Tidewater Interests - Saskatchewan

Franco-Nevada holds a 56.13% interest in the Saskatchewan Gulf Securities Tidewater Royalty. The Tidewater Interests consist of a 2.5% overriding royalty on 28,900 gross (net 405) acres of land located throughout southern Saskatchewan in the Dollard Unit, Instow Unit, Rapdan Unit, smaller miscellaneous units and non-unit properties. The portfolio’s net overriding royalty is 1.40%. This royalty was created by an agreement dated June 6, 1949 between Gulf Securities Corporation Ltd. and Tide Water Associated Oil Company and is administered by Computershare Trust Company of Canada.

Production comes from 11 units and approximately 240 gross (net 3.4) non-unitized wells and consists of oil and, depending on the area, some solution gas. There are a number of different operators of these units and wells. Talisman Energy Inc., Pemoco Ltd. and Canetic Resources Inc. operated units and wells that produced 80% of the Oil & Gas Interests’ revenue received from the Tidewater Interests. The producing formations are in the Madison Group of Mississippian age. For the 11 days ended December 31, 2007, production net to the Oil & Gas Interests was 47 Boe/d. As of December 31, 2007, net proved reserves to the Oil & Gas Interests were 274 Mboe.