Franco Nevada

Franco-Nevada’s Subika royalty is a 2% NSR that covers 78 sq km of the southern end of Newmont’s Ahafo project covering all or part of the Subika, Awonsu and Amoma deposits. The royalty is payable once 1.2 million ounces have been produced from the royalty area. As of December 31, 2009, 887,000 ounces had been recovered from the royalty property since production began in 2006 and the royalty is expected to become payable in 2012. Since the start of production at Ahafo, greater than 50% of total production has been from the royalty ground.

On February 25, 2010, Newmont reported reserves and resources as of December 31, 2009 for the Ahafo project with Proven and Probable Reserves of 9.38 million ounces, and Measured and Indicated Resources of 7.6 million ounces, a portion of which would be subject to Franco-Nevada’s royalty. Mineralized material is reported exclusive of reserves. Newmont also announced equity sales at Ahafo for the year were 546,000 ounces at costs applicable to sales of $444 per ounce and forecast 2010 gold production at Ahafo to decline to between 460,000 and 500,000 ounces due to mining additional waste material and lower ore grades.

In their 2009 Fourth Quarter and Earnings conference call, Newmont announced that the Subika Expansion project is being evaluated for a potential expansion of the current Subika operation by a deepening the existing open pit and through the possible development of a new underground mine. Newmont reported that this expansion study, along with the existing reserve, has the potential to develop 7-9 million ounces at Subika and stated they are currently advancing an exploration decline to define and evaluate the new resource and create a platform for additional infill and deep exploration drilling. Newmont announced expenditures for the Subika expansion are projected to be between US$40-60 million in 2010. Franco-Nevada’s Ahafo royalty covers most if not all of the Subika open pit as well as the Subika expansion project area.