Pre-Feasibility Study Highlights Significant Mine Life Extension at Mount Milligan, Royal Gold’s Largest Stream Interest

DENVER--(BUSINESS WIRE)-- Royal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) reported today that Centerra Gold Inc. (“Centerra”) has announced the results of a pre-feasibility study (“PFS”) for the Mount Milligan mine in British Columbia that confirms a life of mine (“LOM”) extension of approximately 10 years, to 2045, with the potential to increase the process plant throughput by approximately 10% in 2029.

“We are pleased to see the results of this PFS, which confirms a significant extension to the mine life at Mount Milligan,” commented Bill Heissenbuttel, President and CEO of Royal Gold. “Our Cost Support Agreement with Centerra, entered into in early 2024, was designed to help Centerra unlock the potential of the large resource at Mount Milligan and add long term value for each company’s stakeholders, which is clearly demonstrated with the results of this study. Mount Milligan is our largest stream interest and we have recovered over 150% of our advance stream deposit to date. With the mine life expected to continue for another 20 years and the potential for further extensions, Royal Gold has another significant interest on a long-life mine in a stable and mining-friendly jurisdiction.”

According to Centerra, key highlights of the PFS include:

• Extended mine life with further growth potential. The LOM is expected to be extended by approximately 10 years, to 2045. Drilled inventory from recent step-out and infill drilling programs has confirmed the continuation of mineralization to the west of the current open pit, and a second tailings storage facility (“TSF”) will be constructed in the first half of the 2030s. Ongoing exploration continues to highlight the potential to further expand mineral resources and extend mine life beyond the updated plan, and the TSF footprint has been designed to accommodate future lifts to provide flexibility for potential further LOM extensions that could add multiple decades of capacity beyond the current mine life of 2045.
• Increased throughput and recovery. In 2029, process plant throughput is expected to increase by 10%, from 60,000 tonnes per day (“tpd”) to approximately 66,300 tpd, by upgrading the ball mill motors. Flotation capacity is also expected to increase which should deliver a modest improvement in gold and copper recoveries of about 1%.
• Consistent gold and copper production. Average annual production from 2026 to 2042, is expected to be approximately 150,000 ounces of gold and 69 million pounds of copper, followed by the processing of low-grade stockpiles from 2043 to 2045.
• Significantly increased gold and copper reserves. An updated proven and probable mineral reserve totaling 483.2 million tonnes, with an average grade of 0.28 grams per tonne (“g/t”) gold and 0.16% copper, containing 4.4 million ounces of gold and 1.7 billion pounds of copper was included in the PFS. This represents a 56% increase from the 2.8 million ounces of gold reserves and a 52% increase from the 1.2 billion pounds of copper reserves reported at the end of 2024, driven mainly by resource conversion related to increased tailings capacity and infill drilling.
• Streamlined path for permitting. In March 2025, Centerra submitted its amendment application for key permits to extend operations through 2035, including a process plant throughput expansion of approximately 10%, with a decision by regulators expected in the first half of 2026. Permitting activities for a second TSF and other required authorizations are expected to begin in 2027, allowing adequate time for approvals ahead of planned construction in 2032.

About Royal Gold’s Interests in Mount Milligan

Royal Gold, through its wholly-owned subsidiary RGLD Gold AG, owns the right to purchase 35% of the payable gold and 18.75% of the payable copper produced from Mount Milligan (the “Existing Stream Agreement”). Payable gold is calculated as 97% of contained gold in concentrate. Payable copper is calculated as the greater of 95% or the actual percentage paid to Centerra. The cash purchase price for gold is equal to the lesser of $435 per ounce, with no inflation adjustment, or the prevailing market price when purchased. The cash purchase price for copper is 15% of the spot price.

In February 2024, Royal Gold announced an additional agreement with Centerra to provide cost support to allow an extension of the Mount Milligan mine life beyond 2035 and offer the potential for a future mine life increase (the “Cost Support Agreement”). This agreement provides for additional cash purchase prices for gold and copper deliveries in three periods, which are defined by gold and copper deliveries. The combined effect of this Cost Support Agreement on the payments for metal deliveries from Mount Milligan when considered with the Existing Stream Agreement is summarized in the table below: