The “Weyburn Unit” is located approximately 129 kilometers southeast of Regina, Saskatchewan and encompasses approximately 53,360 gross (net 824) acres in which the Mississippian Midale beds are unitized. Franco-Nevada holds a 1.11% working interest and a 0.44% royalty interest in the Weyburn Unit. Production commenced from the Midale zone within the unitized area in 1955 under primary depletion (solution gas expansion). Formation of the Weyburn Unit occurred in 1963 for the purpose of implementing an inverted nine-spot waterflood pressure maintenance scheme on 80 acre well spacing. Cenovus is the operator.

Current gross production capability of the Weyburn Unit is approximately 30,000 Bbls/d at an average water cut of 87.4%. Cumulative oil production of the Weyburn Unit as of December 31, 2010 was estimated to be 443 MMbbls, or 31.6% of the original oil in place of 1,402 MMbbls recognized by GLJ. Current production is from 646 gross (net 10.0) wells. Produced oil within the Weyburn Unit averages 28 to 31 degrees API and contains approximately 2.0% sulphur.

For 2010, revenue received by Franco-Nevada from the Weyburn Unit was $10,368,000 and production net to Franco-Nevada was 409 Bbls/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 Weyburn Unit were 2,325 Mbbls.