Mr. Paul Brink reports

FRANCO-NEVADA REPORTS 2023 RESULTS

"In late 2023, we were challenged by the unprecedented production halt at Cobre Panama. We are hopeful that the issues can be resolved, although we have taken a prudent approach for the carrying value of the asset," stated Paul Brink, chief executive officer of Franco-Nevada Corp. "Despite the issue at Cobre Panama, our business remains robust and we continue to benefit from a long-duration, diversified portfolio. We finished the year with no debt and $1.4-billion in cash and cash equivalents. The balance of our business performed well in 2023 and is expected to grow in 2024 with contributions from the completion of the Tocantinzinho, Greenstone and Salares Norte gold mines. Our growth outlook through 2028 is driven by numerous new mines and mine expansions. $2.4-billion of available capital positions us well for attractive acquisitions in an environment where many project developers are capital constrained." (All amounts are in U.S. dollars unless otherwise noted.)

Strong financial position

• No debt and $2.4-billion in available capital as at Dec. 31, 2023;
• Generated close to $1-billion in operating cash flow in 2023;
• Quarterly dividend increased 5.88 per cent to 36 cents/share effective Q1 2024.

Sector-leading ESG (environmental, social and governance)

• Rated No. 1 precious metals company 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 the company's 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 Q4 2023, the company recognized $303.3-million in revenue, down 5.3 per cent from Q4 2022. The decrease in the company's revenue is primarily attributed to lower gas, oil and PGM (platinum group metals) prices, partly offset by higher gold prices. Precious metal revenue accounted for 78.7 per cent of the company's revenue (65.5 per cent gold, 10.3 per cent silver, 2.9 per cent PGM). Revenue was sourced 86.6 per cent from the Americas (31.9 per cent South America, 23.6 per cent Central America and Mexico, 16.7 per cent United States, and 14.4 per cent Canada).

Cobre Panama updates

As previously disclosed, Cobre Panama has been in preservation and safe management (P&SM) with production halted since November, 2023. On Nov. 28, 2023, following protests and President Cortizo's call for a mining moratorium, the Supreme Court of Justice of Panama released its ruling declaring Law 406 unconstitutional.

In light of these events, the company carried out an impairment assessment of its Cobre Panama streams at Dec. 31, 2023. The company took a prudent approach in its judgement of the facts and circumstances, and based on the halting of production and the political environment surrounding the ruling by the Supreme Court, the company determined the recoverable amount under applicable accounting standards to be nil as at Dec. 31, 2023. As a result, the company recognized a full impairment loss of $1,169.2-million. This impairment has been taken without prejudice to, or without at present attributing any specific value to, the legal remedies that may be obtained through any arbitration proceedings or otherwise.

Presidential and national legislative elections are scheduled to take place in May, 2024, with a new president, government of Panama cabinet and National Assembly expected to assume office in July, 2024. In the event that there is a change in the facts and circumstances surrounding the halting of production at Cobre Panama and there is a resumption of precious metal stream deliveries to Franco-Nevada, the company will assess the recoverable amount of its Cobre Panama streams at that time, which may lead to a reversal of part or all of the impairment loss the company has recognized.

The company is pursuing legal avenues to protect its investment in Cobre Panama. The company has notified the Ministry of Commerce and Industries of Panama (MICI) of its intent to initiate arbitration pursuant to the Canada-Panama Free Trade Agreement. As announced to MICI, Franco-Nevada presently and preliminarily estimates its damages to be at least $5-billion, subject to further analysis and development.

While the company continues to pursue these legal remedies, the company strongly prefers and hopes for a resolution with the State of Panama that results in the best outcome for the Panamanian people and all parties involved.

2024 guidance

For both the company's 2024 guidance and five-year outlook, when reflecting revenue from gold, silver, platinum, palladium, iron ore, oil and gas commodities to GEOs, the company assumed the following prices: $1,950/ounce Au, $22.50/oz Ag, $850/oz Pt, $900/oz Pd, $115/tonne Fe 62 per cent CFR China, $75/bbl WTI (West Texas Intermediate) oil and $2.50/mcf (thousand cubic feet) Henry Hub natural gas. In addition, the company does not assume any other acquisitions and does not reflect any incremental revenue from additional contributions the company makes to the royalty acquisition venture with Continental as part of its remaining commitment of $69.8-million. The 2024 guidance and five-year outlook are based on public forecasts and other disclosure by the third party owners and operators of the company's assets and its assessment thereof.

