Mr. Paul Brink reports

FRANCO-NEVADA REPORTS Q3 2023 RESULTS

Franco-Nevada Corp. has released its third quarter 2023 results (in U.S. dollars unless otherwise noted).

"Our core precious metal assets anchored the quarter, resulting in increased revenue and earnings over the prior-year period," stated Paul Brink, chief executive officer. We are looking forward to added precious metal contributions from a number of new mines in 2024 and, in particular, from the Tocantinzinho stream, where G Mining Ventures is progressing construction on time and budget. Franco-Nevada is debt free and is growing its cash balances."

The Panamanian National Assembly approved the revised Cobre Panama concession agreement in October, 2023. In response to protests that followed the approval, the government proposed but did not proceed with a popular consultation on the revised concession contract. The Panamanian Supreme Court is, however, considering a number of lawsuits challenging the constitutionality of the law pertaining to the contract. Production at the Cobre Panama mine has not been impacted and the company, along with the operator, First Quantum, are closely monitoring the unfolding situation.

Strong financial position:

• No debt and $2.3-billion in available capital as at Sept. 30, 2023;
• Generated $236.0-million in operating cash flow during the quarter;
• 16 consecutive annual dividend increases; quarterly dividend of 34 cents per share.

Sector-leading ESG (environmental, social and governance):

• Global 50 top-rated and No. 1 gold company by Sustainalytics, AA by MSCI and Prime by ISS ESG;
• Committed to the World Gold Council's responsible gold mining principles;
• Partnering with operators on community and ESG initiatives;
• Goal of 40-per-cent diverse representation at the board and top leadership levels as a group by 2025.

Diverse, long-life portfolio:

• Most diverse royalty and streaming portfolio by asset, operator and country;
• Core precious metal streams on world-class copper assets outperforming acquisition expectations;
• Long-life reserves and resources.

Growth and optionality:

• Mine expansions and new mines driving five-year growth profile;
• Long-term optionality in gold, copper and nickel, and exposure to some of the world's great mineral endowments;
• Strong pipeline of precious metal and diversified opportunities.

In Q3 2023, Franco-Nevada earned $309.5-million in revenue, up 1.7 per cent from Q3 2022. The company benefited from an increase in GEOs (gold equivalent ounces) from its precious metal assets as well as higher gold prices. This more than offset the decrease in revenue from its diversified assets, which reflect lower oil and gas prices when compared with the relative highs of the prior-year quarter.

Precious metal revenue accounted for 77.8 per cent of Franco-Nevada's revenue (64.5 per cent gold, 10.2 per cent silver, 3.1 per cent PGM (platinum group metal)). Revenue was sourced 88.0 per cent from the Americas (28.7 per cent South America, 28.4 per cent Central America and Mexico, 15.9 per cent United States, and 15.0 per cent Canada).

Environmental, social and governance updates

Franco-Nevada continues to rank highly with leading ESG rating agencies. During the quarter, it expanded the Franco-Nevada diversity scholarship program by awarding five new diversity scholarships to mining engineering students at Queen's, University of Toronto, University of British Columbia and Ecole Polytechnique. Franco-Nevada also supported industry initiatives with a strategic partnership level financing to the Canadian Institute of Mining, Metallurgy and Petroleum (CIM).

Revised concession contract for the Cobre Panama mine

As previously disclosed, on Oct. 29, 2023, President Laurentino Cortizo announced the Panamanian government's intention to hold a popular consultation regarding Law 406 on Dec. 17, 2023. Law 406, which approved the revised mining concession contract for the Cobre Panama mine, was enacted into law in Panama on Oct. 20, 2023.

