Mr. Paul Brink reports

FRANCO-NEVADA REPORTS Q1 2024 RESULTS

Franco-Nevada Corp. has released its first quarter 2024 results (in U.S. dollars unless otherwise noted).

"Our diversified portfolio performed well and production for the quarter met expectations. Elevated gold prices translated directly into some of our highest-ever margins," stated Paul Brink, chief executive officer. "Salares Norte commenced production during the quarter, and Greenstone and Tocantinzinho are on track for first production in the coming months. Alamos's planned acquisition of Argonaut will help realize the full potential of the Magino and Island Gold deposits. While Cobre Panama remains on preservation and safe management, we are hopeful that the issues can be resolved. Franco-Nevada has no debt, $2.3-billion in available capital and has an active deal pipeline."

Strong financial position:

• No debt and $2.3-billion in available capital as at March 31, 2024;
• Operating cash flow of $178.6-million in Q1 2024;
• Quarterly dividend increased 5.88 per cent to 36 cents per 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;
• 40-per-cent diverse representation at the board and top leadership levels as a group.

Diverse, long-life portfolio:

• Most diverse royalty and streaming portfolio by asset, operator and country;
• Attractive mix of long-life streams and high-optionality royalties;
• Long-life mineral resources and mineral reserves.

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 Q1 2024, the company recognized $256.8-million in revenue, down 7.1 per cent from Q1 2023. While the company benefited from the rally in gold prices during the quarter, it sold fewer GEOs (gold equivalent ounces) than in the prior-year period as Cobre Panama remains in preservation and safe management. GEOs sold during the quarter do not fully reflect production for the quarter as 3,036 GEOs from Condestable were held in inventory at March 31, 2024, and sold subsequent to quarter-end. Precious metal revenue accounted for 75.5 per cent of the company's revenue (62.7 per cent gold, 9.7 per cent silver and 3.1 per cent PGM (platinum group metal)). Revenue was sourced 82.8 per cent from the Americas (39.2 per cent South America, 9.7 per cent Central America and Mexico, 18.2 per cent United States, and 15.7 per cent Canada). Revenue includes interest revenue and other interest income related to loans provided as part of the company's financing packages. For the three months ended March 31, 2024, the company recognized $1.2-million in revenue related to the G Mining Ventures term loan and Skeena convertible debenture.

ESG updates

During the quarter, the company published its 2024 ESG report that, among other things, highlights its key focuses for ESG due diligence, increased community contributions, progression of diversity goals and initiatives, and the adoption of reduction targets in respect of its corporate emissions. The company also renewed its partnership with Perpetua Resources to support social capacity building at the Stibnite gold project. In furtherance of its goal to have diversity at the board level on grounds broader than gender diversity, the company made a firm commitment to appoint a racially or ethnically diverse director by no later than the annual general shareholders meeting in 2025. The company continues to rank highly with leading ESG rating agencies.

Portfolio additions:

• Financing package with Scottie Resources: Subsequent to quarter-end, on April 15, 2024, the company acquired a 2.0-per-cent gross production royalty on all minerals produced on Scottie Resources Corp.'s claims in the Stewart mining camp in the Golden Triangle in British Columbia, Canada, for a purchase price of $5.9-million (8.1-million (Canadian)). Additionally, Franco-Nevada acquired 5,422,994 common shares of Scottie for an aggregate of $700,000 ($1.0-million (Canadian)).
• Amendment of Condestable stream -- Peru: On March 27, 2024, Franco-Nevada amended its Condestable precious metal stream agreement to increase the phase 2 variable deliveries from 25 per cent of gold and silver produced to 37.5 per cent, by paying an additional $10.0-million deposit.
• Acquisition of silver royalty on the Stibnite gold project -- U.S.: On March 21, 2024, Franco-Nevada acquired an NSR (net smelter return) interest covering all of the payable silver production from the Stibnite gold project in Idaho for a purchase price of $8.5-million.
• Financing of G Mining Ventures term loan: On Jan. 29, 2024, Franco-Nevada financed $42.0-million under the company's term loan commitment to G Mining Ventures. Subsequent to the quarter-end, on April 19, 2024, the company financed the remaining $33.0-million, thereby fulfilling its term loan commitment. The term loan is part of a financing package Franco-Nevada provided to G Mining Ventures in July, 2022, in connection with the Tocantinzinho gold project in Brazil.
• Acquisition of royalties on Pascua-Lama project -- Chile: On Jan. 3, 2024, Franco-Nevada acquired an additional interest in the Chilean portion of Barrick Gold Corp.'s Pascua-Lama project for a purchase price of $6.7-million. Including the interest, Franco-Nevada acquired in August, 2023, at gold prices exceeding $800 per ounce, the company now holds a 2.941-per-cent NSR (gold) and a 0.588-per-cent NSR (copper) on the property.
• Acquisition of additional natural gas royalty in the Haynesville -- U.S.: As previously announced, on Nov. 21, 2023, Franco-Nevada agreed to acquire a royalty portfolio in the Haynesville gas play in Louisiana and Texas for $125.0-million and financed an initial deposit of $12.5-million. The transaction closed on Jan. 2, 2024, and the company financed the remainder of the purchase price of $112.5-million.

