Franco Nevada

Franco-Nevada is a gold focused royalty company with additional interests in platinum group metals, oil & gas and other assets. The majority of revenues are generated from a diversified portfolio of properties in the United States, Canada and Mexico. The portfolio includes over 300 royalties covering properties at various stages from operations to early stage exploration.  Royalties are mostly revenue-based but the portfolio also includes profit-based and stream-based royalties.  

Franco-Nevada’s assets are mostly mineral and oil & gas royalties but also include some working and equity interests, undeveloped properties, options to acquire royalties and other assets. The Mineral Royalties are further characterized by commodity as being in the Gold, PGM or Other Minerals categories and these in turn are further subdivided by their project status as being either, Operating, Advanced or Exploration royalties. A majority of the Mineral Royalties are characterized as being Gold and the majority of revenues are from gold operations. The Oil & Gas interests are located primarily in the Western Canadian sedimentary basin with a larger amount of revenue generated from conventional oil than from natural gas properties in 2009. The Oil & Gas interests also include mineral rights to approximately 100,000 gross acres of unproved land in Canada primarily related to oil and natural gas rights as well as working interests in Arctic gas resources.

Royalty Interests Tabulation at March 25, 2010

*184 undeveloped oil & gas interests not included in royalty counts

The above tabulations set forth certain information concerning the Corporation's assets. Franco-Nevada’s royalty interests are categorized by commodity and stage of development.  By commodity, royalties are either “Gold”, “PGM”, “Other Minerals” or “Oil & Gas”. The categories of Gold and PGM are together referred to as “Precious Metals”. The categories outside of Oil & Gas are collectively referred to as “Mineral Royalties”. For presentation purposes, “Gold” encompasses some silver assets and polymetallic exploration prospects. “PGM” encompasses the platinum group metals including palladium. “Other Minerals” includes base metals, iron ore, coal, industrial and miscellaneous minerals. By stage of development “Operating” royalties are those that are on projects that are presently operating or have recently generated revenue. “Advanced” are royalties on projects that in management’s view have a reasonable possibility of generating revenue to Franco-Nevada in the next five years and include properties under development, permitting, feasibility or advanced exploration. “Exploration” represents royalties on early stage exploration properties that are speculative and are expected to require more than five years to generate revenue, if ever, or are currently not active.

The number of royalties has been counted in different manners depending on the category. Royalties on an operating or advanced property are generally counted as a single royalty even if Franco-Nevada has multiple different royalties on the property, such as at the Goldstrike complex. However, royalties on operating properties that have significant co-products with separate royalty terms for each commodity have been counted twice, such as the Robinson royalties for gold and copper. Exploration royalties are simply counted by the number of royalty contracts and no effort has been made to consolidate royalties on the same property. Franco-Nevada’s wholly owned undeveloped oil & gas land positions and its working interests in Arctic gas resources are additional assets of the Corporation. However for the purposes of tabulating an indicative number of royalty assets, the undeveloped oil & gas land positions and certain working interests are not counted. More detail on Franco-Nevada’s oil & gas land positions can be found in the section on “Oil & Gas Interests”.As of March 23, 2010, Franco-Nevada estimates that it held 196 Mineral Royalties and 114 operating and advanced Oil & Gas Interests for a total of 310 royalties and another 184 undeveloped Oil & Gas Interests.

The description of our assets should be read with reference to the additional supporting detail and cautions regarding the use of forward-looking information outlined in our Annual Information Form ("AIF") available on http://www.sedar.com/ and our web site http://www.franco-nevada.com/. Forward-looking information is subject to change and risk, should not be relied on and should be considered along with the particular assumptions and risks underlying these statements as set out in detail in our AIF. As a royalty holder, we may have limited, if any, access to technical information on properties on which we hold interests. In other circumstances, we have information that is subject to confidentially provisions with the operators. For our public disclosure, we have relied principally on publicly available information disclosed by the owners and operators of our royalty properties as of March 23, 2010. Franco-Nevada's royalties often cover less than 100% and sometimes only a portion of the publicly reported reserves, resources and production of the property. Schematic representations of the properties are meant to be indicative of Franco-Nevada's understanding of what can be publicly disclosed of the positioning of its royalty properties relative to current operations and should not be treated as fully scaled or complete representations.