Mr. Paul Brink reports

FRANCO-NEVADA TO ACQUIRE A PRECIOUS METALS STREAM FROM GLENCORE FOR US$500 MILLION

Franco-Nevada Corp.'s wholly owned subsidiary, Franco-Nevada (Barbados) Corp. (FNB), has agreed to acquire a precious metal stream with reference to production from the Antapaccay mine for $500-million (U.S.) (Glencore stream). The Antapaccay mine is located in southern Peru and is wholly owned and operated by Glencore PLC and its subsidiaries.

"Franco-Nevada is pleased to partner with Glencore," said David Harquail, president and chief executive officer of Franco-Nevada. "Following our recent Antamina and Candelaria investments, this is yet another step in strengthening and diversifying Franco-Nevada's portfolio with some of the best mining projects in the world. This investment is expected to be immediately accretive and provide our shareholders with gold price optionality over multiple cycles and potential further exploration and expansion upside."

Transaction highlights:

• Another cornerstone investment: The Glencore stream is referenced to production from the Antapaccay open-pit mine, which has been expanding throughput rates and production since late 2012. It is on the same property as the Tintaya mine that operated for almost 30 years. Glencore has invested in excess of $1.5-billion (U.S.) to develop Antapaccay into a low-cost operation with production that ranks amongst the top-20 copper mines globally.
• Immediately accretive: Franco-Nevada is expecting 60,000 to 70,000 gold equivalent ounces applicable to deliveries from the stream in 2016. Due to the timing of concentrate shipments, Franco-Nevada expects 11 months of deliveries to contribute to revenues in 2016.
• Near-term growth: Total throughput from the Antapaccay plant and Tintaya plant is expected to increase to 105,000 tonnes per day by mid-2016. Full-year contributions to Franco-Nevada from the Glencore stream are expected to average 70,000 to 80,000 gold equivalent ounces per year over the next five years. Glencore's current mine plan (based on mineral reserves) projects production to 2030.
• Alignment with Glencore: Under the streaming agreement, precious metal deliveries are initially referenced to copper in concentrate shipped. FNB will receive 300 ounces of gold and 4,700 ounces of silver for each 1,000 tonnes of copper in concentrate shipped, until 630,000 ounces of gold and 10 million ounces of silver have been delivered. Thereafter, FNB will receive 30 per cent of the gold and silver shipped.
• Exploration and expansion potential: The Glencore stream is referenced to the entire Antapaccay concession covering approximately 997 square kilometres. The Coroccohuayco deposit is located within 10 km of the Antapaccay plant and is not included in the current mine plan. Coroccohuayco hosts 256 million tonnes of measured and indicated resource, at approximately twice the copper grade of Antapaccay reserves, and could potentially provide supplementary high-grade ore later in the mine life. In addition, there are a number of large-scale regional targets and prospects on the Antapaccay concessions.

Transaction terms:

• FNB will make a one-time $500-million (U.S.) advance payment upon closing of the transaction, which is expected to occur in February.
• Gold and silver deliveries to FNB will initially be determined by reference to copper shipments until 630,000 ounces of refined gold and 10 million ounces of refined silver have been delivered. For each 1,000 tonnes of copper in concentrate shipped, FNB will receive 300 ounces of gold and 4,700 ounces of silver until the previously mentioned thresholds are met. Thereafter, FNB will receive 30 per cent of the gold and silver shipped.
• Deliveries to FNB will be payable monthly based on the prior-month shipments. FNB will be entitled to deliveries based on shipments on or after Jan. 1, 2016. In the first quarter of 2016, FNB expects to receive deliveries of gold and silver under the Glencore stream relating to January and February.
• FNB will initially pay a continuing price of 20 per cent of the spot price of gold and silver until 750,000 ounces of refined gold and 12.8 million ounces of refined silver have been delivered. Thereafter, the continuing price will increase to 30 per cent of the spot price of gold and silver.
• Gold and silver deliveries will be made by Narila Investments Ltd., a Bermudian incorporated wholly owned subsidiary of Glencore. Glencore will be a party to the agreement. The operating company and its immediate holding company will be subject to certain negative covenants governing indebtedness and encumbrances.

Antapaccay

Antapaccay is located within the province of Espinar in southern Peru -- a district with a long mining history. The property hosts the historical Tintaya open-pit mine and related infrastructure, which began operating in 1984 and produced over 1.6 million tonnes of copper and 500,000 ounces of gold until operations ceased in 2012.

Glencore (Xstrata) invested in excess of $1.5-billion (U.S.) of initial capital to build and commission the Antapaccay open-pit mine and plant, which commenced operations in 2012 at an initial throughput of 70,000 tonnes per day. Through debottlenecking at the Antapaccay plant and restart of the Tintaya plant in 2015 (which incorporated additional throughput of 20,000 tpd), total throughput at the mine has increased to approximately 100,000 tpd. By midyear 2016, additional flotation capacity is expected to increase Antapaccay plant throughput to 85,000 tpd, taking the total throughput capacity of the operation to approximately 105,000 tpd. The mine produced 202,000 tonnes of copper in 2015 and is expected to produce approximately 220,000 t in 2016 (at 0.70 per cent copper) ranking it as one of the top-20 largest copper producers in the world.

