North America Permian Basin Location: Texas, United States Operator: Pioneer Natural Resources, Occidental Petroleum, Coterra Energy, others Energy: Oil Royalty: Various Royalty Rates 2022 2021 2020 1 Revenue to Franco-Nevada ($ million) $ 52.6 $ 34.9 $ 18.5 2 Production (Mboe) 780 708 737 3 Commodity Split (%) Oil 77% 78% 88% Gas 12% 11% 5% NGL 11% 11% 7% 1 Revenue refers only to payments made to Franco-Nevada 2 Net to the Oil and Gas Interests 3 Percentage based on production revenue from each commodity Drill rig in the Permian Basin, Texas 4 Inventory locations are based on third-party reserve estimates for the Proved, Probable, Possible, and Contingent resource categories for currently producing formations geologically, and is attractive to operators due to the stacked pay potential and premier economics. The current focus of operators in the Franco-Nevada has exposure to the Permian Basin in West Delaware Basin are the Wolfcamp and Bonespring horizons. The royalties Texas, through both the Midland and Delaware sub-basins. consist of approximately 94% mineral title rights, along with some GORR interests, which apply to approximately 676 acres (net to Franco- Both of these basins are considered among the most economic and Nevada). There are various operators across the acreage who continue to prolific shale oil plays in the U.S. and have been the key drivers behind direct capital toward the Delaware Basin, which will result in continued U.S. oil production growth over the last decade. The Permian is the most development of our assets over time. active shale play in North America. Franco-Nevada’s Permian assets generated $52.6 million in revenue in Effective in the first quarter of 2017, Franco-Nevada purchased a package 2022 representing a 51% increase from 2021. This was primarily driven of royalties in the Midland Basin for approximately $115 million. The by higher realized oil prices coupled with an increase in wells completed Midland Basin comprises the eastern portion of the broader Permian on our land base. During the year, 777 wells were completed on royalty Basin. The royalty acreage is very diversified, covering a significant lands, which is an increase from the 585 wells completed in 2021. 4 portion of the core of the Midland basin and providing exposure to The land base has a potential inventory of 6,307 future well locations multiple benches in the Wolfcamp and Spraberry formations. The royalties implying approximately eight years of additional drilling (based on the consist of approximately 97% mineral title rights, along with some GORR prior year drilling rate), followed by many years of production over the life interests, which apply to approximately 1,036 acres (net to Franco- of the wells. The inventory estimate relates to currently active formations, Nevada). The acreage is host to numerous operators, however, Pioneer however the Permian has additional stacked formations that may be Natural Resources (“Pioneer”) is the operator for the largest portion of exploited in the future. royalty acreage and is one of the largest companies operating in the Royalties provide exposure to Midland basin. Pioneer is focused solely on its Midland Basin acreage and achieves some of the best well results in the area. and Delaware Basins In the third quarter of 2017, Franco-Nevada acquired a package of Permian represents one of the most active and royalties in the Delaware Basin for approximately $101 million. The M Delaware Basin comprises the western portion of the broader Permian economic plays in North America iner Basin, which is located in West Texas and southeast New Mexico. Sitting to Exposure to upside through multiple al R the west of the Midland Basin, the Delaware Basin shares many similarities formations at depth esour c es and M Permian Basin Delaware Basin Midland Basin Northwest Shelf San Simon Channel FNV Royalty Acreage iner WSON BORDEN al R A N D 0 16 0 km 10 miles LEA ARD eser ARTIN HOW M Y EDD ANDREWS v Net Royalty Acres Central Basin es by County Platform 3% Eddy 1.% Lea o xic 3% Culberson New Me OCK 1% Other GLASSC 3% Ward xas e T 4% Upton OR 23% Reeves OVING ECT 5% Reagan L WINKLER MIDLAND 7% Loving CULBERSON 8% Howard 16% Martin 11% Midland 15% Glasscock ARD W CRANE A ON dditional I UPT GAN REA IRION New Mexico REEVES Midland Basin Delaware Texas Basin CROCKETT nf Permian orma OS VIS PEC A Basin JEFF D tion TSX / NYSE: FNV Franco-Nevada Corporation 109