PERSPECTIVE ON MINE FINANCINGPERSPECTIVE ON MINE FINANCING

DUNDEE CAPITAL MARKET’SDUNDEE CAPITAL MARKET SON THE ROCKS CONFERENCE

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Cautionary Statement

Forward-Looking StatementsThis presentation may contain certain information that may constitute “forward looking information” and “forward-looking statements” within the meaning of applicable Canadian securities laws and UnitedStates Private Securities Litigation Reform Act 1995, respectively. Forward-looking statements may include, but are not limited to, statements with respect to future events or future performance,management’s expectations regarding Franco-Nevada’s growth, results of operations, estimated future revenues, requirements for additional capital, future demand for and prices of commodities, expectedmining sequences, business prospects and opportunities. Such forward looking statements reflect management’s current beliefs and are based on information currently available to management. Often, butnot always, forward looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “predicts”, “projects”, “intends”, “targets”,“aims”, “anticipates” or “believes” or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions “may”, “could”, “should”, “would”,“might” or “will” be taken, occur or be achieved. Forward looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance orachievements of Franco-Nevada to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements. A number of factors could causeactual events or results to differ materially from any forward looking statement, including, without limitation: fluctuations in the prices of the primary commodities that drive the Franco-Nevada’s royalty andstream revenue (gold, platinum group metals, copper, nickel, uranium, silver and oil and gas); fluctuations in the value of the Canadian and Australian dollar, Mexican peso, and any other currency in whichFranco-Nevada generates revenue, relative to the U.S. dollar; changes in national and local government legislation, including permitting and licensing regimes and taxation policies; regulations and political oreconomic developments in any of the countries where properties in which Franco-Nevada holds a royalty, stream or other interest are located; influence of macro-economic developments; businessopportunities that become available to, or are pursued by Franco-Nevada; reduced access to debt and equity capital; litigation; title, permit or license disputes related to Franco-Nevada’s interests or any ofopportunities that become available to, or are pursued by Franco Nevada; reduced access to debt and equity capital; litigation; title, permit or license disputes related to Franco Nevada s interests or any ofthe properties in which Franco-Nevada holds a royalty, stream or other interest; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of theproperties in which Franco-Nevada holds a royalty, stream or other interest; rate and timing of production differences from resource estimates; risks and hazards associated with the business of developmentand mining on any of the properties in which Franco-Nevada holds a royalty, stream or other interest, including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failuresor cave-ins, flooding and other natural disasters or civil unrest; and the integration of acquired assets. The forward looking statements contained in this presentation are based upon assumptionsmanagement believes to be reasonable, including, without limitation: the ongoing operation of the properties in which Franco-Nevada holds a royalty, stream or other interest by the owners or operators ofsuch properties in a manner consistent with past practice; the accuracy of public statements and disclosures made by the owners or operators of such underlying properties; no material adverse change inthe market price of the commodities that underlie the asset portfolio; no adverse development in respect of any significant property in which Franco-Nevada holds a royalty, stream or other interest; theaccuracy of publicly disclosed expectations for the development of the underlying properties that are not yet in production; integration of acquired assets; and the absence of any other factors that couldaccuracy of publicly disclosed expectations for the development of the underlying properties that are not yet in production; integration of acquired assets; and the absence of any other factors that couldcause actions, events or results to differ from those anticipated, estimated or intended. However, there can be no assurance that forward looking statements will prove to be accurate, as actual results andfuture events could differ materially from those anticipated in such statements. Readers are cautioned that forward-looking statements are not guarantees of future performance. Franco-Nevada cannotassure readers that actual results will be consistent with these forward looking statements. Accordingly, readers should not place undue reliance on forward looking statements due to the inherent uncertaintytherein. For additional information with respect to risks, uncertainties and assumptions, please also refer to the “Risk Factors” section of our most recent Annual Information Form filed with the Canadiansecurities regulatory authorities on SEDAR at www.sedar.com, our most recent Form 40-F filed with the Securities and Exchange Commission on EDGAR at www.sec.gov, as well as our most recent annualand interim MD&As. The forward looking statements herein are made as of the date of this presentation only and Franco-Nevada does not assume any obligation to update or revise them to reflect newinformation, estimates or opinions, future events or results or otherwise, except as required by applicable law.

1. EBITDA is defined by the Company as Net Income excluding income tax expense, finance costs, finance income and depletion and depreciation.

