The Marigold property is subject to different Franco-Nevada royalties on different sections of the Marigold mine, including a royalty acquired in November 2009 on alternating sections which, along with the historic royalties, collectively covers essentially most, if not all, all production from the property. The Marigold mine is located in Humboldt County, Nevada and has been in operation for over 15 years. The mine is operated by conventional open pit mining with heap leach processing. Marigold is operated by a joint venture comprised of Goldcorp Inc. (“Goldcorp”) (66.66%) and Barrick (33.33%).

Franco-Nevada’s royalties include an effective 1.75% NSR royalty, a 5% NSR royalty, a 0.5%-1.5% GR, and a 2.5%-4% GR, all on different, alternating sections as detailed on the adjacent map. In addition, Franco-Nevada owns a 3% NSR royalty on three sections immediately to the southeast of the Marigold mine, leased by a different operator. The claims subject to the 1.75% NSR royalty were previously in production and generated revenues on production from the 8-South ore body from 1989 to 1994. Although there is no current production from this portion of the Marigold property, an annual AMR of $160,000 is payable, which is being credited and will be deducted from any subsequent production royalties payable from these claims in the future.

In 2010, production was 139,400 ounces of gold compared to 146,900 ounces of gold in 2009. The decrease in production was due to lower grades and less tonnage being mined from the Basalt Pit, as compared to 2009. Exploration during 2010 focused on mine development areas and geological modeling of the Target-Red Dot area.

Updated: April 14, 2011