Medicine Hat - Alberta

Medicine Hat Consolidated Unit No. 1 is a unitized gas field located in Alberta, approximately 257 kilometers southeast of Calgary, Alberta, and encompasses 62,770 gross (net 1,443) acres with 623 gross (net 14.3) producing wells. Franco-Nevada holds an effective 2.3% overriding royalty in the Medicine Hat Consolidated Unit No. 1. This Unit is operated by Petro-Canada and produces natural gas without any associated liquids. This Unit was formed in 1994 and produces from the Medicine Hat zone of Upper Cretaceous Age.

For the 11 days ended December 31, 2007, production net to the Oil & Gas Interests was 106 Boe/d (637 Mcf/d). As of December 31, 2007, net proved reserves to the Oil & Gas Interests were 401 Mboe (2,407 MMcf).