Franco-Nevada has a fixed and capped royalty covering a portion of the Laverton Gold project operated by Crescent Gold Limited (“Crescent”). The royalty area is 1,226 hectares, and includes the Admiral Hill and Castaway deposits. Crescent successfully negotiated an Ore Purchase Agreement with subsidiaries of Barrick for the sale of Crescent’s gold ore to Barrick for processing at their Granny Smith mill. Processing of Admiral Hill and Castaway ore commenced in Q1 2010. Castaway mining and processing was completed during 2010. Mining operations at Admiral Hill were suspended in October 2010 as high copper levels led to minor processing delays at the Granny Smith mill. Blending the ore has since been trialled successfully, and mining will resume in Q1 2011.

The royalty rate is fixed at approximately A$0.33 per tonne. The first 230,000 tonnes approximately are royalty-free and the royalty is capped at 1,955,000 tonnes. The royalty-free threshold was exceeded in Q2 2010 and, as of December 2010, a total of 804,703 tonnes had been mined and processed from the royalty area.

Updated: April 14, 2011