Franco Nevada

The Ity gold mine is located in western Côte d'Ivoire about 700 km from Abidjan. Ity consists of several separate open pits and the operator has recently been focused on higher grade areas obtained from the Mount Ity pit. The project is presently operated by Société des Mines d’Ity (“SMI”) which is owned 45.9% by COMINOR, a wholly owned subsidiary of La Mancha Resources Inc. (“La Mancha”). 44.1% by the Société d'État pour le Développement Minier de la Côte d’Ivoire (“SODEMI”) and 10% by the Côte d'Ivoire government. Franco-Nevada inherited a royalty that was created when Normandy sold its 51% interest in Ity to COGEMA (later COMINOR.) Franco-Nevada has an approximate 1% NSR on overall mine production over 13 tonnes produced from the start of 2001 and an approximate 1.5% NSR on overall mine production over 21 tonnes from that same date. The royalty ceases once production reaches 35 tonnes. To the end of 2009, the mine had produced approximately 11.8 tonnes leaving about 1.2 tonnes (~38,000 oz) before reaching the first royalty threshold. La Mancha reported that in 2009 the mine (100% basis) produced 51,710 ounces and that reserves at the end of 2009 were 352,659 ounces of gold representing a six year mine life. La Mancha indicated that it is confident that identified resources should allow the mine to add to its current mine life. La Mancha estimated total mine production for 2010 of 44,000-52,000 ounces which indicates the royalty should become payable in late 2010.