Mr. David Harquail reports

FRANCO-NEVADA REPORTS STRONG YEAR-END 2015 RESULTS AND PROVIDES OUTLOOK

Franco-Nevada Corp. has released its results for the fourth quarter and year ended Dec. 31, 2015.

Fourth quarter 2015 highlights

• Record 106,312 gold-equivalent ounces, an increase of 14.6 per cent over the fourth quarter of 2014;
• $121.3-million in revenue (fourth quarter of 2014: $123-million);
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $95.8-million, or 61 cents per share (fourth quarter of 2014: $96.2-million, or 62 cents per share);
• Adjusted net income of $23.7-million, or 15 cents per share (fourth quarter of 2014: $31.6-million or 20 cents per share);
• Non-cash impairment charges of $62.8-million, predominantly related to oil interests;
• Net loss of $31.4-million, or 20 cents per share (fourth quarter of 2014: net income of $1.6-million, or one cent per share).

2015 highlights

• Record 360,070 gold-equivalent ounces (2014: 293,415 gold-equivalent ounces), 22.7 per cent higher than 2014;
• Record $443.6-million in revenue (2014: $442.4-million);
• Adjusted EBITDA of $339.3-million, or $2.16 per share (2014: $356.9-million, or $2.37 per share);
• Adjusted net income of $88.9-million, or 57 cents per share (2014: $137.5-million, or 91 cents per share);
• Over $1-billion invested in 2015 followed by another $500-million in early 2016;
• Declared dividends of $129-million; eighth consecutive year of increases.

"Franco-Nevada's diversified portfolio continues to perform well," stated David Harquail, chief executive officer of the company. "Over all, the underlying operations are meeting or exceeding our expectations. On top of this, we have been able to add significant new high-quality and long-duration assets that will further strengthen the portfolio and provide additional growth. In just the last 18 months, over $2-billion has been invested in these new assets, and their initial performances have been excellent. Thanks to the support of our investors in our recent equity issue, Franco-Nevada has net cash and is well positioned for further investments."

   
              REVENUES AND GOLD-EQUIVALENT OUNCES BY ASSET CATEGORIES
    
                                        For the three months                  For the year ended
                                        ended Dec. 31, 2015                        Dec. 31, 2015

                                   Revenue           GEOs (1)          Revenue           GEOs (1)
                              (in millions)                       (in millions)
Precious metals                          
Gold                            $       88            79,800        $    337.5           291,521
Silver                                18.9            17,112              34.7            30,427
PGM                                    7.9             7,523              33.3            29,335
Precious metals -- total        $    114.8           104,435        $    405.5           351,283
Other minerals                         2.1             1,877              10.1             8,787
Oil and gas                            4.4                 -                28                 -
                                $    121.3           106,312        $    443.6           360,070

For the fourth quarter of 2015, revenue was earned 95 per cent from precious metals (73 per cent gold, 16 per cent silver and 6 per cent platinum group metals) and 84 per cent from the Americas (18 per cent United States, 22 per cent Canada and 44 per cent Latin America). Costs and expenses were impacted by higher depletion expense, due to the recent Antamina acquisition, and an impairment charge on the company's Weyburn and Midale unit interests. Oil and gas production levels were stable, with the associated oil and gas revenue decreasing significantly year over year due to lower average oil and gas prices in 2015. Cash provided by operating activities before changes to working capital was $88.9-million.

2016 guidance

For 2016, Franco-Nevada expects attributable royalty and stream production to total 425,000 gold-equivalent ounces to 445,000 gold-equivalent ounces from its mineral assets and revenue of $15-million to $25-million from its oil and gas assets. Of the 425,000 gold-equivalent ounces to 445,000 gold-equivalent ounces, 295,000 gold-equivalent ounces to 305,000 gold-equivalent ounces are expected from Franco-Nevada's various stream agreements. For 2016 guidance, silver, platinum and palladium metals have been converted to gold-equivalent ounces using assumed commodity prices of $1,200 per ounce gold, $15 per ounce silver, $900 per ounce platinum and $500 per ounce palladium. The WTI (West Texas Intermediate) oil price is assumed to average $35 per barrel, with a $3.50-per-barrel price differential for Canadian oil. The company estimates depletion expense of $250-million to $275-million for 2016.

2020 outlook

The company's five-year outlook is based on the respective operators' public projections for each asset. Using the same commodity price assumptions as were used for the company's 2016 guidance (see above), other than for oil, which assumes a WTI price of $55 per barrel, and assuming no other acquisitions, Franco-Nevada expects its existing portfolio to generate between 500,000 gold-equivalent ounces to 520,000 gold-equivalent ounces by 2020, with Cobre Panama operating at First Quantum's projected capacity, and between $35-million to $45-million in revenues from the company's oil and gas assets.

Corporate updates

• Antapaccay: On Feb. 26, 2016, Franco-Nevada acquired a $500-million precious metals stream from Glencore PLC with reference to production from the Antapaccay mine located in Peru.
• Equity financing: On Feb. 19, 2016, Franco-Nevada completed a bought-deal financing with a syndicate of underwriters for 19.2 million common shares at $47.85 per common share. Net proceeds were $884.3-million.
• Antamina: On Oct. 9, 2015, Franco-Nevada acquired a $610-million precious metals stream from Teck Resources Ltd. with reference to production from the Antamina mine located in Peru.
• Cobre Panama: On Oct. 7, 2015, Franco-Nevada made its initial payment of $337.9-million under the Cobre Panama commitment and expects to contribute $130-million to $150-million in 2016.

