“ Oil and Gas Interests ” means the royalty interests, working interests and oil and natural as mineral rights in oil and natural gas properties owned by Franco- Nevada. “ open pit ” is a surface working open to daylight, such as a quarry. “ ore ” means a natural aggregate of one or more minerals which may be mined and sold at a profit, or from which some part may be profitably separated. “ ORR ” means Overriding Royalty: A percentage share of production, which is free of all costs of drilling and producing, and is created by the lessee or working interest owner and paid by the lessee or working interest owner. “ oz ” represents ounce (troy). 1 troy ounce = 1.097 avoirdupois ounce. “ oz/ton ” represents troy ounces per short ton. “ P&P ” means Proven and Probable. “ Pb ” means the chemical symbol for the element lead. “ Pd ” means the chemical symbol for the element palladium. “ PGM ” means the platinum group of metals, including but not limited to Palladium, Platinum, Rhodium, Osmium, and Rhenium. “ porphyry ” is an igneous rock of any composition that contains conspicuous, large mineral grains (phenocrysts) in a fine-grained matrix. “ ppm ” means parts per million. “ preliminary feasibility study” or “PFS” means a comprehensive study of the viability of a mineral project that has advanced to a stage where the mining method, in the case of underground mining, or the pit configuration, in the case of an open pit, has been established and an effective method of mineral processing has been determined, and includes a financial analysis based on reasonable assumptions of technical, engineering, legal, operating, economic, social, and environmental factors and the evaluation of other relevant factors which are sufficient for a qualified person, acting reasonably, to determine if all or part of the mineral resource may be classified as a mineral reserve. “ Probable Reserve ” in respect of Mineral Reserves has the meaning ascribed to the term “ Probable Mineral Reserve ” pursuant to CIM Definitions. “ Proven Reserve ” in respect of Mineral Reserves has the meaning ascribed to the term “ Proven Mineral Reserve ” pursuant to CIM Definitions. “ Pt ” means the chemical symbol for the element platinum. “ Qualified Person ” for the purposes of NI 43-101, is an individual who is an engineer or geoscientist with at least five years of experience in mineral exploration, mine development or operation or mineral project assessment, or any combination of these; and has experience relevant to the subject matter of the mineral project; and who is a member in good standing of a recognized self-regulatory organization of engineers or geoscientists. “ WI ” means Working Interest. Holders of working interests have an ownership position in the property and operation and hence are liable for cash calls on their share of capital, operating and environmental costs usually in proportion to their ownership percentage. Working interests are not considered to be royalties because of their ongoing funding requirements although, for profitable operations, they can be economically similar in their calculations to NPIs. “ Zn ” means the chemical symbol for the element zinc. “ Reserves ” means collectively, in respect of Mineral Reserves, Probable Reserves and Proven Reserves. “ Resources ” means a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal, and industrial minerals in or on the earth’s crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. “ Revenue-based Royalties ” are based on the value of the production or net proceeds received by the operator with defined deductions as specified by the royalty contract. Some forms of revenue-based royalties in the mining and energy industries are: “NSR” Net Smelter Return Royalty; “ORR” Overriding Royalty; “GR” Gross Royalty; and “FH” Freehold or Lessor Royalty. “ run-of-mine ore ” means mined ore which has not been subjected to any pre-treatment, such as washing, sorting or crushing prior to metallurgical processing. “ SAMREC ” means the South African Code for Reporting of Mineral Resources and Mineral Reserves prepared by the South African Mineral Committee under the auspices of the South African Institute of Mining and Metallurgy, as amended. “ smelting ” is an intermediate stage metallurgical process in which metal is separated from impurities by using thermal or chemical separation techniques. “ stope ” means an excavation in an underground mine from which ore is being or has been extracted. “ Streams ” are metal purchase agreements that allow the holder of the agreement to purchase 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. Streams are not royalties because they are not an interest in land and there is an ongoing cash payment required to purchase the physical metal. “ strike ” means the trend or direction of the intersection of a dipping a layer of rock, fault, vein or other geologic feature with a horizontal surface. “ tailings ” means material rejected after recoverable valuable minerals have been extracted from the ore or concentrate. “ ton ” is 2,000 pounds. Syn: short ton. “ tonne ” means 1,000 kilograms. “ tpa ” means tonnes per annum. “ tpd ” means tonnes per day. “ vein ” means an epigenetic mineral filling of a fault or other fracture, in tabular or sheet-like form, often with associated replacement of the host rock; a mineral deposit of this form and origin. “ waste ” is rock which is not ore and usually has to be removed during the normal course of mining to get at the ore. G L O S S A R Y “ A$ ” means Australian dollars. “ Adjusted EBITDA ” and “ Adjusted EBITDA per share ” are non-IFRS measures, which exclude the following from net income and earnings per share: income tax expense/recovery; finance expenses and finance income; depletion and depreciation; non-cash costs of sales; impairment charges related to royalty, stream and working interests and investments; gains/losses on the sale of royalty, stream and working interests and investments; foreign exchange gains/losses and other income/expenses; and unusual non-recurring items. For additional information and a reconciliation of these measures to various IFRS measures, refer to the Company’s MD&A. “ Adjusted Net Income ” and “ Adjusted Net Income per share ” are non-IFRS financial measures, which exclude the following from net income and earnings per share: impairment charges related to royalty, stream and working interests and investments; gains/losses on the sale of royalty, stream and working interests and investments; foreign exchange gains/losses and other income/expenses; unusual non-recurring items; and the impact of income taxes on these items. For additional information and a reconciliation of these measures to various IFRS measures, refer to the Company’s MD&A. “ Ag ” means the chemical symbol for the element silver. “ AMR ” means Advanced Minimum Royalty and is rent paid to the royalty holder prior to the payment of royalties on production. Once production begins, the AMR payments are then credited in full against stream of production royalty payments. “ AOI ” means area of interest. “ Au ” means the chemical symbol for the element gold. “ bbl ” means barrel. “ Bbls/d ” means barrels per day. “ Bcf ” means billion cubic feet. “ Boe ” means barrels of oil equivalent. “ Boe/d ” means barrels of oil equivalent per day. “ CAGR ” means Compounded Annual Growth Rate. “ CIM ” means the Canadian Institute of Mining, Metallurgy and Petroleum. “ CIM Definitions ” means CIM Definition Standards for Mineral Resources and Mineral Reserves and CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines. “ concentrate ” is the product of physical concentration process, such as flotation or gravity concentration, which involves separating ore minerals from unwanted waste rock. Concentrates require subsequent processing (such as smelting or leaching) to break down or dissolve the ore minerals and obtain the desired elements, usually metals. “ Cu ” means the chemical symbol for the element copper. “ cut-off grade ” means the lowest grade of Mineral Resource considered economic; used in the calculation of Mineral Resources and Mineral Reserves in a given deposit. “ diamond drill ” is a type of drill in which the rock cutting is done by abrasion, with a diamond impregnated bit, rather than by percussion. The drill cuts a core of rock which is recovered in long cylindrical sections. “ Inf. ” means Inferred. “ Inferred Resources ” has the meaning ascribed to the term “ Inferred Mineral Resource ” pursuant to CIM Definitions. “ JORC ” means the Australasian Code for Reporting of Mineral Resources and Mineral Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Mineral Council of Australia, as amended. “ kg ” represents kilogram. “ km ” represents kilometre. “ km 2 ” represents square kilometre. “ koz ” means thousand ounces. “ kozpa ” means thousand ounces per annum. “ kt ” means thousand tonnes. “ ktpd ” means thousand tonnes per