The “Midale Unit” was discovered in 1953 and the Midale Unit was formed in 1964 for the purpose of implementing a pressure maintenance scheme by water injection. The Midale Unit is located in southeast Saskatchewan approximately 40 kilometers southeast of the city of Weyburn and encompasses 13,760 gross (net 353) acres with 273 gross (net 7.5) producing wells. Franco-Nevada holds a 1.59% working interest and a 1.18% gross override royalty interest in the Midale Unit. Apache is the operator.

For 2010, revenue received by Franco-Nevada from the Midale Unit was $3,629,000 and production net to Franco-Nevada was 142 Boe/d. Franco-Nevada takes product-in-kind for the working interest portion of this production and markets it through a third party marketer. As of December 31, 2010, Franco-Nevada’s proved reserves for the Midale Unit were 743 Mboe.