Mr. Paul Brink reports

FRANCO-NEVADA REPORTS RECORD Q2 AND H1 RESULTS

"Franco-Nevada [Corp.] is on track to achieve record results in 2021, thanks to both organic growth and the acquisitions completed in the first half of the year. The diversified portfolio performed well in the second quarter and, with the first Vale royalty debenture contribution, delivered record GEOs, revenue, adjusted EBITDA and adjusted net income," stated Paul Brink, president and chief executive officer. "Franco-Nevada generated adjusted EBITDA of $290.0-million in the quarter, has no debt, and has $197.7-million in cash and cash equivalents. Our revenue-based business model is particularly attractive during periods of industry cost inflation, as reflected in earnings, adjusted EBITDA and margins that are at or close to record highs. We have raised the bottom end of our GEOs sold guidance and, with the recovery in energy prices, have materially increased our energy revenue guidance for the year." (All amounts are in United States dollars unless otherwise noted.)

• 2021 guidance increased

Strong financial position

• No debt and $1.4-billion in available capital as at June 30, 2021;
• Generated $245.2-million in operating cash flow for the quarter;
• Quarterly dividend of 30 cents per share.

Sector-leading ESG (environmental, social and governance)

• Ranked 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;
• Contributing to help communities through the COVID-19 crisis;
• Goal of 40-per-cent diverse representation at the board and top leadership levels.

Diverse, long-life portfolio

• Most diverse portfolio by asset, operator and country;
• Core assets outperforming;
• Growth in long-life reserves.

Growth and optionality

• Guiding to 25-per-cent growth in revenue over five years;
• Acquisitions, mine expansions and new mines driving growth;
• Long-term options in gold, copper and nickel;
• BHP aims to advance Ring of Fire properties.

For Q2 2021, revenue was sourced 86.4 per cent from mining assets (56.2 per cent gold, 13.0 per cent silver, 6.3 per cent PGM and 10.9 per cent other mining assets). Geographically, revenue was sourced 91.7 per cent from the Americas (33.4 per cent South America, 25.9 per cent Central America and Mexico, 19.1 per cent United States, and 13.3 per cent Canada).

Portfolio additions

Vale royalty debentures: As previously announced, on April 16, 2021, the company acquired 57 million of Vale SA's outstanding participating debentures for $538-million. Royalty payments are made on a semi-annual basis on March 31 and Sept. 30 of each year reflecting sales in the preceding half calendar year period. Franco-Nevada has estimated its attributable royalty payment for the six-month period from Jan. 1, 2021, to June 30, 2021, to be $28.0-million. This amount represents the company's accrual estimate for two quarters' worth of royalty payments. The first payment for the H1 2021 period will be payable to the company on Sept. 30, 2021.

Increased 2021 guidance

Based on the strong results year to date, Franco-Nevada now anticipates GEO sales for 2021 to be near the higher end of the previously announced guidance and has revised the GEOs sold guidance range to 590,000 to 615,000 GEOs. Franco-Nevada is also pleased to raise its energy revenue guidance to reflect higher commodity prices. Energy revenue guidance is now expected to range from $155-million to $170-million, an increase from the prior range of $115-million to $135-million. Commodity prices used in the company's revised guidance are the following: $1,800 per ounce Au (gold), $25.00 per oz Ag (silver), $1,000 per oz Pt (platinum), $2,700 per oz Pd (palladium), $150 per tonne Fe (iron) 65 per cent CFR China, $60 per barrel WTI (West Texas Intermediate) and $2.75 per mcf (thousand cubic feet) Henry Hub.

Dividend declaration

Franco-Nevada is pleased to announce that its board of directors has declared a quarterly dividend of 30 cents per share. The dividend will be paid on Sept. 30, 2021, to shareholders of record on Sept. 16, 2021. The Canadian-dollar equivalent is to 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). Participation in the DRIP is optional. The company will issue additional common shares through treasury at a 3-per-cent discount to the average market price, as defined in the DRIP. However, 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. 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 unaudited consolidated financial statements and management's discussion and analysis can be found today on Franco-Nevada's website, on SEDAR and on EDGAR.

Management will host a conference call tomorrow, Thursday, Aug. 12, 2021, at 10 a.m. ET to review Franco-Nevada's Q2 2021 results.

Interested investors are invited to participate as follows:

Via conference call:  toll-free: 888-390-0546; international: 416-764-8688

Conference call replay until Aug. 19, 2021:   toll-free: 888-390-0541; international: 416-764-8677; code 467266 followed by the pound key

Webcast:  a live audio webcast will be accessible on the Franco-Nevada website

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 Stock Exchaneg and New York Stock Exchange. Franco-Nevada is the gold investment that works.

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