Franco-Nevada’s royalties include a 5% NSR, less third party underlying royalties, on portions of the Hollister project, Nevada, resulting in (i) an effective 3% NSR on a 45 claim block area called the Hillcrest-Finley River Block, and (ii) a 5% NSR royalty on another portion of the Ivanhoe property. The Hollister project is located at the northern end of the Carlin Trend in northeast Nevada. Great Basin Gold Limited (“GBG”) owns and operates the Hollister project. On February 24, 2011, GBG announced that 95,182 gold equivalent ounces were extracted from Hollister during 2010 at a cash cost of approximately C$760 per gold equivalent ounce. For 2010, Hollister ores were processed at GBG’s Esmeralda Mill (56,000 tons) and toll-treated at Newmont’s Midas and Yukon Nevada’s Jerritt Canyon facilities (39,000 tons).

In 2011, GBG announced plans to extract 110,000 contained ounces from mining operations with ore expected to be processed only at its Esmeralda Mill, eliminating the need for costly third party tolling arrangements.