Q1 2024 portfolio updates

Precious Metal assets: GEOs sold from Franco-Nevada's precious metal assets were 93,018, compared with 111,238 GEOs in Q1 2023. Higher contributions from Antapaccay, Guadalupe-Palmarejo and Subika (Ahafo) were more than offset by lower deliveries from Cobre Panama and Antamina.

South America:

• Candelaria (gold and silver stream): GEOs delivered and sold in Q1 2024 were relatively in line with Q1 2023. In February, 2024, Lundin Mining reported an overall increase in mineral resources at Candelaria, reflecting additional drilling at La Espanola and Santos, offset by lower underground mineral resources due to changes to underground mining regulations.
• Antapaccay (gold and silver stream): GEOs delivered and sold were higher in Q1 2024 compared with Q1 2023. Operations were temporarily suspended as a result of socio-political tensions in early 2023.
• Antamina (22.5-per-cent silver stream): GEOs delivered and sold were lower in Q1 2024 compared with Q1 2023. Silver production at the mine was lower than in the prior year period due to a decrease in average silver grades as anticipated based on the life-of-mine plan.
• Condestable (gold and silver stream): Franco-Nevada received 3,036 GEOs in Q1 2024, consistent with deliveries in Q1 2023. However, ounces were sold subsequent to the quarter-end and remained in inventory as at March 31, 2024.
• Tocantinzinho (gold stream): G Mining Ventures reported the physical construction of the Tocantinzinho project was 89 per cent complete as of the end of March, 2024, and remains on track for commercial production in the second half (H2) of 2024. According to the 2022 feasibility study, the project is expected to produce an average of 196,000 ounces of gold annually for the first five years.
• Salares Norte (1-per-cent to 2-per-cent royalties): Gold Fields announced that production at the Salares Norte mine started with the pouring of its first gold-silver dore on March 28, 2024. Ramp-up of the mine to steady-state production is progressing with gold equivalent production of 250,000 ounces expected for 2024. Once steady-state production is reached, production is expected to increase to 580,000 gold equivalent ounces in 2025.
• 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 in Q2 2024. Mara Rosa is expected to produce between 83,000 and 93,000 gold ounces in 2024 and has reported expected 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 (g/t) gold and 1.62 g/t silver).

Central America and Mexico:

• Cobre Panama (gold and silver stream): Production at Cobre Panama has been halted since November, 2023, with mining activities currently on preservation and safe management.
• Guadalupe-Palmarejo (50-per-cent gold stream): GEOs sold from Guadalupe-Palmarejo increased in Q1 2024 compared with the same quarter in 2023, reflecting increased production at the mine due to better head grade and recoveries.

U.S.:

• Stillwater (5-per-cent royalty): GEOs from its Stillwater royalty decreased in Q1 2024 compared with Q1 2023 as the decline in PGM prices more than offset higher production at the mine. Sibanye-Stillwater is repositioning its U.S. PGM operations in light of the lower-palladium-price environment.
• Bald Mountain (0.875-per-cent to 5-per-cent royalties): GEOs from Franco-Nevada's Bald Mountain royalties were higher in Q1 2024 than in Q1 2023 due to mine sequencing.
• Marigold (0.5-per-cent to 5-per-cent royalties): GEOs from Franco-Nevada's Marigold royalties were lower in Q1 2024 than in Q1 2023 as production is taking place on ground that carries a lower royalty rate. Production is anticipated to progress to higher royalty rate ground in 2027 through the end of the current mine life.
• Stibnite Gold (gold and silver royalties): Perpetua Resources received a letter of interest from the Export-Import Bank of the United States for potential debt financing of up to $1.8-billion.

Canada:

• Detour Lake (2-per-cent royalty): Agnico Eagle reported it expects the mill to reach a throughput of 28.0 million tonnes per annum by the end of 2024 and continues to evaluate underground mining scenarios. Agnico Eagle expects to provide an update on the project, mill optimization efforts and continuing exploration results in Q2 2024. Exploration drilling focused on infill drilling the west pit extension, west of the west pit mineral resources and near the potential underground exploration ramp.
• Hemlo (3-per-cent royalty and 50-per-cent NPI (net profit interest)): GEOs from Franco-Nevada's Hemlo royalties were lower than in Q1 2023, reflecting higher underground mining costs. 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): GEOs from Franco-Nevada's Brucejack royalty were lower in Q1 2024 than in Q1 2023. Newmont, which acquired Brucejack through its acquisition of Newcrest Mining in November, 2023, anticipates an increase in production in 2024 compared with 2023.
• Macassa (Kirkland Lake) (1.5-per-cent to 5.5-per-cent royalty and 20-per-cent NPI): Agnico Eagle reported that commissioning of the ventilation system upgrade at Macassa was completed in Q1 2024. Production from long hole stopes in the near-surface deposit continued in Q1 2024 and development of the AK deposit progressed for initial production in Q4 2024.
• Magino (3-per-cent royalty) and Island Gold (0.62-per-cent royalty): Argonaut and Alamos announced a definitive agreement whereby Alamos will acquire all of the issued and outstanding shares of Argonaut. The combination is expected to create one of Canada's largest, lowest-cost and most profitable gold mines. The transaction is expected to result in substantial synergies through shared infrastructure between the adjacent Magino and Island Gold mines. Alamos has noted potential longer-term upside through a single optimized milling complex at Magino with an expansion of between 15,000 and 20,000 tonnes per day.
• Canadian Malartic (1.5-per-cent royalty): Agnico Eagle reported that ramp development reached the first production level of East Gouldie in February, 2024. Exploration drilling continued to return positive results to the east of the East Gouldie mineral resources, demonstrating the potential to add inferred mineral resources.
• Greenstone (3-per-cent royalty): Equinox Gold announced that ore was introduced into the grinding circuit on April 6, 2024, with first gold pour expected in May, 2024, and commercial production targeted for Q3 2024. Equinox Gold also announced that it had entered into an agreement to consolidate its ownership interest to 100 per cent of the Greenstone project. 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.
• Valentine Gold (3-per-cent royalty): Production at Valentine Gold continues to be anticipated in the first half (H1) of 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.