The company presents its guidance in reference to GEO sales. For streams, its projected GEOs reflect GEOs the company acquires from the operators of its assets and subsequently sells. The company's GEO sales may differ from operators' production based on timing of deliveries, and are presented net of recovery and payability factors.

The company assumes Cobre Panama will remain in P&SM through 2024 and have not included any contributions from the asset in our guidance. The company expects an increase in GEO sales from the balance of its precious metal assets in 2024. The net increase reflects initial contributions from new mines including Tocantinzinho, Greenstone and Salares Norte. The company is guiding toward lower GEOs from its energy assets based on lower assumed oil and gas prices.

The company estimates depletion expense to be between $230-million and $260-million. The company's remaining capital commitment to the royalty acquisition venture with Continental is $69.8-million, of which between $10.0-million and $20.0-million is expected to be deployed in 2024. In addition, the company expects to fulfill its $75.0-million term loan commitment to G Mining Ventures, of which approximately $42.0-million was advanced in January, 2024.

Five-year outlook

The company expects its portfolio to generate sales between 540,000 and 600,000 GEOs in 2028, of which 385,000 to 425,000 GEOs are expected to be generated from precious metal assets. This outlook assumes the commencement of production at Valentine Gold, Stibnite Gold, Eskay Creek, Castle Mountain phase 2 and Copper World. It includes an expected increase in attributable sales from Vale's northern and southeastern systems, higher production from Guadalupe-Palmarejo and Antamina, and continued production from Sudbury through the end of 2028. Production growth from the continued development of the company's U.S. energy assets is expected to be partly offset by lower assumed commodity prices when compared with 2023. The outlook anticipates that the company's Candelaria stream will step down in 2027 from 68 per cent to 40 per cent of gold and silver produced and that the company's deliveries from Antapaccay will be based on 30 per cent of gold and silver produced rather than indexed to copper production in 2028. At this stage, the company's outlook does not assume any deliveries from Cobre Panama. Had Cobre Panama remained in production, the company would have expected deliveries and sales of between 130,000 and 150,000 GEOs.

Environmental, social and governance (ESG) updates

During the quarter, the company partnered with G Mining Ventures at Tocantinzinho to help finance infrastructure and other community initiatives in Para, Brazil and with Endeavour Mining on their Great Green Wall reforestation initiative and Elites de Demain educational assistance initiative, both in Senegal. The company also renewed its funding support for the Ensena, Peru, education initiative in Peru. The company continues to rank highly with leading ESG rating agencies. The company was ranked by Sustainalytics as the No. 1 precious metals company and the No. 1 gold company for 2024 and the company tied for the second-ranked mining company in The Globe and Mail's 2023 Board Games.

Portfolio additions

• Financing package with Skeena Resources on the Eskay Creek gold project -- British Columbia: On Dec. 18, 2023, the company acquired an incremental 1.0-per-cent NSR (net smelter return) on Skeena Resources' Eskay Creek project for a purchase price of $41.8-million ($56.0-million (Canadian)). The company now holds a 2.5-per-cent NSR covering Skeena's Eskay Creek properties. Additionally, the company advanced $18.7-million ($25.0-million (Canadian)) to Skeena and received a convertible debenture.
• Acquisition of additional natural gas royalty in the Haynesville -- U.S.: On Nov. 21, 2023, the company agreed to acquire a royalty portfolio in the Haynesville gas play in Louisiana and Texas for $125.0-million. The royalties are complementary to the company's existing Haynesville acreage and provide additional exposure to a diverse set of operators and a basin that is expected to help supply a growing LNG export capacity from the U.S. Gulf Coast. The transaction closed subsequent to year-end, on Jan. 2, 2024.
• Acquisition of additional royalty on the Magino gold mine -- Ontario : As previously announced, the company acquired an additional 1.0-per-cent NSR on Argonaut's Magino gold mine for a purchase price of $28.0-million. The transaction closed on November 15, 2023. Inclusive of the company's initial 2.0-per-cent NSR, the company now holds an aggregate 3.0-per-cent NSR on Magino.
• Funding of G Mining Ventures term loan: Subsequent to year-end, on Jan. 29, 2024, the company financed approximately $42.0-million under its term loan commitment to G Mining Ventures. The term loan is part of a financing package the company provided to G Mining Ventures in July, 2022, in connection with the Tocantinzinho gold project, in Brazil.

