Potential Financial Impact for: Description Our Operating Partners Our Company Mitigating Actions Regulatory scrutiny of climate - and other sustainability - related disclosures is intensifying in Canada, driven by enhanced greenwashing provisions under the Competition Act and evolving guidance from securities regulators, including the Alberta Securities Commission. These developments are increasing expectations around the accuracy, substantiation and transparency of climate - related claims and disclosures. Similar trends are emerging internationally, contributing to a more litigious and enforcement - oriented policy environment. Under more ambitious transition pathways, such as the Net-Zero 2050 scenario, public awareness, regulatory expectations and enforcement activity are expected to increase further. This environment may lead to a greater frequency of climate - related litigation, as well as heightened exposure to penalties, fines or other legal consequences where disclosures are perceived to be misleading, incomplete or insufficiently supported. For operators in carbon - intensive sectors, including oil and natural gas, regulators are expected to impose more stringent emissions measurement, reporting and verification requirements. These developments may result in higher compliance costs, alongside increased litigation risk and the potential for more severe financial penalties in the event of non - compliance or disputed claims. For Franco - Nevada, exposure to this risk is indirect and proportionate to its portfolio composition, with oil and gas assets historically accounting for approximately 15% of revenue. While Franco - Nevada’s climate - related disclosures are voluntary and the company does not operate assets, the potential financial impact associated with climate - related litigation and regulatory enforcement is expected to range from low under baseline conditions to moderate over the longer term, as disclosure standards evolve and enforcement activity increases toward 2050. Increased legal and compliance costs Heightened regulatory scrutiny and litigation risk may result in higher legal expenses, including litigation costs, settlements, fines, penalties and increased insurance premiums, which could pressure margins and profitability. Operational disruption and asset impacts Climate - related legal proceedings, enforcement actions or regulatory interventions may lead to project delays, operational suspensions or asset shutdowns, potentially reducing production, delaying cash flows and triggering asset impairments or write - downs. Reputational exposure through operating partners Significant controversies, litigation or enforcement actions involving operating partners may give rise to reputational impacts for Franco - Nevada by association, increasing scrutiny from investors, sustainability - focused stakeholders and rating agencies, notwithstanding Franco - Nevada’s non - operating role. Revenue timing and valuation effects Operational suspensions, delays, or impairments at underlying assets may result in temporary deferrals of royalty and stream revenues and, in certain circumstances, valuation adjustments or impairment considerations where long - term asset assumptions are affected. Prudent and disciplined disclosure practices Franco - Nevada adopts a cautious and disciplined approach to climate - related and other sustainability-related disclosure, with an emphasis on accuracy, substantiation and consistency as regulatory expectations evolve. Regulatory monitoring and governance oversight The company actively monitors developments in climate - related litigation, enforcement trends and securities - regulatory guidance, including evolving expectations in Canada, to manage disclosure risk and reduce potential exposure to greenwashing - related claims. Portfolio - level risk awareness Climate - related legal and reputational risks are considered as part of broader portfolio oversight and risk management, supporting informed engagement with operating partners and alignment with Franco - Nevada’s long - term, non - operating investment model. Transition: Policy and Legal Risks Exposure to climate-related litigation (oil, natural gas) Franco-Nevada Corporation 64