Additional Information “NPR” means Net Proceeds Royalties: which is a “Qualified Person” for the purposes of NI 43-101, is an “tpa” means tonnes per annum. royalty on the profits after deduction of expenses. individual who is an engineer or geoscientist with at “vein” means an epigenetic mineral filling of a fault or “NRI” means Net Royalty Interest: paid net of operating least five years of experience in mineral exploration, other fracture, in tabular or sheet-like form, often with and capital costs (similar to an NPI). mine development or operation or mineral project associated replacement of the host rock; a mineral assessment, or any combination of these; and has deposit of this form and origin. “NSR” means Net Smelter Return: Which is the experience relevant to the subject matter of the mineral proceeds returned from the smelter and/or refinery project; and who is a member in good standing of a “waste” is rock which is not ore and usually has to be to the mine owner less certain costs. recognized self-regulatory organization of engineers or removed during the normal course of mining to get at “Oil and Gas Interests” means the royalty interests, geoscientists. the ore. working interests and oil and natural as mineral rights “Reserves” means collectively, in respect of Mineral “WI” means Working Interest. Holders of working in oil and natural gas properties owned by Franco- Reserves, Probable Reserves and Proven Reserves. interests have an ownership position in the property Nevada. “Resources” means a concentration or occurrence of and operation and hence are liable for cash calls on “open pit” is a surface working open to daylight, such diamonds, natural solid inorganic material, or natural their share of capital, operating and environmental as a quarry. solid fossilized organic material including base and costs usually in proportion to their ownership precious metals, coal, and industrial minerals in or on percentage. Working interests are not considered to be “ore” means a natural aggregate of one or more the earth’s crust in such form and quantity and of such royalties because of their ongoing funding requirements minerals which may be mined and sold at a profit, or a grade or quality that it has reasonable prospects for although, for profitable operations, they can be from which some part may be profitably separated. economic extraction. economically similar in their calculations to NPIs. “ORR” means Overriding Royalty: A percentage share “Revenue-based Royalties” are based on the value of “Zn” means the chemical symbol for the element zinc. of production, which is free of all costs of drilling and the production or net proceeds received by the operator producing, and is created by the lessee or working with defined deductions as specified by the royalty interest owner and paid by the lessee or working contract. Some forms of revenue-based royalties in the interest owner. mining and energy industries are: “oz” represents ounce (troy). 1 troy ounce = 1.097 “NSR” Net Smelter Return Royalty avoirdupois ounce. “oz/ton” represents troy ounces er short ton. “ORR” Overriding Royalty “P&P” means Proven and Probable. “GR” Gross Royalty “Pb” means the chemical symbol for the element lead. “FH” Freehold or Lessor Royalty “Pd” means the chemical symbol for the element “run-of-mine ore” means mined ore which has not been palladium. subjected to any pre-treatment, such as washing, sorting or crushing prior to metallurgical processing. “PGM” means the platinum group of metals, including “SAMREC” means the South African Code for but not limited to Palladium, Platinum, Rhodium, Reporting of Mineral Resources and Mineral Reserves Osmium, and Rhenium. prepared by the South African Mineral Committee under “porphyry” is an igneous rock of any composition that the auspices of the South African Institute of Mining contains conspicuous, large mineral grains and Metallurgy, as amended. (phenocrysts) in a fine-grained matrix. “smelting” is an intermediate stage metallurgical “preliminary feasibility study” or “PFS” means a process in which metal is separated from impurities by comprehensive study of the viability of a mineral project using thermal or chemical separation techniques. that has advanced to a stage where the mining method, “stope” means an excavation in an underground mine in the case of underground mining, or the pit configuration, from which ore is being or has been extracted. in the case of an open pit, has been established and an effective method of mineral processing has been “Streams” are metal purchase agreements that allow determined, and includes a financial analysis based the holder of the agreement to purchase all or a portion on reasonable assumptions of technical, engineering, of the gold, silver or other products from a mine in legal, operating, economic, social, and environmental exchange for an upfront payment and an additional factors and the evaluation of other relevant factors payment on each delivery. Streams are not royalties which are sufficient for a qualified person, acting because they are not an interest in land and there is an reasonably, to determine if all or part of the mineral ongoing cash payment required to purchase the resource may be classified as a mineral reserve. physical metal. “Probable Reserve” in respect of Mineral Reserves has “strike” means the trend or direction of the the meaning ascribed to the term “Probable Mineral intersection of a dipping a layer of rock, fault, vein or Reserve” pursuant to CIM Definitions. other geologic feature with a horizontal surface. “Proven Reserve” in respect of Mineral Reserves has “tailings” means material rejected after recoverable the meaning ascribed to the term “Proven Mineral valuable minerals have been extracted from the ore or Reserve” pursuant to CIM Definitions. concentrate. “Pt” means the chemical symbol for the element “ton” is 2,000 pounds. Syn: short ton. platinum. “tonne” means 1,000 kilograms. TSX / NYSE: FNV Franco-Nevada Corporation ★ 137