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Red Lake (Phoenix) (Au)

Location: Ontario, Canada
Operator: Rubicon Minerals Corporation
Royalty: NSR: 2%

Franco-Nevada has a 2% NSR (subject to a buy-back of 0.5%) on the water claims (which cover the majority of Mineral Resources) of the Phoenix gold project in Red Lake, Ontario operated by Rubicon Minerals Corporation (“Rubicon”). The Phoenix project is located 10 km north of Goldcorp’s Red Lake mine. In November 2015, Rubicon announced a temporary shutdown of underground activities to enhance its geologic model and develop an implementation plan as the gold mineralization was more geologically complex than anticipated. This included a material reduction to the contained gold ounces estimated. Rubicon has since reorganized its debts and has put in place a new management team. Rubicon completed a positive bulk sample reconciliation in 2018 which compared favorably with the updated block model estimates from its 2018 updated Mineral Resource estimate. The updated Mineral Resource update saw a 113% increase to M&I Mineral Resources (281,000 ounces from 1.4 Mt @ 6.4 g/t) while the Inferred Mineral Resources increased by 80% to 749,000 ounces (3.9 Mt @ 6.0 g/t). Rubicon expects to provide a further update to its Mineral Resource estimate during the first half of 2019 which includes 20,000 meters of infill and step-out drilling as well as deliver a new preliminary economic assessment for the property in mid-to-late 2019.