Transition: Reputational Risks Potential Financial Impact for: Description Our Operating Partners Our Company Mitigating Actions Reputational considerations represent a key transition risk for Franco - Nevada, particularly as public, investor and policy scrutiny intensifies around higher - emitting sectors. Under the Current Policies scenario, ongoing scrutiny of the oil and gas sector and other carbon - intensive activities is expected to result in a moderate level of reputational and financial risk, including heightened sensitivity to environmental, social and governance outcomes at underlying assets. For Franco - Nevada, reputational pressures affecting operating partners may contribute to operational disruptions, project suspensions or prolonged delays, which in turn could defer or, in certain circumstances, permanently reduce royalty and stream cash flows, resulting in potential valuation impacts, impairments or write - offs. While such outcomes are asset - and jurisdiction - specific, they illustrate how reputational considerations can translate into financially material effects for non - operating capital providers. Under the Net-Zero 2050 scenario, accelerated decarbonization and evolving societal expectations are expected to further intensify scrutiny of operators associated with higher - emitting sectors. Over time, this may influence Franco - Nevada’s capital - allocation decisions, contributing to a gradual structural shift away from higher - carbon commodities toward assets more clearly aligned with the energy transition. Reputational risk remains central to Franco - Nevada’s transition - risk profile, with potential implications for cash - flow stability, asset valuations, compliance and disclosure costs, share - price performance, and access to capital. Overall, the expected financial impact is moderate, reflecting elevated downside risk to certain assets while remaining partially mitigated by Franco - Nevada’s diversified portfolio and its long - standing investment framework, under which approximately 80% of revenues are derived from precious metals. Demand and market access pressure Sector stigmatization may reduce demand for carbon - intensive commodities, particularly for fossil - fuel producers, adversely affecting revenues and pricing. Social, political and regulatory escalation Reputational pressure may escalate into social opposition or political intervention, potentially resulting in loss of social license, production suspensions, revenue loss, asset impairments, and increased difficulty accessing or refinancing capital. Indirect revenue exposure Reduced demand for higher - carbon commodities may lower attributable revenues from affected assets within Franco - Nevada’s portfolio. Cash - flow timing and valuation risk Operational disruptions driven by sector stigmatization may defer or permanently reduce royalty and stream cash flows and, in certain cases, contribute to valuation adjustments or asset impairments/write - offs. Portfolio diversification and transition alignment Franco - Nevada mitigates reputational transition risk through portfolio diversification, supported by the development of a dedicated energy and low - carbon transition investment strategy alongside its core precious - metals focus. Clear expectations and engagement with operating partners The company maintains clear climate - related and other sustainability-related expectations for operating partners, including progress on climate commitments, emissions - reduction targets, and ongoing engagement, to support long - term asset resilience and reputational performance. Stigmatization of sector and increased stakeholder concern (all commodities) Franco-Nevada Corporation 65