0.047 opt (1.61 gpt). The royalty positions held by Royal Gold at  the Pipeline Mining Complex relate to the following approximate attributable portions of the reserves and additional mineralized material as of December 31, 2000: * Proven and probable reserves are ore reserves for which (a) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes and the grade is computed from the results of detailed sampling, and (b) the sites for inspection, sampling and measurements are spaced so closely and the geologic character is so well-defined that the size, shape, depth and mineral content of the reserves are well established. * Mineralized material has not been included in the proven and probable reserve estimates because these deposits do not qualify as commercially mineable ore bodies until further drilling and metallurgical work are completed, and other economic and technical feasibility factors based upon such work are resolved. 5 ROYALTY GSR1 GSR2 GSR3 NVR1 CATEGORY * Reserve  Mineralized Material Mineralized Material Reserve  Mineralized Material Reserve  Mineralized Material TONS (TONNES) 151,337,747 22,619,600 37,985,000 151,337,747 60,604,600 122,361,600 48,508,400 AVERAGE GOLD GRADE (OPT/GPT) 0.047 0.053 0.043 0.047 0.047 0.041 0.048 CONTAINED OUNCES 7,058,482 7,058,482 5,060,840 (1.61) (1.82) (1.47) (1.61) (1.61) (1.40) (1.64) (137,291,334) (20,520,162) (34,459,422) (137,291,334) (54,979,584) (111,004,608) (44,006,093)