Franco Nevada

Royalty:	2% NSR
2009 Revenue:	begins after 600,000 ounces produced
Operator:	Red Back Mining Inc.

Red Back Mining Inc. (“Red Back”), through its subsidiary Tasiast Mauritanie Limited SA, owns and operates the Tasiast Gold Mine in Mauritania. The Tasiast property covers a 70 km strike length of the Archean Aoueouat greenstone belt which is largely underexplored. Based on Red Back’s public statements, all of the current resources occur within an 8 km strike length portion of this larger trend and they remain open along strike, within multiple stratigraphic horizons and at depth. Red Back intends to progressively increase the scope of exploration by conducting near-mine infill and step-out drilling, as well as evaluation of outlying prospects within the 312 km² mining license and exploration within the exploration licenses that surround the mining license.

Franco-Nevada’s royalty, a 2% NSR after 600,000 oz of production, was originally granted on three permit areas totalling 16,334 km², the Tasiast, Ahmeyim-Tijirit and Karet areas, as shown on the schematic inset map below. Franco-Nevada did not receive any revenue from this royalty in 2009 and does not expect to receive any royalty revenue in 2010. As of December 31, 2009, Tasiast life of mine production to date totals 313,502 ounces.

On January 15, 2010, Red Back announced it achieved record gold production during the second year of operation at the Tasiast Gold Mine with production of 158,660 oz of gold using both carbon-in-leach and oxide dump leach facilities. Red Back’s forecast for production in 2010 is between 245,000 and 265,000 ounces at a cash operating cost of between $325 -$350/oz. Red Back reports test work has been conducted and a feasibility review is ongoing which could lead to reserve expansion of and an additional treatment option for low-grade sulfidic mineralization utilizing an initial high pressure grinding rolls crushing stage followed by heap leach processing.

On March 1, 2010, Red Back announced that Proven and Probable reserves had increased 64% to 5.03 million ounces. This followed an earlier release by Red Back that, as of December 31, 2009, the Tasiast Measured, Indicated and Inferred resources, which include reserves, stood at 7.81 million ounces. Red Back indicates that the additions were primarily the result of a drill program targeting the 1.2 km long Greenschist zone in the West Branch area, which is situated at the southern end of the existing mine corridor. In addition to being open in several directions, Red Back reported that this new mineralization occurs over 50-100 meter widths in fold axes within the banded-iron and felsic horizons that host the bulk of the current production. With most of the drilling to date focused on the existing strike portion of the greenstone belt and the mineralization occurring in the newly discovered Greenshist zone open on strike and to depth, Red Back considers the property to be very prospective. In the first half of 2010, Red Back has announced a $22 million exploration budget focused on expanding the new Greenschist horizon. Red Back has stated they expect to announce an updated reserve in mid-2010, following completion of the first half 2010 drill campaign and the HPGR sulfidic ore heap leach feasibility study.