BUCKHORN SOUTH EUREKA COUNTY, NEVADA GREEK AMERICAN EXPLORATION LTD. MILOS GOLD PROJECT  MILOS, GREECE Royal Gold holds a 14% net profits interest on any production from the Buckhorn South prospect which is currently being explored by AngloGold North America.The property hosts known mineral- ized material totaling approximately 2.4 million tons (2.2 million tonnes), with an average grade of 0.046 opt (1.6 gpt), or approximately 110,000 contained ounces.Whether some or all of this mineralization will be classified as proven or probable reserves depends upon consideration of further drilling and metallurgical test results, and application of econom- ic and technical feasibility factors. Royal Gold owns 25% of Geological Exploration and Development S.A. (G.E.D., formerly Midas S.A.), a Greek company that holds the gold exploration license on four islands in the Aegean Sea, including Milos.The license area, centered on Milos, is approxi- mately 90 miles south of the city of Athens.The remaining interests in G.E.D. are held by Silver & Baryte Ores Mining Company S.A. (a Greek public company), with 50% ownership, and Aegean International Gold with 25% ownership. Early in fiscal 2001, Royal Gold was informed  by Silver & Baryte that the Greek Ministry of Environment, Regional Planning and Public Works had returned the environmental impact study that Midas S.A. had submitted for the purpose of performing  further exploration work on Milos.The Ministry’s letter explained that “ . . approval of the study in this phase would create unfavorable consequences for the environment in the area.” This action has effective- ly brought all on-site activities to a standstill. Silver & Baryte is now managing the project, and is working to resolve the current impasse, with the objective of securing a reversal of the Ministry’s action. Greek American Exploration Ltd. (“GRAMEX”)  is a Bulgarian company owned equally by Royal Gold and Silver & Baryte Ores Mining Co. of Athens, Greece. GRAMEX operates through Sofia Minerals Ltd. (“SOMIN”), which is a 50/50 venture of GRAMEX  and Phelps Dodge Exploration Corporation. SOMIN currently holds four exploration licenses in Bulgaria, targeting potential for large gold and copper-gold  systems. 9