Mr. David Harquail reports

FRANCO-NEVADA REPORTS 2011 FINANCIAL RESULTS AND PROVIDES 2012 UPDATE

Franco-Nevada Corp. has released its financial results for the three and 12 months ended Dec. 31, 2011. Financial results are prepared in accordance with international financial reporting standards and are expressed in millions of U.S. dollars, unless otherwise noted. The company's consolidated annual financial statements and management's discussion and analysis can be found on the company's website.

                        FINANCIAL HIGHLIGHTS
         (in millions of U.S. dollars, except per share amounts)

                               Q4 2011     Q4 2010        2011       2010

Revenue                         $118.5       $74.9      $411.2     $227.2
Operating income (loss)         (107.7)       28.8        28.0       85.8
Net income (loss)               (105.4)       17.2        (6.8)      62.7
Basic earnings (loss) per share  (0.80)       0.15       (0.05)      0.55
Dividends paid per share                                  0.32       0.29
Adjusted EBITDA                   94.2        61.1       327.3      180.0
Adjusted EBITDA per share         0.72        0.53        2.61       1.58
Adjusted net income               40.8        23.4       136.0       52.1
Adjusted net income per share     0.31        0.20        1.08       0.46

David Harquail, president and chief executive officer, made the following comments:

"Franco-Nevada maintains its strong momentum. In 2011, revenue grew by 81 per cent over 2010 levels which in turn was 46 per cent above 2009 revenue. Our fourth quarter 2011 revenue was another record. The revenue growth in the last two years has been driven by acquisitions, organic growth at our existing assets and higher gold prices. Our revenue mix in 2011 was 91 per cent from precious metals and 79 per cent from North American assets. We recorded impairments on two stream assets in the fourth quarter based on recent developments at those operations. Despite that, our guidance for 2012 is for higher revenue of $430-million to $460-million (before payments under stream agreements), assuming $1,700 gold, $1,700 platinum, $750 palladium and $95 oil, and continued steady state of operations. We are looking forward to revenue contributions from several additional royalties in early 2013.

"Two thousand eleven was a very active year for Franco-Nevada. In addition to listing on the NYSE, we added 12 new royalties and streams investing over $1.2-billion. Two thousand twelve is starting strong and we have already completed three acquisitions totalling approximately $110-million. We continue to see good opportunities and with the recent exercise of our 2012 warrants, we have over $960-million in capital available for further investments."

Portfolio highlights

Details of the individual revenue contributions by asset and commodity can be found in the company's management's discussion and analysis available on its website or in its annual information form and Form 40-F.

New acquisitions in 2012

Timmins West

Franco-Nevada acquired a 2.25-per-cent net smelter return royalty on the Timmins West complex in Ontario for $35-million. Lake Shore Gold Corp. has announced that this gold operation is being expanded and has promising resource growth potential. In addition to the royalty, Franco-Nevada made a $15-million equity investment in Lake Shore Gold Corp.

Weyburn unit

Franco-Nevada has doubled its working interest in the Weyburn unit in southeast Saskatchewan with a $55-million (Canadian) investment. This is a conventional unitized oil operation operated by Cenovus Energy Inc.

Bronzewing

Franco-Nevada has increased its royalty on Navigator's Bronzewing mine in Western Australia from 1 per cent to 2 per cent for $4.5-million (Australian).

Asset highlights

Gold -- United States

The company's core U.S. gold assets including Goldstrike, Gold Quarry and Marigold, continued to generate steady revenues compared with 2010. Goldstrike was in a waste stripping phase in 2011 and is expected to generate higher revenue in 2012.

Gold -- Canada

The company's Canadian assets generated higher gold revenues in 2011 with the addition of three precious metals streams from Sudbury and increased production from three mines along the Golden Highway near Timmins. Also, its net profit royalties became more significant in 2011 with the start of royalty payments from Musselwhite and Macassa. In 2012, it is expecting contributions from its new Timmins West royalty and net profit royalties from Hemlo. Detour Gold announced increases in reserves and resources in January, 2012, and completed a $277-million (Canadian) financing. Detour Gold's construction is progressing well with processing of ore expected by fourth quarter 2012.

