R O Y A L T Y O U N C E S Why We Measure “Royalty Ounces” Franco-Nevada’s mining properties that have reported Mineral Resources and Mineral Reserves are tabulated in the Mineral Resources and Mineral Reserves section of this Asset Handbook. Unless otherwise noted in the Royalty Ounce calculation for each asset, the figures are tabulated based on the publicly disclosed reports of each operator for each property on a 100% basis. However, the tabulation does not provide a specific measure for Franco-Nevada’s interest in such Mineral Resources and Mineral Reserves for the following reasons: • Royalty and stream interests have different economics than an operator has for its stated Mineral Resources and Mineral Reserves. In addition, the economics differ between NSR, NPI and stream interests. • Some assets do not cover the entire property associated with the operator’s publicly reported figures. To account for the above, we calculate “Royalty Ounces” to estimate the value attributable to Franco-Nevada due to our economic interest in the Mineral Resources and Mineral Reserves of our portfolio. The value of a Royalty Ounce is normalized to that of a gold NSR ounce. How We Estimate “Royalty Ounces” A traditional NSR royalty on a gold mining property provides Franco- Nevada with a simple percentage of the revenue or gold in-kind produced from that property. For example, if we have a 2% NSR royalty on a property, we calculate 2% of the stated Mineral Resources and Mineral Reserves as our “Royalty Ounces”. Note we do not make adjustments for recoveries and refining fees for gold NSRs as they are typically minor. When calculating Royalty Ounces for a property our objective is that they should be comparable to an attributable gold NSR Royalty Ounce. To achieve comparable Royalty Ounce figures, we make adjustments in the following circumstances: 1. The royalty or stream does not cover all the Mineral Resources or Mineral Reserves on a property: We provide our best estimate of the percentage of Mineral Resources and Mineral Reserves that are attributable to our interest. 2. A stream interest with an associated ongoing cost per ounce: The number of attributable stream ounces are factored to make them economically equivalent to a NSR ounce. For example as illustrated on this page, at a $4,500/oz gold price and a $400 cost per ounce, the stream ounces are factored by 91%. The factor depends on cost per ounce or the percentage margin written in the agreement. 3. A NPI royalty: A NPI is subject to the operating and capital costs specific to each asset. We generate our own internal mine life projections for each asset to determine a reasonable estimate of the economic equivalent of a gold NSR Royalty Ounce using a $4,500 gold price assumption. 4. A Gross Margin Royalties or “GMR”: Gross Margin Royalties (“GMR”) are based on the gross revenue realized from the property after deducting specified operating costs from total revenue. The calculation of gross revenue generally excludes deductions for capital costs and similar expenditures. 5. An asset producing silver, PGM or base/bulk metal: The number of attributable silver, platinum or palladium ounces, and attributable base/bulk metals pounds/tonnes are converted into Royalty Ounces. This year’s pricing assumptions for conversion include: $4,500/oz gold, $75/oz silver, $2,000/oz platinum, $1,650/oz palladium, $5.50/lb copper, $7.39/lb nickel, $1.45/lb ferrochrome and $100/t Fe 62% CFR China for our calculations. For copper, nickel, ferrochrome and iron ore Royalty Ounce calculations, we do reflect deductions for processing and refining as they are more material compared to a typical gold NSR asset. In the Assets section of this Asset Handbook, we provide details for each asset that include summary figures for the Mineral Resources (M&I Resources inclusive of P&P Reserves), Mineral Reserves (P&P Reserves) and Inferred Mineral Resources (Inf. Resources). We also provide the related M&I Royalty Ounces, P&P Royalty Ounces and Inf. Royalty Ounces for each of those assets and the key guidance and assumptions that were required to derive those Royalty Ounces. Readers are cautioned that the Royalty Ounces are prepared by the management of Franco-Nevada and have not been reviewed or endorsed by the operators of the projects. Example Economics of a Royalty (NSR or NPI) versus a Stream The example below compares the relative value per ounce to Franco- Nevada of an NSR, a stream or an NPI or WI. Assume for one ounce of gold, a sales price of $4,500, a “stream cost”¹ of $400/oz and that the “all-in sustaining cost” 2 of the mine is $1,637/oz. NSR Stream Developed NPI or WI One ounce sold at $ 4,500 $ 4,500 $ 4,500 Applicable cost $ – $ 400 1 $ 1,637 2 Margin for calculation $ 4,500 $ 4,100 $ 2,863 NSR, Stream or NPI % 4% 4% 4% Revenue per ounce to FNV $ 180 $ 164 $ 115 Value relative to an NSR 1.00x 0.91x 0.64x 1 Franco-Nevada’s streams have various ongoing costs. In some cases, it is $400/oz of gold plus a 1% annual increment, in other cases it is 20% of the spot price of gold. For each stream, Franco-Nevada indicates the detail for ongoing costs 2 For applicable costs for a developed NPI or WI, Franco-Nevada is, for illustrative purposes, assuming Barrick Gold Corporation’s (“Barrick”) 2025 all-in sustaining cash cost measure, as Barrick is the operator of two assets at which Franco-Nevada has NPI interests In total our assets have 16.7M M&I Royalty Ounces and 6.0M Inferred Royalty Ounces, the equivalent of $102.2B at $4,500/oz. If Cobre Panamá and New Prosperity are included, the total potential inventory would be 27.5M Royalty Ounces or $123.8B. 1 Royalty Ounces presented do not include Cobre Panamá, currently on preservation and safe management, and New Prosperity ROYALTY OUNCES BY MINERAL RESOURCES AND MINERAL RESERVES 1 CLASSIFICATION CATEGORIES P&P 32% M&I (excl.) 42% Inf. 26% MEASURED & INDICATED RESOURCES (Incl.) NSR 59% Stream 35% NPI 3% Other 3% PROVEN & PROBABLE RESERVES Chile 14% Peru 12% Other S. America 18% United States 13% Canada 27% Rest of World 10% Mexico 6% MEASURED & INDICATED RESOURCES (Excl.) Chile 20% Peru 13% Other S. America 11% United States 12% Canada 27% Rest of World 14% Mexico 3% INFERRED RESOURCES Chile 7% Peru 17% Other S. America 6% United States 24% Canada 28% Rest of World 14% Mexico 4% TSX / NYSE: FNV Franco-Nevada Corporation ★ 19 18 ★ Franco-Nevada Corporation TSX / NYSE: FNV Overview Overview Overview