Q4 2023 portfolio updates

Precious metal assets: GEOs sold from the company's precious metal assets were 119,581, compared with 129,642 GEOs in Q4 2022. Higher contributions from Antapaccay, MWS and Hemlo were more than offset by lower deliveries from Cobre Panama, Candelaria and Stillwater.

South America:

• Candelaria (gold and silver stream) -- GEOs delivered and sold in Q4 2023 were lower than in Q4 2022. For 2024, the company forecasts GEO sales of between 72,500 and 82,500 GEOs, an increase compared with 66,710 GEOs sold in 2023, based on higher expected production due to mine sequencing and the mine plan grade profile. Debottlenecking initiatives of the Candelaria plant pebble crushing circuit were also completed in 2023. Lundin Mining received an approval of its environmental impact assessment, allowing the extension of Candelaria's mine life to 2040 and include various measures that will support sustainable social, economic and environmental development in the Atacama region.
• Antapaccay (gold and silver stream) -- GEOs delivered and sold were higher in Q4 2023 compared with Q4 2022 due to higher grades. For 2024, the company anticipates GEOs sold to decrease from 61,158 GEOs in 2023 to between 50,000 and 60,000 GEOs reflecting lower expected production based on the mining sequence.
• Antamina (22.5 per cent silver stream) -- GEOs delivered and sold were lower in Q4 2023 compared with Q4 2022. For 2024, the company anticipates between 2.0 million to 2.4 million silver ounces, consistent with silver ounces sold in 2023. The company expects this to be equivalent to between 22,500 and 27,500 GEOs based on the commodity prices the company assumed for 2024. Teck Resources announced that Antamina's Modification of Environmental Impact Assessment was approved in February, 2024, allowing the extension of the Antamina mine life from 2028 to 2036.
• Tocantinzinho (gold stream) -- G Mining Ventures reported the physical construction of the Tocantinzinho project was 76 per cent complete as of the end of December, 2023, and remains on track for commercial production in H2 2024.
• Salares Norte (1- to 2-per-cent royalties) -- Gold Fields announced a delay in first gold production from December, 2023, to April, 2024, with production in 2024 now expected to be approximately 250,000 gold equivalent ounces. Once steady state production is reached, production is expected to increase to 580,000 gold equivalent ounces in 2025 and 600,000 gold equivalent ounces in 2026.
• Posse (Mara Rosa) (1-per-cent royalty) -- Hochschild Mining announced that the first gold pour took place on Feb. 20, 2024, with commercial production expected toward the end of Q2 2024. Mara Rosa is expected to produce between 83,000 to 93,000 gold ounces in 2024 and has reported average annual production of approximately 80,000 gold ounces over an initial mine life of 10 years, with approximately 100,000 gold ounces annually over the first four years.
• Cascabel (1-per-cent royalty) -- In February, 2024, SolGold announced the completion of a new prefeasibility study, which outlined reduced initial capital costs and a 28-year mine plan containing 3.2 million tonnes of copper, 9.4 million ounces of gold and 28 million ounces of silver (540 million tonnes grading 0.60 per cent copper, 0.54 gram per tonne gold and 1.62 g/t silver).
• Pascua-Lama (2.9-per-cent gold and 0.6-per-cent copper royalties) -- Barrick reported that it anticipates an updated Pascua preliminary economic assessment in 2024 to outline potential scope options. A closure environmental impact assessment for the existing site was submitted in January, 2024, specifically regarding water management.

