The Robinson open pit mining complex is located near Ely, Nevada. Copper, gold and molybdenum are recovered in concentrates that are transported offsite for smelting. The mine is operated by Quadra FNX. Franco-Nevada has three royalty agreements covering the Robinson mine. Under an agreement purchased from Nerco Exploration Company (“Nerco”), Franco-Nevada receives a 0.225% NSR on all base metal and associated precious metal production. Under a gold agreement purchased from Alta Gold Co. (“Alta”), Franco-Nevada receives a 10% NSR on 51% of the gold production from the property in excess of 60,000 ounces of gold per year. Under a copper agreement, also purchased from Alta, Franco-Nevada is entitled to receive a price participation royalty on a portion of the copper production from the property as described subsequently in “Other Minerals Assets – Producing Other Minerals Assets – Robinson (Copper), Nevada”.

In 2010, gold production levels exceeded the 60,000 ounce threshold to trigger payment under the Alta agreement. Quadra FNX forecasts 2011 production to be between 45,000-50,000 ounces as a result of a production shift from the Veteran Pit to the lower grade Ruth Pit. However, an early 2011 localised pit wall failure may trigger a change to the mining schedule. Quadra FNX is evaluating alternatives, including incorporating ores from its historically mined Liberty pit, which Quadra FNX expects will add medium-term mining flexibility.