Mr. Paul Brink reports

FRANCO-NEVADA REACHES SETTLEMENT ON CANADIAN TAX DISPUTES

Franco-Nevada Corp. has reached a settlement with the Canada Revenue Agency, which provides for a final resolution of Franco-Nevada's tax dispute in connection with the reassessments under transfer pricing rules of the 2013 to 2019 taxation years related to income generated by two of the company's wholly owned foreign subsidiaries, Franco-Nevada (Barbados) Corp. and Franco-Nevada Mexico Corp. SA de CV, outside of Canada. (Dollar amounts are in U.S. dollars unless otherwise noted.)

Settlement highlights:

• The settlement will not require the payment of any tax in Canada on the foreign earnings of Franco-Nevada Barbados and Franco-Nevada Mexico for the 2013 to 2019 taxation years.
• The service fee charged by Franco-Nevada for certain services provided to Franco-Nevada Barbados and Franco-Nevada Mexico will be adjusted to increase the markup applied to Franco-Nevada's cost of providing those services from the current range of 7 to 20 per cent to 30 per cent.
• This additional service fee will result in Franco-Nevada being subjected to Canadian tax on additional income of $1.4-million (Canadian) in Canada for the 2013 to 2019 taxation years. After the application of non-capital losses, Franco-Nevada does not anticipate any additional cash taxes will arise in respect of these years as a result of the settlement.
• Transfer pricing penalties reflected in the reassessments will be reversed. The interest charges reflected in the reassessments will be reduced and adjusted consequentially to the adjustments described above.
• The settlement is not legally binding on the CRA for years after 2019; however, the company believes the transfer pricing principles established by the settlement will apply to years after 2019, provided there are no material changes to the facts or law.

"We are pleased to reach this settlement with the CRA and believe it is a great outcome for Franco-Nevada and its shareholders," said Paul Brink, president and chief executive officer of Franco-Nevada. "This settlement provides greater investment certainty for our global growth ambitions and puts the tax dispute behind us. We can now continue to focus on adding high-quality, long-life assets to our diverse portfolio as we have done over the last 18 months with approximately $3-billion of transactions being completed."

Advisers and counsel

Osler, Hoskin & Harcourt LLP acted as legal counsel to Franco-Nevada.

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 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. Franco-Nevada is the gold investment that works.