O U R B U S I N E S S M O D E L 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 Royalties are often 1-2% of the value of future production from a resource property and are typically created as exploration properties change hands. Often royalties are a percentage of the net value a mine operator receives for its product when it is processed at a smelter, hence the term “net smelter return” or “NSR” royalty. Other forms of royalties include profit-related royalties or “NPI” royalties but these are not a major part of Franco-Nevada’s portfolio. Royalty rights are often registered on the title of the property or mineral rights. Registered royalties have strong tenure and, in jurisdictions where recognized, will generally survive an operating company reorganization. Streams Streams have become a mainstream source of capital to mining companies most often to fund the construction of new projects. In particular, streaming precious metals by-product from large copper projects provides a very attractive cost of capital to project developers. Streams are metal purchase agreements where the streamer purchases all or a portion of the gold, silver or other products from a mine in exchange for an upfront payment and an additional payment on each delivery. While streams have similar exploration and price optionality to royalties, they differ from royalties in many respects including the ongoing cash payment required to purchase the physical metal. B U S I N E S S M O D E L A D V A N T A G E S 1 Cobre Panama currently on preservation and safe management Optionality Potential for exploration success on ~70,500 km2 (1) Focus on Growth Management not occupied with operational decisions Free Cash Flow Business Not exposed to capital calls Diversified Portfolio Non-operating business is more scalable High Margins & Low Overhead Strong cash generation throughout the commodity cycle Limited Cost Inflations Streams/NSRs not exposed to cost inflation UPSIDE POTENTIAL LOW RISK TSX / NYSE: FNV 6 ★ Franco-Nevada Corporation Overview Overview