During the week commencing Oct. 30, 2023, the National Assembly of Panama held sessions concerning two bills that included a popular consultation regarding Law 406, the repeal of Law 406 and a moratorium on the granting of new mining concession contracts in Panama. Bill 1110 provided for a moratorium on the granting of new concession contracts related to mining in Panama and was approved in the third debate on Nov. 3, 2023. The proposed popular consultation and repeal of Law 406 were not ultimately approved, and the company understands that no further debates on these issues are currently scheduled. As of the date of this release, Law 406 and the revised concession contract are still in effect. A number of lawsuits challenging the constitutionality of Law 406 have, however, been submitted to the Supreme Court of Justice, a number of which have been admitted for adjudication. Franco-Nevada continues to closely monitor the unfolding situation regarding Law 406 and the revised concession contract and is assessing its available protections.

Production at the Cobre Panama mine remains uninterrupted at this time, however, protests, including blockades of key roads, have caused disruptions on site as well as shortages in certain supplies.

Portfolio additions:

• Acquisition of additional royalty on Magino gold mine -- Ontario, Canada: Subsequent to the quarter-end, on Nov. 2, 2023, Franco-Nevada agreed to acquire an additional 1.0-per-cent NSR (net smelter return) royalty on Argonaut's Magino gold mine in Ontario and a portfolio comprising Argonaut's existing royalty holdings in Canada and Mexico, for an aggregate purchase price of approximately $29.5-million, with closing of such transactions subject to satisfaction of closing conditions. Inclusive of Franco-Nevada's initial 2.0-per-cent NSR royalty, the company will hold an aggregate 3.0-per-cent NSR royalty on Magino.
• Acquisition of royalty on Wawa gold project -- Ontario, Canada: On Aug. 29, 2023, Franco-Nevada acquired a 1.5-per-cent NSR royalty on Red Pine Exploration Inc.'s Wawa gold project, located in Ontario, Canada, for a purchase price of $5.0-million ($6.8-million (Canadian)). The agreement provides Franco-Nevada the option to acquire an additional 0.5-per-cent NSR royalty based on predetermined conditions.
• Acquisition of royalties on Pascua-Lama project -- Chile: As previously announced, on Aug. 8, 2023, Franco-Nevada agreed to acquire a sliding-scale gold royalty and fixed-rate copper royalty from private individuals pertaining to the Chilean portion of Barrick's Pascua-Lama project for a purchase price of $75.0-million. At gold prices exceeding $800 per ounce, Franco-Nevada will hold a 2.70-per-cent NSR royalty (gold) and 0.54-per-cent NSR royalty (copper) on the property.
• Acquisition of royalty on Volcan gold project -- Chile: As previously announced, on July 6, 2023, Franco-Nevada agreed to acquire a 1.5-per-cent NSR royalty on the Volcan gold project, located in Chile, for a purchase price of $15.0-million. The project is owned by Tiernan Gold Corp., a company privately held by Hochschild Mining PLC. The NSR covers the entire land package comprising the Volcan project as well as a surrounding area of interest extending 1.5 kilometres. Franco-Nevada already hold an existing 1.5-per-cent NSR on the peripheral Ojo de Agua area, which is owned by Tiernan and forms part of the Volcan project.

Q3 2023 portfolio updates

Precious metal assets: GEOs sold from Franco-Nevada's precious metal assets were 125,337, compared with 120,542 GEOs in Q3 2022, driven by strong contributions from Cobre Panama, Guadalupe-Palmarejo and MWS.

South America:

• Antapaccay (gold and silver stream) -- GEOs delivered and sold were slightly higher in Q3 2023 compared with Q3 2022. Production at Antapaccay during the period benefited from higher copper grades and recoveries based on mine sequencing.
• Candelaria (gold and silver stream) -- GEOs delivered and sold in the quarter were relatively consistent with Q3 2022. Lundin Mining announced that its environmental impact assessment for the extension of operations and mine life from 2030 to 2040 was approved by the regional Chilean authorities. This would also allow for the potential development of the Candelaria Underground Expansion Project.
• Antamina (22.5-per-cent silver stream) -- GEOs delivered and sold were lower in Q3 2023 compared with Q3 2022, reflecting an anticipated decrease in average silver grades based on the life-of-mine plan. Production at the mine was also impacted by Cyclone Yaku, which constrained logistics in March and April, 2023. This was reflected in the deliveries Franco-Nevada received in Q3 2023.
• Tocantinzinho (gold stream) -- G Mining Ventures reported the physical construction of the Tocantinzinho project was 52 per cent complete as of the end of September, 2023, and remains on track for commercial production in the second half (H2) of 2024. In Q3 2023, Franco-Nevada disbursed an additional $66.2-million under its stream agreement and has now fully financed its $250.0-million stream deposit.
• Salares Norte (1-per-cent to 2-per-cent royalty) -- Gold Fields reported that total project completion was 96 per cent as of the end of August, 2023. While first production is anticipated in December, 2023, Franco-Nevada does not expect meaningful royalty payments to Franco-Nevada until 2024.

Central America and Mexico:

• Cobre Panama (gold and silver stream) -- GEOs delivered and sold in the quarter were significantly higher than in Q3 2022, driven by higher average copper grades and the continued ramp-up of the CP100 expansion project. First Quantum reported that a new quarterly record for copper production at Cobre Panama was achieved in Q3 2023.
• Guadalupe-Palmarejo (50-per-cent gold stream) -- GEOs sold from Guadalupe-Palmarejo increased in Q3 2023 compared with the same quarter in 2022. Production at the Palmarejo mine benefited from higher average grades.

United States:

• Stillwater (5-per-cent royalty) -- Production of PGMs at the mine increased compared with Q3 2022, but continued to be impacted by a shortage of critical skills and geotechnical challenges. Sibanye-Stillwater reported that operations resumed planned mine production run rate in October, 2023, driving improved outlook for production for Q4 2023. The decrease in GEOs also reflects a lower PGM to gold GEO conversion ratio.
• Goldstrike (2-per-cent to 6-per-cent royalties) -- GEOs from Franco-Nevada's Goldstrike royalties decreased in Q3 2023 compared with Q3 2022 as a lesser proportion of the ore processed at Goldstrike was sourced from the company's royalty ground.
• Marigold (0.5-per-cent to 5-per-cent royalties) -- Production at Marigold was higher in Q3 2023 compared with Q3 2022 as a result of mine sequencing. In addition, Franco-Nevada's GEOs earned were higher than in the prior-year period primarily due to mining occurring on ground with a higher royalty rate.
• Copper World project (2.085-per-cent royalty) -- Hudbay provided an updated prefeasibility study for the Copper World project. The study outlined an extended 20-year mine life for phase I, where only state and local permits are required, lower initial capital expenditures, and a higher mill feed grade than was previously contemplated.

Canada:

• Detour Lake (2-per-cent royalty) -- Agnico Eagle reported that production during the quarter was impacted by unscheduled mill downtime in August, 2023, due to a temporary transformer issue powering the SAG mill. The mill returned to normal operating levels in September, 2023. Mill optimization initiatives continued through the quarter with the objective of continuing to increase throughput to 28.0 million tonnes per annum by 2025 and is targeting production of one million ounces per year.
• Kirkland Lake (1.5-per-cent to 5.5-per-cent royalty and 20-per-cent NPI (net profit interest)) -- Agnico Eagle reported that the Macassa mill is expected to reach full capacity of 1,650 tonnes per day by mid-2024, driven by the shaft No. 4 commissioning and increased productivity from the Macassa deep mine. Exploration drilling during the quarter targeted the Lower/West South mine complex (SMC), SMC East and Main Break. Production from the AK deposit is also expected to begin in H2 2024.
• Canadian Malartic (1.5-per-cent royalty) -- Agnico Eagle reported that production via the ramp at the Odyssey South deposit increased through the quarter, with underground development and surface activities at the Odyssey project progressing well and shaft presinking activities advancing. Drilling activities were focused on infilling the internal zones at the Odyssey South deposit and mineral resource expansion of the East Gouldie deposit to the east and west.
• Magino (2-per-cent royalty) -- Magino poured first gold in June, 2023, and achieved commercial production on Nov. 1, 2023, with the plant largely operating at nameplate capacity despite 20 days of unplanned downtime in September, 2023. Franco-Nevada earned 230 GEOs from its royalty in Q3 2023.
• Island Gold (0.62-per-cent royalty) -- Alamos Gold reported that the phase 3-plus expansion is progressing well with construction of the headframe largely complete and shaft sinking on track to begin by the end of the year. The phase 3-plus expansion is expected to more than double gold production to an average of 287,000 ounces per year starting in 2026.
• Greenstone (3-per-cent royalty) -- Equinox Gold reported that construction of the project is on schedule and budget, with construction 92 per cent complete as of the end of September, 2023, and first gold pour expected in H1 2024.
• Valentine Gold (3-per-cent royalty) -- Marathon reported that overall project completion was 50 per cent as at the end of September, 2023, and that the project remains on schedule for first gold production in Q1 2025. Marathon also reported that the Berry expansion was released from the provincial environmental assessment process and that it did not require a new federal impact assessment. Marathon now anticipates the Berry deposit being fully permitted earlier than had previously been anticipated.
• Wawa (1.5-per-cent royalty) -- Red Pine continues to report success expanding mineralization within, and in the footwall of, the Jubilee shear zone at its Wawa project. Highlights of the assay results include 8.01 g/t (grams per tonne) gold over 32.95 metres at the intersection of the Minto B/Jubilee Shears.

Rest of the world:

• Tasiast (2-per-cent royalty) -- In October, 2023, Kinross indicated that its Tasiast 24k expansion project was progressing as planned, with mill modifications complete and throughput of 24,000 tonnes per day being achieved for sustained periods of time. Kinross also indicated it was evaluating underground potential to supplement low-grade stockpile ore with high-grade underground ore once open-pit mining ceases.
• Subika (Ahafo) (2-per-cent royalty) -- Newmont reported that mill throughput at Ahafo has been reduced to approximately 80 per cent of its full capacity since October, 2023, in order to replace a mill girth gear. Processing rates are expected to return to full levels in Q2 2024 once the gear has been replaced.
• Seguela (1.2-per-cent royalty) -- Seguela poured first gold in May, 2023. Fortuna Silver Mines reported that throughput exceeded nameplate capacity in Q3 2023 and production for H2 2023 was expected to be between 60,000 and 75,000 gold ounces. Fortuna Silver Mines also indicated that the Sunbird deposit will be incorporated into an updated mineral resource and mineral reserve estimate to be released in Q4 2023. The Sunbird deposit has an indicated mineral resource of 279,000 gold ounces (3.3 million tonnes grading at 2.66 g/t) and an inferred mineral resource of 506,000 gold ounces (4.2 million tonnes grading at 3.73 g/t).
• Yandal (Bronzewing) (2-per-cent royalty) -- Northern Star Resources reported the Thunderbox mill continued to ramp up toward its six million tonnes per annum nameplate capacity, achieving 501,000 tonnes milled in August, 2023. Mining continued at the Orelia open-pit mine, where the ore will be used as feed for the expanded Thunderbox mill.

Diversified assets: Franco-Nevada's Diversified assets, primarily comprising its iron ore and energy interests, generated $68.7-million in revenue, down from $97.5-million in Q3 2022. The decrease is primarily due to lower oil and gas prices compared with the relative highs of the prior-year period.