Non-IFRS MeasuresAdjusted Net Income, EBITDA and Adjusted EBITDA are intended to provide additional information only and do not have any standardized meaning under International Financial Reporting Standards(“IFRS”) and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures are not necessarily indicative of operating profit orcash flow from operations as determined under IFRS. Other companies may calculate these measures differently. For a reconciliation of these measures to various IFRS measures, please see the end ofthis presentation or the Company’s current MD&A disclosure found on the Company’s website and with Canadian securities regulatory authorities on SEDAR at www.sedar.com and with the Securities andExchange Commission on EDGAR at www.sec.gov.

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y p y g p , , p p2. Adjusted EBITDA is defined by the Company as Net Income excluding income tax expense, finance costs and income, foreign exchange gains /losses, gains /losses on the sale of investments,

income/losses from equity investees, depletion and depreciation and impairment charges related to royalty, stream and working interests.3. Adjusted Net Income is defined by the Company as Net Income excluding foreign exchange gains /losses, gains /losses on the sale of investments, impairment charges related to royalties, streams,

working interests and investments; unusual non-recurring items; and the impact of taxes on these items.

Successful $1B+ Mine Financings

Osisko

Detour Gold 

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Investor Challenges

Global markets NGO challenges Ownership tenure

Operating Challenges

d h & l blEuro credit crisis Occupy movements Higher taxes & royalties Capex blowouts

Japanese tsunami Keystone XL Windfall levies – rents Operating costs

US debt ceiling Minas Conga Government ownerships Start‐ups

Commodity price volatility Aboriginal claims Nationalizations –FM Permitting & regs

Inflation or recession? Minewatch Reko Diq squeeze outs Failures – Goldex

Black empowerments Lawsuits – El Morro

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Dow vs Gold:

32

16

mic

Sca

le)

8

ld (

Loga

rithm

2

4

DO

W/G

o

1

2

5

Gold has upside potential

Mine Financing Options

Traditional Sources Current Availability

Equity limited to select companiesEquity limited to select companies

Project debt limited to select companies

Vendor finance only if balance financed

Joint venture weak if no auction

Sell weak if no auction

D l i Alt t SDeveloping Alternate Sources

Private equity (Paulson & Co, First Reserve, Ospraie …)

Long term pension funds endowmentsLong term pension funds, endowments

New mezzanine financiers (RCF Funds, RMB, Barclays, Red Kite, Sprott …)

Offtake partners (Glencore, Chinese, Koreans, Japanese …)

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Royalty and stream financing

Royalty/Stream Alternative

Financing Instrument

Cash Burden Dilution of Shareholder’sInstrument Shareholder s

interest

None (other than Dilutes interest in all LOWEquity None (other than

dividends) current and future assets

n

Royalty / Stream

Burden proportional to production and gold price

Reduces interest in a specific asset only Re

turn

Risk

Debt Interest, principal and covenants

Full upside potential of assets is retained HIGH

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Royalty vs. Gold Stream

Royalty Gold Stream

Smaller % of production Future income to cover costs

Potential gain on sale Mortgage on property

Registered on title Potential tax efficiency

No inter-creditor issues Greater lending value for bankersg

joPa

lmar

ej

Tasi

ast

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Types of Financing

Existing Mine FinancingExploration Existing Royalties Exploration

FinancingMine Financing

gRoyalties

gpFinancingFinancing

Typically 1-3% NSR Equity placement and royalty option

% of by-product gold production

E l tiExploration,development or producing

Exploration stage Development stage

Recent Financing ExamplesRecent Financing Examples

Cdn Malartic - $10 M Timmins 81- $2 M Sudbury FNX - $400 MEdikan - $35 M Dorato - $2 6 M Prosperity - $365 MEdikan - $35 M Dorato - $2.6 M Prosperity - $365 MPhoenix - $24 M Creso - $1.5 M MWS - $125 MLumina Royalty - $66 M Palmarejo - $80 M

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Gold Stream Terms

Item Typical Terms

Structure Pre-purchase of gold

FundingUpfront amountOngoing payment – typically $400/ozOngoing payment – typically $400/oz

