GUARANTY AND AGREEMENT
IN SUPPORT OF SOMITA FUNDING AGREEMENT
This GUARANTY AND AGREEMENT IN SUPPORT OF SOMITA FUNDING AGREEMENT (this “
Agreement ”) dated as of February 22, 2006, is from HIGH RIVER GOLD MINES LTD., a corporation
formed under the laws of Canada (“ High River ”) to and for the benefit of ROYAL GOLD, INC., a Delaware
corporation (“ Royal Gold ”).
A. Société des Mines de Taparko, also known as SOMITA, SA, a société anonyme formed under the laws
of the Republic of Burkina Faso (“ Somita ”) and Royal Gold entered into a Funding Agreement dated as of
December 1, 2005 (the “ Original Funding Agreement ”), as amended by First Amendment to Funding
Agreement dated as of February 8, 2006 (the “ First Amendment ”), and as further amended and restated by
Amended and Restated Funding Agreement dated as of February 22, 2006 (as so amended and restated, the “
Funding Agreement ”). Pursuant to the Funding Agreement Royal Gold has agreed to provide funding to Somita
in the amount of U.S. $35,000,000 to be used in the development of the Taparko — Bouroum Project (defined
below) in the Republic of Burkina Faso.
B. As consideration for the funding to be provided pursuant to the Funding Agreement, Somita has executed a
Conveyance of Production Payments (PP1 and PP2) (the “ Production Payment Conveyance ”) and a
Conveyance of Tail Royalty and Grant of Milling Fee (the “ Tail Royalty Conveyance ”), both dated as of
February 22, 2006 and both in favor of Royal Gold (collectively, the “ Conveyances ”).
C. High River is the indirect owner of 90% of the issued and outstanding shares of Somita, through its
subsidiary High River Gold Mines (West Africa) Ltd., a corporation formed under the laws of the Cayman
Islands (“ Shareholder ”). The Government of the Republic of Burkina Faso is the owner of the remaining 10% of
the issued and outstanding shares of Somita.
D. Prior to the date of this Agreement, Royal Gold has provided Somita the amount o