Gold -- Australia

The company's Australian gold assets are relatively small but are showing solid growth. The Duketon tenements, operated by Regis Resources, generated royalties from the new Moolart well mine. In the second half of 2012, Regis expects production to begin at the larger Garden well project and there appears to be several additional development opportunities beyond that all on the same Duketon royalty tenements.

Gold -- international

Palmarejo was the largest revenue generator in 2011 before the deduction for the cost of stream ounces. It is expected to be a significant component of revenue for the company in 2012. Tasiast royalty payments began in mid-2011 and are expected to benefit from a full year of production in 2012. Its new gold streams at MWS and Ezulwini were important contributors in 2011. MWS successfully added a third module and operated well in 2011 despite several permitting challenges. Ezulwini's operations continued to be challenged with Franco-Nevada's 2011 revenues supported by a minimum production guarantee. This guarantee expired at the end of 2011 and lower revenue is expected from Ezulwini in 2012.

PGM (patlinum group metals) assets

Stillwater revenue was stronger in 2011 as a result of higher production and PGM prices. The major addition to PGM revenue in 2011 was the addition of PGM streams from Quadra FNX's three mines in Sudbury. The operator has altered its mine plans such that in 2012 it will see the focus of precious metals production move toward the Levack (Morrison) mine while deferring precious metals production at McCreedy West and suspending operations at the end of 2012 at Podolsky. KGHM International acquired Quadra FNX in March, 2012.

Oil and gas assets

Oil and gas revenue in 2011 was comparable with 2010 revenue. Two thousand eleven oil and gas revenue was generated 83 per cent from oil and 17 per cent from gas. Two thousand twelve oil and gas revenues are expected to be higher than 2011 with the acquisition of an additional working interest in the Weyburn unit.

Other asset developments

MWS is owned by First Uranium which in March, 2012, agreed to sell the operation to AngloGold Ashanti subject to various approvals which First Uranium announced that it expects to receive in second quarter 2012. Franco-Nevada will be entitled to receive 25 per cent of all the gold produced through the MWS plant including treatment of AngloGold tailings until Franco-Nevada has received 312,500 ounces of gold starting Jan. 1, 2012. Franco-Nevada would benefit from a stronger operator with production sourced from a larger reserve.

Ezulwini is also owned by First Uranium -- which in March, 2012, agreed to sell the operation to Gold One subject to various approvals which First Uranium announced that it expects to receive in second quarter 2012. Franco-Nevada will continue to receive its 7-per-cent gold stream interest on Ezulwini's gold production following Gold One's acquisition. Gold One has neighbouring operations which may provide operating synergies.

Edikan reached commercial production effective Dec. 31, 2011. Franco-Nevada acquired an effective 1.5-per-cent NSR royalty in 2011. Perseus Mining is the operator and has announced that it expects production of 220,000 to 240,000 ounces from Edikan in 2012.

Phoenixis being developed by Rubicon Minerals which recently announced that it is now fully permitted to develop, construct and operate a potential mining and milling facility. Franco-Nevada has an effective 1.5-per-cent NSR royalty on the part of the property lying primarily beneath the waters of Red Lake.

Rosemont is at its final permitting stages. Franco-Nevada has a 1.5-per-cent royalty on all minerals for this large copper/molybdenum project in Arizona.

Relincho is a copper project in Chile being advanced by Teck Resources which has announced that a full feasibility study is now expected by first quarter 2013. Franco-Nevada has a 1.5-per-cent NSR royalty.

Taca Taca is a promising copper project in Argentina with a resource base now exceeding 1.5 billion tonnes. Lumina Copper has been reporting significant new intercepts. Franco-Nevada has a 1.08-per-cent NSR royalty.

South Kalgoorlie is operated by Alacer Gold which is considering the HBJ Superpit development and mill expansion. Franco-Nevada has a 1.75-per-cent royalty on the majority of the gold resource at HBJ.

