.Adding Long-term Growth. December 14, 2009

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1 From a Position of Strength.Adding Long-term Growth December 14, 2009

2 Cautionary Statement Forward-Looking Statements This Presentation contains "forward-looking statements", which may include but are not limited to, statements with respect to future events or future performance, management's expectations ti regarding Franco-Nevada s growth, results of operations, estimated t future revenues, costs and timingi of acquiring i new royalties, equity and other resource related interests, requirements for additional capital, mineral reserve and resources estimates, production costs and revenue, future demand for and prices of commodities, expected mining sequences, business prospects and opportunities. All statements, other than statements of historical fact, are forward-looking statements. The words "expects", expected, estimated and similar expressions identify forward-looking statements. The forward-looking statements contained in this Presentation are based upon assumptions management believes to be reasonable, including, without limitation, the ongoing operation of the properties by the owners or operators of such 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 in the market price of the commodities, and any other factors that cause 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 and future events could differ materially from those anticipated in such statements. Franco-Nevada cannot assure investors that actual results will be consistent with these forward-looking statements and readers are cautioned that forward-looking statements are not guarantees of future performance. Accordingly, readers should not place undue reliance on forward-looking statements due to the inherent uncertainty therein. These risks, uncertainties and other factors include, but are not limited to: general business and economic conditions; the possibility that certain conditions of the Offer may not be satisfied; the ability to integrate the operations of IRC; the ability to realize upon any anticipated growth prospects and potential synergies; the timing and receipt of governmental approvals necessary to complete the Offer; the ability to make and/or complete the Compulsory Acquisition or the Subsequent Acquisition Transaction, as applicable; the ability to attract and retain IRC s key employees following the acquisition; the ability to carry out Franco-Nevada s plans for IRC; legislative and/or regulatory changes; fluctuations in the prices of the primary commodities that drive the Company s royalty revenue (gold, platinum group metals, copper, nickel, oil and gas); fluctuations in the value of the Canadian and Australian dollar, and any other currency in which the Company generates revenue, relative to the U.S. dollar; changes in national and local government legislation, including taxation policies; regulations and political or economic developments in any of the countries where the company holds interests in mineral or oil and gas properties; influence of macroeconomic developments; business opportunities that become available to, or are pursued by us; access to debt and equity capital; litigation; title disputes related to our interests or any of the underlying properties; operating or technical difficulties; risks and hazards associated with the business of development and mining, including, but not limited to unusual or unexpected operating difficulties, financial stress and other natural disasters or civil unrest. 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 Canadian securities regulatory authorities on as well as our Annual and interim MD&A. 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 new information, estimates or opinions, future events or results or otherwise, except as required by applicable law. Non-GAAP Measures Royalty Revenue, Free Cash-Flow, EBITDA and Adjusted Net Income are intended to provide additional information only and do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. These measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Other companies may calculate these measures differently. 2

3 Franco-Nevada s Position of Strength Leading gold royalty company by gold revenues number of gold royalties free cash flow margins Growing Gold delivered gold revenue growth pipeline of near term gold growth Strong track record of acquisitions predominantly gold acquisitions since IPO 196 mineral royalties, up from 185 at IPO Goldstrike rry Gold Qua Financial strength for growth $740m in available capital (Sept.30) substantial, consistent free cash flow no material capital commitments Palmar rejo 3

4 Gold Growth IPO to Date Royalty Rev venue ($ millio ons) % 55% 55% 56% 77% 80% Oil & Gas Base Metals & Other PGM Gold 77% Gold & PGMs as % of total Royalty Revenue 5 0 Q Q Q Q Q Q Q Gold Royalty Revenues have doubled since the IPO Chart reflects Royalty Revenue, defined by the Company as cash received or receivable from operating royalty assets earned during the period. 4

5 Gold Growth Near term US$ (Millions s) Franco-Nevada has potentially 15 growth assets generating incremental gold Royalty Revenue growth in the next 3-4 years (1) Incremental Annual Gold Royalty Revenues Not Shown Any contribution from >130 other longer term gold royalties Base metal revenues Franco-Nevada expects that on a standalone basis: - >50% growth in 09 gold Royalty Revenue vs continued gold Royalty Revenue growth through increasing % of Royalty Revenue as precious metals (2) (1) Appendix (Slide 17) provides details to pro-forma incremental estimates for Franco-Nevada assets assuming $1000 gold. (2) Other commodity prices assumed to stay comparable to current levels 5

