Message from our CEO ONGOING ASSET MANAGEMENT 7 Report Highlights Royalty and stream agreements differ in many respects, but typically include the following types of provisions: About Franco-Nevada Reporting Operating Security & Audit & Responsible Obligations: Covenants: Remedies: Inspection Rights: Capital Allocation Our royalty and streaming agreements typically Following our initial acquisition of royalties or Streaming agreements afford us the ability We are usually entitled to audit the books and Due Diligence Process contain a series of reporting obligations streams, we are not involved in our operating to terminate and recover specific remedies records of the operators on a periodic basis Ongoing Asset Management including the delivery of monthly and annual partners’ development and operation of the upon a material breach of the contractual and may access and inspect the properties reports, updated mine plans, forecasts and applicable projects. However, our royalty and provisions. In some instances, we have comprising the project. These rights provide Key ESG Factors other documentation, which serve to keep us streaming agreements typically contain certain security arrangements in respect of our us further insight into the operations and Health and Safety informed of operations. Operators are also operating covenants designed to ensure royalty and stream interests, which would management by the operators. These provisions Carbon Footprint typically required to notify us of any material that operators are conducting operations in enable us to exert influence in the event of permit us to confirm compliance with the terms adverse changes to a project or its operations. accordance with applicable law and responsible a default or otherwise. Such arrangements of the agreements, for example, covenants to Water Management and Risk Following such an adverse event, we typically practices, including ESG-related standards provide additional protections to help address comply with international tailings standards, and Tailings Management maintain regular communication and offer such as the RGMPs and ICMM, CIM or TSM material ESG risks. with applicable laws, including environmental our guidance and expertise to the operators, mining principles. laws and ESG-related industry standards. Biodiversity where appropriate. These reporting obligations Supply Chain keep us informed of ESG-related issues when they arise. Community Transfer Contributions Restrictions: Good Governance and Our royalty and streaming agreements Shareholder Alignment may have restrictions that either require our consent for the operator to transfer Diversity, Inclusion the project, or otherwise establish the and Well-Being circumstances in which such transfer is permissible. Such constraints are intended Climate Action to ensure we continue to be partnered with a quality operator over the life of the Transparency and agreement and a responsible actor when it comes to ESG-related issues. Guiding Principles About this ESG Report Franco-Nevada's Business Development team (2023) Franco-Nevada's Legal team (2023) Appendices