Perama Hill received an approval in February, 2012, and Eldorado Gold has reported the project will now proceed to a full EIA review and possible construction decision later in 2012. Franco-Nevada has a 2-per-cent royalty.

Agi Dagi's prefeasibility study is expected to be released by Alamos Gold in second quarter 2012. Franco-Nevada has a 2-per-cent royalty which includes the majority of the developing Camyurt discovery.

Courageous Lake is operated by Seabridge Gold which in January, 2012, announced increased measured and indicated gold resources. Franco-Nevada has a 1.02-per-cent royalty.

Calcatreu is owned by Pan American Silver which, in January, 2012, announced that positive local legislation has encouraged it to accelerate development activities in 2012 toward a preliminary assessment and an EIA. Franco-Nevada has a 2.5-per-cent royalty.

Taylor is being developed by St. Andrew Goldfields and results of a project prefeasibility study were announced in February, 2012. Franco-Nevada holds a 1-per-cent royalty.

Financial results

Revenue

Revenue was $118.5-million for the fourth quarter of 2011 compared with $74.9-million for the fourth quarter of 2010. The increase in revenue for the quarter was mostly attributable to assets acquired in the Gold Wheaton transaction which contributed $32.7-million to the company's fourth quarter revenue. In addition, revenue from Palmarejo was higher due to increases in the average gold price and production levels. Revenue also grew due to contributions from Musselwhite, the Golden Highway assets (Holt, Holloway and Hislop) and the 2011 acquisition of the Edikan royalty. Revenue for 2011 was $411.2-million compared with $227.2-million for 2010, an increase of 81 per cent. Growth in revenue for the year was driven by the acquisition of the Gold Wheaton streams, higher average commodity prices, higher production levels at Palmarejo, Stillwater and the Golden Highway assets, and the commencement of payments on the company's Musselwhite royalty.

Revenue for the fourth quarter was earned 92 per cent from precious metal assets (80 per cent gold; 12 per cent PGM), 7 per cent from oil and gas (5 per cent oil; 2 per cent gas) and 1 per cent from other minerals. For 2011, precious metals revenue represented 91 per cent (75 per cent gold; 16 per cent PGM), oil and gas 8 per cent (6 per cent oil; 2 per cent gas) and 1 per cent for other minerals. For 2011, geographically, 79 per cent of revenue came from North America (27 per cent United States, 26 per cent Canada and 26 per cent Mexico), Africa (16 per cent), Australia (4 per cent) and other (1 per cent). The components of revenue were earned as follows: 37-per-cent revenue-based, 53-per-cent streams, 7-per-cent profit-based, 3-per-cent working interests and 1-per-cent other.

Costs and expenses

Costs of sales include the costs of gold equivalent ounces purchased under stream agreements, oil and gas production taxes, operating costs on oil and gas working interests, and net proceeds taxes on mineral interests. Costs of sales for the fourth quarter of 2011 were $17.4-million which included $14.9-million for the cost of stream ounces. Depletion and depreciation were $33.2-million, an increase of 24 per cent, over $26.8-million recorded in the fourth quarter of 2010. Depletion was higher due to the addition of the Gold Wheaton assets and higher production at Palmarejo, partially offset by lower depletion on Gold Quarry and Goldstrike.

For the year ended Dec. 31, 2011, costs of sales were $63.3-million compared with $29.5-million for the year ended Dec. 31, 2010. The increase was attributable in part to the fixed cost per ounce payable under the stream agreements acquired in the Gold Wheaton acquisition and Palmarejo and Stillwater, due to higher production levels. The increase was partially offset by lower depletion on Goldstrike, and oil and gas assets due to lower production.

During the fourth quarter, the company recorded impairment charges of $152.4-million on its Ezulwini and Podolsky streams. The operators have publicly announced changes to mine plans for Ezulwini and the cessation of mining activities at the end of 2012 at Podolsky. As such, management determined that indications of impairment were evident and completed an impairment analysis. In addition, the company recorded $17.5-million in impairment charges related to certain long-term investments held which experienced a significant or prolonged decline in their value. Please refer to the company's annual consolidated financial statements and management's discussion and analysis for a more detailed analysis.