6 Track Record of Acquisitions since IPO >90% of capital deployed into gold assets Amount Asset Royalty Commodity Operator Location $104m Gold Quarry 7.29% Gold Newmont Nevada $80m Palmarejo 50% Gold Coeur d Alene Mexico $58m Ahafo South Mine 2% Gold Newmont Ghana A$20m Mt Keith 0.375% Nickel BHP Australia $20m Marigold 2.5-5% Gold Goldcorp Nevada New royalties are on proven projects with top operators and on large land positions with exploration upside 6

7 Bid to Acquire IRC All cash bid for IRC of C$6.75/share total value C$655M (US$621M) amount represents 19% of pro-forma enterprise value Long-term value-added transaction long-term revenue and cash flow contribution (~30% of 2014 pro-forma revenue) (1) significant operating NAV contribution (~23% of pro-forma operating NAV) (1) Adding core assets - Pascua & Voisey s s Bay world class deposits, good countries, top operators 2 of 5 top assets pro-forma Strong growth profile, key long-term assets long life of core assets provides long-term pro-forma revenue growth IRC s growth is largely in gold assets Diversified pro-forma portfolio no asset greater than ~15% of NAV (1) adds >80 mineral royalties to Franco-Nevada s existing 196 mineral royalties (1) NAV and revenue estimates based on broker estimates at analyst consensus prices 7

8 Strengthening the Leading Royalty Portfolio IRC contributes two key assets (Pascua, Voisey s) and >80 other royalties Further diversify Franco-Nevada s portfolio no asset >15% of pro-forma NAV PRO-FORMA NAV BREAKDOWN PRO-FORMA ROYALTY PORTFOLIO Other IRC 8% Palmarejo 14% Type FNV IRC Pro- Forma Operating Goldstrike 14% Development / 36% Feasibility Other FNV Voisey's 8% Exploration Stillwater Gold Quarry 6% 6% Pascua Lama 8% NAV of Mineral Assets 77% 23% 100% Source: Broker research at analyst consensus prices. Includes NAV of mining assets only, cash is not reflected. Note: Includes recent acquisition of Marigold, Mt Keith and Moydow but excludes 295 Oil and gas royalties. NAV contribution from broker estimates at analyst consensus prices. 8

9 Long-Term Gold Revenue Growth US$ (Millions) New Incremental Precious Metals Royalty Revenues From Franco-Nevada and IRC Growth Assets (1) IRC IRC IRC IRC Not Shown Any contribution from Franco- Nevada or IRC exploration stage gold royalties Base metal revenues 40 IRC Incremental Annual Growth Adding long-term gold growth (1) Appendix (slide 17) provides details to pro-forma incremental estimates t for Franco-Nevada growth assets. IRC estimates based on Haywood December 2009 report at spot prices. Note that IRC revenue includes contribution from silver from the Wolverine asset. 9

10 Pro-forma Revenue Contribution FNV IRC 100% 90% 14% 18% 18% 21% 26% 30% 80% ) Revenue Contribution (%) 70% 60% 50% 40% 30% 86% 82% 82% 79% 74% 70% 20% 10% E 2010E 2011E 2012E 2013E 2014E Adding long-term growth Source: Broker Research at analyst consensus prices. Note: Assumes 2014 other revenue proportional to remaining revenue based on precious and base metals estimates 10

11 Contribution Analysis 100% 90% 80% 19% IRC 18% 23% 30% (%) 70% Relative Contribution 60% 50% 40% 30% 81% FNV 82% 77% 70% IRC FNV 20% 10% 0% EV (IRC at Offer) '10E Rev Asset NAV '14E Rev IRC contribution to pro-forma company is greater than its proportion of the combined EV Note: NAV and revenue estimated based on broker research at analyst consensus prices. EV based on December 4, 2009 closing price (FNV) and C$6.75 offer. 11

12 Revenues Remain Dominantly Precious Metals 2010E Revenue 2014E Revenue Other 16% Other 16% Base Metals 17% Base Metals 13% Precious Metals 67% Precious Metals 71% Franco-Nevada pro-forma revenue will remain >70% precious metals assuming consensus long-term gold prices or better Source: Broker Research using current analyst consensus prices Note: Assumes 2014 other revenue proportionate to remaining revenue based on precious and base metals estimates 12

13 Fully Funded from Current Capital Resources Pre-Transaction Post-Transaction ti (September 30, 2009) (January 31, 2010) Cash & Short- Term Investments US$590 million US$34 million (1) Debt None US$25 million (2) Revolver Available US$150 million (Matures December 2010) US$175 million (Matures December 2012) Total Available Capital US$740 million US$184 million Franco-Nevada can acquire IRC with no net debt and still have >$180m in available capital and >$10m free cash flow/month (3) (1) Adjusted for Moydow, Mt. Keith, Marigold acquisitions; FNV and IRC estimated Q4 cash flow based on broker research; FNV sale of marketable securities; IRC current balance sheet and proceeds from ITM options (2) Face value of IRC debt converted at fixed contract CAD / USD rate (3) Cash flow based on annual broker estimates adjusted to reflect a monthly figure. 13

