Overview Royalty Ounces Why We Measure “Royalty Ounces” 4. A n asset producing silver, PGM or base/bulk metal: Franco-Nevada’s mining properties that have reported Mineral Resources The number of attributable silver, platinum or palladium ounces, and Mineral Reserves are tabulated in the Mineral Resources and Mineral and attributable base/bulk metals pounds/tonnes are converted Reserves appendix of this Asset Handbook. Unless otherwise noted in the into Royalty Ounces. This year’s pricing assumptions for conversion Royalty Ounce calculation for each asset, the figures are tabulated based include: $1,800 per ounce gold, $21.00 per ounce silver, $900 per on the publicly disclosed reports of each operator for each property on a ounce platinum, $1,500 per ounce palladium, $4.00 per pound copper, 100% basis. However, the tabulation does not provide a specific measure $11.00 per pound nickel, $1.22 per pound ferrochrome and $120/t Fe for Franco-Nevada’s interest in such Mineral Resources and Mineral 62% CFR China for our calculations. For copper, nickel, ferrochrome Reserves for the following reasons: and iron ore Royalty Ounce calculations, we do reflect deductions for processing and refining as they are more material compared to a • Royalty and stream interests have different economics than an operator typical gold NSR asset. has for its stated Mineral Resources and Mineral Reserves. In addition, In the Assets section of this Asset Handbook, we provide details for the economics differ between NSR, NPI and stream interests P each asset that include summary figures for the Mineral Resources (M&I r Resources inclusive of P&P Reserves), Mineral Reserves (P&P Reserves) ecious M • Some assets do not cover the entire property associated with the and Inferred Mineral Resources (Inferred Resources). We also provide the operator’s publicly reported figures related M&I Royalty Ounces, P&P Royalty Ounces and Inferred Royalty etals To account for the above, we calculate “Royalty Ounces” to estimate the Ounces for each of those assets and the key guidance and assumptions value attributable to Franco-Nevada due to our economic interest in the that were required to derive those Royalty Ounces. Mineral Resources and Mineral Reserves of our portfolio. The value of a Readers are cautioned that the Royalty Ounces are prepared by the Royalty Ounce is normalized to that of a gold NSR ounce. management of Franco-Nevada and have not been reviewed or endorsed How We Estimate “Royalty Ounces” by the operators of the projects. A traditional NSR royalty on a gold mining property provides Franco- Nevada with a simple percentage of the revenue or gold in-kind Example Economics of a Royalty (NSR or NPI) produced from that property. For example, if we have a 2% NSR royalty on versus a Stream a property, we calculate 2% of the stated Mineral Resources and Mineral D Reserves as our “Royalty Ounces”. Note we do not make adjustments for iv recoveries and refining fees for gold NSRs as they are typically minor. The example below compares the relative value per ounce to Franco- ersified A Nevada of an NSR, a stream or an NPI or WI. Assume for one ounce of When calculating Royalty Ounces for a property our objective is that they 1 gold, a sales price of $1,800, a “stream cost” of $400 per ounce and that 2 should be comparable to an attributable gold NSR Royalty Ounce. To the “all-in sustaining cost” of the mine is $1,222 per ounce. ssets achieve comparable Royalty Ounce figures, we make adjustments in the following circumstances: Developed 1 1. T he royalty or stream does not cover all the Mineral Resources or NSR Stream NPI or WI Mineral Reserves on a property: One ounce sold at $ 1,800 $ 1,800 $ 1,800 We provide our best estimate of the percentage of Mineral Resources 1 1 Applicable cost $ – $ 400 $ 1,222 and Mineral Reserves that are attributable to our interest. Margin for calculation $ 1,800 $ 1,400 $ 578 M 2. A str eam interest with an associated ongoing cost per ounce: NSR, Stream or NPI % 4% 4% 4% iner The number of attributable stream ounces are factored to make them Revenue per ounce to FNV $ 72 $ 56 $ 23 al R economically equivalent to a NSR ounce. F or example as illustrated on this page, at an $1,800 per ounce gold Value relative to an NSR 1.0x 0.78x 0.32x esour 1 Franco-Nevada’s streams have various ongoing costs. In some cases, it is $400 per ounce plus a 1% c price and a $400 cost per ounce, the stream ounces are factored annual increment, in other cases it is 20% of the spot price of gold. For each stream, Franco-Nevada es and M by 77.8%. The factor depends on cost per ounce or the percentage indicates the detail for ongoing costs. margin written in the agreement. 2 For applicable costs for a developed NPI or WI, Franco-Nevada is, for illustrative purposes, assuming Barrick Gold Corporation’s (“Barrick”) 2022 all-in sustaining cash cost measure, as Barrick is the iner operator of two assets at which Franco-Nevada has NPI interests. 3. A NPI r oyalty: al R A NPI is subject to the operating and capital costs specific to each eser asset. We generate our own internal mine life projections for each v asset to determine a reasonable estimate of the economic equivalent es of a gold NSR Royalty Ounce using an $1,800 gold price assumption. A dditional I nf orma tion TSX / NYSE: FNV Franco-Nevada Corporation 15