Central America and Mexico:

• Cobre Panama (gold and silver stream) -- GEOs delivered and sold were lower in Q4 2023 than in Q4 2022. During the quarter, Cobre Panama experienced illegal blockades at the Punta Rincon port and on the roads to the site. Production was halted at the end of November, 2023, and the mine is currently on P&SM. At the request of MICI, First Quantum delivered a preliminary draft for the first phase of a formalized P&SM on Jan. 16, 2024.
• Guadalupe-Palmarejo (50-per-cent gold stream) -- GEOs sold from Guadalupe-Palmarejo decreased in Q4 2023 compared with the same quarter in 2022 due to lower production at the mine. For 2024, the company anticipates gold deliveries to remain relatively consistent with those received in 2023, ranging between 32,500 and 37,500 GEOs.

U.S.:

• Stillwater (5-per-cent royalty) -- PGM production improved over the course of 2023, as operations recovered from a shaft incident that occurred in Q1 2023. For 2024, the company expects increased PGM production at the mine, offset by the impact of PGM prices. Sibanye-Stillwater also announced a restructuring at its U.S. PGM operations in light of the lower palladium price environment.
• Marigold (0.5- to 5-per-cent royalties) -- SSR Mining forecasts lower production in 2024 when compared with the record production achieved at Marigold in 2023. Further, the company expects production to take place on ground that carries a lower royalty rate.
• Stibnite Gold (1.7-per-cent royalty) -- Perpetua Resources announced that it was conditionally awarded up to $34.6-million in additional financing under the U.S. Defense Production Act. Perpetua anticipates that the U.S. Forest Service will publish a final environmental impact statement and draft record of decision in Q2 2024 and a final record of decision in Q4 2024.
• Copper World project (2.085-per-cent royalty) -- Hudbay provided an updated prefeasibility study for the Copper World project in September, 2023. 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 it now expects the mill to reach a throughput of 28.0 million tonnes per annum in Q2 2024, previously expected in 2025. Agnico Eagle also reported an initial underground inferred mineral resource totalling 1.56 million ounces of gold (21.8 million tonnes grading 2.23 g/t gold) and continues to evaluate the potential for underground mining, with continued exploration success outside of the mineral resources open pit. Mill optimization to reach 29.0 million tonnes per annum is expected in 2026, with an internal analysis for expansion expected in H1 2024 including potential underground mining scenarios.
• Hemlo (3-per-cent royalty and 50-per-cent NPI) -- Barrick anticipates production at Hemlo to improve relative to 2023, where production was impacted by interruptions to the underground operations.
• Brucejack (1.2-per-cent royalty) -- Newmont, which acquired Brucejack through its acquisition of Newcrest Mining in November, 2023, anticipates an increase in production in 2024 compared with 2023, where operations were impacted by a fatality in December, 2023.
• Macassa (Kirkland Lake) (1.5- to 5.5-per-cent royalty and 20-per-cent NPI) -- Agnico Eagle reported that the Macassa mill is expected to reach full capacity of 1,650 tonnes per day by mid-2024. The AK deposit contributed approximately 160,000 ounces of gold in mineral reserves (0.74 million tonnes grading 6.69 g/t gold) to the Macassa complex, and was incorporated in Agnico Eagle's production guidance for 2024 to 2026 with production expected in H2 2024.
• Canadian Malartic (1.5-per-cent royalty) -- Agnico Eagle reported that the planned mining rate of 3,500 tonnes per day at Odyssey South was reached earlier than anticipated and that ramp development also exceeded target. Agnico Eagle also declared an initial mineral reserve in the central portion of the East Gouldie deposit of 5.17 million ounces of gold (47.0 million tonnes grading 3.42 g/t gold).
• Greenstone (3-per-cent royalty) -- Equinox Gold reported that construction at Greenstone was on schedule with installation activities effectively completed at Dec. 31, 2023, and commissioning under way to pour first gold in H1 2024. On a 100-per-cent basis, Greenstone is expected to produce between approximately 175,000 and 208,000 gold ounces in 2024 and average annual production of approximately 400,000 gold ounces over an initial mine life of 14 years.
• Magino (3-per-cent royalty) -- Argonaut anticipates 2024 production guidance at Magino to be between 120,000 and 130,000 gold equivalent ounces, reflecting a full first year of production since achieving commercial production in November, 2023. An updated National Instrument 43-101 technical report is expected in H2 2024.
• Valentine Gold (3-per-cent royalty) -- Production at Valentine Gold continues to be anticipated in H1 2025. The project is now owned by Calibre Mining, which acquired Marathon Gold in January, 2024. Average annual production of approximately 195,000 gold ounces is expected, over an initial mine life of 12 years.
• Eskay Creek (2.5-per-cent royalty) -- Skeena Resources filed an updated feasibility study outlining proven and probable mineral reserves for open-pit mining of 3.3 million ounces of gold and 88.0 million ounces of silver (39.8 million tonnes grading 2.6 g/t gold and 68.7 g/t silver).

