Oil and Gas

Franco-Nevada’s significant oil and natural gas interests are the Edson Property, Weyburn Unit, Midale Unit, Medicine Hat Consolidated Unit No. 1 and Tidewater Interests. These properties accounted for approximately 81% of the production revenue from the Oil & Gas Interests for the year ended December 31, 2006 and 81% of proved reserves for the year ended December 31, 2006. As of December 31, 2006, total proved plus probable reserves for these properties was 7.7 MMboe, using forecast costs and prices.

Approximately 50 areas contribute the remaining approximately 19% of total oil and natural gas revenues, and are comprised of approximately 3,500 gross producing wells, and encompass a wide variety of royalty agreements and operators and are primarily located in Alberta and Saskatchewan.

Franco-Nevada’s Oil & Gas interests also include 1,140 Bcf of natural gas proved, plus probable, plus possible reserves, net to Franco-Nevada, located in the Arctic.