“Innovate or Die – An Investor’s Perspective”

Presentation to:CMIL Signature Event

February 12, 2013

2FNV

Franco-Nevada (FNV on TSX & NYSE)

A gold focused royalty & stream company

Low risk growing portfolio

Participation in world class discoveries

Profitable with increasing dividends

Strong cash position

Outperforming other gold investments

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Diversified Portfolio of Over 340 Assets*

210 mineral assets136 producing Oil & Gas assets346 total assets

Mineral Assets Oil & Gas Assets

Producing Advanced Exploration

45 28 137 136Gold -US

-Canada

-Australia

-InternationalPGMsOther Minerals

● Both organic and

acquisition near- term

growth

●Exploration

optionality at no cost to

FNV

● Does not include 158 undeveloped oil & gas interests

* As at December 31, 2012

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Key Producing Assets*

GOLD ASSETS PGMs

U.S. Australia Stillwater

Goldstrike Duketon Sudbury (3 mines)

Gold Quarry Henty Pandora

Marigold South Kalgoorlie

Mesquite Bronzewing Other

Hollister International Weyburn – oil

Canada Tasiast Midale – oil

Sudbury (3 mines) Palmarejo Edson – gas / ngl’s

Golden Highway (3 mines)

Subika Mt. Keith - nickel

Musselwhite Cerro San Pedro

Timmins West Edikan Available Capital

Hemlo MWS ~$1 Billion

A diversified global gold portfolio

* See 2012 Annual Information Form and 2012 Asset Handbook for further detail

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Business Model Benefits

Gold ETF FNV Operators

Dividend Yield -0.4% >1% 0-2%

Leverage to Gold Price 1 >1 >1

Exploration & Expansion 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

*Revenue royalties & streams

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0%

40%

80%

120%

160%

200%

240%

280%

320%

360%

400%

2007 2008 2009 2010 2011 2012

FNV

GOLD

FNV IPO: Dec 2007

S&P/TSX Global Gold Index

Outperforming Other Gold Investments

~30% compounded annual growth rate

~$8 billion market cap

FNV and S&P/TSX Global Gold Index converted to USD. Chart to Feb 4, 2013

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Gold Equities vs. Gold

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8TSX Gold Index / Gold ($USD)

TSX GOLD/GOLD(US$)

13 week moving avg

52 week moving avg

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New Finds are Proving Increasingly Elusive...

Represents 189 gold deposits discovered since 1990, each with at least 2m oz of gold in total reserves, resources and past production (or at least 1m oz in reserves)

Data sources: Metals Economics Group – Strategies for Gold Reserves Replacement 2012

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4

23

43

4 45

3

1

4

12

3

1

4

6

1 1

3

1

7

2

4

7

65

1

2

3

4

1

21

0

2

4

6

8

10

12

91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11Discovery Year

Number of Gold Discoveries Per Year Over 5Moz

Operating

Not Operating

Declining Discoveries

Source: Intierra, Barrick

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18

4

1 13 3

5 6

14

11

5

0

2

4

6

8

10

12

14

16

18

20

1900s 1910s 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010sDiscovery Year

Number of Gold Discoveries Per Decade Over 20Moz (Supergiant)

Declining Supergiant Discoveries

Source: Barrick

?

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It’s All About GradeHigh

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New Finds are Taking Longer to Bring to Market..

Data sources: Metals Economics Group – Strategies for Gold Reserves Replacement 2012

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-100

0

100

200

300

400

500

2005 2006 2007 2008 2009 2010 2011

Source: Deutsche Bank, company data, datastream* The equity holder returns represent the returns for AAL, BHP, RIO, XTA

Government

“C-suite”

Employees / suppliers

Investors

Cumulative Returns of Major Stakeholders

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The New Gold Equity Space

One in three investors have chosen new gold investment options

GOLD Equities$400 Billion

Royalty & Stream Co's$30 Billion

GOLD ETF's$150 Billion

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0%

40%

80%

120%

160%

200%

240%

280%

320%

360%

400%

2007 2008 2009 2010 2011 2012

FNV

GOLD

FNV IPO: Dec 2007

S&P/TSX Global Gold Index

Franco-Nevada Provides:

Growth• Participation in world class discoveries• Strong balance sheet for future acquisitions

Yield

• Dividend increases in each of past 5 years

Low Risk• Diversified and secure portfolio• Minimized inflationary cost risks

Why Own a Gold ETF?

FNV and S&P/TSX Global Gold Index converted to USD. Chart to Feb 4, 2013

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Peak Gold or Not?

• Current production level can sustained for next 10yrs at today’s gold price

300

600

900

1,200

1,500

1,800

250

350

450

550

650

750

Gol

d Pr

ice

(US$

per

oun

ce)

Cash

Cos

ts (

US$

per

oun

ce)

Total for the period Q4 2005 - Q2 2012Cash Costs +187% Gold Price +270%

2006+26%+23%

2007+28%+30%

2008+1%+7%

2009+38%+12%

2010+24%+16%

2011+23%+12%

2012+-5%+12%

Average cash costs versus Gold price

Source: Thomson Reuters, GFMS

We are finding a lot of gold but:

• Size and quality of deposits are much lower

• Capital and Operating costs have ballooned

• Margins and free cash flow have not increased with gold price

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0

200

400

600

800

1000

1200

1400

1600

1800

US$

per

oun

ce

Replacement Cost for an Ounce of Gold

What is Needed

Cash Operating Costs

Sustaining Capital

Construction Capital

Discovery Costs ?

Overhead

Tax

Acceptable Profit

Source: CIBC

OR

A paradigm shift in:

• Exploration Technology (An equiv. to 3D Geophysics in O&G)

• Processing Technology (Heap leach 70s; Pressure Leach 80s)

• Mining Technology (In Situ leaching?)

Easier access to land

Supportive fiscal regimes

New business models

18FNV

Thank You