Transition: Products and Services Opportunities Potential Financial Impact for: Description Our Operating Partners Our Company Mitigating Actions Demand for commodities aligned with the low - carbon transition is increasing, driven by structural trends including electrification, power - grid expansion, industrial activity and the growth of electric vehicles. Under both assessed climate scenarios, the share of renewable and lower - carbon energy in the global energy mix is expected to rise, with a more pronounced shift under the Net-Zero 2050 scenario, supporting longer - term demand for transition - relevant commodities. From a portfolio perspective, Franco - Nevada monitors changes in commodity demand, relative market dynamics and the evolving mix of its revenue exposure. Improved balance sheets, stronger access to capital and enhanced project economics for operating partners producing transition - aligned commodities may support higher production levels, project advancement and development optionality. These effects may translate into increased attributable production and enhanced long - term returns under Franco - Nevada’s royalty and streaming agreements. While Franco - Nevada intends to continue investing within its established framework— maintaining approximately 80% of revenue from precious metals and 20% from diversified assets—exposure to commodities aligned with the energy transition may provide incremental portfolio resilience and growth optionality. Under the Net-Zero 2050 scenario, the associated financial impact is expected to be low to moderate, reflecting upside potential from selected assets while remaining consistent with Franco - Nevada’s long - term, disciplined capital - allocation strategy. Higher compliance and reporting costs Transition - aligned pathways may entail stricter emissions reporting, verification and disclosure requirements, increasing operating and compliance costs, particularly during the early stages of regulatory convergence. Regulatory exposure for non - compliance Failure to meet evolving reporting or substantiation requirements may expose certain operators to regulatory penalties or enforcement actions, potentially affecting operating performance and access to capital. Revenue exposure to declining high - carbon demand Structural declines in demand for carbon - intensive commodities could result in lower attributable revenues from certain diversified assets within the portfolio. Cash - flow timing effects Project delays or slower development timelines—particularly during periods of transition - related adjustment—may defer royalty and stream cash flows, affecting revenue timing rather than permanent value. Focus on lower - risk precious metals exposure Franco - Nevada’s core objective remains to be a lower - risk gold - focused investment, with precious metals demand expected to be structurally less sensitive to climate - transition pathways than higher - carbon commodities. Selective exposure to transition - aligned assets The company continues to expand selectively into transition - linked commodities, including investments in high - grade iron ore, which are well aligned with the shift toward lower - carbon steelmaking and broader industrial decarbonization trends. Shifts in consumer preferences and capital allocation toward commodities aligned with the low carbon transition (silver, PGMs, copper, high grade iron ore, natural gas) Franco-Nevada Corporation 66