Fourth quarter 2015 portfolio updates

• Precious metals -- United States: Gold-equivalent ounces from U.S. precious metals assets increased to 20,064 gold-equivalent ounces mainly due to higher production at Goldstrike, Marigold and Mesquite, partially offset by lower production at Stillwater and Bald Mountain, as well as fewer ounces under the Fire Creek/Midas fixed deliveries due to a reduction of the monthly ounce obligation in 2015 compared with 2014. Barrick Gold Corp. announced that its thiosulphate circuit at Goldstrike achieved commercial production and that it expects production from its South Arturo project in 2016.
• Precious metals -- Canada: Gold-equivalent ounces from Canadian assets decreased in the quarter due to lower production at Sudbury, Hemlo and East Timmins (formerly Golden Highway). On Jan. 11, 2016, Rubicon Minerals Corp. released a significantly reduced resource estimate on its Phoenix project. As a result, Franco-Nevada recorded an impairment charge of $11.4-million in the quarter. On Feb. 8, 2016, Lake Shore Gold Corp. released initial resources at its 144 Gap project, in which Franco-Nevada holds a 2.25-per-cent net-smelter-return royalty. On Feb. 8, 2016, Tahoe Resources Inc. announced its acquisition of Lake Shore Gold by way of a share purchase. On Jan. 25, 2016, Detour Gold Corp. released a new 23-year life-of-mine plan. Franco-Nevada holds a 2-per-cent net-smelter-return royalty on the Detour Lake mine. On Jan. 26, 2016, Kirkland Lake Gold Inc. announced the completion of its acquisition of St Andrew Goldfields Ltd.
• Precious metals -- Latin America: Candelaria had a strong quarter, delivering 21,846 gold-equivalent ounces to Franco-Nevada, and Antamina contributed 13,021 gold-equivalent ounces.
• Precious metals -- rest of world: Contributions from MWS, Sabodala and Duketon represented approximately 77 per cent of the total gold-equivalent ounces received from rest-of-world assets for the fourth quarter of 2015. On March 8, 2016, True Gold Mining Inc. announced that it had started irrigating ore on the heap-leach pad and is well advanced with commissioning of the plant at the Karma project and is on track for gold production in the second quarter of 2016. Franco-Nevada is financing a portion of the construction of the Karma project through a gold stream arrangement and expects to receive 12,500 ounces in 2016 under its gold stream arrangement with True Gold. On March 4, 2016, Endeavour Mining Corp. announced the acquisition of True Gold Mining.
• Oil and gas: Revenue from oil and gas assets was $4.4-million in the fourth quarter of 2015 with similar production levels as the fourth quarter of 2014. The decrease in revenue is the result of lower average oil and gas prices. On Nov. 6, 2015, Franco-Nevada acquired an additional 0.29-per-cent working interest in the Weyburn unit for $6-million. During the quarter, Franco-Nevada completed an impairment assessment on its Weyburn and Midale units, which resulted in an impairment charge of $51.4-million being recorded.

Shareholder information and 2016 asset handbook

The complete consolidated annual financial statements and management discussion and analysis can be found on Franco-Nevada's website, on SEDAR and on EDGAR.

Management will host a conference call on Friday, March 11, 2016, at 11 a.m. Eastern Time to review Franco-Nevada's 2015 results, as well as discuss the 2016 and five-year outlook. In addition, Franco-Nevada will be releasing its 2016 asset handbook with updated disclosures on the company's assets and the number of gold ounces and royalty-equivalent units associated with each asset.

Interested investors are invited to participate as follows.

Via conference call

Toll-free:  888-231-8191

International:  647-427-7450

Conference call replay

A recording will be available until March 18, 2016, at the following numbers.

Toll-free:  855-859-2056

International:  416-849-0833

Passcode:  62664636

Webcast

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

            CONSOLIDATED STATEMENTS OF INCOME
             AND COMPREHENSIVE INCOME (LOSS)
              (in millions of U.S. dollars,
                except per-share amounts)         
                                          2015          2014 
         
Revenue                                $ 443.6       $ 442.4
Costs and expenses         
Costs of sales                            93.1          72.9
Depletion and depreciation               216.3         163.1 
Impairment charges                        62.9          31.1 
Corporate administration                  15.1          16.4 
Business development                       2.7           2.2 
                                         390.1         285.7 
Operating income                          53.5         156.7 
Foreign exchange gain (loss) 
and other income (expenses)               (5.4)         (1.6) 
Impairment of investments                 (2.0)         (0.4) 
Income before finance items 
and income taxes                          46.1         154.7 
Finance items         
Finance income                             5.3           3.9 
Finance expenses                          (2.9)         (1.6) 
Net income before income taxes            48.5           157 
Income tax expense                        23.9          50.3 
Net income                              $ 24.6       $ 106.7
Other comprehensive (loss)         
Items that may be reclassified 
subsequently to profit and (loss)  
Unrealized gain (loss) in the 
market value of available-for-sale   
investments, net of an income tax 
recovery of $1.6 (2014: income       
tax expense of $0.7)                     (27.0)          2.2 
Realized change in market value 
of available-for-sale investments          1.1           0.4 
Currency translation adjustment         (163.4)        (98.9) 
Other comprehensive (loss)              (189.3)        (96.3)
Total comprehensive income (loss)      $(164.7)       $ 10.4
Basic earnings per share                $ 0.16        $ 0.71
Diluted earnings per share              $ 0.16        $ 0.70

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