Franco-Nevada has a 2% NSR that covers 78 sq km of the southern end of Newmont’s Ahafo project in which the Subika open pit mine and underground development is the primary focus. The royalty is payable once 1.2 million ounces have been produced from the royalty area. As of December 31, 2010, 942,559 ounces have been recovered from the royalty property since production began in 2006. Since the start of production at Ahafo, approximately 50% of total production has been from the royalty ground.

On February 24, 2011, Newmont gave publicly announced guidance for 2011 production at Ahafo of between 550,000 and 590,000 ounces.

In 2009, Newmont announced that it was evaluating a potential expansion of the Subika operations by deepening the existing open pit and developing a new underground mine. On February 24, 2011, Newmont reported the addition of 1.1 million ounces of attributable open pit reserves at Subika, based on the completion of some 28 in-fill holes aimed at evaluating underground and open pit mineral extensions. Concurrently, Newmont reported the exploration drift initiated in 2010 has advanced some 2,635 meters, vent raises are completed, and an initial test-stoping program is anticipated in early 2011. Completion of the underground pre-feasibility study is anticipated in the second quarter of 2011.

Newmont has publicly announced projected expenditures for the Subika expansion to be between $175-200 million in 2011. Franco-Nevada’s Ahafo royalty covers most if not all of the Subika open pit as well as the Subika expansion project area.