Iron ore and other mining:

• Vale royalty (iron ore royalty) -- Revenue from the Vale royalty increased compared with Q3 2022, reflecting higher estimated iron ore prices than in the prior-year quarter.
• LIORC (Labrador Iron Ore Royalty Corp.) -- Revenue from Franco-Nevada's attributable interest in LIORC was relatively consistent with Q3 2022. Rio Tinto reported that operations at Iron Ore Company of Canada were impacted by extended plant downtime and a conveyor belt failure in Q3 2023, while also recovering from wildfires, which took place in Northern Quebec in Q2 2023.
• Caserones (0.57-per-cent effective NSR) -- Lundin Mining, which now owns a 51-per-cent majority interest in the mine, reported that it had launched one of the largest exploration programs at the mine since it began operation in 2013. The initial phase of the drilling program is expected to be over 10,000 metres and results are expected in the first half (H1) of 2024.
• Crawford Nickel (2-per-cent royalty) -- Canada Nickel Company announced a feasibility study for its Crawford nickel sulphide project. The feasibility study outlined 3.8 million tonnes of contained nickel (1.7 billion tonnes of ore grading 0.22 per cent nickel) in proven and probable mineral reserves.

Energy:

• U.S. (various royalty rates) -- Revenue from Franco-Nevada's U.S. energy interests decreased compared with Q3 2022, largely due to lower realized oil and gas prices. Partly offsetting the impact of lower prices, Franco-Nevada received approximately $1.3-million in lease bonus revenue in relation to its Haynesville interests. The company also benefited from higher production at its Permian assets due to the completion of new wells.
• Canada (various royalty rates) -- Revenue from Franco-Nevada's Canadian Energy interests was relatively consistent with Q3 2022. For its Weyburn NRI, the impact of lower prices was partly offset by lower operating and capital expenditures incurred at the Weyburn unit.

Dividend declaration

Franco-Nevada's board of directors has declared a quarterly dividend of 34 U.S. cents per share. The dividend will be paid on Dec. 21, 2023, to shareholders of record on Dec. 7, 2023. The dividend has been declared in U.S. dollars and the Canadian-dollar equivalent will be determined based on the daily average rate posted by the Bank of Canada on the record date. 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 company has a dividend reinvestment plan (the DRIP), which allows shareholders of Franco-Nevada to reinvest dividends to purchase additional common shares at the average market price, as defined in the DRIP, subject to a discount from the average market price in the case of treasury acquisitions. Pursuant to the terms of the DRIP, the company has changed the discount applicable to the average market price from 3 per cent to 1 per cent, effective from the dividend payable on March 30, 2023. The company may, from time to time, in its discretion, further change or eliminate the discount applicable to treasury acquisitions or direct that such common shares be purchased in market acquisitions at the prevailing market price, any of which would be publicly announced. Participation in the DRIP is optional. The DRIP and enrolment forms are available on the company's website. Canadian and U.S. registered shareholders may also enroll in the DRIP on-line through the plan agent's self-service web portal. Canadian and U.S. beneficial shareholders should contact their financial intermediary to arrange enrollment. Non-Canadian and non-U.S. shareholders may potentially participate in the DRIP, subject to the satisfaction of certain conditions. Non-Canadian and non-U.S. shareholders should contact the company to determine whether they satisfy the necessary conditions to participate in the DRIP.

Shareholder information

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

Franco-Nevada will host a conference call to review its Q3 2023 results. Interested investors are invited to participate as follows.

Conference call and webcast

Nov. 9, 2023, 8 a.m. ET

Dial-in numbers

Toll-free:  1-888-390-0546

International:  416-764-8688

A conference call URL allows participants to join the conference call by phone without operator assistance. Participants will receive an automated callback after entering their name and phone number on-line.

Webcast:  A webcast will be available on the company's website.

Replay (available until Nov. 16)

Toll-free:  1-888-390-0541

International:  416-764-8677

Passcode:  208501 followed by the pound key

Franco-Nevada is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow-producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Franco-Nevada is debt free and uses its free cash flow to expand its portfolio and pay dividends. It trades under the symbol FNV on both the Toronto Stock Exchange and New York Stock Exchange. Franco-Nevada is the gold investment that works.

We seek Safe Harbor.