Overview DEAR STAKEHOLDERS Our objective is to build a diversified, top-line business that is a hedge We operate our business with a small team of 40 people and have kept against market volatility and is exposed to the exploration success overhead low while our asset base has grown substantially. Our success of the mining industry. This approach has resulted in a history of leading is a result of a highly capable team and the guidance of an experienced returns, but in late 2023 we were challenged by the unprecedented and engaged Board of Directors. They have a material stake in the production halt at Cobre Panama. Despite the hopefully temporary business and think like owners. production halt at this asset, our business remains robust. We finished the year with no debt and US$1.4B of cash. The balance of our business Geopolitical risks are an increasing challenge for the mining industry. continues to generate approximately US$800M in cash flow from We remain convinced our business model of maintaining a diversified operations each year. portfolio with a stronger balance sheet will prove to be the best strategy for shareholders. While the Cobre Panama production halt caused a greater than 20% decline in our share price, our top-line business model still generated Thank you for your ongoing trust and support. industry-leading revenue and cash flow for 2023. Our business is high Precious Metals margin and not impacted by industry cost inflation. In 2023, we generated David Harquail Paul Brink an 83% Adjusted EBITDA Margin1 1 and a 56% Adjusted Net Income Margin . Chair of the Board President & CEO In 2023, we acquired a number of royalty interests principally on gold mines April 10, 2024 and projects in Canada, Chile, Australia and the USA. A drop in U.S. natural gas prices also allowed us to add to our natural gas royalty interests. We allocate capital on behalf of our shareholders to operations that treat the environment and their host communities responsibly. We receive top-level ratings from the ESG rating agencies and, notably, are the top-ranked company in the Gold sector and in the broader Precious Metals sector by Sustainalytics in 2024. Our objective is to have a sustainable and progressive dividend that Diver is dependable despite commodity price volatility and asset-specific sified Assets disruptions. In January 2024, our Board increased our dividend for th the 17 consecutive year. Investors from our IPO are now achieving a 9.4% yield in US$ and a 12.9% yield in C$. In terms of growth, Franco-Nevada has organic growth from our existing assets and a strong treasury to facilitate acquisitions. There is also the potential for future contributions from Cobre Panama if operations resume. We expect GEOs from the balance of our business (excluding Cobre Panama) to increase from 498,447 GEOs sold in 2023 to between Mineral Resources and Mineral Reser 540,000 and 600,000 GEOs by 2028 from organic growth alone. Two-thirds of this growth is already under construction. Our portfolio of exploration and development stage royalties also provides resource optionality from the world’s most prospective resource trends. Paul Brink (President & CEO), David Harquail (Chair of the Board) At year-end, we had US$2.4B in available capital, including cash balances, and a committed unused credit facility. We passed on low return deals in the period following COVID-19 and are now fortunate to have a strong treasury in today’s capital-constrained world. ves We strongly prefer a solution providing for the resumption of operations at Cobre Panama with the support of the Panamanian people and the Government. The mine contributes 4-5% of Panamanian GDP, provides valued jobs to 7,000 direct employees, furnishes support to its local communities and has a strong environmental performance record. The operation has the potential to generate substantial benefits for Additional Inf Panama over several generations. or mation 1 Adjusted EBITDA Margin and Adjusted Net Income Margin are Non-GAAP Financial Measures. Refer to the “Non-GAAP Financial Measures” section starting on page 132 of this Asset Handbook TSX / NYSE: FNV Franco-Nevada Corporation ★ 5