Overview OUR BUSINESS MODEL As a gold-focused royalty and streaming company, we do not operate mines, develop projects or conduct exploration. We have a unique business that is exposed to both the tremendous resource upside potential, or “optionality” of royalties on gold mines, development projects and exploration properties and the low risk, long life cash flows of precious metals streams on large copper mines. Both royalties and streams provide exposure to commodity prices, increases in production and future discoveries on the property. After our initial investment has been made, neither interest is subject to cash calls to fund exploration, development, capital, environmental or closure costs and so they are lower risk than an operating interest. Royalties Streams Royalties are often 1-2% of the value of future production from a Streams have become a mainstream source of capital to mining resource property and are typically created as exploration properties companies most often to fund the construction of new projects. Precious Metals change hands. Often royalties are a percentage of the net value a mine In particular, streaming precious metals by-product from large copper operator receives for its product when it is processed at a smelter, projects provides a very attractive cost of capital to project developers. hence the term “net smelter return” or “NSR” royalty. Other forms of Streams are metal purchase agreements where the streamer purchases royalties include profit-related royalties or “NPI” royalties but these are all or a portion of the gold, silver or other products from a mine in not a major part of Franco-Nevada’s portfolio. Royalty rights are often exchange for an upfront payment and an additional payment on each registered on the title of the property or mineral rights. Registered delivery. While streams have similar exploration and price optionality royalties have strong tenure and, in jurisdictions where recognized, to royalties, they differ from royalties in many respects including the will generally survive an operating company reorganization. ongoing cash payment required to purchase the physical metal. BUSINESS MODEL ADVANTAGES Diver UPSIDE POTENTIAL LOW RISK sified Assets Optionality Diversi昀椀ed Portfolio 2 (1) Potential for exploration success on ~66,800 km Non-operating business is more scalable Focus on Growth High Margins & Low Overhead Management not occupied with operational decisions Strong cash generation throughout the commodity cycle Mineral Resources and Mineral Reser Free Cash Flow Business Limited Cost In昀氀ations Not exposed to capital calls Streams/NSRs not exposed to cost inflation ves Additional Inf or mation 1 Cobre Panama currently on preservation and safe management TSX / NYSE: FNV Franco-Nevada Corporation ★ 7