Additional Information “NPR” means Net Proceeds Royalties: which is a royalty on “Pt” means the chemical symbol for the element platinum. “ton” is 2,000 pounds. Syn: short ton. the profits after deduction of expenses. “Qualified Person” for the purposes of NI 43-101, is an “tonne” means 1,000 kilograms. “NRI” means Net Royalty Interest: paid net of operating individual who is an engineer or geoscientist with at least “tpa” means tonnes per annum. and capital costs (similar to an NPI). five years of experience in mineral exploration, mine “NSR” means Net Smelter Return: Which is the proceeds development or operation or mineral project assessment, “vein” means an epigenetic mineral filling of a fault or returned from the smelter and/or refinery to the mine or any combination of these; and has experience relevant other fracture, in tabular or sheet-like form, often with owner less certain costs. to the subject matter of the mineral project; and who is a associated replacement of the host rock; a mineral deposit member in good standing of a recognized self-regulatory of this form and origin. “Oil and Gas Interests” means the royalty interests, organization of engineers or geoscientists. “waste” is rock which is not ore and usually has to be working interests and oil and natural as mineral rights in “Reserves” means collectively, in respect of Mineral removed during the normal course of mining to get at oil and natural gas properties owned by Franco-Nevada. Reserves, Probable Reserves and Proven Reserves. the ore. “open pit” is a surface working open to daylight, such as “Resources” means a concentration or occurrence of “WI” means Working Interest. Holders of working interests a quarry. diamonds, natural solid inorganic material, or natural have an ownership position in the property and operation “ore” means a natural aggregate of one or more minerals solid fossilized organic material including base and and hence are liable for cash calls on their share of capital, which may be mined and sold at a profit, or from which precious metals, coal, and industrial minerals in or on operating and environmental costs usually in proportion some part may be profitably separated. the earth’s crust in such form and quantity and of such to their ownership percentage. Working interests are “ORR” means Overriding Royalty: A percentage share a grade or quality that it has reasonable prospects for not considered to be royalties because of their ongoing of production, which is free of all costs of drilling and economic extraction. funding requirements although, for profitable operations, producing, and is created by the lessee or working interest “Revenue-based Royalties” are based on the value of the they can be economically similar in their calculations owner and paid by the lessee or working interest owner. production or net proceeds received by the operator with to NPIs. “oz” represents ounce (troy). 1 troy ounce = 1.097 defined deductions as specified by the royalty contract. “Zn” means the chemical symbol for the element zinc. avoirdupois ounce. Some forms of revenue-based royalties in the mining and energy industries are: “oz/ton” represents troy ounces er short ton. “NSR” Net Smelter Return Royalty “P&P” means Proven and Probable. “ORR” Overriding Royalty “Pb” means the chemical symbol for the element lead. “GR” Gross Royalty “Pd” means the chemical symbol for the element “FH” Freehold or Lessor Royalty palladium. “PFS” means preliminary feasibility study. “run-of-mine ore” means mined ore which has not been subjected to any pre-treatment, such as washing, sorting “PGM” means the platinum group of metals, including but or crushing prior to metallurgical processing. not limited to Palladium, Platinum, Rhodium, Osmium, “SAMREC” means the South African Code for Reporting and Rhenium. of Mineral Resources and Mineral Reserves prepared by “porphyry” is an igneous rock of any composition that the South African Mineral Committee under the auspices contains conspicuous, large mineral grains (phenocrysts) of the South African Institute of Mining and Metallurgy, in a fine-grained matrix. as amended. “preliminary feasibility study” means a comprehensive “smelting” is an intermediate stage metallurgical process study of the viability of a mineral project that has in which metal is separated from impurities by using advanced to a stage where the mining method, in the case thermal or chemical separation techniques. of underground mining, or the pit configuration, in the “stope” means an excavation in an underground mine case of an open pit, has been established and an effective from which ore is being or has been extracted. method of mineral processing has been determined, and includes a financial analysis based on reasonable “Streams” are metal purchase agreements that allow the assumptions of technical, engineering, legal, operating, holder of the agreement to purchase all or a portion of the economic, social, and environmental factors and the gold, silver or other products from a mine in exchange for evaluation of other relevant factors which are sufficient an upfront payment and an additional payment on each for a qualified person, acting reasonably, to determine if delivery. Streams are not royalties because they are not all or part of the mineral resource may be classified as a an interest in land and there is an ongoing cash payment mineral reserve. required to purchase the physical metal. “Probable Reserve” in respect of Mineral Reserves has “strike” means the trend or direction of the intersection the meaning ascribed to the term “Probable Mineral of a dipping a layer of rock, fault, vein or other geologic Reserve” pursuant to CIM Definitions. feature with a horizontal surface. “Proven Reserve” in respect of Mineral Reserves has the “tailings” means material rejected after recoverable meaning ascribed to the term “Proven Mineral Reserve” valuable minerals have been extracted from the ore or pursuant to CIM Definitions. concentrate. TSX / NYSE: FNV Franco-Nevada Corporation 133