As part of the Gold Wheaton acquisition, the company recorded a $13.5-million mark-to-market gain offset by $7.8-million in transaction costs in the year ended Dec. 31, 2011. Under IFRS, transaction costs associated with business combinations are expensed rather than capitalized as was done under Canadian GAAP (generally accepted accounting principles). In addition, the company recorded $8.2-million in gains on the sale of certain investments during the year ended Dec. 31, 2011.

Income tax expense was $4.5-million and $45.9-million for the three and 12 months ended Dec. 31, 2011, respectively.

Net income

Net loss for the fourth quarter of 2011 was $105.4-million, or 80 cents per share, and adjusted net income for the fourth quarter was $40.8-million, or 31 cents per share. For the year ended Dec. 31, 2011, the net loss was $6.8-million, or five cents per share, compared with net income of $62.7-million, or 55 cents per share, for 2010. Adjusted net income for the year ended Dec. 31, 2011, was $136.0-million, or $1.08 per share, compared with $52.1-million, or 46 cents per share, for the year ended Dec. 31, 2010.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $94.2-million, or 72 cents per share, and $327.3-million, or $2.61 per share, respectively, for the three and 12 months ended Dec. 31, 2011. The company's definitions of these non-IFRS financial measures and the reconciliations to IFRS measures can be found in the company's annual management's discussion and analysis.

Balance sheet and capital structure

As at Dec. 31, 2011, Franco-Nevada had a strong financial position with no debt or hedges, cash and cash equivalents of $794.1-million, working capital of $851.1-million, and investments valued at $74.4-million, of which $44.1-million are held in publicly traded equity investments. The company has an undrawn $175.0-million unsecured revolving term credit facility available.

A total of 5,563,223 warrants were exercised after year-end which contributed $179.6-million to cash.

As at March 21, 2012, the company had outstanding 143.9 million shares, 12.6 million warrants (including 6.1 million assumed from the acquisition of Gold Wheaton), 2.4 million stock options, 400,000 Gold Wheaton stock options, 100,000 restricted share units and a special warrant exercisable into two million warrants.

Dividend declaration

Today, the board of directors of Franco-Nevada declared the monthly dividend of four cents per share for each of April, May and June, 2012. The April dividend will be paid on April 26, 2012, to shareholders of record on April 12, 2012, the May dividend will be paid on May 31, 2012, to shareholders of record on May 17, 2012, and the June dividend will be paid on June 29, 2012, to shareholders of record on June 15, 2012.

The Canadian dollar equivalent is determined based on the noon rate posted by Bank of Canada on March 20, 2012. Under Canadian tax legislation, Canadian resident individuals who receive eligible dividends are entitled to an enhanced gross-up and dividend tax credit on such dividends.

The complete financial statements and management's discussion and analysis can be found today on Franco-Nevada's website and by tomorrow on SEDAR. Management will host a conference call on March 22, 2012, at 10 a.m. ET to review the results. Interested investors are invited to participate as follows:

• Conference call: Local: 647-427-7450; toll-free: 1-888-231-8191; title: Franco-Nevada Corp. Fiscal 2011 Financial Results.

Conference call replay

A recording will be available until March 29, 2012, at the following numbers:

• Local: 416-849-0833; toll-free: 1-855-859-2056; pass code 51746868.

Webcast

A live audio webcast will be accessible at the company's website.

Slides

A presentation to accompany the conference call will be available on the company's website prior to the call.

Franco-Nevada management is scheduled to host an Analyst & Investor Day on May 8, 2012, at 2 p.m. EST. This session will provide further background and details on the company's asset portfolio. The event will be held at the TSX Broadcast Centre in the Exchange Tower, 130 King St. W, Toronto, Ont., and will also be broadcast via teleconference.

We seek Safe Harbor.