Rest of the world (ROW):

• MWS (25-per-cent stream): GEOs delivered and sold from Franco-Nevada's MWS stream were higher than in Q1 2023 due to higher production.
• Tasiast (2-per-cent royalty): GEOs from Franco-Nevada's Tasiast royalty were higher than in Q1 2023 as a result of strong grades, higher recoveries and record throughput following the completion of the Tasiast 24k project.
• Subika (Ahafo) (2-per-cent royalty): GEOs from Franco-Nevada's Subika (Ahafo) royalty were higher than in Q1 2023 as production at Subika increased due to higher open-pit grade and stronger underground mining rates.
• Seguela (0.6-per-cent royalty): On March 30, 2024, Fortuna Silver Mines exercised its option to buy back a 0.6-per-cent royalty of the 1.2-per-cent NSR by paying $6.5-million ($10-million (Australian)) to Franco-Nevada, such that Franco-Nevada's NSR on the Seguela mine is now 0.6 per cent.

Diversified assets: Franco-Nevada's diversified assets, primarily comprising its iron ore and energy interests, generated $61.6-million in revenue, down from $64.1-million in Q1 2023.

Iron ore:

• Vale royalty (iron ore royalty): Revenue from the Vale royalty increased compared with Q1 2023. The increase is due to a higher-than-anticipated royalty payment, reflecting higher attributable iron ore sales during the H2 2023 period. For the Q1 2024 period, production was in line compared with Q1 2023 in the northern system. Higher production from the southeastern system, where the royalty is not yet payable, was driven by increases at Itabira and Brucutu.
• Labrador Iron Ore Royalty Corp. (LIORC): LIORC declared a cash dividend of 45 Canadian cents per common share in the current period, compared with 50 Canadian cents in Q1 2023. LIORC reported production at IOC for Q1 2024 of 4.5 million tonnes, up from 4.3 million tonnes in Q1 2023, and confirmed 2024 production guidance remains unchanged at 16.7 million tonnes to 19.6 million tonnes.
• Caserones (0.517-per-cent effective NSR): GEOs from Franco-Nevada's interest in Caserones were higher than in Q1 2023. On Jan. 19, 2024, EMX Royalty Corp. exercised an option to acquire a portion of Franco-Nevada's 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 Franco-Nevada's U.S. energy interests decreased compared with Q1 2023. While revenue from the company's oil assets was consistent with the prior year, overall revenues declined due to lower revenue from Franco-Nevada's gas assets. Contribution from Franco-Nevada's new Haynesville gas acquisition was offset by lower realized gas prices and volumes at the company's existing Haynesville assets.
• Canada (various royalty rates): Revenue from Franco-Nevada's Canadian energy interests was slightly lower than in Q1 2023. Higher production and revenues from Franco-Nevada's Orion asset were offset by lower revenue from the Weyburn NRI, due to prior-period adjustments.

Dividend declaration

Franco-Nevada's board of directors has declared a quarterly dividend of 36 U.S. cents per share. The dividend will be paid on June 27, 2024, to shareholders of record on June 13, 2024. 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 (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. The company will issue additional common shares through treasury at a 1-per-cent discount to the average market price. The company may, from time to time, in its discretion, 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 enrolment. 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 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 the company's Q1 2024 results. Interested investors are invited to participate as follows.

Conference call and webcast:  May 2, 2024, at 10 a.m. ET

Dial-in numbers:  toll-free at 1-888-390-0546; international at 416-764-8688

Participants may join the conference call by phone without operator assistance. Participants will receive an automated callback after entering their name and phone number.

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

Replay (available until May 9):  toll-free at 1-888-390-0541; international at 416-764-8677

Passcode:  644762 followed by the pound key

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. The company trades under the symbol FNV on both the Toronto Stock Exchange and New York Stock Exchange.

We seek Safe Harbor.