Commitment % of LOM gold production

Construction Completion requirementsRisk Completion requirements

Security Secured on title or mortgage on property

alm

arej

o

Sudb

ury

MW

S10

Pa S

Gold Stream Transactions

400

450

250

300

350 Franco‐Nevada *Other

US$M

150

200

0

50

100

0

dbury Footwall

Prospe

rity

Mt. Milligan

MWS

Tulseq

ua Chief

Palm

arejo

Black Fox

Ezulwini

Minto

Aurizon

a

11

Sud T

* Including Gold Wheaton transactions acquired by Franco-Nevada

Royalty or Stream Financing Rationale

A key financing step that can reduce equity overhang / discount

Effective new equity in a project improving its debt capacity

No up front commitment, advisor, standby or syndication fees vs. bank deals

No commissions, discounts or warrants compared to equity deals

R lt h d ti d i i k ith tEast Boulder ‐ Stillwater

Royalty company shares production and price risk with operator

Opportunity to realize precious metals value arbitrage for base metal companies

Equity dilutes all of a company’s future prospectsEquity dilutes all of a company s future prospects

Debt increases downside risk for the entire company

Royalties/streams participate in the upside of only a single projectRoyalties/streams participate in the upside of only a single project

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Available Capital

FrancoFranco--Nevada has >$900m capital to investNevada has >$900m capital to invest

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Franco-Nevada (FNV)

mar

ejoA gold focused royalty & stream company.

Listed on the TSX & NYSE with a market capitalization of over $5 billion

Palm

rikeGrowth > 70% expected revenue growth*

>$700M available cash and no debt

capitalization of over $5 billion

Gol

dstr$700M available cash and no debt

World class discoveries

Yield 1.2% yield60% di id d i i 2011

Tasi

ast

Yield 60% dividend increase in 2011Increases in each of past 4 years

Low Risk Royalty and stream model

Sudb

ury

Low Risk y ySecure and diversified portfolioProtected from inflationary costs

14S

*For 2011 based on the mid-range of August revenue guidance

Business Model Benefits

Increased Exposure to: Gold ETF FNV Operators

Dividend Yield <0% >1% 0-2%Dividend Yield <0% >1% 0 2%

Leverage to Gold Price 1 >1 >1

Exploration & Expansion upside 0% 100% 100%

Reduced Exposure to:Capital costs* 0% 0% 100%

Operating costs* 0% 0% 100%

Environmental costs* 0% 0% 100%

FNV provides yield and more upside than a gold ETF with less risk than an operator

15

with less risk than an operator

*Revenue royalties & streams

Growth in the Pipeline

16*Does not include Franco-Nevada’s 135 oil & gas assets and 157 undeveloped oil & gas interests

Over 200 mineral royalties and streams*

Quality Operators:

Core Operators:

GoldstrikeB ld M t i

Up and Comers:

PalmarejoBald MountainHemlo

Gold QuarryS bik

j

MesquiteCerro San Pedro

Hollo aSubika

MarigoldMusselwhite

HollowayHislopHolt

D t L kStillwaterEast Boulder

Tasiast

Detour Lake

DuketonGarden Well

Tasiast ‐ Kinross Detour – Detour Gold

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Growing Precious Metals Revenue

100

120

80

100

)

40

60

(US$

Mill

ions

OTHER

91% precious metals in Q3 2011

Reflects year end

20

40

GOLD

PGMQ

minimum payments

0

18

Diversified portfolio with growing Precious Metals

Secure and Diverse Revenue*

77% of Revenue from North America91% P i M t l

19

91% Precious Metals

* Q3 2011 Revenue

Growing Revenues ($1,600/oz Au)

** 2012-13E includes:• Full year GLW assets• Tasiast Detour & Subika• Tasiast , Detour & Subika• End of Goldstrike waste stripping• New Acquisitions: Cdn Malartic,

Edikan• NPIs reaching payout:

Musselwhite Macassa Hemlo70% Musselwhite, Macassa, Hemlo• Organic growth risk adjusted

70%

48%

* 2011E includes:• Higher prices vs. ‘10

48% • Nine months GLW• Start of Tasiast• Organic growth

Future excludes:• Permitting projects such as New

Prosperity, Rosemont and Perama Hill

20* Represents mid-range of 2011 August revenue guidance at $1,500/oz Au, $1,700/oz Pt, $750/oz Pd, $90/bbl Oil.** Incremental revenue calculation based on operator guidance and $1,600/oz Au. Represents revenue from new assets and

an estimate for depletion of existing assets.

Franco-Nevada is outperforming gold by:

Growth (>70% revenue growth expected in 2011) Profits and Yield (60% dividend increase in 2011) B i d l th t i i i i fl ti t i kBusiness model that minimizes inflationary cost risksParticipation in world class discoveries (Tasiast, Detour)Strong balance sheet with >$700m for further growthDiversified and secure portfolio

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Why Own a Gold ETF?