Franco-nevada Corporation · TSX:FNV

Franco-nevada — Merger or Acquisition (December 2009)

20 slides from Franco-nevada's merger presentation, Dec 14, 2009

  1. Slide 1: From a Position of Strength… Adding Long-term Growth

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

  2. Slide 2: Cautionary Statement

    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 t' expectations t ti regarding di Franco-Nevada’s F N d ’ growth, th results

  3. Slide 3: Franco-Nevada's Position of Strength

    Franco-Nevada’s Franco Nevada s Position of Strength Leading gold royalty company by • gold revenues Goldstrike • number of gold royalties • free cash flow margins Growing Gold • delivered gold revenue growth Gold Quarry • pipeline of near term gold growth Strong track record of acquisitions • p pre

  4. Slide 4: Gold Growth – IPO to Date

    Gold Growth – IPO to Date 45 40 35 ons) Oil & Gas venue ($ millio 30 Base Metals & Other 25 PGM Gold Royalty Rev 20 15 77% Gold & PGMs as % 80% 56% 77% of total Royalty 55% 55% 10 Revenue 61% 5 0 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Gold Royalty Revenues have doubled since the IPO

  5. Slide 5: Gold Growth – Near term

    Gold Growth – Near term Franco-Nevada has potentially 15 growth assets generating incremental gold Royalty Revenue growth in the next 3 4 years(1) 3-4 100 Not Shown 90 • Any contribution 80 from >130 other 70 longer term gold s) US$ (Millions 60 royalties 50 • Base metal 40 revenues 30 20 10 0 2010

  6. Slide 6: Track Record of Acquisitions since IPO

    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 Coeur $80m Palmarejo 50% Gold Mexico d’Alene Ahafo South $58m 2% Gold Newmont Ghana Mine A$20m $ Mt Keith 0.375% % Nickel BHP

  7. Slide 7: Bid to Acquire IRC

    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 (

  8. Slide 8: Strengthening the Leading Royalty Portfolio

    Strengthening the Leading Royalty Portfolio IRC contributes two keyy assets (Pascua, ( , Voisey’s) y ) and >80 other royalties y Further diversify Franco-Nevada’s portfolio – no asset >15% of pro-forma NAV PRO-FORMA NAV BREAKDOWN PRO-FORMA ROYALTY PORTFOLIO Other Pro- Type FNV IRC IRC Palmarejo Form

  9. Slide 9: Long-Term Gold Revenue Growth

    Long-Term Long Term Gold Revenue Growth New Incremental Precious Metals Royalty Revenues From Franco-Nevada and IRC Growth Assets(1) Not Shown 140 • Any contribution 120 from Franco- Nevada or IRC IRC IRC exploration stage 100 IRC $ (Millions) gold royalties 80 • Base metal 60 revenues US$ IRC 40 IR

  10. Slide 10: Pro-forma Revenue Contribution

    Pro-forma Pro forma Revenue Contribution FNV IRC 100% 14% 18% 18% 21% 26% 30% 90% 80% Contribution (%)) 70% 60% 50% Revenue C 40% 86% 82% 82% 79% 74% 70% 30% 20% 10% -- 2009E 2010E 2011E 2012E 2013E 2014E Adding long-term growth Source: Broker Research at analyst consensus prices. Note: Assumes 2014

  11. Slide 11: Contribution Analysis

    Contribution Analysis 100% 90% 19% 18% 23% IRC 30% 80% Contribution (%) 70% 60% IRC 50% FNV Relative C 40% 81% 82% 77% FNV 70% 30% 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 es

  12. Slide 12: Revenues Remain Dominantly Precious Metals

    Revenues Remain Dominantly Precious Metals 2010E Revenue 2014E Revenue Other Other 16% 16% Base Metals Base Metals 17% 13% Precious Metals Precious 67% Metals 71% Franco-Nevada pro-forma revenue will remain >70% precious metals assuming consensus long-term gold prices or better Source: Broker Resear

  13. Slide 13: Fully Funded from Current Capital Resources

    Fully Funded from Current Capital Resources Pre-Transaction P T ti Post-Transaction P tT ti (September 30, 2009) (January 31, 2010) Cash & Short- US$590 million US$34 million (1) Term Investments Debt None US$25 million (2) Revolver US$150 million US$175 million Available (Matures December 2010) (Ma

  14. Slide 14: Transaction Context

    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

  15. Slide 15: Franco-Nevada Performance Since IPO

    Franco-Nevada Franco Nevada Performance Since IPO 120% Franco-Nevada IRC 86% 100% 80% 60% erformance (%) 40% 20% Share Price Pe 0% (15%) -20% -40% -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 15 Note: Share price performance ba

  16. Slide 16: From a Position of Strength… Adding Long-term Growth

    Franco Nevada Franco-Nevada From a Position of Strength g 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 g Long-term g Growth Value added transaction Adds co

  17. Slide 17: Appendix - Gold Growth Assets

    Appendix - Gold Growth Assets Franco-Nevada stand-alone incremental gold growth revenues Annual Incremental Royalty Potential c Project Operator Royaltyd @ $1000 gold Palmarejo Coeur d’Alene 50% stream $15-19m eg Holloway–Hislop St Andrew Gold 4-5% NSR 3-4m e 2010 Hollister Great Basin Gold 3-5% NSR

  18. Slide 18: Appendix – IRC Cornerstone Assets

    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 m

  19. Slide 19: Appendix – IRC Key Growth Assets

    Appendix – IRC Key Growth Assets Las Cruces – Spain Operator: Inmet Mine life: 15+ years Status: Currently ramping up production Royalty: 1.5% NSR on copper Source: Inmet Mining Belahouro/Inata – Burkina Faso Operator: Avocet Mining Mi life: Mine lif 7 years Status: First gold pour expected early 20

  20. Slide 20: Franco-Nevada Corporation

    Franco-Nevada Franco Nevada Corporation Capital Structure: Common 112.0m shares outstanding (FNV-TSX) Warrants 5 75m @ C$32/sh Mar. 5.75m Mar 2012 (FNV.WT) (FNV WT) Warrants 5.75m @ C$75/sh June 2017 (FNV.WT.A) Warrants 0.32m Special Warrants Share Price Range(1) C$31.49 - C$11.62 Market a et Cap ta

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