Rest of world:

• MWS (25-per-cent stream) -- The company forecasts MWS to deliver slightly fewer GEOs compared with 2023 as it anticipates that the stream will have reached its cap toward the end of 2024.
• Tasiast (2-per-cent royalty) -- Kinross reported record annual production at Tasiast as a result of strong grades, higher recoveries and record throughput following the completion of the Tasiast 24k project. For 2024, Tasiast is expected to deliver another strong year of production.
• Subika (2-per-cent royalty) -- Newmont reported that production at Subika is expected to increase relative to 2023 due to higher open pit grade, strong underground mining rate, and reaching full processing rates in Q2 2024 after the planned delivery of a replacement girth gear.
• Seguela (1.2 per cent royalty) -- Fortuna Silver Mines reported that Seguela contributed over 78,600 gold ounces in 2023, exceeding the upper range of its 2023 production guidance. Fortuna Silver Mines also indicated that it had reclassified 206,000 ounces of gold related to the Sunbird deposit from indicated mineral resources to probable reserves.

Diversified assets: The company's diversified assets, primarily comprising its Iron Ore and Energy interests, generated $64.6-million in revenue, down from $94.0-million in Q4 2022, largely as a result of lower gas and oil prices compared with the relative highs of the prior year.

Iron ore:

• Vale Royalty (iron ore royalty) -- Revenue from the Vale royalty increased compared with Q4 2022 as a result of higher estimated iron ore prices.
• LIORC -- LIORC declared a cash dividend of 45 Canadian cents per common share in Q4 2023 compared with 75 Canadian cents per common share in Q4 2022.
• Caserones (0.57-per-cent effective NSR) -- Lundin Mining reported it had launched one of the largest exploration programs at the mine since it began operation in 2013 and announced an increase in copper proven and probable mineral reserves. At Dec. 31, 2023, Franco-Nevada owned a 0.57-per-cent effective NSR interest on Caserones. Subsequent to quarter-end, on Jan. 19, 2024, EMX Corp. exercised an option to acquire a portion of its interest for a sale price of $4.7-million, such that the company's effective NSR on Caserones is now 0.517 per cent.

Energy:

• U.S. (various royalty rates) -- Revenue from the company's U.S. energy interests decreased compared with Q4 2022, largely due to lower realized oil and gas prices. Production was lower in a number of basins, with the Permian basin assets being the exception due to the completion of new wells.
• Canada (various royalty rates) -- Revenue from the company's Canadian energy interests was relatively consistent with Q4 2022. For its Weyburn NRI, the impact of lower prices was partly offset by lower operating and capital expenditures. Production at the company's Orion asset improved relative to the prior-year quarter, more than offsetting the decrease in realized prices.

Shareholder information

The complete audited consolidated financial statements and management's discussion and analysis can be found on the company's website, on SEDAR+ and on EDGAR.

The company will host a conference call to review the company's 2023 results. Interested investors are invited to participate as shown in the attached table.

About Franco-Nevada Corp.

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 and New York stock exchanges.

We seek Safe Harbor.