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Business Risks Mitigating Factors Regulation and -Business plan developed Environmental Concerns with regulatory and environmental sensitivities in mind -Management is experienced and competent in environmental and regulatory affairs Competition -Extensive mining experience and industry reputation of management fostering competitive position through access to information and opportunities H. Company Personnel As of the date of this Proxy Statement, the Company has IS full time employees, all of whom are concerned with gold mining operations except for approximately three full time equivalent persons who are involved with winding up the Company's oil and gas operations and managing, under contract with Victoria, the accounting and land functions relating to the Company's oil and g:ts properties. The Company does not anticipate any change of its Board of Directors or officers as a result of the sale of its oil and gas properties other than changes in otLicerships among the existing officers of the Company and Royal Gold, Inc. With the approval of the name change of the Company to Royal Gold, lnc. (See Proposal 3 following), the Company is planning to change the name of its wholly owned subsidiary, Royal Guld, Inc. Additional consulting services, relating primarily to geological and geophysical interpretations, engineering, lease acquisition and such other technical assistance as may be deemed necessary or advantageous in the operation o('the Company's gold mining business are secured through independent consultants and contractors. Mr. Stanley Dempsey, a director and President and Chief Operating Officer of Royal Gold, Inc. ("RG 1") and Denver Mining Finance Company ("DMFC"), wholly owned subsidiaries of the Company, and Mr. Edwin Pciker, Jr., a vice president of RGI and DMFC, have assumed a greater role in the Company's operations because of the proposed sale of the oil and gas properties. Mr. Dempsey, 47, has many years of experience in the mining industry with an emphasis on finance and mine development. Mr. Dempsey has been a member of the Board of Directors for the Company since 1984. He was formerly a vice president of AMAX, Inc., senior vice president of Climax Molybdenum Company, and chairman of AMAX Australia Limited. He also served as deputy chairman of Australian Consolidated Mines, a leading producer of gold in Australia. Mr. Dempsey is apast-president of the Colorado Mining Association and the Rocky Mountain Mineral Law Foundation. He has been active in mining industry and civic organizations in this country and abroad. He was on leave of absence from AMAX, Inc. from 1983 to 1986, and practiced law as a partner of the Washington, D.C. and Denver firm of Arnold & Porter during that period.