Based on current projections, the mine life at Antapaccay is estimated to extend until 2030 and would mine 538 million tonnes of sulphide ore at an average copper grade of 0.52 per cent. The current mine plan is solely based on Antapaccay reserves and does not incorporate additional resources from the project. Antapaccay currently contains mineral reserves of 547 million tonnes at a copper grade of 0.52 per cent, measured and indicated resources (inclusive of mineral reserves) of 686 million tonnes at a copper grade of 0.50 per cent, and inferred resources of 165 million tonnes at a copper grade of 0.40 per cent.

The Antapaccay property consists of mining concessions that cover an approximate area of 997 square kilometres. The property also contains the Coroccohuayco brownfield expansion project, a satellite skarn deposit that is located within 10 km of the Antapaccay plant and is part of the Tintaya mineralized district. At this stage, exploration and drilling at Coroccohuayco have focused on defining resources. The current measured and indicated resource includes 256 million tonnes grading 1.01 per cent copper, 0.10 gram per tonne gold and 3.1 grams per tonne silver, and an inferred resource of 80 million tonnes grading 1.20 per cent copper, 0.10 g/t gold and 4.7 g/t silver. Beyond the estimated mineral reserves and mineral resources of Antapaccay and Coroccohuayco, there are a number of regional-scale targets and prospects for exploration within the large concession.

Financing the acquisition

To provide the initial upfront cash payment of $500-million (U.S.), Franco-Nevada intends to use the net proceeds of a $550-million (U.S.) equity offering announced concurrently as of today's date. At Dec. 31, 2015, the company had approximately $290-million (U.S.) in net debt with $460-million (U.S.) outstanding under its $1.0-billion (U.S.) credit facility. On completion of the offering and after financing the acquisition of the Glencore stream, the company expects to have in excess of $800-million (U.S.) in available capital to complete further investments.

Conference call information

Management will host a conference call Feb. 10, 2016, at 4:45 p.m. Eastern Time to discuss the transaction.

Interested investors are invited to participate as follows:

By conference call:

Toll-free:  888-231-8191

International:  647-427-7450

Conference call replay

A recording will be available until Feb. 17, 2016, at the following numbers:

Toll-free:  855-859-2056

International:  416-849-0833

Passcode:  49997871

Webcast

A live audio webcast will be accessible at the Franco-Nevada website.

            ANTAPACCAY MINERAL RESOURCES AS AT DEC. 31, 2015
                   (inclusive of mineral reserves)
                              
Classi-                     Grade                   Contained metal
fication    Quantity Copper   Gold Silver   Moly Copper   Gold Silver   Moly
                 (Mt)    (%)  (g/t)  (g/t)    (%)   (kt)  (koz)  (koz)    (t)

Measured         198   0.60   0.13   1.55  0.005  1,188    828  9,867  9,900
Indicated        488   0.46   0.09   1.33  0.005  2,245  1,412 20,867 24,400
Measured and
indicated        686   0.50   0.10   1.39  0.005  3,430  2,206 30,657 34,300
Inferred         165   0.40   0.10   0.90  0.005    660    530  4,774  8,250

              ANTAPACCAY MINERAL RESERVES AS AT DEC. 31, 2015

                                    Grade              Contained metal
Classification      Quantity  Copper    Gold  Silver  Copper    Gold  Silver
                         (Mt)     (%)   (g/t)   (g/t)    (kt)   (koz)   (koz)

Proven                   194    0.60    0.13    1.56   1,164     811   9,730
Probable                 353    0.48    0.10    1.37   1,694   1,135  15,548
Total                    547    0.52    0.11    1.44   2,858   1,946  25,279

           COROCCOHUAYCO MINERAL RESOURCES AS AT DEC. 31, 2015

                                      Grade              Contained metal
Classification      Quantity  Copper    Gold  Silver  Copper    Gold  Silver
                         (Mt)     (%)   (g/t)   (g/t)    (kt)   (koz)   (koz)

Measured                   9    0.71    0.08    2.08      64      23     602
Indicated                247    1.02    0.10    3.18   2,519     794  25,253
Measured and
indicated                256    1.01    0.10    3.14   2,583     817  25,855
Inferred                  80    1.20    0.10    4.70     960     257  12,089

The technical and scientific information contained in this press release relating to the Antapaccay project is based on the information disclosed in the document entitled "Antapaccay mining and technical information" and dated effective Feb. 10, 2016, which document was prepared by Compania Minera Antapaccay S.A. (CMA), the owner and operator of the Antapaccay project and an indirect wholly owned subsidiary of Glencore, available on CMA's website.

The technical and scientific information contained in this press release relating to the Antapaccay project was reviewed and approved by Heller Bernabe, an employee of CMA and a qualified person as defined in NI 43-101.

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