day. “ lb ” represents pound. “ LOM ” means life of mine. “ m ” means metres. “ M&I ” means Measured and Indicated. “ Mbbls/mbbls ” means thousand barrels. “ Mboe/mboe ” means thousand barrels of oil equivalent. “ Mcf/mcf ” means thousand cubic feet. “ Measured Resources ” has the meaning ascribed to the term “Measured Mineral Resource” pursuant to CIM Definitions. “ mineralization ” usually implies minerals of value occurring in rocks. “ Mineral Royalties ” means the royalty interests in precious and base metal properties and certain equity interests owned by Franco-Nevada. “ Mlbs ” means millions of pounds. “ MMbbl ” means million barrels of oil. “ MMcf/mmcf ” means million cubic feet. “ MMcf/d or mmcf/d ” means million cubic feet per day. “ Mo ” means the chemical symbol for the element molybdenum. “ Moz ” means million ounces. “ Mtpa ” means million tonnes per annum. Mtpd ” means million tonnes per day. “ NGLs ” means Natural Gas Liquids. “ NI 43-101 ” means National Instrument 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators. “ Ni ” means the chemical symbol for the element nickel. “ NPI ” means Net Profit Interest: the profits after deduction of expenses. “ NPR ” means Net Proceeds Royalties: which is a royalty on the profits after deduction of expenses. “ NRI ” means Net Royalty Interest: paid net of operating and capital costs (similar to an NPI). “ NSR ” means Net Smelter Return: Which is the proceeds returned from the smelter and/or refinery to the mine owner less certain costs. Syn: “ core drill ”. “ dip ” is the angle between a horizontal plane and an inclined surface such as a rock formation, fault or vein. “ drift ” is a horizontal passage underground that follows along the length of a vein of rock formation. “ EIS ” means environmental impact statement. “ eq ” or “ Eq ” means equivalent. “ fault ” means a fracture in a rock where there has been displacement of the two sides. “ Fe ” means the chemical symbol for the element iron. “ feasibility study ” means a comprehensive study of a mineral deposit in which all geological, engineering, legal, operation, economic, social, environmental and other relevant factors are considered in sufficient detail that it could reasonably serve as a basis by a financial institution to finance the development of a deposit for mineral production. “ FH ” means Freehold or Lessor Royalty. “ flotation ” is a process by which mineral particles are induced to become attached to bubbles and float, in an ore and water slurry, so that the valuable minerals are concentrated at the slurry surface and separated from the worthless gangue. “ fracture ” means breaks in a rock, usually due to intensive folding or faulting. “ Franco-Nevada ” means Franco-Nevada Corporation and is also referred to as “ Franco ”, “ FNV ”, “ the Company ”, “ Corporation ”, “ management ”, “ we ”, or “ our ” in this Asset Handbook. “ Freehold ” means an interest in real property. “ g ” represents grams. “ g/t ” means grams per tonne. “ GR ” means Gross Royalty and is a royalty based on all revenues in cash or in-kind products received by the operator for the sale of product. “ grade ” means the concentration of each ore metal in a rock sample, usually given as weight percent. Where extremely low concentrations are involved, the concentration may be given in grams per tonne (g/t) or oz per ton (oz/t). “ GMR ” means Gross Margin Royalty, which is a royalty on the revenues after deduction of cash operating costs. Non-deductible costs generally include: capital costs (both development and sustaining), exploration, depreciation and other non-cash production costs. “ Guide 7 ” means the mining industry guide entitled “Description of Property by Issuers Engaged or to be Engaged in Significant Mining Operations” contained in the Securities Act Industry Guides published by the United States Securities and Exchange Commission, as amended. “ ha ” means hectares; 10,000 square metres. “ heap leaching process ” is the process of extracting gold and silver by placing broken ore on an impermeable pad and applying a diluted cyanide solution that dissolves a portion of the contained gold and silver, which are then recovered in metallurgical processes. “ Indicated Resources ” has the meaning ascribed to the term “Indicated Mineral Resource” pursuant to CIM Definitions. TSX / NYSE: FNV Franco-Nevada Corporation ★ 147 146 ★ Franco-Nevada Corporation TSX / NYSE: FNV Additional Information Additional Information