14 Transaction Context Franco-Nevada has substantially outperformed IRC since IPO Initial share position in IRC acquired over one year ago IRC shareholders initiated and IRC management encouraged a sale process Capital on hand being used to acquire assets that will make a growing revenue contribution i to the portfolio exposure to Voisey s revenues post strike potentially 2010 growing gold contribution from development/construction assets gold production from world class Pascua beginning in

15 Franco-Nevada Performance Since IPO 120% Franco-Nevada 100% IRC 86% 80% Share Price Pe erformance (%) 60% 40% 20% 0% -20% -40% (15%) -60% -80% -100% Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Source: Bloomberg Note: Share price performance based on Canadian dollars adjusted for dividends and distributions 15

16 Franco-Nevada From a Position of Strength Leading gold royalty company Strong performance from existing royalties Expected continued growth from royalties on new projects Substantial cash balance earmarked for further growth Adding Long-term Growth Value added transaction Adds core world class assets Provides long-term revenue growth Increases diversification and portfolio upside Acquisition is fully funded Remaining capacity to continue asset transactions 16

17 Appendix - Gold Growth Assets Franco-Nevada stand-alone incremental gold growth revenues 2010 Project Operator Royalty Annual Incremental Royalty $1000 gold Palmarejo Coeur d Alene 50% stream $15-19m Holloway Hislop St Andrew Gold 4-5% NSR 3-4m Hollister Great Basin Gold 3-5% NSR 3-5m Hemlo NSR Barrick Gold 3% NSR 1-2m $22-30m Tasiast Red Back Mining 2% NSR $6-8m Holt St Andrew Gold 10% NSR 3-4m Marigold Goldcorp 144% 1.4-4% NSR 2-4m Duketon Regis Resources 2% NSR 2-3m Ity La Mancha 1-1.5% NSR 1m $13-20m Hemlo NPI Barrick Gold 50% NPI $5-12m Detour Detour Gold 2% NSR 10-12m Ahafo Newmont 2% NSR 4-8m Rosemont Augusta Resources 1.5% NSR 1-2m Goldfields Linear Gold 2% NSR 1-2m Perama Hill Eldorado Gold 2% NSR 2-3m $23-39m Management projection of start of royalty. Applicable royalty rate at $1000 gold for sliding scale royalties Reflects operator public guidance as of September 2009 Reflects management s projections based on available data 2009 was a half year of production is increment for full year Gold only. With copper & silver, royalty potential is $7-9mm 17

18 Appendix IRC Cornerstone Assets Pascua - Chile Potential for more than 25 year mine life Operator: Barrick Gold Sliding scale NSR on gold (3.15% above $800/oz) Startup scheduled for late 2012 Source: Barrick 2006 Environmental Management Document Voisey s Bay Canada Potential for up to 40 year mine life Operator: Vale Inco 2.7% NSR on nickel/copper/cobalt Operating since 2005, currently on strike Source: Vale ( 18

19 Appendix IRC Key Growth Assets Source: Inmet Mining Las Cruces Spain Operator: Inmet Mine life: 15+ years Status: Currently ramping up production Royalty: 1.5% NSR on copper Belahouro/Inata Burkina Faso Operator: Avocet Mining Mine life: 7 years Status: First gold pour expected early 2010 Royalty: 2.5% NSR on gold Source: Avocet Corporate Presentation Wolverine Canada Operator: Yukon Zinc (1) Mine life: 10 years Startup expected in late 2010 Royalty: Sliding scale NSR (currently 9.445% on gold & silver) Source: Whitehorse Daily Star (1) Owned by Jinduicheng Molybdenum Group & Northwest Nonferrous International Investment Company 19

20 Franco-Nevada Corporation Capital Structure: Common Warrants Warrants Warrants 112.0m shares outstanding (FNV-TSX) C$32/sh Mar (FNV.WT) C$75/sh June 2017 (FNV.WT.A) 0.32m Special Warrants Share Price Range (1) C$ C$11.62 Market Capitalization at (2) $2.8B Working Capital + Investments (3) $618m Available Credit Facilities $175m (to December 2012) Debt, Hedges or Payables (3) Nil 2009 Dividends id d (Indicative) C$31.2m (C$0.28/share) Management Ownership (4) 5.1% (6.6% fully diluted) (1) Previous 52 weeks (2) December 11, 2009 (3) September 30, 2009 working capital plus marketable investments (4) As at September 30,