ROYAL GOLD INC

On the terms and subject to the conditions set forth in the Horizon Agreement, at the times contemplated in the Horizon Plan of Arrangement:

•IRC will acquire all of the issued and outstanding common shares of Horizon (the “Horizon Common Shares”), other than the Horizon Common Shares held by Royal Gold or its affiliates or Sandstorm or a subsidiary of Sandstorm;

•each Horizon shareholder (other than in respect of Horizon Common Shares held by Royal Gold or its affiliates or Sandstorm or a subsidiary of Sandstorm, and Horizon shareholders who validly exercise dissent rights) will receive C$2.00 in cash (the “Horizon Consideration”), subject to adjustment as set forth in the Horizon Agreement, if applicable (such transaction, the “Horizon Arrangement”);

•each option or warrant to purchase Horizon Common Shares outstanding immediately prior to the effective time of the Horizon Arrangement (the “Horizon Effective Time”) will be transferred to Horizon (and then cancelled) in exchange for a cash payment in the amount (if any) by which the Horizon Consideration exceeds the applicable exercise price, multiplied by the number of Horizon Common Shares to which the option or warrant relates; and

•each Horizon restricted share right outstanding immediately prior to the Horizon Effective Time will be cancelled and entitle the holder thereof to a cash payment equal to Horizon Consideration multiplied by the number of Horizon Common Shares underlying such restricted share right.